Item 7CAGENDA ITEM # 7C
AUGUST 11, 2008
ORDINANCE NO. 58-08-34
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA,
AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE VI, DIVISION
3, GENERAL EMPLOYEE RETIREMENT SYSTEM, TO PROVIDE THE
ABILITY TO CHANGE A NAMED BENEFICIARY UP TO TWO TIMES
AFTER RETIREMENT; PROVIDING THE PURCHASE OF LIMITED
CREDITED SERVICE FOR MILITARY SERVICE PRIOR TO
EMPLOYMENT WITH THE CITY; PROVIDING FOR AN INCREASE IN
THE VESTING REQUIREMENT FROM 5 TO 10 YEARS FOR
EMPLOYEES HIRED ON OR AFTER THE FIRST DAY OF THE MONTH
FOLLOWING FINAL APPROVAL AND ADOPTION OF THIS
ORDINANCE; PROVIDING FOR THE RETURN TO THE NORMAL
FORM OF RETIREMENT FOR RETIREES WHERE THE NAMED
BENEFICIARY PREDECEASES THE RETIREE; PROVIDING FOR A
SAVINGS CLAUSE; 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 certain enhanced benefits within its retirement systems; and
WHEREAS, the City has received and reviewed actuarial impact statements
related to these changes; and
WHEREAS, the City of Atlantic Beach, Florida hereby amends its retirement
systems to provide such benefits as follows:
NOW THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF
THE CITY OF ATLANTIC BEACH, FLORIDA, AS FOLLOWS:
Section 1. Section 2-262 of Chapter 2, Administration, Article VI, Division 3,
General Employee Retirement System of the Code of Ordinances is hereby amended as
follows:
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:
Benefrciary 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
desi agn tion of beneficiary form at any time prior to retirement, however
AGENDA ITEM # 7C
AUGUST 11, 2008
after retirement, such designation of beneficiary. may only be changed
twice. The board of trustees shall require and the amount of the retirement
income payable upon the designation of a new beneficiary shall 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 ages and sex of the former beneficiary, the new beneficiary,
and the member. ^
Section 2. Section 2-272 of Chapter 2, Administration, Article VI, Division 3,
General Employee Retirement System of the Code of Ordinances is hereby amended as
follows:
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 neazest 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.
A member may purchase up to five (5) veazs of credited service for
service in the Armed Forces of the United States prior to employment by
the city, by depositing the full actuarial costs of such years of credited
service that would have occurred had the member been employed by the
city, for the number of years purchased. Such payment for said prior
credited service may be made as a lump sum or in installments not to
exceed the yeazs of service purchased; however, must be paid in full prior
to retirement. Installment payments shall require interest at the actuarial
rate of return for the years purchased. Such purchase of prior 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 either receiving_entitled to receive, or was 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.
(3) Actual prior service credit purchased shall be added to the years of
service with the city.
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AGENDA ITEM # 7C
AUGUST 11, 2008
(4) Election to purchase prior credited service for prior service in the
Armed Forces of the United States shall not exceed a total of five~5) nears
and shall be made in writing to the boazd of trustees The cost of prior
credited service purchased for such prior service shall be the full actuarial
cost of all credited service purchased hereunder computed as a lump sum
nayment into the plan. Actual payment may at the member's option be
extended over a period of time not to exceed the years purchased and shall
be subject to interest at the assumed actuarial rate for the veazs purchased
Such payment ma bye by direct in service transfer from a participant's
deferred compensation account (457 accounts pursuant to Section
457(e)(17) of the Internal Revenue Code or any other qualified plan Full
t~ayment of such purchased prior credited service must be completed prior
to the member's actual retirement.
Section 3. Section 2-273 of Chapter 2, Administration, Article VI, Division 3,
General Employee Retirement System of the Code of Ordinances is hereby amended as
follows:
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. A retirement svstem member employed
by the City on or after (see note) who terminates cit~m_plo~, ent with
less than ten (10) veazs of credited service shall forfeit such credited
service.
Section 4. Section 2-276 of Chapter 2, Administration, Article VI, Division 3,
General Employee Retirement System of the Code of Ordinances is hereby amended as
follows:
Sec. 2-276. Voluntary retirement conditions; employment after
retirement.
(b) The age and service requirements for voluntary retirement aze:
(1) Normal retirement: The member has attained age sixty (60) years or
older, and has five (5) or more years of credited service in force. For a
retirement system member employed by the City on or after~see note
normal retirement shall mean the attainment of a e sixt~(60 or older and
has ten (10) or more years of credited service in force.
(2) Early retirement: The member has attained age fifty-five (55) veazs
or older, and has five (5) or more years of credited service in force. For a
retirement svstem member employed by the City on or after (see note),
early. retirement shall mean the attainment of age fi -five (55) or older
and ten (10) or more Years of credited service in force.
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AGENDA ITEM # 7C
AUGUST I I, 2008
Section 5. Section 2-278 of Chapter 2, Administration, Article VI, Division 3,
General Employee Retirement System of the Code of Ordinances is hereby amended as
follows:
Sec. 2-278. Deferred retirement upon separation from employment
(vesting).
(b) The credited service requirement for separation from city
employment with entitlement to deferred retirement is: five (5) yeazs. For
a retirement system member employed by the Citv on or after (see note,),
the credited service requirement for separation from city employment with
entitlement to deferred retirement is: ten (10)~s.
Section 6. Section 2-279 of Chapter 2, Administration, Article VI, Division 3,
General Employee Retirement System of the Code of Ordinances is hereby amended as
follows:
Sec. 2-279. Disability retirement--General conditions for eligibility.
(a.) A member having five (5) or more continuous yeazs of credited
service and having contributed to the retirement system for five (5) years
or more, or a member hired on or after (see note) having ten (10) or more
continuous years of credited service and having_ contributed to the
retirement system for ten (lOZyears or more may retire from the service
of the city if he becomes totally and permanently disabled as defined in
subsection (b) by reason of any cause other than a cause set out in
subsection (c). Such retirement shall herein be referred to as "disability
retirement."
Section 7. Section 2-282 of Chapter 2, Administration, Article VI, Division 3,
General Employee Retirement System of the Code of Ordinances is hereby amended as
follows:
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. T'he election must be made in writing and filed with the
boazd 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. T'he 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
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AGENDA ITEM # 7C
AUGUST 11, 2008
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. In the event the person nominated by the retirant predeceases
the retirant, the monthly benefit shall increase to the amount payable under
the normal form of payment for the remaining lifetime of the retirant
(2) Option B; fifty (SO) 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. In the event the person nominated by the retirant predeceases
the retirant, the monthly benefit shall increase to the amount payable under
the normal form of payment for the remainin lifetime of the retirant
(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 employee 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 day of
the month following the attainment of age fifty-five (SS) and five (S) years
of service with the City of Atlantic Beach. A pazticipant of the Citv of
Atlantic Beach general employees' retirement system emplo ey d by the
City on or after (see noted may enter into the DROP on the first day of the
month following the attainment of ale f fty-five and ten ~l OZyeazs of
service with the Ci of Atlantic Beach. However, a participant entering
the DROP prior to attaining age sixty (60) shall have their benefit
actuarially reduced for each yeaz under the age of sixty (60). Participants
who attained eligibility prior to the enactment of the DROP shall be
afforded the option of participating immediately.
Section 8. Section 2-298 of Chapter 2, Administration, Article VI, Division 3,
General Employee Retirement System of the Code of Ordinances is hereby amended as
follows:
Sec. 2-298. Member contributions.
(c) If an employee leaves the service of the city before accumulating
aggregate time of five (5) years, or if emnloyee was hired on or after (see
note) before accumulating ag negate time of ten (IOLYears 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, or if employee was hired on or after (see
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AGENDA ITEM # 7C
AUGUST 11, 2008
notel and has been in the service of the city for at least ten (10~ yeazs 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.
Section 9. The provision adopted herein shall prevail over any existing sections of
the Atlantic Beach Code to the extent said existing sections are contrary or inconsistent
herewith.
Section 10. Severability. If any section, sentence, clause, word, or phrase of this
Ordinance is held to be invalid or unconstitutional by a court of competent jurisdiction
then said holding shall in no way affect the validity of the remaining portions of this
Ordinance.
Section 11. Codification. Specific authority is hereby granted to codify this
Ordinance.
Section 12. Effective Date.
Note: The modifications to the vesting requirement from 5 to 10 yeazs include a blank
for the date of the change. Staff will insert the date that corresponds with the first day of
the month following fmal passage and adoption of this Ordinance.
This Ordinance, other than the provision referenced in the note above, shall take effect
upon its final passage and adoption.
PASSED by the City Commission on first reading this 14th day of July, 2008.
PASSED by the City Commission on second and final reading this _____ day of
2008.
ATTEST:
Donna L. Bartle, CMC
City Clerk
Approved as to form and correctness:
Alan C. Jensen, Esquire
City Attorney
LEGEND: Underlining is new language.
John S. Meserve
Mayor/Presiding Officer
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