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Ordinance 06-1789 ORDINANCE NO. 06-1789 AN ORDINANCE OF THE CITY OF LONGWOOD, SEMINOLE COUNTY, FLORIDA, UPDATING THE AC'T'UARIAL PROVISION OF THE RETIREMENT PLAN AND TRUST FOR THE FIREFIGHTERS AND POLICE OFFICERS OF THE CITY OF LONGWOOD (THE "PLAN"), AMENDING THE PLAN TO COMPLY WITH THE MANDATORY DISTRIBUTION PROVISIONS OF THE INTERNAL REVENUE CODE ("IRC") SECTION 401(a)(31)(B) AND REMOVING THE DISCRETIONARY OPTIONAL FORM OF RETIREMENT BENEFIT; PROVIDING FOR CONFLICTS, SEVERABILITY AND EFFECTIVE DATE. WHEREAS, the, City Commission ("Commission") of the City of Longwood, Florida, ("City") established a Retirement Plan rand Trust for the :Firefighters and Police Officers of the City of Longwood (the "Plan") pursuant. to ordinance number 95-828, subsequently amended; and, WHEREAS, The City desires to amend the Plan to comply with all legislative changes; and WHEREAS, Article 19 of the Plan aul:horizes the City Commission to amend the plan, in whole or in part, either retroactivel'~.y or prospectively, by delivering to the Tnistee a written. amendment in accordance with the limitations set out in that section; and WHEREAS, in order to comply with applicable tax law deadlines Amendment Two was executed by an officer of the City by January 31, 2006; and W HERE~AS, the City Commission de>ires to amend t:he Plan and deems the amendment to be in the best interests of its Participants and Beneficiaries. NOW, 'T'HEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LONGWOOD, FLORIDA, IN ITS CAPACITY AS PLAN TRUSTEE HEREBY AMENDS THE PLAN AS FOLLOV~S: SECTION 1: That Amendment Two of the P]an, a copy of which is attached as Exhibit A, be and it is hereby adopted and shall be effective as of the dates indicated therein. Ordinance No. OEi-1789/page 2 SECTION 2: CONFLICTS. All ordinances or parts of ordinances in conflict herewith are hereby repealed. FIRST RE~~DING: February 20, 2006 SECOND REA..DING: ~ ~ Id r~ ~ , Z-~ PASSED AND ADOPTED THIS (Q~ DAY OF t^C. ~ A. D., 2006.. G Haywood G. Bund J Mayor :~~T i EST: i_ Sarah M. Mij,ares, City Clerk Approved z:> .forn and 1'egality for the use and reliance of the City of Longwood, Florida, only. ~ / Rirha'rd S. Taylor Jr., Cit.• Attorney AMENDMENT TWO TO THE RETI1tEMENT PLAN AND TRUS7C FOR TIIE FIREFIGHTERS Al`dD POLICE OFFICERS OF TIIE CITY OF LONGWOOD Amendment Two is made this ~J~ day of January, 2006, by the City of Longwood (the "City"). WHEREAS, the City of Longwood (the "City'') sponsors the Retirement Plan and Trust for the Firefighters and Police Officers of the City of Longwood (the "Plan"); and WHEREAS, the City desires to amend the Plan to comply with legislative changes; and WHEREAS, Article 19 of the Plan Document authorizes the City, as the Empl"over under the Plan, to amend the Plan, in whole or in part, either retroactively or prospectively, and NOW, THEREFORE, the Plan is hereby amended as follows: 1. Exhibit B of the Basic Plan Document entitled "Actuarial Equivalent" is amended to update the Plan's actuarial provisions and provide for definitely determinable benefits, as required under the Internal Revenue Code and as approved by the IRS, effective January 1, 1996, is attached hereto. 2. Section (A)3 of .Article 10 of the Basic Plan Document regarding a discretionary optional form of retirement benelrt payment shall be removed from t:he Plan in its entirety, effective February 1, 2006. 3. Section (f) of Article 10 of the Basic Plan Document regarding the mandatory distributions provision r shall be deleted from the Plan in its entirety and substitute the following in lieu thereof, effective for all distributions made on and after January 1, 2006: Notwithstanding anything herein to the contrary, the Board in its discretion, will make a lump sum payment to a Participant or a Participant's Beneficiary in the event that the monthly benefit amount is less than one hundred dollars ($100), or the total commuted value of the remaining monthly income payments to be paid does not exceed one thousand dollars ($1,000). Any such payment made to any person pursuant to the power and discretion conferred upon the Board by the preceding sentence shall operate as a complete discharge of all obligations under the Plan with regard to such Participant and shall not be subject to review by anyone, but shall be final, binding and conclusive on all persons. 4. Except as hereinabove amended, the Plan shall remain in full force and effect. IN WITNESS WI~REOF, this Amendment T~avo has been executed as of the day and year first written above. EMPLO~.'ER: City of Longwood C~ By: ( Pr t Name: ~OH'?.! J`. 7D2AGZ~ ~ C lT~ R~ ~ w.1 ~ 5'Y1L147~t~ 12. C:\N RPORTB L\TAM PA 1 \ERI V ERAV 31614_ l . DOC r, e- Florida D Municipal Pension Trust Fund FL®~®A NIUNIC:IP~~ P~~®N T~US~ ~U~® ®~INEI® ENFeT PLAN ®~CIJ~~~1T RE~/ISED OCTC)BER 1, 2005 Sponsored and Administered by: FLORIDA LEAGUE.OF CITIES, 1NC. 301 S. Bronough Street,, P.O. Box 1757 Tallahassee, FL 32302-1757 (850) 222-9684 Fax (850) 2;22-3806 TABLE OF CONTENTS ARTICLE 1 DEFINITIONS Section 1.01- Section 1.31 Definitions 5 ARTICLE 2 PARTICIPATION Section 2.01 Conditions of Eligibility 13 Section 2.02 Participation 13 Section 2.03 Change in Designation of Beneficiary 14 ARTICLE 3 BOARD OF TRUSTEES Section 3.01 Board of Trustees 15 ARTICLE 4 FLNANCES AND FUND MAl`~AGEMENT Section 4.01 Establishment and Operation of Fund 18 ARTICLE 5 CONTRIBUTIONS Section 5.01 Participant Contributions _ _ 22 Section 5.02 State Contribution 22 Section 5.03 Employer Contributions 22. Section 5.04 Other 23 ARTICLE 6 BENEFIT AMOUNTS AND E:LIGIBILI7Y Section 6.01 Normal Retirement Date _ 24 Section 6.02 Normal Retirement Benefit, 24 Section 6.03 Normal Form of Benefit 25 Section 6.04 Cost of Living Adjustments to Benefit Payments 25 Section 6.05 Early Retirement Date 25 Section 6.06 ~ Early Retirement Benefit _ 25 Section 6.07 Deferred Retirement Option Program or `'DROP" 26 ARTICLE 7 PRE-RETIREMENT DEATH Section. 7.01 Death Prior to Vesting In-Ling-Of-Duty 27 Section 7.02 Death After Vesting Ln-Line-0f- Duty 27 Section 7.03 Death Prior to Vesting Off-Du1y 27 Section 7.04 Death After Vesting Off-Duty_ 27 Section 7.05 Beneficiaries in Receipt of Pad/ment 27 ~ ARTICLE 8 DISABILITY 2 bB PIAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent Section 8.01 Disability Benefits In the Line of Duty 28 Section 8.02 G~isability Benefits Off--Dory- 29 Section 8.03 Conditions Disqualifying Disability Benefits 29 Section 8.04 Physical Examination Requirement 30 Section 8.05 1isability Payments 31 Section 8.06 IDisability Payments and V1~orkers Compensation 31 ARTICLE 9 'VESTING 33 ARTICLE 10 OPTIONAL FORMS OF BENEFITS 35 ARTICLE 11 BENEFICIARIES 38 ARTICLE 12 CLAIMS PROCEDURES 39 ARTICLE 13 REPORTS TO DIVISION OF RETIREMENT 39 ARTICLE 14 ROSTER OF RETIREES 39 ARTICLE 15 BOARD ATTORNEY AND PFZOFESSIONALS 40 r ~ ARTICLE 16 ,MAXIMUM PENSION Section 16.01 Basic Limitations 41 Section 16,02Participation in Other Defined Benefit Plans 41 Section 16.03Adjustrnent in Limitations 41 Section 16.04Benefit Restoration Plan & Trust 44 ARTICLE 17 DISTRIBUTION OF BENEFITS 48 ARTICLE 18 MISCELLANEOUS PROVISIONS Section 18.01 Interest of Participants in Pension Plan 51 Section 18.02Summary Plan Descriptions 51 Section 18.03Gender and Number 51 Section 18.04Headings and References 51 Section 18.05Benefil: Improvements 41 Section 18.06Proceclures for Unclaimed Benefit- 52 Section 18.07QualifiE~d Military Service 52 Section 18.08 Domestic Relations Order Submission. 52 • Section 18.09 Plan Amendments 53 3 DB PLAN RESTATEMENT'November 20, 2003; Amended October i, 20(15 Exhibit B Actuarial Equivalent ARTICLE 19 REPEAL OR TERMINATION ~OF PLAN 54 ARTICLE 20 EXEMPTION FROM EXECUTION NON ASSIGNABILITY _ 57 ARTICLE 21 FORFEITURE OF PENSION: CONV1CTfON AND FORFEiT'URE 58 ARTICLE 22 PENSION VALIDITY 60 ARTICLE 23 SIGNATORIES 61 EXHIBIT A MASTER- TRUST AGREEMEINT 62 EXHIBIT B ACTUARIAL EQUIVALENT 63 4 DB PlAN RESTATEMENT-November 20, 2003; Amended October 1, 201)5 Exhibit 8 Actuarial.Equivalent /~R1°ICL.E 1 DEFINITI~~NS As used herein. unless otherwise defined or required by the context, the following words and phrases shall have the meaning indicated: 1.01 "Accurnulated•Contributions": shall mean a Participant's own contributions without interest. For those Participant's who purchase Credited Service with interest. or at no cost to the Plan, only that portion of any payment representing the amount attributable to the Participant's contributions based on the applicable Participant contribution rate shall be included in Accumulated Contributions. 1..02 "Accrued Benefit": t~ shall mean a fraction of the benefit to which a Participant would be entitled at their Normal Retirement Date. The numerator l~f the. fraction is the years of participation completed to date and the denominator is the years of participation in the Plan that would have been earned if the Participant continued employment until their Normal Retirement Date. 1.03 "Actuary"_ shall mean an actuary that is a member of the Society of Actuaries or the American Academy of Actuaries and who is enrolled under subtitle C of Title III of the Employee Retirement Income Security Act. of 1974. 1.04 "Actuarial Equivalent":. Actuarial Equivalent is defined in the attacf•iment marked Exhibit B. 1.05 "Adoption Agreement": shall mean the document outlining the specific benefits of the P{an, as executed by the Employer and attached to and made part of the Plan. J DB PLAN RESTATEhAEPJT-November 20, 2003; Amended October'I. 2005 ExhibitB Actuarial Equivalent 1.06 "Average f=inal Compensation": shall mean one-twelfth (1/12) of the averag?~ annual compensation of the five (5) best years of the last ten (10) years of Credited Service prior to retirement, termination or death, or the career average, whichever is greater. A year shall be defined as the twelve (12) consecutive months im?T?ediately prior to death. disability or retirement. Ln the case of a Volunteer Firefighter, Average Final. Compensation shall mean the average salary of the five (5) best years of i:he ten (10) best contributing. years prior to change in status to a permanent full-time Firefighter or retirement as a Volunteer Firefighter or the career average of a Volunteer Firefighter, whichever is greater. 1.07 "Beneficia;ry": shall mean thE; person or persons entitled to receive benefits hereunder at the death of a Participant who has or have been designated in writing by the Participant and filed .1 with the Boarcl. If no such designation is in effect, or if no person so designated is living, at the time of death of the Participant, the beneficiary shall be the estate of the Participant. 1.08 "Board"~ shall mean thf: Board of Trustees, which shall administer and manage the Plan herein provided and serve as Trustees of the Fund. 1.09 ~ "Code": shall mean the Internal Revenue Code of 1986.. as amended from time to time. 1.10 "Credited Service": shall mean the total number of years and fractional parts of years as a Participant during which the Participant made required contributions to the Plan., omitting intervening years or fractional parts of year; when such Participant is not employed by the Employer. Credited Service may be given for years of employment as a Police 6 DB PIAN RESTATEMENT•November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent Officer; Firefighter or Public Safety Officer, prior to plan inception at the discretion of the Employer and as stated in the Adoption AgrE~ement. A Participant may voluntarily leave his Participant contributions in. the Fund for a period of five (5) ye<~rs after leaving the employ of the Employer pending the possibility of being rehired in a position eligible far participation in this Plan, without losing credit for the time that he was a Participant in the Plan. if a vested Participant does not become reemployed within five (5) years, then the Accumulated Contributions will be returned to the Participant without interest, unless otherwise specifed in the Adoption Agreement, upon receipt of written request of the Participant. If a Participant who is not vested is not reemployed with the Employer within five (5) years, his Accumulated Contributions shall be returned without interest. Upon return of a Participant's Accumulated Contribution, all rights and benefits under the Plan are forfeited and terminated. Upon any reemployment in a position eligible for participation in this Plan, a Participant: shall not receive credit for the years and fractional parts of years for which he has withdrawn his Accumulai:ed Contributions from the Plan unless the Participant repays into the Fund the contributions he has withdrawn. rNith interest, as determined by the Board, within ninety (t~0) days after reemployment. A Participant shall receive Credited Service for all purposes, including vesting, for the years or fractional parts of years that he is engaged in the military service of the Armed Forces of the United States, voluntarily or involuntarily, after employment with the Employer, to perform training or service, provided that: (A) The Participant must return to his employment with the Employer within one (1) year following the date of military discharge or his release from active service,. (B) The Participant is entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act (USERRA), (P.L.103-353). . 7 DB PLAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent (C) The maximum credit for military service pursuant to this paragraph shall be five (5) years. 1. 11 '`Deferred Retirement Option Plan" or "DROP": shall mean a local law plan retirement option in which a Participant may elect to participate.. A Participant may retire for all purposes of the plan and defer receipt of retirement benefits into a DROP account while continuing employment with his employer. However, a Participant who enters the DROP and who is otherwise eligible to participate shall not thereby be precluded from participating or continuing to participate in a supplemental plan in existence on; or created after, the date of adoption of a~ DROP by the Employer pursuant i:o Section M. "DROP," of the Adoption Agreement. 1.12 "Early Retirement Date": shall mean thE: date which is specified in the Adoption Agreement -Section G3, Early Retirement Date. 1.13 "Effective Date": shall mean the date of this Plan as specified in the Adoption Agreement -Section A1. 1.14 "Employee"' shall mean they classes of employees designated as eligible to participate in this Plan as specified in the Adoption Agreement -Section B., except as otherwise provided in the Adoption Agreement. 1.15 "Empioyeir": shall mean the municipality, governmental entity, public agency or political subdivision established within the State of Florida that adopts this Plan. 1.16 "Firefrghter='• shall mean any person employed solely by a. constituted fire department or public safety department o1` any municipality or special fire control district who is certified as a 8 DB PLAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 F~chibit B Actuarial Equivalent Firefighter as a condition of employment in accordance with the provisions of Section 633,35, FI. Stat., and whose duty is to extinguish fires, to protect life, and to pt:otect property. 1.17 "Fund": shall mean the Trust Fund estab fished herein as part of the Plan.. 1.18 "Limi#atioin Year": shall mean they Plan Year. 1.19 "Normat Retirement Date": , shall mean the date as specified in the P~doption Agreement -Section G1 Normal Retirement Dalte. 1.20 "Participant or IVlember" shall mean thE; actively employed Employees who are eligible to participate in this Plan as specified il-? the Adoption Agreement -Section B, Plan and Section C, Eligibility. Benefit improvements which, in the past, have been provided for by amendments to the Plan adopted by the Employer by ordinance or resolution, and any benefit improvements which might be made in the future shall apply prospectively and shall not apply to Participants who terminate emplayrnent or who. retire prior to the effective date of any ordinance or resolution adopting such benefit improvements, unless such ordinance or resolution specifically provides to the contrary. 1.21 "Plan": shall mean the pension Plan as herein set r'orth and as may be amended from time to time. 1.22 "Plan Year": 9 DB P(AN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit l3 Actuarial Equivalent shall mean the' Plan's accounting ,year of twelve (12) consecutive months commencing on October 1 of each year and ending the following September 30, or the Plan Year as specified in the. Adoption Agreement. 1.23 ".Police Officer": shall mean any person who is elected, appointed, or employed full time by any municipality, who is certified or required to be certified as law enforcement offir_er in compliance with s. 943.1395, FI. Stat., who is vested with authority to bear arms and make arrests, and whose primary responsibility is the prevention and detection of crime or the enforcement of the penal, criminal, i:raffic, or highway laws of the State. This definition includes all certified supervisory and command personnel whose duties include, in whole or iri part, the supervision, training, guidance, and management responsibilities of full-time law enforcement officers, part-time law enforcement officers, or auxiliary Ia~N enforcement officers, but does not include part-time law enforcement officers or auxiliary law enforcement officers as the same are defined in s. 943..10(6) ~ and (8), FI. Stat., respectively. A Police Officer classification shall also include a public safety officer Urho is responsible for performing both police and fire services. 1.24 "Public Safety Officer": shall mean an actively employed person who is responsible for performing both firefighter and police officer services. A Public Safety Officer shall be considered a "police officer' for the purposes of this Plan. 1.25 "Salary/Compensation": For Firefghters, `compensation" or "salary" means the fixed monthly remuneration paid a Firefighter; where, as in the case of a Volunteer Firefighter, remuneration is based on actual services rendered, the term means the total cash remuneration received yearly for such services, prorated on a monthly basis. For Police Officers, "compensation" or "salary" means the total cash remuneration paid to a Police O'~ficer for services rendered, incltading overtime payments which may be io DB PLAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent limited to not less than 300 hours per calendar year, but not including any payments for extra duty or a special detail work performed on behalfof a second party employer. Compensation in excess of the limitations :.et forth in Section 401(a)(17) of the Code shall not be included as salary/compensation for purposes of the Plan. See Section D of the Adoption Agreement for further details. 1.26 "Spouse": shall mean the lawful wife or husband of Participant at the time benefits become payable. 1. 27 "Total and Permanent Disability": shall mean a physical or mental condition of a Participant resulting from bodily injury, disease, or mental disorder which renders him incapable of employment as a Firefighter, Police Officer or Public Safety Officer, and which condition constitutes total disability as determined by the Board. 1.28 "Trust Fund or Trust": shall mean the Trust Fund established under this Plan to hold Plan assets and to which contributions <3re to be paid and benefits held. Nothing herein shall preclude the establishment of more than one trust fund a.; may be required by law or adopted by the Employer. 1.29 "Trustee"• shall mean the; person or persons named as and making up the Board of Trustees or Board, who shall administer and manage the Plan.. 1.30 "Valuation Date": shall mean the first day of the Plan Year. ii DB PLAN RESTATEMENT"-November 20, 2003; Amended October 1, 2005'Exhiblt 8 Actuarial Equivalent 1.31 "Volunteer Firefighter": shall mean any person whose name is carried on the active membership roll of a constituted volunteer fire department or a combination of a paid and volunteer fire department of any municipality or special fire control district and whose duty is to extinguish fives, protect life, and to protect property. Compensation for services rendered by a Volunteer Firefighter shall not disqualify him as a volunteer. A person shall not be disqualified as a Volunteer Firefi~~hter solely because he has other gainful employment. Any person who volunteers ~issistance at a fire, but is not an active member of the department described hereirv is not a Volunteer Firefighter within the meaning of this: paragraph. ~ 12 DB PLAN RESTATEMENT-Novzmber20, 2003; Amznded Octobzr 1, 2005 Exhfbft B Actuarial Equivalent ARTICLE 2 PARTICIPA,TIOIV 2.01 Conditions of Eligibility A Participant shall become eligible to participate in this Plan as specified in Section C of the Adoption Agreement. As a condition of eligibility, the Employee participants shall be required to complete a medical examination as prescribed by the Board, and provide complete and accurate information concerning their health status as requested by the Board. Any material misstatements or omissions of required health or medical information by an applicant or Participant shall be grounds for denial of benl~fits. Based upon medical evidence of any pre-existing adverse health condition, resulting from the prescribed examination or other medical records or history, the Board may determine ineligibility for disability benefits hereunder, as related to such pre-existing condition. A Participant may be declared ineligible for disability benefits only at the time of the initial examination provided in this section, or at a later date if the Board established that a condition existed at the time of the Participant's emK~loyment or date of participation, and the condition was known to the employee. A determination of pre-existing condition shall be recorded on the Participant's record oi~ membership, a copy of which shall be provided to the Participant, and shall be reflected in the minutes of the Board meeting at which such determination was made by the Board. The procedures followed and the determination of the Board as to apre-existing condition shall be considered on a uniform, non-.discriminatory basis. 2.02 Participation Each Participant shall complete a form prescribed by the Board providing the. following information: (A~ enrollment in the Plan ~ (B) designation of a beneficiary or beneficiaries, . 13 DB PIAN RESTATEMENT"-November 20, 2003: Amended October 1, 2005 Exhibit B Actuarial Equivalent (C) a certified statement as to prior medical history, and a waiver to release and access medical records. 2.03 Change in Designation of Beneficiary A Participant may from time to time change his designated Beneficiary by written notice to the Board upon forms provided by the Boarci. Upon such change, the rights of all previously designated beneficiaries #o receive any benefits under the Plan shall cease. A change of beneficiary shall not require consent of the beneficiary. ~ - 14 DB PIAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalznt ARTICLE 3 BOARD OF TRUSTEES 3.01 Board of ,Trustees (A) The sole and exclusive administration of and responsibility for the proper operation of the .Plan is hereby vested in a Board of Trustees. These trusi:ees shall be selected according to Section 175.061 (1)(b), FI. Stat., and Section 185..05, (1)(b), FI. Stat. Each Board of Trustees shall be a legal entity with, in addition to other powers and responsibilities contained herein, the power to bring and defend lawsuits of every kind, nature, and description. Accurate and detailed accounts of all Board meetings must be kept. All accounts, books and records relai:ing thereto shall be open to inspection and audit in accordance with general law. The Board shall issue such reports as are requested and make available to the same for inspection any and all records and accounts which are deemed appropriate in order to comply with governmental regulations issued thereunder. (B) The Board members shall, by a majority vote, elect a Chairman and a Secretary. The Secretary of the Board shall keep a complete minute book of the actions, proceeding, or hearings of the Board. The Board members shall not receive any compensation as, such., but may receive expenses and per diern as provided by law. (C) Each Board member shall be entitled to one vote on the Board. A . majority of the Board shall be necessary for any decision of the Board. A Board member shall have the right to abstain from voting as the result of a conflict of interest provided that Board member states in writing the nature of the conflict and complies with the provisions of Section 112.3143. FI. Stat. (D) The Board of Trustees shall engage such actuarial, accounting, legal. and other services. as shall be required to transact. the business of the Plan. They compensation of all persons engaged by the Board acid all other DB PLAN RESTATEMENT-November 20,2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent expenses of the Board necessary for the operation of the Plan shall be paid from the Fund at such rates and in such amounts as the Board of Trustees shall approve. (E) The duties and responsibilities of the Board of Trustees shall include, but not necessarily be limited to, the following: (1) To construe the provisions of the Plan and determine all questions arising thereunder. (2) Ta determine ail questions relating to eligibility and participation. (3) To determine the amount of all benefits hereunder. (4) Ta establish uniform rules and procedures to be followed for administrative purposes, benefit applications, and all matters required to administer the Plan. - (5) Ta distribute to Participants, at regular intervals, information ~ concerning the Plan. (6) To receive and process all applications for participation and benefits. _ (7) To authorize all payments whatsoever from the Fund, and to notify the disbursing agent, in writing, of approved benefit payments and other expenditures arising through operation of the Plan and Fund. (8:) To have performed actuarial studies and at least triennial valuations, as required by law., and make recommendations regarding any and all changes in the provisions of the Plan. (9) To perform such ether duties as required to administer the Plan. (10) To arrange for and select physicians for medical exams and review and advise on medical disability eligibility issues. (11) To invest and reinvest the assets of the Fund. 16 DB PLAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent (F) At (east once every three (3) years, the Board shall retain a professionally qualified independent consultant who shall evaluate the performance of any existing profi~ssional money manager and shall make recommendations to the Board regarding the selection of money managers for the next investment term. Tht=se recommendations shall be considered by t:he Board at its next regularly scheduled meeting. 17 DB PLAN RESTATEMENT-November 20, 2003; Amended October 1 , 2005 Exhibit'B Actuarial Equivalent AR1'ICL,E 4 FINANCES AND FUNC? MANAGEMENT 4.01 Establishment and Operation of Fund (A) As part of the Plan, there i~~ hereby established the Fund, into which shall be deposited all of the contrir~utions and assets whatsoever attributable to the Plan: including any assets o~~ any prior municipal trust fund(s). (B) The actual custody and supervision of the Fund (and assets thereof) shall be vested in the Board. Payment of benefits. and disbursements from the Fund shall be made by the disbursing agent but only ,upon wriften authorization from the Board or its designee. (C) All funds of the Plan mad/ be deposited by the Board with the ~ Employer, acting in a ministerial capacity only, who shall be liable in the same manner and to the same e~aent as he is liable for the safekeeping of funds for the Employer. However, any funds so deposited with the Employer shall be kept in a separate fund by the Employer or clearly identified as such funds of the Plan. In lieu thereofi~, the Board shall deposit 'the funds in a qualified public depository as defined in Section 280.02, FI. Stat., which depository with regard to such funds shall conform to and be bound by all of the provisions of Chapter 280, FI. Stat. In order to fulfill its investment responsibilities as set forth herein, the Board may retain the services of a custodian bank, an investment ~~dviser registered under the Investment Advisors Act of 1940, or otherwise exempt from such required registration, an insurance company, or a combination of these, for the purpose of inve:~tment decisions and management. Such investment manager shall haves discretion, subject to any guidelines as prescribed by the Board, in the investment of all Fund assets. 18 0 DB P1~4N RESTATEMENT-November 20, 2003; Amended October 1, ;?005 Exhibit B Actuarial Equivalent (D) All funds of the Plan may be commingled without. limitation in governmental investment trusts, no-load investment funds or no-load mutual funds, and all such trusts orfunds must comply with the Investment Policy as attached as Exhibit A. Accurate records are to be maintained at all times reflecting the financial composition of the Fund, including accurate current accounts and entries as regards the following: (1) Current amounts of Accumulated Contributions of Participants on both an individual and aggregate account basis, and (2) receipts and disbursements, and (3) benefit payments. and (4) current amounts cle~~rly reflecting all monies, funds and assets whatsoever attributable to contributions and deposits from the Employer, and (5) all 'interest, dividends and gains (or losses), and - (6) such other entries as may be properly required so as to reflect a clear and completE~ financial report of the Fund. (E)' An independent audit shall be performed annually by a certified public accountant for the most .recent fisp.,al year of the Employer showing a listing of assets and a statement of all income and disbursements during the year. Such income and disbursements must be reconciled with the assets at the beginning and end of the year. Such report shall reflect a complete evaluation of assets on a cost and market basis, as well as other items normally included in a certified audit. (F) The Board of Trustees shall have the following investment powers and authority: (1) The Board of Trustees shall be vested with full legal title to said Fund, subject, however, and in any event to the authority and power of the governing body of I`he Employer to amend or terminate this Plan, provided that no amendment or termination shall ever result in 19 DB PLAN RESTATEMENT'-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent the use of any assets of the Fund except for the payment of regular expenses and benefits under this Plan, and except as otherwise provided in this Plan. All contributions deposited into the Fund, and the income thereof, without distinction between principal and income, shall be held and administered by the Board, or its agent, in the Fund, and the Board shall not be required to segregate or invest separately any porfion of the Fund. (2) All monies paid into or held in the Fund shall be invested and reinvested by the Board. 'The Fund shall be invested in accordance with an established investment policy adopted by the Board. The adopted investment policy will be made part of this document and shall be attached as Exhibit A. (3) The Board may cause any investment in securities held by it to be registered in or transferred into its name as Trustee or into the name of such nominee ass it may direct, or it may retain them ~ unregistered and in a form permitting transferability, but the books and records shall at all times show that all investments are part of the Trust Fund. (4) The Board is empovvered, but is not required, to vote upon any stocks, bonds, or securities of any corporation; association, or trust and to' give general or spE~cific proxies or powers of attorney with or without power of substitution to participate in mergers, reorganizations, recapitalization, consolidations and similar transactions with respect to such securities; to deposit such stock or other securities in any eating trust or any protective or like committee -with the Trustee or with dE~positories designated thereby; to amortize or fail to amortize any part or all of the premium or discount resulting from fhe acquisition or disposition of assets; and generally to exercise any of the powers of an owner with respect to stocks, bonds„ or other investments comprising thE: Fund which it may deem to be in the best interest of the Fund to exercise. 20 DB PLAN RESTATEMENT-November 20. 2003; Amended October 1, 20D5 FJChibit B Actuarial Equivalent (5) Any overpayments or underpayments from the Fund to a Participant or beneficiary raused by errors of computation shall be adjusted with interest at a rate per annum as utilized in the prior years' actuarial valuation. Overpayments shall be charged against payments next succeeding the correction. Underpayments shall be made up from the Trust Fund. (6) In any application tct or proceeding or action in the courts. the Board and Employer shall be a necessary party, and no Participant or other person having an in'i:erest in the Fund shall be entitled to any notice or service of Prot<ess. Any judgment entered in such a proceeding or action shall be conclusive upon all persons. (7) Any powers and functions of the Board may be performed or carried out by the Board through duly authorized agents, ,provided that the Board at all times maintains continuous supervision over the acts of any such agent; provided further. that legal title to the Fund always remain with the Board. 21 DB PLAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 ExhibiY6 Actuarial Equivalent ARTICLE 5 CONTRIBUTIONS 5.01 Participartt Contributions (A) Amount Participants in the Flan shall be required to make contributions to the Fund in the amount specified in the Adoption Agreement -Section K, Emgloyee Contributions. {B) Method Participant contributions shall be made by payroll deduction.. Participant contributions withheld by the Employer on behalf of the Participant shall be depositE:d in the Fund immediately after each pay period. (C) Pre-Tax Employee Contributions If pre-tax Employee Contributions are applicable, this provision will be noted within the Adoption Agreement -Section K as pre-tax contributions pursuant to :3ection 414(h) of the Code, otherwise the Plan will assume after tax contributions. Such designation is contingent upon the contribution being excluded from the Ernployees' gross income for federal income tax purposes. For all other purposes of the Plan, such contributions shall be considered Employee contributions. 5.02 State_Contributions Any monies received or receivable by reason of laws of the State of Florida, for the express purpose of funding the Plan shall be deposited in the Trust Fund comprising part of this Plan immediately. Contributions must be deposited within five (5) days after receipt by the Employer. 5.03 Employerr Contributions So long as this Plan is in effect, the Employer ~~hall deposit quarterly contributions for each Plan Year to the 'Trust Fund in an amount equ~31 to the amount determined by the Actuary, taking into account Participant contributions, st~~te contributions for such year, and the total cost for the Plan Year, as represented in the imost recent actuarial valuation of the Plan. The total cost for each Plan Year shall be defined as the total normal cost plus the 22 OB PLAN RESTATEMENT-November 20, 2003; Amended October 'I. 2005 Exhibit B Actuarial Equlvafent . additional amount. sufficient to amortize the unfunded past service liability as provided in Part VI I of Chapter 112, Florida Statutes. 5.04 Other Private donations, gifts and contributions may be deposited to the Fund. ~ 3 DB,PL4N RESTATEF9IEIJT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent AR~'ICLE 6 BENEFIT AMOUNTS A,ND ELIGIBILITY 6.01 Normal Retirement Date A Participant's Normal Retirement Date shall be as specified in the Adoption Agreement - Section G1, Normal Retirement Date. A Participant may retire on his Normal Retirement Date or on the first day of any month thereaftE:r. Normal Retirement under the Plan is retirement from errlployment with the Employer on or after the Normal Retirement Date and completion of the required years of credited service. 6.02 Normal Retirement Benefit A Participant retiring hereunder on or after his Normal Retirement Date shall receive a monthly benefit as specified in the Adoption Agreement -Section G2, Normal Retirement Benefit, which shall commence on the first day of the month coincident vrith or next following his termination of employment. In the event that a Participant does not begin to receive his Benefit at his Normal Retirement Date, such Participant shall be entitled to a deferred benefit • equal to the benefit he was entitled to receive at his Normal Retirement Date, adjusted to take into account his Average Final Compensation and years of Credited SE;rvice as of his actual retirement date. (2) The monthly .Normal Retirement: Benefit of a Volunteer Firefighter w.ho changes status from a Volunteer Firefighter to a full-time Firefighter shall be as provided bE:low. (A) The amount of monthly retirement incorr~e payable to a full-time Firefighter vvha retires on or after his or her Normal Retirement Date shall be an amount equal to the number of his or hE~r years of Credited Service as a full-time Firefighter multiplied by the Normal Retirement Benefit multiplier specified in Section G2 of the Adoption Agreement multiplied by his or her Average Final Compensation ~ as a full-time Firefighter. 24 DB PlAN RESTATEMENT-November 20,.2003; Amended October 1,.2005 Exhibit B Actuarial Equivalznt (B) The amount of monthly ri~tirement income payable to a Volunteer Firefighter who retires on or after his or her Normal Retirement Date shall be an amount equal to the number of his or her years of Credited Service as a Volunteer Firefighter multiplied by fhe Normal Retirt:~ment Benefit multiplier specified in Section G2 of the.. P,doption Agreement multiplied by his or her Average Final Compensation as a VolunteerFirefighter_ {C) The sum of the Firefighter`s monthly retirement income as determined under (A} and (B) shall be the Firefighter's Normal Retirement Benefit. 6.03 Normal Form of Benefit The normal form of benefit shall be a single rnonthly retirement. benefit for life, ceasing upon death, but with one hundred twenty (1 ~ 0} monthly payments guaranteed in any event. 6.04 Cost of Living Adjustments to Benefit Payments A cost-of-living increase, if applicable, shall be as specified in the Adoption Agreement, Section L -COLA Adjustments. 6.05 Early Retirement Date A Participant may retire on the Early Retirement Date as specified in the Adoption Agreement -Section G3, Early Retirement Date. Early retirement under the Plan is termination from employment with the Employer on or after the Early Retirement Date and prior to the Normal Retirement Date and the victual completion of the required years of credited service. 6.06 Early Retirement Benefit 25 DS PLAN RESTAT.EMENI--November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent . A Participant retiring hereunder on or after his Early Retirement Date may receive either a deferred or an immediate monthly retirement bf:nefit payable for life and ten years certain as follows: (A) A deferred monthly retirement benefit which shall commence on what would have been his Normal Retirement Date I~ad he remained a Participant, determined based upon his actual years of Credited Service. The amount of such deferred monthly reairement benefit shall be determined in the same manner as for retirement at his Normal Retirement D2~te, as determined based upon his actual years of (~redited Service, except thi3t Credited Service and Average Final Compensation shall be determined as of his Early Retirement Date; or (B) An immediate monthly retirement benefit which shall commence on his Early Retirement Date. The amount of the Early Retirement E3enefit shall be determined in the same manner as for Retirement at his Normal Retirement Date, except the benefit shall be actuarially reduced to take into account the Participant's younger age and the earlier commencement of retirement income payments as specified in Section G4 of the Adoption Agreement for each year before the Normal Retirement Date that benefit payment commenced. 6.07 DEFERRED RETIREMENT OPTION PROGRAM or "DROP" A Deferred Retirement Option Program or "DROP", if applicable, shall be as specified in the Adoption Agreement, Section M - DEFERl~ED RETIREMENT OPTION PROGRAM, "DROP". 26 DB PLAN RESTATEFhENI'-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivzlent A~T'ICL_E 7 PRE-RETIREMENT DEATH 7.01 Death Prior to Vestinq. - In-Line-Of-Duty Prior to retirement, if the Participant dies in-line-of-duty„ and he is not vE~sted, his beneficiary shall receive benefits as specified in the Adoption Agreement -Section 11, Death Prior to Vestinq - In-Line-Of- Duty. 7.02 Death After Vestinq - In-Line-Of-Duty Prior to retirement, if a vested Participant dies in-line-of--duty, having completed the required years of Credited Service, his beneficiary shall receive benefits as specified in the .Adoption Agreement -Section 12, Death After Vestinq - In-Line-Of-Duty. r 7.03 Death Prior to Vesting -Off-Duty The: beneficiary of a deceased Participant who was not vested and who dies prior to retirement from causes other than in-line-of--duty shall . receive a .refund of one hundred percent (100%) of the Participants' Accumulated Contributions as specified ~ in the Adoption Agreement Section 13, Death Prior to Vestinq- Off Duty• 7.04 Death After Vestinq -Off-Duty If a vested Participant dies prior to retirement from causes other than-in-line-of--duty; having completed the required years of Credited Service, his beneficiary shall receive. the benefit atherwi~~e payable to the Participant at the Early or Normal Retirement Date as specified in the Adoption Agreement Section 14, Death After Vesting -Off-Duty, 7.05 .Beneficiaries Receipt of Payment A Beneficiary may not elect an optional form of benefit, however, the Board may elect to make a lump sum payment pursuant to Article 10(F) to a beneficiary of the death benefits payable hereunder. 27 DB PLAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit 8 Actuarial Equivalent ARTICLE 8 DISABtL,ITY 8.09 Disability Benefits In-Line-Of-Duty (A) Benefits Each Participant who shall become Totally .and Permanently Disabled while an active Participant. of the Employer to the extent that he is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a Firefighter, Police Officer or Public Safety Officer, respectively, which disability was directly caused by the performance of his duty as a Firefighter, Police Officer or Public Safety Officer, respectively, shall. upon establishing the same to the satisfaction of the Board, be entitled to a monthly pension which is as defined in the Adoption Agreement -Section H1, Disabili Benefits In--The-Line-of Duty. ~ (B) Pre:sumptionAny condition or impairment of the health of a Firefighter, Police Officer or Public Safety Officer caused by tuberculosis, hypertension or heart disease, or hardening of the arteries for a Police Officer or a Public Safety Officer, shall be presumed to have been suffered in line-of-duty unless the contrary is shown by competent evidence, provided that such Firefighter, Police Officer or Public Safety Officer, shall have successfully passed a physical examination upon entering into employment with the Employer, which may include a cardiogram, which failed to reveal any evidence of such condition; and provided further, that such presumption shall not apply to benefits payable or granted in a policy of life insurance or disability insurance. (C) Additional Presumption Section 112,181, Fla. Stat., as amended from time to time, is hereby adopted and incorporated by reference and is applicable to those conditions described therein that are diagnosed on or after January 1, 199.6. 28 DB PLAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent 8.02 Disability Benefits Off-Duty Every Firefighter, Police Officer or Public Ss~fety Officer as defined in the Adoption Agreement -Section B, Plan who shall have become Totally and Permanently Disabled to the extent that lies is unable, by reason of a rnedically determinable physical or mental impairment, to render useful and efficient service as a Firefighter, Police Officer or Public Safety Officer, respectively, as defined in Article 1, and which disability is not directly caused by the performance of his duties as a Firefighter, Police Officer or Public Safety Officer, respectively, shall, upon establishing th~~ same to the satisfaction of the Board of Trustees, be entil:led to a disability benefit as provided in the Adoption Agreement - Section H2, Disability Benefits. Off-Duty. A disabled ParticiF>ant that does not meet the credited years of service requirements in the Adoption Agreement -Section H2, Disabilit~Be~nefits Off-Duty, will receive a return of his Accumulated Conl~ributions without interest. ~ 8.03 Conditions Disqualifying Disability Bernefits Each Participant who is claiming disability bene•Fits shall establish, to the satisfaction of the Board, that such disability was not occasioned primarily by: (A) Excessive or habitual use of any drugs, intoxicants or narcotics. • (B) Injury or disease sustained while willfully and illegally participating in fights, riots or civil insurrections, or while committing a crime. (C) Injuiry or disease sustained while Nerving in any branch of the Armed Forces. (D) Injury or disease sustained after his employment as a Participant with the Employer had terminated. (E) For Police Officers and Public Safety Officers only: injury or disease sustained by the Participant while working for anyone other than the Employer and arising out of such employment. 8.04 Physical Examination Requirement 29 DB PL?;N RESTATEMENT-November 20, 2003: Amended October 1, 2005 Exhibit 8 Actuarial Equivalent A Participant shall not become eligible; for disability benefits until and unless he undergoes physical examination by qualified physician or physicians and/or surgeons or surgeons, who shall be selected by the Board for that purpose. Any Participant receiving disability benefits under this Plan may be periodically re-examined by a qualified physician or physicians and/or surgeon or surgeons who shall be selected by the Board., to determine if such disability has ceased to exist. If the Boarci finds that the former Participant is no longer Permanently and Totally Disabled to the extent that he is able to render useful and efficient service as a Firefighter, Police Officer or Public Safety Officer, respectively, the Board shall recommend to the Employer that the former Participant be returned to performance of duty as a Firefighter, Police Officer or Public Safety Officer, respectively, and shall again become eligible to Participate in the Plan. In the event the former Participant so ordered to return to employment shall refuse to comply with the order within thirty (30) days from the issuance; thereof, the Participant shall forfeit the right to his benefits hereunder. The cost of the physical examination and/or re-examination of the Participant claiming and or receiving disability benefits shall be paid by the Plan. All other reasonable costs as determined by the: Board incident to the physical examination, such as, but not limited to, transportation, meals and hotel accommodations, shall be paid b'y the Plan. If a Participant recovers from disability and reenters the service of the Employer as a Participant, his service will be deemed to have been continuous, but the period ' beginning with the first month for which he received a disability retirement income payment and ending with the date he r~~entered the service of the Employer will not be considered as Credited Service for the purposes of the Plan. The Board shall have the power and authority to rnai;e the final decision regarding all disability claims: ~ ' 30 DB PLAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent 8.05 Disabili ~ Payments The monthly benefit to which a Participant. is entitled in the event of the Participant's disability shall be payable on the fir:~t day of the first month after the Board determines such entitlement. Providzd, however, the Participant may select: at any time prior to the date on which benefit payments begin. an optional form of benefit payment as described in Article 10, O~~tional Forms of Benefits, which shall be the Actuarial Equivalent of the normal form of benefit. The amount of the first disability payment shall include an amount payable from the date the Board determined such entitlement. Disability benefits shall cerise: (A) If the Participant recovE~rs from the disability prior to his Normal Retirement Date, the payment due next proceeding the date of such recovery, or (B) If the Participant dies without recovering from disability or attairis Normal Retirement Date, the later of the payment due next proceeding his death, or the 120' monthly payment. 8.06 Disabili r Payments 8~ Workers Compensation If a Participant receives a disabili~iy benefit under the Plan and workers compensation benefits pursuant to Chapter 440, FI. Stat., for the same disability and the total monthly benefits received from both exceed one hundred percent (100%) of the Participants' average monthly wage determined in accordance with Chapter 440., FI. S;tat., the disability pension benefit shall be reduced so that the total monthly amount received by the Participant does not exceed one hundred percent (100%) of such average monthly wage. In no Event shall a Participant`s disability pension benefit bE: reduced to less than 42% of Average Final Compensation for in-line-of duty disability and 25% of Average Final Compensation for off-duty disabi{ity. In the event of a lump sum workers compensation settlement, the disability retirement income payable from the Plan shall be adjusted as follows: 31. D8 PLAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent (~c) The amount of the lump sum settlement shall be divided by the Participant's remaining life expectancy (in months) as determined using the actuarial assumptions represented in the last rompieted valuation of the. Plan. (E3) If the number obtained in paragraph (A) above, when added to the Participant's monthly disability rE~tirement income from the Plan, exceeds the Participant's final monthly compensation on the date of disability, the amount of the excess shall be deducted from the Participant's monthly disability retirement income from the. pen:pion plan, for the duration of the Participant's remaining life expectancy as determined in paragraph (A) above. (C:J If the number obtained in paragraph (A) above, when added to the Participant's monthly disability retirement income from the Plan, does not e:KCeed the Participant's final monthly compensation on the date of disability. there shall be no reduction of thE: Participant's disability benefit from the plan. . 3'.? DB PLAN RESTATEMENT-November 20, 2003: Amended October 1, 2005 Exhibit B Actuarial Equivalent Plan, his Credited Service for purposes of vesting and benefit accruals shall not include any periods of employment prior to his reemployment date unless he repays to the Fund his Accumulated Contribu~~ions previously withdrawn with interest,. as determined by the Board, within ninety (90) days after reemployment. If a Participant repays the foregoing amor_mt to the Fund within the prescribed time period, the interest of the Participant in his Accrued Benefit previously forfeited shall be restored in full and the Participant's Credited Service shall be based vn all periods of employment. 34 DB PLAN RESTATEMENT-November 20.2003; Amended October 1, 2005 Eixhibit B Actuaria6 Equivalent AR~'ICLE 10 OPTIONAL FORMS OF BENEFITS (A) In lieu of i:he normal form of benefit a:~ specified herein, a Participant's Early or Normal Retirement or Disability Benefit may be paid in an optional form as selected by the Participant. Subject to the approval of the Board or its designee, the Participant may elect to receive the .Actuarial Equivalent of the benefit otherwise payable to the. Participant in .accordance with one of the following options: 1. Monthly income payments for the life of the Participant. 2. Monthly income payment for the life of the Participant and after .his death, a joint pensioner benefit payable for the life of the joint pensioner equal to, 100%, ~ 75%, 66 2~3%, or 50% of the amount payable to the Participant. 3. Such other amount and form of retirement benefit payment that, in the opinion of the Board, will meet the citcumstances of the Participant and the Trust. (B)The Participant, upon electing any optiori pursuant to this Article, will designate the joint pensioner or beneficiary (or beneficiaries) to receive the benefit, if any, payable under the Plain in the event of Participant's; death, and will have the power to change such designation from time to time. Sueh designation will name a joint pensioner or one or more primary beneficiaries where applicable. A Participant may change his Beneficiary at: any time. If a ,Participant has elected an option with a joint pensioner and the Participant's retirement benefits have commenced, the Participant may thereafter change his dESignated Beneficiary at any time., but may only change his joint pensioner twice. Subject to this restriction, a Participant may substitute a new joint pensioner for a deceased joint pensioner. (C) Upon change of a Participant's joint pensioner in accordance with this Article, the amount of the retirement income payable 'to the Participant shall be actuarially re- 35 DB PLAN RESTATEMENT-November 20, 2003; Amended October t, 2005 Exhibit B Actuarial Equivalent determined to take into account the age of the former joint pensioner, the new joint pensioner and the Participan# and to ensure that the benefit paid is the Actuarial Equivalent of the present value of the Participant's then-~~urrent benefit at the time of change. Any such Participant shall pay the actuarial recalculation expenses. Each request for a change will be made in writing on a form prepared by tF~e Board and on completion will be filed with the Board. In the event that no designated Beneficiary survives the Participant, such benefits as are payable in the event of tha death of the Participant subsequent to his retirement shall be paid as provided in Section 11, Beneficiaries. (D) Benefit payments shall be made under the option elected in accordance with the provisions of this Article and shall be subject to the following limitations: 1. If a Participant dies prior to his f\lormal Retirement Date or Early Retirement Date, the beneficiary will receive a benE~fit paid under the normal form of benefit in accordance with Article 7, Pre-Retirement Death. 2.. If both the retired Participant and the beneficiary (or beneficiaries) designated by Participant die before full payment has been effected under any option providing for payments for a period certain and life thereafter, the value of the remaining payments shall be paid in such other amount and form of retirement benefit payment that, in the opinion of the Board, will meet the circumstances of the retiree and the Trust in accordance Article 11. 3. If the designated Beneficiary (or Beneficiaries) or joint pensioner dies before the Participant's retirement under the Plan, the option elected will be canceled automatically and a retirement. incomE: of the normal form and amount vvill be payable to the Participant upon his retirement as if the election had not been made, unless a new election is made in accordance with provisions of this Article or a new Beneficiary is designated by the Participant prior to his retirement. 4. If a Participant continues emplo7iment beyond his Normal Retirement Date pursuant to the provisions of the Normal Retirement Date provided in the Adoption Agreement, and dies prior to his actual retirement and while an option made pursuant to the provisions of the Adoption Agreement is in effect. monthly retirement 36 DB PLAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent ARTICLE 9 VESTING If a Participant terminates his employment ~nrith the Employer for reasons other than retirement, disability or death, the Participant sftall be entitled to the following: (A) If the Participant has less than the number of years of Credited Service specified in the Adoption Agreement.-Section J1, Termination of Employment and Vesting. the Participant shall be entitled to a refund of his Accumulated Contributions without interest. (B) If i:he Participant has the required number of years of Credited Service specified in the Adoption Agreement -Section J2, Termination of Employment and Vesting, the Participant shall be entitled to a retirement benefit that is the Actuarial Equivalent of the Accrued Benefit othE:rwise payable to him commencing at the Participant's otherwise Normal or Early Retirement Date, and determined based on actual years of Credited Service, provided he does not elect to withdraw his Accumulated Contributions and provided the Participant survives to his Normal or Early Retirement Date. (C) Any vested Participant of the Pl~~n who is no longer eligible to participate in this Plan due to a change of employment, but who remains employed by the Employer in a class not eligible to participate under this Plan, shall have his Accrued Benefit to the date of such termination under this Plan preserved, provided he does .not elect i:o withdraw his Accumulated Contributions from this Plan. Such Accrued Benefit shall be payable at his othE~rwise Early or Normal Retirement Date hereunder in accordance with the provisions of this Plan. (D) If a Participant who terminates employment prior to his Early Retirement Date or his Normal Retirement Da1:e and elects to withdraw Accumlalated Contributions, is subsequently reemployed and again becomes a Participant in this 33 OB PLAN RESTATEMENT-November20, 2003; Amended October 'd, 2005 Exhibit. B Actuarial Equivalent income payments will be made, or a retirement benefit will be paid, under the option to a Beneficiary (or Beneficiaries) desi~~nated by the Participant in the amount or amounts computed as if the Participant had retired under the option on the date on which his death occurred. (E) Unless otherwise allowed by law, a Participant may not change his benefit payment option after the date of cashing or depositing hi;~ first benefit check. (F) Notwithstanding anything herein to fhe contrary, the Board in its discretion, may elect to make a lump sum payment to a Participant or a Participant's Beneficiary in the event that the monthly benefit amount is less than one hundred dollars (5100), or the total commuted value: of the remaining' monthly income payments to be paid does not exceed five thousand dollars (55,000). Any such payment made to any person pursuant to the power and discretion conferred upon the Board by the preceding sentence shall operate as a complete discharge of all obligations under the Plan with regard to such Participant and shall not be subject to review by anyone, but shall be final, bihding and conclusive on all persons. 37 DB PL,9N RESTATEMENT-November 20, 2003; Amended October 1,-2005 Exhibit B Actuarial Equivalent ARTICILE 11 BENEFICIARIES (A) Each Participant may, on a form provided far that purpose, signed and filed with the Board, designate a beneficiary (or beneficiaries) to receive the benefit, if any, which may be payable in the event of his death and each designation may be revoked by such Participant by signing and filing with the Board a new de~;ignation-of-beneficiary form. The consent of a Participant's beneficiary to any change of beneficiary shall not be required. (B) If a deceased Participant fails to namf; a beneficiary in the manner prescribed in Section A, or if the beneficiary (or beneficiaries} named by a deceased Participant predeceases the Participant, the death benefit, if any, which may be payable under the Plan with respect to such deceased Participant shall be paid by the Board to the estate of the Participant, and the Board., in its discretion, may direct that the commuted value of the remaining value of the remaining monthly incorrie benefits be paid in a lump sum. Any payment trade to any person pursuant i:o this Section shall operate as a complete discharge of all obligations under the Plan with regard to the deceased Participant and any other persons with rights under the Plan and shall not be subject to review by anyone but shall be final, binding, and conclusive on all persons ever interested hereunder. 38 DB PLAN RESTATEMENT-November 20. 2003; Amended October d. 2005 Exhibit B Actuarial Equivalent ARTICI! E 12 CLAIMS PROCEDURES The Board shall establish administrative claims procedures to be utilized in processing written requests ("claims"), on matters which affect the substantial rights of any person ("claimants), including Participants, retirees, Beneficiaries, or any person affected by a decision of the Board. ARTICILE 13 REPORTS TO DIVISION OF RETIREMENT Each year by no later than March 15th, the Board shall file an Annual Report with the State of Florida, Division of Retirement, and the Employer containing the documents and .information contained in Sections 175.261 and 185.221, Florida Statutes. AF~TICILE 14 ROSTER OF RETIREES The Secretary of the Board shall keep a recorl~ of all persons receiving a benefit or vested Participants wh6 will receive a future vested benefit under the provisions of this Plan in which it shall be noted the time when the .benefit became payable. Additionally, the Secretary shall keep a record of all ParticiP;~nts employed by the Employer in such a manner as to show the name, address, date of employment and date such employment is terminated. 39 DB PLAN RESTATEMENT-November 20, 2D03; Amended October 1, 2005 Exhibit B Actuarial Equivalent ARTICLE 15 BOARD ATTORNEY AND PROFESSIONALS The Board may employ independent legal counsel at the Fund's expense for the purposes contained herein, together with such other professional, technical, or other advisors as the • Board deems necessary. 40 DB PLAN RESTATEMENT-November 20, 2003: Amended October r, 2005 Exhibit B Actuarial Equivalent ART1C1_E 16 .MAXIMUM hENSION 16.01 Basic Limitations Subject to the adjustments hereinafter set forth, the maximum amount of annual retirement income payable ~Nith respect to a Participant under this Plan - shall not exceed the dollar amount as may be allowable for any calendar year pursuant to §415(b) of the Code 16.02 Partici a~tion in Other Defined Benefii`. Plans The limitation of this Article with respect to any Participant who at any time has been a Participant in any other defined benE:fit plan (as defined in §414(j) of the Code) maintained by the Employer shall appfy as if the total benefits payable under all defined benefit plans in which the Participant has been a Participant were payable from one Plan. 16.03 Adjustments in Limitations (A) In the went the Participant's- retirement. benefits become payable before age sixty-two (62), the maximum amount of annual retirement income limitation prescribed by this Article shall be reduced in accordance with Regulations issued by the Secretary of the Treasury, so that such limitation (as so reduced) equals an annual benefit (beginning when such retirement income benefit begins) which is equivalent to the maximum amount of annual retirement income as prescribed by this Article beginning at age 62. (B) In the event the Participant's benefit is based on at least fifteen (15) years of Credited Service, the adjustments provided for in A. above shall not apply. (C) The reductions provided for in A. above shall not be applicable to disability benefits, orpre-retirement death benefits. 41 DB PLAN RESTATEMEIVT-November 20, 2003; Amended October 1, 2005 Exhlbil B Actuarial Equivalent (D) In the event the Participant's retirernen benefit becomes payable after age sixty- five (65), for purposes of determining whether this benefit meets the limitation set forth in Section 16.01 herein., such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age sixty-five (65). This adjustment shall be made using an assumed interest rate of five percent (5%) and shall be made in accordance with regulations promulgated by the Secretary of the Treasury or his delegate. (E) Less than 'ten (10) Years of Service. The maximum retirement benefits payable under this Article to any Participant who has completed less than ten (10) years of Credited Service with the Employer shall be the amount determined under Section 16.01 herein, multiplied by a fraction, the numerator of which is the number of the Participant's years of Credited Service and the denominator of which is ten (10). The reduction provided for in this subsection shall not be applicable to disability benefits orpre-retirement death benefits. (E) Ten Thousand Dollar $10,000 Limit. Notwithstanding the foregoing, the retirement benefit payable with respect to a Participant shall be deemed not to exceed the limitations set forth in this Article if the benefits payable, with respect to such Participant under this Plan and under all other qualified defined benefit pension plans 'to which the Employer contributes, do not exceed ten thousand dollars ($10,000) for the applicable Plan Year and for any prior Plan Year and the Employer has not alt any time maintained a qualified defined contribution plan in which the Participant participated. (G) Reduction of benefits. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the Participant's benefit under any defined benefit plans in which Participant participated, such reduction to be made first with respect to the plan in which Participant most recently accrued benefits and thereafter in such priority as shall be determined by the Board and the plan 42 DB PLAN RESTATEMENT-November 20, 2003;.Amended October 1, 2005 Exhibit B Actuarial Equ(valent administrator of such other plans, ancj next, by reducing or allocating excess forfeitures for defined contribution plans in which the Participant participated. such reduction to be made first with re:;pect to the plan in which Participant most recently accrued benefits and thereafter in such priority as shall be established by the Board and the plan administrator for such other plans provided, however, that nece:>sary reductions may be made in a different manner and priority pursuant to the agreement of the Board and the plan administrator of all other plans covering such Participant. (H) Cost-of-Living Adjustments. The limitations as stated herein shall be adjusted to the time the payment of a benefit begins, in accordance with any cost-of-living adjustments prescribed by the Secretary of the Treasury pursuant to §415(d) of the Code. (I) Additional Limitation on Pension Benefits. Notwithstanding anything herein to the contrary: (T) the normal retirement benefit or pension payable to a Retiree who becomes a Participant of the Plan on or after January 1, 1980, and who has not previously participated in such Plan, shall not exceed 100 percent of his Average Pinal Compensation. However, nothing contained in this Article shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-living increases or adjustments. (Z) no Participant of the Plart shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with. respect to which the Participant is already receiving, or will receive in the future, a rei:irement benefit or pension from a different employer's retirement Plan. This restriction does not apply to social security benefits or federal benefits as provided under federal law. ~3 DB PLAN RESTATEMENT-November 20,.2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent 16.04 Benefit Restoration Plan S~ Trust (A) An Employer may fund a Benefit Restoration Plan as permitted under Code Section 415(m) as specified in this Section (B) Definitions {1) "Information SheeY': is the document executed by the Employer providing specific information as to that EmF~loyer. (2) "Participant": means an employee of thE; Employer who is eligible to receive benefits underthis Benefit Restoration Ptan, under (C). (3) "Pensioner": means a former employees of the Employer who is retired and receiving retirement benefits. ~ (4) "Benefit.Restoration Plan_': means the provisions of s~sction 16.04, which is hereby established for the payment of retirement benefits supplementing the Plan benefits as permitted under Code Section 415(m). (5) "Benefit Restoration Plan Year": means the limitation year of the Plan under Code Section 415. "Plan"• means the plan identified in the Adoption. Agreement which is a Florida Municipal Pension Trust Fund Defined Benefit Plan maintained by a participating employer, and with respect to which this Benefit Restoration Plan will provide supplemental benefits. (7) "Trust": means the trust fund estaf~lished in subsection (E) (2) of this Benefit Restoration Plan, which shall constitute a separate trust fund from the trust fund maintained under the Plan. (t3) ``Board": means the Board of Trustees of the Plan, serving in the separate capacity as trustees, of this Benefit Restoration Plan. 44 DB PLAN`RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent (C) PARTICIF'ATLON (1) All Participants, Pensioners and Beneficiaries of the Plan whose retirement or survivor benefits from that Plan for a Plan Year have been limited by Code Section 415 are eligible to participate in this Benefit Restoration Plan, unless excluded by category under the terms of the Information ~3heet. (2) Participation in the Benefit Restoration Plan is automatic. Any Participant, Pensioner or Beneficiary who is eligible for benefits is entitled to such benefits vuithout the necessity of enrollment. Participation in the Benefit Restoration Plan will cease for any Plan Year in which the retirement benefit of a Pensioner or Beneficiary is not limited by Code Section 415. (D) BENEFITS (1) Benefit Amount A covered Pensioner or 3eneficiary shall receive a monthly benefit equal to the difference bt:;tween the participant's monthly retirement benefit otherwise payable from the Plan prior to any reduction or limitation because of Code Section 415 and the actual monthly retirement benefit payable from the Plan as limited by Code Section 415. The monthly benefit shall be subject to withholding far any applicable income or employment taxes. (2) Payment of Benefit Benefits under the Benefit Restoration Plan shall be paid only if the Pensioner or Beneficiary is receiving retirement benefits from the Plan. (3) Form of Benefit , The form of the benefit paid to a Pensioner or Beneficiary from the Benefit Restoration Plan shall be the same payable under the Plan. (E) CONTRLE3UTIONS AND FUNDING (1) Contributions (a) The Board, upon thE: recommendation of the actuary, shall determine the required contributions to pay plan benefits in accordance with (3} below. The required contribution for each DB PLAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent Plan Year shall be tl-te total amount of benefits payable under (D) to all Pensioners and Beneficiaries, plus such amount as determined by the Board to pay the administrative expenses of the Benefit .Restoration Plan and the Employer's share of any employment taxes on the benefits paid from the Plan. (b) The required contribution as determined by the Board, upon the recommendation of the actuary, shall be paid into the Trust from an allocation oi` the Employer contribution amounts paid under the Plan. (2) Benefit Restoration Plan Trust Fund Contributions to the BenE~fit Restoration Plan shall be deposited in the separate Trust established and administered by the Board. This Trust is intended to be exempt from federal income tax under Code Sections 115 and 415(m)(1). The Trust assets shall be subject to the claims of general creditors of the Employer in the case of bankruptcy. (3) Funding Assets The benefit liabilities of trte Benefit Restoration Plan shall be funded on an as-needed basis. The Trust established under (2) above shall not be accumulated to pay benefits payable in future years. Accordingly, any assets of the Trust shall be invested by the Board in short-term investments as the Board may determine to assure preservation of principal rather than the generation of income. (4) Non-assignability of Benefits The benefits payable under this Benefit Restoration Plan may not be assigned or alienated, except as otherwise permitted for benefits payable by the Plan, (5) Amendment and Termination The Employer reserves the right to amend this Benefit Restoration Plan at any time. No rnodification or amendment of the Benefit Restoration Plan shall m~~ke it possible for any part of the income or assets of the fund to be used for, or diverted to, purposes other than for the exclusive benefit of the Participants, Pensioners and Beneficiaries, except as :yet forth in section (2) above. The Employer reserves the right to discontinue or terminate this Benefit Restoration Pfan in whole or in part. Upon a termination of the Benefit Restoration Plan, the Board shall take such steps as the Board determines to be: necessary or desirable to comply with applicable laws and to a~~ply any remaining assets. 46 DB PLAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit 8 Actuarial Equivalent If, after satisfaction of all liabilities, there .is any balance remaining in the fund, such balance shall be refunded to the Employer if not otherwise prohibited by law. (F) ADMINISTRATION (1) Benefit Restoration Plan Administration The Benefit Restoration Plan shall be administered by the Board. The Board shall have thE~ same. authority to administer the Benefit Restoration Plan as exists for the Plan. The Board may delegate any or all of the Board's administrative authority. (2) Compliance Authority The Board may make modifications to the benefits payable under the Benefit Restoration Plan as may be necessary to maintain its qualified status under Code Section 415(m). No Liability for Benefits Since this BenBfit Restoration Plan is not intended to accumulate funds, the Benefit Restoration Plan .shall not be liable for the payment of any benefits except to the extent of funds actually received from the Emi~loyer and not previously distributed or applied to pay Benefit Restoration Plan expenses. {4) This Benefit Restoration Flan shall be construed, administered and governed in all respects by the laws of the~State of Florida. (G) EFFECTIVE DATES The Board shall pay benefits under thE~ Benefit Restoration Plan beginning on or after the date specified on the Informa~lion Sheet. 47 DB PLAN RESTATEMENT-November 20, 2063; Amended October 1, 2005 Exhibit B Actuarial Equivalent ARTICLE '17 DISTRIBUTION C?F BENEFITS Notwithstanding any other provision of this Flan to the contrary, a form, of retirement income payable from this Plan shall satisfy the fi~llowing conditions: (A) If the retirement income is payablE~ before the Participant's death, (1) It shall either be distributed or commence to the Participant not later than April 1 of the calendar year following the later of the calendar year in which the Participant attains age seventy and one-half (70'/z), or the calendar year in which the Participant retires; and, (2) the benefit shall be paid rover the life of the Participant or over the lifetimes of the Participant and designated beneficiary and shall be paid over ~.a,, the period extending not beyond the life expectancy of the Participant and designated beneficiary Where benefit payments have commenced in accordance with the preceding paragraph: and the Participant dies bef~~re his entire interest in the Plan has been distributed„ the remaining portion of such interest in the Plan shall be distributed no less rapidly than under the form. of distribution in effect at the time of the Participant's death. (B) If the Participant's death occurs ioefore the distribution of his interest in the Plan has commenced.., the Participant's elntire interest in the Plan shall be distributed within five (5) years of the Participant's death, unless it is to be distributed in accordana~ with the following rules: (1) The Participant's remaining interest in the Plan is payable to his designated beneficiary. 48 DB PlAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent (2) The remaining interest is to be distributed over the life of the designated beneficiary over a period not extending beyond the life expf~ctancy of the designated ben~~ficiary; and (3) Such distribution begins within one year of the Participant's death . unless the Participant's spouse shall receive the remaining interest in which casES the distribution need not begin before the date on which the Participant would have attained age seventy and ane-half (70'/x), and if the spouse dies before the distribution begins, this Article shall be applied as if the spouse were the Plan Participant. (C) Direct Transfers of Eligible Rollover Distributions (1) This paragraph applies to distributions made on or after January 1. 1993. Notwithstanding any provisions of the P1~3n to the contrary that would otherwise limit a distribute;e's (as defined below) election under this paragraph, a distributes may ~ elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an eligible rollover distribution (as defined below) paid directly to an eligible retirement plan (as defined below) specified by the distributes in a direct rollover (as defined below). (2) For purposes of this paragraph, i:he following terms shall have the following meanings: (i) An ''eligible rollover distribution^ is any distribution of all or any portion of the balance to the credit of thF: distributes, except that an eligible rollover distribution does not include: rrny distribution that is one of a series of substantially equal periodic payments (not less frequently than annually} made for the life (or life expectancy) of the distributes or the joint lives (or joint life expectancies) of the distributes and the distributee's designated beneficiary, or far a specified period of ten years or more; any distribution to the extent such distribution is required under Code Section 401(a)(9), -and the portion of any distribution that is not included in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities). 49 DB PIAN RESTATEMENT-November 20, 2003; Amended October 'I, 2005 Exhibit B Actuarial Equivalent (ii} An "eligible retirement plan'' is an individual retirement account described in Code Section 408(a), an individual retirement annuity described in Code Section 408(b), an annuity plan described in Code Section 403(x), or a qualified trust described in .,ode Section 401(a), that accepts the dist~ributee'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. (iii) A "distributee" includes an Employee or former Employee. In addition, the Employee's or former Employee's surviving spouse is a distributee with regard to the interE;st of the spouse. (iv) A "direct rollover" is a payment by the Plan to the eligible retirement ,plan specified by the distributee. 50 DB PLAN RESTATEMEIVT-November 20, 2003; Amended October i, 2005 Exhibit B Actuarial Equivalent ~ . ARTICt.E 18 MISCELLANEOU~~ PROVISIONS 1.8.01 Interest oi~ Participants in Plan At no time prior to the satisfaction of all liabilitie:~ under the Plan with respect to Participants and Beneficiaries, shall any part of the corpus or income of the Fund be used for or diverted to any purpose other than for their exclusive benefit. No plan amendment or ordinance shall be adopted by the Employer ~Nhich shall have the effect of reducing the then vested accrued benefits of Participants or Participants' beneficiaries under the Plan. 18.02 Summary Plan Descriptions The Summary Ptan Description outlining the provisions of this Plan was designed only to give a brief description of the. benefit provided and does not include ail the provisions or exclusions in the Plan Document. If the Surnmi~ry Plan Description disagrees with the Plan herein in any way, the Plan Document will govern. 18.03. Gender and Number Wherever any words are used in the masculine, feminine or neutral gender, they shall be construed as though they were also used in another gender in all cases where they would apply. Whenever any words are used herein in the singular or plural form, they shall be constn~ed as though they were also used in tree other form in all cases where they would aPPiy• 18.04 Headincps and References All headings and references to sections, subsections, paragraphs, etc., in this Plan are inserted for convenience only and shall not affect the construction or interpretation of this Plan. 18.05 Benefit Improvements Benefit improvements which., in the past, have been provided for by amendments to the Plan adopted by the Employer by ordinance or resolution, and any benefit improvements DB PLAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent which might be made in the future, shall apply prospectively and shall not apply to Participants who terminate employment or wl~o retire prior to the effective date of any ordinance or resolution adopting such benefit: improvements, unless such ordinance or resolution specifically provides to the contrary. 18.06 Procedure for Unclaimed Benefit If the Board is unable, within three years after ~3ny benefit becomes due to a Participant or Beneficiary under the Plan, to authorize payment because the identity or whereabouts of such person cannot be ascertained, the Board may direct that such benefit. and all further benefits with respect fo such person shall bt; forfeited and all liability for the payment ' thereof shall terminate. 18.07 Qualified Military Service: Notwithstanding any provision of this Plan tc~ the contrary, contributions, benefits, and ~ service credit with respect to qualified military service will be provided in accordance with § 414(u) of the Code. 18.08Domestic Relations Order Submission: (A) Prior to tine entry of any domestic relations order which affects or purports to affect the Fund's responsibilities in connection with the payment of benefits, that order should be submitted through the Fund's administrator for review as to whether the Fund may honor it. (B) If the domestic relations order is not submitted. to the administrator for review prior to entry, and the Fund is ordered to take action that it may not legally take, and the Fund. expends administrative or legal fees in resolving the matter: the Participant who submitted 'the domestic relations order wild be required to reimburse the Fund its expenses in connection with the order. (C) The administrator may develop rules or regulations concerning what the .Fund will consider to determine if a domestic relations t~rder may be complied with by the Fund. ~2 D(3 PLAN RESTATEMEIVT-November 20. 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent 18.O9PIan Amendments The Employer acknowledges the FMPl~F Defined Benefit Plan document may be amended from time to time by the FMPTF Master Trustee to comply with applicable federal or state laws or regulations, and to make ministerial or administrative changes to the .Plan, without the consent of the Employer or of Participants or any Beneficiaries thereof, Any amendment of the Plan, made in accordance with this provision, may be made retroactively, if deemed necessary or appropriate by the FMPTF Master Trustee. A copy of any Plan amendment shall be dfslivered to the Plan administrator, and the Plan shall be amended in the manner and effective as of the date set forth therein, and the Employers, Employees, Participants and Beneficiaries shall be bound by the amendment. ~ The FMPI"F Master Trustee shall not make any amendment to benefits under the Plan unle~~s the amendment is necessitated to comply with applicable federal or state laws or regulations. Employers shall receive copies of any Plan amendments made by the FMPTF Master Trustee. 53 DB PLAN RESTATEMENT-Novembef 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent ARTICLE 19 REPEAL OR TERMIN,4TION OF PLAN (A) This Plan and Fund may be modified, terminated, or amended, in whole or in part at any time by the Employer; provided that if this Plan or any subsequent ordinanre or resolution shall be amended or repealed in its application to any person benefiting hereunder, the amount of benefits which at the time of any such alteration, amendment, or repeal shall have accrued to the Participant or beneficiary shall not be affected thereby, except to the extent that the assets of the Fund may be determined to be inadequate. (B) If this Plan shall be repealed.., or if contributions to the Plan are discontinued, or if there is a transfer, merger or consolidation of government units, services or functions as provided in ChaPi:er 121, FI. Stat., the Board shall continue to administer the Plan in accordance with the provisions of this Plan, for the sole benefit of the then Participant's, ~ any beneficiaries then receiving retirement allowances, and any future persons entitled to receive future benefits. In the event of repeal, tE:rmination or permanent discontinuance of contributions due to transfer, merger or consolidation of government units, services or functions, there shall be full vesting (100%) of t~enefits accrued to date of repeal and the assets of the Plan shall be allocated in an equitable manner to provide benefits on a proportionate basis to the persons so entitled in ~~ccordance with the provisions thereof. (C) The following shall be the order of priority for purposes of allocating the assets of the Plan as of the date. of repeal of this Plan, or if contributions to the Plan are discontinued with the date of such discontinuation being deienmined by the Employer. (1) Apportionment shall first be made in respect of each retired Participant receiving a retirement or disability bene~Fit hereunder on such date, each person .receiving a benefit on such date on account of a retired or disabled (but since deceased) Participant, and each Participant who has, by such date, become eligible for normal retirement but. has not yet retired, an amount which is the actuarial i~ equivalent of such benefit, based upon the actuarial assumptions in use for 54 DB PLAN RESTATEMENT-November 20,.2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent purposes of the most recent actuarial valuation, provided that, if such asset value be less than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such asset value. (2) If there be any asset value remaining after the apportionment under paragraph 1, apportionment shall next bE~ made in respect of each Participant in the service of the Employer on such date wrro has completed at least ten {10) Years of Credited Service and who is not entitled to an apportionment under paragraph 1, in the amount required to provide the Actuarial Equivalent, as described in paragraph 1 above, of the accrued Normal Retirement Benefit, based on the Credited Service and Salary as of such date, and each vested former Participant then entitled to a deferred bE~nefit who has not, by such elate, begun receiving benefit payments, in the amount required to provide said Actuarial Equivalent of the accrued Normal Retirement Benefit, provided that, if such remaining asset value is less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. (3) If there be any asset value after the apportionments under paragraph 1 and 2 above, apportionment shall be made in respect of each Participant in the service of the Employer on such date. who is not entitled to an apportionment under paragraphs, 1 and 2 above in the arrlount equal to Participant's Accumulated Coritributions, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such. latter amount shall be .proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. (4) If there be any asset value remaining after the apportionments under paragraphs 1, 2, and 3 above, apportionment shall lastly be made in respect of each participant included in paragraph 3 above to the extent of the Actuarial Equivalent, JJ DB PIAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent as described in paragraph 1 above, of i:he accrued Normal Retirement Benefit, less the amount apportioned in paragraph 3 above, based on the Credited Service and Average I=final Compensation as of such date, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such amounts shall be reduced so that the ;aggregate of such reduced amounts will be equal to such remaining asset value: (5) In the event that there be asset value remaining after the full apportionment specified in .paragraphs 1, 2, 3, and 4 above, such excess shall be refurned to the Employer, less return of the State's contributions to the .State. provided that, if the excess is less than the total contributions made by the Employer and the State. to the date of termination such excess shall be divided proportionately to the total contributions made by the Employer and the State. ~ The alloc<~tion of the Fund provided for in this subsection may, as decided by the Board anci the Employer be carried out •through the purchase of insurance company contracts to provide the benefits determined in accordance with this subsection. The Fund may be distributed in one suin to the persons entitled to said benefits or the distribution may be carried out in such other equitable manner as the Board and the Employer may direct. The Trust may be continued in existence for purposes of subsequent distributions. (6) After all the vested and accrued. benefits provided hereunder have been paid and after all other liabilities have been satisfied, then and only then, shall any remaining funds be reverted to of the Employer. . 56 DB PLAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial. Equivalent ARTICLE 20 IXEMPTION FROM EXECUTION, NON-ASSIGNABILITY The pensions, annuities, or any other benefits ~~ccrued or accruing to any person under the provisions of this Plan, the Accumulated Contributions and the assets in the Fund created under this Plan are exempt from any state, county or municipal tax of the state and shall not be subject to execution, attachment, garnishment or any legal process whatsoever and shall be unassignable. ~7 DB PLAN RESTATEMENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent AI~TICI_E 2~ FOFZFEITURE OF PENSION: CO~'VVICTION AND FORFEITURE Any Participant who is convicted of the any of the following offenses committed prior to retirement, or whose employment is terminated by reason of his admitted commission, aid or abetment of the following specified .offenses, shall forfeit all rights and benefits under this Plan, except for the return of his Accumulated Contributions as of the date of termination. (A) Specified offenses are as follows° (1) the committing, aiding or albetting of an embezzlement of public funds; (2) the committing, aiding or abetting of any theft by a public officer or employee from the employer; (3) bribery in connection wii`h the employment. of a public officer or employee; any felony specified in Chapter 838, Florida Statutes; (5) the committing of an impe:~chable offense. (6) the committing of any felony by a public officer or employee who willfully and with intent to defrautj the public or the public agency, for which he acfs or in which he is employed, of the right to receive the faithful performance of his duty as a public officer or employee, realizes or obtains or attempts to obtain a profit, gain, or advantage for himself or for some other person through the use or atternpted u.se of the power, rights, privileges, duties or position of his public office or employment position. (B) Coinviction shall be defined as follows: An adjudication of guilt by a court of competent jurisdiction; a plea of guilty or a polo contendere; a jury verdict of guilty when adjuidication of guilt is withheld and the accused is placed on probation; or a conviction by the Senate of an impeachalble offense. (C) Court shall be defined as follows: any state or federal court of competent ~ jurisdictianl, which is exercising its jurisdiction to consider a proceeding involving the JS OB PLAN RESTATEMENT-November 20, 20D3; Amended October 1, 2D05 Exhibit R Actuarial Equivalent alleged commission of a specified offen;~e. Prior to forfeiture, the Board shall hold a hearing on which notice shall be given to the Participant whose benefits are being considered for forfeiture. Said Participant shall be afforded the right to have an attorney present. No formal rules of evidence shall apply, but the Participant shall be afforded a full opportunity to present his case against forfeiture. (D) Any Participant who has receivE:d benefits from the Plan in excess of his Accumulated Contributions .after Participant's rights were forfeited pursuant to this section shall be required to pay back. to the Fund the amount of the benefits received in excess of his Accumulated Contributions. The Board may implement all legal action necessary to recover such funds. (E) As provided in the Florida Statutes, it is unlawful for a person to willfully and knowingly make, or cause to be made, ur to assist, conspire with, or urge another to make, or cause to be made, -any falsts, fraudulent; or misleading oral or written ~ statement or withhold or conceal materiel information to obtain any benefit from the Plan. A person who commits a crime is punishable as provided in Section 775.082 or Section 775.083, Florida Statutes. (F) In <3ddition to any applicable criminal penalty upon conviction for a violation described in paragraph (E), a Participant or Beneficiary of the Pfan may, in the discretion of the Board, be required to forfeit the right to receive any or all benefits to which the person would be otherwise b~ entitled under the Plan. For purposes of this paragraph (F) °conviction" means a determination of guilt that is the result of a plea or trial, regardless of whether adjudication is withheld. 59 D8 PLAN RESTATEh1ENT-November 20, 2003; Amended October 1, 2005 Exhibit B Actuarial Equivalent AFZTlCLE 22 , PENSION V~~LIDITY The Board shall rave the power to examine anti investigate into the facts upon which any pension shall heretofore have been granted +ander any prior or existing law, or shall hereafter be granted or obtained erroneously, fraudulently or illegally for any reason. The Board is empowESred to purge the pension rolls or correct the pension amount of any person heretofore; granted a pension under prior or existing law or any person hereafter granted a pension under this Plan if the. same is found to be erroneous. fraudulent or illegal for any reason, grid to reclassify any person who has heretofore under any prior or existing law been or who shall hereafter under this Plan be erroneously, improperly or illegally classified. Any overpayments or under payments shall be corrected and paid or repaid in a reasonable manner determined by the Board. 60 DB PLAN RESTATEMENT"-November 20. 2003; Amended October 1, ,1005 Exhibit B Actuarial Equivalent ARTfCL,E 23 SIGNATCIRiES This agrE:ement is effective on the date specified in the Adoption Agreement. . City of lLongwood ~ EMPLOYER . ~ ~i r r AUTHORIZEDgL~ NATURE - v ~ Haywood ~G. Bundy„ Jr., Mayor TITL1= ~-1--~.Uy ~a DATE: 61 DB PLAN RESTATEbIENT-November 20, 2003; Amended October 1, 2405 Exhibit 8 Actuarial Equivalent ~ EXI~IIBIT B ACTUARIAL EQUIVALENT' 1. Actuarial Equivalent for Benefit Calculations under the Plan Actuarial Equivalent steal} mean a benefit of equivalent current value to the benefit that would otherwise have been provided to the Participant. At the time of calculation of the actuarially equivalent benefit, the calculation shall not include possible future benefit increases which have not been adopted by an Ordinance or Resolution and which are not in effect as c?f the calculation date. The calculations will be performed using the 1983 Group :Mortality Table set back two years and the rate of interest that is specified in th~~ preceding actuarial valuation used to fund the Plan. 2. Actuarial Equivalent for 11~Laxi~nuni Benefit Testing under IRS Codc Section 415(b) The applicable mortality table under 417(e)(3) is the fixed blend of 50'% of the male mortality and 50% of the female mortality rate from the 94 GAR mortality table. The applicable interest rate will be detern~ined using a look back period of months and a stability period of one calendar year. For the period allowed the applicable interest rate will be the rate as specified in the preceding sentence or 5.5% if higf~er as allowed under the Pension Funding Lquity Act of 2004. ~ci ia~z,i - iineia_iai - a ao3zio.~i