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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: 2 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. 4 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 6 > > > > (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.:- 7 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 8 . 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. 9 (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 10 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 11 (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. 12 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. 13 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. 14 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: 16 ~ 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.