Ordinance No. 58-08-34 vORDINANCE 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:
Beneficiary shall mean any person, designated in writing_~ 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 mad revoke such
desi ng ation b~gning and filing with the board of trustees a new
designation of beneficiary form at an t~prior to retirement, however
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 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.
A member may purchase up to five (5) years 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 years 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 pensions s
(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.
Ordinance No. 58-08-34 Page 2
(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 (Swears
and shall be made in writing to the board 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
pavment 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 subiect to interest at the assumed actuarial rate for the years purchased
Such pavment may be 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
pavment 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 Citv on or ~ after September 1 2008 who terminates city
employment with less than ten 10) years 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 are:
(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 svstem member emplo~v the City on or after September 1
2008, normal retirement shall mean the attainment of aye sixty (60~
older, and has ten (10) or more ey ars of credited service in force
(2) Early retirement.• The member has attained age fifty-five (55) 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 September 1
2008, early retirement shall mean the attainment of age fifty-five (55) or
older, and ten (10) or more years of credited service in force.
Ordinance No. 58-08-34 Page 3
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) years. For a retirement
system member employed by the City on or after September 1 2008 the
credited service requirement for separation from city employment with
entitlement to deferred retirement is: ten (1 OZ e
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 years of credited
service and having contributed to the retirement system for five (5) years
or more, or a member hired on or after September 1 2008 having ten (10)
or more continuous years of credited service and having contributed to the
retirement system for ten (l0~years or more may retire from the service
of the city if he becomes totally and permanently disabled as defined in
subsection (b) by reason of any cause other than a cause set out in
subsection (c). Such retirement shall herein be referred to as "disability
retirement."
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. 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 o£
(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 personas the
Ordinance No. 58-08-34 Page 4
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 remaining 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 (55) and five (5) years
of service with the City of Atlantic Beach. A participant of the City of
Atlantic Beach general employees' retirement system employed b~ the
City on or after September 1, 2008 may enter into the DROP on the first
day of the month following the attainment of age fifty-five and ten (10)
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 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 employee was hired on or after
September 1, 2008 before accumulating aggregate time of ten (10) 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, or if employee
Ordinance No. 58-08-34 Page 5
was hired on or after September 1 2008 and has been in the service of the
city for at least ten (10) 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.
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 effective date for the modifications to the vesting requirement from 5 to 10
years will be September 1, 2008, which corresponds with the first day of the month
following final 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 11th day of
August, 2008.
ATTEST:
Donna L. Bartle, CMC
City Clerk
as to form and correctness:
". Jensen, Esquire
ttorney
LEGEND: Underlining is new lap uage.
/ L1111V 1.111
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