Exh 7BAgenda Item:
Date: -'
CITY OF ATLANTIC BEACH
CITY COMMISSIONER MEETING
STAFF REPORT
ITEM: Change to Code of Ordinances, Article VI, Employee Benefits,
Division 3, Retirement System
SUBMITTED BY: George Foster, Human Resource Manager
DATE: October 6, 1999
BACKGROUND: On March 12, 1999, Governor Bush signed into law CS/HB 261,
which substantially amended Chapters 175 and 185, Florida
Statutes dealing with Fire/Police Pension Funds.
This law requires that the City have a separate General employee
and Public Safety (Police) pension plan. Additionally, effective
June 1, 1999, the City transferred all active fire employees to the
City of Jacksonville and agreed to transfer all vested and retired
Fire Fighter to Jacksonville.
As the City currently has a combined Pension Plan which includes
General employees, Police employees and Fire employees, the
attached Ordinance establishing a General Employee Pension Plan,
a separate Police Pension Plan, and deleting references to the Fire
Pension Plan has been prepared by the law firm of Sugarman &
Susskind.
Prior to approval of these changes, an actuarial impact cost
statement must be prepared and sent, along with the proposed
Ordinance to the Sate of Florida, Division of Retirement, for their
review and approval.
FUNDING: As the City's pension benefits are currently equal to, or greater,
than those mandated by the CS/HB 261, this action should result in
no additional continuing costs to the City.
A cost impact statement on these changes must be prepared by the
Pension actuarial company of Gabriel, Roeder, Smith & Company
prior to the final reading of the Ordinance.
This cost impact statement will also establish the funds required to
be transferred to the City of Jacksonville to fund the active Fire
Fighter employees transferred to Jacksonville and also funds needed
to fully fund the vested and retired Fire Fighter pension liability
being transferred to Jacksonville.
RECOMMENDATION: That the City Commission:
1. Conduct a first reading of the attached ordinance.
2. N~esta ' h a date for a final reading until after:
A. An actuarial cost impact statement has been received, and
B. The State of Florida, Division of Retirement has reviewed
and approved these changes.
CITY MANAGER:
Attachment: 1. Proposed Ordinance
2. Summary of CS/HB 2
3. Current City Retirement Code
ORDINANCE NO. 58-99-26
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
FLORIDA, AMENDING CHAPTER 2, ADMINISTRATION,
ARTICLE VI, EMPLOYEE BENEFITS, TO COMPLY WITH
RECENT AMENDMENTS TO THE FLORIDA STATE
STATUTES, SEPARATING THE RETIIZEMENT SYSTEM
INTO A GENERAL EMPLOYEE PLAN AS DIVISION 3, AND
CREATING A POLICE OFFICER PLAN AS DIVISION 4;
PROVIDING IN DIVISION 3 OF THE GENERAL PLAN FOR
DELETION OF ALL REFERENCES TO POLICE OFFICER
OR FIREFIGHTER AND CHAPTERS 175 AND 185 OF THE
FLORIDA STATUTES; PROVIDING FOR A SINGLE
BENEFIT GROUP; PROVIDING FOR THE MAKE UP OF
BOARD OF TRUSTEES; PROVIDING FOR TRUSTEES'
TERMS OF OFFICE; PROVIDING FOR FILLING A BOARD
VACANCY; PROVIDING FOR THE CREATION OF
DIVISION 4, POLICE OFFICER RETIREMENT PLAN;
PROVIDING FOR COMPLIANCE WITH THE
REQUIREMENTS OF CHAPTER 185 OF THE FLORIDA
STATUTES; PROVIDING FOR THE DEFINITION OF
SPECIFIC TERMS; PROVIDING FOR A BENEFIT GROUP;
PROVIDING FOR A BOARD OF TRUSTEES, THEIR
DUTIES, COMPOSITION, TERMS OF OFFICE, FH.LING OF
VACANCIES, AND ACTUARIAL RESPONSIBII.ITIES;
PROVIDING FOR MEETING REQUIREMENTS, QUORUM,
VOTING, AND COMPENSATION; PROVIDING FOR THE
ELECTION OF BOARD OFFICERS AND EMPLOYMENT OF
INDEPENDENT ADVISORS; PROVIDING FOR
MEMBERSHIP REQUIREMENTS; PROVIDING FOR
CREDITED SERVICE, LOSS, AND REINSTATEMENT OF
SAME; PROVIDING FOR MILITARY SERVICE CREDIT;
PROVIDING FOR VOLUNTARY RETII2EMENT AND
EMPLOYMENT AFTER RETIItEMENT; PROVIDING FOR
DISABII.ITY RETIREMENT BENEFITS; PROVIDING FOR
PERIODIC REEXAMINATION OF DISABILITY
RECIPIENTS; PROVIDING FOR A STANDARD PENSION
BENEFIT AND OPTIONAL PENSION BENEFITS;
PROVIDING FOR SURVIVOR PENSION BENEFITS;
PROVIDING FOR COMPLIANCE WITH THE INTERNAL
REVENUE CODE AS TO MAXIMUM BENEFITS;
PROVIDING FOR SUBROGATION; PROVIDING FOR CITY
AND EMPLOYEE CONTRIBUTIONS; PROVIDING FOR THE
PROHIBITION OF ASSIGNMENTS; PROVIDING FOR A
SAVINGS CLAUSE; PROVIDING FOR SEVERABILITY;
PROVIDING FOR CODIFICATION AND PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, the City of Atlantic Beach, Florida has an interest in the future retirement of its
employees and wishes to improve the retirement system whenever feasible; and
WHEREAS, the City of Atlantic Beach, Florida recognizes the requirement to ensure
compliance ofits pension ordinance and all sections thereofwith all State and Federal laws governing
governmental pension plans; and
WHEREAS, the Legislature of the State ofFlorida made significant amendments to Chapters
175 and 185 of the Florida statutes that require amending the Code of Ordinances of the City of
Atlantic Beach, and
WHEREAS, Firefighters are no longer employed by the City of Atlantic Beach; and
WHEREAS, Chapter 2, Administration, Article VI, Division 3, Retirement System, of the
Code of Ordinances of the City of Atlantic Beach, Florida, must comply with all State and Federal
laws governing pension plans it is hereby amended as follows:
NOW THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF THE
CITY OF ATLANTIC BEACH, FLORIDA, AS FOLLOWS:
Section 1. Chapter 2, Administration, Article VI, Division 3, Retirement System of the
Code of Ordinances is hereby amended as follows:
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DIVISION 3. GENERAL EMPLOYEE RETIREMENT SYSTEM
Sec. 2-262. Definitions.
City employee shall mean any person in the employ of the city, other than Police Officers and
Firefi hg ters•
Compensation shall mean the salary or wages paid a member for personal service rendered
the city. Compensation shall include base salary or wages, longevity pay, overtime pay, cost ofliving
payments, salary or wages while absent from work on account of vacation, holiday, or illness; and
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 any other item not specifically included.
• ,
Sec 2-263. Benefit groups.
(a) The following benefit groups-are is hereby designated for the purpose of
determining a retirement system member's applicable benefit eligibility conditions and benefit
amount:
(1} Benefit group general shall consist of all members not included in
,another citespension plan.
(2) ,
(3)
(b) Benefit eligibility condition shall be based on the member's benefit group at the time
of termination of city employment. Benefit amounts shall be based on the amount of credited
service acquired in each benefit group e~neral.
Sec. 2-266. Same -Composition.
The board of trustees shall consist of five (5) trustees as follows:
(1) Two (2} residents of the city to be selected by the city commission and serve at the
pleasure of the city commission, who may also serve as trustees of the police officer
retirement system created in division 4 hereof;
(2) 6ne-{-fj-Two 2 members of the retirement system who
a-fi~~fighterare employees of the city, but not olice
officers or firefighters, to be elected by the members of the retirement system who are
also similarly situated employees of the city;
(3)
(#}~3,~ One (1) resident of the city to be selected by the other four (4) members of the board
of trustees, and whose appointment shall be confirmed by a vote of the city
commission.
The elections provided for in subsections (2) and-(3-j-of this section shall be held in
accordance with such rules as the board of trustees shall from time to time adopt.
Sec. 2-267. Same -Term of office; oath of office.
The regular term of office of a member of the board of trustees shall be four (4) years for
civilian members, and four (4) years for employee representatives, unless they terminate employment,
whereupon a new election will be held by the members of the plan to fill the unexpired term of their
trustee representatives, and one (1}year for the trustee selected by the other four {4) members of the
board. Each trustee shall, before assuming the duties of trustees, qualify by taking an oath of office
to be administered by the city clerk, whereupon a trustee's term of office shall begin. However, upon
the expiration of the terms of the civilian trustees and employee representative trustees in office at
the time this article is adopted, the term of the next succeeding civilian member shall be for one (1)
year and the term for the next succeeding
- - employee
representative shall be for three (3) years, with all civilian member and employee representative
trustees having four-year terms thereafter.
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Sec.2-271. Membership.
Effective June 1, 1999, all firefighter emplovees of the City of Atlantic Beach are
hereby consolidated into the City of Jacksonville Fire Department. On execution of this action, Citv
of Atlantic Beach firefighter emplovees became members of the City of Jacksonville Police and Fire
Pension Fund with full rights and benefits in accordance with Chapter 121, City of Jacksonville
Ordinance Code, and with other applicable law. Such consolidation is in accordance with Resolutions
95-944-256 and 98-1006 of the City of Jacksonville, which provide for an Interlocal Agreement
between the Cities of Jacksonville and Atlantic Beach entered into by these Cities effective on the 1st
day of June 1999: and the Citv of Jacksonville's Ordinance 1999-472-E, which was enacted on the
25`'' day of May. 1999 and approved on the 1st day of June 1999.
Sec. 2-272. Credited service.
Service rendered by a member of the retirement system shall be credited to the member's
individual credited service account in accordance with rules the board of trustees shall from time to
time prescribe and in accordance with the applicable provisions of ,the Florida
Statutes. In no case shall more than one (1) year of credited service be credited on account of all
service rendered by a member in any one period of twelve (12) consecutive calendar months. Service
shall be credited to the nearest one-twelfth of a year. Service shall be credited for the total number
of years, and fractional parts of years, of service of the member.
Sec. 2-276. Voluntary retirement conditions; employment after retirement.
(a) A member of the retirement system may retire upon satisfaction of each of the
following requirements:
(3) The member has met errs-of~the age and service requirements for retirement specified
in subsection (b)
Upon retirement, a member shall be paid a pension computed according to the applicable subsections
of section 2-281.
(b) The age and service requirements for voluntary retirement are-as--follovns:
- ,
service-in-forge;
- >
servi~cerirrforce;
~} age sixty (60) years or older, and
hasfive (5) or more years of credited service in force.
Sec. 2-278. Deferred retirement upon separation from employment (vesting).
(b) The credited service requirement for separation from city employment with entitlement
to deferred retirement is:
. five (5) years.
Sec. 2-279. Disability retirement -General conditions for eligibility.
(a) A member having five (5) or more continuous years of credited service and having
contributed to the retirement system for five (5) years or more may retire from the service of the city
if he becomes totally and permanently disabled as defined in subsection (b) by reason of any cause
other than a cause set out in subsection (c). Such retirement shall herein be referred to as "disability
retirement". ..
(a) A member will be considered disabled if, in the opinion of the board of trustees,
the member is totally and permanently prevented from rendering useful and efficient
service
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> >
> >
(3-) has a city employe , '
(e) The benefits payable to a member who retires from the service of the city with a total
and permanent disability as a direct result of a disability commencing prior to his normal retirement
date is the monthly income computed according to the applicable subsections of Section 2-281; -ar
- ,
greater.
(g) If the board of trustees finds that a member who is receiving a disability retirement
income is, at any time prior to his normal retirement date, no longer disabled, as provided herein, the
board of trustees shall direct that the disability retirement income be discontinued. Recovery from
disability as used herein means the ability of the member to render useful and efficient service as an
employee of the city '
Sec. 2-280. Same -Continuation subject to re-examination; return to employment.
(a) The Board of Trustees may require a disability retirant to undergo periodic medical
examination if the disability retirant has not attained age sixty~602 e~ars.:-
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Sec. 2-281. Amount of level straight life pension.
(cJ Benejrt group general. Subject to section 2-285, the amount of level straight life
pension shall be equal to the retiring member's benefit group general credited service multiplied by
the sum of two and eighty-five hundredths (2.85) percent of the retiring member's final average
compensation.
(db} Cost-of-living adjustment. All retirement system members and beneficiaries who
retired prior to January 1, 1997, shall receive aone-time cost-of-living adjustment, which shall be in
an amount equal to three (3) percent of the benefits paid to such retired members and beneficiaries
during the immediately preceding month.
Sec. 2-284. Alternate death while in city employment pension to spouse and/or children.
(b) The person to whom the deceased member was married at the time of death shall be
paid a pension equal to a seventy five percent 75% of the amount of level straight life pension
computed according to the applicable subsection of Section 2-281, based on the deceased member's
final average compensation and credited service.
cent:-
A surviving spouse's pension shall terminate upon death,
(c) 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 level straight life pension computed according to the applicable subsection of
Section 2-281, based on the deceased member's final average compensation and credited service.
The percent shall be
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. zero (0) percent during periods a pension is being paid in
accordance with the provisions of subsection (b)-; Ffifty (50) percent during periods
a pension is not being paid in accordance with the provisions of subsection (b).
A surviving child's pension shall terminate upon attainment of age nineteen (19) years or, if
over nineteen (19), but less than twenty three t23), upon no longer being enrolled as a full-time
student in an educational institution, marriage, or death, and the pension of each remaining eligible
child shall be recomputed.
Sec. 2-288. City contribution.
(a) The plan shall be funded by contributions from member contributions, as provided in
Section 2-298, ,contributions from the city
and other income sources as authorized by law.
(b)
. ,
~} City contributions shall be made to the plan, on at least a quarterly basis, in an amount
which, together with the member contributions provided for in section 2-298 and tlr~;-~st~at~-preir~ium
other income sources as authorized by law, sufficient
to meet the normal cost of the plan and to fund the actuarial deficiency over a period of not more than
forty (40) years, as determined by the Florida Statutes required annual actuarial valuation.
Such contributions shall be computed as level percents of member payroll in accordance with
generally accepted actuarial principles on the basis of such rates of interest and tables of experience
as the board of trustees shall from time to time adopt.
. The board shall annually certify to the city the
contributions determined according to this section, and the city shall appropriate and pay to the
retirement system, the contributions so certified.
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(dc) All benefits and expenses shall be paid in accordance with the provisions of this
pension plan and consistent with Florida Statutes and the Internal Revenue Code.
Sec. 2-290. Investment of retirement system assets.
The board of trustees shall be the trustee of the monies and assets of the retirement system.
The board shall have full power and authority, in their sole discretion, to invest and reinvest such
funds as are not necessary for current expenditures or liquid reserves, as they may from time to time
determine. The trustees may sell, exchange, or otherwise dispose of such investments at any time.
The trustees shall have the authority, in respect to any stocks, bonds, or other property, real or
personal, held by them as trustees, to exercise all such rights, powers and privileges as might be
lawfully exercised by any person owning similar stocks, bonds, or other property in his own right.
The trustees are authorized to
Viand invest in those stocks, bonds and other securities permitted by the investment policies or
guidelines adopted by the trustees.
(a} Delegation and Allocation of Investment Functions.
(1) The Trustees shall have the power and authority to appoint one or more
investment managers who shall be responsible for the management,
acquisition, disposition, investing, and reinvesting of such of the assets of the
Trust Fund as the Trustees shall specify. Any such appointment may be
terminated by the Trustees upon written notice. The fees of such investment
manager shall be paid out of the Trust Fund. The Trustees shall require that
the investment manager acknowledge in writing that it is a named fiduciary
with respect to the plan.
(2) In connection with any allocation or delegation of investment functions under
this section, the Trustees shall, from time to time, adopt appropriate
investment policies or guidelines,
Sec. 2-291. ~ivYSiQns Reserved.
~Eparate
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Sec. 2-298. Member contributions.
are-~made:-
(ba) Member contributions for benefit group general shall be two (2) percent of salary and
said contribution shall be deducted from the member's pay and paid over into the retirement system
at the-same-timE--asleast monthly .
(cb) The City of Atlantic Beach shall assume and pay the member contributions set forth
above in lieu of payroll deductions from members' earnings. No member shall have the option of
choosing to receive the contributed amounts directly instead of having them paid by the city directly
to the retirement system. All such contributions by the city shall be deemed and considered as part
of the member's contributions and subject to all provisions of this plan pertaining to contributions of
members. Such contributions shall additionally be considered as part of the member's compensation
for purposes of determining final average compensation and other benefits hereunder and for
determining the member's hourly wage rate for purposes of FICA contributions, worker's
compensation, and overtime compensation. This city pick up of contributions is a result of a
commensurate reduction of each member's pay which occurred on January 1, 1997, and is intended
to comply with Section 414(h)(2) of the Internal Revenue Code.
(dc)If an employee leaves the service of the city before accumulating aggregate time of five
(5) years toward retirement and before being eligible to retire under the provisions of this article
he/she shall be entitled to a refund of all of his/her contributions made to the city pension trust fund,
plus any interest accumulated at a rate of interest determined annually by the board of trustees, less
any disability benefits paid to him/her. If an employee who has been in the service of the city for at
least five (5) years and has contributed to the pension trust fund upon attaining the age as required
in section 2-278, may retire with the actuarial equivalent of the amount of such retirement income
otherwise payable to him/her,
(ed) If a member who terminates employment elects a refund of contributions and:
(1) Some or all of the refund is eligible for rollover treatment, as defined by the iInternal
rRevenue sService;
(2) Elects to have such eligible distribution paid directly to an eligible retirement plan or
IRA, and
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(3) Specifies the eligible retirement plan or IRA to which such distribution is to be paid
(in such form and at such time as the distributing plan administration may prescribe),
The distribution will be made in the form of a direct trustee-to-trustee transfer to the specified eligible
retirement plan.
Section 2. Chapter 2, Administration, Article VI, Division 4, Police Officer Retirement
System of the Code of Ordinances is hereby created as follows:
DIVISION 4. POLICE OFFICERS' RETIREMENT SYSTEM
Sec. 2-261A. Created, purpose.
The Police Officers' Retirement Svstem is hereby created and established for the purpose of
providing~ensions and death benefits for the Police Officers of the citti and their dependents in
accordance with Chapter 185 of the Florida Statutes. The effective date of the retirement Svstem is
on adoption of this ordinance. However, all benefits in existence under all previous retirement
systems or plans effective after December 22, 1975 shall remain in effect and be included as a part
of this retirement system.
Sec.2-262A. Definitions.
The following words and phrases as used in this division shall have the followin mg earrings
unless a different meaning is clearlyrequired by the context:
Actuarial equivalent shall mean that any benefit payable under the terms of this plan in a form
other than the standard form of benefit for members shall have the same actuarial present value on
the date payment commences as such standard form of benefit. For the purpose of establishing the
actuarial present value of any form of payment,, all future payments shall be discounted for interest
and mortalit~~sing the 1983 Group Mortality Table, with ayes set ahead five (5) years in the case
of disability.
BeneficiarX shall mean an~person who is bein~,paid, or has entitlement to future payment,
of apension or other benefit by the retirement svstem for a reason other than the person's membership
in the retirement svstem.
Board of trustees or board shall mean the board of trustees provided for in this division.
City shall mean the City of Atlantic Beach, Florida.
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Compensation shall mean the total cash remuneration paid a member for service rendered to
the city Compensation shall include base sal or wa e~ s, longevity pay, overtime pay cost ofliving
payments salary or wages while absent from work on account of vacation, holiday. or illness, and
will also include incentive ~av as defined in Chapter 943.22 Florida Statutes. Compensation shall not
include redemptions or payments in consideration of the value of any fringe benefit, equ_pment
allowance reimbursement of expenses or any other item not specifically included or payments for
extra duty or a special detail work performed on behalf of a second party employer.
Credited service shall mean the service credited a member as provided in this division.
Final average com,~ensation shall mean one/sixtieth ofthe aggregate amount of compensation
paid a member during, the period of sixt~(60~ months of the member's credited service in which the
aggregate amount of compensation paid is greatest. The sixty~60~ months of credited service must
be contained within the member's last one hundred twenty 120) months of credited service. If a
member has less than sixty (601 months of credited service, final average compensation means the
aggregate amount of compensation paid the member divided by the member's months of credited
service.
~V~lember shall mean an~person who is a member of the retirement system.
Pension shall mean a series of monthl~payments by the retirement system throughout the
future life of a retirant or beneficiary, or for a temporary period, as provided in this division.
Pension reserve shall mean the present value of all pa~rrients likely to be made on account of
pension. The resent value shall be computed on the basis of such mortality and other tables of
experience and regular annual compound interest as the aetuar~ppointed by the board of trustees
shall from time to time determine.
Police officer shall mean a city emplo ey a emplo~b~e police department who is certified
or required to be certified as a law enforcement officer in compliance with Sections 185.02(11) and
943.14, Florida Statutes, and who holds the rank of patrol officer or higher, includingLprobationary
patrol officer. The term police officer shall not include andcivilian city employee employed in the
police department, anYperson employed as a police officer for an emergency, or antiperson privately
employed as a police officer.
R~ular interest shall mean such rate or rates of interest per annum, compounded annuallX,
as the board of trustees shall from time to time adopt.
Retirant shall mean andperson who has satisfied the condition for receiving a benefit and is
being paid a pension by the retirement system on account of the t~erson's membership in the
retirement system.
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Retirement systems or system shall mean the city retirement plan created and established bX
this division.
Service shall mean personal service rendered to the city by a police officer.
Workers' compensation benefits shall mean any amounts paid a retirant, beneficiar +~spouse.
or child_pursuant to any workers' compensation or similar law. Redemptions or settlements of
workers' compensation claim shall be considered workers' compensation benefits. Payments in
consideration of medical expenses shall be disregarded in the determination ofworkers'compensation
benefits.
Sec. 2-263A. Benefit groups.
~ The following`benefit group is hereb~desig~ated for the purpose of determining a
retirement system member's applicable benefit eligibility conditions and benefit amount:
Benefit group police shall consist of all members who are also police officers.
Benefit eligibility conditions shall be based on the member's benefit oup at the time
of termination of city employment. Benefit amounts shall be based on the amount of credited service
acquired in benefit groin police.
Sec. 2-264A. Board of trustees -Responsibilities and duties generally.
The general administration, management, and responsibility for the proper operation of the
retirement system, for construing, interpreting, and making effective the provisions of this division,
and for making recommendations tothe city commission on matters concerning this retirement system
are vested in the board of trustees.
Sec. 2-265A. Same -Actuarial data; report to city commission.
(a) The board shall keep or cause to be kept, in convenient form, such data as shall be
recommended by its actuary and as required by state law (Chapters 112 & 185 F. S.) for the operation
of the retirement system on a sound actuarial basis. The board shall keep or cause to be kept, in
convenient form, such additional data as is required to properly report the operations of the system.
The board shall render all reports required b state Chapter 185, F.S.) or federal law
to appropriate agencies. with a copy to the city commission, on or before the first day of Aril of each
year showing the fiscal transactions of the retirement system for the year ended the preceding thirtieth
day of September, the assets ofthe retirement system as ofthe preceding thirtieth day of September.
and a copy of the most recent actuarial report.
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See. Z-266A. Same -Composition.
The board of trustees shall consist of five (,5) trustees as follows:
~1,~ Two~2~, unless otherwise prohibited by law, shall be legal residents of the city,
appointed by the city commission, who may serve as trustees of other City Boards
including the General Employees Retirement S sy tem provided herein;
Two 2) Police Officers to be elected by the active police officers who are members
of the retirement s, sy tem;
One ~ 1) trustee to be selected by the other four (4) members of the board of trustees,
and appointed as a ministerial act b, t~ he city commission.
The elections provided for in subsection (2) of this section shall be held in accordance with
such rules. as the board of trustees shall from time to time adopt.
Sec. 2-267A. Same -Term of office; oath of office.
The reQUlar term of office of a member of the board of trustees shall be two (2) years for resident
appointees, and two (2) years for elected representatives, unless they terminate emplo ment.
whereuQon a new election will be held by the members of the plan to fill the unexpired term of their
trustee representatives. The term of office for the trustee selected b~ the other four members of the
board shall be two (22years. Each trustee shall, before assuming the duties of trustees, qualify by
taking an oath of office to be administered by the city clerk, whereupon a trustee's term of office shall
be in.
Sec. 2-268A. Same -Vacancy; filling of vacancy
(a) A vacancy shall occur on the board of trustees if any member resi n~ s or any employee
representative ceases to be employed by the city.
~b,~ If a vacancy occurs on the board of trustees, the vacancy shall be filled within ninety
X90) days for the unexpired term, in the same manner as the position was previously
filled.
Sec. 2-269A. Same-Meetings; quorum; voting; compensation.
The board of trustees shall hold meetings regularly, at least one (1) in each calendar quarter, and shall
designate the time and place of each meeting. All meetings of the board shall be open to the public.
15
Notice of such meetings shall be hosted on employee bulletin boards so that all members will be
aware of the meeting_ The board shall adopt its own rules of procedure and shall keen a record of
its proceedin s Three 3) trustees shall constitute a quorum at any meeting_of the board, and at least
three (3) concurring votes shall be necessary for a decision by the board. Each trustee shall be
entitled to ones 1) vote on each question before the board. Trustees shall serve without compensation
for their services as trustees but shall be entitled to their expenses actually and necessarily incurred
in attending meetings of the board and in performing_required duties as trustees in accordance with
Florida Law.
Sec. 2-270A. Officers and employed services.
The officers and employed services of the retirement system shall be as follows:
~1,~ Charperson: The board shall annually elect a chairperson from its members.
(2) Secretary. The board shall annually elect a secretary of the board from its members.
who shall sign the minutes of each meeting and be the custodian of the retirement
stem's records and shall perform such duties as required in Chapter 185 of the
Florida Statutes.
(3) Leal Advisor: the board is empowered to employ independent legal counsel.
Actuary: The board is embowered to employ an independent actuary who shall be the
technical advisor to the board regardin tg he operation of the retirement system on an
actuarial basis, and who shall perform such services as are required in connection
therewith. The term actuary as used in this division shall mean an "enrolled actuary"
who is enrolled under Subtitle C of Title III of the Employee Retirement Income
Security Act of 1974 and who is a member of the Society of Actuaries of the
American Academy of Actuaries. A ,partnership or corporation may be appointed
actuary if the duties of the actuary are performed by or under the direct supervision
of an enrolled actuary and the enrolled actuary sins and is responsible for all final
documents submitted by the partnership or corporation.
Administrative Manager: The board is empowered to employ or contract for the
services of an individual, firm, or corporation, to be known as the "administrative
manager", who shall, under the direction of the board or an~ppropriate committee
thereof, be ministerially responsible to:
~ Administer the office or offices of the retirement system and of the board:
,~b~ Coordinate and administer the accounting, bookkeeping, and clerical services:
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~ Provide for the coordination of actuarial services furnished by the actuary;
Prepare (in cooperation or appropriate with the consultin a.~ ctuarv or other
advisors) reports and other documents to be prepared, filed or disseminated
by or on behalf of the retirement system in accordance with law:
~ Perform such other duties and furnish such other services as ma bye assigned,
delegated or directed or as maybe contracted by or on behalf of the board.
Other Services: The Board is authorized and empowered to employ such
professional medical technical or other advisors as are required for the pry
administration of the retirement system. These services shall be obtained and the
compensation for these services shall be determined in accordance with procedures
established by the board in accordance with Chapter 185 of the Florida Statutes.
Sec.2-271A. Membership.
~ All persons who are city~nolice officers, and all persons who become citespolice
officers, shall be members of the retirement system, except as provided in subsection (bl of this
section.
,~b,~ The chief of the police department ma~pt not to become a member of the retirement
stem. Such option shall be made within sixty (60) dates of appointment as police chief and shall be
irrevocable.
Sec. 2-272A. Credited service.
Service rendered by a member of the retirement system shall be credited_to the .member's individual
credited service account in accordance with rules the board of trustees shall from time to time
prescribe and in accordance with the applicable provisions of Chapters 185, Florida Statutes. In no
case shall more than one (12vear of credited service be credited on account of all service rendered
by a member in any one period of twelve (12) consecutive calendar months. Service shall be credited
to the nearest one-twelfth of a year. Service shall be credited for the total number of years, and
fractional parts of years, of service of the member.
Sec. 2-273A. Loss of credited service.
A retirement system member's credited service shall be forfeited and no loner in force if the
member terminates cit~m_..ployment with less than five (5) years of credited service.
17
Sec. 2-274A. Reinstatement of credited service.
A member's forfeited credited service shall be restored to his/her individual service account
if re-employment by the city and membership in the retirement system occurs within five (5) years
from and after the date of separation from city employment that caused the forfeiture, provided that
the member re~pavs to the retirement stem the contributions refunded under Section 2-298A(c)
hereof plus interest at the actuarially assumed rate in accordance with terms established by the board
of trustees.
Sec. 2-275A. Military service credit.
~ A member of the retirement system who leaves or left city employment voluntarily or
non-voluntarily to enter any_armed service of the United States during time of war, period of
compulsory_militarxservice or period of national emer,•„ e~ncy reco m~ 'zed by the city commission shall
have required periods of active duty credited as city service subject to the following~conditions:
The member is re-emplo ey d by the city as provided in the Uniformed Services
Employment and Reemployment Ri ht~ s Act~L.TSERRA) after the date oftermination
of such active duty:
In no case shall more than the years of service provided for in USERRA be credited
on account of all military service.
~, Notwithstandin~anyprovision of this article to the contrary, contributions, benefits,
and service credit with respect to qualified military service will be provided in
accordance with USElZRA and section 414(u} of the Internal Revenue Code.
,~ The board of trustees shall determine the amount of service to be credited a member
under the provisions of this section and USERRA.
Sec. 2-276A. Voluntary retirement conditions; employment after retirement.
~ A member of the retirement system may retire upon satisfaction of each of the
following requirements:
The member files written application for retirement with the board of trustees setting
forth the date retirement is to be effective.
The member terminates all his/her city employment prior to the date retirement is to
be effective.
l8
~3,) The member has met the aye and service requirements for retirement specified in
subsection (b).
Upon retirement a member shall be paid a pension computed according to the applicable subsections
of section 2-281 A.
The age and service requirements for voluntary retirement are:
Normal Retirement: the member has attained the age of fifty-five 552years and has
ten ,l0~vears of credited service in force; the member at any age has twenty-five 25)
years of credited service in force; or, the member has attained the ale of sixt~(60)
years, and has five (5) years of credited service in force.
Early Retirement: the member has attained the a eg of fifty (SOSyears and has ten years
of credited service in force.
~ Employment after retirement:
(1) Any person who has retired as a member ofthis retirement system may be reemployed
by the city in a position normally requiring less than 1000 hours of work per annum
or in aposition not covered b~pension plan and receive retirement benefits from
his/her previous employment and compensation from his/her reemployment.
Andperson who has retired as a member of this retirement system and is subsequentlX
reemployed b, t~t~an~position normally requiring 1000 hours or more ofwork
per annum or in a position covered b~pension plan shall have his/her pension
benefit suspended duringthe period of such reemployment and shall receive additional
credited service from his/her reemployment.
Sec. 2-277A. Normal Retirement Date and Payment Date.
~ The normal retirement date of each member shall be the first day of the month
following the effective retirement of the member as indicated in the member's retirement ap hp 'cation
and as approved by the Board of Trustees.
(b) The monthly retirement income payable in the event of normal retirement shall be
payable on the first day of each month and as provided in Section 185.16(3).
19
Sec. 2-278A. Deferred retirement upon separation from employment (vesting).
(a) Amember ofthe retirement system who terminates city employment prior to satisfying
the requirements for voluntary retirement under Section 2-276A for a reason other than retirement
or death, who has not received a refund of his/her member contributions, and who has the applicable
period of credited service specified in subsection (b) shall remain a member and be entitled to be paid
a pension upon attaining the age and service requirements for voluntary retirement, as set forth in
Section 2-276A. Upon attaining the age and service requirement for voluntary retirement, the
member shall be paid a pension computed according to the applicable subsections of Section 2-281A
as those subsections were in force at the time a member left city employment.
(b) The credited service requirement for separation from city employment with entitlement
to deferred retirement is five (5) years.
Amember of the retirement system who terminates city employment prior to satisfying the five (~
ey ar requirement for deferred retirement under Section 2-276A is entitled to a full refund of his/her
contributionsLplus interest as determined by the board of trustees.
Sec. 2-279A. Disability retirement -General conditions for eligibility
~ If a member, prior to his normal retirement date. becomes totall~permanently
disabled as defined in subsection (b) by reason of any cause other than a cause set out in subsection
(c~ the member shall be eligible for disability retirement. The minimum benefit for any member
disabled in the line of duty shall be forty-two (42) percent of the final avers eg salary, regardless of
years of credited service. The minimum benefit for any member disabled not in the line of du , who
has eight and one third (81/3~years of credited service shall be twen -five 25) percent of the final
avers eg salary.
,(1~ A permanent disability which is the result of or caused by tuberculosis. hepatitis
meningococcal meningitis hypertension. heart disease. or hardening of the arteries
shall be presumed to have been incurred in the line of duty unless the contrary is
shown by Competent evidence or unless a physical examination of the member
conducted upon initial hiring by the city revealed the existence of such condition at
that time. and provided that a member claiming disability due to tuberculosis or
menin~;ococcal menin~tis provides the affidavit required by F.S. section 112.181(2)
~b,~ Amember will be considered disabled if, in the opinion of the board of trustees the
member is totally and permanentlv~revented from rendering useful and efficient service as a city
police officer or firefighter and will be considered permanently disabled if in the opinion ofthe board
of trustees. he is likely to remain so disabled continuously and permanently from a cause other than
as specified in subsection (c).
20
~, A member will not be entitled to receive anv disability retirement income if disability
is as a result of
Excessive and habitual use by the employee of drugs intoxicants, or narcotics;
~2~ Iniurv or disease sustained bX the employee while willfully and illegally participating
in fights riots or civil insurrections or while committing a crime;
Injury or disease sustained by the emplovee while servin i.~n anv armed forces; or
~ Iniur~ or disease sustained by the emplovee after his/her employment has terminated.
, Iniurv or disease sustained by the police officer while workin fg or anyone other than
the cit y and arising out of such emplo ment.
No member shall be_,permitted to retire under the provisions ofthis section until he/she
is examined by a duly qualified physician surgeon or other medical or psychological professional to
be selected by the board of trustees for that purpose and is found to be disabled in the de egr a and
in the manner specified in this section. Andmember retiring, under this section may be examined
~eriodicall~y a dullqualified Qhysician surgeon or other medical or ps c~olo ig cal professionals
or board of physicians surgeons and other medical or ps cy holo.~professionals to be selected by
the board of trustees for that purpose to determine if such disability has ceased to exist. If a member
refuses to submit to such an examination the member's disabilitypension shall be suspended until
such time as the member submits to the examination.
~ The benefits payable to a member who retires from the service ofthe city with a total
and permanent disability as a direct result of a disability commencing_prior to his/her normal
retirement date, is the greater of the monthly income computed according to the applicable
subsections of Section 2-281A or the minimums established in Section 2-279A(a).
~ The monthly retirement income as computed in Section 2-281A to which a member
is entitled in the event of his/her disability retirement shall be payable monthly after the board of
trustees determine such entitlement retroactive to the date of application or the last da~payroll,
whichever is later. If the member recovers from the disability.prior to his normal retirement date, the
last payment will be the payment due next preceding the date of such recovery. If the member dies
without recovering, from his disability or attains his/her normal retirement date while still disabled,
the last payment will be the payment due next preceding his/her death.
~ If the board of trustees finds that a member who is receiving a disability retirement
income is, at an,, t~prior to his normal retirement date, no longer disabled, as provided herein, the
board of trustees shall direct that the disability retirement income be discontinued. Recovery from
disability as used herein means the ability of the member to render useful and efficient service as a
police officer emplovee of the city, regardless of whether the member is re-employed by the city.
21
If the member recovers from disability and reenters the service of the city as a police
'officer employee his/her service will be deemed to have been continuous, but the period be.Qnnn~
with the first month for which he/she received disability retirement income payment and ending with
the date he/she reentered the city service will not be considered as credited service for the purpose
of the svstem.
Sec. 2-280A. Same-Continuation subject to re-examination; return to employment.
(a) The Board of Trustees may require a disability retirant to undergo periodic medical
or psychological examination if the disability retirant has not attained age sixty (60).
If a disability retirant refuses to submit to a medical or psychological examination,
payment of the disability pension maybe suspended by the board of trustees until the retirant submits
to the examination.
~, A disabilityretirant who has been restored to employment with the city as provided
in subsection 2-280(h) shall again become a member of the retirement system. Service shall be
credited for the period the disability retirant was being_paid a disability pension.
Sec. 2-281A. Calculation of pension benefit.
~ Subject to section 2-285A, the amount of the pension benefit payment shall bee ucl._al
to the retiring member's credited service multiplied b three 3~percent of the retiring member's final
avera eg compensations calculated as a ten (l0~year certain and life thereafter benefit.
~b~ Cost-of-livin~diustment. All retirement svstem members and beneficiaries who
retired prior to January 1 1997 shall receive gone-time cost-of-living adjustment, which shall be in
an amount equal to three ~3) percent of the benefit aid to such retired members and beneficiaries
during the immediately precedin mg onth.
Sec. 2-282A. Optional forms of pension payment.
A member of the retirement plan may elect to be paid under one (1) of the following optional
forms of payment in lieu of a ten-~1 O~vear certain life thereafter form of payment. The election must
be made in writing and filed with the board of trustees prior to the date retirement is effective.
Payment will be made under a ten (1 O~vear certain life thereafter form of benefit if a timely election
of an optional form of payment is not made. The amount of pension under any option shall be the
actuarial equivalent of the amount of pension under a ten (l0~vear certain life thereafter form of
~.
22
(1) Option A • Retirant's life only' Under Option A a retirant shall be paid an increased
pension for life.
Option B • Modified joint survivor pension: Under Option B, a retirant shall be paid
a reduced pension for life with the provision that upon the retirant's death, a benefit
as designated by the retirant of either. one hundred (100), seventy-five (75), sixty-six
and two thirds (66-2/31 or fifty (SOSpercent of the reduced pension benefit shall be
continued throughout the future lifetime of and paid to such person as the retirant
shall have specified b~written designation dullexecuted and filed with the board of
trustees at the time of election of the optional form of pati ent.
(3), Option C• Social security coordinated pension: Under Option C, a retirant shall be
,paid an increased pension to attainment of the age when the retirant is eli 'bgi le to
receive regular social security retirement benefits, and a reduced pension thereafter
The increased pension paid to attainment of regular social security retirement a eg shall
approximate the sum of the reduced pension payable thereafter plus the retirant's
estimated social securit~primarv insurance amount.
Other bene it orm. Any other actuarially equivalent form of benefit requested by
a member and approved. in their sole discretion by the board of trustees.
Sec. 2-283A. Death while in city employment; elective survivor pension.
~ Each member maY on a form provided for that purpose, signed and filed with the
board of trustees designate a beneficiarv~or beneficiaries) to receive the benefit, if any, which may
be payable in the event of his/her death. and each designation maybe revoked by such member by
signing and filing with the board of trustees a new designation of beneficiary form.
,~ LTnon the death of a member who has a valid designation-of-beneficiary in force, the
beneficiary, if living, shall be paid a pension benefit computed according to section 2-281 A in the
same manner in all respects as if the member had elected Option B at the one hundred percent 100%~
level provided in Section 2-282A and retired the day preceding his/her death. notwithstanding that
the member may not have satisfied the conditions for retirement. Upon a member's retirement,
resienation. or termination as a city employee,. eligibility for the. death benefit payable under section
2-281A will automatically terminate.
(c) If a member failed to name a beneficiary in the manner prescribed in subsection (a)
above, or if the beneficiary (or beneficiaries) named by a deceased member predeceases the member,
the death benefit, if any, which may be payable under the plan with respect to such deceased member,
shall be paid by the board of trustees to the estate of such member, provided that in any of such cases
the board of trustees, in its discretion, may direct that the commuted value of the remaining monthly
23
income payments be paid in a lump sum. Any payment made to any person pursuant to this
subsection shall operate as a complete discharge of all obligations under the plan with regard to such
deceased member and shall not be subject to a review by anyone, but shall be final, binding, and
conclusive on all persons ever interested hereunder. Notwithstanding any other provision of law to
the contrary, the surviving spouse of any member killed in the line of duty shall not lose survivor
retirement benefits if the spouse remarries.
Sec. 2-284A. Alternate death while in ci employment; pension to spouse and/or children.
~ The applicable benefits~rovided in subsections (b) and (c) of this subsection or, if the
member designated the member's mouse or children as set forth below the benefits provided in
Section 2-283A, whichever are greater shall be_,paid if a member of the retirement system has five
(5) or more years of credited service and dies while in the employ of the city. The provisions of this
section shall not apply in the case of death of a member who has a valid designation of beneficiary,
other than the member's souse or children as set forth below in force pursuant to Section 2-283A.
b~ The~erson to whom the deceased member was married at the time of death shall be
paid a pension equal to seven -five percent (75%) of the amount of Option A - Retirant's life only
pension computed according to the applicable subsection of Section 2-282A, based on the deceased
member's final average compensation and credited service.
A sunriving_spouse's~ension shall terminate upon death.
~c,~ 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 Retirant's life only~pension benefit computed according to the applicable
subsection of Section 2-282A, based on the deceased member's final avera eg compensation and
credited service The percent shall be zero (0) percent during ,periods a pension is being paid in
accordance with the provisions of subsection (b~,• fifty percent during_periods a pension is not being
paid in accordance with the,provisions of subsection (b).
A survivin cg hild's~ension shall terminate upon attainment of age nineteen (19) years or, if over
nineteen L19) years but less than twenty three 23) years, upon no lon eg r being enrolled as a full-time
student in an educational institution marriage or death and the pension of each remaining eli ig ble
child shall be recomputed.
Sec. 2-285A. Mazimum amount of pension.
~ The normal retirement pension payable to a member of the retirement plan who has
not~reviouslypartic~ated in such system on or after January 1, 1980, shall not exceed one hundred
~ l OOHpercent of his/her final average co sensation. However, nothing contained in this section shall
24
~plv to supplemental retirement benefits or to pension increases attributable to cost-of-living
increases or adjustments.
No member of the system covered by this article who is not now a member of such
system shall be allowed to receive a retirement Qension 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 Qension from another retirement system or plan; provided that this restriction does not
apply to social security benefits or federal benefits under Chapter 67. Title 10 U. S. Code.
~ In no event may a member's annual benefit exceed the lesser of:
Any limits adjusted for cost of living,) in accordance with section 415(d of the
Internal Revenue Code, but only for the year in which such adjustment is effective):
or
Not withstanding the provisions of parag_rap~a) and b) above, the annual benefit
savable to a member having at least fifteen (15) years of service shall not be less than
the annually adjusted amount provided in the provisions of IRC Section 415(d).
{~ Compensation in excess of limitations set forth in Section 401(aj(17) of the Internal
Revenue Code shall be disregarded. 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. "Eli ib~ le employee" is an individual
who was a member before the first plan year beginning after December 31, 1995.
If the member has less than ten years of service with the emplo er as defined in
Section 415{b25) of the Internal Revenue Code and as modified by Section
415 b)(6)(D) of the Internal Revenue Code), the applicable limitation in subsection
(1) or subsection (2) of this subsection shall be reduced by multipl iy~ng such limitation
by a fraction, not to exceed one (1). The numerator of such fraction shall be the
number of ,years, or part thereof, of service with the employer: the denominator shall
be ten years. For purposes of this subsection, annual benefit means a benefit payable
annually in the form of a straight-line annuity with no ancillary or incidental benefits
and with no member or rollover contributions. To the extent that ancillary benefits
are provided, the limits set forth in subsections (1~ and 2) of this subsection will be
reduced actuarially. using an interest rate assumption equal to the greater of five
percent or the interest rate used in the most recent annual actuarial valuation, to
reflect such ancillary benefits. If distribution of retirement benefits begins before ale
62, the dollar limitation as described in subsection ~l) of this subsection shall be
reduced actuarially using an interest rate assumption equal to the greater of five
percent or the interest rate used in the most recent annual actuarial valuation;
however, retirement benefits shall not be reduced below $75.000.00 if payment of
benefits begins at or after age 55. If retirement benefits begin after age 65, the dollar
25
limitation of subsection (1) of this subsection shall be increased actuarially using an
interest assumption equal to the lesser of five percent or the interest rate used in the
most recent annual actuarial valuation. For purposes of this subsection, average
annual compensation for a member's three highest paid consecutive years means the
member's greatest aggregate compensation during the period of three consecutive
years in which the individual was an active member of the plan. The special maximum
retirement income limitation applicable to police officers at the normal retirement date
shall be as set forth in Section 415(8,) and (h) of the Internal Revenue Code of 1986
and amendments thereto and such amount shall be adjusted in accordance with
regulations promul ag ted by the Secretaiy of the Treasury or his/her delegate.
Sec. 2-286A. Subrogation rights.
If a member of the retirement system, retirant, or beneficiary becomes entitled to a pension as the
result of an accident or injury caused by the act of a third partv. the retirement system shall be
subrog_ated to the ri~~hts of such member, retirant or beneficiar~gainst such third partv to the extent
of pensions which the retirements s~pays or becomes liable to pay on account of such accident
or injury
Sec.2-287A. Reserved.
Sec. 2-288A. City contribution.
~ The plan shall be funded by contributions from member contributions, as provided in
Section 2-300A, state funding provided for in F.S. § 185.08, contributions from the city, and other
income sources as authorized by law.
~b„~ State funding shall be provided from premium taxes collected and disbursed pursuant
to F.S. § 185.08, which moneys shall be deposited in the fund within five (5) calendar days of receipt
be the city with the understanding that these premium tax revenues shall be deposited into and
become an integral part of this fund and may not be used for anv other purpose.
~c,~ CitXcontributiansshall bemade tothe plan, on at least a quarterly basis, in an amount
which, together with the member contributions provided for in section 2-300A and the state premium
taxes funding_provided for in subsection (b) and other income sources as authorized by law, sufficient
to meet the normal cost of the plan and to fund the actuarial deficiency over a period of not more than
thirt~(30) years, as determined by the Florida Statutes required annual actuarial valuation.
26
Such contributions shall be computed as level percents of member payroll in accordance with
generall~pted actuarial principles on the basis of such rates of interest and tables of experience
as the board of trustees shall from time to time adopt. The board shall annuall cti ertifv to the cites
contributions determined according to this section, and the city shall appropriate and pay to the
retirement system. the contributions so certified.
All benefits and expenses shall be paid in accordance with the provisions of this
pension plan and consistent with Florida Statutes and the Internal Revenue Code.
Sec. Z-289. Reserved.
Sec. 2-290A. Investment of retirement system assets.
The board of trustees shall be the trustee of the monies and assets of the retirement system.
The board shall have full power and authority, in their sole discretion, to invest and reinvest such
funds as are not necessary for current expenditures or liquid reserves, as thetimay from time to time
determine. The Trustees may sell, exchange or otherwise dispose of such investments at any time.
The Trustees shall have the authori , in respect to any stocks, bonds. or other property, real or
personal, held by them as Trustees, to exercise all such rights, powers and privileges as might be
lawfully exercised by any person owning similar stocks, bonds. or other property in his own rig_ht_
The trustees are authorized to invest in those stocks, bonds, and other securities permitted b~he
investment policies or guidelines adopted by the trustees in compliance with all requirements and
limitations of Chapter 185, of the Florida Statutes.
~ Delegation and Allocation of Investment Functions.
The Trustees shall have the power and authorit~ppoint one (1 or more
investment managers who shall be responsible for the management, acquisition,
disposition, investing, and reinvesting of such of the assets of the Trust Fund as the
Trustees shall specify. Any such appointment may be terminated by the Trustees
upon written notice. The fees of such investment manager shall be paid out of the
Trust Fund. The Trustees shall require that the investment manager acknowledge in
writing that it is a named fiduciary with reject to the n1an.
,~ In connection with any allocation or delegation of investment functions under this
section, the Trustees shall, from time to time, adopt appropriate investment policies
or guidelines that comply with all requirements and limitations of Chapter 185 of the
Florida Statutes.
27
See.2-291A. Ezpenses.
The expenses of administering the retirement system including the premiums for fiduciary
liability and waiver of recourse insurance covering the board of trustees and the retirement system,
shall be paid by the city.
See. 2-292A. Method of making payments.
All payments under this division shall be made according to the provisions ofthe City Charter
and city ordinances governing the disbursement of city marries. No payment shall be made that has
not been authorized by a specific or continuing_resolution of the board of trustees.
Sec. 2-293A. Assignments prohibited.
~ Generally. The ri hg t of a person to a pension, disability. death, or survivor benefit,
and any other right accrued or accruing to any person under the provisions of this division, and any
monies in assets belonging to the retirement system. shall not be subject to execution, garnishment,
attachment the operation of bankruptcy or insolvency law, or any other process of law whatsoever,
and shall be unassig_nable except as is s~ecificall~provided in this division. If a member is covered
under a group insurance or prepayment plan participated in by the city and should the member or
his/her beneficiary be permitted to and elect to continue the coverage as a retirant or beneficiary, the
member or beneficiary maX.authorize the board of trustees to deduct required payments to continue
coverage under the group insurance or prepa ment plan. The city shall have the right of set offfor
an~claim arising from embezzlement by or fraud of a member, retirant, or beneficiary in addition to
any other remedies includingforfeiture of benefits, provided by law.
Direct trans, fens o~~ible rollover distributions. This subsection applies to
distributions made on or after October 1, 1993. Notwithstanding any provision of the plan to the
contrary that would otherwise limit a distributee's election under this section, a distributee ma e
at the time and in the manner prescribed by the board of trustees, to have an~portion of an eli 'gable
rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct
rollover.
"Eligible rollover distribution" means 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
payrnents 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 (10) years or more:
any distribution to the extent such distribution is required under Section 401(a~(9~ of
the Internal Revenue Code; and the portion of any distribution that is not includible
28
in gross income (determined without regard to the exclusion for net unrealized
appreciation with respect to em~loyer securities).
"Eligible retirement" means an individual retirement account described in Section
408 a) of the Internal Revenue Code, an individual retirement annuity described in
Section 408(b) of the Internal Revenue Code, an annuityplan described in Section
403(x) of the Internal Revenue Code, or a qualified trust described in Section 401(a)
of the Internal Revenue Code, that accepts the distributee's eligible rollover
distribution. However, in the case of an el~ble rollover distribution to the surviving
mouse an eligible retirement plan is an individual retirement account or individual
retirement annuity,
Sec.2-294A. Errors.
Should the board of trustees determine that any member., retirant, or beneficiary is being.
from the retirement system more or less than is correct, the board of trustees shall correct the error
and, as far as~racticable, shall adjust the payment in such manner that the actuarial equivalent of the
benefit to which the member, retirant, or beneficiary was correctly entitled shall be paid.
Sec. 2-295A. Protection against fraud; forfeiture.
~ Whoever willfully and knowinglly makes, or causes to be made, or assists, conspires
with, or urges another to make, or causes to be made.,~any false. fraudulent, or misleadin oral or
written statement, or withholds or conceals material information with the intent to obtain any benefit
available under this retirement system shall be in violation of section 185.185 of the Florida Statutes.
Any member convicted of such violation may, in the discretion of the board of trustees, be required
to forfeit the right to receive any or all benefits he/she maybe otherwise be entitled to under this
retirement system. For purposes of this subsection, "conviction" shall mean a determination of wilt
that is the result of a plea or trial, regardless of whether adjudication is withheld.
~b,2 Any member who is convicted as provided in F.S. Section 112.3173 of a specified
offense committed prior to retirement, or whose employment is terminated by reason of an admitted
commission. aid. or abatement of a specified offense, shall forfeit all rights and benefits under this
pension plan, except for return of accumulated contributions as of his/her date of termination.
Sec. 2-29bA. Response to claims and inquiries.
All inquiries shall be answered promptly. The final decision for approval of benefits shall be
made by the board of trustees.
29
Sec. 2-297A. Denial of benefits.
If any claim for benefits is denied. suspended or terminated in whole or in part then the
claimant shall be furnished with a natice of denial. suspension or termination no later than thirt~(30)
days after the final decision has been made. The notice shall be provided in writing by certified mail
and shall set forth:
,~ The specific reasons far the denial. suspension~or termination of benefits;
The specific references to the pertinent provisions of the ension~lan upon which the
action is based and a cop o~ f the pension plan provisions shall be furnished with this
notice,
A description of any additional material or information necessary for the claimant to
perfect the claim, along with an explanation of why such material or information is
necessary; and
An explanation of the claims review procedure.
Sec. 2-298A. Claim review procedure.
~a,~ Requests for review. If a claim for benefits is denied suspended or terminated, in
whole or in part, then the claimant may appeal to the board of trustees for a full and fair review In
order to file an appeal, a written notice of appeal must be submitted within sixt~(60) days after the
notice of denial. suspension. or termination is received by the claimant (or such later time as the board
of trustees deems reasonable). The notice of appeal shall briefly describe the grounds upon which the
appeal is based on shall be signed by the claimant The claimant shall be allowed to review all
pertinent documents during normal business hours, and shall be permitted to submit comments and
a statement of issues for consideration b~ the board of trustees
Representation. A claimant may designate an attorne~or any other duly authorized
person to act as his or her representative at an~g_e of the claims review procedure Any ri. is
provided to the claimant during the claims review~rocedure shall automatically extend to the
representative desi agn ted by the claimant. A designation of representative shall be signed by the
claimant and the representative. and shall be submitted in writing-
~c,~ Claims review board. The board of trustees shall rule on all appeals brought under
this section. A decision to grant or deny an appeal shall be based solely on the record before the board
of trustees. unless the board of trustees determines in its sole discretion that a hearing is necessary
for the proper resolution of the appeal. The board of trustees shall decide b +~majorit~ote to rant
or deny an appeal. The final decision shall be made by the board of trustees in writing and shall be
30
made no later than sixty (60) days after receipt of the notice of appeal unless special circumstances
(such as the need for a hearing, require an extension of time. In no event however should the
'decision of the board of trustees be made later than one hundred twenty (120) days after receipt of
the notice of appeal. If an appeal is denied, in whole or in part, then the decision shall set forth the
specific reasons for the action with specific references to those pension plan provisions upon which
the decision is based. The claimant shall be promptly_provided with a copy of this decision The
decision of the board of trustees shall be final and binding.
Sec. 2-299A. Exhaustion of claims review procedure.
No action in law or in equity shall be brought to contest a denial. suspension or termination
of benefits until the claimant has complied with the procedures provided in section 2-298 unless
the board oftrustees fails to render a decision as provided in 2-298(c). In no case however shall and
action be brought unless instituted within one (1) year from the time the claimant received the notice
of denial, suspension or termination provided in section 2-297A.
Sec. 2-300A. Member contributions.
~ Member contributions for benefit group police bargaining unit members covered by
the current collective bar~ainin~ unit collective bargaining a~,reement shall be one (il percent of
salary and for other benefit~raup police members shall be four and eight hundred fifteen thousandths
(4.8152percent of salary, which said contribution shall be deducted from the member's pay and ,paid
over into the retirement system each pay en riod.
~b~ The City of Atlantic Beach shall assume and pay the member contributions set forth
above in lieu of payroll deductions from members' earnings. No member shall have the option of
choosing to receive the contributed amounts directly instead of having them paid b ty he ci directly
to the retirement system. All such contributions b ty he city shall be deemed and considered as part
of the member's contributions and subject to all pravisions of this plan pertaining to contributions of
members. Such contributions shall additionally be considered as part ofthe member's compensation
for _purposes of determining final average compensation and other benefits hereunder and for
determining the member's hourly wage rate for purposes of FICA contributions worker's
compensation. and overtime compensation. This city ip ck up of contributions is a result of a
commensurate reduction of each member's pay and is intended to comply with Section 414(h~(2) of
the Internal Revenue Code.
~ If an employee leaves the service of the city before accumulating_aa~regate time of
five (5) years toward retirement and before being_eli~ble to retire under the provisions of this article
he/she shall be entitled to a refund of all of his/her contributions made to the city pension trust fund
plus any interest accumulated at a rate of interest determined annually by the Board of Trustees, less
any disability benefits paid to him/her. If an employee who has been in the service of the city for at
31
least five (5) years and has contributed to the pension trust fund as provided elects to leave his/her
accrued contributions in the trust fund such employee upon attainin tg he a e as required in Section
2-278A. may retire with the actuarial equivalent of the amount of such retirement income otherwise
payable to him/her.
If a member who terminates employrnent elects a refund of contributions and
Some or all of the refund is elig.~ble for rollover treatment, as defined by the Internal
Revenue Service:
X2,2 Elects to have such eli ible distribution paid directly to an eligible retirement plan or
IRA. and
Specifies the eligible retirement plan or IRA to which such distribution is to be paid
(in such form and at such time as the distributing_plan administration mav~rescribe~
The distribution will be made in the form of a direct trustee-to-trustee transfer to the specified eligible
retirement plan.
Sec. 2-301A. Benefit limitations and required distributions.
~a,~ Benefits paid under this city police officer employees retirement system shall not
exceed the limitations of Internal Revenue Code Section 415, the provisions of which are hereby
incorporated by reference.
Notwithstanding any provisions in this section to the contrary the distribution of
benefits shall be in accordance with the following requirements and otherwise comply with Internal
Revenue Code Section 401(a)L) and the regulations thereunder the provisions of which are
incorporated herein by reference:
A_member's benefit shall be distributed to him/her not 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 retires
Alternatively, distributions to a member must begin no later than the applicable April
1, as determined under the preceding sentence and must be made over the life of the
member (or the life expectancies of the member and the member's desi ated
beneficiary) in accordance with regulations
~2~ Distributions to a member and his/her beneficiary shall only be made in accordance
with the incidental death benefit requirements of Internal Revenues Code Section
401 a)~9Z(G and the regulations thereunder
32
Secs.2-302A-2-310A. Reserved.
' Section 3. The provisions adopted herein shall prevail over any existing sections of the
Atlantic Beach Code to the extent said existing sections are contrary or inconsistent herewith.
Section 4. Severability. If any section, sentence, clause, word, or phrase of this
Ordinance is held to be invalid or unconstitutional by a court of competent jurisdiction, then said
holding shall in no way affect the validity of the remaining portions of this Ordinance.
Section 5. Codification Specific authority is hereby granted to codify this ordinance.
Section 6. This Ordinance shall take effect immediately upon its final passage and
adoption.
PASSED by the City Commission on first reading this _ day of , 1999,
PASSED by the City Commission on second and final reading this _ day of ,
1999.
ATTEST:
City Clerk
Mayor, Presiding Officer
Approved as to form and correctness:
City Attorney
LEGEND; Underlining is new )an~.ua~e.
ABPFIORDN~CraieralPlan. Draft[ 10/06/99)
33
SUMMARY OF CHANGES -Chapter 99-1, Laws of Florida
The following is a summary of some of the law's provisions and is not intended to
substitute for a careful review of Chapter 99-1, Laws of Florida.
The 1999 Florida Legislature passed CS/HB 261, which substantially revises Chapters 175 and
185, Florida Statutes. CS/HB 261 was approved by the Governor on March 12, 1999, and
became law effective upon his signature.
Chapter 99-1 revises Chapter 175, relating to Firefighters' Pension Trust Funds and Chapter 185,
relating to Municipal Police Office's Retirement Funds for the primary purpose of providing for
the uniform application of minimum benefits and standards to all police and fire pension plans
receiving funding from the State under these Chapters. In addition to general clarification of the
statutory provisions, Chapter 99-1:
~ Mitigates the cost impact to local law plans by providing that local law plans "... shall be
required to comply with the minimum benefit provisions of this chapter only to the extent that
additional premium tax revenues become available to incrementally fund the cost of such
compliance..." "Additional premium tax revenues" means revenues that exceed the amount
received for calendar year 1997.
~ Eliminates the disparity between chapter and "local law" plans so that all plans must meet the
same minimum benefits and standards to be eligible to receive state premium tax revenues. These
minimum benefits and standards include:
- Requires separate General Employee and Public Safety pension boards. Combined boards are
no longer authorized.
- Requires separate reporting for General Employee and Public Safety pension boards.
NOTE: Following applies ONLY to the City's Police Pension Plan.
State: A normal retirement date of age 55 with 10 years of service, or age 52 with 25 years of
service.
City: The City will need to add an age 55 with 10 years of service provision. The City currently
has a normal retirement date of age 50 with 20 years of service, or any age with 25 years
of service, or age 60 with 5 years of service.
State: A benefit accrual factor of 2% for all years of service.
City: A benefit accrual factor of 3% for all years of service.
State: A normal form of retirement benefit payment which is payable for life or 10 years certain.
City: The City will need to add such a provision. This is an "optional" benefit.
State:. A definition for "salary" or "compensation" for police officers which means the total cash
remuneration including "overtime" paid by the primary employer to the police officer for
services rendered. A local law plan may limit overtime payments for retirement
calculation purposes but such limit may not be less than 300 hours of overtime per officer
per year. Further, such definition shall not be required to include any payments for extra
duty or special detail work performed on behalf of a second party employer.
City: This item may require minor changes as the City currently defines salary as 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 incentive pay.
State: A definition of "average final compensation" meaning the 5 best of the last 10 years of
service.
City: The City will need to change it's definition which is currently defined as the "period of
sixty (60) consecutive months... in which the ...compensation paid is greatest."
State: Minimum disability benefit provisions of the accrued retirement benefit but no less than
42% of Average Final Salary (AFS) for line-of--duty disability (with day one coverage) and
the accrued retirement benefit but no less than 25% of AFC for non-line-of--duty disability
(after 10 years of service) and provides the member with optional forms of payment
similar to those for normal retirement;
City: City's disability benefit for line-of--duty (with day one coverage) is currently a minimum of
42% with anon-line-of--duty disability of 15% at 5 years and 30% if 10 years of service.
State: Penalties for persons who make or conspire with others to make false, fraudulent or
misleading statements in order to obtain disability benefits In addition to criminal penalties,
such persons, upon conviction, may be required to forfeit their right to any and all benefits
under this chapter,
City: City plan will need to be changed to include this provisions.
State: Death benefits for vested employees equal to their accrued retirement benefit payable at
what would have been their normal retirement date.
City: City plan will need to be changed. Current plan allows for immediate benefits as if
employee had retired the day preceding his/her death if employee has a valid nomination-
of-beneficiary in force election; otherwise, death benefits are reduced to 75%.
State: Optional forms of retirement benefit payments including life only, and joint and survivor
benefits of 100%, 75%, 66 2/3%, and 50%;
City: City will need to add 75% and 66 2/3% joint and survivor benefit options. City currently
has life only, social security coordinated, 100% joint and survivor benefit and 50% joint
and survivor benefit options.
State: Designation of beneficiaries to include a choice of one or more persons. If no beneficiary
is designated, payment is made to the estate.
City: City plan will need to be changed.
State: Termination provisions that provide for a refund of contributions on, or after, 10 years of
service, provides for a vested retirement benefit payable at early or normal retirement date;
City: The City's plan currently provides for a refund of employee contributions, upon
employment termination if the employee has less than five years of service or at any time
upon request from employee if more than five years of service.
State: Provides that certain diseases shall be presumed to be suffered in-the-line-of--duty.
City: City plan currently addresses this issue without listing all diseases as they are included
within Florida Statutes.
State: Requires plans that are combined with general employees to establish a separate police
plans. Anew plan and board of trustees if necessary, are also to be established.
City: Action is being taken to have a new Board of Trustees and new plan documents.
State: Allows Police employee contributions to be reduced to a minimum of/2 of 1 percent.
City: This is an item that may be negotiated by the Fire/Police Unions. Current contribution
rate for Police Union members is 1% and 4.815% for non-union members.
Other:
Requires the Division to distribute upon determination of compliance, the premium tax moneys to
the cities on or before July l of each year; the former date was June 1 of each year;
Provides for a partial exemption (definition of "salary" and board make-up is exempted) for
existing supplemental plans; defines a supplemental plan municipality as a municipality in which a
supplemental plan existed on January 1, 1998.
Updates Chapters 175/185 to comply with other applicable state and federal laws;
Continues to permit voluntary participation in Chapters 175/185 by cities/districts, so that they
may elect to participate and share in the premium tax revenues ar they may terminate participation
at any time.
The City's Pension Board will be consulting with the plan's attorney and actuary to determine the
effect on the City's plan and to ensure compliance.
W P//gaf//MyFi les/IComm-Meeting//Staff-Report-175-185-Attachment
§ 2-261. ATLANTIC BEACH CODE
DIVISION 3. RETIREMENT SYSTEM
Sec. 2-261. Created, purpose.
The city employees' retirerrient system is hereby created and established for the purpose
of providing pensions and death benefits for the employees of the city and their dependents.
The effective date of the retirement system is December 22, 1975. _
(Ord. No. 58-75-4, § 1, 12-22-75)
Sec. 2-262. Definitions.
The following words and phrases as used in this division shall have the following mean-
ings unless a different meaning is clearly required by the context:
Actuarial equivalent shall mean of equal pension reserve (present value).
Beneficiary shall mean any person who is being paid, or has entitlement to future
payment, of a pension or other benefit by the retirement system for a reason other than the
person's membership in the retirement system.
Board of trustees or board shall mean the board of trustees provided for in this division.
City shall mean the City of Atlantic Beach, Florida, and shall include officers, boards,
departments and instrumentalities.
City employee shall mean any person in the employ of the city.
Compensation shall mean the salary or wages paid a member for personal service ren-
dered the city. 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 full-time police officer's salary 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 any other
item not specifically included.
Credited service shall mean the service credited a member as provided in this division.
Final average compensation shall mean one/sixtieth of the aggregate amount of compen-
sation paid a member during the period of sixty (60) consecutive months of the member's
credited service in which the aggregate amount of compensation paid is greatest..The sixty
(60) consecutive months of credited service must be contained within the member's last one
hundred twenty (120) months of credited service. If a member has less than sixty (60) consecu-
tive months of credited service, final average compensation means the aggregate amount of
compensation paid the member divided by the member's months of credited service.
Firefighter shall mean a city employee employed in the fire department who is a certified
fire fighter in accordance with the provisions Section 633.35, Florida Statutes, and who holds
Supp. No. 11
1'~4
ADMINISTRATION § 2-263
the rank of firefighter or higher, including probationary firefighter. The term firefighter shall
not include any civilian city employee employed in the fire department, any person employed
as a firefighter for an emergency, or any person privately employed as a firefighter.
. Member shall mean any person who is a member of the retirement system.
Pension shall mean a series of monthly payments by the retirement system throughout the
future life of a retirant or beneficiary, or for a temporary period, as provided in this division.
Pension reserve shall mean the present value of all payments likely to be made on account
of a pension. The present value shall be computed on the basis of such mortality and other
tables of experience and regular annual compound interest as the actuary appointed by the
board of trustees shall from time to time determine.
Police officer shall mean a city employee employed by the police department who is certified
or required to be certified as a law enforcement officer in compliance with Sections 943.13 and
943.14, Florida Statutes, and who holds the rank of patrol officer or higher, including
probationary patrol officer. The term police officer shall not include any civilian city employee
employed in the police department, any person employed as a police officer for an emergency,
or any person privately employed as a police officer.
Regular interest shall mean such rate or rates of interest per annum, compounded annually,
as the board of trustees shall from time to time adopt.
Retirant shall mean any person who has satisfied the condition for receiving a benefit and
is being paid a pension by the retirement system on account of the person's membership in the
retirement system.
Retirement systems or system shall mean the city retirement system created and established
by this division.
Service shall mean personal service rendered to the city by a city employee.
Workers' compensation benefits shall mean any amounts paid a retirant, beneficiary, spouse
or child pursuant to any workers' compensation or similar law. Redemptions or settlements of
a workers' compensation claim shall be considered workers' compensation benefits. Payments
in consideration of medical expenses shall be disregarded in the determination of workers'
compensation benefits.
(Ord. No. 58-75-4, § 2, 12-22-75; Ord. No. 58-88-13, § 1, 11-28-88; Ord. No. 58-91-15, § 1,
4-22-91; Ord. No. 58-98-25, § 1, 11-23-98)
Cross reference-Definitions and rules of construction generally, § 1-2.
Sec. 2-263. Benefit groups.
(a) The follo~ving~benefit groups are hereby designated for the purpose of determining a
retirement system member's applicable benefit eligibility conditions and benefit amount:
(1) Benefit group general shall consist of all members not included in one of the benefit
groups which follow;
•Supp. No. 21 174.1
§ 2-263 ATLANTIC BEACH CODE
(2} Benefit group fire shall consist of all members who are also firefighters;
(3) Benefit group police shall consist of all members who are also police officers.
(b) Benefit eligibility conditions shall be based on the member's benefit group at the time of
termination of city employment. Benefit amounts shall be based on the amount of credited
service acquired in each benefit group.
(Ord. No. 58-75-4, § 3, 12-22-75)
Sec. 2-264. Board of trustees-Responsibilities and duties generally.
The general administration, management, and responsibility for the proper operation of the
retirement system, for construing, interpreting, and making effective the provisions of this
division, and for making recommendations to the city commission on matters concerning this
retirement system are vested in the board of trustees. ,
(Ord. No. 58-75-4, § 4, 12-22-75; Ord. No. 58-98-25, § 2, 11-23-98)
Cross reference-Boards and commissions generally, § 2-131 et seq.
Sec. 2-265. Same-Actuarial data; report to city commission.
(a) The board shall keep or cause to be kept, in convenient form, such data as shall be
recommended by the actuary as necessary for the operation of the retirement system on an
actuarial basis. The board shall keep or cause to be kept, in convenient form, such additional
data as is required to properly report the operations of the system.
(b) The board shall render a report to the city commission on or before the first day of April
of each year showing the fiscal transactions of the retirement system for the year ended the
preceding thirtieth day of September, the assets of the retirement system as of the preceding
thirtieth day of September, and a copy of the most recent actuarial report.
(Ord. No. _58-75-4, § 10, 12-22-75)
Sec. 2-2G6. Same=Composition.
The.board of trustees shall consist of five (5) trustees as follows:
(1) Two (2) residents of the city to be selected by the city commission and serve at the
pleasure of the city commission;
(2) One (1) member of the retirement system who is either a police officer or a firefighter,
but not the chief of either department to be elected by the members of the retirement
system who are also police officers ox firefighters;
(3) .One (1) member of the retirement system who is neither a police officer nor firefighter
to be elected by the members of the retirement system who are neither police officers
or firefighters; ...
(4) One (1) resident of the city to be;selected by the other four (4) members of the board of
trustees, and whose appointment shall be confirmed by a vote of the city commission.
Supp. No. 21 174.2
ADMINISTRATION § 2-269
The elections provided for in subsections (2) and (3) of this section shall be held in
accordance with such rules as the board of trustees shall from time to time adopt.
(Ord. No. 58-75-4, § 5,.12-22-75; Ord. No. 58-86-7, § 1, 1-12-87)
Sec. 2-267. Same-Term of office; oath of office.
The regular term of office of a member of the board of trustees shall be four (4) years for
civilian members, and four (4) years for employee representatives, unless they terminate
employment, whereupon a new election will be held by the members of the plan to fill the
unexpired term of their trustee representatives, and one (1) year for the trustee selected by the
other four (4) members of the board. Each trustee shall, before assuming the duties of trustees,
qualify by taking an oath of office to be administered by the city clerk, whereupon a trustee's
term of office shall begin. However, upon the expiration of the terms of the civilian trustees and
employee representative trustees in office at the time this article is adopted, the term of the
next succeeding civilian member shall be for one (1) year, the term for the next succeeding
police officer or firefighter representative shall be for two (2) years and the term for the next
succeeding non-police officer non-firefighter employee representative shall be for three (3)
years, with all civilian member and employee representative trustees having four-year terms
thereafter.
(Ord. No. 58-75-4, § 6;12-22-75; Ord. No. 58-86-7, § 1,1-12-87; Ord. No. 58-98-25, § 3,11-23-98)
Sec. 2-268. Same-Vacancy; filling of vacancy.
(a) A vacancy shall occur on the board of trustees if. any member shall resign or any
employee representative ceases to be employed by the city. Avacancy shall occur on the board
if any trustee fails to attend three (3) consecutive meetings of the board unless, in each case,
excused for cause by the trustees attending the meeting.
(b) If a vacancy occurs on the board of trustees, the vacancy shall be filled within ninety (90)
days for the unexpired term, if applicable, in the same manner as the position was previously
filled.
(Ord. No. 58-75-4, § 7, I2-22-75; Ord. No. 58-86-7, § 1,1-12-87; Ord. No. 58-98-25, § 4,11-23-98)
Sec. 2-269. Same-Meetings; quorum; voting; compensation.
The board of trustees shall hold meetings regularly, at least one (1) in each calendar quarter,
and shall designate t12e time and place of each meeting. All meetings of the board shall be open
to the public. Notice of such meetings shall be posted on employee bulletin boards so that
employees will be aware of the meeting. The board shall adopt its own rules of procedure and
shall keep a record of its proceedings. Three (3) trustees shall constitute a quorum at any
meeting of the board, and at least three {3) concurring votes shall be necessary for a decision
by the board. Each trustee shall be entitled to one (1) vote on each question before the board.
.Supp. No. 21 174.3
§ 2-269. ATLANTIC BEACH CODE
;Trustees shall serve without compensation for their services as trustees, but shall be entitled
to their'expenses actually and necessarily incurred in attending meetings of the board and in
performing required duties as trustees.
(Ord. No. 58-75-4, § 8, 12-22-75; Ord. No. 58-86-7, § 1, 1-12-87)
Sec. 2=270.- Officers and employed services.
The officers and employed services of the retirement system shall be as follows:
(1) "'Chairperson: The board shall annually elect a~chairperson and a chairperson pro tem
-from its members.
(2) ~8ecretary: The board shall annually elect a secretary from its members who shall sign
the minutes of each meeting and be the custodian of the retirement system's records.
(3) ?~easurer: The director of finance shall be treasurer of the retirement system. The
treasurer shall be custodian of the assets of the retirement system except as to the
assets as the board may from time to time place in the custody of a nationally chartered
bank or approved financial manager.
(4) .-Legal advisor: The board is empowered to employ independent legal counsel but is
authorized to utilize the services of the city attorney.
(5) Actuary: The board shall appoint an actuary who shall be the technical advisor to the
board regarding the operation of the retirement system on an actuarial basis, and who
-shall perform such services as are required in connection therewith. The term actuary
as used in this division shall mean an "enrolled actuary" who is enrolled under Subtitle
C of Title III of the Employee Retirement Income Security Act of 1974 and who is a
member of the Society of Actuaries of the American Academy of Actuaries. A partner-
ship orcorporation maybe appointed actuary ifthe-duties of the actuary are performed
~by or under the direct supervision of an enrolled actuary and the enrolled actuary signs
and is responsible for all final documents submitted by the partnership or corporation.
(6) Administrative manager: The board may employ or contract for the services of an
<individual, firm or corporation, to be known as the "administrative manager", who
shall ~ under. -the direction of the board or any appropriate committee thereof, be
ministerially responsible to:
a. Administer the office or offices of the retirement system and of the board;
. b. Coordinate and administer the accounting, bookkeeping and clerical services;
c. Provide for the coordination of actuarial services furnished by the actuary;
`d. Prepare (in- cooperation or appropriate with the consulting actuary or other
advisors) reports and other documents to be prepared, filed or disseminated by or
on behalf of the retirement system in accordance with law;
e. Perform such other duties. and furnish such other services as may be assigned,
delegated or directed or as may be contracted by or on behalf of the board.
Supp. No. 21 174.4
ADMINISTRATION § 2-272
(7) Services: The board is authorized and empowered to employ such professional, medical,
technical or other advisors as are required for the proper administration of the
retirement system. These services shall be obtained and the compensation for these
services shall be determined in accordance with procedures established by the board.
(Ord. No. 58-75=4, § 9, 12-22-75; Ord. No. 58-86-7, § 1, 1-12-87; Ord. No. 58-91-15, § 1, 4-22-91;
Ord. No. 58-98-25, §§ 5-8, 11-23-98)
Sec. 2-271. Membership.
(a) All persons who are city employees, and all persons who become city employees, shall be
members of the retirement system, except as provided in subsection (b) of this section.
(b) The membership of the retirement system shall not include:
(1) Any city employee who is employed in a position normally requiring less than one
thousand (1,000) hours of work per annum;
(2) Any city managerial or professional employee who is employed pursuant to an
individual contract of employment which does not provide for the employee's partici-
pation in this retirement system;
(3) Elected officials of the city;
(4) Positions which are compensated on a basis- not subject to the withholding of federal
income taxes or FICA taxes by the city;
(5) Temporary employees;
(6) Any person initially employed as or promoted to a position designated by the city as
executive or department head shall elect to participate or not participate in the
retirement system. Such election shall be irrevocable for as long as the employee holds
such executive or department head position. Should any such member elect to
discontinue participation in the retirement system, the member's entitlement to
benefits hezeunder shall be governed by the system's provisions in effect at the time of
such discontinuance.
(c) An individual shall cease to be a member upon termination of employment by the city,
or upon ceasing to be employed in a position regularly requiring one thousand (1,000) or more
hours of work in a year, or upon becoming employed in an excluded position.
(Ord. No. 58-75-4, § 11, 12-22-75; Ord. No. 58-81-5, § 1, 9-28-81; Ord. No. 58-85-6,1-13-86; Ord.
No. 58-93-19, § 1, 9- 27-93; Ord. No. 58-98-25, § 9, 11-23-98)
Sec. 2-272. Credited service.
Service rendered ~by a member of the retirement system shall be credited to the member's
individual credited service account.in accordance with rules the board of trustees shall from
time to time prescribe and in accordance with the applicable provisions of Chapters 175 and
185, Florida Statutes. In no case shall more than one (1) year of credited service be credited on
Supp. No. 21 174.5
~~§ 2-272 ATLANTIC BEACH.CODE
.account;of all service rendered by a member in anyone period of twelve (12) consecutive
.calendarmonths. Service shall be credited to the nearest.one-twelfth of a year. Service shall be
credited for the total number of years, and fractional parts of years, of service of.the member.
(Ord. No. 58-75-4, § 12, i2-22-75; Ord. No. 58-91-15, § 1, 4-22-91)
Sec. 2-273.Loss of credited service. -
A retirement system member's credited service shall be forfeited and no longer in force if the
member terminates city employment with less than.five (5) .years. of credited service.
Ord. No. 58-75-4, § 13, 12-22-75; Ord. No. 58-87-10, § 1, .11-23-87)
Sec. 2=274. iReinstatement of credited service.
A member'sforfeited credited service shall be restored to hislher individual service account
if re-employment by.the city and membership in the retirement system occurs within five (5)
years from_ and: after the date of separation from city employment that caused the forfeiture,
provided that the member repays to the retirement system the contributions refunded under
subsection 2=298(d) hereof plus interest at the actuarially assumed rate in accordance with
terms established by the board of trustees.
(Ord. No. 58-75-4, § 14, 12-22-75; Ord. No. 58-98-25, § 10, 11-23-98)
Sec. 2-275. "lYlilitary service credit.
(a) A member of the retirement system who leaves or left city employment to-enter any
armed service of the United States during time of war, period of compulsory military service,
or period of national emergency recognized by the city commission shall have required periods
of active duty credited as city service subject to the following conditions:
(1) The member is re-employed by the city within one (1) year from. and after the date of
:termination of such active duty;
(2) ~~ Ins no case. shall more than six (6) years of service be created on account of all military
°•service.
(3) :Notwithstanding any provision of this article: to the contrary, contributions, benefits
:and =service - credit with respect to qualified :military service ~ will be :provided in
s~ccordance with Section 414(u) of the Internal Revenue Code.
(b) The: board of trustees shall determine the amount of service to be credited a member
under the: provisions of this section.
(Ord. No.'58>75-4, § 15, 12-22-75; Ord. No. 58-98-25,' § 11, 11=23-98)
Sec. 2=276.' Voluntary. retirement conditions; employment after retirement.
(a) A member of the retirement system may retire upon satisfaction of each of the following
requirements:
(1) : ;Tha member files written application for retirement with the board of trustees setting
.forth the. date retirement is to be effective;
Supp. No..21 174.6
ADMINISTR.A.TION § 2-278
(2) The member terminates all of his/her city employment normally requiring one
thousand (1,000) hours of work or more per annum. on or before the date retirement is
to be effective;
(3) The member has met one of the age and service requirements for retirement specified
in subsection (b) applicable to the member's benefit group.
Upon retirement, a member shall be paid a pension computed according to the applicable
subsections of section 2-281.
(b) The age and service requirements for voluntary retirement are as follows:
(1) Benefit group fire. The member has attained age fifty (50) years or older and has
twenty (20) or more years of credited service in force; the member at any age has
twenty-five (25) or more years of credited service in force; or, the member has attained
age sixty (60) years or older, and has five (5) or more years of credited service in force;
(2) Benefit group police. The member has attained age fifty (50) years or older and has
twenty (20) or more years of credited service in force; the member at any age has
twenty-five (25) or more years of credited service in force; or, the member has attained
age sixty (60) years or older, and has five (5} or more years of credited service in force;
(3) Benefit group ge~aeral. The member has attained age sixty (60) years or older, and has
five (5) or more years of credited service in force.
(c) Employment after retirement:
(1) Any person who has retired as a member of this retirement system may be reemployed
by the city in a position normally requiring less than one thousand (1,000) hours of
work per annum and receive retirement benefits from his/her previous employment
and compensation from his/her reemployment.
(2) Any person who has retired as a member of this retirement system and is subsequently
reemployed by the city in any position normally requiring one thousand (1,000) hours
or more o~ work per annum shall have his/her pension benefit suspended during the
period of such reemployment and shall receive additional credited service fromhis/her
reemployment.
(Ord. No. 58-75-4, § 16, 12-22-75; Ord. No. 58-87-10, § 1, 11-23-87; Ord. No. 58-91-14, § 1,
4-8-91; Ord. No. 58-93-19A, § 1, 10-25-93; Ord. No. 58-98-25, §§ 12, 13, 11-23-98)
Sec. 2-277. Reserved.
Editor's note-Ord. No. 58-98-25, § 14, adopted Nov 23, 1998, repealed § 2-277 which
pertained to compulsory separation from employment; extensions; retirement, and derived
from Ord. No. 58-75-4, § 17, adopted Dec. 22,1975 and Ord. No. 58-87-10, § 1, adopted Nov. 23,
1987.
Sec. 2-278. Deferred retirement upon separation from employment (vesting).
(a) A member of the retirement system who terminates city employment prior to satisfying
the requirements for voluntary retirement under section 2-276 for a reason other than
retirement or death, who has not received a refund of his or her member contributions, and
Supp. No. 21 174.7
§ 2-278 ATLANTIC BEACI CODE
who has the applicable period of credited service specified in subsection (b) shall remain a
member and be entitled to be paid a pension upon attaining the age' and service requirements
for voluntary retirement, as set forth in section 2-276. Upon attaining the age and service
requirement for voluntary retirement, the member shall be paid a pension computed according
to the applicable subsections of section 2-281- as the subsections were in force at the time a
member left city employrrient.
(b) The credited service requirement for separation from city employment with entitlement
to deferred retirement is:
(1) Benefit group fire: Five (5) years;
(2) Benefit g~'oup police: Five (5) years;
(3) Benefit group general: Five (5) years.
(Ord. No. 58-'75-4, § 18, 12-22-?5; Ord. No. 58-87-10, § 1, 11=23-8'7; Ord: No. 58-98-25, § 15,
11-23-98)
Sec. 2-279. Disability retirement-General conditions for eligibility.
(a) A member having five (5) or more continuous years of credited service and having
contributed to the retirement system for five (5) years or more may retire from the service of
the city if he becomes totally and permanently disabled as defined in subsection (b) by reason
of any cause other than a cause set out in subsection (c). Such retirement shall herein be
referred to as "disability retirement." The five (5) years of credited service requirement shall
not apply to police officers and firefighters disabled (as defined herein) in the line of duty. The
minimum benefit for any police officer or firefighter disabled in the line of duty shall be
forty-two (42) percent of the final average compensation, regardless of years of credited service.
(1) For fire and police groups any permanent disability, as defnecl in subsection (a) of this
section, which is the result of or caused by tuberculosis, hepatitis, meningococcal
meningitis, hypertension, heart disease or hardening of the arteries shall be presumed
to have been incurred in the line of duty unless the contrary is shown by competent
. evidence or unless a physical examination of the member conducted upon initial hiring
by the' city revealed the existence of such condition at that time, and provided that a
member claiming disability due to tuberculosis or meningococcal meningitis provides
the affidavit required by F.S. § 112.181(2).
(b) A member will be considered disabled if, in the opinion of the board of trustees, the
member is totally and permanently prevented from rendering useful and efficient service:
(1) As a firefighter, if a member of benefit group fire;
(2) As a police officer, if a member of benefit group police; or
(3) As a city employee, if a member of benefit group general:
If a firefighter or a police~~officer is found by the board of trustees to have been disabled in the
line of duty, total disability shall be determined on the basis of rendering useful and efficient
service as a firefighter or police officer, as the case may be.
Supp. No. 21 174.8
ADMINISTRATION § 2-279
To the extent required by Florida Statutes, any condition or impairment of the health of a
firefighter or police officer resulting from conditions specified by Florida Statutes shall be
presumed to have been incurred in the line of duty unless shown to the contrary by competent
evidence; provided, the firefighter or police officer shall have successfully passed a .physical
examination upon entering into service with the city'as a firefighter or police officer and the
examination failed to reveal evidence of a presumptive condition.
(c) A member will not he entitled to receive any disability retirement income if disability is
as a result of
(1) Excessive and habitual use by the employee of drugs, intoxicants, or narcotics;
(2) Injury or disease sustained by the employee while willfully and illegally participating
in fights, riots, or civil insurrections or while committing a crime;
(3) Injury or disease sustained by the employee while serving in any armed forces; or
(4) Injury or disease sustained by the employee after his/her employment has terminated.
(d) No member shall be permitted to retire under the provisions of this section until he/she
is examined by a duly qualified physician or surgeon, to be selected by the board of trustees for
that purpose, and is found to be disabled in the degree and in the manner specified in this
section. Any member retiring under this section may be examined periodically by a duly
qualified physician or surgeon or board of physicians and surgeons to be selected by the board
of trustees for that purpose, to determine if such disability has ceased to exist. If a member
refuses to submit to such an examination, the member's disability pension shall be suspended
until such time as the member submits to the examination.
(e) The benefits payable to a member who retires from the service of the city with a total and
permanent disability as a direct result of a disability commencing prior to his normal
retirement date is the monthly income computed according to the applicable subsections of
section 2-281 or, if a police officer or firefighter, forty-two (42) percent of final average
compensation, whichever is greater.
(f) The monthly retirement income as computed in section 2-281 to which a member is
entitled in the event of his disability retirement shall be payable monthly after the board of
trustees determine such entitlement retroactive to the date of application or the last day on
payroll, whichever is later. If the member recovers from the disability prior to his normal
retirement date, the last payment will be the payment due next preceding the date of such
recovery. If the member dies without recovering from his disability or attains his normal
retirement date while still disabled, the last payment will be the payment due next preceding
his death. `
(g) If the board ~o#~ trustees finds that a member who is receiving a disability retirement
income is, at any time prior to his normal retirement date, no longer disabled, as provided
herein, the board of trustees shall direct that the disability retirement income be discontinued.
Recovery from disability as used herein means the ability of the member to render useful and
Supp. No. 21 175
§ 2-279 ATLANTIC BEACH CODE
efficient service: as ~ an employee of the city within. the benefit group to which the member
belonged at the time the disability benefit was granted;=regardless of whether the member is
reemployed by the city.
(h) If the member recovers from disability and reenters the service of the city as an
employee, his service will be deemed to have been continuous, but the period beginning -with
the first month for which he received disability retirement income payment and ending with
the date he reentered the city service will not be considered as credited service for the purpose
of the system.
(Ord. No. 58-75-4, § 19, 12-22-75; Ord. No. 58-87-10, § 1, 11-23-87; Ord. No. 58-88-13, § 1,
11-28-88; Ord. No. 58-93-19A, § 1, 10-25-93; Ord. No. 5$-95-20, § 1, 6-12-95; Ord. No. 58-96-21,
§ 1, 2-12-96; Ord. No. 58-98-25, § 16, 11-23-98)
Sec. 2-280. Same-Continuation subject to re=examination; return to employment.
(a) The board of trustees may require a disability retirant to undergo periodic medical
examination if-the disability retirant has not attained the following applicable age:
(1) Benefit group fire: Age sixty (60) years;
(2) Benefit group police: Age sixty (60) years;
(3) Benefit group general: Age sixty (60) years.
(b) If a disability retirant refuses to submit to a medical examination payment of the
disability pension may be suspended by the board of trustees until withdrawal of the refusal.
Should refusal continue for one (1) year all the disability retirant's rights in and to a disability
pension may be revoked by the board of trustees.
(c) A disability retirant who has been restored to employment with the city as provided in
subsection (a) shall again become a member of the retirement system. Service shall be credited
for the period the disability retirant was being paid a disability pension.
(Ord. No. 58-75-4, § 20, 12-22-75; Ord. No. 58-98-25, § 17, 11-23-98)
Sec. 2-281. Amount of Level straight life pension.
(a) Benefit group fire. Subject to section 2-285, the amount of level straight life pension of
the retirement' system member shall be equal to the retiring member's benefit group fire
credited service multiplied by three (3) percent of the retiring member''s final average
compensation.
(b) Benefit group police. Subject to section 2-285, the' amount of level straight life pension
shall be equal to the retiring member's benefit group.police credited service multiplied by three
(3) percent of the retiring member's final average compensation. _
(c) Benefit group general. Subject to section 2-285, the amount of level straight life pension
shall be equal to the retiring member's benefit group general credited service multiplied by the
sum of two and eighty-five hundredths (2.85) percent of the retiring member's final average
compensation.
Supp. 1`TO. 21 176
ADMINISTRATION § 2-283
(d) Cost-of-living adjustment. All retirement system members and beneficiaries who retired
prior to January 1, 1997, shall receive aone-time cost-of--living adjustment, which shall be in
an amount equal to three (3) percent of the benefits paid to such retired members and
beneficiaries during the immediately preceding month.
(Ord. No. 58-75-4, § 21, 12-22-75; Ord. No. 58-87-8, § 1, 10-26-87; Ord. No. 58-92-18, § 1,
9-28-92; Ord. No. 58-93-19A, § 1, 10-25-93; Ord. No. 58-97-23, § 1, 7-14-97)
Sec. 2-282. Optional forms of pension payment.
A member of the retirement system may elect to be paid under one (1) of the following
optional forms of payment in lieu of the level straight life form of payment. The election must
be made in writing and filed with the board of trustees prior to the date retirement is effective.
Payment will be made under the level straight life form of payment if a timely election of an
optional form of payment is not made. The amount of pension under Option A and Option B
shall be the actuarial equivalent of the amount of pension under the level straight life form of
payment. In no event may a member's annual benefit exceed the lesser of:
(1) Option A; one hundred percent survivor pension: Under Option A, a retirant shall be
paid a reduced pension for life with the provision that upon the retirant's death, the
reduced pension shall be continued throughout the future lifetime of and paid to such
person as the retirant shall have nominated by written designation duly executed and
filed with the board of trustees at the time of election of the optional form of payment.
(2) Option B; fifty percent survivor pension: Under Option B, a retirant shall be paid a
reduced pension for life with the provision that upon the retirant's death, one-half of
the reduced pension shall be continued throughout the future lifetime of and paid to
such person having an insurable interest in the retirant's life, as the retirant shall
have nominated by written designation duly executed and filed with the board of
trustees at the time of election of the optional form of payment.
(3) Option C; social security coordinated pension: Under Option C, a retirant shall be paid
an increased pension to attainment of the age when the retirant is eligible to receive
regular social security retirement benefits, and a reduced pension thereafter. The
increased pension paid to attainment of regular social security retirement age shall
approximate the sum of the reduced pension payable thereafter plus the retirant's
estimated social security primary insurance amount.
(4) Other benefit form: Any other actuarially equivalent form of benefit requested by a
member and approved, in their sole discretion, by the board of trustees.
(Ord. No. 58-75-4, § 22, 12-22-75; Ord. No. 58-98-25, § 18, 11-23-98)
Sec. 2-283. Death wile in city employment; elective survivor pension.
(a) Each member nay, on a form provided for that purpose, signed and filed with the board
of trustees, designate a beneficiary_(or beneficiaries) to receive the benefit, if any, which may
be payable in the event of his/her death, and each designation may be revoked by such member
by signing and filing with the board of trustees a new designation of beneficiary form.
Supp. No. 21 177
§ 2-283 ATLANTIC BEACIi CODE
(b) Upon the death of a member who has a valid nomination-of-beneficiary in force, the
beneficiary, if living,.shall be paid a level straight life pension computed according to section
2-281 in .the same manner in alI respects as if the member had elected Option A provided in
section 2-282 and retired the day preceding his/her death, notwithstanding that the member
may not have satisfied the conditions for retirement. Upon a member's retirement, resignation
or termination as a city employee, eligibility for the death benefit payable under this section
will automatically terminate.
(c) If a member failed to name a beneficiary in the manner prescribed in subsection (a)
above, or if the beneficiary (or beneficiaries) named by a deceased member predeceases the
member, the death benefit, if any, which may be payable under the plan with respect to such
deceased member, may be paid in the discretion of the board of trustees either to: (i) Any one
(1) or more of the persons comprising the group consisting of the member's spouse, the
member's descendants, the member's parents, or the member's heirs at law, and the board of
trustees may pay the entire benefit to any member of such group or portion such benefit among
any two (2) or more of them in such shares as the board of trustees, in its sole discretion, shall
determine; or (ii) The estate of such member, provided that in any of such cases the board of
trustees, in its discretion, may direct that the commuted value of the remaining monthly
income payments be paid in a lump sum. Any payment made to any person pursuant to the
power and discretion conferred upon the board of trustees by the preceding sentence shall
operate as a complete discharge of all obligations under the plan with regard to such deceased
member and shall not be subject to a review by anyone, but shall be final, binding and
conclusive on all persons ever interested hereunder.
(Ord. No. 58-75-4, § 23, 12-22-75; Ord. No. 58-87-10, § 1, 11-23-87; Ord. No. 58-88-13, § 1,
11-28-88; Ord. No. 58-98-25, § 19, 11-23-98)
Sec. 2-284. Alternate death while in city employment; pension to spouse and/or
children.
(a) The applicable benefits provided in subsections (b) and (c) of this section or, if the
member designated the member's spouse or children, as set forth below, the benefits provided
in section 2-283, whichever are greater, shall be paid if a member of the retirement system who
has five (5) or more years of credited service and dies while in the employ of the city. The
provisions of this section shall not apply in the case of death .of a member who has a valid
designation of beneficiary, other than the member's spouse or children as set forth below, in
force pursuant to section 2-283.
(b} The .person .to whom the deceased member was married at the time of death shall be paid
a pension equal to a percent of the amount of level straight life pension computed according to
the applicable subsection of section 2-281, based on the deceased member's final average
compensation and credited service. The percent shall be equal to the applicable following
percent:
(1) Benefit group fire: Seventy-five (75) percent;
(2) Benefit group police: Seventy-five (75) percent;
Supp. No. 21 178
ADMINISTRATION § 2-285
(3) Benefit group general: Seventy-five (75) percent.
A surviving spouse's pension shall terminate upon death.
(c) 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 level straight life pension computed according to the applicable
subsection of section 2-281, based on the deceased member's final average compensation and
credited service. The percent shall be equal to the applicable following percent:
(1) Benefitgroup fire. Zero (0) percent during periods a pension is being paid in accordance
with the provisions of subsection (b). Fifty (50) percent during periods a pension is not
being paid in accordance with the provisions of subsection (b);
(2) Benefit group police. Zero (0) percent during periods a pension is being paid in
accordance with the provisions of subsection (b). Fifty (50) percent during periods a
pension is not being paid in accordance with the provisions of subsection (b);
(3) Benefit group general. Zero (0) percent during periods a pension is being paid in
accordance with the provisions of subsection (b). Fifty (50) percent during periods a
pension is not being paid in accordance with the provisions of subsection (b).
A surviving child's pension shall terminate upon attainment of age nineteen (19) years or, if
over nineteen (19), upon no longer being enrolled as a full-time student in an educational
institution, marriage, or death, .and the pension of each remaining eligible child shall be
recomputed.
(Ord. No. 58-75-4, § 24, 12-22-75; Ord. No. 58-87-10, § 1, 11-23-87; Ord. No. 58-98-25, § 20,
1i-23-98)
Sec. 2-285. Maximum amount of pension.
(a) The normal retirement pension payable to a member of the retirement system and who
has not previously.participated in such system, on or after January 1, 1980, shall not exceed
one hundred (100) percent of his final average compensation. However, nothing contained in
this section shall apply to supplemental retirement benefits or to pension increases attribut-
able to cost-of-living increases or adjustments.
(b) No member of the system covered by this article who is not now a member of such system
shall be allowed to receive a retirement 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 pension from another retirement system or plan; provided that this restriction does
not apply to social security benefits or federal.benefits under Chapter 67, Title 10, U.S. Code.
(c) In no event may a member's annual benefit exceed the lesser of:
(1) One hundred fifty thousand dollars ($150,000.00) (adjusted for cost of living in
accordance with Section 415(d) of the Internal Revenue Code, but only for the year in
which such adjustment is effective); or
Supp. No. 21 179
§ 2-285 ATLANTIC BEACH CODE
(2) Notwithstanding the provisions of paragraphs (a) and (b) above, the annual benefit
payable to a member having at least fifteen (15) years of service shall not be less than
the annually adjusted amount provided in the. provisions of IRC Section 415(d).
(3) Compensation in excess of limitations set forth iri Section 401(a)(17) of the Internal
Revenue Code shall be disregarded. 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.
(4) If the member has less than ten (10) years of service with the employer (as defined in
Section 415(b)(5) of the Internal Revenue Code and as modif ed by Section 415(b)(6)(D)
of the Internal; Revenue Code), the applicable limitation in subsection (1) or subsection
(2) of this subsection shall be reduced by multiplying such limitation by a fraction, not
to exceed one (1). The numerator of such fraction shall be the number of years, or part
thereof, of service with the employer; the denominator shall be ten (10) years. For
purposes of this subsection, annual benefit means a benefit payable annually in the
form of a straight-line annuity with no ancillary or incidental benefits and with no
member or rollover contributions. To the extent that ancillary benefits are provided,
the limits set forth in subsections (1) and (2) of this subsection will be reduced
actuarially, using an interest rate assumption equal to the greater of five (5) percent or
the interest rate used in the most recent annual actuarial valuation, to reflect such
ancillary benefits. If distribution of retirement benefits begins before age sixty-two
(62), the dollar limitation as described in subsection (1) of this subsection shall be
reduced actuarially using an interest rate assumption equal to the greater of five (5)
percent or the interest rate used in the most recent annual actuarial valuation;
however, retirement benefits shall not be reduced below seventy-five thousand dollars
($75,000.00) if payment of benefits begins at or after age fifty-five (55). If retirement
benefits begin after age sixty-five (65), the dollar limitation of subsection (1) of this
subsection shall be increased actuarially using an interest assumption equal to the
lesser of five (5) percent or the interest rate used in the most recent annual actuarial
valuation. For purposes of this subsection, average annual compensation for a
member's three (3) highest paid consecutive years means the member's greatest
aggregate compensation during the period of three (3) consecutive years in which the
individual was an active member of the plan. The special maximum retirement income
limitation applicable to police officers at the normal retirement date shall be as set
forth in Section 415(G) and (H) of the Internal Revenue Code of 1986 and amendments
thereto and such amount shall be adjusted in accordance with regulations promulgated
by the secretary of the treasury or his/her delegate.
(Ord. No. 58-75-4, § 25, 12-22-75; Ord. No. 58-88-12, § 1, 8-8-88; Ord. No. 58-88-13, § 1,
11-28-88; Ord. No. 58-98-25, § 21, 11-23-98)
State law reference-Limitation of benefits, F.S. § 112.65.
Sec. 2-286. Subrogation rights.
If a member of the retirement system, retirant or beneficiary becomes entitled to a pension
as the result of an accident or injury caused by the act of a third party, the retirement system
Supp. No. 21 180
ADMINISTRATION § 2-289
shall be subrogated to the rights of such member, retirant or beneficiary against such third
party to the extent of pensions which the retirement system pays or becomes liable to pay on
account of such accident or injury.
(Ord., No. 58-75-4; § 26, 12-22-75; Ord. No. 58-98-25, § 22, 11-23-98)
Sec. 2-287. Reserved.
Editor's note-Ord. No. 58-98-25, § 23, adopted Nov 23, 1998, repealed § 2-287 which
pertained to reserve for retired benefit payments and derived from Ord. No. 58-75-4, § 27,
adapted Dec. 22, 1975.
Sec. 2-288. City contribution.
(a) The plan shall be funded by contributions from member contributions, as provided in
section 2-298, state funding provided for in F.S. §§ 175.101 and 175.121, contributions from the
city and other income sources as authorized by law.
(b) State funding shall be provided from premium taxes collected and disbursed pursuant
to F.S. §§ 175.101 and 185.121, which moneys shall be deposited into the fund within five (5)
calendar days of receipt by the city with the understanding that these premium tax revenues
shall be deposited into and become an integral part of this fund and may not be used for any
other purpose..
(c) City contributions shall be made to the plan, on at least a quarterly basis, in an amount
which, together with the member contributions provided for in section 2-298 and the state
premium taxes funding provided for in subsection (b) and other income sources as authorized
bylaw, sufficient to meet the normal cost of the plan and to fund the actuarial deficiency over
a period of not more than forty (40) years, as determined by the Florida Statutes required
annual actuarial valuation.
Such contributions shall be computed ~as level percents of member payroll in accordance
with generally accepted actuarial principles on the basis of such rates of interest and tables of
experience as the board of trustees shall from time to time adopt. The city shall also contribute
the anticipated cost of any insurance coverage provided retirants and beneficiaries, to the
extent such cost cannot be covered by the unencumbered balance in the plan. The board shall
annually certify to the city the contributions determined according to this section, and the city
shall appropriate and pay to the retirement system, the contributions so certified.
(d) All benefits and.expenses shall be paid in accordance with the provisions of this pension
plan and consistent with Florida Statutes and the Internal Revenue Code.
(Ord. No. 58-75-4, § 28, 12-22-75; Ord. No. 58-98-25, § 24, 11-23-98)
Sec. 2-289. Reserved.
Editor's note-Ord. No. 58-98=25, § 25, adopted Nov. 23, 1998, repealed § 2-289 which
pertained to reserve for undistributed investment income and derived from Ord. No. 58-75-4,
§ 29, adopted Dec. 22, 1975. .
supp. No. 21 181
=: § 2-290 ATLANTIC BEACH CODE
=Sec..2=290. :Investment of retirement system-assets.
The board of trustees shall be the trustee of the monies and assets of the retirement system.
The board shall have full power and authority, in their sole discretion, to invest and reinvest
such funds as are not necessary for current expenditures or liquid reserves, as they may from
time to time determine: The trustees may sell, exchange or otherwise dispose of such
investments at any time. The trustees shall have the authority, in respect to any stocks, bonds
or other property, real or personal, held by them as trustees, to exercise all such rights, powers
and privileges as might be lawfully exercised by-any person owning similar stocks, bonds or
other. property in his own right. The trustees are authorized to vary from the investment
procedures outlined in F.S. Chs. 175 and 185, and invest in those stocks, bonds and other
securities permitted by the investment policies or guidelines adopted by the trustees.
(a) Delegation and allocation of investment functions.
(1) The trustees shall have the power and authority to appoint one (1) or more
investment managers who shall be responsible for the management, acquisition,
disposition, investing and reinvesting of such of the assets of the trust fund as the
trustees shall specify. Any such appointment maybe terminated by the trustees
upon written notice. The fees of such investment manager shall be paid out of the
trust fund. The trustees shall require that the investment manager acknowledge
in writing that it is a named fiduciary with respect to the plan.
(2) In connection with any allocation or delegation of investment functions under this
section, the trustees shall, from time to time, adopt appropriate investment
policies or guidelines, which may vary from the investment procedures outlined in
F.S. Chs. 175 and 185.
(Ord. No. 58-75-4, § 30, 12-22-75; Ord. No. 58-85-5, § 1, 7-22-85; Ord. No. 58-92-17, § 1,1-27-92;
Ord. No. 58-98-25, § 26, 11-23-98)
Sea 2=291. Divisions.
The retirement system shall consist of three (3) divisions, one (1) for members who are police
officers, or one (1) ,for members who are firefighters, and one (1) for all other members.
Separate accounting of the transactions of the retirement system shall be maintained for each
division. and shall clearly indicate the equity of each division in the assets of the retirement
system. The account separation shall be effective a of June 1, 1976. Each division shall be
regarded as a separate trust fund. The provisions of this section refer only to the accounting
records of the retirement system and shall not be construed a requiring a physical segregation
of the assets.of.the retirement system between the divisions.
(Ord. No. 58-75-4; § 31, 12-22-75)
Sec. 2-292. • Expenses.
The expenses of administering a retirement system, including the premiums for fiduciary
liability .and waiver of recourse insurance covering the board of trustees and the retirement
system,:shallbe paid by the city.
(Ord. No. 58-75-4, § 32, 12-22-75; Ord. No. 58-98-25, § 27, 11-23-98)
Supp. No: 21 182
ADMINISTRATION § 2-295
Sec. 2-293. Reserved.
Editor's note-Ord. No. 58-98-25, § 28, adopted Nov 23, 1998, repealed § 2-293 which
pertained to insurance coverage for.. retirants and beneficiaries and derived from Ord. No.
58-75-4, §~33, adopted Dec. 22, 1975. .
Sec. 2-294. Method of making payments.
All payments under this division shall be made according to the provisions of the City
Charter and city ordinances governing the disbursement of city monies. No payment shall be
made that has not been authorized by a specific or continuing resolution of the board of
trustees.
(Ord. No. 58-75-4, § 34, 12-22-75)
Sec. 2-295. Assignments prohibited.
(a) Generally. The right of a person to a pension, disability, death or survivor benefit, and
any other right accrued or accruing to any person under the provisions of this division, and any
monies in assets belonging to the retirement system, shall not be subject to execution,
garnishment, attachment, the operation of bankruptcy or insolvency law, or any other process
of law whatsoever, and shall be unassignable except as is specifically provided in this division.
If a member is covered under a group insurance or prepayment plan participated in by the city,
and should the member or his/her beneficiary be permitted to and elect to continue the
coverage as a retirant or beneficiary, the member or beneficiary may authorize the board of
trustees to deduct required payments to continue coverage under the group insurance or
prepayment plan. The city shall have the right of set off for any claim arising from
embezzlement by or fraud of a member, retirant or beneficiary in addition to any other
remedies, including forfeiture of benefits, provided bylaw.
(b) Direct transfers of eligible rollover distributions. This subsection applies to distributions
made on or after October 1, 1993. Notwithstanding any provision of the plan 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 of trustees, to have any portion of an
eligible rollover distribution paid directly to an eligible retirement plan specified by the
distributee in a direct rollover.
(1) "Eligible rollover distribution" means 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 (1) of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or life expectancy) of
the distributes or the joint lives (or joint life expectancies) of the distributee and the
distributee:s designated beneficiary or for a specified period often (10) years or more;
any distribution to the extent such distribution is required under Section 401(a)(9) of
the Internal Revenue Code; and the portion of any distribution that is not includable
in gross income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities).
Supp. No. 21 183
§ 2-295 ATLANTIC BEACH CODE
(2) "Eligible retirement" means an individual retirement account described in Section
408(a) ~of the Internal Revenue Code, an individual retirement annuity described in
Section 408(b) of the Internal Revenue Code, an annuity plan described in Section
403(a) of the Internal Revenue Code, or a qualified trust described in Section 401(a) of
the Internal Revenue Code, that accepts the distributee's eligible rollover distribution.
However, in the case of an eligible rollover distribution to the surviving spouse, an
eligible retirement plan is an individual retirement account or individual retirement
annuity.
(3) "Distributee" includes an employee or former employee. In addition, the employee's or
former employee's surviving spouse, or the employee's or former employee's spouse or
former spouse who is the alternate payee under an income deduction order, is a
distributee with regard to the interest of the spouse or former spouse.
(4) "Direct rollover" means a payment by the plan to the eligible retirement plan specified
by the distributee.
(Ord. No. 58-75-4, § 35, 12-22-75; Ord. No. 58-98-25, § 29, 11-23-98)
Sec. 2-296. Errors.
Should the board of trustees determine that any member, retirant or beneficiary is being
paid from the retirement system more or less than is correct, the board of trustees shall correct
the error and, as far as practicable, shall adjust the payment in such manner that the actuarial
equivalent of the benefit to which the member, retirant or beneficiary was correctly entitled
shall be paid.
(Ord. No. 58-75-4, § 36, 12-22-75; Ord. No. 58-98-25, § 30, 11-23-98)
Sec. 2-297. Protection against fraud.
Whoever with intent to deceive shall make any statements and/or reports required under
this division which are untrue, or shall falsify or permit to be falsified any record or records of
the retirement system, or who shall otherwise violate, with intent to deceive, any of the terms
or provisions of this division, shall be guilty of a city offense.
Any member who is convicted as provided in F S. § 112.3173 of a specified offense committed
prior to retirement, or whose employment is terminated by reason of an admitted commission,
aid or abatement of a specified offense, shall forfeit all rights and benefits under this pension
plan,. except for return of accumulated contributions as of his date of termination.
(Ord. No. 58-75-4, § 37, 12-22-75; Ord. No. 58-98-25, § 31, 11-23-98)
Sec. 2-298. Member contributions.
(a) Member contributions by benefit group fire shall be five and five hundred fifty-five
thousandths (5.555) percent of salary:-and by benefit group police bargaining unit members
covered by the current bargaining unit contract shall be one (1) percent of salary and by other
Supp. No. 21 184
ADMINISTRATION § 2-298
benefit group police members shall be four and eight hundred fifteen thousandths (4.815)
percent of salary which shall be deducted from the member's pay and paid over into the
retirement system at the same time as city contributions are made.
(b) Member contributions-for benefit group general shall be two (2) percent of salary and
said contribution shall be deducted from the member's pay and paid over into the retirement
system at the same time as the city contribution is made to the retirement system.
(c) The City of Atlantic Beach shall assume and pay the member contributions set forth
above in lieu of payroll deductions from such members' earnings. No member shall have the
option of choosing to receive the contributed amounts directly instead of having them paid by
the city directly to the retirement system. All such contributions by the city shall be deemed
and considered as part of the member's contributions and subject to all provisions of this plan
pertaining to contributions of members. Such contributions shall additionally be considered as
part of the member's compensation for purposes of determining final average compensation
and any other benefits hereunder and for determining the member's hourly wage rate for
purposes of FICA contributions, worker's compensation, and overtime compensation. This city
pick up of contributions is a result of a commensurate reduction of each member's pay and is
intended to comply with Section 414(h)(2) of the Internal Revenue Code.
(d) If an employee leaves the service of the city before accumulating aggregate time of five
(5) years toward retirement and before being eligible to retire under the provisions of this
article he/she shall be entitled to a refund of all of his or her contributions made to the city
pension trust fund, plus any interest accumulated at a rate of interest determined annually by
the board of trustees, less any disability benefits paid to him/her. If an employee who has been
in the service of the city for at least five (5) years and has contributed to the pension trust fund
as provided elects to leave his or her accrued contributions in the trust fund, such employee,
upon attaining the age as required in section 2-278, may retire with the actuarial equivalent
of the amount of such retirement income otherwise payable to him/her.
(e) If a member who terminates employment elects a refund of contributions and:
(1) .Some or all of the refund is eligible for rollover treatment, as defined by the internal
revenue service;
(2) Elects to have such eligible distribution paid directly to an eligible retirement plan or
IRA; and
(3) Specifies the eligible retirement plan or IRA to which such distribution is to be paid (in
such form and at such time as the distributing plan administration may prescribe),
the distribution will,be made in the form of a direct trustee-to-trustee transfer to the specified
eligible retirement plan.
(Ord. No. 58-87-8, § 2, 10-26-87; Ord. No. 58-88-13, § 1, 11-28-88; Ord. No. 58-93-19A, § 1,
10-25-93; Ord. No. 58-96-21, § 1, 2-12-96; Ord. No. 58-97-22, § 1, 2-24-97; Ord. No. 58-97-23, §
2, 7-14-97; Ord. No. 58-97-24, § 1, 9-8-97; Ord. No. 58-98-25, § 32, 11-23-98)
Supp. No. 21 185
§ 2=299
ATLANTIC BEACH CODE
Sec. 2-299. Benefit limitations and required distributions:
{a) Benefits paid under the city employees retirement system shall not exceed the
limitations of Internal .Revenue Code Section 415, the provisions ,of -which 'are hereby
incorporated by reference.
(b) Notwithstanding any .provisions in this section to the contrary, the distribution of
benefits shall be in accordance with the following requirements and otherwise comply with
Internal Revenue Code Section 401(a)(9) and the regulations thereunder, the provisions of
which are incorporated herein by reference:
(1) Amember's benefit shall bedistributed tohim/her not later than April l of the calendar
year following the later of the calendar year in which the member attains age seventy
and one-half (70~/z) or the calendar year in which the member retires. Alternatively,
distributions to a member must begin no later than the applicable April 1, as
determined under the preceding sentence, and must be made over the life of the
member (or the life expectancies of the member and the member's designated
beneficiary) in accordance with regulations.
(2) Distributions to a member and his/her beneficiary shall only be made in accordance
with the incidental death benefit requirements of [Internal Revenue] Code Section
401(a)(9)(G) and the regulations thereunder. -
(Ord. No. 58-96-21, § 1, 2-12-96)
Secs. 2-300-2-310. Reserved.