Ordinance No. 58-04-29 vORDINANCE NO. 58-04-29
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
FLORIDA, AMENDING CHAPTER 2, ADMINISTRATION,
ARTICLE VI, DIVISION 3, GENERAL EMPLOYEE
RETIREMENT SYSTEM AND DIVISION 4, POLICE OFFICER
RETIREMENT SYSTEM, TO PROVIDE A DEFERRED
RETIREMENT OPTION PROGRAM FOR PARTICIPANTS;
CHANGE PAYMENT OF PENSION BOARD EXPENSES; AND
AMENDING CHAPTER 2, ADMININSTRATION, ARTICLE VI,
DIVISION 4, POLICE OFFICER RETIREMENT SYSTEM, TO
PROVIDE ADJUSTMENTS FOR NORMAL RETIREMENT
BENEFITS; PROVIDING ADJUSTMENTS TO OPTIONAL
FORMS OF PENSION PAYMENT; PROVIDING FOR EARLY
RETIREMENT BENEFITS; PROVIDING ADJUSTMENTS FOR
DEFERRED RETIREMENT BENEFITS; PROVIDING FOR
DEATH BENEFITS; PROVIDING FOR CHANGE TO PAYMENT
OF PENSION BOARD EXPENSES; PROVIDING FOR
SEVERABILITY; 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 systems whenever feasible; and
WHEREAS, the City of Atlantic Beach, Florida recognizes the advantage of implementing a
Deferred Retirement Option Program within its retirement systems, and
WHEREAS, the City of Atlantic Beach, Florida in order to attain compliance with Chapter 185
of the Florida Statutes; and
WHEREAS, the City Council has received and reviewed an actuarial impact statement related to
this change; and
WHEREAS, the City of Atlantic Beach, Florida hereby amends its retirement systems to provide
such a benefit as follows by indicated deletions, st~et~3s, and additions, underlines;
NOW THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF THE CITY
OF ATLANTIC BEACH, FLORIDA, AS FOLLOWS:
§ 2-261 ATLANTIC BEACH CODE
DIVISION 3. GENERAL EMPLOYEE RETIREMENT SYSTEM
Sec. 2-261. Created, purpose.
The city employees' retirement system is hereby created and established for the purpose of providing
pensions and death benefits for the employees of the city and their dependents. The effective date of the
retirement system is December 22, 1975.
(Ord. No. 58-75-4, § 1, 12-22-75)
Sec.2-262. 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.
Ciry 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. 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.
Credited service shall mean the service credited a member as provided in this division.
Final average compensation shall mean one/sixtieth 1/60th of the aggregate amount of compensation
paid a member during the period of sixty (60) consecutive months of the member's credited service in
which the aggregate amount of compensation paid is greatest. The sixty (60) consecutive 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) consecutive months of credited service, final average
compensation means the aggregate amount of compensation paid the member divided by the member's
months of credited service.
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.
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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.
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 an employee's separation from city employment as an employee with immediate
eligibility for receipt of benefits under the retirement system.
Retirement systems or system shall mean the city retirement system created and established by this
division.
Service shall mean personal service rendered to the city by a city employee.
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 a 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.
(Ord. No. 58-75-4, § 2, 12-22-75; Ord. No. 58-88-13, § 1, 11-28-88; Ord. No. 58-91-15, § 1, 4-22-91;
Ord. No. 58-98-25, § 1, 11-23-98; Ord. No. 58-99-27, § 1, 11-8-99; Ord. No. 58-99-26, § 1, 7-10-00)
Cross references: Definitions and rules of construction generally, § 1-2.
Sec. 2-263. Benefit groups.
(a)
' :Benefit group general is hereby
designated for the purpose of determining a retirement svstem member's applicable benefit eli~bility
conditions and benefit amount and shall include all employees not included in another Citespension plan.
(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 eael3
benefit group general.
(Ord. No. 58-75-4, § 3, 12-22-75; Ord. No. 58-99-27, § 1, 11-8-99; Ord. No. 58-99-26, § 1, 7-10-00)
Sec. 2-264. 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.
(Ord. No. 58-75-4, § 4, 12-22-75; Ord. No. 58-98-25, § 2, 11-23-98)
Cross references: Boards and commissions generally, § 2-131 et seq.
Sec. 2-265. Same--Actuarial data; report to city commission.
(a) The board shall keep or cause to be kept, in convenient form, such data as shall be recommended
by the actuary as necessary for the operation of the retirement system on an actuarial basis. The board
shall keep or cause to be kept, in convenient form, such additional data as is required to properly report
the operations of the system.
(b) The board shall render a report to the city commission on or before the first day of ~ October
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.
(Ord. No. 58-75-4, § 10, 12-22-75)
Sec.2-266. Same--Composition.
The board of trustees shall consist of five (5) trustees as follows:
(1) Two (2) residents of the city to 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) Two (2) members of ~e this retirement system who are employees of the city, Felice
to be elected by the members of the retirement system who are also similarly
situated employees of the city;
(3) 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) of this section shall be held in accordance with such rules as
the board of trustees shall from time to time adopt.
(Ord. No. 58-75-4, § 5, 12-22-75; Ord. No. 58-86-7, § 1, 1-12-87; Ord. No. 58-99-27, § 1, 11-8-99; Ord.
No. 58-99-26, § 1, 7-10-00)
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 ene{-I-j four 4 years for the trustee selected by a majority of 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. I~ev~ae~er;
v
(Ord. No. 58-75-4, § 6; 12-22-75; Ord. No. 58-86-7, § 1, 1-12-87; Ord. No. 58-98-25, § 3, 11-23-98; Ord.
No. 58-99-27, § 1, 11-8-99; Ord. No. 58-99-26, § 1, 7-10-00}
Sec. 2-268. Same--Vacancy; filling of vacancy.
(a) A vacancy shall occur on the board of trustees if any member shall resign or any employee
representative ceases to be employed by the city. A vacancy shall occur on the board if any trustee fails to
attend three (3) consecutive meetings of the board unless, in each case, excused for cause by the trustees
attending the meeting.
(b) If a vacancy occurs on the board of trustees, the vacancy shall be filled within ninety (90) days
for the unexpired term, if applicable, in the same manner as the position was previously filled.
(Ord. No. 58-75-4, § 7, 12-22-75; Ord. No. 58-86-7, § 1, 1-12-87; Ord. No. 58-98-25, § 4, 11-23-98)
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Sec. 2-269. 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 employees 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.
(Ord. No. 58-75-4, § 8, 12-22-75; Ord. No. 58-86-7, § 1, 1-12-87)
Sec. 2-270. 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 and a chairperson pro tem from its
members.
(2) Secretary: The board shall annually elect a secretary from its members who shall sign the
minutes of each meeting
(3)
(4~-Legal advisor: The board is empowered to employ independent legal counsel'-••~ =- ~••*'-~w~~a ~~
(34) Actuary: The board shall appoint 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 maybe 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.
(65) 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;
b. Coordinate and administer the accounting, bookkeeping and clerical services;
c. 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;
e. 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) 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.
(Ord. No. 58-75-4, § 9, 12-22-75; Ord. No. 58-86-7, § 1, 1-12-87; Ord. No. 58-91-15, § 1, 4-22-91; Ord.
No. 58-98-25, §§ 5--8, 11-23-98)
Sec.2-271. Membership.
(a) All persons who are city employees, and all persons who become city employees, shall be
members of the retirement system, except as provided in subsection (b) of this section.
(b) The membership of the retirement system shall not include:
(1) Any city employee who is employed in a position normally requiring less than one thousand
(1,000) hours of work per annum;
(2) Any city managerial or professional employee who is employed pursuant to an individual
contract of employment which does not provide for the employee's participation in this retirement
system;
(3) Elected officials of the city;
(4) Positions which are compensated on a basis not subject to the withholding of federal income
taxes or FICA taxes by the city;
(5) Temporary employees;
(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 retirement, entry into DROP, termination of
employment by the city, or upon ceasing to be employed in a position regularly requiring one thousand
(1,000) or more hours of work in a year, or upon becoming employed in an excluded position.
(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.
(Ord. No. 58-75-4, § 11, 12-22-75; Ord. No. 58-81-5, § 1, 9-28-81; Ord. No. 58-85-6, 1-13-86; Ord. No.
58-93-19, § 1, 9- 27-93; Ord. No. 58-98-25, § 9, 11-23-98; Ord. No. 58-99-26, § 1, 7-10-00)
6
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 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.
(Ord. No. 58-75-4, § 12, 12-22-75; Ord. No. 58-91-15, § 1, 4-22-91; Ord. No. 58-99-26, § 1, 7-10-00)
Sec. 2-273. 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.
Ord. No. 58-75-4, § 13, 12-22-75; Ord. No. 58-87-10, § 1, 11-23-87)
Sec. 2-274. 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 subsection 2-298(d) hereof plus interest
at the actuarially assumed rate in accordance with terms established by the board of trustees.
(Ord. No. 58-75-4, § 14, 12-22-75; Ord. No. 58-98-25, § 10, 11-23-98)
Sec. 2-275. 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 the years of service provided for in USERRA be credited on
account of all military service.
(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
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 under the
provisions of this section and USERRA.
"" .
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(Ord. No. 58-75-4, § 15, 12-22-75; Ord. No. 58-98-25, § 11, 11-23-98; Ord. No. 58-99-26, § 1, 7-
10-00)
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:
(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 of his/her city employment normally requiring one thousand
(1,000) hours of work or more per annum on or before the date retirement is to be effective;
(3) 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 or section 2-282.
(b) The age and service requirements for voluntary retirement are: ,
Normal retirement: the member has attained age sixty (60) years or older, and has five
(5) or more years of credited service in force.
Early retirement: the member has attained age fift -f~(55) years or older and has five
(5) or more years of credited service in force.
(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 one thousand (1,000) 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 one thousand (1,000) 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.
(Ord. No. 58-75-4, § 16, 12-22-75; Ord. No. 58-87-10, § 1, 11-23-87; Ord. No. 58-91-14, § 1, 4-8-91;
Ord. No. 58-93-19A, § 1, 10-25-93; Ord. No. 58-98-25, §§ 12, 13, 11-23-98; Ord. No. 58-99-27, § 1, 11-
8-99; Ord. No. 58-99-26, § 1, 7-10-00)
Sec. 2-277. yea= Normal retirement date and payment date.
(a) 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 ap roved
by the board of trustees.
The early 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 ap rn owed
~ by the board of trustees.
(c) The monthly retirement income payable in the event of normal or early retirement shall be
payable on the first day of each month.
(Ord. No. 58-99-26, § 2, 7-10-00)
Editor's note: Ord. No. 58-98-25, § 14, adopted Nov. 23, 1998, repealed § 2-277 which pertained to
compulsory separation from employment; extensions; retirement, and derived from Ord. No. 58-75-4, §
17, adopted Dec. 22, 1975 and Ord. No. 58-87-10, § 1, adopted Nov. 23, 1987.
Sec. 2-278. Deferred retirement upon separation from employment (vesting).
(a) A member of the retirement system who terminates city employment prior to satisfying the
requirements for voluntary retirement under section 2-276 for a reason other than retirement or death,
who has not received a refund of his or 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 2-276.
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 2-281 or section 2-282 as the
subsections were in force at the time a member left city employment.
(b) The credited service requirement for separation from city employment with entitlement to
deferred retirement is five (5) years.
(Ord. No. 58-75-4, § 18, 12-22-75; Ord. No. 58-87-10, § 1, 11-23-87; Ord. No. 58-98-25, § 15, 11-23-98;
Ord. No. 58-99-27, § 1, 11-8-99; Ord. No. 58-99-26, § 1, 7-10-00)
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/she 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."
(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 as a city employee.
(c) A member will not be entitled to receive any disability retirement income if disability is as a
result o£
(1) Excessive and habitual use by the employee of drugs, intoxicants, or narcotics;
(2) 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.
(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 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
9
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 section 2-282.
(f) The monthly retirement income as computed in section 2-281 or section 2-282 to which a
member is entitled in the event of his 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 normal retirement date while still disabled, the last payment
will be the payment due next preceding his death.
(g) If the board of trustees fords 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.
(h) If the member recovers from disability and reenters the service of the city as an employee, his
service will be deemed to have been continuous, but the period beginning with the first month for which
he received disability retirement income payment and ending with the date he reentered the city service
will not be considered as credited service for the purpose of the system.
(Ord. No. 58-75-4, § 19, 12-22-75; Ord. No. 58-87-10, § 1, 11-23-87; Ord. No. 58-88-13, § 1, 11-28-88;
Ord. No. 58-93-19A, § 1, 10-25-93; Ord. No. 58-95-20, § 1, 6-12-95; Ord. No. 58-96-21, § 1, 2-12-96;
Ord. No. 58-98-25, § 16, 11-23-98; Ord. No. 58-99-27, § 1, 11-8-99; Ord. Na 58-99-26, § 1, 7-10-00)
Sec. 2-280. Same--Continuation subject to re-examination; return to employment.
(a) The board of trustees may require a disability retirant to undergo a periodic medical examination
if the disability retirant has not attained age sixty (60) years.
(b) If a disability retirant refuses to submit to a medical or psycholo ical examination, payment of the
disability pension may be suspended by the board of trustees until the retirant
submits to the examination. '
(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.
(Ord. No. 58-75-4, § 20, 12-22-75; Ord. No. 58-98-25, § 17, 11-23-98; Ord. No. 58-99-27, § 1, 11-8-99;
Ord. No. 58-99-26, § 1, 7-10-00)
Sec. 2-281. Amount of level straight life pension.
(a) 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.
Early retirement benefit. The amount of an early retirement benefit shall be calculated as
provided in subsection 2-281.0 above 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.
10
(bc) Cost-of-living adjustment. All retirement system members and beneficiaries who retired prior to
January 1, 1997, shall receive aone-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. Effective October 2001, all retirement system members and beneficiaries who retired
prior to January 1, 2001, shall receive aone-time cost-of-living adjustment, which shall be in an amount
equal to five (5) percent of the benefits paid to such retired members and beneficiaries during the
immediately preceding month.
(Ord. No. 58-75-4, § 21, 12-22-75; Ord. No. 58-87-8, § 1, 10-26-87; Ord. No. 58-92-18, § 1, 9-28-92;
Ord. No. 58-93-19A, § 1, 10-25-93; Ord. No. 58-97-23, § 1, 7-14-97; Ord. No. 58-99-27, § 1, 11-8-99;
Ord. No. 58-99-26, § 1, 7-10-00; Ord. No. 58-01-28, § 1, 10-8-01)
Sec. 2-282. Optional forms of pension payment.
A member of the retirement system may elect to be paid under one (1) of the following optional forms of
payment in lieu of the level straight life form of payment. The election must be made in writing and filed
with the board of trustees prior to the date retirement is effective. Payment will be made under the level
straight life form of payment if a timely election of an optional form of payment is not made. The amount
of pension under Option A and Option B shall be the actuarial equivalent of the amount of pension under
the level straight life form of payment. In no event may a member's annual benefit exceed the lesser of:
(1) Option A; one hundred (100) 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 (50) 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 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.
(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.
(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.
(Ord. No. 58-75-4, § 22, 12-22-75; Ord. No. 58-98-25, § 18, 11-23-98)
(5) A Deferred Retirement Option Program (DROP), shall be established and administered by
the Board of Trustees of the City of Atlantic Beach General Employees' Retirement System. Such
DROP shall be aself-directed program. A General Emplo ey a may enter the DROP as set forth
herein.
(a) Eligibility.
A participant of the City of Atlantic Beach General Employees' Retirement System may enter into
the DROP on the first da~of the month following the attainment of age fifty-five (55) and five (5)
years of service with the City of Atlantic Beach. However. a participant entering the DROP prior
to attaining age sixty (60) shall have their benefit actuarially reduced for each year under the age of
six 60.
11
Participants who attained eligibility prior to the enactment of the DROP shall be afforded the
option of Qarticipating immediately,
Written election.
A participant electing to participate in the DROP must complete and execute the proper forms.
which shall be su lpp ied by the Board of Trustees. Election into the DROP is irrevocable once a
participant enters the DROP.
~ Limitation disqualification for other benefits.
A participant maYparticipate in the DROP only once. After commencement of participation in the
DROP the employee shall no longer earn or accrue additional vesting credits toward retirement
benefits and shall not be eligible for disabili or pre-retirement death benefits in the City of
Atlantic Beach General Employees' Retirement System.
(d) Cessation or reduction of contributions
Upon the effective date of a participant's commencement of participation in the DROP, all
contributions on behalf of the~articipant to the City of Atlantic Beach General Employees,
Retirement System shall be discontinued.
(e) Benefit calculation
For all Citv of Atlantic Beach General Employees' Retirement System purposes, the service and
vesting credits of a participant participating_ in the DROP shall remain as they existed on the
effective date of commencement of participation in the DROP. The participant shall not earn or be
credited with any additional vesting credits after beginning DROP participation. Service thereafter
shall not be recognized by the City of Atlantic Beach General Employees' Retirement System or
used for the calculation or determination of any benefits payable by such Retirement System.
The average final compensation of the participant shall remain as it existed on the effective date of
commencement of participation in the DROP. Payment for unused Compensatory Time shall be
made when the participant enters the DROP and shall be utilized in determining the final average
compensation. Payment for accrued unused leave (vacation, holiday, etc.) shall be made when the
participant actually terminates employment with the City.
Earnings thereafter shall not be recognized by the Retirement System or used for the calculation or
determination of any benefits payable by the Retirement System.
~fl Payments to DROP account.
The monthly retirement benefits, including any future cost of living increases, that would have been
payable had the participant elected to cease employment and receive a normal retirement benefit
shall be deposited into the participant's DROP account.
ig) Drop account earnings.
Earnings of each DROP account shall be in accordance with the self-directed options selected by
the participant and shall continue for up to sixty (60) months at which time all deposits into the
account shall cease. Neither the Cit_y, the Retirement System, nor the system's Board of Trustees
shall have any responsibility or liability for any of the self-directed options selected by the
participant.
~h) Maximum participation.
12
A participant may participate in the DROP for a maximum of sixty (60) months. At the conclusion
of the sixty (60) months, deposit's into the participant's DROP account shall cease. The
participant may terminate DROP participation by terminating from covered city employment on a
date prior to sixty~60) months from the date the participant entered the DROP.
A participant that elects to participate in the DROP may participate for a maximum of sixty~60)
months. At the conclusion of the maximum time period, the participant's covered city employment
must terminate pursuant to the resignation submitted bYthe participant as part of the DROP
application. The participant may terminate DROP participation by advancing their resignation
from covered ci employment to a date prior to that submitted by the participant as part of the
DROP application.
(i) Ex_penses.
All administrative fees charged for the administration and operation of the participant's DROP
account shall be in accordance with the self-directed options selected by the participant and shall be
the responsibility of the participant.
(j) Payout.
i) Unon the termination of a narticioant's covered City employment (for any reason, whether
by retirement, resonation, discharge or death), the retirement benefits payable to the
participant or to the participant's beneficiar~(if the participant selected an optional form of
retirement benefit which provides for payments to the beneficiary) shall be paid to the
participant, the participant's beneficiary or the member's estate and shall no longer be
deposited into the participant's DROP account.
(ii) Within thirty days after the end of any calendar quarter following the termination of a
participant's employment, the balance in the participant's DROP account shall be payable in
accordance with the self-directed options selected by the participant.
Regardless of the option selected by the participant, the Board of Trustees has the right to
accelerate payments in order to comply with Section 401(A)(9) of the Internal Revenue Code
and the right to defer payments to comply with Section 415 of the Internal Revenue Code.
(k) Death.
If a DROP oarticinant dies before the account balance is raid out in full, the narticinant's
designated beneficiary shall have the same rights as the participant to elect and receive the pay-out
options set forth in paragraph j above. DROP payments to a beneficiary shall be in addition to any
retirement benefits payable to the participant. Participants who are or have been DROP
participants are not eligible for pre-retirement death or disability benefits.
(1) Forms.
The forms and notices shall be annroved for use in administering the DROP by the Board of
Trustees.
(m) Amendment.
~' The City Commission ma~amend the DROP at any time. Such amendments shall be consistent
with the provisions covering deferred retirement option plans and shall be binding upon all future
DROP participants and upon all DROP participant's who have balances in their accounts. Such
13
amendments ma increase the ez ense decrease the account earnin s or limit or restrict the
payout options.
Sec. 2-283. 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 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 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, entry into DROP, resignation
or termination as a city employee, eligibility for the death benefit payable under this section will
automatically terminate.
(c) 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, may be paid in the discretion of the board of trustees either to: (i) Any one (1)
or more of the persons comprising the group consisting of the member's spouse, the member's
descendants, the member's parents, or the member's heirs at law, and the board of trustees may
pay the entire benefit to any member of such group or portion such benefit among any two (2) or
more of them in such shares as the board of trustees, in its sole discretion, shall determine; or (ii)
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 the power and discretion
conferred upon the board of trustees by the preceding sentence 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.
(Ord. No. 58-75-4, § 23, 12-22-75; Ord. No. 58-87-10, § 1, 11-23-87; Ord. No. 58-88-13, § 1, 11-28-88;
Ord. No. 58-98-25, § 19, 11-23-98)
Sec. 2-284. Alternate death while in city employment; pension to spouse and/or children.
(a) The applicable benefits provided in subsections (b) and (c) of this section 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 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) The person to whom the deceased member was married at the time of death shall be paid a
pension equal to a seventy-five (75) 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.
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
14
the deceased member's fmal average compensation and credited service. The percent shall be zero (0)
percent during periods a pension is being paid in accordance with the provisions of subsection (b}; and
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) yeazs or, if over nineteen
(19), but less than twenty-three (23), upon no longer being enrolled as a fulltime student in an educational
institution, marriage, or death, and the pension of each remaining eligible child shall be recomputed.
(Ord. No. 58-75-4, § 24, 12-22-75; Ord. No. 58-87-10, § 1, 11-23-87; Ord. No. 58-98-25, § 20, 11-23-98;
Ord. No. 58-99-27, § 1, 11-8-99; Ord. No. 58-99-26, § 1, 7-10-00)
Sec. 2-285. Maximum amount of pension.
(a) The normal retirement pension payable to a member of the retirement system and who has not
previously participated in such system, on or after January 1, 1980, shall not exceed one hundred (100)
percent of his 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.
(b) 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.
(c) In no event may a member's annual benefit exceed the lesser of:
A~'•. (1) One hundred fifty thousand dollars ($150,000.00) (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) Notwithstanding the provisions of paragraphs (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 disregazded. 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 yeaz beginning after December 31, 1995.
(4) If the member has less than ten (10) 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 denominator shall be ten (10) 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 (5) 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 sixty-two (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 (5) percent or the interest rate used in the most recent
15
annual actuarial valuation; however, retirement benefits shall not be reduced below seventy-five
thousand dollars ($75,000.00) if payment of benefits begins at or after age fifty-five (55). If
retirement benefits begin after age sixty-five (65), the dollar limitation of subsection (1) of this
subsection shall be increased actuarially using an interest assumption equal to the lesser of five
(5) 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 (3) highest paid consecutive
years means the member's greatest aggregate compensation during the period of three (3)
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.
(Ord. No. 58-75-4, § 25, 12-22-75; Ord. No. 58-88-12, § 1, 8-8-88; Ord. No. 58-88-13, § 1, 11-28-88;
Ord. No. 58-98-25, § 21, 11-23-98)
State law references: Limitation of benefits, F.S. § 112.65.
Sec. 2-286. Subrogation rights.
If a member of the retirement system, retirant 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.
(Ord. No. 58-75-4, § 26, 12-22-75; Ord. No. 58-98-25, § 22, 11-23-98)
Sec.2-287. Reserved.
Editor's note: Ord. No. 58-98-25, § 23, adopted Nov. 23, 1998, repealed § 2-287 which pertained to
reserve for retired benefit payments and derived from Ord. No. 58-75-4, § 27, adopted Dec. 22, 1975.
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) 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 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 anal-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.
(c) 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.
(Ord. No. 58-75-4, § 28, 12-22-75; Ord. No. 58-98-25, § 24, 11-23-98; Ord. No. 58-99-26, § 1, 7-10-00)
Sec.2-289. Reserved.
Editor's note: Ord. No. 58-98-25, § 25, adopted Nov. 23, 1998, repealed § 2-289 which pertained to
~+'~'` reserve for undistributed investment income and derived from Ord. No. 58-75-4, § 29, adopted Dec. 22,
1975.
16
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, bonds or other property in his own right. T'he trustees are authorized to 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 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.
(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.
(Ord. No. 58-75-4, § 30, 12-22-75; Ord. No. 58-85-5, § 1, 7-22-85; Ord. No. 58-92-17, § 1, 1-27-
92; Ord. No. 58-98-25, § 26, 11-23-98; Ord. No. 58-99-26, § 1, 7-10-00)
Sec.2-291. Reserved.
Editor's note: Ord. No. 58-99-26, § 1, adopted July 10, 2000, deleted the former § 2-291, which
pertained to divisions and derived from Ord. No. 58-75-4, § 31, adopted 12-22-75, and Ord. No. 58-99-
27, § 1, adopted 11-8-99.
Sec.2-292. Expenses.
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
Plan ei~:
(Ord. No. 58-75-4, § 32, 12-22-75; Ord. No. 58-98-25, § 27, 11-23-98)
Sec.2-293. Reserved.
Editor's note: Ord. No. 58-98-25, § 28, adopted Nov. 23, 1998, repealed § 2-293 which pertained to
insurance coverage for retirants and beneficiaries and derived from Ord. No. 58-75-4, § 33, .adopted Dec.
22, 1975.
Sec. 2-294. 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 the board of trustees.
(Ord. No. 58-75-4, § 34, 12-22--75)
Sec. 2-295. Assignments prohibited.
(a) 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
17
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.
(b) 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 (1) 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 often (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
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.
(4) "Direct rollover" means a payment by the plan to the eligible retirement plan specified by
the distributee.
(Ord. No. 58-75-4, § 35, 12-22-75; Ord. No. 58-98-25, § 29, 11-23-98)
Sec.2-296. 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.
(Ord. No. 58-75-4, § 36, 12-22-75; Ord. No. 58-98-25, § 30, 11-23-98)
Sec. 2-297. Protection against fraud.
Whoever with intent to deceive shall make any statements and/or reports required under this division
which are untrue, or shall falsify or permit to be falsified any record or records of the retirement system,
18
or who shall otherwise violate, with intent to deceive, any of the terms or provisions of this division, shall
be guilty of a city offense.
~,., Any member who is convicted as provided in F.S. § 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.
(Ord. No. 58-75-4, § 37, 12-22-75; Ord. No. 58-98-25, § 31, 11-23-98)
Sec. 2-298. Member contributions.
(a) 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.
(b) The City of Atlantic Beach shall assume and pay the member contributions set forth above in lieu
of payroll deductions from such 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 any 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
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, 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 or her 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.
(d) 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 Internal
Revenue Service;
(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.
(Ord. No. 58-87-8, § 2, 10-26-87; Ord. No. 58-88-13, § 1, 11-28-88; Ord. No. 58-93-19A, § 1, 10-25-93;
Ord. No. 58-96-21, § 1, 2-12-96; Ord. No. 58-97-22, § 1, 2-24-97; Ord. No. 58-97-23, § 2, 7-14-97; Ord.
No. 58-97-24, § 1, 9-8-97; Ord. No. 58-98-25, § 32, 11-23-98; Ord. No. 58-99-27, § 1, 11-8-99; Ord. No.
58-99-26, § 1, 7-10-00)
Sec. 2-299. Benefit limitations and required distributions.
19
(a) Benefits paid under the city employees retirement system shall not exceed the limitations of
Internal Revenue Code Section 415, the provisions of which are hereby incorporated by reference.
(b) 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.
(2) Distributions to a member and his/her beneficiary shall only be made in accordance with
the incidental death benefit requirements of [Internal Revenue] Code Section 401(a)(9)(G) and
the regulations thereunder.
{Ord. No. 58-96-21, § 1, 2-12-96)
20
DIVISION 4. POLICE OFFICERS' RETIREMENT SYSTEM*
Sec. 2-300. 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
division. 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec.2-301. Definitions.
The following words and phrases as used in this division shall have the following meanings unless a
different meaning is clearly required by the context:
Actuarial 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, longevity pay, 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 of unused 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.
Final average compensation shall mean one-sixtieth (1/60th) 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.
*Editor's note: Ord. No. 58-99-26, § 2, adopted July 10, 2000, set out provisions intended for use as
Division 4, §§ 2-261A--2-310A. For purposes of clarity and at the editor's discretion, these provisions
have been included herein as §§ 2-300--2-310.29.
21
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.
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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-302. Benefit groups.
(a)
' :Benefit r~ouppolice is
hereby designated for the purpose of determining a retirement system member's applicable benefit
eli ig bility conditions and benefit amount and
shall consist of all members who are also full time sworn police
officers.
(b) 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-303. 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
22
the requirements of Chapter 185 of the Florida .Statutes, and shall specifically include compliance with
section 185.06 therein.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-304. Same--Actuarial data; report to city commission.
(a) 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 aril October 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec.2-305. Same--Composition.
The board of trustees shall consist of five (5) trustees as follows:
(1) 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;
(3) 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-306. 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 for elected representatives, unless they terminate employment, whereupon a
new election will be held by the member of the plan to fill the unexpired term of their trustee
representatives. The term of office for the trustee selected by the other four (4) members of the board
shall be two (2) years. 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-307. 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.
(b) 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
23
Sec. 2-308. 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-309. 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 shall
perform such duties as required in Chapter 185 of the Florida Statutes.
(3) Legal advisor: The board is empowered to employ independent legal counsel.
(4) 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 maybe 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:
(a) Administer the office or offices of the retirement system and of the board;
(b) Coordinate and administer the accounting, bookkeeping, and clerical services;
(c) 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;
(e) 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.
24
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec.2-310. Membership.
°'~ (a) 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.
(b) 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;
(2) 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;
(3) Police officer positions which are compensated on a basis not subject to the withholding
of federal income taxes or FICA taxes by the city;
(4) Temporary police officers;
(5) Elected officials of the city.
(c) An individual shall cease to be a member upon retirement, entry into DROP, 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.1. Credited service.
Service rendered by a member of the retirement system shall be credited to the member's individual
credited service account in accordance with rules the board of trustees shall from time to time prescribe
and in accordance with the applicable provisions of Chapters 185, Florida Statutes. In no case shall more
than one (1) year of credited service be credited on account of all service rendered by a member in any
one (1) period of twelve (12) consecutive calendar months. Service shall be credited to the nearest one-
twelfth (1/12) of a year. Service shall be credited for the total number of years, and fractional parts of
years, of service of the member.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.2. 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.3. 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 2-310.25(c) hereof, plus interest
at the actuarially assumed rate, in accordance with terms established by the board of trustees.
(Ord. No. 58-99-26, § 2, 7-10-00)
25
Sec. 2-310.4. 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 the years of service provided for in USERRA or within FS 185
be credited on account of all military service.
(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
USERRA, FS 185, 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 under the
provisions of this section and USERRA.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.5. Voluntary retirement conditions; employment after retirement.
(a) 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.
(3) 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 2-310.10 or section 2-310.11.
(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 has obtained the age of fift~five
(SSZ, ears and has ten (10) or more years 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 (5) years of credited service in force.
(2) Early retirement: the member has attained the age of fift~(50) or older and has ten (10)
of more years of credited service in force, shall be eligible for an early retirement.
(c) Employment after retirement:
(1) Any person who has retired as a member of this retirement system maybe reemployed by
the city in a sworn Police Officer position normally requiring less than one thousand (1000) hours
26
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 one thousand (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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.6. Normal retirement date and payment date.
(a) 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.
,~ The early 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.
(bc) The monthly retirement income payable in the event of normal or early retirement shall be
payable on the first day of each month
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.7. Deferred retirement upon separation from employment (vesting).
(a) A member of the retirement system who terminates city employment prior to satisfying the
*. requirements for voluntary retirement under section 2-310.5 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 2-310.5.
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 2-310.510 as those subsections were
in force at the time a member left city employment. Such benefit shall be paid as a standard benefit form
(ten (10)year certain and life thereafter as provided in section 2-310.11.
(b) The credited service requirement for separation from city employment with entitlement to
deferred retirement is five (5) years. Provided, that any member who attained five (5~ or more years of
service with the city and elected to leave his or her accrued contributions in the plan shall be entitled to a
benefit under the provisions as set out in section 2-310.7(aLpon attaining normal retirement age.
(c) A member of the retirement system who terminates city employment prior to satisfying the five
(5) year requirement for deferred retirement under section 2-310.5 is entitled to a full refund of his/her
contributions, plus interest as determined by the board of trustees.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.8. Disability retirement--General conditions for eligibility.
(a) If a member, prior to his normal retirement date, becomes totally and permanently 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 (25) percent of the final average salary.
27
(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).
(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 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:
(1) Excessive and habitual use by the employee of drugs, intoxicants, or narcotics;
(2) 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.
(d) 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 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/her normal retirement date,
is the greater of the monthly income computed according to the applicable subsections of section 2-
310.10 or the minimums established in section 2-310.8(a). Provided, that such benefits shall be paid in
the standard form, (ten (1 OZyear certain and life thereafter).
(f) The monthly retirement income as computed in Section 2-310.10 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.
(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
28
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.
(h) If the member recovers from disability and reenters the service of the city as a police 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.9. Same--Continuation subject to re-examination; return to employment.
(a) The board of trustees may require a disability retirant to undergo periodic medical or
psychological examination if the disability retirant has not attained ale-s~~-{-69~ his or her normal
retirement eli ig bility date.
(b) 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.
(c) A disability retirant who has been restored to employment with the city as provided in subsection
2-~R8:310.8(h) shall again become a member of the retirement system.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.10. Calculation of pension benefit.
(a) Normal retirement benefit. Subject to section 2-310.14, the amount of level straight life pension
shall be equal to the retiring member's credited service multiplied by three (3) percent of the retiring
member's final average compensation.
(bl Early retirement benefit. The amount of an early retirement benefit shall be calculated as
provided in subsection 2-310.10(a) above taking into account credited service to the date of actual
retirement and final average 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 incomepayments. In no event shall the early retirement reduction exceed three (3) percent for
each year by which the member's age at retirement preceded the member's normal retirement age.
{~) ~ Cost-of-living adjustment. All retirement system members and beneficiaries who retired prior to
January 1, 1997, shall receive aone-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. Effective October 2001, all retirement system members and beneficiaries who retired
prior to January 1, 2001, shall receive aone-time cost-of-living adjustment, which shall be in an amount
equal to five (5) percent of the benefits paid to such retired members and beneficiaries during the
immediately preceding month.
(Ord. No. 58-99-26, § 2, 7-10-00; Ord. No. 58-01-28, § 2, 10-8-01)
Sec. 2-310.11. 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 standard normal or early retirement benefit form of payment. The election must be
made in writing and filed with the board of trustees prior to the date retirement is effective. Unless
otherwise elected, the standard normal benefit form shall be "Option A" below. Payment will be made
under the standard normal retirement benefit form if a timely election of an optional form of payment is
not made. The amount of pension under any option shall be the actuarial equivalent of the amount of
pension under the standard normal retirement benefit form payment.
29
(1) Option A; Ten (10) years certain and retirant's life thereafter: Under Option A, a retirant
shall be paid a pension for life, however
in the event
,,, the retirant dies after retirement but before receiving retirement benefits for a period of ten (10)
years the same months benefit will be paid for the balance of such ten year period. Benefit
payments shall be made to the retirant's designated beneficiary or estate for such period.
(2) Option B; Modified joint survivor pension: 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 field with the board of trustees at the time of election of the optional form of
payment.
(3) Option C; Retirant's life only: Under Option C, a retirant shall be paid a pension for his
or her life only. All monthly payments shall cease on the death of the retirant.
Option ED; Social security coordinated pension: Under Option ED, 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.
(45) 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
(61 ADeferred-Retirement Option Program (DROP), shall be established and administered
the Board of Trustees of the City of Atlantic Beach Police Officers' Retirement System.
Such DROP shall be aself-directed program. A Police Officer Emplo e~y enter the
DROP as set forth herein.
(a) Eligibility.
A Qarticipant of the City of Atlantic Beach Police Officers' Retirement System maw
into the DROP on the first day of the month following the attainment of age and service
retirement requirements provided in the City of Atlantic Beach Code section 2-310.5(b).
Participants who attained eligibilityprior to the enactment of the DROP shall be afforded
the option of participating immediately.
(b) Written Election.
A participant electing toparticipate in the DROP must complete and execute the proper
forms which shall be supplied by the Board of Trustees. Election into the DROP is
irrevocable once a participant enters the DROP.
(c) Limitation/Disqualification for Other Benefits.
A participant may_participate in the DROP only once. After commencement of
participation in the DROP, the employee shall no longer earn or accrue additional vesting
"` credits toward retirement benefits and shall not be eligible for disabili or pre-retirement
death benefits in the City of Atlantic Beach Police Officers' Retirement S s
30
(d) Cessation or Reduction of Contributions.
Upon the effective date of a~articipant's commencement of participation in the DROP, the
participant's contributions to the City of Atlantic Beach Police Officers' Retirement S sy tem
shall be discontinued.
(e) Benefit Calculation.
For all City of Atlantic Beach Police Officers' Retirement System purposes, the service and
vesting credits of a participant participating in the DROP shall remain as the existed on
the effective date of commencement of participation in the DROP. This shall include
current and future Cost of Living Adjustments (COLA) as provided in the City of Atlantic
Beach Code of Ordinances. The participant shall not earn or be credited with any
additional vesting credits after beginning DROP participation. Service thereafter shall not
be recognized by the City of Atlantic Beach Police Officers' Retirement System or used for
the calculation or determination of any benefits payable by such Retirement System. The
final average compensation of the participant shall remain as it existed on the effective date
of commencement of participation in the DROP. Payment for unused Compensatory Time
shall be made when the participant enters the DROP and shall be utilized in determining
the final average compensation. Payment for accrued unused leave (vacation, holiday etc•)
shall be made when the participant actually terminates employment with the City.
Earnings thereafter shall not be recognized by the Retirement System or used for the
calculation or determination of any benefits payable by the Retirement System.
~f Payments to DROP Account. The monthly retirement benefits. including any future
cost of living increases, that would have been payable had the participant elected to cease
employment and receive a normal retirement benefit shall be deposited into the
participant's DROP account.
DROP Account Earnings.
Earnings of each DROP account shall be in accordance with the self-directed options
selected by the participant and shall continue for up to sixty (60) months at which time all
deposits to the participant's account shall cease Neither the City, the Retirement System
nor the system's Board of Trustees shall have any responsibility or liability for any of the
self-directed options selected by the participant.
(h) Maximum Participation.
A participant may participate in the DROP for a maximum of sixt~60) months. At the
conclusion of the sixty (60) months, the participant's DROP account deposits shall cease.
The participant may terminate DROP participation by terminating from covered city
employment on a date prior to sixty (60) months from the date the participant entered the
DROP.
A participant that elects to participate in the DROP may participate for a maximum of sixty
i60) months. At the conclusion of the maximum time period, the participant's covered city
employment must terminate pursuant to the resignation submitted by the participant as
part of the DROP application The participant may terminate DROP~articipation by
terminating from covered c~ employment on a date prior to sixty (60) months from the
date the participant entered the DROP.
(i) Expenses.
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All administrative fees charged for the administration and operation of the participant's
DROP account shall be in accordance with the self-directed options selected by the
participant.
(jLYout.
~i~Upon the termination of a participant's covered Ci employment (for any reason,
whether by retirement, resignation, discharge or death), the retirement benefits payable
to the participant or to the participant's designated beneficiary shall be paid to the
participant, the participant's designated beneficiary or theparticipant's estate and shall
no longer be deposited into the participant's DROP account.
(ii) Within thirty days after the end of any calendar quarter following the termination
of a participant's employment, the balance in theparticipant's DROP account shall be
payable in accordance with the self-directed options selected by the participant.
Regardless of the option selected by the participant, the Board of Trustees has the right to
accelerate payments in order to comply with Section 401(A)(9) of the Internal Revenue
Code and the right to defer payments to comply with Section 415 of the Internal Revenue
Code.
(k) Death.
If a DROP participant dies before the account balance is paid out in full, the participant's
designated beneficiary shall have the same rights as the participant to elect and receive the
pay out options set forth in paragraph j above. DROP payments to a beneficiary shall be in
addition to any retirement death benefit payable to the participant. Participants who are or
have been DROP participants are not eligible for pre-retirement death or disability
benefits.
(1) Forms.
The forms and notices for use in administering the DROP shall be approved by the Board
of trustees.
(m) Amendments.
The Citv Commission may amend the DROP at any time. Such amendments shall be
consistent with the provisions covering deferred retirement option plans set forth in any
applicable collective bargaining agreement and shall be binding upon all future DROP
participants and upon all DROP participant's who have balances in their accounts. Such
amendments may increase the expense, decrease the account earnings. or limit or restrict
the payout oQtions.
Sec. 2-310.12. 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 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 2-310.10 in the same manner in all
respects as if the member had elected Option B at the one hundred (100) percent level provided in Section
2-310.11 and retired the day preceding his/her death, notwithstanding that the member may not have
32
satisfied the conditions for retirement. Provided, that if the member had at least five (5) years of credited
service at the time of death, his or her beneficiary shall be entitled to all benefits otherwise payable to the
member at early or normal retirement age paid in the standard benefit form (ten (10) year certain and life
thereafter . Upon a member's retirement, entry into DROP, resignation, or termination as a city employee,
eligibility for the death benefit payable under section 2-310.10 will automatically terminate.
(c) 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 maybe 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 fmal, 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.13. 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 2-310.12,
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 2-310.132.
(b) The person to whom the deceased member was married at the time of death shall be paid a
pension equal to seventy-five (75) percent of the amount of Option ~4C-Retirant's life only pension
computed according to the applicable subsection of section 2-310.1 1, based on the deceased member's
final average compensation and credited service.
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) yeazs 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-
310.11,based on the deceased member's final average compensation and credited service. The percent
shall be 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
(19) yeazs but less than twenty-three (23) yeazs, 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.14. 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.
33
(b) 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.
(c) 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
(2) Notwithstanding 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 betaken 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 (10) 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 denominator shall be ten (10) 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 (5) 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 sixty-two (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 (5) percent or the interest rate used in the most recent
annual actuarial valuation; however, retirement benefits shall not be reduced below seventy-five
thousand dollars ($75,000.00) if payment of benefits begins at or after age fifty-five (55). If
retirement benefits begin after age sixty-five (65), the dollar limitation of subsection (1) of this
subsection shall be increased actuarially using an interest assumption equal to the lesser of five
(5) 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 (3) highest paid consecutive
years means the member's greatest aggregate compensation during the period of three (3)
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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.15. Subrogation rights.
If a member of the retirement system; retirant, 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
34
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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.16. City contribution.
(a) The plan shall be funded by contributions from member contributions, as provided in section 2-
310.27, state funding provided for in F.S. § 185.08, contributions from the city, and other income sources
as authorized by law.
(b) 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.
(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 2-310.27 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 thirty (30)
years, as determined by the Florida Statutes required awl-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.
(d) 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.17. 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.
(a) Delegation and allocation of investment functions.
(1) 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.
` (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
that comply with all requirements and limitations of Chapter 185 of the Florida Statutes.
35
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec.2-310.18. Ezpenses.
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
Plan eil3:
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.19. 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 the board of trustees.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.20. Assignments prohibited.
(a) 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 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.
(b) 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 (1) 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 distriibutee
and the distributee's designated beneficiary or for a specified period often (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 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec.2-310.21. Errors.
36
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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.22. Protection against fraud; forfeiture.
(a) 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.
(b) 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.23. 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.
- (Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.24. 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:
(1) The specific reasons for the denial, suspension, or termination of benefits;
(2) The specific references to the pertinent provisions of the pension plan upon which the action is
based and a copy of the pension plan provisions shall be furnished with this notice;
(3) 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
(4) An explanation of the claims review procedure.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.25. Claim review procedure.
(a) 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
37
normal business hours, and shall be permitted to submit comments and a statement of issues for
consideration by the board of trustees.
(b) Representation. Aclaimant 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.
(c) 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 by the 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 plan provisions 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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.26. Exhaustion of claims review procedure.
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 2-310.25, unless the board of
trustees fails to render a decision as provided in 2-295{e)310.27 c . In no case, however, shall any 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 2-310.24.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.27. Member contributions.
(a) Member contributions for benefit group police bargaining unit members covered by the current
collective bargaining unit collective bargaining agreement shall be 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, which said contribution shall be deducted from the member's pay and paid over into the retirement
system each pay period.
(b) 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
38
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.
(d) 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 2-310.5, may retire with the actuarial
equivalent of the amount of such retirement income otherwise payable to him/her.
(e) 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 Internal
Revenue Service;
(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.
(Ord. No. 58-99-26, § 2, 7-10-00)
Sec. 2-310.28. Benefit limitations and required distributions.
(a) 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.
(b) 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.
(2) Distributions to a member and his/her beneficiary shall only be made in accordance with
the incidental death benefit requirements of [Internal Revenue] Code Section 401(a)(9)(G) and
the regulations thereunder.
(Ord. No. 58-99-26, § 2, 7-10-00)
39
> >
:~~"`"'
40
Ordinance No. 58-04-29
PASSED by the City Commission on first reading on the 9th day of February 2004.
DEFERRED by the City Commission at Public Hearing and second reading on the 23rd day of
February 2004.
PASSED by the City Commission at Public Hearing and final reading this 8th day of March 2004.
ATTEST:
Ma en King, City erl
Approved as to form and correctness:
~~~' ,~
lan Jen~n ity Attorney
LEGEND: Underlining is new lan~ua~e
41