Ordinance No. 58-13-36 v ORDINANCE NO. 58-13-36
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
AMENDING AND RESTATING CHAPTER 2,
ADMINISTRATION, ARTICLE VI, EMPLOYEE BENEFITS,
DIVISION 4, POLICE OFFICERS' RETIREMENT SYSTEM,
SECTIONS 2-300 THROUGH 2-310.29, INCLUSIVE, OF THE
CODE OF ORDINANCES OF THE CITY OF ATLANTIC
BEACH, BY RESTATING THE CITY OF ATLANTIC BEACH
POLICE OFFICERS' RETIREMENT SYSTEM; PROVIDING
FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF
PROVISIONS; REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City of Atlantic Beach Police Officers are presently provided pension
and certain other benefits under Ordinances of the City of Atlantic Beach and;
WHEREAS, the City Commission desires to clarify and restate the provisions of the
Police Officers' Retirement System to consolidate all prior ordinances and Code provisions and
to incorporate Federal law and the applicable provisions of Chapter 185, Florida Statutes; and
WHEREAS, the City Commission also desires to amend and adjust the benefits
currently provided.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF ATLANTIC BEACH, FLORIDA;
SECTION 1: That Chapter 2, Administration, Article VI, Employee Benefits, Division
4, Police Officers' Retirement Plan, Sections 2-300 through 2-310.29, inclusive, of the Code of
Ordinances of the City of Atlantic Beach, is hereby amended and restated as set forth in the
document designated CITY OF ATLANTIC BEACH POLICE OFFICERS' RETIREMENT
SYSTEM, attached hereto and made a part hereof.
SECTION 2: Specific authority is hereby granted to codify and incorporate this
Ordinance in the existing Code of Ordinances of the City of Atlantic Beach.
SECTION 3: All Ordinances or parts of Ordinances in conflict herewith be and the
same are hereby repealed.
SECTION 4: If any section, subsection, sentence, clause, phrase of this ordinance, or
the particular application thereof shall be held invalid by any court, administrative agency, or
other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or
phrases under application shall not be affected thereby.
SECTION 5: That this Ordinance shall become effective upon its adoption.
PASSED ON FIRST READING,this 13th day of May 2013.
PASSED AND ADOPTED ON SECOND READING,this 10th day of June 2013.
/4/141/2 61-1444)
Mike Borno
Mayor
ATTEST:
kiCe&e&
Donna L. Bartle, CMC
City Clerk
Approved as to form:
■/1/
...PA//i..AL
sen, Esquire
� Attorney
Ordinance No. 58-13-36 Page 2 of 47
CITY OF ATLANTIC BEACH POLICE OFFICERS' RETIREMENT SYSTEM
Sec. 2-300. Definitions.
(a) As used herein, unless otherwise defined or required by the context, the following
words and phrases shall have the meaning indicated:
Accumulated contributions means a member's own contributions with interest
compounded annually on October 1 of each year based on the two-year Treasury Rate as of
October 1 of each year plus interest at the same rate payable through the date of termination of
employment. For those members who purchase credited service with interest or at no cost to the
system, any payment representing the amount attributable to member contributions based on the
applicable member contribution rate, and any payment representing interest and any required
actuarially calculated payments for the purchase of such credited service shall be included in
accumulated contributions, with interest. Interest shall accrue only during periods of active
employment.
Actuarial equivalent means a benefit or amount of equal value, based upon the RP-2000
Combined Healthy Male Generational Mortality Table projected by Scale AA, and an interest
rate of eight (8%) per annum. This definition may only be amended by the city pursuant to the
recommendation of the board using assumptions adopted by the board with the advice of the
plan's actuary, such that actuarial assumptions are not subject to city discretion.
Average final compensation means one-twelfth(1/12) of the average salary of the five (5)
best years of the last ten (10) years of credited service prior to retirement, termination, or death,
or the career average as a full-time Police Officer, whichever is greater. A year shall be twelve
(12)consecutive months.
Beneficiary means the person or persons entitled to receive benefits hereunder at the
death of a member who has or have been designated in writing by the member and filed with the
board. If no such designation is in effect, or if no person so designated is living, at the time of
death of the member,the beneficiary shall be the estate of the member.
Board means the board of trustees, which shall administer and manage the system herein
provided and serve as trustees of the fund.
City means City of Atlantic Beach, Florida.
Credited service means the total number of years and fractional parts of years of service
as a Police Officer with member contributions, when required, omitting intervening years or
fractional parts of years when such member was not employed by the city as a Police Officer. A
member may voluntarily leave his accumulated contributions in the fund for a period of five (5)
years after leaving the employ of the Police department pending the possibility of being
reemployed as a Police Officer, without losing credit for the time that he was a member of the
system. If a vested member leaves the employ of the Police department, his accumulated
contributions will be returned only upon his written request. If a member who is not vested is
not reemployed as a Police Officer with the Police department within five (5) years, his
accumulated contributions, if one-thousand dollars ($1,000.00) or less shall be returned. If a
Member who is not vested is not reemployed within five (5) years, his Accumulated
Contributions, if more than one-thousand dollars ($1,000.00), will be returned only upon the
written request of the Member and upon completion of a written election to receive a cash lump
sum or to rollover the lump sum amount on forms designated by the Board. Upon return of a
member's accumulated contributions, all of his rights and benefits under the system are forfeited
and terminated. Upon any reemployment, a Police Officer shall not receive credit for the years
Ordinance No. 58-13-36 Page 3 of 47
and fractional parts of years of service for which he has withdrawn his accumulated contributions
from the fund, unless the Police Officer repays into the fund the contributions he has withdrawn,
with interest, as determined by the board, within ninety (90) days after his reemployment.
The years or fractional parts of a year that a member performs "Qualified Military
Service" consisting of voluntary or involuntary "service in the uniformed services" as defined in
the Uniformed Services Employment and Reemployment Rights Act (USERRA) (P.L.103-353),
after separation from employment as a Police Officer with the city to perform training or service,
shall be added to his years of credited service for all purposes, including vesting,provided that:
(1) The member is entitled to reemployment under the provisions of USERRA.
(2) The member returns to his employment as a Police Officer within one year from
the earlier of the date of his military discharge or his release from active service,
unless otherwise required by USERRA.
(3) The maximum credit for military service pursuant to this paragraph shall be five
(5) years.
(4) This paragraph is intended to satisfy the minimum requirements of USERRA. To
the extent that this paragraph does not meet the minimum standards of USERRA,
as it may be amended from time to time, the minimum standards shall apply.
In the event a member dies on or after January 1, 2007, while performing USERRA
Qualified Military Service, the beneficiaries of the member are entitled to any benefits (other
than benefit accruals relating to the period of qualified military service) as if the member had
resumed employment and then died while employed.
Beginning January 1, 2009, to the extent required by section 414(u)(12) of the code, an
individual receiving differential wage payments (as defined under section 3401(h)(2) of the
code) from an employer shall be treated as employed by that employer, and the differential wage
payment shall be treated as compensation for purposes of applying the limits on annual additions
under section 415(c) of the code. This provision shall be applied to all similarly situated
individuals in a reasonably equivalent manner.
Effective date means the date on which this ordinance becomes effective.
Fund means the trust fund established herein as part of the system.
IRC means the Internal Revenue Code of 1986, as amended from time to time.
Member means an actively employed Police Officer who fulfills the prescribed
membership requirements. Benefit improvements which, in the past, have been provided for by
amendments to the system adopted by city ordinance, and any benefit improvements which
might be made in the future shall apply prospectively and shall not apply to members who
terminate employment or who retire prior to the effective date of any ordinance adopting such
benefit improvements, unless such ordinance specifically provides to the contrary.
Plan year means the twelve (12) month period beginning October 1 and ending
September 30 of the following year.
Police Officer means an actively employed full-time person, employed by the City,
including his initial probationary employment period, who is certified as a Police Officer as a
condition of employment in accordance with the provisions of§943.1395, Florida Statutes, who
is vested with authority to bear arms and make arrests, and whose primary responsibility is the
Ordinance No. 58-13-36 Page 4 of 47
prevention and detection of crime or the enforcement of the penal, traffic, or highway laws of the
State of Florida.
Retiree means a member who has entered retirement status.
Retirement means a member's separation from city employment with eligibility for
immediate receipt of benefits under the system or entry into the deferred retirement option plan.
Salary means the total compensation for services rendered to the city as a Police Officer
reportable on the member's W-2 form plus all tax deferred, tax sheltered, or tax exempt items of
income derived from elective employee payroll deductions or salary reductions. 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. For service earned after February 26,
2013, (the "effective date"), Salary shall not include more than three hundred (300) hours of
overtime per calendar year. Provided however, in any event, payments for overtime in excess of
three hundred (300) hours per year accrued as of the effective date and attributable to service
earned prior to the effective date, may still be included in Salary for pension purposes even if the
payment is not actually made until on or after the effective date.
Compensation in excess of the limitations set forth in Section 401(a)(17) of the IRC as of
the first day of the plan year shall be disregarded for any purpose, including employee
contributions or any benefit calculations. The annual compensation of each member taken into
account in determining benefits or employee contributions for any plan year beginning on or
after January 1, 2002, may not exceed $200,000, as adjusted for cost-of-living increases in
accordance with IRC Section 401(a)(17)(B). Compensation means compensation during the
fiscal year. The cost-of-living adjustment in effect for a calendar year applies to annual
compensation for the determination period that begins with or within such calendar year. If the
determination period consists of fewer than 12 months, the annual compensation limit is an
amount equal to the otherwise applicable annual compensation limit multiplied by a fraction, the
numerator of which is the number of months in the short determination period, and the
denominator of which is 12. If the compensation for any prior determination period is taken into
account in determining a member's contributions or benefits for the current plan year, the
compensation for such prior determination period is subject to the applicable annual
compensation limit in effect for that prior period. The limitation on compensation for an
"eligible employee" shall not be less than the amount which was allowed to be taken into account
hereunder as in effect on July 1, 1993. "Eligible employee" is an individual who was a member
before the first plan year beginning after December 31, 1995.
Spouse means the lawful wife or husband of a member or retiree at the time benefits
become payable.
System means the City of Atlantic Beach Police Officers' Retirement System as contained
herein and all amendments thereto.
(b) Masculine gender. The masculine gender, where used herein, unless the context
specifically requires otherwise, shall include both the feminine and masculine genders.
Sec. 2-301. Membership.
Ordinance No. 58-13-36 Page 5 of 47
Conditions of eligibility. All police officers as of the effective date, and all future new
police officers, shall become members of this system as a condition of employment.
Notwithstanding the previous sentence, the Police Chief may, within sixty (60) days of
appointment as Police Chief, notify the board and the City, in writing, of his election to not be a
member of the system. In the event of any such election, he shall be barred from future
membership in the system and any vested accrued benefit shall be retained and paid when
otherwise payable herein, or contributions made after employment and prior to opting out shall
be refunded. Thereafter, contributions to the plan in accordance with §2-304 shall not be
required, he shall not be eligible to be elected as a member trustee on the board or vote for a
member trustee and shall not be eligible for any other benefits from the plan.
Sec. 2-302. Board of trustees.
(a) The sole and exclusive administration of and responsibility for the proper
operation of the system and for making effective the provisions of this ordinance is hereby
vested in a board of trustees. The board is hereby designated as the plan administrator. The
board shall consist of five (5) trustees, two (2) of whom, unless otherwise prohibited by law,
shall be legal residents of the city, who shall be appointed by the Atlantic Beach City
Commission, and two (2) of whom shall be members of the system, who shall be elected by a
majority of the Police Officers who are members of the system. The fifth trustee shall be chosen
by a majority of the previous four (4) trustees as provided for herein, and such person's name
shall be submitted to the Atlantic Beach City Commission. Upon receipt of the fifth person's
name, the Atlantic Beach City Commission shall, as a ministerial duty, appoint such person to
the board as its fifth trustee. The fifth trustee shall have the same rights as each of the other four
(4) trustees appointed or elected as herein provided and shall serve a four(4) year term unless he
sooner vacates the office. Each resident trustee shall serve as trustee for a period of four (4)
years, unless he sooner vacates the office or is sooner replaced by the Atlantic Beach City
Commission at whose pleasure he shall serve. Each member trustee shall serve as trustee for a
period of four(4) years, unless he sooner leaves the employment of the city as a Police Officer or
otherwise vacates his office as trustee, whereupon a successor shall be chosen in the same
manner as the departing trustee. Each trustee may succeed himself in office. DROP participants
can be elected as but not vote for elected trustees. The board shall establish and administer the
nominating and election procedures for each election. The board shall meet at least quarterly
each year. The board shall be a legal entity with, in addition to other powers and responsibilities
contained herein,the power to bring and defend lawsuits of every kind, nature, and description.
(b) The trustees shall, by a majority vote, elect a chairman, vice-chairman and a
secretary. The secretary of the board shall keep a complete minute book of the actions,
proceedings, or hearings of the board. The trustees shall not receive any compensation as such,
but may receive expenses and per diem as provided by law.
(c) Each trustee shall be entitled to one (1) vote on the board. Three (3) affirmative
votes shall be necessary for any decision by the trustees at any meeting of the board. A trustee
shall abstain from voting as the result of a conflict of interest and shall comply with the
provisions of F.S. §112.3143.
(d) The board shall engage such actuarial, accounting, legal, and other services as
shall be required to transact the business of the system. The compensation of all persons
engaged by the board and all other expenses of the board necessary for the operation of the
system shall be paid from the fund at such rates and in such amounts as the board shall agree. In
the event the board chooses to use the city's legal counsel, actuary or other professional,
technical or other advisors, it shall do so only under terms and conditions acceptable to the
board.
Ordinance No. 58-13-36 Page 6 of 47
(e) The duties and responsibilities of the board shall include, but not necessarily be
limited to,the following:
(1) To construe the provisions of the system and determine all questions arising
thereunder.
(2) To determine all questions relating to eligibility and membership.
(3) To determine and certify the amount of all retirement allowances or other benefits
hereunder.
(4) To establish uniform rules and procedures to be followed for administrative
purposes,benefit applications and all matters required to administer the system.
(5) To distribute to members, at regular intervals, information concerning the system.
(6) To receive and process all applications for benefits.
(7) To authorize all payments whatsoever from the fund, and to notify the disbursing
agent, in writing, of approved benefit payments and other expenditures arising
through operation of the system and fund.
(8) To have performed actuarial studies and valuations, at least as often as required
by law, and make recommendations regarding any and all changes in the
provisions of the system.
(9) To perform such other duties as are required to prudently administer the system.
Sec. 2-303. Finances and fund management.
Establishment and operation offund.
(a) As part of the system, there is hereby established the fund, into which shall be
deposited all of the contributions and assets whatsoever attributable to the system, including the
assets of the prior Police Officers' Retirement System.
(b) The actual custody and supervision of the fund (and assets thereof) shall be vested
in the board. Payment of benefits and disbursements from the fund shall be made by the
disbursing agent but only upon written authorization from the board.
(c) All funds of the Police Officers' Retirement System may be deposited by the
board with the Finance Director of the city, acting in a ministerial capacity only, who shall be
liable in the same manner and to the same extent as he is liable for the safekeeping of funds for
the city. However, any funds so deposited with the Finance Director of the city shall be kept in a
separate fund by the Finance Director or clearly identified as such funds of the Police Officers'
Retirement System. In lieu thereof, the board shall deposit the funds of the Police Officers'
Retirement System in a qualified public depository as defined in F.S. § 280.02, which depository
with regard to such funds shall conform to and be bound by all of the provisions of F.S. ch. 280.
In order to fulfill its investment responsibilities as set forth herein, the board may retain the
services of a custodian bank, an investment advisor registered under the Investment Advisors Act
of 1940 or otherwise exempt from such required registration, an insurance company, or a
combination of these, for the purposes of investment decisions and management. Such
investment manager shall have discretion, subject to any guidelines as prescribed by the board, in
the investment of all fund assets.
Ordinance No. 58-13-36 Page 7 of 47
(d) All funds and securities of the system may be commingled in the fund, provided
that accurate records are maintained at all times reflecting the financial composition of the fund,
including accurate current accounts and entries as regards the following:
(1) Current amounts of accumulated contributions of members on both an individual
and aggregate account basis, and
(2) Receipts and disbursements, and
(3) Benefit payments, and
(4) Current amounts clearly reflecting all monies, funds and assets whatsoever
attributable to contributions and deposits from the city, and
(5) All interest, dividends and gains(or losses)whatsoever, and
(6) Such other entries as may be properly required so as to reflect a clear and
complete financial report of the fund.
(e) An audit shall be performed annually by a certified public accountant for the most
recent fiscal year of the system showing a detailed listing of assets and a statement of all income
and disbursements during the year. Such income and disbursements must be reconciled with the
assets at the beginning and end of the year. Such report shall reflect a complete evaluation of
assets on both a cost and market basis, as well as other items normally included in a certified
audit.
(f) The board shall have the following investment powers and authority:
(1) The board shall be vested with full legal title to said fund, subject, however, and
in any event to the authority and power of the Atlantic Beach City Commission to
amend or terminate this fund, provided that no amendment or fund termination
shall ever result in the use of any assets of this fund except for the payment of
regular expenses and benefits under this system, except as otherwise provided
herein. All contributions from time to time paid into the fund, and the income
thereof, without distinction between principal and income, shall be held and
administered by the board or its agent in the fund and the board shall not be
required to segregate or invest separately any portion of the fund.
(2) All monies paid into or held in the fund shall be invested and reinvested by the
board and the investment of all or any part of such funds shall be subject to the
following:
(1) Notwithstanding any limitation provided for in Chapter 185, Florida
Statutes to the contrary (unless such limitation may not be amended by
local ordinance) or any limitation in prior city ordinances to the contrary,
all monies paid into or held in the fund may be invested and reinvested in
such securities, investment vehicles or property wherever situated and of
whatever kind, as shall be approved by the board, including but not limited
to common or preferred stocks, bonds, and other evidences of
indebtedness or ownership. In no event, however, shall more than twenty-
five percent of the assets of the fund at market value be invested in foreign
securities.
(2) The board shall develop and adopt a written investment policy statement
setting forth permissible types of investments, goals and objectives of
investments and setting quality and quantity limitations on investments in
Ordinance No. 58-13-36 Page 8 of 47
accordance with the recommendations of its investment consultants. The
investment policy statement shall be reviewed by the board at least
annually.
(3) In addition, the board may, upon recommendation by the board's
investment consultant, make investments in group trusts meeting the
requirements of Internal Revenue Service Revenue Ruling 81-100 and
Revenue Ruling 2011-1 or successor rulings or guidance of similar import,
and operated or maintained exclusively for the commingling and
collective investment of monies, provided that the funds in the group trust
consist exclusively of trust assets held under plans qualified under section
401(a) of the code, individual retirement accounts that are exempt under
section 408(e) of the code, eligible governmental plans that meet the
requirements of section 457(b) of the code, and governmental plans under
401(a)(24) of the code. For this purpose, a trust includes a custodial
account that is treated as a trust under section 401(f) or under section
457(g)(3) of the code. While any portion of the assets of the fund are
invested in such a group trust, such group trust is itself adopted as a part of
the system or plan.
(3) At least once every three (3) years, and more often as determined by the board,
the board shall retain a professionally qualified independent consultant, as defined
in F.S. §185.06, to evaluate the performance of all current investment managers
and make recommendations regarding the retention of all such investment
managers. These recommendations shall be considered by the board at its next
regularly scheduled meeting.
(4) The board may retain in cash and keep unproductive of income such amount of
the fund as it may deem advisable, having regard for the cash requirements of the
system.
(5) Neither the board nor any trustee shall be liable for the making, retention or sale
of any investment or reinvestment made as herein provided, nor for any loss or
diminishment of the fund, except that due to his or its own negligence, willful
misconduct or lack of good faith.
(6) The board may cause any investment in securities held by it to be registered in or
transferred into its name as trustee or into the name of such nominee as it may
direct, or it may retain them unregistered and in form permitting transferability,
but the books and records shall at all times show that all investments are part of
the fund.
(7) The board is empowered, but is not required, to vote upon any stocks, bonds, or
securities of any corporation, association, or trust and to give general or specific
proxies or powers of attorney with or without power of substitution; to participate
in mergers, reorganizations, recapitalizations, consolidations, and similar transac-
tions with respect to such securities; to deposit such stock or other securities in
any voting trust or any protective or like committee with the trustees or with
depositories designated thereby; to amortize or fail to amortize any part or all of
the premium or discount resulting from the acquisition or disposition of assets;
and generally to exercise any of the powers of an owner with respect to stocks,
bonds, or other investments comprising the fund which it may deem to be to the
best interest of the fund to exercise.
Ordinance No. 58-13-36 Page 9 of 47
(8) The board shall not be required to make any inventory or appraisal or report to
any court, nor to secure any order of court for the exercise of any power contained
herein.
(9) Where any action which the board is required to take or any duty or function
which it is required to perform either under the terms herein or under the general
law applicable to it as trustee under this ordinance, can reasonably be taken or
performed only after receipt by it from a member, the city, or any other entity, of
specific information, certification, direction or instructions, the board shall be free
of liability in failing to take such action or perform such duty or function until
such information, certification, direction or instruction has been received by it.
(10) Any overpayments or underpayments from the fund to a member, retiree or
beneficiary caused by errors of computation shall be adjusted with interest at a
rate per annum approved by the board in such a manner that the actuarial
equivalent of the benefit to which the member, retiree or beneficiary was correctly
entitled, shall be paid. Overpayments shall be charged against payments next
succeeding the correction or collected in another manner if prudent. Underpaym-
ents shall be made up from the fund in a prudent manner. Overpayments to a
deceased retiree, beneficiary or joint annuitant of less than one monthly payment
resulting from the death of the retiree, beneficiary or joint annuitant shall not be
recouped.
(11) The board shall sustain no liability whatsoever for the sufficiency of the fund to
meet the payments and benefits provided for herein.
(12) In any application to or proceeding or action in the courts, only the board shall be
a necessary party, and no member or other person having an interest in the fund
shall be entitled to any notice or service of process. Any judgment entered in
such a proceeding or action shall be conclusive upon all persons.
(13) Any of the foregoing powers and functions reposed in the board may be
performed or carried out by the board through duly authorized agents, provided
that the board at all times maintains continuous supervision over the acts of any
such agent;provided further,that legal title to said fund shall always remain in the
board.
Sec. 2-304. Contributions.
(a) Member contributions.
(1) Amount. Each member of the system shall be required to make regular
contributions to the fund in the amount of six percent (6.0%) of his salary
beginning with the first full pay period following the effective date of the
ordinance amending this subsection, seven percent (7.0%) of his salary effective
October 1, 2013, and eight percent (8.0%) of his salary effective October 1, 2014.
Member contributions withheld by the city on behalf of the member shall be
deposited with the board immediately after each pay period. The contributions
made by each member to the fund shall be designated as employer contributions
pursuant to §414(h) of the IRC. Such designation is contingent upon the
contributions being excluded from the members' gross income for Federal Income
Tax purposes. For all other purposes of the system, such contributions shall be
considered to be member contributions.
(2) Method. Such contributions shall be made by payroll deduction.
Ordinance No. 58-13-36 Page 10 of 47
(b) State contributions. Any monies received or receivable by reason of laws of the
State of Florida, for the express purpose of funding and paying for retirement benefits for Police
Officers of the city shall be deposited in the fund comprising part of this system immediately and
under no circumstances more than five (5)days after receipt by the city.
(c) City contributions. So long as this system is in effect, the city shall make at least
quarterly contributions to the fund in an amount equal to the required city contribution as shown
by the applicable actuarial valuation of the system.
(d) Other. Private donations, gifts and contributions may be deposited to the fund,
but such deposits must be accounted for separately and kept on a segregated bookkeeping basis.
funds arising from these sources may be used only for additional benefits for members, as
determined by the board, and may not be used to reduce what would have otherwise been
required city contributions.
Sec.2-305. Benefit amounts and eligibility.
(a) Normal retirement date. For members hired before January 1, 2013, a member's
normal retirement date shall be the first day of the month coincident with, or next following the
earlier of the attainment of age fifty (50) and the completion of twenty (20) years of credited
service, the attainment of age fifty-five (55) and the completion of ten (10) years of credited
service, the completion of twenty-five (25) years of credited service regardless of age, or the
attainment of age sixty (60) and the completion of five (5) years of credited service. For
members hired on or after January 1, 2013, a member's normal retirement date shall be the first
day of the month coincident with, or next following the earlier of the attainment of age fifty-five
(55) and the completion of ten (10) years of credited service, or the attainment of age fifty-two
(52) and the completion of twenty-five (25) years of credited service. A member may retire on
his normal retirement date or on the first day of any month thereafter, and each member shall
become one hundred (100) percent vested in his accrued benefit on the member's normal
retirement date. Normal retirement under the system is retirement from employment with the
city on or after the normal retirement date.
(b) Normal retirement benefit. A member retiring hereunder on or after his normal
retirement date shall receive a monthly benefit which shall commence on the first day of the
month coincident with or next following his retirement and be continued thereafter during
member's lifetime, ceasing upon death, but with one hundred twenty (120) monthly payments
guaranteed in any event. For members hired before January 1, 2013, the monthly retirement
benefit shall equal three percent (3.0%) of average final compensation for each year of credited
service. For members hired on or after January 1, 2013, the monthly retirement benefit shall
equal two percent(2.0%) of average final compensation for each year of credited service.
(c) Early retirement date. A member may retire on his early retirement date which
shall be the first day of any month coincident with or next following the attainment of age fifty
(50) and the completion of ten (10) years of credited service. Early retirement under the system
is retirement from employment with the city on or after the early retirement date and prior to the
normal retirement date.
(d) Early retirement benefit. A member retiring hereunder on his early retirement
date may receive either a deferred or an immediate monthly retirement benefit payable in the
same form as for normal retirement as follows:
(1) A deferred monthly retirement benefit which shall commence on what would
have been his normal retirement date, determined based upon his actual years of
credited service and shall be continued on the first day of each month thereafter.
Ordinance No. 58-13-36 Page 11 of 47
The amount of each such deferred monthly retirement benefit shall be determined
in the same manner as for retirement on his normal retirement date, determined
based upon his actual years of credited service, except that credited service and
average final compensation shall be determined as of his early retirement date; or
(2) An immediate monthly retirement benefit which shall commence on his early
retirement date and shall be continued on the first day of each month thereafter.
The benefit payable shall be as determined in paragraph (1) above, reduced by
three percent (3%) for each year by which the commencement of benefits
precedes the date which would have been the member's normal retirement date
determined based upon his actual years of credited service.
(e) Required distribution date. The member's benefit under this section must begin to
be distributed to the member no 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'/2) or the calendar year
in which the member terminates employment with the city.
Sec. 2-306. Pre-retirement death.
(a) Prior to eligibility for retirement. The beneficiary of a deceased member who
was not receiving monthly benefits or who was not yet vested as provided for in section 2-308 or
eligible for early or normal retirement shall receive a refund of one-hundred percent (100%) of
the member's accumulated contributions.
(b) Deceased members vested or eligible for retirement. In the event a vested
member dies prior to retirement, a pre-retirement death benefit shall be paid as follows:
(1) Deceased Members with a Designated Beneficiary who is not a Surviving Spouse
or Child. This subsection applies only when the member's spouse and/or children
is/are not the beneficiary or beneficiaries, in which case subsection (2) below
applies, but there is a surviving designated beneficiary. The designated
beneficiary shall be entitled to a benefit as follows:
a. A pension benefit computed according to section 2-305(b)and calculated
as if the member had selected the100% joint and survivor option
computed in accordance with section 2-309(a)(2), and had retired the day
preceding his death, notwithstanding that the member may not have
satisfied the conditions for retirement.
b. A beneficiary may not elect an optional form of benefit, however the
board may elect to make a lump sum payment pursuant to section 2-309,
subsection(g).
c. If a surviving beneficiary commences receiving a benefit under paragraph
(1) above, but dies before all payments are made, unless otherwise
provided for herein, the actuarial value of the remaining benefit will be
paid to the surviving beneficiary's estate by December 31 of the calendar
year of the beneficiary's death in a lump sum.
d. The Uniform Lifetime Table in Treasury Regulations § 1.401(a)(9)-9 shall
determine the payment period for the calendar year benefits commence, if
necessary to satisfy the regulations.
(2) Deceased Members with Surviving Spouse and/or Children. This subsection (2)
applies only when the member's spouse and/or child(ren) are the designated
beneficiary or beneficiaries or the deceased member failed to designate a
beneficiary, and leaves a surviving spouse and/or child(ren). Under these
Ordinance No. 58-13-36 Page 12 of 47
circumstances, the surviving spouse and/or child(ren) shall be entitled to a benefit
as follows:
a. If the deceased member was not vested in accordance with section 2-308
at the time of his death, his surviving spouse or his child or children
(equally), if he leaves no surviving spouse, shall receive a benefit equal to
the benefit provided for in(a) above.
b. If the deceased member was vested in accordance with section 2-308 at
the time of his death, his surviving spouse and/or child(ren) shall receive a
benefit as follows:
1. The surviving spouse shall be paid a pension equal to the greater of
the benefit provided for in(a) above or seventy-five (75)percent of
the amount of the life only pension option computed in accordance
with section 2-309(a)(1), based on the deceased member's final
average compensation and credited service at the time of death. A
surviving spouse's pension shall terminate upon death. The
surviving spouse of any deceased member shall not lose the
survivor retirement benefits if the spouse remarries.
2. 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 percentage of the retiree's life only pension benefit
computed in accordance with section 2-309(a)(1), based on the
deceased member's final average compensation and credited
service at the time of death. The percent shall be zero (0) percent
during periods that a pension is being paid to the surviving spouse
in accordance with the provisions of paragraph 1. and fifty (50)
percent during periods a pension is not being paid to the surviving
spouse. A surviving child's pension shall terminate upon
attainment of age nineteen(19) years or, if over nineteen(19) years
but less than twenty-three (23) years, when no longer being
enrolled as a full-time student in an educational institution, or upon
marriage or death, and the pension of each remaining eligible child
shall be recomputed.
c. Notwithstanding anything contained in this section to the contrary, in any
event, distributions to the spouse beneficiary will begin by December 31
of the calendar year immediately following the calendar year in which the
member died, or by a date selected pursuant to the above provisions in this
section that must be on or before December 31 of the calendar year in
which the member would have attained 701/2.
(3) Failure to Designate a Beneficiary, No Surviving Beneficiary and No Surviving
Spouse or Children. If a deceased vested member or retiree failed to name a
beneficiary in the manner prescribed in Section 2-310, or if the beneficiary (or
beneficiaries) named by a deceased member or retiree predeceases the member or
retiree and the member or retiree leaves no surviving spouse and/or child(ren), the
death benefit which shall be payable as a lump sum to the estate of member or
retiree shall be the actuarial equivalent of the member's accrued benefit as of the
date of death and the the member's entire interest must be distributed to the estate
Ordinance No. 58-13-36 Page 13 of 47
by December 31 of the calendar year containing the fifth anniversary of the
member's death.
Sec. 2-307. Disability.
(a) Disability benefits in-line of duty. Any member who shall become totally and per-
manently disabled to the extent that he is unable, by reason of a medically determinable physical
or mental impairment, to render useful and efficient service as a Police Officer, which disability
was directly caused by the performance of his duty as a Police Officer, shall, upon establishing
the same to the satisfaction of the board, be entitled to a monthly pension equal to three percent
(3.0%) of his average final compensation multiplied by the total years of credited service for
members hired before January 1, 2013, and two percent (2.0%) of his average final
compensation multiplied by the total years of credited service for members hired on or after
January 1, 2013, but in any event the minimum amount paid to the member shall be forty-two
percent (42%) of the average final compensation of the member. Terminated persons, either
vested or non-vested, are not eligible for disability benefits, except that those terminated by the
city for medical reasons may apply for a disability within thirty (30) days after termination.
(b) In-line of duty presumptions.
(1) Presumption. Any condition or impairment of health of a member caused by
hypertension or heart disease shall be presumed to have been suffered in line of
duty unless the contrary is shown by competent evidence, provided that such
member shall have successfully passed a physical examination upon entering into
such service, including cardiogram, which examination failed to reveal any
evidence of such condition; and provided further, that such presumption shall not
apply to benefits payable or granted in a policy of life insurance or disability
insurance.
(2) Additional presumption. The presumption provided for in this paragraph (2) shall
apply only to those conditions described in this paragraph (2) that are diagnosed
on or after January 1, 1996.
a. Definitions. As used in this subsection (b)(2), the following definitions
apply:
1. "Body fluids" means blood and body fluids containing visible
blood and other body fluids to which universal precautions for
prevention of occupational transmission of blood-borne pathogens,
as established by the Centers for Disease Control, apply. For
purposes of potential transmission of meningococcal meningitis or
tuberculosis, the term "body fluids" includes respiratory, salivary,
and sinus fluids, including droplets, sputum, and saliva, mucous,
and other fluids through which infectious airborne organisms can
be transmitted between persons.
2. "Emergency rescue or public safety member" means any member
employed full time by the city as a firefighter, paramedic,
emergency medical technician, law enforcement officer, or
correctional officer who, in the course of employment, runs a high
risk of occupational exposure to hepatitis, meningococcal
meningitis, or tuberculosis and who is not employed elsewhere in a
similar capacity. However, the term "emergency rescue or public
safety member" does not include any person employed by a public
Ordinance No. 58-13-36 Page 14 of 47
hospital licensed under F.S. ch. 395, or any person employed by a
subsidiary thereof.
3. "Hepatitis" means hepatitis A, hepatitis B, hepatitis non-A,
hepatitis non-B, hepatitis C, or any other strain of hepatitis
generally recognized by the medical community.
4. "High risk of occupational exposure" means that risk that is
incurred because a person subject to the provisions of this
subsection, in performing the basic duties associated with his
employment:
i. Provides emergency medical treatment in a non-health-care
setting where there is a potential for transfer of body fluids
between persons;
ii. At the site of an accident, fire, or other rescue or public
safety operation, or in an emergency rescue or public safety
vehicle, handles body fluids in or out of containers or
works with or otherwise handles needles or other sharp
instruments exposed to body fluids;
iii. Engages in the pursuit, apprehension, and arrest of law
violators or suspected law violators and, in performing such
duties, may be exposed to body fluids; or
iv. Is responsible for the custody, and physical restraint when
necessary, of prisoners or inmates within a prison, jail, or
other criminal detention facility, while on work detail
outside the facility, or while being transported and, in
performing such duties, may be exposed to body fluids.
5. "Occupational exposure," in the case of hepatitis, meningococcal
meningitis, or tuberculosis, means an exposure that occurs during
the performance of job duties that may place a worker at risk of
infection.
b. Presumption. Any emergency rescue or public safety member who suffers
a condition or impairment of health that is caused by hepatitis, meningo-
coccal meningitis, or tuberculosis, that requires medical treatment, and
that results in total or partial disability or death shall be presumed to have
a disability suffered in the line of duty, unless the contrary is shown by
competent evidence; however, in order to be entitled to the presumption,
the member must, by written affidavit as provided in F.S. §92.50, verify
by written declaration that,to the best of his knowledge and belief:
1. In the case of a medical condition caused by or derived from
hepatitis, he has not:
i. Been exposed, through transfer of bodily fluids, to any
person known to have sickness or medical conditions
derived from hepatitis, outside the scope of his
employment;
ii. Had a transfusion of blood or blood components, other than
a transfusion arising out of an accident or injury happening
Ordinance No. 58-13-36 Page 15 of 47
in connection with his present employment, or received any
blood products for the treatment of a coagulation disorder
since last undergoing medical tests for hepatitis, which tests
failed to indicate the presence of hepatitis;
iii. Engaged in unsafe sexual practices or other high-risk
behavior, as identified by the Centers for Disease Control
or the Surgeon General of the United States or had sexual
relations with a person known to him to have engaged in
such unsafe sexual practices or other high-risk behavior; or
iv. Used intravenous drugs not prescribed by a physician.
2. In the case of meningococcal meningitis, in the ten (10) days
immediately preceding diagnosis he was not exposed, outside the
scope of his employment, to any person known to have menin-
gococcal meningitis or known to be an asymptomatic carrier of the
disease.
3. In the case of tuberculosis, in the period of time since the member's
last negative tuberculosis skin test, he has not been exposed,
outside the scope of his employment, to any person known by him
to have tuberculosis.
c. Immunization. Whenever any standard, medically recognized vaccine or
other form of immunization or prophylaxis exists for the prevention of a
communicable disease for which a presumption is granted under this
section, if medically indicated in the given circumstances pursuant to
immunization policies established by the Advisory Committee on
Immunization Practices of the U.S. Public Health Service, an emergency
rescue or public safety member may be required by the city to undergo the
immunization or prophylaxis unless the member's physician determines in
writing that the immunization or other prophylaxis would pose a
significant risk to the member's health. Absent such written declaration,
failure or refusal by an emergency rescue or public safety member to
undergo such immunization or prophylaxis disqualifies the member from
the benefits of the presumption.
d. Record of exposures. The city shall maintain a record of any known or
reasonably suspected exposure of an emergency rescue or public safety
member in its employ to the disease described in this section and shall
immediately notify the member of such exposure. An emergency rescue
or public safety member shall file an incident or accident report with the
city of each instance of known or suspected occupational exposure to
hepatitis infection,meningococcal meningitis, or tuberculosis.
e. Required medical tests;preemployment physical. In order to be entitled to
the presumption provided by this section:
1. An emergency rescue or public safety member must, prior to
diagnosis, have undergone standard, medically acceptable tests for
evidence of the communicable disease for which the presumption
is sought, or evidence of medical conditions derived therefrom,
which tests fail to indicate the presence of infection. This
paragraph does not apply in the case of meningococcal meningitis.
Ordinance No. 58-13-36 Page 16 of 47
2. On or after June 15, 1995, an emergency rescue or public safety
member may be required to undergo a preemployment physical
examination that tests for and fails to reveal any evidence of
hepatitis or tuberculosis.
(c) Disability benefits not-in-line of duty. Any member with eight and one third (8
1/3) years or more credited service who shall become totally and permanently disabled to the
extent that he is unable, by reason of a medically determinable physical or mental impairment, to
render useful and efficient service as a Police Officer, which disability is not directly caused by
the performance of his duties as a Police Officer shall, upon establishing the same to the
satisfaction of the board, be entitled to a monthly pension equal to three percent (3.0%) of his
average final compensation multiplied by the total years of credited service for members hired
before January 1, 2013, and two percent (2.0%) of his average final compensation multiplied by
the total years of credited service for members hired on or after January 1, 2013, but in any
event, the minimum amount paid to the member shall be twenty-five percent (25%) of the
average final compensation of the member. Terminated persons, either vested or non-vested, are
not eligible for disability benefits, except that those terminated by the city for medical reasons
may apply for a disability within thirty (30)days after termination.
(d) Conditions disqualifying disability benefits. Each member who is claiming
disability benefits shall establish, to the satisfaction of the board, that such disability was not
occasioned primarily by:
(1) Excessive or habitual use of any drugs, intoxicants or narcotics.
(2) Injury or disease sustained while willfully and illegally participating in fights,
riots or civil insurrections or while committing a crime.
(3) Injury or disease sustained while serving in any branch of the Armed Forces.
(4) Injury or disease sustained by the member after his employment as a Police
Officer with the city of Atlantic Beach shall have terminated.
(5) Injury or disease sustained by the member while working for anyone other than
the city and arising out of such employment.
(e) Physical examination requirement. A member shall not become eligible for
disability benefits until and unless he undergoes a physical examination by a qualified physician
or physicians and/or surgeon or surgeons, who shall be selected by the board for that purpose.
The board shall not select the member's treating physician or surgeon for this purpose except in
an unusual case where the board determines that it would be reasonable and prudent to do so.
Any retiree receiving disability benefits under provisions of this ordinance may be
required by the board to submit sworn statements of his condition accompanied by a physician's
statement (provided at the retiree's expense) to the board annually and may be required by the
board to undergo additional periodic re-examinations by a qualified physician or physicians
and/or surgeon or surgeons who shall be selected by the board, to determine if such disability has
ceased to exist. If the board finds that the retiree is no longer permanently and totally disabled to
the extent that he is unable to render useful and efficient service as a Police Officer, the board
shall recommend to the city that the retiree be returned to performance of duty as a Police
Officer, and the retiree so returned shall enjoy the same rights that he had at the time he was
placed upon pension. In the event the retiree so ordered to return shall refuse to comply with the
order within thirty(30)days from the issuance thereof, he shall forfeit the right to his pension.
The cost of the physical examination and/or re-examination of the member
claiming or the retiree receiving disability benefits shall be borne by the fund. All other
Ordinance No. 58-13-36 Page 17 of 47
reasonable costs as determined by the board incident to the physical examination, such as, but
not limited to,transportation, meals and hotel accommodations, shall be borne by the fund.
If the retiree recovers from disability and reenters the service of the city as a
Police Officer, his service will be deemed to have been continuous, but the period beginning
with the first month for which he received a disability retirement income payment and ending
with the date he reentered the service of the city will not be considered as credited service for the
purposes of the system.
The board shall have the power and authority to make the final decisions
regarding all disability claims.
(f') Disability payments. The monthly benefit to which a member is entitled in the
event of the member's disability retirement shall be payable on the first day of the first month
after the board determines such entitlement. However, the monthly retirement income shall be
payable retroactively to the date of application or the last day on payroll, whichever is later, and
any retroactive benefit amount shall be paid together with the first payment. The last payment
will be:
(1) If the retiree recovers from the disability, the payment paid preceding the date of
such recovery, or
(2) If the retiree dies without recovering from disability, the payment paid preceding
his death or the 120th monthly payment,whichever is later.
Provided, however, the disability retiree may select, at any time prior to the date
on which benefit payments begin, an optional form of benefit payment as described in section 2-
309, subsection (a)(1) or (a)(2), which shall be the actuarial equivalent of the normal form of
benefit.
Sec.2-308. Vesting.
If a member terminates his employment as a Police Officer, either voluntarily or by
discharge, and is not eligible for any other benefits under this system, the member shall be
entitled to the following:
(1) For members hired before January 1, 2013, if the member has less than five (5)
years credited service upon termination, or for members hired on or after January 1, 2013, if the
member has less than ten (10) years of credited service upon termination, the member shall be
entitled to a refund of his accumulated contributions or the member may leave it deposited with
the fund.
(2) For members hired before January 1, 2013, if the member has five (5) or more
years of credited service upon termination, or for members hired on or after January 1, 2013, if
the member has ten (10) or more years of credited service upon termination,the member shall be
entitled to a monthly retirement benefit, determined in the same manner as for normal or early
retirement and based upon the member's credited service, average final compensation and the
benefit accrual rate as of the date of termination, payable to him commencing at the member's
otherwise normal or early retirement date, determined based upon his actual years of credited
service, provided he does not elect to withdraw his accumulated contributions and provided the
member survives to his otherwise normal or early retirement date. If the member does not
withdraw his accumulated contributions and does not survive to his otherwise normal or early
retirement date, his designated beneficiary shall be entitled to a benefit as provided herein for a
Ordinance No. 58-13-36 Page 18 of 47
deceased member, vested or eligible for retirement under pre-retirement death. The member
may, in lieu of the benefit provided for above in this subsection (2), elect to receive a refund of
his accumulated contributions.
Sec.2-309. Optional forms of benefits.
(a) In lieu of the amount and form of retirement income payable in the event of
normal or early retirement as specified herein, a member, upon written request to the board, may
elect to receive a retirement income or benefit of equivalent actuarial value payable in
accordance with one of the following options:
(1) A retirement income of a monthly amount payable to the retiree for his lifetime
only.
(2) A retirement income of a modified monthly amount, payable to the retiree during
the lifetime of the retiree and following the death of the retiree, one hundred (100)
percent, seventy-five (75) percent, sixty-six and two-thirds (66-2/3) percent or
fifty (50) percent of such monthly amount payable to a joint pensioner for his
lifetime.
Except where the retiree's joint pensioner is his spouse, the payments to the joint
pensioner as a percentage of the payments to the retiree shall not exceed the
applicable percentage provided for in the applicable table in the Treasury
regulations. (See Q&A-2 of 1.401(a)(9)-6)
(3) A retirement income of a modified monthly amount, payable to the retiree during
the lifetime of the retiree and following the death of the retiree, one hundred(100)
percent, seventy-five (75) percent, sixty-six and two-thirds (66-2/3) percent or
fifty (50) percent of such monthly amount payable to a joint pensioner for his
lifetime. However, in the event the person designated by the retiree predeceases
the retiree, the monthly benefit shall increase to the amount payable under the
standard normal form of payment for the remaining lifetime of the retiree. Except
where the retiree's joint pensioner is his spouse, the payments to the joint
pensioner as a percentage of the payments to the retiree shall not exceed the
applicable percentage provided for in the applicable table in the Treasury
regulations. (See Q&A-2 of 1.401(a)(9)-6)
(4) If a member retires prior to the time at which social security benefits are payable,
he may elect to receive an increased retirement benefit until such time as social
security benefits shall be assumed to commence and a reduced benefit thereafter
in order to provide, to as great an extent as possible, a more level retirement
allowance during the entire period of retirement. The amounts payable shall be as
recommended by the actuaries for the system, based upon the social security law
in effect at the time of the member's retirement.
(5) For members who do not participate in the DROP pursuant to Section 2-310.18,
the member may elect a percentage of benefit in a lump sum as follows:
a. Ten percent (10%) of the total actuarial equivalent value of the benefit
paid as a lump sum with the remaining ninety percent (90%) paid under
the normal form or as per(1), (2), (3) or(4)above.
b. Fifteen percent (15%) of the total actuarial equivalent value of the benefit
paid as a lump sum with the remaining eighty-five percent (85%) paid
under the normal form or as per(1), (2), (3) or(4)above.
Ordinance No. 58-13-36 Page 19 of 47
c. Twenty percent (20%) of the total actuarial equivalent value of the benefit
paid as a lump sum with the remaining eighty percent (80%) paid under
the normal form or as per(1), (2), (3) or(4)above.
d. Twenty-five percent (25%) of the total actuarial equivalent value of the
benefit paid as a lump sum with the remaining seventy-five percent (75%)
paid under the normal form or as per(1), (2), (3) or(4) above.
(b) The member, upon electing any option of this section, will designate the joint
pensioner (subsection (a)(2) or (a)(3) above) or beneficiary (or beneficiaries) to receive the
benefit, if any,payable under the system in the event of member's death, and will have the power
to change such designation from time to time. Such designation will name a joint pensioner or
one or more primary beneficiaries where applicable. A member may change his beneficiary at
any time. If a member has elected an option with a joint pensioner and member's retirement
income benefits have commenced, member may thereafter change his designated beneficiary at
any time, but may only change his joint pensioner twice. Subject to the restriction in the
previous sentence, a member may substitute a new joint pensioner for a deceased joint pensioner.
In the absence of proof of good health of the joint pensioner being replaced, the actuary will
assume that the joint pensioner has deceased for purposes of calculating the new payment.
(c) The consent of a member's or retiree's joint pensioner or beneficiary to any such
change shall not be required. The rights of all previously-designated beneficiaries to receive
benefits under the system shall thereupon cease.
(d) Upon change of a retiree's joint pensioner in accordance with this section, the
amount of the retirement income payable to the retiree shall be actuarially redetermined to take
into account the age of the former joint pensioner, the new joint pensioner and the retiree and to
ensure that the benefit paid is the actuarial equivalent of the present value of the retiree's then-
current benefit at the time of the change. Any such retiree shall pay the actuarial recalculation
expenses. Each request for a change will be made in writing on a form prepared by the board
and on completion will be filed with the board. In the event that no designated beneficiary
survives the retiree, such benefits as are payable in the event of the death of the retiree
subsequent to his retirement shall be paid as provided in section 2-310.
(e) Retirement income payments shall be made under the option elected in
accordance with the provisions of this section and shall be subject to the following limitations:
(1) If a member dies prior to his normal retirement date or early retirement date,
whichever first occurs, no retirement benefit will be payable under the option to
any person,but the benefits, if any,will be determined under section 2-306.
(2) If the designated beneficiary (or beneficiaries) or joint pensioner dies before the
member's retirement under the system, the option elected will be canceled
automatically and a retirement income of the normal form and amount will be
payable to the member upon his retirement as if the election had not been made,
unless a new election is made in accordance with the provisions of this section or
a new beneficiary is designated by the member prior to his retirement.
(3) If both the retiree and the beneficiary (or beneficiaries) designated by member or
retiree die before the full payment has been effected under any option providing
for payments for a period certain and life thereafter, made pursuant to the
provisions of subsection (a), the board may, in its discretion, direct that the
Ordinance No. 58-13-36 Page 20 of 47
commuted value of the remaining payments be paid in a lump sum and in
accordance with section 2-310.
(4) If a member continues beyond his normal retirement date pursuant to the
provisions of section 2-305, subsection (a), and dies prior to his actual retirement
and while an option made pursuant to the provisions of this section is in effect,
monthly retirement income payments will be made, or a retirement benefit will be
paid, under the option to a beneficiary (or beneficiaries) designated by the
member in the amount or amounts computed as if the member had retired under
the option on the date on which his death occurred.
(5) The member's benefit under this section must begin to be distributed to the
member no 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'/2) or the
calendar year in which the member terminates employment with the City.
(f) A retiree may not change his retirement option after the date of cashing or
depositing his first retirement check.
(g) Notwithstanding anything herein to the contrary, the board in its discretion, may
elect to make a lump sum payment to a member or a member's beneficiary in the event that the
total commuted value of the monthly income payments to be paid do not exceed one thousand
dollars ($1,000.00). Any such payment made to any person pursuant to the power and discretion
conferred upon the board by the preceding sentence shall operate as a complete discharge of all
obligations under the system with regard to such member and shall not be subject to review by
anyone, but shall be final, binding and conclusive on all persons.
Sec.2-310. Beneficiaries.
(a) Each member or retiree may, on a form provided for that purpose, signed and
filed with the board, designate a beneficiary (or beneficiaries) to receive the benefit, if any,
which may be payable in the event of his death. Each designation may be revoked or changed by
such member or retiree by signing and filing with the board a new designation-of-beneficiary
form. Upon such change, the rights of all previously designated beneficiaries to receive any
benefits under the system shall cease.
(b) If a deceased member or retiree failed to name a beneficiary in the manner
prescribed in subsection(a), or if the beneficiary (or beneficiaries) named by a deceased member
or retiree predeceases the member or retiree, the death benefit, if any, which may be payable
under the system with respect to such deceased member or retiree, shall be paid to the estate of
the member or retiree and the board, in its discretion, may direct that the commuted value of the
remaining monthly income benefits be paid in a lump sum.
(c) Any payment made to any person pursuant to this section shall operate as a
complete discharge of all obligations under the system with regard to the deceased member and
any other persons with rights under the system and shall not be subject to review by anyone but
shall be final,binding and conclusive on all persons ever interested hereunder.
Sec.2-310.1. Claims procedures.
(a) The board shall establish administrative claims procedures to be utilized in
processing written requests ("claims"), on matters which affect the substantial rights of any
person ("claimant"), including members, retirees, beneficiaries, or any person affected by a
decision of the board.
Ordinance No. 58-13-36 Page 21 of 47
(b) The board shall have the power to subpoena and require the attendance of
witnesses and the production of documents for discovery prior to and at any proceedings
provided for in the board's claims procedures. The claimant may request in writing the issuance
of subpoenas by the board. A reasonable fee may be charged for the issuance of any subpoenas
not to exceed the fees set forth in Florida Statutes.
Sec.2-310.2. Reports to division of retirement.
Each year and no later than March 15th, the board shall file an annual report with the
Division of Retirement containing the documents and information required by F.S. § 185.221.
Sec.2-310.3. Roster of retirees.
The secretary of the board shall keep a record of all persons enjoying a pension under the
provisions of this ordinance in which it shall be noted the time when the pension is allowed and
when the same shall cease to be paid. Additionally, the secretary shall keep a record of all
members in such a manner as to show the name, address, date of employment and date of
termination of employment.
Sec. 2-310.4. Maximum pension.
(a) Basic limitation. Notwithstanding any other provisions of this system to the
contrary, the member contributions paid to, and retirement benefits paid from, the system shall
be limited to such extent as may be necessary to conform to the requirements of IRC Section 415
for a qualified retirement plan. Before January 1, 1995, a plan member may not receive an
annual benefit that exceeds the limits specified in IRC Section 415(b), subject to the applicable
adjustments in that section. On and after January 1, 1995, a plan member may not receive an
annual benefit that exceeds the dollar amount specified in IRC Section 415(b)(1)(A) ($160,000),
subject to the applicable adjustments in IRC Section 415(b) and subject to any additional limits
that may be specified in this System. For purposes of this section, "limitation year" shall be the
calendar year.
(b) Adjustments to basic limitation for form of benefit.
(1) For a benefit paid in a form to which section 417(e)(3) of the code does not apply
(generally, a monthly benefit), the actuarially equivalent straight life annuity
benefit that is the greater of:
a. The annual amount of the straight life annuity (if any) payable to the
member under the plan commencing at the same annuity starting date as
the form of benefit to the member, or
b. The annual amount of the straight life annuity commencing at the same
annuity starting date that has the same actuarial present value as the form
of benefit payable to the member, computed using a 5 percent interest
assumption (or the applicable statutory interest assumption) and (i) for
years prior to January 1, 2009, the applicable mortality tables described in
Treasury Regulation Section 1.417(e)-1(d)(2) (Revenue Ruling 2001-62 or
any subsequent Revenue Ruling modifying the applicable provisions of
Revenue Rulings 2001-62), and(ii) for years after December 31, 2008,the
applicable mortality tables described in section 417(e)(3)(B) of the code
(Notice 2008-85 or any subsequent Internal Revenue Service guidance
implementing section 417(e)(3)(B)of the code); or
Ordinance No. 58-13-36 Page 22 of 47
(2) For a benefit paid in a form to which section 417(e)(3) of the code applies
(generally, a lump sum benefit), the actuarially equivalent straight life annuity
benefit that is the greatest of:
a. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular
form of benefit payable, computed using the interest rate and mortality
table, or tabular factor, specified in the plan for actuarial experience;
b. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular
form of benefit payable, computed using a 5.5 percent interest assumption
(or the applicable statutory interest assumption) and (i) for years prior to
January 1, 2009, the applicable mortality tables for the distribution under
Treasury Regulation Section 1.417(e)-1(d)(2) (the mortality table specified
in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying
the applicable provisions of Revenue Ruling 2001-62), and (ii) for years
after December 31, 2008, the applicable mortality tables described in
section 417(e)(3)(B) of the code (Notice 2008-85 or any subsequent
Internal Revenue Service guidance implementing section 417(e)(3)(B) of
the code); or
c. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular
form of benefit payable (computed using the applicable interest rate for
the distribution under Treasury Regulation Section 1.417(e)-1(d)(3) (the
30-year Treasury rate (prior to January 1, 2007, using the rate in effect for
the month prior to retirement, and on and after January 1, 2007, using the
rate in effect for the first day of the plan year with a one-year stabilization
period)) and (i) for years prior to January 1, 2009, the applicable mortality
tables for the distribution under Treasury Regulation Section 1.417(e)-
1(d)(2) (the mortality table specified in Revenue Ruling 2001-62 or any
subsequent Revenue Ruling modifying the applicable provisions of
Revenue Ruling 2001-62), and (ii) for years after December 31, 2008, the
applicable mortality tables described in section 417(e)(3)(B) of the code
(Notice 2008-85 or any subsequent Internal Revenue Service guidance
implementing section 417(e)(3)(B) of the code), divided by 1.05.
(c) Benefits not taken into account. For purposes of this Section, the following
benefits shall not be taken into account in applying these limits:
(1) Any ancillary benefit which is not directly related to retirement income benefits;
(2) Any other benefit not required under §415(b)(2) of the IRC and Regulations
thereunder to be taken into account for purposes of the limitation of IRC Section
415(b)(1).
(d) COLA effect. Effective on and after January 1, 2003, for purposes of applying the
limits under IRC Section 415(b)(the "Limit"),the following will apply:
Ordinance No. 58-13-36 Page 23 of 47
(1) A member's applicable limit will be applied to the member's annual benefit in the
member's first calendar year of benefit payments without regard to any automatic
cost of living adjustments;
(2) thereafter, in any subsequent calendar year, a member's annual benefit, including
any automatic cost of living increases, shall be tested under the then applicable
benefit limit including any adjustment to the IRC Section 415(b)(1)(A) dollar
limit under IRC Section 415(d),and the regulations thereunder; but
(3) in no event shall a member's benefit payable under the system in any calendar
year be greater than the limit applicable at the annuity starting date, as increased
in subsequent years pursuant to IRC Section 415(d) and the regulations
thereunder.
Unless otherwise specified in the system, for purposes of applying the limits
under IRC Section 415(b), a Member's applicable limit will be applied taking into consideration
cost of living increases as required by Section 415(b) of the IRC and applicable Treasury
Regulations.
(e) Other adjustments in limitations.
(1) In the event the member's retirement benefits become payable before age sixty-
two (62), the limit prescribed by this section shall be reduced in accordance with
regulations issued by the Secretary of the Treasury pursuant to the provisions of
IRC Section 415(b) of the IRC, so that such limit(as so reduced) equals an annual
straight life benefit (when such retirement income benefit begins) which is
equivalent to a one hundred sixty thousand dollar ($160,000) annual benefit
beginning at age sixty-two(62).
(2) In the event the member's benefit is based on at least fifteen(15) years of credited
service as a full-time employee of the police department of the City, the
adjustments provided for in(e)(1) above shall not apply.
(3) The reductions provided for in (e)(1) above shall not be applicable to disability
benefits pursuant to Sec. 2-307, or pre-retirement death benefits paid pursuant to
Sec. 2-306.
(4) In the event the member's retirement benefit becomes payable after age sixty-five
(65), for purposes of determining whether this benefit meets the limit set forth in
subsection (a) herein, such benefit shall be adjusted so that it is actuarially
equivalent to the benefit beginning at age sixty-five (65). This adjustment shall
be made in accordance with regulations promulgated by the Secretary of the
Treasury or his delegate.
(f) Less than ten (10) years of participation or service. The maximum retirement
benefits payable under this section to any member who has completed less than ten (10) years of
credited service with the City shall be the amount determined under subsection(a) of this section
multiplied by a fraction, the numerator of which is the number of the member's years of credited
service and the denominator of which is ten (10). The reduction provided by this subsection
cannot reduce the maximum benefit below 10% of the limit determined without regard to this
subsection. The reduction provided for in this subsection shall not be applicable to pre-
retirement disability benefits paid pursuant to Sec. 2-307, or pre-retirement death benefits paid
pursuant to Sec. 2-306.
Ordinance No. 58-13-36 Page 24 of 47
(g) Participation in other defined benefit plans. The limit of this section with respect
to any member who at any time has been a member in any other defined benefit plan as defined
in IRC Section 414(j) maintained by the City shall apply as if the total benefits payable under all
City defined benefit plans in which the member has been a member were payable from one plan.
(h) Ten thousand dollar ($10,000) limit; less than ten years of service.
Notwithstanding anything in this section 2-310.4, the retirement benefit payable with respect to a
member shall be deemed not to exceed the limit set forth in this subsection (h) of section 2-
310.4if the benefits payable, with respect to such member under this system and under all other
qualified defined benefit pension plans to which the City contributes, do not exceed ten thousand
dollars ($10,000) for the applicable plan year and for any prior plan year and the City has not any
time maintained a qualified defined contribution plan in which the member participated;
provided, however, that if the member has completed less than ten (10) years of credited service
with the City, the limit under this subsection(h) of section 2-310.4 shall be a reduced limit equal
to ten thousand dollars ($10,000) multiplied by a fraction, the numerator of which is the number
of the member's years of credited service and the denominator of which is ten(10).
(i) Reduction of benefits. Reduction of benefits and/or contributions to all plans,
where required, shall be accomplished by first reducing the member's benefit under any defined
benefit plans in which member participated, such reduction to be made first with respect to the
plan in which member most recently accrued benefits and thereafter in such priority as shall be
determined by the board and the plan administrator of such other plans, and next, by reducing or
allocating excess forfeitures for defined contribution plans in which the member participated,
such reduction to be made first with respect to the plan in which member most recently accrued
benefits and thereafter in such priority as shall be established by the board and the plan
administrator for such other plans provided, however, that necessary reductions may be made in
a different manner and priority pursuant to the agreement of the board and the plan administrator
of all other plans covering such member.
(j) Service credit purchase limits.
(1) Effective for permissive service credit contributions made in limitation years
beginning after December 31, 1997, if a member makes one or more contributions
to purchase permissive service credit under the system, as allowed in Sections 2-
310.15 and 2-310.16, then the requirements of this section will be treated as met
only if:
a. the requirements of IRC Section 415(b) are met, determined by treating
the accrued benefit derived from all such contributions as an annual
benefit for purposes of IRC Section 415(b), or
b. the requirements of IRC Section 415(c) are met, determined by treating all
such contributions as annual additions for purposes of IRC Section 415(c).
c. For purposes of applying subparagraph(j)(1)a.., the System will not fail to
meet the reduced limit under IRC Section 415(b)(2)(C) solely by reason of
this subparagraph c., and for purposes of applying subparagraph (j)(1)b.
the System will not fail to meet the percentage limitation under Section
415(c)(1)(B) of the IRC solely by reason of this subparagraph c.
(2) For purposes of this subsection the term "permissive service credit" means service
credit
Ordinance No. 58-13-36 Page 25 of 47
a. recognized by the system for purposes of calculating a member's benefit
under the plan,
b. which such member has not received under the plan, and
c. which such member may receive only by making a voluntary additional
contribution, in an amount determined under the system, which does not
exceed the amount necessary to fund the benefit attributable to such
service credit.
Effective for permissive service credit contributions made in limitation
years beginning after December 31, 1997, such term may, if otherwise
provided by the system, include service credit for periods for which there
is no performance of service, and, notwithstanding clause (j)(2)b., may
include service credited in order to provide an increased benefit for service
credit which a member is receiving under the system.
(3) For purposes of applying the limits in this subsection (j), only and for no other
purpose, the definition of compensation where applicable will be compensation
actually paid or made available during a calendar year, except as noted below and
as permitted by Treasury Regulations Section 1.415(c)-2, or successor
regulations. Unless another definition of compensation that is permitted by
Treasury Regulations Section 1.415(c)-2, or successor regulation, is specified by
the system, compensation will be defined as wages within the meaning of IRC
Section 3401(a) and all other payments of compensation to an employee by an
employer for which the employer is required to furnish the employee a written
statement under IRC Sections 6041(d), 6051(a)(3) and 6052 and will be
determined without regard to any rules under IRC Section 3401(a) that limit the
remuneration included in wages based on the nature or location of the
employment or the services performed (such as the exception for agricultural
labor in IRC Section 3401(a)(2).
a. However, for calendar years beginning after December 31, 1997,
compensation will also include amounts that would otherwise be included
in compensation but for an election under IRC Sections 125(a), 402(e)(3),
402(h)(1)(B), 402(k), or 457(b). For calendar years beginning after
December 31, 2000, compensation will also include any elective amounts
that are not includible in the gross income of the employee by reason of
IRC Section 132(f)(4).
b. For limitation years beginning on and after January 1, 2007, compensation
for the calendar year will also include compensation paid by the later of
2'/2 months after an employee's severance from employment or the end of
the calendar year that includes the date of the employee's severance from
employment if:
1. the payment is regular compensation for services during the
employee's regular working hours, or compensation for services
outside the employee's regular working hours (such as overtime or
shift differential), commissions, bonuses or other similar payments,
and, absent a severance from employment, the payments would
Ordinance No. 58-13-36 Page 26 of 47
have been paid to the employee while the employee continued in
employment with the employer; or
2. the payment is for unused accrued bona fide sick, vacation or other
leave that the employee would have been able to use if
employment had continued.
c. Back pay, within the meaning of Treasury Regulations Section 1.415(c)-
2(g)(8), shall be treated as compensation for the limitation year to which
the back pay relates to the extent the back pay represents wages and
compensation that would otherwise be included under this definition.
(4) Notwithstanding any other provision of law to the contrary,the board may modify
a request by a member to make a contribution to the system if the amount of the
contribution would exceed the limits provided in IRC Section 415 by using the
following methods:
a. If the law requires a lump sum payment for the purchase of service credit,
the board may establish a periodic payment deduction plan for the member
to avoid a contribution in excess of the limits under IRC Sections 415(c)
or 415(n).
b. If payment pursuant to subparagraph (j)(4)a. will not avoid a contribution
in excess of the limits imposed by IRC Section 415(c), the board may
either reduce the member's contribution to an amount within the limits of
that section or refuse the member's contribution.
(5) If the annual additions for any member for a plan year exceed the limitation under
section 415(c) of the code, the excess annual addition will be corrected as
permitted under the Employee Plans Compliance Resolution System (or similar
IRS correction program).
(6) For limitation years beginning on or after January 1, 2009, a member's
compensation for purposes of this subsection (j) shall not exceed the annual limit
under section 401(a)(17)of the code.
(k) Additional limitation on pension benefits. Notwithstanding anything herein to the
contrary:
(1) The normal retirement benefit or pension payable to a retiree who becomes a
member of the system and who has not previously participated in such system, on
or after January 1, 1980, shall not exceed one hundred percent (100%) of his
average final 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.
(2) No member of the system shall be allowed to receive a retirement benefit or
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 benefit
or pension from a different employer's retirement system or plan. This restriction
does not apply to social security benefits or federal benefits under Chapter 67,
Title 10,U.S. Code.
Ordinance No. 58-13-36 Page 27 of 47
Sec. 2-310.5. Minimum Distribution of benefits.
(a) General rules.
(1) Effective date. Effective as of January 1, 1989, the plan will pay all benefits in
accordance with a good faith interpretation of the requirements of IRC Section
401(a)(9) and the regulations in effect under that section, as applicable to a
governmental plan within the meaning of IRC Section 414(d). Effective on and
after January 1, 2003, the plan is also subject to the specific provisions contained
in this Section. The provisions of this section will apply for purposes of
determining required minimum distributions for calendar years beginning with the
2003 calendar year.
(2) Precedence. The requirements of this section will take precedence over any
inconsistent provisions of the plan.
(3) TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this
section other than this subsection (a)(3), distributions may be made under a
designation made before January 1, 1984, in accordance with Section 242(b)(2) of
the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the
plan that related to Section 242(b)(2)of TEFRA.
(b) Time and manner of distribution.
(1) Required beginning date. The member's entire interest will be distributed, or
begin to be distributed, to the member no later than the Member's required
beginning date which shall not be 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 terminates employment
with the city.
(2) Death of member before distributions begin. If the member dies before
distributions begin, the member's entire interest will be distributed, or begin to be
distributed no later than as follows:
a. If the member's surviving spouse is the member's sole designated
beneficiary, then distributions to the surviving spouse will begin by
December 31 of the calendar year immediately following the calendar year
in which the member died, or by a date on or before December 31 of the
calendar year in which the member would have attained age 70 '/2, if later,
as the surviving spouse elects.
b. If the member's surviving spouse is not the member's sole designated
beneficiary, then, distributions to the designated beneficiary will begin by
December 31 of the calendar year immediately following the calendar year
in which the member died.
c. If there is no designated beneficiary as of September 30 of the year
following the year of the member's death, the member's entire interest will
be distributed by December 31 of the calendar year containing the fifth
anniversary of the member's death.
Ordinance No. 58-13-36 Page 28 of 47
d. If the member's surviving spouse is the member's sole designated
beneficiary and the surviving spouse dies after the member but before
distributions to the surviving spouse begin, this subsection (b)(2), other
than subsection (b)(2)a., will apply as if the surviving spouse were the
member.
For purposes of this subsection(b)(2). and subsection(e), distributions are
considered to begin on the member's required beginning date or, if
subsection (b)(2)d. applies, the date of distributions are required to begin
to the surviving spouse under subsection (b)(2)a. If annuity payments
irrevocably commence to the member before the member's required
beginning date (or to the member's surviving spouse before the date
distributions are required to begin to the surviving spouse under
subsection (b)(2)a.) the date distributions are considered to begin is the
date distributions actually commence.
(3) Death After Distributions Begin. If the member dies after the required
distribution of benefits has begun, the remaining portion of the member's interest
must be distributed at least as rapidly as under the method of distribution before
the member's death.
(4) Form of distribution. Unless the member's interest is distributed in the form of an
annuity purchased from an insurance company or in a single sum on or before the
required beginning date, as of the first distribution calendar year distributions will
be made in accordance with this section. If the member's interest is distributed in
the form of an annuity purchased from an insurance company, distributions
thereunder will be made in accordance with the requirements of Section 401(a)(9)
of the IRC and Treasury regulations. Any part of the member's interest which is
in the form of an individual account described in Section 414(k) of the IRC will
be distributed in a manner satisfying the requirements of Section 401(a)(9) of the
IRC and Treasury regulations that apply to individual accounts.
(c) Determination of amount to be distributed each year.
(1) General requirements. If the member's interest is paid in the form of annuity
distributions under the plan, payments under the annuity will satisfy the following
requirements:
a. The annuity distributions will be paid in periodic payments made at
intervals not longer than one year.
b. The member's entire interest must be distributed pursuant to Sec. 2-305,
Sec. 2-306, Sec. 2-308, or Sec. 2-309 (as applicable) and in any event over
a period equal to or less than the member's life or the lives of the member
and a designated beneficiary, or over a period not extending beyond the
life expectancy of the member or of the member and a designated
beneficiary. The life expectancy of the member, the member's spouse, or
the member's beneficiary may not be recalculated after the initial
determination for purposes of determining benefits.
(2) Amount required to be distributed by required beginning date. The amount that
must be distributed on or before the member's required beginning date (or, if the
member dies before distributions begin, the date distributions are required to
begin under Sec. 2-306) is the payment that is required for one payment interval.
The second payment need not be made until the end of the next payment interval
even if that payment interval ends in the next calendar year. Payment intervals
Ordinance No. 58-13-36 Page 29 of 47
are the periods for which payments are received, e.g., monthly. All of the
member's benefit accruals as of the last day of the first distribution calendar year
will be included in the calculation of the amount of the annuity payments for
payment intervals ending on or after the member's required beginning date.
(3) Additional accruals after first distribution calendar year. Any additional benefits
accruing to the member in a calendar year after the first distribution calendar year
will be distributed beginning with the first payment interval ending in the calendar
year immediately following the calendar year in which such amount accrues.
(d) General distribution rules.
(1) The amount of an annuity paid to a member's beneficiary may not exceed the
maximum determined under the incidental death benefit requirement of IRC
Section 401(a)(9)(G), and effective for any annuity commencing on or after
January 1, 2008, the minimum distribution incidental benefit rule under Treasury
Regulation Section 1.401(a)(9)-6, Q&A-2.
(2) The death and disability benefits provided by the plan are limited by the
incidental benefit rule set forth in IRC Section 401(a)(9)(G) and Treasury
Regulation Section 1.401-1(b)(1)(I) or any successor regulation thereto. As a
result, the total death or disability benefits payable may not exceed 25% of the
cost for all of the members'benefits received from the retirement system.
(e) Definitions.
(1) Designated beneficiary. The individual who is designated as the beneficiary
under the plan and is the designated beneficiary under Section 401(a)(9) of the
IRC and Section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations.
(2) Distribution calendar year. A calendar year for which a minimum distribution is
required. For distributions beginning before the member's death, the first
distribution calendar year is the calendar year immediately preceding the calendar
year which contains the member's required beginning date. For distributions
beginning after the member's death, the first distribution calendar year is the
calendar year in which distributions are required to begin pursuant to Sec. 2-306.
Sec. 2-310.6. Miscellaneous provisions.
(a) Interest of members in system. All assets of the fund are held in trust, and at no
time prior to the satisfaction of all liabilities under the system with respect to retirees and
members and their spouses or beneficiaries, shall any part of the corpus or income of the fund be
used for or diverted to any purpose other than for their exclusive benefit.
(b) No reduction of accrued benefits. No amendment or ordinance shall be adopted
by the City Commission of the City of Atlantic Beach which shall have the effect of reducing the
then vested accrued benefits of members or a member's beneficiaries.
(c) Qualification of system. It is intended that the system will constitute a qualified
public pension plan under the applicable provisions of the IRC for a qualified plan under IRC
section 401(a) and a governmental plan under IRC section 414(d), as now in effect or hereafter
amended. Any modification or amendment of the system may be made retroactively, if
necessary or appropriate, to qualify or maintain the system as a plan meeting the requirements of
the applicable provisions of the IRC as now in effect or hereafter amended, or any other
Ordinance No. 58-13-36 Page 30 of 47
applicable provisions of the U.S. federal tax laws, as now in effect or hereafter amended or
adopted, and the regulations issued thereunder.
(d) Use of forfeitures. Forfeitures arising from terminations of service of members
shall serve only to reduce future city contributions.
(e) Prohibited Transactions. Effective as of January 1, 1989, a board may not engage
in a transaction prohibited by IRC Section 503(b).
(f) USERRA. Effective December 12, 1994, notwithstanding any other provision of
this system, contributions, benefits and service credit with respect to qualified military service
are governed by IRC Section 414(u) and the Uniformed Services Employment and
Reemployment Rights Act of 1994, as amended. To the extent that the definition of "credited
service" sets forth contribution requirements that are more favorable to the member than the
minimum compliance requirements,the more favorable provisions shall apply.
(g) Vesting.
(1) Member will be 100%vested in all benefits upon attainment of the plan's age and
service requirements for the Plan's normal retirement benefit; and
(2) A member will be 100% vested in all accrued benefits, to the extent funded, if the
plan is terminated or experiences a complete discontinuance of employer
contributions.
(h) Electronic forms. In those circumstances where a written election or consent is
not required by the plan or the IRC, an oral, electronic, or telephonic form in lieu of or in
addition to a written form may be prescribed by the board. However, where applicable, the
board shall comply with Treas. Reg. § 1.401(a)-21.
(i) Compliance with Chapter 185, Florida Statutes. It is intended that the system
will continue to qualify for funding under F.S. §185.08. Accordingly, unless otherwise required
by law, any provision of the system which violates the requirements of F.S. ch. 185, as amended
from time to time, shall be superseded by and administered in accordance with the requirements
of such chapter.
Sec.2-310.7. Repeal or termination of system.
(a) This ordinance establishing the system and fund, and subsequent ordinances
pertaining to said system and fund, may be modified, terminated, or amended, in whole or in
part; provided that if this or any subsequent ordinance shall be amended or repealed in its
application to any person benefitting hereunder, the amount of benefits which at the time of any
such alteration, amendment, or repeal shall have accrued to the member or beneficiary shall not
be affected thereby..
(b) If this ordinance shall be repealed, or if contributions to the system are
discontinued or if there is a transfer, merger or consolidation of government units, services or
functions as provided in F.S. ch. 121, the board shall continue to administer the system in
accordance with the provisions of this ordinance, for the sole benefit of the then members, any
beneficiaries then receiving retirement allowances, and any future persons entitled to receive
benefits under one of the options provided for in this ordinance who are designated by any of
said members. In the event of repeal, discontinuance of contributions, or transfer, merger or
Ordinance No. 58-13-36 Page 31 of 47
consolidation of government units, services or functions, there shall be full vesting (100%) of
benefits accrued to date of repeal and such benefits shall be nonforfeitable.
(c) The fund shall be distributed in accordance with the following procedures:
(1) The board shall determine the date of distribution and the asset value required to
fund all the nonforfeitable benefits after taking into account the expenses of such
distribution. The board shall inform the city if additional assets are required, in
which event the city shall continue to financially support the plan until all
nonforfeitable benefits have been funded.
(2) The board shall determine the method of distribution of the asset value, whether
distribution shall be by payment in cash, by the maintenance of another or
substituted trust fund, by the purchase of insured annuities, or otherwise, for each
Police Officer entitled to benefits under the plan as specified in subsection(3).
(3) The board shall distribute the asset value as of the date of termination in the
manner set forth in this subsection, on the basis that the amount required to
provide any given retirement income is the actuarially computed single-sum value
of such retirement income, except that if the method of distribution determined
under subsection (2) involves the purchase of an insured annuity, the amount
required to provide the given retirement income is the single premium payable for
such annuity. The actuarial single-sum value may not be less than the Police
Officer's accumulated contributions to the plan, with interest if provided by the
plan, less the value of any plan benefits previously paid to the Police Officer.
(4) If there is asset value remaining after the full distribution specified in subsection
(3), and after the payment of any expenses incurred with such distribution, such
excess shall be returned to the city, less return to the State of the State's
contributions, provided that, if the excess is less than the total contributions made
by the city and the State to date of termination of the plan, such excess shall be
divided proportionately to the total contributions made by the city and the State.
(5) The board shall distribute, in accordance with subsection (2), the amounts
determined under subsection(3).
If, after twenty-four (24) months after the date the plan terminated or the date the
board received written notice that the contributions there under were being permanently
discontinued, the city or the board of the fund affected has not complied with all the provisions
in this section,the Florida Department of Management Services will affect the termination of the
fund in accordance with this section.
Sec. 2-310.8. Domestic relations orders; retiree directed payments; Exemption from
execution,non-assignability.
(a) Domestic relations orders.
(1) Prior to the entry of any domestic relations order which affects or purports to affect
the system's responsibility in connection with the payment of benefits of a retiree, the
member or retiree shall submit the proposed order to the board for review to determine
whether the system may legally honor the order.
(2) If a domestic relations order is not submitted to the board for review prior to entry of
the order, and the system is ordered to take action that it may not legally take, and the
system expends administrative or legal fees in resolving the matter, the member or
Ordinance No. 58-13-36 Page 32 of 47
retiree who submits such an order will be required to reimburse the system for its
expenses in connection with the order.
(b) Retiree directed payments. The board may, upon written request by a retiree or by a
dependent, when authorized by a retiree or the retiree's beneficiary, authorize the system to withhold
from the monthly retirement payment those funds that are necessary to pay for the benefits being
received through the city, to pay the certified bargaining agent of the city, to make payment to
insurance companies for insurance premiums as permitted by F.S. Chapter 185 and to make any
payments for child support or alimony.
(c) Exemption from execution, non-assignability. Except as otherwise provided by law,
the pensions, annuities, or any other benefits accrued or accruing to any person under the
provisions of this ordinance and the accumulated contributions and the cash securities in the fund
created under this ordinance are hereby exempted from any state, county or municipal tax and
shall not be subject to execution, attachment, garnishment or any legal process whatsoever and
shall be unassignable.
Sec.2-310.9. Pension validity.
The board shall have the power to examine into the facts upon which any pension shall
heretofore have been granted under any prior or existing law, or shall hereafter be granted or
obtained erroneously, fraudulently or illegally for any reason. The board is empowered to purge
the pension rolls or correct the pension amount of any person heretofore granted a pension under
prior or existing law or any person hereafter granted a pension under this ordinance if the same is
found to be erroneous, fraudulent or illegal for any reason; and to reclassify any person who has
heretofore under any prior or existing law been or who shall hereafter under this ordinance be
erroneously, improperly or illegally classified. Any overpayments or underpayments shall be
corrected and paid or repaid in a reasonable manner determined by the board.
Sec.2-310.10. Forfeiture of pension.
(a) Any member who is convicted of the following offenses committed prior to
retirement, or whose employment is terminated by reason of his admitted commission, aid or
abetment of the following specified offenses, shall forfeit all rights and benefits under this
system, except for the return of his accumulated contributions as of the date of termination.
Specified offenses are as follows:
(1) The committing, aiding or abetting of an embezzlement of public funds;
(2) The committing, aiding or abetting of any theft by a public officer or employee
from employer;
(3) Bribery in connection with the employment of a public officer or employee;
(4) Any felony specified in F.S. ch. 838;
(5) The committing of an impeachable offense;
(6) The committing of any felony by a public officer or employee who willfully and
with intent to defraud the public or the public agency, for which he acts or in
which he is employed, of the right to receive the faithful performance of his duty
as a public officer or employee, realizes or obtains or attempts to obtain a profit,
gain, or advantage for himself or for some other person through the use or
Ordinance No. 58-13-36 Page 33 of 47
attempted use of the power, rights, privileges, duties or position of his public
office or employment position; or
(7) The committing on or after October 1, 2008, of any felony defined in F.S. Section
800.04, against a victim younger than sixteen (16) years of age, or any felony
defined in F.S. ch. 794, against a victim younger than eighteen (18) years of age,
by a public officer or employee through the use or attempted use of power, rights,
privileges,duties, or position of his or her public office or employment position.
(b) Conviction shall be defined as an adjudication of guilt by a court of competent
jurisdiction; a plea of guilty or a nolo contendere; a jury verdict of guilty when adjudication of
guilt is withheld and the accused is placed on probation; or a conviction by the senate of an
impeachable offense.
(c) Court shall be defined as any state or federal court of competent jurisdiction
which is exercising its jurisdiction to consider a proceeding involving the alleged commission of
a specified offense. Prior to forfeiture, the board shall hold a hearing on which notice shall be
given to the member whose benefits are being considered for forfeiture. Said member shall be
afforded the right to have an attorney present. No formal rules of evidence shall apply, but the
member shall be afforded a full opportunity to present his case against forfeiture.
(d) Any member who has received benefits from the system in excess of his
accumulated contributions after member's rights were forfeited shall be required to pay back to
the fund the amount of the benefits received in excess of his accumulated contributions. The
board may implement all legal action necessary to recover such funds.
Sec.2-310.11. Conviction and forfeiture; false,misleading or fraudulent statements.
(a) It is unlawful for a person to willfully and knowingly make, or cause to be made,
or to assist, conspire with, or urge another to make, or cause to be made, any false, fraudulent, or
misleading oral or written statement or withhold or conceal material information to obtain any
benefit from the system.
(b) A person who violates subsection (a) commits a misdemeanor of the first degree,
punishable as provided in F.S. §775.082 or §775.083.
(c) In addition to any applicable criminal penalty, upon conviction for a violation
described in subsection (a), a member or beneficiary of the system may, in the discretion of the
board, be required to forfeit the right to receive any or all benefits to which the person would
otherwise be entitled under the system. For purposes of this subsection, "conviction" means a
determination of guilt that is the result of a plea or trial, regardless of whether adjudication is
withheld.
Sec. 2-310.12. Indemnification.
(a) To the extent not covered by insurance contracts in force from time to time, the
city shall indemnify, defend and hold harmless members of the board from all personal liability
for damages and costs, including court costs and attorneys' fees, arising out of claims, suits,
litigation, or threat of same, herein referred to as "claims", against these individuals because of
acts or circumstances connected with or arising out of their official duty as members of the
board. The city reserves the right, in its sole discretion, to settle or not settle the claim at any
time, and to appeal or to not appeal from any adverse judgment or ruling, and in either event will
Ordinance No. 58-13-36 Page 34 of 47
indemnify,defend and hold harmless any members of the board from the judgment, execution, or
levy thereon.
(b) This section shall not be construed so as to relieve any insurance company or
other entity liable to defend the claim or liable for payment of the judgment or claim, from any
liability, nor does this section waive any provision of law affording the city immunity from any
suit in whole or part, or waive any other substantive or procedural rights the city may have.
(c) This section shall not apply nor shall the city be responsible in any manner to
defend or pay for claims arising out of acts or omissions of members of the board which
constitute felonies or gross malfeasance or gross misfeasance in office.
Sec.2-310.13. Direct transfers of eligible rollover distributions.
(a) Rollover distributions.
(1) General. This section applies to distributions made on or after January 1, 2002.
Notwithstanding any provision of the system 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, to have any portion of an eligible
rollover distribution paid directly to an eligible retirement plan specified by the
distributee in a direct rollover.
(2) Definitions.
a. Eligible rollover distribution: An eligible rollover distribution is any
distribution of all or any portion of the balance to the credit of the
distributee, except that an eligible rollover distribution does not include:
any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or life
expectancy) of the distributee or the joint lives (or joint life expectancies)
of the distributee and the distributee's designated beneficiary, or for a
specified period of ten years or more; any distribution to the extent such
distribution is required under section 401(a)(9) of the IRC and the portion
of any distribution that is not includible in gross income. Effective
January 1, 2002, any portion of any distribution which would be includible
in gross income as after-tax employee contributions will be an eligible
rollover distribution if the distribution is made to an individual retirement
account described in section 408(a); to an individual retirement annuity
described in section 408(b); to a qualified defined contribution plan
described in section 401(a) or 403(a) that agrees to separately account for
amounts so transferred (and earnings thereon), including separately
accounting for the portion of such distribution which is includible in gross
income and the portion of such distribution which is not so includible; or
on or after January 1, 2007,to a qualified defined benefit plan described in
IRC Section 401(a) or to an annuity contract described in IRC Section
403(b), that agrees to separately account for amounts so transferred (and
earnings thereon), including separately accounting for the portion of the
distribution that is includible in gross income and the portion of the
distribution that is not so includible.
b. Eligible retirement plan: An eligible retirement plan is an individual
retirement account described in section 408(a) of the IRC; an individual
Ordinance No. 58-13-36 Page 35 of 47
retirement annuity described in section 408(b) of the IRC; an annuity plan
described in section 403(a) of the IRC; effective January 1, 2002, an
eligible deferred compensation plan described in section 457(b) of the IRC
which is maintained by an eligible employer described in section
457(e)(1)(A) of the IRC and which agrees to separately account for
amounts transferred into such plan from this plan; effective January 1,
2002, an annuity contract described in section 403(b) of the IRC; a
qualified trust described in section 401(a) of the IRC; or effective January
1, 2008, a Roth IRA described in section 408A of the IRC,that accepts the
distributee's eligible rollover distribution. This definition shall also apply
in the case of an eligible rollover distribution to the surviving spouse.
c. Distributee: A distributee includes an employee or former employee. It
also includes the employee's or former employee's surviving spouse and
the employee's or former employee's spouse or former spouse. Effective
January 1, 2007, it further includes a nonspouse beneficiary who is a
designated beneficiary as defined by IRC Section 401(a)(9)(E). However,
a nonspouse beneficiary may rollover the distribution only to an individual
retirement account or individual retirement annuity established for the
purpose of receiving the distribution and the account or annuity will be
treated as an "inherited" individual retirement account or annuity.
d. Direct rollover: A direct rollover is a payment by the plan to the eligible
retirement plan specified by the distributee.
(b) Rollovers or transfers into the fund. On or after January 1, 2002, the system will
accept, solely for the purpose of purchasing credited service as provided herein, permissible
Member requested transfers of funds from other retirement or pension plans, member rollover
cash contributions and/or direct cash rollovers of distributions made on or after January 1, 2002,
as follows:
(1) Transfers and direct rollovers or member rollover contributions from other plans.
The system will accept either a direct rollover of an eligible rollover distribution
or a member contribution of an eligible rollover distribution from a qualified plan
described in section 401(a) or 403(a) of the IRC, from an annuity contract
described in section 403(b) of the IRC or from an eligible plan under section
457(b) of the IRC which is maintained by a state, political subdivision of a state,
or any agency or instrumentality of a state or political subdivision of a state. The
system will also accept legally permissible member requested transfers of funds
from other retirement or pension plans.
(2) Member rollover contributions from IRAs. The system will accept a member
rollover contribution of the portion of a distribution from an individual retirement
account or annuity described in section 408(a) or 408(b) of the IRC that is eligible
to be rolled over.
(c) Elimination of Mandatory Distributions. Notwithstanding any other provision
herein to the contrary, in the event this Plan provides for a mandatory (involuntary) cash
distribution from the Plan not otherwise required by law, for an amount in excess of one-
thousand dollars ($1,000.00), such distribution shall be made from the Plan only upon written
request of the Member and completion by the Member of a written election on forms designated
by the Board,to either receive a cash lump sum or to rollover the lump sum amount.
Sec.2-310.14. Family and medical leave act.
Ordinance No. 58-13-36 Page 36 of 47
The fractional parts of the twelve (12) month period ending each March 1 that a member
is on leave without pay from the city pursuant to the Family and Medical Leave Act (FMLA)
shall be added to his credited service provided that:
(1) The member contributes to the fund the sum that he would have contributed,
based on his salary and the member contribution rate in effect at the time that the
credited service is requested, had he been a member of the system for the years or
fractional parts of years for which he is requesting credit plus amounts actuarially
determined such that the crediting of service does not result in any cost to the
fund plus payment of costs for all professional services rendered to the board in
connection with the purchase of years of credited service.
(2) The request for credited service for FMLA leave time for the twelve (12) month
period prior to each March 1 and payment of professional fees shall be made on
or before March 31.
(3) Payment by the member of the required amount shall be made on or before April
30 for the preceding twelve (12) month period ending March 1 and shall be made
in one (1) lump sum payment upon receipt of which credited service shall be
issued.
(4) Credited service purchased pursuant to this section shall not count toward vesting.
Sec. 2-310.15. Military service prior to employment.
The years or fractional parts of years that a Police Officer serves or has served on active
duty in the military service of the Armed Forces of the United States, the United States Merchant
Marine or the United States Coast Guard, voluntarily or involuntarily and honorably or under
honorable conditions, prior to first and initial employment with the city Police department shall
be added to his years of credited service provided that:
(1) The member contributes to the fund the sum that he would have contributed,
based on his salary and the member contribution rate in effect at the time that the
credited service is requested, had he been a member of the system for the years or
fractional parts of years for which he is requesting credit plus amounts actuarially
determined such that the crediting of service does not result in any cost to the
fund plus payment of costs for all professional services rendered to the board in
connection with the purchase of years of credited service.
(2) Multiple requests to purchase credited service pursuant to this section may be
made at any time prior to retirement.
(3) Payment by the member of the required amount shall be made within six (6)
months of his request for credit, but not later than the retirement date, and shall be
made in one lump sum payment upon receipt of which credited service shall be
given, or the Member may elect to make payment for the requested Credited
Service over a period of time as provided for in paragraph (6)below.
(4) The maximum credit under this section shall be five (5) years.
(5) Credited service purchased pursuant to this section shall count for all purposes,
except vesting and eligibility for not-in-line of duty disability benefits.
Ordinance No. 58-13-36 Page 37 of 47
(6) In lieu of the lump sum payment provided for in paragraph (3) above, a member
may elect to make payments over a period of time in order to fully pay the amount
provided for in paragraph (1). The member shall be required to notify the board,
in writing, of his election to make payments in the manner provided for in this
paragraph. The payment plan provided for in this paragraph shall be subject to
the following terms:
a. The principal amount to be paid shall be determined as set forth in
paragraph(1) above.
b. The original principal amount shall be amortized over the period
beginning with the first payment and ending at the end of a period equal to
the number of years being purchased and shall be reamortized annually if
necessary to reflect changes in the interest rate provided for in
subparagraph c. below.
c. Payments shall consist of principal and interest at a rate equal to the
actuarially assumed rate of return on plan investments.
d. Payments shall be made by payroll deduction from each paycheck on an
after-tax basis.
e. In the event that a member dies, retires (including entry into the Deferred
Retirement Option Plan(DROP)) or otherwise terminates his employment,
without having made full payment of the principal amount necessary to
receive all credited service requested,the member shall receive so much of
the credited service requested, determined using procedures established by
the actuary, which could be purchased with the amount of principal paid
by the member to the date of his death or termination of employment.
f. In the event that the member's employment is terminated for any reason
and he is not entitled to any benefit from the plan other than the return of
the amounts he has had deducted from his paycheck as his normal
contribution to the plan, the amounts which the member has paid pursuant
to this subsection to purchase additional credited service, shall be returned
to him including all interest.
Sec. 2-310.16. Prior police service.
Unless otherwise prohibited by law, and except as provided for in section 2-300, the
years or fractional parts of years that a member previously served as a full-time Police Officer
with the city during a period of previous employment and for which period accumulated
contributions were withdrawn from the fund, or the years and fractional parts of years that a
member served as a full-time Police Officer for any other municipal, county or state law
enforcement department in the State of Florida shall be added to his years of credited service
provided that:
(1) The member contributes to the fund the sum that he would have contributed,
based on his salary and the member contribution rate in effect at the time that the
credited service is requested, had he been a member of the system for the years or
fractional parts of years for which he is requesting credit plus amounts actuarially
determined such that the crediting of service does not result in any cost to the
fund plus payment of costs for all professional services rendered to the board in
connection with the purchase of years of credited service.
Ordinance No. 58-13-36 Page 38 of 47
(2) Multiple requests to purchase credited service pursuant to this section may be
made at any time prior to retirement.
(3) Payment by the Police Officer of the required amount shall be made within six (6)
months of his request for credit, but not later than the retirement date, and shall be
made in one lump sum payment upon receipt of which credited service shall be
given, or the member may elect to make payment for the requested credited
service over a period of time as provided for in paragraph(7)below.
(4) The maximum credit under this section for service other than with the City of
shall be five (5) years of credited service and shall count for all purposes, except
vesting and eligibility for not-in-line of duty disability benefits. There shall be no
maximum purchase of credit for prior service with the City of Atlantic Beach and
such credit shall count for all purposes, including vesting.
(5) In no event, however, may credited service be purchased pursuant to this section
for prior service with any other municipal, county or state law enforcement
department, if such prior service forms or will form the basis of a retirement
benefit or pension from a different employer's retirement system or plan as set
forth in section 2-310.4, subsection(k)(2).
(6) For purposes of determining credit for prior service as a police officer as provided
for in this section, in addition to service as a police officer in this state, credit
may be purchased by the member in the same manner as provided above for
federal, other state, county or municipal service if the prior service is recognized
by the Criminal Justice Standards and Training Commission within the
Department of Law Enforcement, as provided under Chapter 943, Florida
Statutes, or the police officer provides proof to the board that such service is
equivalent to the service required to meet the definition of a police officer under
Sec. 2-300, Definitions.
(7) In lieu of the lump sum payment provided for in paragraph (3) above, a member
may elect to make payments over a period of time in order to fully pay the amount
provided for in paragraph (1). The member shall be required to notify the board,
in writing, of his election to make payments in the manner provided for in this
paragraph. The payment plan provided for in this paragraph shall be subject to
the following terms:
a. The principal amount to be paid shall be determined as set forth in
paragraph(1) above.
b. The original principal amount shall be amortized over the period
beginning with the first payment and ending at the end of a period equal to
the number of years being purchased and shall be reamortized annually if
necessary to reflect changes in the interest rate provided for in
subparagraph c. below.
c. Payments shall consist of principal and interest at a rate equal to the
actuarially assumed rate of return on plan investments
d. Payments shall be made by payroll deduction from each paycheck on an
after-tax basis.
Ordinance No. 58-13-36 Page 39 of 47
e. In the event that a member dies, retires (including entry into the Deferred
Retirement Option Plan(DROP)) or otherwise terminates his employment,
without having made full payment of the principal amount necessary to
receive all credited service requested, the member shall receive so much of
the credited service requested, determined using procedures established by
the actuary, which could be purchased with the amount of principal paid
by the member to the date of his death or termination of employment.
f. In the event that the member's employment is terminated for any reason
and he is not entitled to any benefit from the plan other than the return of
the amounts he has had deducted from his paycheck as his normal
contribution to the plan, the amounts which the member has paid pursuant
to this subsection to purchase additional credited service, shall be returned
to him, including all interest paid.
Sec.2-310.17. Reemployment after retirement
(a) Any retiree who is retired under this system, except for disability retirement as
previously provided for, may be reemployed by any public or private employer, except the city,
and may receive compensation from that employment without limiting or restricting in any way
the retirement benefits payable under this system. Reemployment by the city shall be subject to
the limitations set forth in this section.
(b) After normal retirement. Any retiree who is retired under normal retirement
pursuant to this system and who is reemployed as a police officer after that retirement and, by
virtue of that reemployment, is eligible to participate in this system, shall upon being
reemployed, discontinue receipt of benefits. Upon reemployment, the retiree shall be deemed to
be fully vested and the additional credited service accrued during the subsequent employment
period shall be used in computing a second benefit amount attributable to the subsequent
employment period, which benefit amount shall be added to the benefit determined upon the
initial retirement to determine the total benefit payable upon final retirement. Calculations of
benefits upon retirement shall be based upon the benefit accrual rate, average final
compensation, and credited service as of that date and the retirement benefit amount for any
subsequent employment period shall be based upon the benefit accrual rate, average final
compensation (based only on the subsequent employment period), and credited service as of the
date of subsequent retirement The amount of any death or disability benefit received as a result
of a subsequent period of employment shall be reduced by the amount of accrued benefit eligible
to be paid for a prior period of employment. The optional form of benefit and any joint
pensioner selected upon initial retirement shall not be subject to change upon subsequent
retirement except as otherwise provided herein, but the member may select a different optional
form and joint pensioner applicable to the subsequent retirement benefit.
(c) Any retiree who is retired under normal retirement pursuant to this system and
who is reemployed by the city after that retirement and, by virtue of that reemployment is
ineligible to participate in this system, shall, during the period of such reemployment, continue
receipt of benefits during any subsequent employment period.
(d) After early retirement. Any retiree who is retired under early retirement pursuant
to this system and who subsequently becomes an employee of the city in any capacity shall
discontinue receipt of benefits from the system. If by virtue of that reemployment, the retiree is
eligible to participate in this system, the retiree shall be deemed to be fully vested and the
additional credited service accrued during the subsequent employment period shall be used in
Ordinance No. 58-13-36 Page 40 of 47
computing a second benefit amount attributable to the subsequent employment period, which
benefit amount shall be added to the benefit determined upon the initial retirement to determine
the total benefit payable upon final retirement. Calculations of benefits upon retirement shall be
based upon the benefit accrual rate, average final compensation, credited service and early
retirement reduction factor as of that date and the retirement benefit amount for any subsequent
employment period shall be based upon the benefit accrual rate, average final compensation
(based only on the subsequent employment period), and credited service as of the date of
subsequent retirement The amount of any death or disability benefit received as a result of a
subsequent period of employment shall be reduced by the amount of accrued benefit eligible to
be paid for a prior period of employment. The optional form of benefit and any joint pensioner
selected upon initial retirement shall not be subject to change upon subsequent retirement except
as otherwise provided herein, but the member may select a different optional form and joint
pensioner applicable to the subsequent retirement benefit. Retirement pursuant to an early
retirement incentive program shall be deemed early retirement for purposes of this section if the
member was permitted to retire prior to the customary retirement date provided for in the system
at the time of retirement.
(e) Reemployment of terminated vested persons. Reemployed terminated vested
persons shall not be subject to the provisions of this section until such time as they begin to
actually receive benefits. Upon receipt of benefits, terminated vested persons shall be treated as
normal or early retirees for purposes of applying the provisions of this section and their status as
an early or normal retiree shall be determined by the date they elect to begin to receive their
benefit.
(f) DROP participants. Members or retirees who are or were in the deferred
retirement option plan shall, following termination of employment after DROP participation,
have the options provided for in this section for reemployment.
Sec. 2-310.18. Deferred retirement option plan.
(a) Definitions. As used in this Section 2-310.18,the following definitions apply:"
(1) "DROP" -- The City of Atlantic Beach Police Officers' Retirement System
Deferred Retirement Option Plan.
(2) "DROP Account" -- The account established for each DROP participant
under subsection(c).
(b) Participation.
(1) Eligibility to Participate. In lieu of terminating his employment as a
police officer, any member who is eligible for normal or early retirement
under the system may elect to defer receipt of such service retirement
pension and to participate in the DROP.
(2) Election to Participate. A member's election to participate in the DROP
must be made in writing in a time and manner determined by the board
and shall be effective on the first day of the first calendar month which is
at least fifteen(15)business days after it is received by the board.
(3) Period of Participation. A member who elects to participate in the DROP
under subsection (b)(2), shall participate in the DROP for a period not to
exceed sixty (60) months beginning at the time his election to participate
in the DROP first becomes effective. An election to participate in the
DROP shall constitute an irrevocable election to resign from the service of
Ordinance No. 58-13-36 Page 41 of 47
the City not later than the date provided for in the previous sentence. A
member may participate only once.
(4) Termination of Participation.
a. A member's participation in the DROP shall cease at the earlier of:
1. the end of his permissible period of participation in the
DROP as determined under subsection(b)(3); or
2. termination of his employment as a police officer.
b. Upon the member's termination of participation in the DROP,
pursuant to subsection a.1. above, all amounts provided for in
subsection (c)(2), including monthly benefits and investment
earnings and losses, shall cease to be transferred from the system
to his DROP Account. Any amounts remaining in his DROP
Account shall be paid to him in accordance with the provisions of
subsection(d)when he terminates employment as a police officer.
c. A member who terminates his participation in the DROP under this
subsection (b)(4) shall not be permitted to again become a
participant in the DROP.
(5) Effect of DROP Participation on the System.
a. A member's credited service and his accrued benefit under the
system shall be determined on the date his election to participate in
the DROP first becomes effective. For purposes of determining
the accrued benefit, the member's salary for the purposes of
calculating his average final compensation shall include an amount
equal to any lump sum payments which would have been paid to
the member and included as salary as defined herein, had the
member retired under normal retirement and not elected DROP
participation. Member contributions attributable to any lump sums
used in the benefit calculation and not actually received by the
member shall be deducted from the first payments to the member's
DROP Account. The member shall not accrue any additional
credited service or any additional benefits under the system(except
for any additional benefits provided under any cost-of-living
adjustment for retirees in the system) while he is a participant in
the DROP. After a member commences participation, he shall not
be permitted to again contribute to the system nor shall he be
eligible for disability or pre-retirement death benefits, except as
provided for in Section 2-310.17, Reemployment After Retirement.
b. No amounts shall be paid to a member from the system while the
member is a participant in the DROP. Unless otherwise specified
in the system, if a member's participation in the DROP is
terminated other than by terminating his employment as a police
officer, no amounts shall be paid to him from the system until he
terminates his employment as a police officer. Unless otherwise
specified in the system, amounts transferred from the system to the
member's DROP Account shall be paid directly to the member
only on the termination of his employment as a police officer.
Ordinance No. 58-13-36 Page 42 of 47
(c) Funding.
(1) Establishment of DROP Account. A DROP Account shall be established
for each member participating in the DROP. A member's DROP Account
shall consist of amounts transferred to the DROP under subsection (c)(2),
and earnings or losses on those amounts.
(2) Transfers From Retirement System.
a. As of the first day of each month of a member's period of
participation in the DROP, the monthly retirement benefit he
would have received under the system had he terminated his
employment as a police officer and elected to receive monthly
benefit payments thereunder shall be transferred to his DROP
Account, except as otherwise provided for in subsection(b)(4)b. A
member's period of participation in the DROP shall be determined
in accordance with the provisions of subsections (b)(3) and (b)(4),
but in no event shall it continue past the date he terminates his
employment as a police officer.
b. Except as otherwise provided in subsection (b)(4)b., a member's
DROP Account under this subsection (c)(2) shall be debited or
credited after each fiscal year quarter with earnings, determined as
follows:
The average daily balance in a member's DROP Account shall be
credited or debited at a rate equal to the net investment return
realized by the system for that quarter. "Net investment return" for
the purpose of this paragraph is the total return of the assets in
which the Member's DROP Account is invested by the board net of
brokerage commissions, transaction costs and management fees.
c. A member's DROP Account shall only be credited or debited with
earnings or losses and monthly benefits while the member is a
participant in the DROP. A member's final DROP account value
for distribution to the member upon termination of participation in
the DROP shall be the value of the account at the end of the
quarter immediately preceding termination of participation plus
any monthly periodic additions made to the DROP account
subsequent to the end of the previous quarter and prior to
distribution. If a Member fails to terminate employment after
participating in the DROP for the permissible period of DROP
participation, then beginning with the member's first month of
employment following the last month of the permissible period of
DROP participation, the member's DROP Account will no longer
be credited or debited with earnings or losses, nor will monthly
benefits be transferred to the DROP account. All such non-
transferred amounts shall be forfeited and continue to be forfeited
while the member is employed by the Police Department, and no
cost-of-living adjustments shall be applied to the member's credit
during such period of continued employment. A member
employed by the Police Department after the permissible period of
DROP participation will still not be eligible for pre-retirement
Ordinance No. 58-13-36 Page 43 of 47
death and disability benefits, and will not accrue additional
Credited Service except as provided for in Section 2-310.17,
Reemployment After Retirement.
(d) Distribution of DROP Accounts on Termination of Employment.
(1) Eligibility for Benefits. A member shall receive the balance in his DROP
Account in accordance with the provisions of this subsection (d) upon his
termination of employment as a police officer. Except as provided in
subsection (d)(5), no amounts shall be paid to a member from the DROP
prior to his termination of employment as a police officer.
(2) Form of Distribution.
a. Unless the member elects otherwise, distribution of his DROP
Account shall be made in a lump sum, subject to the direct rollover
provisions set forth in subsection (d)(6). Elections under this
paragraph shall be in writing and shall be made in such time or
manner as the board shall determine.
b. Notwithstanding the preceding, if a member dies before his benefit
is paid, his DROP Account shall be paid to his beneficiary in such
optional form as his beneficiary may select. If no beneficiary
designation is made, the DROP Account shall be distributed to the
member's estate.
(3) Date of Payment of Distribution. Except as otherwise provided in this
subsection (d), distribution of a member's DROP Account shall be made
as soon as administratively practicable following the member's
termination of employment. Distribution of the amount in a member's
DROP account will not be made unless the member completes a written
request for distribution and a written election, on forms designated by the
board, to either receive a cash lump sum or a rollover of the lump sum
amount.
(4) Proof of Death and Right of Beneficiary or Other Person. The board may
require and rely upon such proof of death and such evidence of the right of
any beneficiary or other person to receive the value of a deceased
member's DROP Account as the board may deem proper and its
determination of the right of that beneficiary or other person to receive
payment shall be conclusive.
(5) Distribution Limitation. Notwithstanding any other provision of
subsection (d), all distributions from the DROP shall conform to the
"Minimum Distribution Of Benefits"provisions as provided for herein.
(6) Direct Rollover of Certain Distributions. This subsection applies to
distributions made on or after January 1, 2002. Notwithstanding any
provision of the DROP to the contrary, a distributee may elect to have any
portion of an eligible rollover distribution paid in a direct rollover as
otherwise provided under the System in Section 2-310.13.
(e) Administration of DROP.
Ordinance No. 58-13-36 Page 44 of 47
(1) Board Administers the DROP. The general administration of the DROP,
the responsibility for carrying out the provisions of the DROP and the
responsibility of overseeing the investment of the DROP's assets shall be
placed in the board. The members of the board may appoint from their
number such subcommittees with such powers as they shall determine;
may adopt such administrative procedures and regulations as they deem
desirable for the conduct of their affairs; may authorize one or more of
their number or any agent to execute or deliver any instrument or make
any payment on their behalf; may retain counsel, employ agents and
provide for such clerical, accounting, actuarial and consulting services as
they may require in carrying out the provisions of the DROP; and may
allocate among themselves or delegate to other persons all or such portion
of their duties under the DROP, other than those granted to them as trustee
under any trust agreement adopted for use in implementing the DROP, as
they, in their sole discretion, shall decide. A trustee shall not vote on any
question relating exclusively to himself
(2) Individual Accounts, Records and Reports. The board shall maintain
records showing the operation and condition of the DROP, including
records showing the individual balances in each member's DROP
Account, and the board shall keep in convenient form such data as may be
necessary for the valuation of the assets and liabilities of the DROP. The
board shall prepare and distribute to members participating in the DROP
and other individuals or file with the appropriate governmental agencies,
as the case may be, all necessary descriptions, reports, information returns,
and data required to be distributed or filed for the DROP pursuant to the
IRC and any other applicable laws.
(3) Establishment of Rules. Subject to the limitations of the DROP, the board
from time to time shall establish rules for the administration of the DROP
and the transaction of its business. The Board shall have discretionary
authority to construe and interpret the DROP (including but not limited to
determination of an individual's eligibility for DROP participation, the
right and amount of any benefit payable under the DROP and the date on
which any individual ceases to be a participant in the DROP). The
determination of the board as to the interpretation of the DROP or its
determination of any disputed questions shall be conclusive and final to
the extent permitted by applicable law.
(4) Limitation of Liability.
a. The trustees shall not incur any liability individually or on behalf
of any other individuals for any act or failure to act, made in good
faith in relation to the DROP or the funds of the DROP.
b. Neither the board nor any trustee of the board shall be responsible
for any reports furnished by any expert retained or employed by
the board, but they shall be entitled to rely thereon as well as on
certificates furnished by an accountant or an actuary, and on all
opinions of counsel. The board shall be fully protected with
respect to any action taken or suffered by it in good faith in
reliance upon such expert, accountant, actuary or counsel, and all
actions taken or suffered in such reliance shall be conclusive upon
any person with any interest in the DROP.
Ordinance No. 58-13-36 Page 45 of 47
(f) General Provisions.
(1) Amendment of DROP. The DROP may be amended by an ordinance of
the City at any time and from time to time, and retroactively if deemed
necessary or appropriate, to amend in whole or in part any or all of the
provisions of the DROP. However, except as otherwise provided by law,
no amendment shall make it possible for any part of the DROP's funds to
be used for, or diverted to, purposes other than for the exclusive benefit of
persons entitled to benefits under the DROP. No amendment shall be
made which has the effect of decreasing the balance of the DROP Account
of any member.
(2) Facility of Payment. If a member or other person entitled to a benefit
under the DROP is unable to care for his affairs because of illness or
accident or is a minor, the board shall direct that any benefit due him shall
be made only to a duly appointed legal representative. Any payment so
made shall be a complete discharge of the liabilities of the DROP for that
benefit.
(3) Information. Each member, beneficiary or other person entitled to a
benefit, before any benefit shall be payable to him or on his account under
the DROP, shall file with the Board the information that it shall require to
establish his rights and benefits under the DROP.
(4) Prevention of Escheat. If the board cannot ascertain the whereabouts of
any person to whom a payment is due under the DROP,the Board may, no
earlier than three (3) years from the date such payment is due, mail a
notice of such due and owing payment to the last known address of such
person, as shown on the records of the board or the City. If such person
has not made written claim therefor within three (3) months of the date of
the mailing, the board may, if it so elects and upon receiving advice from
counsel to the system, direct that such payment and all remaining
payments otherwise due such person be canceled on the records of the
system. Upon such cancellation, the system shall have no further liability
therefor except that, in the event such person or his beneficiary later
notifies the board of his whereabouts and requests the payment or
payments due to him under the DROP, the amount so applied shall be paid
to him in accordance with the provisions of the DROP.
(5) Written Elections, Notification.
a. Any elections, notifications or designations made by a member
pursuant to the provisions of the DROP shall be made in writing
and filed with the board in a time and manner determined by the
board under rules uniformly applicable to all employees similarly
situated. The board reserves the right to change from time to time
the manner for making notifications, elections or designations by
members under the DROP if it determines after due deliberation
that such action is justified in that it improves the administration of
the DROP. In the event of a conflict between the provisions for
making an election, notification or designation set forth in the
DROP and such new administrative procedures, those new
administrative procedures shall prevail.
Ordinance No. 58-13-36 Page 46 of 47
b. Each member or retiree who has a DROP Account shall be
responsible for furnishing the Board with his current address and
any subsequent changes in his address. Any notice required to be
given to a member or retiree hereunder shall be deemed given if
directed to him at the last such address given to the board and
mailed by registered or certified United States mail. If any check
mailed by registered or certified United States mail to such address
is returned, mailing of checks will be suspended until such time as
the member or retiree notifies the board of his address.
(6) Benefits Not Guaranteed. All benefits payable to a Member from the
DROP shall be paid only from the assets of the member's DROP Account
and neither the City nor the board shall have any duty or liability to
furnish the DROP with any funds, securities or other assets except to the
extent required by any applicable law.
(7) Construction.
a. The DROP shall be construed, regulated and administered under
the laws of Florida, except where other applicable law controls.
b. The titles and headings of the subsections in this Section 2-310.18
are for convenience only. In the case of ambiguity or
inconsistency, the text rather than the titles or headings shall
control.
(8) Forfeiture of Retirement Benefits. Nothing in this Section shall be
construed to remove DROP participants from the application of any
forfeiture provisions applicable to the system. DROP participants shall be
subject to forfeiture of all retirement benefits, including DROP benefits.
(9) Effect of DROP Participation on Employment. Participation in the DROP
is not a guarantee of employment and DROP participants shall be subject
to the same employment standards and policies that are applicable to
employees who are not DROP participants.
Sections 2-310.19-2-310.29. Reserved.
Ordinance No. 58-13-36 Page 47 of 47