Ordinance No. 58-07-32 vORDINANCE NO. 58-07-32
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
FLORIDA, AMENDING CHAPTER 2, ADMINISTRATION,
ARTICLE VI, DIVISION 4, POLICE OFFICER RETIREMENT
SYSTEM, TO PROVIDE THE LIMITED OPPORTUNITY TO
CHANGE A DESIGNATION OF BENEFICLARY BOTH PRE AND
POST RETIREMENT; PROVIDE THE OPPORTUNITY TO
PURCHASE CREDITED SERVICE FOR PRIOR MILITARY AND
POLICE OFFICER EMPLOYMENT ON PAYMENT OF FULL
ACTUARIAL COST BY THE EMPLOYEE; PROVIDE
PROVISION FOR ADJUSTMENT TO NORMAL RETIREMENT
BENEFIT IN THE EVENT DESIGNATED BENEFICIARY
PREDECEASES THE EMPLOYEE; PROVIDE INCREASES IN
EMPLOYEE CONTRIBUTION RATE; PROVIDING FOR
SEVERABILITY AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Atlantic Beach, Florida has an interest in the firture retirement of its
employees and wishes to improve the retirement systems whenever feasible; and
WHEREAS, the City must maintain compliance with Chapter 185 of the Florida Statutes; and
WHEREAS, the city desires to remain competitive in the local azea with respect to salary and
benefits offered to its employees; and
WHEREAS, the City and certain employee representation groups have agreed to specific
provisions through the collective bargaining process; and
WHEREAS, the City Commission has received and reviewed an actuarial impact statement
related to this change; and
NOW THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE
PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AS FOLLOWS:
SECTION 1. Chapter 2, Administration; Article VI Employee Benefits; Division 4, Police Officer
Returement System be amended as follows:
DIVISION 4. POLICE OFFICERS' RETIREMENT SYSTEM
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 actuazial 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, designated in writing by a member 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. A member may revoke such
designation by signing and filing with the board of trustees a new designation of beneficiary
form at any tune pnor to retirement, however after retirement, such designation of beneficiary
may only be changed tvtnce. The board of trustees may request such evidence of the good health of a
beneficiary that is being removed as rt may require and the amount of the retirement income payable u on
the designahon of a new beneficiary be actuarially re-determined to ensure that the benefit paid is the
actuarial equivalent of the present value of the member's current benefit, taking into account the
a es and sex of the former beneficiary the new beneficiary and the member
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.
A member, may purchase up to five (5) years of Credited service for service in the Armed Farces of the
United States or service as a Police Officer for an law enforcement enc rior to em to ent as a
Police Officer by the Citv by depositing the full actuarial costs of such years of Credited service that
would have occurred had the Police Officer been em to ed b the Ci for the number of ears
urchased. Such ent for said rior Credited service ma be made as a loin sum or in installments
not to exceed _the years of service purchased: however must be paid in full prior to retirement
Installment payments shall reguu~e interest at the actuarial rate of return for the years purchased Such
purchase of pnor Credited service shall take effect upon vesting If a member terminates service prior to
vesting and receives a refund of employee contributions the amount paid for such prior Credited service
shall also be refunded Subject to the following:
1. Prior Credited service shall not be granted for service where the member is receiyin or is
entitled to receive a benefit from another governmental pension system
2. Prior Credited service under this section shall only,_be provided for service in the Armed
Forces of the United States or service as a police officer for any law enforcement enc~
3. Actual Prior Service credit purchased shall be added to the years of service with the City
4. Election to purchase prior Credited service for prior service in the Anned Forces of the
United States or with any law enforcement agency not to exceed a combined total of five ~5)
years, shall be made in writing to the Board of trustees The cost of rior Credited service
purchased for such prior service shall be the full actuarial cost of all Credited service
purchased hereunder computed as a lump sum~ayment into the plan Actual payment may
at the member's option, be extended over a period of time not to exceed the veers purchased
and shall be subject to interest at the assumed actuarial rate for the +ears purchased Such
payment may be by direct in-service transfer from a participant's deferred compensation
account (457 accounts) pursuant to Section 457(e) (171 of the Internal Revenue Code or any
other qualified plan. Full payment of such purchased prior Credited service must be
completed pnor to the member's actual retirement
Sec. 2-310.11. Optional forms of pe~usion 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 standazd 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. No member
may change the elected optional form of payment after the date of cashin or de ositing the first benefit
pa ment. 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.
(1) Option A; Ten (l 0) 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 monthly
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:
a. Under 9ptiea B; -a ;-e A retirant shall be paid a reduced pension for life with the
provision that upon the retirant's death, a benefit as designated by the retirant of either,
one hundred (100), seventy-five (75), sixty-six and two thirds (66 2/3) or fifty (50)
percent of the reduced pension benefit shall be continued throughout the future lifetime
of and paid to such person as the retirant shall have specified by written designation duly
executed and filed with the board of trustees at the time of election of the optional form
of payment.
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~50Zpercent of the reduced
pension benefit shall be continued throughout the future lifetime of and paid to such
person as the retu~ant shall have specified by written designation duly executed and filed
with the board of trustees at the time of election of the optional form of payment
However, m the event the person desi ated by the retirant predeceases the retirant, the
monthly benefit shall increase to the amount payable under the standard normal form of
payment for the remaining lifetime of the retirant
Sec. 2-310.27. Member contributions.
(a) Member contributions for benefit group police bargaining unit members covered by the
current collective bargaining unit collective bazgaining agreement shall be eae- f l-)
p~ee~ef-salary-twa and eight hundred fifteen thousandths (2 S 15) percent of salaru
Effective_ on September 24 2006 Member contributions for benefit groinpolice
b_az~auuns umt members covered by the current collective bazgainin~ unit collective
bazgainms agreement shall be three and ei~bt hundred fifteen thousandths (3 815~rcent
of salary.
Effective on September 23 2007 Member contributions for benefit group police
bazsammg unit members covered by the current collective bargaining unit collective
bazgainmg agreement shall be four and eight hundred fifteen thousandths percent (4 815)
of salary.
All contributions shall be deducted from the member's pay and paid over into the
retu~ement system each pawperiod
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(b) For Member contributions for benefit group police that aze non collective bazgamm umt
members ,the contribution rate shall be four
and eight hundred fifteen thousandths (4.815) percent of salary_
All contributions shall be deducted from the member's pay and paid over into the
retirement system each pay period.
SECTION 2. Severability
If any section, sentence, clause or phrase of this ordinance is held to be invalid or
unconstitutional by any court of competent jurisdiction, then said holding shall in no way
affect the validity of the remaining portions of this ordinance.
SECTION 3. Effective Date
This ordinance shall take effect immediately upon its passage and as soon as the related
payroll deduction items can be implemented.
PASSED by the City Commission on first reading on the 27`s day of August 2007.
PASSED by the City Commission at Public Hearing and fmal reading this 10~` day of
September 2007.
~,
Donald M. Wolfson
Mayor /Presiding Officer
ATTEST:
trY/hai
Donna L. Bussey, CMC
City Clerk
to form and correctness:
LEGEND: Underlining is new language
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