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Ordinance No. 58-17-40 vORDINANCE NO. 58-17-40 AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE VI, EMPLOYEE BENEFITS, DIVISION 4, POLICE OFFICERS' RETIREMENT SYSTEM, OF THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC BEACH; AMENDING SECTION 2-300, DEFINITIONS; AMENDING SECTION 2-301, MEMBERSHIP; AMENDING SECTION 2- 303, FINANCES AND FUND MANAGEMENT; AMENDING SECTION 2-305, BENEFIT AMOUNTS AND ELIGIBILITY; AMENDING SECTION 2-310.4, MAXIMUM PENSION; AMENDING SECTION 2-310.5, MINIMUM DISTRIBUTION OF BENEFITS; AMENDING SECTION 2-310.16, PRIOR POLICE SERVICE; AMENDING SECTION 2-310.18, DEFERRED RETIREMENT OPTION PLAN; ADDING SECTION 2-310.199 SUPPLEMENTAL BENEFIT COMPONENT FOR SPECIAL BENEFITS; CHAPTER 185 SHARE ACCOUNTS; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. 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, of the Code of Ordinances of the City of Atlantic Beach, is hereby amended by amending Section 2-300, Definitions, to amend the definitions of "Actuarial Equivalent", "Credited Service", "Effective Date", and "Spouse", to read as follows: Actuarial equivalent means a benefit or amount of equal value, based upon the RP -2000 Combined Healthy Male Genefational Unisex Mortality Table pr.0jeeted by Seale AA, and an interest rate ° equal to the investment return assumption set forth in the last actuarial valuation approved by the board. 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. 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 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 0ffiicer shall not receive credit for the years 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 mib'tary 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 dft on vdich this ordHrance beconrs effective June 10, 2013. Spouse means the lawfid wife or husband of a member or re member's or retiree's spouse under applicable law at the time benefits become payable. 2 SECTION 2: That Chapter 2, Administration, Article VI, Employee Benefits, Division 4, Police Officers' Retirement Plan, of the Code of Ordinances of the City of Atlantic Beach, is hereby amended by amending Section 2-301, Membership, to read as follows: Sec. 2-301. Membership. Conditions of eligibility. All police officers as of the effective date, and all fixture new police officers, shall become members of this system as a condition of employment. Notwithstanding the previous sentence, a new employee who is hired as the Police Chief may, appoitiftneTt as Police ehie upon employment as Police Chiu notify the board and the City, in writing, of his election to not be a member of the system Current employees of the City who are selected to become Police Chief are not elijable for the opt-out provided for herein. In the event of any such election, he shalt be barred from fixture membership in the system mid any Yes ed acerwd benefit shaH be retained mid paid when otherwise payable hereir, or 111"W%, "ork 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. SECTION 3: That Chapter 2, Administration, Article VI, Employee Benefits, Division 4, Police Officers' Retirement Plan, of the Code of Ordinances of the City of Atlantic Beach, is hereby amended by amending Section 2-303, Finances and Fund Management, subsection (0(2)c., to read as follows: C. 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 Revenues Ruling 2011- 1, IRS Notice 2012-6 and Revenue Ruling 2014-21 or successor rulings or guidance of similar import, and operated or maintained exclusively for the commingling and collective investment of monies, provided that the fixnds 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 or a separate tax favored account maintained by an insurance company 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 fixnd are invested in such a group trust, such group trust is itself adopted as a part of the system or plan. 1. 2. The separate account maintained nursuant to subsection c. shall no 3 3. SECTION 4: That Chapter 2, Administration, Article V1, Employee Benefits, Division 4, Police Officers' Retirement Plan, of the Code of Ordinances of the City of Atlantic Beach, is hereby amended by amending Section 2-305, Benefit Amounts and Eligibility, subsection (a), Normal Retirement Date, to read as follows: (a) Normal retirement e an date. For ■wwwls■I�sil� /ww•Iw.■���•" _ I 1NMI- VJ 1- 4- MWA 14 1 91 1- - 1 9 .. 1 - 1- Uni-pUGI 194■ wi iI• ■ •I UIL; - -I 11 11pulp mrsolom• aM.-L-1-111I II1 • • • ■ • I• • •I 1.11aij- - I■ 1 Will IA • I • • • II ■1 • • A 1 -MWt M I = I I 19RI I = • • • For members hired before January 1, 2013, a member's normal retirement age is the earlier of the attainment of age fiftv (50) and the completion of twentv (20) years of years of credited service, the completion of twenty-five (25) years of credited service, reeardless of aize, or the attainment of aize sixty (60) and the completion of five (5) 1. 2013. a member's ten Each member shall become one hundred percent (100%) vested in his accrued benefit normal retirement age. A member's normal retirement date shall be the first day of the moi coincident with or next followiw the date the member retires from the city after attaining non retirement age. SECTION 5: That Chapter 2, Administration, Article V1, Employee Benefits, Division 4, Police Officers' Retirement Plan, of the Code of Ordinances of the City of Atlantic Beach, is hereby amended by amending Section 2-310.4, Maximum, Pension, subsections (h) and (1)(2), and by adding subsection (m), to read as follows: 2 (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 2-310.4 if 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 lirrritation year mid or for any prior knitation year.,. and the City has not at 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 Tint equal to ten thousand dollars ($10,000) muhiplied 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). e31EXXX3 (1)(2) No member of the system shall be aflowed 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 6T 1223, Title 10, U.S. Code. r©I wnicn is maintainea by me employer, any annum d using a more favorable actuarial basis than re in the annual benefit for numoses of the limit under SECTION 6: That Chapter 2, Administration, Article VI, Employee Benefits, Division 4, Police Officers' Retirement Plan, of the Code of Ordinances of the City of Atlantic Beach, is hereby amended by amending Section 2-310.5, Minim urn Distribution of Benefits, subsection (b)(2)d., to read as follows: (b)(2) 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). , 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 began is the date distributions actually corrnmence. 5 SECTION 7: That Chapter 2, Administration, Article VI, Employee Benefits, Division 4, Police Officers' Retirement Plan, of the Code of Ordinances of the City of Atlantic Beach, is hereby amended by amending Section 2-310.16, Prior Police Service, subsection (5), to read as follows: Jk � J� JAG X (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 06"(1)(2). SECTION 8: That Chapter 2, Administration, Article VI, Employee Benefits, Division 4, Police Officers' Retirement Plan, of the Code of Ordinances of the City of Atlantic Beach, is hereby amended by amending Section 2-310.18, Deferred Retirement Option Plan, to read as follows: 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). (3) "Total return of the assets" -- ncrease for aecrease► in me mieres ilized and unrealized gains (or losses (b) Participation. (l) 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 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 N 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 partici ation 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. 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 lunmp sum payments which would have been paid to the member and included as salary as defined herein, bad the member retired under normal retirement and not elected DROP participation. Member contributions attributable to any hump 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 supplemental benefit payable to DROP participants or 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. (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. 7 (2) Transfers From Retirement System. a. As of the fast 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 quwte, with earnings, to be credited or debited to the member's DROP account, determined as of the last business day of each fiscal year quarter and debited or credited as of such date, 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. management fees shall be determined for each quarter by the investment consultant pursuant to contracts with fiord managers as reported in the custodial statement. The investment consultant shall report these quarterly contractual fees to the board. The investment consultant shall also report the net investment return for each manager and the net investment return for the total plan assets. 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 of be eligble for pre- retirement death and disability benefits, and will not accrue additional Credited Service except as provided for in Section 2-310.17, Reemployment After Retirement. 0 (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 hmip sum or a rollover of the hunp 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 distnbutions 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. (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 0 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 deterrni<iation of an individuars 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 individual1y 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 fimn shed by an accountant or an actuary, and on all opinions of counsel. The board shall be My protected with respect to any action taken or suffered b 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. (fl General Provisions. . manner elect to accrue plan. Upon termination of employment, a member is entitled to a h9M sum distribution of his or her DROP account balance or may elect a rollover. The DROP in addition to (2) Notional account. The DROP account established for such a member is a notional account used only for the purpose of calculation of the DROP distribution amount. It is not a senarate account in the system. There is no chanee in the system's assets, N from the DROP. The member has no control over the investment of the DROP account. No employer discretion. The DROP benefit is determined pursuant to a specific formula which does not involve employer discretion. IRC limit. The DROP account distribution. along with other benefits payable from the system, is subiect to lin itation under Internal Revenue Code Section 415(b). (+ D 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 finds 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 0 Facility of Payment. If a member or other person entitled to a benefit under the DROP is unable to care for his aff i s 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 liabiliies of the DROP for that benefit. (3 7) Information. Each member, beneficiary or other person entitled to a benefit, before any benefit shall be payable to him or on bis 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 8) 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 9) 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 simffirly situated. The board reserves the right to change from tirm 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. 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 .LO) 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 firnish the DROP with any funds, securities or other assets except to the extent required by any applicable law. (7 LI) 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. (ft � 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 13 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 of DROP participants. SECTION 9: That Chapter 2, Administration, Article VI, Employee Benefits, Division 4, Police Officers' Retirement Plan, of the Code of Ordinances of the City of Atlantic Beach, is hereby amended by adding Section 2-310.19, Supplemental Benefit Component for Special Benefits; Chapter 185 Share Accounts; to read as follows: Sec. 2-310.19. Supplemental benefit component for special benefits; Chapter 185 share accounts. 2 (b) Share Account Funding. ral the maintenance of of the tnist fiord to Individual member share accounts shall be established as of September 30, 2015 for all members and DROP narticinants who were actively emnloved as of October 1 - Any_ which Any forfeitures as provided in subsection (d), shall be used as part of future allocations to the individual member share accounts in accordance with the formula set forth in subsection (c)(1). (c) Allocation of Monies to Share Accounts. Allocation of Chapter 185 Contributions. a. Effective as of September 30, 2015, the amount of allocated to the share plan shall be allocated to i accounts as provided for in this subsection. Memb October 1. 2014 and prior to Sentember 30. 2015 st my premium tax monies idividual member share ers retiring on or after all receive an allocation. b. On each valuation date, each current actively employed member of the plan not participating in the DROP, each DROP participant and each retiree who retires or DROP participant who has terminated DROP participation in the Dian vear ending on the vahaation date (including each disabflity retiree). or C- The total funds sub iect to aflocation on each vahaation date shall be allocated to each member share account of those eligible for an allocation in an amount equal to a fraction of the total amount, the numerator of which shall be the individual's total years and fractional parts of years of credited service as of the valuation date, and the denominator of which shall be the sum of the total years and fractional parts of years of credited service as of the valuation date of all individuals to whom allocations are beim made. Beneficiaries shall receive an allocation based on the years of credited service of the deceased member or DROP participant. d. Re-employed retirees shall be deemed new employees and shall receive an allocation based solely on the credited service in the reemployment period. (2) Allocation of Investment Gains and Losses. On each valuation date, each individual member share account shall be adjusted to reflect the net eaminms or losses resuhing from investments during the year. The net earnings or losses allocated to the 1 3 Net earnings or losses are determined as of the last business day of the fiscal year, which is the valuation date, and are debited or credited as of such date. Allocation of Costs. Fees and Expenses. On each valuation date, each individual member share account shall be adiusted to allocate its nro rata share ofthe costs. fees No Right to Allocation. The fact of allocation or credit of an allocation to a member's share account by the board shall not vest in any member, any right, title, or interest in the assets of the trust or in the Chanter 185 tax revenues except at the time or Members and DROP participants shall be provided annual statements setting forth their share account balance as of the end of the plan year. accordance with the formula set forth in subsection (c)(1). (e) Eligibility bility For BeneJts. as a police officer with the city or who (1) Retirement Benefit. a. A member shall be entitled to one hundred percent (1001/6) of the value of his share account upon normal or early retirement pursuant to Section 2-305, or if the member enters the DROP, upon termination of employment. b. Such payment shall be made as provided in subsection (fl. (2) Termination Benefit. a. In the event that a reason other than re the vabe of his shah 2-308. b. Such payment shall be rnade as provided in subsection (fl. (3) Disability Benefit. a. account. b. Such payment sball be made as provided in subsection (fl. (4) Death Benefit. a. b. Such payment shall be made as provided in subsection M. be permitted. Benefits Not Guaranteed. All benefits payable under this Section 2-310.19 shall be misconduct or lack of good faith. AR investments sbaU be made by the board subject to the restrictions otherwise annlicable to fiord investments. lh Notional account. The member share account is a notional account, used o& for the No employer discretion. The share account benefit is determined pursuant to a specific lbrmx a which does not involve employer discretion. 1 5 Maximum Additions. Notwithstanding any other provision of this Sectic is under this Section shall not exceed the limitations of Section 415(c) of the code rovisions of Section 2-310.4. subsection W. IRC limit. The share account distribution, along with other benefits payable from the system, is subiect to linritation under Internal Revenue Code Section 415(b). SECTION 10: Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Atlantic Beach SECTION 11: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 12: 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 13: That this Ordinance shall become effective upon its adoption. PASSED ON FIRST READING, this 10+l' day of AjOr1 1 92017. PASSED AND ADOPTED ON SECOND READING, this 241� day of Apri , 2017. ATTEST: Approved as to form: dm/ab/p ol/01 12 17.ord 5; ;5;- �-- 2 - � -"� �- MAYOR C.1