Ordinance 11-1980 ORDINANCE NO. 11 -1980
AN ORDINANCE OF THE CITY OF LONGWOOD,
AMENDING AND RESTATING ORDINANCE NO. 03 -1671,
AS SUBSEQUENTLY AMENDED; BY RESTATING THE
CITY OF LONGWOOD POLICE OFFICERS' AND
FIREFIGHTERS' PENSION TRUST FUND; PROVIDING
FOR DEFINITIONS; PROVIDING FOR MEMBERSHIP;
PROVIDING FOR A BOARD OF TRUSTEES; PROVIDING
FOR FINANCES AND FUND MANAGEMENT;
PROVIDING FOR CONTRIBUTIONS; PROVIDING FOR
BENEFIT AMOUNTS AND ELIGIBILITY; PROVIDING
FOR PRE - RETIREMENT DEATH BENEFITS; PROVIDING
FOR DISABILITY BENEFITS; PROVIDING FOR VESTING
OF BENEFITS; PROVIDING OPTIONAL FORMS OF
BENEFITS; PROVIDING FOR BENEFICIARIES;
PROVIDING CLAIMS PROCEDURES; PROVIDING FOR
REPORTS TO THE DIVISION OF RETIREMENT;
PROVIDING FOR A ROSTER OF RETIREES; PROVIDING
FOR A MAXIMUM PENSION LIMITATION; PROVIDING
FOR DISTRIBUTION OF BENEFITS; PROVIDING
MISCELLANEOUS PROVISIONS; PROVIDING FOR
REPEAL OR TERMINATION OF THE SYSTEM;
PROVIDING FOR DOMESTIC RELATIONS ORDERS;
RETIREE DIRECTED PAYMENTS; EXEMPTION FROM
EXECUTION AND NON - ASSIGNABILITY; PROVIDING
FOR PENSION VALIDITY; PROVIDING FOR
FORFEITURE OF PENSION UNDER CERTAIN
CIRCUMSTANCES; PROVIDING FOR CONVICTION AND
FORFEITURE, FALSE, MISLEADING OR FRAUDULENT
STATEMENTS; PROVIDING FOR INDEMNIFICATION
AND DEFENSE OF CLAIMS; PROVIDING FOR DIRECT
TRANSFERS OF ELIGIBLE ROLLOVER
DISTRIBUTIONS; PROVIDING FOR PURCHASE OF
CREDIT FOR MILITARY SERVICE PRIOR TO
EMPLOYMENT; PROVIDING FOR THE PURCHASE - -
CREDITED SERVICE FOR ABSENCES PURSUANT' TO
THE FAMILY AND MEDICAL LEAVE ACT; PROVIDING
FOR THE PURCHASE OF CREDITED SERVICE FOR =
PRIOR POLICE OR FIRE SERVICE; PROVIDING- A
DEFINED RETIREMENT ACCUMULATION ' GROUP
OBLIGATION FUND; PROVIDING ` FOR
CODIFICATION; PROVIDING FOR SEVERABILITX OF
PROVISIONS; REPEALING ALL ORDINANCES_ IN
CONFLICT HEREWITH AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Longwood Police Officers and Firefighters are presently
provided pension and certain other benefits under the Florida Municipal Pension Trust Fund.,
adopted by Ordinance of the City of Longwood and;
WHEREAS, the City Commission desires to clarify and restate the provisions of the
Police Officers' and Firefighters' Pension Trust Fund to consolidate all prior Ordinances and.
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Code provisions and to incorporate Federal law and the applicable provisions of Chapters 175
and 185, Florida Statutes
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF LONGWOOD, FLORIDA;
SEC'T'ION 1 : That an Ordinance of the City of Longwood, amending and restating
Ordinance No. 03 -1671, as subsequently amended, is hereby amended and restated as set forth in
the document designated CITY OF LONGWOOD POLICE OFFICERS' AND FIREFIGHTERS'
PENSION TRUST FUND, attached hereto and made a part hereof.
SECTION 2 : Specific authority is hereby granted to codify and incorporate this
Ordinance in the existing Code of Ordinances of the City of Longwood.
SECTION 3 : Repeal of Prior Inconsistent Ordinances and Resolutions. All Ordinances
or parts of Ordinances in conflict herewith be and the same are hereby repealed.
SECTION 4 : Severability. If any section, subsection, sentence, clause, phrase of this
ordinance, or the particular application thereof shall be held invalid by any court, administrative
agency, or other body with appropriate jurisdiction, the remaining section, subsection, sentences,
clauses, or phrases under application shall not be affected thereby.
SECTION 5 : Effective Date. That this Ordinance shall become effective upon its
adoption.
FIRST READING: b r- 2- 1 - z-
SECOND READING: r V ZO 1; Z,
PASSED AND ADOPTED THIS DAY OF FEBRUARY, 2012.
ATTEST: CITY OF LONGWOOD, FLORIDA
Sarah M. Mirus, MMC, MBA, City Clerk os6 D� u o Mayor
Approved as to form and legality for the use and rely nc
of the C' _of ongwood, Flo ida, only:
�O
Da
pifl Langley, i y l
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CITY OF ILONGWOOD
POLICE OFFICERS' AND FIREFIGHTERS' PENSION TRUST FUND
SECTION 1. DEFINITIONS
1. As used herein, unless otherwise defined or required by the context, the following
words and phrases shall have the meaning indicated:
Accumulated Contributions means a Member's own contributions without interest. For
those Members who purchase Credited Service with interest or at no cost to the System, any
payment representing the amount attributable to Member contributions based on the applicable
Member contribution rate, and any payment representing interest and any required actuarially
calculated payments for the purchase of such Credited Service, shall be included in Accumulated
Contributions.
Actuarial. Equivalent means a benefit or amount of equal value, based upon the RP 2000
Combined Healthy Mortality Table and an interest rate of seven and one -half percent (7.5 %) per
annum. This definition may only be amended by the City pursuant to the recommendation of the
Board using assumptions adopted by the Board with the advice of the plan's actuary, such that
actuarial assumptions are not subject to City discretion.
Average Final Compensation means one- twelfth (1/12) of the average Salary of the three
(3) best years of the last ten (10) years of Credited Service prior to Retirement, termination, or
death, or the career average as a full -time Police Officer or Firefighter, whichever is greater. A
year shall be twelve (12) consecutive months.
Beneficiary means the person or persons entitled to receive benefits hereunder at the
death. of a Member who has or have been designated in writing by the Member and filed with the
Board. If no such designation is in effect, or if no person so designated is living, at the time of
death. of the Member, the Beneficiary shall be the estate of the Member.
Board means the Board of Trustees, which shall administer and manage the System
herein provided and serve as trustees of the Fund.
City means City of City of Longwood, Florida.
Code means the Internal Revenue Code of 1986, as amended from time to time.
Credited Service means the total number of years and fi•actional parts of years of service
as a Police Officer or Firefighter with Member contributions, when required, omitting
intervening years or fractional parts of years when such Member was not employed by the City
as a Police Officer or Firefighter. A Member may voluntarily leave his Accumulated Contribu-
tions in the Fund for a period of five (5) years after leaving the employ of the Police or Fire
Department pending the possibility of being reemployed as a Police Officer or Firefighter, with-
out losing credit for the time that he was a Member of the System. if a vested Mernber leaves
the employ of the Police or Fire Department, his Accumulated Contributions will be returned
only upon his written request. If a Member who is not vested is not reemployed as a Police
Officer or Firefighter with the Police or Fire Department within five (5) years, his Accumulated
Contributions, if one thousand dollars ($1,000.00) or less, shall be returned. If a Mernber- who
is not vested is not reemployed within five (5) years, his Accumulated Contributions, if more
than one- thousand dollars ($1,000.00), will be returned only upon the written request of the
Member and upon completion of a written election to receive a cash lump sum or to rollover the
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lump sum amount on forms designated by the Board. Upon return of a Member's Accumulated
Contributions, all of his rights and benefits under the System are forfeited and terminated.
Upon any reemployment, a. Police Officer or Firefighter shall not receive credit for the years and
fractional parts of years of service for which he has withdrawn his Accumulated Contributions
from the Fund, unless the Police Officer or Firefighter repays into the Fund the contributions he
has withdrawn, with interest, as determined by the Board within ninety (90) days after his
reemployment.
The years or fractional parts of a year that a Member performs "Qualified Military
Service" consisting of voluntary or involuntary "service in the uniformed services" as defined in
the Uniformed Services Employment and Reemployment Rights Act (USERRA) (P.L.103 -353),
after separation from employment as a Police Officer or Firefighter with the City, shall be added
to his years of Credited Service for all purposes, including vesting, provided that:
A. The Member is entitled to reemployment under the provisions of
USERRA.
B. The Member returns to his employment as a Police Officer or Firefighter
within one (1) year fi•om the earlier of the date of his military discharge or
his release from active service, unless otherwise required by USERRA.
C. The maximum credit for military service pursuant to this paragraph shall
be five (5) years.
D. This paragraph is intended to satisfy the minimum requirements of
USERRA. To the extent that this paragraph does not meet the minimum
standards of USERRA, as it may be amended from time to time, the
minimum standards shall apply.
In the event a Member dies on or after January 1, 2007, while performing USERRA
Qualified Military Service, the beneficiaries of the Member are entitled to any benefits (other
than benefit accruals relating to the period of qualified military service) as if the Member had
resumed employment and then died while employed.
Firefighter means an actively employed full -time person employed by the City, including
his initial probationary employment period, who is certified as a Firefighter as a condition of
employment in accordance with the provisions of §633.35, Florida Statutes and whose duty it is
to extinguish fires, to protect life and to protect property. The term includes all certified,
supervisory, and command personnel whose duties include, in whole or in part, the supervision,
training, guidance, and management responsibilities of full -time Firefighters, part-time
firefighters, or auxiliary firefighters but does not include part -time firefighters or auxiliary
firefighters
Fund means the trust fund established herein as part of the System.
Member means an actively employed Police Officer or Firefighter who fulfills the
prescribed membership requirements. Benefit improvements which, in the past, have been
provided for by amendments to the System adopted by City ordinance, and any benefit
improvements which might be made in the future shall apply prospectively and shall not apply to
Members who terminate employment or who retire prior to the effective date of any ordinance
adopting such benefit improvements, unless such ordinance specifically provides to the contrary.
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Plan Year means the twelve (12) month period beginning October 1 and ending
September 30 of the following year.
Police Officer means an actively employed full -time person, employed by the City,
including his initial probationary employment period, who is certified as a Police Officer as a
condition of employment in accordance with the provisions of §943.1395, Florida Statutes who
is vested with authority to bear arms and make arrests, and whose primary responsibility is the
prevention and detection of crime or the enforcement of the penal, traffic, or highway laws of the
State of Florida.
Retiree means a Member who has entered Retirement status.
Retirement means a Member's separation from City employment with eligibility for
immediate receipt of benefits under the System.
Salary means:
A. For Police Officer Members - the total compensation for services rendered
to the City as a Police Officer reportable on the Member's W -2 form plus
all tax deferred, tax sheltered, or tax exempt items of income derived from
elective employee payroll deductions or salary reductions, but excluding
lump sum payments of accrued unused sick or annual leave and excluding
payments for extra duty or special detail work performed on behalf of a
second party employer.
B. For Firefighter Members - the total compensation for services rendered to
the City as a Firefighter reportable on the Member's W -2 form plus all tax
deferred, tax sheltered, or tax exempt items of income derived from
elective employee payroll deductions or salary reductions, but excluding
lump sum payments of accrued unused sick or annual leave. Where, as
in the case of a volunteer Firefighter, compensation is derived from actual
services rendered, salary shall be the total cash compensation received
yearly for such services, prorated on a monthly basis, (as defined in Ch.
175.032, Florida Statutes
With respect to both Police Officer and Firefighter Members, for service earned
after the date that a collective bargaining agreement is entered into after July 1,
2011 (the "effective date "), Salary shall not include more than three hundred
(300) hours of overtime per fiscal year and shall also not include payments for
accrued unused sick or annual leave. Provided however, in any event, payments
for overtime in excess of three hundred (300) hours per year accrued as of the
effective date and attributable to service earned prior to the effective date, may
still be included in Salary for pension purposes even if the payment is not actually
made until on or after the effective date. Additional hours worked pursuant to
the Fair Labor Standards Act (FLSA) shall not be deemed to be overtime.
Compensation in excess of the limitations set forth in Section 401(a)(17) of the
Code as of the first day of the Plan Year shall be disregarded for any purpose,
including employee contributions or any benefit calculations. The annual
compensation of each member taken into account in determining benefits or
employee contributions for any Plan Year beginning on or after January 1, 2002,
may not exceed $200,000, as adjusted for cost -of- living increases in accordance
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with Code Section 401(a)(17)(B). Compensation means compensation during
the fiscal year. The cost -of- living adjustment in effect for a calendar year
applies to annual compensation for the determination period that begins with or
within such calendar year. If the determination period consists of fewer than 12
months, the annual compensation limit is an amount equal to the otherwise
applicable annual compensation limit multiplied by a fraction, the numerator of
which is the number of months in the short determination period, and the
denominator of which is 12. If the compensation for any prior determination
period is taken into account in determining a Member's contributions or benefits
for the current Plan Year, the compensation for such prior determination period is
subject to the applicable annual compensation limit in effect for that prior period.
The limitation on compensation for an "eligible employee" shall not be less than
the amount which was allowed to be taken into account hereunder as in effect on
July 1, 1993. "Eligible employee" is an individual who was a Member before
the first Plan Year beginning after December 31, 1995.
Spouse means the lawful wife or husband of a Member or Retiree at the time benefits
become payable.
System means the City of City of Longwood Police Officers' and Firefighters' Pension
Trust Fund as contained herein and all amendments thereto.
2. Masculine Gender
The masculine gender, where used herein, unless the context specifically requires
otherwise, shall include both the feminine and masculine genders.
SECTION 2. MEMBERSHIP
1. Conditions of Eligibility
All Police Officers or Firefighters as of January 1, 1996, and all future new Police
Officer or Firefighters, shall become Members of this System as a condition of employment.
The current Police Chief and current Fire Chief are not Members of the system.
2. Police or Fire Chief Opt -Out
Notwithstanding the previous subsection, any future new Police Chief or Fire
Chief may, within the first sixty (60) days of employment as Police Chief or Fire Chief, notify
the board and the City, in writing, of his election to not be a member of the system. In the event
of any such election, he shall be barred from future membership in the system and any
contributions made after employment and prior to opting out shall be refunded. Thereafter,
contributions to the plan in accordance with Section 5., shall not be required, he shall not be
eligible to be elected as a member trustee on the board or vote for a member trustee and shall not
be eligible for any other benefits from the plan.
3. Designation of Beneficiary.
Each Police Officer or Firefighter shall complete a form prescribed by the Board
designating a Beneficiary or Beneficiaries.
SECTION 3. BOARD OF TRUSTEES
1. The sole and exclusive administration of and responsibility for the proper
operation of the System and for making effective the provisions of this ordinance is hereby
vested in a Board of Trustees. The Board is hereby designated as the plan administrator. The
Board shall consist of five (5) Trustees, two (2) of whom, unless otherwise prohibited by law,
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shall be legal residents of the City, who shall be appointed by the City of Longwood City
Commission, and two (2) of whom shall be Members of the System, one (1) of whom shall be a
Police; Officer Member and one (1) of whom shall be a Firefighter Member, who shall be elected
by a majority of the Police Officers or Firefighters, respectively, who are Members of the
System. The fifth Trustee shall be chosen by a majority of the previous four (4) Trustees as
provided for herein, and such person's name shall be submitted to the City of Longwood City
Commission. Upon receipt of the fifth person's name, the City of Longwood City
Commission shall, as a ministerial duty, appoint such person to the Board of Trustees as its fifth
Trustee. The fifth Trustee shall have the same rights as each of the other four (4) Trustees
appointed or elected as herein provided and shall serve a four (4) year term unless he sooner
vacates the office. Each resident Trustee shall serve as Trustee for a period of four (4) years,
unless he sooner vacates the office or is sooner replaced by the City of Longwood City
Commission at whose pleasure he shall serve. Each Member Trustee shall serve as Trustee for
a period of four (4) years, unless he sooner leaves the employment of the City as a Police Officer
or Firefighter or otherwise vacates his office as Trustee, whereupon a successor shall be chosen
in the same manner as the departing Trustee. Each Trustee may succeed himself in office.
The Board shall establish and administer the nominating and election procedures for each
election. The Board shall meet at least quarterly each year. The Board shall be a legal entity
with, in addition. to other powers and responsibilities contained herein, the power to bring and
defend lawsuits of every kind, nature, and description.
2. The Trustees 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, proceedings, or
hearings of the Board. The Trustees shall not receive any compensation as such, but may
receive expenses and per diem as provided by law.
3. Each Trustee shall be entitled to one (1) vote on the Board. Three (3)
affirmative votes shall be necessary for any decision by the Trustees at any meeting of the Board.
A Trustee shall abstain from voting as the result of a conflict of interest and shall comply with
the provisions of Section 112.3143, Florida Statutes
4. The Board shall engage such actuarial, accounting, legal, and other services as
shall be required to transact the business of the System. The compensation of all persons
engaged by the Board and all other expenses of the Board necessary for the operation of the
System shall be paid from the Fund at such rates and in such amounts as the Board shall agree.
In the event the Board chooses to use the City's legal counsel, actuary or other professional,
technical or other advisors, it shall do so only under terms and conditions acceptable to the
Board.
5. The duties and responsibilities of the Board shall include, but not necessarily be
limited to, the following:
A. To construe the provisions of the System and determine all questions
arising thereunder.
B. To determine all questions relating to eligibility and membership.
C. To determine and certify the amount of all retirement allowances or other
benefits hereunder.
O. To establish uniform rules and procedures to be followed for adminis-
trative purposes, benefit applications and all matters required to administer
the System.
E. To distribute to Members, at regular intervals, information concerning the
System.
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F. To receive and process all applications for benefits.
G. To authorize all payments whatsoever from the Fund, and to notify the
disbursing agent, in writing, of approved benefit payments and other
expenditures arising through operation of the System and Fund.
H. To have performed actuarial studies and valuations, at least as often as
required by law, and make recommendations regarding any and all
changes in the provisions of the System.
I. To perform such other duties as are required to prudently administer the
System.
SECTION 4. FINANCES AND FUND MANAGEMENT
Establishment and Operation of Fund
1. As part of the System, there is hereby established the Fund, into which shall be
deposited all of the contributions and assets whatsoever attributable to the System, including the
assets of the prior Police Officers' and Firefighters' Pension Trust Fund.
2. The actual custody and supervision of the Fund (and assets thereof) shall be
vested in the Board. Payment of benefits and disbursements from the Fund shall be made by
the disbursing agent but only upon written authorization from the Board.
3. All funds of the Police Officers' and Firefighters' Pension Trust Fund may be
deposited by the Board with the Finance Director of the City, acting in a ministerial capacity
only, who shall be liable in the same manner and to the same extent as lie is liable for the safe-
keeping of funds for the City. However, any funds so deposited with the Finance Director of
the City shall be kept in a separate fund by the Finance Director or clearly identified as such
funds of the Police Officers' and Firefighters' Pension Trust Fund . In lieu thereof, the Board
shall deposit the funds of the Police Officers' and Firefighters' Pension Trust Fund in a
qualified public depository as defined in §280.02, Florida Statutes which depository with regard
to such funds shall conform to and be bound by all of the provisions of Chapter 280, Florida
Statutes In order to fulfill its investment responsibilities as set forth herein, the Board may
retain the services of a custodian bank, an investment advisor registered under the Investment
Advisors Act of 1940 or otherwise exempt from such required registration, an insurance
company, or a combination of these, for the purposes of investment decisions and management.
Such investment manager shall have discretion, subject to any guidelines as prescribed by the
Board, in the investment of all Fund assets.
4. All funds and securities of the System may be commingled in the Fund, provided
that accurate records are maintained at all times reflecting the financial composition of the Fund,
including accurate current accounts and entries as regards the following:
A. Current amounts of Accumulated Contributions of Members on both an
individual and aggregate account basis, and
B. Receipts and disbursements, and
C. Benefit payments, and
D. Current amounts clearly reflecting all monies, funds and assets whatsoever
attributable to contributions and deposits from the City, and
E. All interest, dividends and gains (or losses) whatsoever, and
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F. Such other entries as may be properly required so as to reflect a clear and
complete financial report of the Fund.
5. An audit shall be performed annually by a certified public accountant for the most
recent fiscal year of the System showing a detailed listing of assets and a statement of all income
and disbursements during the year. Such income and disbursements must be reconciled with
the assets at the beginning and end of the year. Such report shall reflect a complete evaluation
of assets on both a cost and market basis, as well as other items normally included in a certified
audit.
6. The Board shall have the following investment powers and authority:.
A. The Board shall be vested with full legal title to said Fund, subject,
however, and in any event to the authority and power of the City of
Longwood City Commission to amend or terminate this Fund, provided
that no amendment or Fund termination shall ever result in the use of any
assets of this Fund except for the payment of regular expenses and benefits
under this System, except as otherwise provided herein. All contribu-
tions from time to time paid into the Fund, and the income thereof,
without distinction between principal and income, shall be held and
administered by the Board or its agent u1 the Fund and the Board shall not
be required to segregate or invest separately any portion of the Fund.
B. All monies paid into or held in the Fund shall be invested and reinvested
by the Board and the investment of all or any part of such funds shall be
subject to the following:
(1) Notwithstanding any limitation provided for in Chapter 185 or
175, Florida Statutes to the contrary (unless such limitation
may not e amen e y local ordinance) or any limitation in prior
city ordinances to the contrary, all monies paid into or held ul the
Fund may be invested and reinvested in such securities, investment
vehicles or property wherever situated and of whatever kind, as
shall be approved by the Board, including but not limited to
common or preferred stocks, bonds, and other evidences of
indebtedness or ownership. In no event, however, shall more
than twenty -five percent (25 %) of the assets of the Fund at market
value be invested in foreign securities.
(2) The Board shall develop and adopt a written investment policy
statement setting forth permissible types of investments, goals and
objectives of investments and setting quality and quantity
limitations on investments in accordance with the
recommendations of its investment consultants. The investment
policy statement shall be reviewed by the Board at least annually.
(3) In addition, the Board may, upon recommendation by the Board's
investment consultant, make investments in group trusts meeting
the requirements of Internal Revenue Service Revenue Ruling
81 -100 or successor rulings or guidance of sunilar import, and
while any portion of the assets of the Fund are invested in such a
group trust, such group trust is itself adopted as a part of the
System or plan.
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C. At least once every three (3) years, and more often as determined by the
Board, the Board shall retain a professionally qualified independent
consultant, as defined in Section 175.071 or 185.06, Florida Statutes to
evaluate the performance of all current investment managers and make
recommendations regarding the retention of all such investment managers.
These recommendations shall be considered by the Board at its next
regularly scheduled meeting.
D. The Board may retain in cash and keep unproductive of income such
amount of the Fund as it may deem advisable, having regard for the cash
requirements of the System.
E. Neither the Board nor any Trustee shall be liable for the making, retention
or sale of any investment or reinvestment made as herein provided, nor for
any loss or diminishment of the Fund, except that due to his or its own
negligence, willful misconduct or lack of good faith.
F. The Board may cause any investment in securities held by it to be
registered in or transferred into its name as Trustee or into the name of
such nominee as it may direct, or it may retain them unregistered and in
form permitting transferability, but the books and records shall at all times
show that all investments are part of the Fund.
G. The Board is empowered, but is not required, to vote upon any stocks,
bonds, or securities of any corporation, association, or trust and to give
general or specific proxies or powers of attorney with or without power of
substitution; to participate in mergers, reorganizations, recapitalizations,
consolidations, and similar transactions with respect to such securities; to
deposit such stock or other securities in any voting trust or any protective
or like committee with the Trustees or with depositories designated
thereby; to amortize or fail to amortize any part or all of the premium or
discount resulting from the acquisition or disposition of assets; and gener-
ally to exercise any of the powers of an owner with respect to stocks,
bonds, or other investments comprising the Fund which it may deem to be
to the best interest of the Fund to exercise.
H. The Board shall not be required to make any inventory or appraisal or
report to any court, nor to secure any order of court for the exercise of any
power contained herein.
I. Where any action which the Board is required to take or any duty or
function which it is required to perform either under the terms herein or
under the general law applicable to it as Trustee under this ordinance, can
reasonably be taken or performed only after receipt by it from a Member,
the City, or any other entity, of specific information, certification,
direction or instructions, the Board shall be free of liability in failing to
take such action or perform such duty or function until such information,
certification, direction or instruction has been received by it.
J. Any overpayments or underpayments from the Fund to a Member, Retiree
or Beneficiary caused by errors of computation shall be adjusted with
interest at a rate per annum approved by the Board in such a manner that
the Actuarial Equivalent of the benefit to which the Member, Retiree or
Beneficiary was correctly entitled, shall be paid. Overpayments shall be
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charged against payments next succeeding the correction or collected in
another manner if prudent. Underpayments shall be made up from the
Fund in a prudent manner.
K. The Board shall sustain no liability whatsoever for the sufficiency of the
Fund to meet the payments and benefits provided for herein.
L. In any application to or proceeding or action in the courts, only the Board
shall be a necessary party, and no Member or other person having an
interest in the Fund shall be entitled to any notice or service of process.
Any judgment entered in such a proceeding or action shall be conclusive
upon all persons.
Nl. Any of the foregoing powers and functions reposed in the Board may be
performed or carried out by the Board through duly authorized agents,
provided that the Board at all times maintains continuous supervision over
the acts of any such agent; provided further, that legal title to said Fund
shall always remain in the Board.
SECTION 5. CONTRIBUTIONS.
1. Member Contributions
A. Amount Each Member of the System shall be required to make regular
contributions to the Fund in the amount of one percent (1 %) of his Salary.
Member contributions withheld by the City on behalf of the Member shall
be deposited with the Board immediately after each pay period. The
contributions made by each Member to the Fund shall be designated as
employer contributions pursuant to §414(h) of the Code. Such designa-
tion is contingent upon the contributions being excluded from the
Members' gross income for Federal Income Tax purposes. For all other
purposes of the System, such contributions shall be considered to be
Member contributions.
B. Method Such contributions shall be made by payroll deduction.
2. S tate Contributions
Any monies received or receivable by reason of laws of the State of Florida, for
the express purpose of funding and paying for retirement benefits for Police Officer or
Firefighters of the City shall be deposited in the Fund comprising part of this System
immediately and under no circumstances more than five (5) days after receipt by the City.
3. C ity Contributions
So long as this System is in effect, the City shall make quarterly contributions to
the Fund in an amount equal to the required City contribution, as shown by the applicable
actuarial valuation of the System.
4. Other
Private donations, gifts and contributions may be deposited to the Fund, but such
deposits must be accounted for separately and kept on a segregated bookkeeping basis. Funds
arising from these sources may be used only for additional benefits for Members, as determuned
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by the Board, and may not be used to reduce what would have otherwise been required City
contributions.
SECTION 6. BENEFIT AMOUNTS AND ELIGIBILITY
1. Normal Retirement Date
A Member's normal retirement date shall be the first day of the month coincident
with, or next following the earlier of the attainment of age fifty (50) and five (5) years of
Credited Service, or attainment of twenty -five (25) years of Credited Service, regardless of age.
A Member may retire on his normal retirement date or on the first day of any month thereafter,
and each Member shall become one hundred percent (100 %) vested in his accrued benefit on the
Member's normal retirement date. Normal retirement under the System is Retirement from
employment with the City on or after the normal retirement date.
2. Normal Retirement Benefit
A Member retiring hereunder on or after his normal retirement date shall receive a
monthly benefit which shall commence on the first day of the month coincident with or next
following his Retirement and be continued thereafter during Member's lifetime, ceasing upon
death, but with one hundred twenty (120) monthly payments guaranteed in any event. The
monthly retirement benefit shall equal three percent (3 %) of Average Final Compensation, for
each year of Credited Service.
3. Required Distribution Date
The Member's benefit under this Section must begin to be distributed to the
Member no later than April 1 of the calendar year following the later of the calendar year in
which the Member attains age seventy and one -half (70%2) or the calendar year in which the
Member terminates employment with the City.
SEC'T'ION 7. PRE - RETIREMENT DEATH
1. Prior to Vesting or r Eli iibility for Retirement
The Beneficiary of a deceased Member who was not receiving monthly benefits
or who was not yet vested or eligible for normal retirement shall receive a refund of one hundred
percent (100 %) of the Member's Accumulated Contributions plus an immediate $50,000.00 lump
sum payment.
2. Deceased Members Vested or Eligible for Retirement with Spouse as Beneficiary
This subsection 2 applies only when the Member's Spouse is the sole designated
Beneficiary. The Spouse Beneficiary of any Member who dies and who, at the date of his death
was vested or eligible for normal retirement, shall be entitled to a benefit as follows:
A. If the Member was vested, but not eligible for normal retirement, the
Spouse Beneficiary shall receive a benefit payable for ten (10) years,
beginning on the date that the deceased Member would have been eligible
for normal retirement. The benefit shall be calculated as for normal
retirement based on the deceased Member's Credited Service and Average
Final Compensation as of the date of his death. The Spouse Beneficiary
may also elect to receive an actuarially reduced immediate benefit,
payable for ten (10) years.
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B. If the deceased Member was eligible for normal retirement, the Spouse
Beneficiary shall receive a benefit payable for ten (10) years, beginning on
the first day of the month following the Member's death. The benefit
shall be calculated as for normal retirement based on the deceased
Member's Credited Service and Average Final Compensation as of the
date of his death.
C. A Spouse Beneficiary may not elect an optional form of benefit, except as
provided above, however, the Board may elect to make a lump sum
payment pursuant to Section 10, subsection 7.
D. A Spouse Beneficiary may, in lieu of any benefit provided for in A or B
above, elect to receive a refund of the deceased Member's Accumulated
Contributions.
E. Notwithstanding anything contained in this Section to the contrary, in any
event, distributions to the Spouse Beneficiary will begin by December 31
of the calendar year immediately following the calendar year in which the
Member died, or by a date selected pursuant to the above provisions in this
Section that must be on or before December 31 of the calendar year in
which the Member would have attained 70'/2.
F. If the surviving Spouse Beneficiary commences receiving a benefit under
subsection A or B above, but dies before all payments are made, the
actuarial value of the remaining benefit will be paid to the Spouse
Beneficiary's estate in a lump sum.
3. Deceased Members Vested or Eligible for Retirement with Non - Spouse
Beneficiary
This subsection applies only when the Member's Spouse is not the Beneficiary or
is not the sole designated Beneficiary, but there is a surviving Beneficiary. The Beneficiary of
any Member who dies and who at the date of his death was vested or eligible for normal
retirement, shall be entitled to a benefit as follows:
A. If the Member was vested, but not eligible for normal retirement, the
Beneficiary will receive a benefit payable for ten (10) years. The benefit
will begin by December 31 of the calendar year immediately following the
calendar year in which the Member died. The benefit will be calculated
as for normal retirement based on the deceased Member's Credited Service
and Average Final Compensation and actuarially reduced to reflect the
commencement of benefits prior to the normal retirement date.
B. If the deceased Member was eligible for normal retirement, the
Beneficiary will receive a benefit payable for ten (10) years, beginning on
the first day of the month following the Member's death. The benefit
will be calculated as for normal retirement based on the deceased
Member's Credited Service and Average Final Compensation as of the
date of his death.
C. A Beneficiary may not elect an optional form of benefit, however the
Board may elect to make a lump sum payment pursuant to Section 10,
subsection 7.
D. A Beneficiary, may, in lieu of any benefit provided for in A or B above,
elect to receive a refund of the deceased Member's Accumulated
Contributions.
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E. If a surviving Beneficiary commences receiving a benefit under subsection
A or B above, but dies before all payments are made, the actuarial value of
the remaining benefit will be paid to the surviving Beneficiary's estate by
December 31 of the calendar year of the Beneficiary's death in a lump
SUM.
F.. If there is no surviving Beneficiary as of the Member's death, and the
estate is to receive the benefits, the actuarial equivalent of the Member's
entire interest must be distributed by December 31 of the calendar year
containing the fifth anniversary of the Member's death.
G. The Uniform Lifetime Table in Treasury Regulations § 1.401(a)(9) -9 shall
determine the payment period for the calendar year benefits commence, if
necessary to satisfy .the regulations.
4. In addition to the benefits provided for in paragraphs 2 and 3, the beneficiary of a
deceased Member shall receive an immediate $50,000.00 lump sum payment.
SECTION 8. IDISABII.ITY
1. Disability Benefits In -Line of Duty
Any Member who shall become totally and permanently disabled to the extent
that he is unable, by reason of a medically determinable physical or mental impairment, to render
useful and efficient service as a Police Officer or Firefighter which disability was directly
caused by the performance of his duty as a Police Officer or Firefighter, shall, upon establishing
the same to the satisfaction of the Board, be entitled to a monthly pension equal to two percent
(2 %) of his Average Final Compensation multiplied by the total years of Credited Service, but in
any event the minimum amount paid to the Member shall be fifty percent (50 %) of the Average
Final Compensation of the Member. Terminated persons, either vested or non- vested, are not
eligible for disability benefits, except that those terminated by the City for medical reasons may
apply for a disability within thirty (30) days after termination.
2. In -Line of Duty Presumptions
A. Presumption Any condition or impairment of health of a Member
caused by hypertension or heart disease shall be presumed to have been
suffered in line of duty unless the contrary is shown by competent
evidence, provided that such Member shall have successfully passed a
physical examination upon entering into such service, including cardio-
gram for Police Officer Member, which examination failed to reveal any
evidence of such condition; and provided further, that such presumption
shall not apply to benefits payable or granted in a policy of life insurance
or disability insurance.
B. Additional Presumption The presumption provided for in this paragraph
B shall apply only to those conditions described in this paragraph B that
are diagnosed on or after January 1, 1996.
(1) Definitions As used in this subsection 2.B., the following
definitions apply:
(a) "Body fluids" means blood and body fluids containing
visible blood and other body fluids to which universal
precautions for prevention of occupational transmission of
blood -borne pathogens, as established by the Centers for
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Disease Control, apply. For purposes of potential
transmission of meningococcal meningitis or tuberculosis,
the term "body fluids" includes respiratory, salivary, and
sinus fluids, including droplets, sputum, and saliva,
mucous, and other fluids through which infectious airborne
organisms can be transmitted between persons.
(b) "Emergency rescue or public safety Member" means any
Member employed full time by the City as a firefighter,
paramedic, emergency medical technician, law enforce-
ment officer, or correctional officer who, in the course of
employment, runs a high risk of occupational exposure to
hepatitis, meningococcal meningitis, or tuberculosis and
who is not employed elsewhere in a similar capacity.
However, the term "emergency rescue or public safety
Member" does not include any person employed by a
public hospital licensed under Chapter 395, Florida
Statutes or any person employed by a subsidiary thereof.
(c) "Hepatitis" means hepatitis A, hepatitis B, hepatitis non -A,
hepatitis non -B, hepatitis C, or any other strain of hepatitis
generally recognized by the medical community.
(d) "High risk of occupational exposure" means that risk that is
incurred because a person subject to the provisions of this
subsection, in performing the basic duties associated with
his employment:
L Provides emergency medical treatment in a
non - health -care setting where there is a potential for
transfer of body fluids between persons;
ii. At the site of an accident, fire, or other rescue or
public safety operation, or in an emergency rescue
or public safety vehicle, handles body fluids in or
out of containers or works with or otherwise
handles needles or other sharp instruments exposed
to body fluids;
iii. Engages in the pursuit, apprehension, and arrest of
law violators or suspected law violators and, in
performing such duties, may be exposed to body
fluids; or
iv. Is responsible for the custody, and physical restraint
when necessary, of prisoners or inmates within a
prison, jail, or other criminal detention facility,
while on work detail outside the facility, or while
being transported and, in performing such duties,
may be exposed to body fluids.
(e) "Occupational exposure," in the case of hepatitis,
meningococcal meningitis, or tuberculosis means an
exposure that occurs during the performance of job duties
that may place a worker at risk of infection.
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(2) Presumption Any emergency rescue or public safety Member
who suffers a condition or impairment of health that is caused by
hepatitis, meningococcal meningitis, or tuberculosis, that requires
medical treatment, and that results in total or partial disability or
death shall be presumed to have a disability suffered in the line of
duty, unless the contrary is shown by competent evidence;
however, in order to be entitled to the presumption, the Member
must, by written affidavit as provided in Section 92.50, Florida
Statutes verify by written declaration that, to the best of his
knowledge and belief-
(a) In the case of a medical condition caused by or derived
from hepatitis, he has not:
i. Been exposed, through transfer of bodily fluids, to
any person known to have sickness or medical
conditions derived from hepatitis, outside the scope
of his employment;
ii. Had a transfusion of blood or blood components,
other than a transfusion arising out of an accident or
injury happening in connection with his present
employment, or received any blood products for the
treatment of a coagulation disorder since last
undergoing medical tests for hepatitis, which tests
failed to indicate the presence of hepatitis;
iii. Engaged in unsafe sexual practices or other
high -risk behavior, as identified by the Centers for
Disease Control or the Surgeon General of the
United States or had sexual relations with a person
known to him to have engaged in such unsafe
sexual practices or other high -risk behavior; or
iv. Used intravenous drugs not prescribed by a
physician.
(b) In the case of meningococcal meningitis, in the ten (10)
days immediately preceding diagnosis he was not exposed,
outside the scope of his employment, to any person known
to have meningococcal meningitis or known to be an
asymptomatic carrier of the disease.
(c) In the case of tuberculosis, in the period of time since the
Member's last negative tuberculosis skin test, he has not
been exposed, outside the scope of his employment, to any
person known by him to have tuberculosis.
(3) Immunization Whenever any standard, medically recognized
vaccine or other form of immunization or prophylaxis exists for the
prevention of a communicable disease for which a presumption is
granted under this Section, if medically indicated in the given
circumstances pursuant to immunization policies established by the
Advisory Committee on Immunization Practices of the U.S. Public
Health Service, an emergency rescue or public safety Member may
be required by the City to undergo the immunization or
prophylaxis unless the Member's physician determines in writing
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that the immunization or other prophylaxis would pose a
significant risk to the Member's health. Absent such written
declaration, failure or refusal by an emergency rescue or public
safety Member to undergo such immunization or prophylaxis
disqualifies the Member from the benefits of the presumption.
(4) Record of Exposures The City shall maintain a record of any
known or reasonably suspected exposure of an emergency rescue
or public safety Member in its employ to the disease described in
this Section and shall immediately notify the Member of such
exposure. An emergency rescue or public safety Member shall
file an incident or accident report with the City of each instance of
known or suspected occupational exposure to hepatitis infection,
meningococcal meningitis, or tuberculosis.
(5) Required medical tests, preemployment physical In order to be
entitled to the presumption provided by this Section:
(a) An emergency rescue or public safety Member must, prior
to diagnosis, have undergone standard, medically accept-
able tests for evidence of the communicable disease for
which the presumption is sought, or evidence of medical
conditions derived therefrom, which tests fail to indicate
the presence of infection. This paragraph does not apply
in the case of meningococcal meningitis.
(b) On or after June 15, 1995 an emergency rescue or public
safety Member may be required to undergo a
preemployment physical examination that tests for and fails
to reveal any evidence of hepatitis or tuberculosis.
3. D isability Benefits Not -in -Line of Duty
Any Member with ten (10) years or more Credited Service who shall become
totally and permanently disabled to the extent that he is unable, by reason of a medically deter-
minable physical or mental impairment, to render useful and efficient service as a Police Officer
or Firefighter, which disability is not directly caused by the performance of his duties as a Police
Officer or Firefighter shall, upon establishing the same to the satisfaction of the Board, be
entitled to a monthly pension equal to two percent (2 %) of his Average Final Compensation
multiplied by the total years of Credited Service, but in any event, the minimum amount paid to
the Member shall be twenty -five (25 %). Terminated persons, either vested or non - vested, are
not eligible for disability benefits, except that those terminated by the City for medical reasons
may apply for a disability within thirty (30) days after tennination.
4. C onditions Disqualifying Disability Benefits
Each Member who is claiming disability benefits shall establish, to the
satisfaction of the Board, that such disability was not occasioned primarily by:
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. Injury or disease sustained while serving in any branch of the Armed
Forces.
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D. Injury or disease sustained by the Member after his employment as a
Police Officer or Firefighter with the City of City of Longwood shall
have terminated.
E. For Police Officer Members, injury or disease sustained by the Member
while working for anyone other than the City and arising out of such
employment.
5. Physical Examination Requirement
A Member shall not become eligible for disability benefits until and unless he
undergoes a physical examination by a qualified physician or physicians and /or surgeon or
surgeons, who shall be selected by the Board for that purpose. The Board shall not select the
Member's treating physician or surgeon for this purpose except in an unusual case where the
Board determines that it would be reasonable and prudent to do so.
Any Retiree receiving disability benefits under provisions of this ordinance may
be required by the Board to submit sworn statements of his condition accompanied by a
physician's statement (provided at the Retiree's expense) to the Board annually and may be
required by the Board to undergo additional periodic re- examinations by a qualified physician or
physicians and/or surgeon or surgeons who shall be selected by the Board, to determine if such
disability has ceased to exist. If the Board fmds that the Retiree is no longer permanently and
totally disabled to the extent that he is unable to render useful and efficient service as a Police
Officer or Firefighter, the Board shall recommend to the City that the Retiree be returned to
performance of duty as a Police Officer or Firefighter, and the Retiree so returned shall enjoy the
same rights that he had at the time he was placed upon pension. In the event the Retiree so
ordered to return shall refuse to comply with the order within thirty (30) days from the issuance
thereof, he shall forfeit the right to his pension.
The cost of the physical examination and /or re- examination of the Member
claiming or the Retiree receiving disability benefits shall be borne by the Fund. All other
reasonable costs as determined by the Board incident to the physical examination, such as, but
not limited to, transportation, meals and hotel accommodations, shall be borne by the Fund.
If the Retiree recovers from disability and reenters the. service of the City as a
Police Officer or Firefighter, his service will be deemed to have been continuous, but the period
beginning with the first month for which he received a disability retirement income payment and
ending with the date he reentered the service of the City will not be considered as Credited
Service for the purposes of the System.
The Board shall have the power and authority to make the final decisions
regarding all disability claims.
6. Disability Pants
The monthly benefit to which a Member is entitled in the event of the Member's
disability retirement shall be payable on the first day of the first month after the Board deter-
mines such entitlement. However, the monthly retirement income shall be payable as of the
date the Board determined such entitlement, and any portion due for a partial month shall be paid
together with the first payment. The last payment will be:
A. If the Retiree recovers from the disability, the. payment due next preceding
the date of such recovery, or
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B. If the Retiree dies without recovering from disability, the payment due
next preceding his death or the 120th monthly payment, whichever is later.
Provided, however, the disability Retiree may select, at any time prior to the date
on which benefit payments begin, an optional form of benefit payment as described in Section
10, subsection. I.A. or 1.B., which shall be the Actuarial Equivalent of the normal form of
benefit.
7. Workers' Compensation
When a Retiree is receiving a disability pension and workers' compensation
benefits pursuant to Florida Statute Chapter 440, for the same disability, and the total monthly
benefits received from both exceed one hundred percent (100 %) of the Member's average
monthly wage, as defined in Chapter 440, Florida Statutes the disability pension benefit shall be
reduced so that the total monthly amount received by the Retiree does not exceed one hundred
percent (100 %) of such average monthly wage. The amount of any lump sum workers'
compensation payment shall be converted to an equivalent monthly benefit payable for ten (10)
Years Certain by dividing the lump sum amount by 83.9692. Notwithstanding the foregoing, in
no event shall the disability pension benefit be reduced below the greater of forty -two percent
(42 %) of Average Final Compensation or two percent (2 %) of Average Final Compensation
times years of Credited Service.
SECTION 9. VESTING
If a Member terminates his employment as a Police Officer or Firefighter, either
voluntarily or by discharge, and is not eligible for any other benefits under this System, the
Member shall be entitled to the following:
1. If the Member has less than five (5) years Credited Service upon termination, the
Member shall be entitled to a refund of his Accumulated Contributions or the Member may leave
it deposited with the Fund.
2. If the Member has five (5) or more years of Credited Service upon termination,
the Member shall be entitled to a monthly retirement benefit, determined in the same manner as
for normal retirement and based upon the Member's Credited Service, Average Final
Compensation and the benefit accrual rate as of the date of termination, payable to him
commencing at the Member's otherwise normal retirement date, determined based upon his
actual years of Credited Service, provided lie does not elect to withdraw his Accumulated
Contributions and provided the Member survives to his otherwise normal retirement date. If
the Member does not withdraw his Accumulated Contributions and does not survive to his
otherwise normal retirement date, his designated Beneficiary shall be entitled to a benefit as
provided herein for a deceased Member, vested or eligible for Retirement under Pre - Retirement
Death.
SECTION 10. OPTIONAL. FORMS OF BENEFITS
1. In lieu of the amount and form of retirement income payable in the event of
normal retirement as specified herein, a Member, upon written request to the Board, may elect to
receive a retirement income or benefit of equivalent actuarial value payable in accordance with
one (1) of the following options:
A. A retirement income of a monthly amount payable to the Retiree for his
lifetime only.
B. A retirement income of a modified monthly amount, payable to the
Retiree during the lifetime of the Retiree and following the death of the
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Retiree, one hundred percent (100 %), seventy -five percent (75 %),
sixty -six and two - thirds percent (66 2/3 %) or fifty percent (50 %) of such
monthly amount payable to a joint pensioner for his lifetime. Except
where the Retiree's joint pensioner is his spouse, the payments to the joint
pensioner as a percentage of the payments to the Retiree shall not exceed
the applicable percentage provided for in the applicable table in the
Treasury regulations. (See Q & A -2 of 1.401(a)(9) -6)
C. If a Member retires prior to the time at which social security benefits are
payable, he may elect to receive an increased retirement benefit until such
time as social security benefits shall be assumed to commence and a
reduced benefit thereafter in order to provide, to as great an extent as
possible, a more level retirement allowance during the entire period of
Retirement. The amounts payable shall be as recommended by the
actuaries for the System, based upon the social security law in effect at the
time of the Member's Retirement.
2. The Member, upon electing any option of this Section, will designate the joint
pensioner ("subsection I.B. above) or Beneficiary (or Beneficiaries) to receive the benefit, if any,
payable under the System in the event of Member's death, and will have the power to change
such designation from time to time. Such designation will name a joint pensioner or one (1) or
more primary Beneficiaries where applicable. A Member may change his Beneficiary at any
time. If a Member has elected an option with a joint pensioner and Member's retirement
income benefits have commenced, Member may thereafter change his designated Beneficiary at
any time, but may only change his joint pensioner twice. Subject to the restriction in the
previous sentence, a Member may substitute a new joint pensioner for a deceased joint
pensioner. In the absence of proof of good health of the joint pensioner being replaced, the
actuary will assume that the joint pensioner has deceased for purposes of calculating the new
payment.
3. The consent of a Member's or Retiree's joint pensioner or Beneficiary to any such
change shall not be required. The rights of all previously- designated Beneficiaries to receive
benefits under the System shall thereupon cease.
4. Upon change of a Retiree's joint pensioner in accordance with this Section, the
amount of the retirement income payable to the Retiree shall be actuarially redetermined to take
into account the age of the former joint pensioner, the new joint pensioner and the Retiree and to
ensure that the benefit paid is the Actuarial Equivalent of the present value of the Retiree's
then - current benefit at the time of the change. Any such Retiree shall pay the actuarial
recalculation expenses. Each request for a change will be made in writing on a form prepared
by the Board and on completion will be filed with the Board. In the event that no designated
Beneficiary survives the Retiree, such benefits as are payable in the event of the death of the
Retiree subsequent to his Retirement shall be paid as provided in Section 11.
5. Retirement income payments shall be made under the option elected in
accordance with the provisions of this Section and'shall be subject to the following limitations:
A. If a Member dies prior to his normal retirement date retirement date,
whichever first occurs, no retirement benefit will be payable under the
option to any person, but the benefits, if any, will be determined under
Section 7.
B. If the designated Beneficiary (or Beneficiaries) or joint pensioner dies
before the Member's Retirement under the System, the option elected will
be canceled automatically and a retirement income of the normal form and
amount will be payable to the Member upon his Retirement as if the
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election had not been made, unless a new election is made in accordance
with the provisions of this Section or a new Beneficiary is designated by
the Member prior to his Retirement.
C. If both the Retiree and the Beneficiary (or Beneficiaries) designated by
Member or Retiree die before the full payment has been effected under
any option providing for payments for a period certain and life thereafter,
made pursuant to the provisions of subsection 1, the Board may, in its
discretion, direct that the commuted value of the remaining payments be
paid in a lump sum and in accordance with Section 11.
D. If a Member continues beyond his normal retirement date pursuant to the
provisions of Section 6, subsection 1, and dies prior to his actual retire-
ment and while an option made pursuant to the provisions of this Section
is in effect, monthly retirement income payments will be made, or a retire-
ment benefit will be paid, under the option to a Beneficiary (or
Beneficiaries) designated by the Member in the amount or amounts
computed as if the Member had retired under the option on the date on
which his death occurred.
E. The Member's benefit under this Section must begin to be distributed to
the Member no later than April 1 of the calendar year following the later
of the calendar year in which the Member attains age seventy and one -half
(70' /z) or the calendar year in which the Member terminates employment
with the City.
6. A Retiree may not change his retirement option after the date of cashing or
depositing his first retirement check.
7. Notwithstanding anything herein to the contrary, the Board in its discretion, may
elect to make a lump sum payment to a Member or a Member's Beneficiary in the event that the
total commuted value of the monthly income payments to be paid do not exceed one thousand
dollars ($1,000). Any such payment made to any person pursuant to the power and discretion
conferred upon the Board by the preceding sentence shall operate as a complete discharge of all
obligations under the System with regard to such Member and shall not be subject to review by
anyone, but shall be final, binding and conclusive on all persons.
SECTION 11. BENEFICIARIES
1. Each Member or Retiree may, on a form provided for that purpose, signed and
filed with the Board designate a Beneficiary (or Beneficiaries) to receive the benefit, if any,
which may be payable in the event of his death. Each designation may be revoked or changed
by such Member or Retiree by signing and filing with the Board a new
designation -of- beneficiary form. Upon such change, the rights of all previously designated
Beneficiaries to receive any benefits under the System shall cease.
2. If a deceased Member or Retiree failed to name a Beneficiary in the manner
prescribed in subsection 1, or if the Beneficiary (or Beneficiaries) named by' a deceased Member
or Retiree predeceases the Member or Retiree, the death benefit, if any, which may be payable
under the System with respect to such deceased Member or Retiree, shall be paid to the estate of
the Member or Retiree and the Board, in its discretion, may direct that the commuted value of
the remaining monthly income benefits be paid in a lump sum.
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3. Any payment made to any person pursuant to this Section shall operate as a
complete discharge of all obligations under the System with regard to the deceased Member and
any other persons with rights under the System and shall not be subject to review by anyone but
shall be final, binding and conclusive on all persons ever interested hereunder.
SECTION 12. CLAIMS PROCEDURES
1. The Board shall establish administrative claims procedures to be utilized in
processing written requests ( "claims "), on matters which affect the substantial rights of any
person ( "Claimant "), including Members, Retirees, Beneficiaries, or any person affected by a
decision of the Board.
2. The Board shall have the power to subpoena and require the attendance of
witnesses and the production of documents for discovery prior to and at any proceedings
provided for in the Board's claims procedures. The Claimant may request in writing the
issuance of subpoenas by the Board. A reasonable fee may be charged for the "issuance of any
subpoenas not.to exceed the fees set forth in Florida Statutes.
SECTION 13. REPORTS TO DIVISION OF RETIREMENT
Each year and no later than March 15th, the Board shall file an Annual Report with the
Division of Retirement containing the documents and information required by Section 175.261
or 185.221, Florida Statutes
SECTION 14. ROSTER OF RETIREES.
The Secretary of the Board shall keep a record of all persons enjoying a pension under
the provisions of this ordinance in which it shall be noted the time when the pension is allowed
and when the same shall cease to be paid. Additionally, the Secretary shall keep a record of all
Members in such a manner as to show the name, address, date of employment and date of
termination of employment.
SECTION 15. MAXIMUM PENSION
1. Basic Limitation
Notwithstanding any other provisions of this System to the contrary, the Member
contributions paid to, and retirement benefits paid from, the System shall be limited to such
extent as may be necessary to conform to the requirements of Code Section 41.5 for a qualified
retirement plan. Before January 1, 1995, a plan member may not receive an annual benefit that
exceeds the limits specified 'in Code Section 415(b), subject to the applicable adjustments in that
section. On and after January 1, 1995, a plan member may not receive an annual benefit that
exceeds the dollar amount specified in Code Section 41.5(b)(1)(A) ($160,000), subject to the
applicable adjustments in Code Section 415(b) and subject to any additional limits that may be
specified in this System. For purposes of this Section, "limitation year" shall be the calendar
year.
2. Adjustments to Basic Limitation for Form of Benefit
If the form of benefit without regard to any benefit increase. feature is not a
straight life annuity, then the Code Section 415(b) limit" applicable at the annuity starting date is
reduced to an actuarially equivalent amount (determined using the assumptions specified in
Treasury Regulation Section 1.415(b)- 1(e)(2)(ii)) that takes into account the death benefits under
the form of benefit.
3. Benefits Not Taken into Account
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For purposes of this Section, the following benefits shall not be taken into account
in applying these limits:
A. Any ancillary benefit which is not directly related to retirement income
benefits;
B. Any other benefit not required under §415(b)(2) of the Code and
Regulations thereunder to be taken into account for purposes of the
limitation of Code Section 415(b)(1).
4. COLA Effect
Effective on and after January 1, 2003, for purposes of applying the limits under
Code Section 415(b) (the "Limit "), the following will apply:
A. A Member's applicable limit will be applied to the Member's annual
benefit in the Member's first calendar year of benefit payments without
regard to any automatic cost of living adjustments;
B. thereafter, in any subsequent calendar year, a Member's annual benefit,
including any automatic .cost of living increases, shall be tested under the
then applicable benefit limit including any adjustment to the Code Section
415(b)(1)(A) dollar limit under Code Section 415(d), and the regulations
thereunder; but
C. in no event shall a Member's benefit payable under the System in any
calendar year be greater than the limit applicable at the annuity starting
date, as increased in subsequent years pursuant to Code Section 415(d)
and the regulations thereunder.
Unless otherwise specified in the System, for purposes of applying the limits
under Code Section 415(b), a Member's applicable limit will be applied taking into consideration
cost of living increases as required by Section 415(b) of the Code and applicable Treasury
Regulations.
5. Other Adjustments in Limitations
A. In the event the Member's retirement benefits become payable before age
sixty -two (62), the limit prescribed by this Section shall be reduced in
accordance with regulations issued by the Secretary of the Treasury
pursuant to the provisions of Code Section 415(b) of the Code, so that
such limit (as so reduced) equals an annual straight life benefit (when such
retirement income benefit begins) which is equivalent to a one hundred
sixty thousand dollar ($160,000) annual benefit beginning at age sixty -two
(62).
B. In the event the Member's benefit is based on at least fifteen (15) years of
Credited Service as a full -time employee of the police or fire department
of the City, 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 pursuant to Section 8, or pre - retirement death benefits
paid pursuant to Section 7.
D. In the event the Member's retirement benefit becomes payable after age
sixty -five (65), for purposes of determining whether this benefit meets the
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limit set forth in subsection 1 herein, such benefit shall be adjusted so that
it is actuarially equivalent to the benefit beginning at age sixty -five (65).
This adjustment shall be made in accordance with regulations promulgated
by the Secretary of the Treasury or his delegate.
6. Less than Ten (10) Years of Service
The maximum retirement benefits payable under this Section to any Member who
has completed less than ten (10) years of Credited Service with the City shall be the amount
determined under subsection 1 of this Section multiplied by a fraction, the numerator of which is
the number of the Member's years of Credited Service and the denominator of which is ten (10).
The reduction provided by this subsection cannot reduce the maximum benefit below 10 %.
The reduction provided for in this subsection shall not be applicable to disability benefits paid
pursuant to Section 8, or pre - retirement death benefits paid pursuant to Section 7.
7. Participation in Other Defined Benefit Plans
The limit of this Section with respect to any Member who at any time has been a
member in any other defined benefit plan as defined in Code Section 4140) maintained by the
City shall apply as if the total benefits payable under all City defined benefit plans in which the
Member has been a member were payable from one plan.
8. Ten Thousand Dollar ($10,000) Limit
Notwithstanding the foregoing, the retirement benefit payable with respect to a
Member shall be deemed not to exceed the limit set forth in this Section if the benefits payable,
with respect to such Member under this System and under all other qualified defined benefit
pension plans to which the City contributes, do not exceed ten thousand dollars ($10,000) for the
applicable Plan Year and for any prior Plan Year and the City has not any time maintained a
qualified defined contribution plan in which the Member participated.
9. Reduction of Benefits
Reduction of benefits and /or contributions to all plans, where required, shall be
accomplished by first reducing the Member's benefit under any defined benefit plans in which
Member participated, such reduction to be made first with respect to the plan in which Member
most recently accrued benefits and thereafter in such priority as shall be determined by the Board
and the plan administrator of such other plans, and next, by reducing or allocating excess
forfeitures for defined contribution plans iii which the Member participated, such reduction to be
made first with respect to the plan in which Member most recently accrued benefits and
thereafter in such priority as shall be established by the Board and the plan administrator for such
other plans provided, however, that necessary reductions may be made in a different manner and
priority pursuant to the agreement, of the Board and the plan administrator of all other plans
covering such Member
10. Service Credit Purchase Limits
A. Effective for permissive service credit contributions .made in limitation
years beginning after December 31, 1997, if a Member makes one or more
contributions to purchase permissive service credit under the System, as
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allowed in Section 26 and 27, then the requirements of this Section will be
treated as met only if
(1) the requirements of Code Section 415(b) are met, determined by
treating the accrued benefit derived from all such contributions as
an annual benefit for purposes of Code Section 415(b), or
(2) the requirements of Code Section 415(c) are met, determined by
treating all such contributions as annual additions for purposes of
Code Section 415(c).
(3) For purposes of applying subparagraph (1), the System will not fail
to meet the reduced limit under Code Section 415(b)(2)(c) solely
by reason of this subparagraph (3), and for purposes of applying
subparagraph (2) the System will not fail to meet the percentage
limitation under Section 415(c)(1)(B) of the Code solely by reason
of this subparagraph (3).
B. For purposes of this subsection the term "permissive service credit" means
service credit —
(1) recognized by the System for purposes of calculating a Member's
benefit under the plan,
(2) which such Member has not received under the plan, and
(3) which such Member may receive only by making a voluntary
additional contribution, in an amount determined under the
System, which does not exceed the amount necessary to fund the
benefit attributable to such service credit.
Effective for permissive service credit contributions made in limitation
years beginning after December 31, 1997, such term may, if otherwise
provided by the System, include service credit for periods for which there
is no performance of service, and, notwithstanding clause B.(2), may
include service credited in order to provide an increased benefit for service
credit which a Member is receiving under the System.
C. For purposes of applying the limits in this subsection 10., only and for no
other purpose, the definition of compensation where applicable will be
compensation actually paid or made available during a calendar year,
except as noted below and as permitted by Treasury Regulations Section
1.415(c) -2, or successor regulations. Unless another definition of
compensation that is permitted by Treasury Regulations Section
1.415(c) -2, or successor regulation, is specified by the System,
compensation will be defined as wages within the meaning of Code
Section 3401(a) and all other payments of compensation to an employee
by an employer for which the employer is required to furnish the
employee a written statement under Code Sections 6041(d), 6051(a)(3)
and 6052 and will be determined without regard to any rules under Code
Section 3401(a) that limit the remuneration included in wages based on
the nature or location of the employment or the services performed (such
as the exception for agricultural labor in Code Section 3401(a)(2).
(1) However, for calendar years beginning after December 31, 1997,
compensation will also include amounts that would otherwise be
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included in compensation but for an election under Code Sections
125(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b). For calendar
years beginning after December 31, 2000, compensation will also
include any elective amounts that are not includible in the gross
income of the employee by reason of Code Section 132(f)(4).
(2) For limitation years beginning on and after January 1, 2007,
compensation for the calendar year will also include compensation
paid by the later of 2'/2 months after an employee's severance from
employment or the end of the calendar year that includes the date
of the employee's severance from employment if
(a) the payment is regular compensation for services during the
employee's regular working hours, or compensation for
services outside the employee's regular working hours
(such as overtime or shift differential), commissions,
bonuses or other similar payments, and, absent a severance
from employment, the payments would have been paid to
the employee while the employee continued in employment
with the employer; or
(b) the payment is for unused accrued bona fide sick, vacation
or other leave that the employee would have been able to
use if employment had continued.
(3) Back pay, within the meaning of Treasury Regulations
Section 1.415(c)- 2(g)(8), shall be treated as compensation for the
limitation year to which the back pay relates to the extent the back
pay represents wages and compensation that would otherwise be
included under this definition.
D. Notwithstanding any other provision of law to the contrary, the Board may
modify a request by a Member to make a contribution to the System if the
amount of the contribution would exceed the limits provided in Code
Section 415 by using the following methods:
(1) If the law requires a lump sum payment for the purchase of service
credit, the Board may establish a periodic payment deduction plan
for the Member to avoid a contribution in excess of the limits
under Code Sections 415(c) or 415(n).
(2) If payment pursuant to subparagraph (1) will not avoid a
contribution in excess of the limits imposed by Code Section
415(c), the Board may either reduce the Member's contribution to
an amount within the limits of that section or refuse the Member's
contribution.
11. Additional Limitation on Pension Benefits
Notwithstanding anything herein to the contrary:
A. The normal retirement benefit or pension payable to a Retiree who
becomes a Member of the System and who has not previously participated
in such System, on or after January 1, 1980, shall not exceed one hundred
percent (100 %) of his Average Final Compensation. However, nothing
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contained in this Section shall apply to supplemental retirement benefits or
to pension increases attributable to cost -of- living increases or adjustments.
B. No Member of the System shall be allowed to receive a retirement benefit
or pension which is in part or in whole based upon any service with
respect to which the Member is already receiving, or will receive in the
future, a retirement benefit or pension from a different employer's
retirement system or plan. This restriction does not apply to social
security benefits or federal benefits under Chapter 67, Title 10, U.S. Code.
SECTION 16. MINIMUM DISTRIBITI`I ®N OF BENEFI'T'S
1. G eneral Rules
A. Effective Date Effective as of January 1, 1989, the Plan will pay all
benefits in accordance with a good faith interpretation of the requirements
of Code Section 401(x)(9) and the regulations in effect under that section,
as applicable to a governmental plan within the meaning of Code Section
414(d). Effective on and after January 1, 2003, the Plan is also subject to
the specific provisions contained in this Section. The provisions of this
Section will apply for purposes of determining required minimum
distributions for calendar years beginning with the 2003 calendar year.
B. Precedence The requirements of this Section will take precedence over
any inconsistent provisions of the Plan.
C. TEFRA Section 242(b)(2) Elections Notwithstanding the other
provisions of this Section other than this subsection 1.C., distributions
may be made under a designation made before January 1, 1984, in
accordance with Section 242(b)(2) of the Tax Equity and Fiscal
Responsibility Act ( TEFRA) and the provisions of the plan that related to
Section 242(b)(2) of TEFRA.
2. T ime and Manner of Distribution
A. Required Beginning Date The Member's entire interest will be
distributed, or begin to be distributed, to the Member no later than the
Member's required beginning date which shall not be later than April 1 of
the calendar year following the later of the calendar year in which the
Member attains age seventy and one -half (70 %2) or the calendar year in
which the Member terminates employment with the City.
B. Death of Member Before Distributions Begin If the Member dies before
distributions begin, the Member's entire interest will be distributed, or
begin to be distributed no later than as follows:
(1) If the Member's surviving spouse is the Member's sole designated
beneficiary, then distributions to the surviving spouse will begin by
December 31 of the calendar year immediately following the
calendar year in which the Member died, or by a date on or before
December 31 of the calendar year in which the Member would
have attained age 70 %2, if later, as the surviving spouse elects.
(2) If the Member's surviving spouse is not the Member's sole
designated beneficiary, then, distributions to the designated
beneficiary will begin by December 31 of the calendar year
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immediately following the calendar year in which the Member
died.
(3) If there is no designated beneficiary as of September 30 of the year
following the year of the Member's death, the Member's entire
interest will be distributed by December 31 of the calendar year
containing the fifth anniversary of the Member's death.
(4) If the Member's surviving spouse is the Member's sole designated
beneficiary and the surviving spouse dies after the Member but
before distributions to the surviving spouse begin, this subsection
2.B., other than subsection 2.13.(1), will apply as if the surviving
spouse were the Member.
For purposes of this subsection 2.13., distributions are considered to
begin on the Member's required beginning date or, if subsection
2.B.(4) applies, the date of distributions are required to begin to the
surviving spouse under subsection 2.13.(1). If annuity payments
irrevocably cormmence to the Member before the Member's
required beginning date (or to the Member's surviving spouse
before the date distributions are required to begin to the surviving
spouse under subsection 2.13.(1)), the date distributions are
considered to begin is the date distributions actually commence.
C. Death After Distributions Begin If the Member dies after the required
distribution of benefits has begun, the remaining portion of the Member's
interest must be distributed at least as rapidly as under the method of
distribution before the Member's death.
I
D. Form of Distribution Unless the Member's interest is distributed in the
form of an annuity purchased from an insurance company or in a single
sum on or before the required beginning date, as of the first distribution
calendar year distributions will be made in accordance with this Section.
If the Member's interest is distributed in the form of an annuity purchased
from an insurance company, distributions thereunder will be made in
accordance with the requirements of Section 401(a)(9) of the Code and
Treasury regulations. Any part of the Member's interest which is in the
form of an individual account described in Section 414(k) of the Code will
be distributed in a manner satisfying the requirements of Section 401(a)(9)
of the Code and Treasury regulations that apply to individual accounts.
3. Determination of Amount to be Distributed Each Year
A. General Requirements If the Member's interest is paid in the form of
annuity distributions under the Plan, payments under the annuity will
satisfy the following requirements:
(1) The annuity distributions will be paid in periodic payments made
at intervals not longer than one year.
.(2) The Member's entire interest must be distributed pursuant to
Section 6, Section 7, Section 9, or Section 10 (as applicable) and in
any event over a period equal to or less than the Member's life or
the lives of the Member and a designated beneficiary, or over a
period not extending beyond the life expectancy of the Member or
of the Member and a designated beneficiary. The life expectancy
of the Member, the Member's spouse, or the Member's beneficiary
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may not be recalculated after the initial determination for purposes
of determining benefits.
B. Amount Required to be Distributed by Required Beginning Date The
amount that must be distributed on or before the Member's required
beginning date (or, if the Member dies before distributions begin, the date
distributions are required to begin under Section 7 ) is the payment that is
required for one payment interval. The second payment need not be
made until the end of the next payment interval even if that payment
interval ends in the next calendar year. Payment intervals are the periods
for which payments are received, e.g., monthly. All of the Member's
benefit accruals as of the last day of the first distribution calendar year will
be included in the calculation of the amount of the annuity payments for
payment intervals ending on or after the Member's required beginning
date.
C. Additional Accruals After First Distribution Calendar Year Any
additional benefits accruing to the Member in a calendar year after the first
distribution calendar year will be distributed beginning with the first
payment interval ending in the calendar year immediately following the
calendar year in which such amount accrues.
4. G eneral Distribution Rules
A. The amount of an annuity paid to a Member's beneficiary may not exceed
the maximum determined under the incidental death benefit requirement
of Code Section 401(a)(9)(G), and effective for any annuity commencing
on or after January 1, 2008, the minimum distribution incidental benefit
rule under Treasury Regulation Section 1.401(a)(9) -6, Q &A -2.
B. The death and disability benefits provided by the Plan are limited by the
incidental benefit rule set forth in Code Section 401(a)(9)(G) and Treasury
Regulation Section 1.401- 1(b)(1)(I) or any successor regulation thereto.
As a result, the total death or disability benefits payable may not exceed
25% of the cost for all of the Members' benefits received from the
retirement system.
5. D efinitions
A. Designated Beneficiary The individual who is designated as the
beneficiary under the Plan and is the designated beneficiary under Section
401(a)(9) of the Code and Section 1.401(a)(9) -1, Q &A -4, of the Treasury
regulations.
13. Distribution Calendar Year A calendar year for which a minimum
distribution is required. For distributions beginning before the Member's
death, the first distribution calendar year is the calendar year immediately
preceding the calendar year which contains the Member's required
beginning date. For distributions beginning after the Member's death, the
first distribution calendar year is the calendar year in which distributions
are required to begin pursuant to Section 7.
SECTION 17. MISCELLANEOUS PROVISIONS
1. Interest of Members in System
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All assets of the Fund are held in trust, and at no time prior to the satisfaction of
all liabilities under the System with respect to Retirees and Members and their Spouses or
Beneficiaries, shall any part of the corpus or income of the Fund be used for or diverted to any
purpose other than for their exclusive benefit.
2. No Reduction of Accrued Benefits
No amendment or ordinance shall be adopted by the City Commission of the City
of City of Longwood which shall have the effect of reducing the then vested accrued benefits
of Members or a Member's Beneficiaries.
3. Qualification of System
It is intended that the System will constitute a qualified public pension plan under
the applicable provisions of the Code for a qualified plan under Code Section 401(x) and a
governmental plan under Code Section 414(d), as now in effect or hereafter amended. Any
modification or amendment of the System may be made retroactively, if necessary or
appropriate, to qualify or maintain the System as a Plan meeting the requirements of the
applicable provisions of the Code as now in effect or hereafter amended, or any other applicable
provisions of the U.S. federal tax laws, as now in effect or hereafter amended or adopted, and the
regulations issued thereunder.
4. Use of Forfeitures
Forfeitures arising from terminations of service of Members shall serve only to
reduce future City contributions.
5. Prohibited Transactions
Effective as of January 1, 1989, a Board may not engage in a transaction
prohibited by Code Section 503(b).
6. USERRA
Effective December 12, 1994, notwithstanding any other provision of this System,
contributions, benefits and service credit with respect to qualified military service are governed
by Code Section 414(u) and the Uniformed Services Employment and Reemployment Rights Act
of 1994, as amended. To the extent that the definition of "Credited Service" sets forth
contribution requirements that are more favorable to the Member than the minimum compliance
requirements, the more favorable provisions shall apply.
7. Vesting
A. Member will be 100% vested in all benefits upon attainment of the Plan's
age and service requirements for the Plan's normal retirement benefit; and
B. A Member will be 100% vested in all accrued benefits, to the extent
funded, if the Plan is terminated or experiences a complete discontinuance
of employer contributions.
8. Electronic Forms
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In those circumstances where a written election or consent is not required by the
Plan or the Code, an oral, electronic, or telephonic form in lieu of or in addition to a written form
may be prescribed by the Board. However, where applicable, the Board shall comply with
Treas. Reg. § 1.401(a) -21.
9. Comp liance with Chapter 175 or 185, Florida Statutes.
It is intended that the System will continue to qualify for funding under Section
175.101 or 185.08, Florida Statutes Accordingly, unless otherwise required by law, any
provision of the System which violates the requirements of Chapter 175 or 185, Florida Statutes
as amended from time to time, shall be superseded by and administered in accordance with the
requirements of such chapter.
SECTION 18. REPEAL OR TERMINATION OF SYSTEM
1. This ordinance establishing the System and Fund, and subsequent ordinances
pertaining to said System and Fund, may be modified, terminated, or amended, in whole or in
part; provided that if this or any subsequent ordinance shall be amended or repealed in its
application to any person benefitting hereunder, the amount of benefits which at the time of any
such alteration, amendment, or repeal shall have accrued to the Member or Beneficiary shall not
be affected thereby.
2. If this ordinance shall be repealed, or if contributions to the System are
discontinued or if there is a transfer, merger or consolidation of government units, services or
functions as provided in Chapter 121, Florida Statutes the Board shall continue to administer the
System in accordance with the provisions of this ordinance, for the sole benefit of the then
Members, any Beneficiaries then receiving retirement allowances, and any future persons
entitled to receive benefits under one of the options provided for in this ordinance who are
designated by any of said Members. In the event of repeal, discontinuance of contributions, or
transfer, merger or consolidation of government units, services or functions, there shall be frill
vesting (100 %) of benefits accrued to date of repeal and such benefits shall be nonforfeitable.
3. The fund shall be distributed in accordance with the following procedures:
A. The Board shall determine the date of distribution and the asset value
required to fund all the nonforfeitable benefits after taking into account the
expenses of such distribution. The Board shall inform the City if
additional assets are required, in which event the City shall continue to
financially support the Plan until all nonforfeitable benefits have been
funded.
B. The Board shall determine the method of distribution of the asset value,
whether distribution shall be by payment in cash, by the maintenance of
another or substituted trust fund, by the purchase of insured annuities, or
otherwise, for each Police Officer or Firefighter entitled to benefits under
the plan as specified in subsection C.
C. The Board shall distribute the asset value as of the date of termination in
the manner set forth in this subsection, on the basis that the amount
required to provide any given retirement income is the actuarially
computed single -sum value of such retirement income, except that if the
method of distribution determined under subsection B. involves the
purchase of an insured annuity, the amount required to provide the given
retirement income is the single premium payable for such annuity. The
actuarial single -sum value may not be less than the Police Officer's or
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Firefighter's Accumulated Contributions to the Plan, with interest if
provided by the Plan, less the value of any plan benefits previously paid to
the Police Officer or Firefighter.
D. If there is asset value remaining after the full distribution specified in
subsection C., and after the payment of any expenses incurred with such
distribution, such excess shall be returned to the City, less return to the
State of the State's contributions,, provided that, if the excess is less than
the total contributions made by the City and the State to date of
termination of the Plan, such excess shall be divided proportionately to the
total contributions made by the City and the State.
E. The Board shall distribute, in accordance with subsection B., the amounts
determined under subsection C.
If, after twenty -four (24) months after the date the Plan terminated or the date the Board
received written notice that the contributions thereunder were being permanently discontinued,
the City or the Board of the Fund affected has not complied with all the provisions in this
Section, the Florida Department of Management Services will effect the termination of the Fund
in accordance with this Section.
SECTION 19. DOMESTIC RELATIONS ORDERS; RETIREE DIRECTED
PAYMENTS; EXEMPTION FROM EXECUTION AND NON - ASSIGNABILITY
1. Domestic Relations Orders.
A. Prior to the entry of any domestic relations order which affects or purports
to affect the System's responsibility in connection with the payment of
benefits of a Retiree, the Member or Retiree shall submit the proposed
order to the Board for review to determine whether the System may
legally honor the order.
B. If a domestic relations order is not submitted to the Board for review prior
to entry of the order, and the System is ordered to take action that it may
not legally take, and the System expends administrative or legal fees in
resolving the matter, the Member or Retiree who submits such an order
will be required to reimburse the System for its expenses in connection
with the, order.
2. Retiree Directed Payments
The Board may, upon written request by a Retiree or by a dependent, when
authorized by a Retiree or the Retiree's Beneficiary, authorize the System to withhold from the
monthly retirement payment those funds that are necessary to pay for the benefits being received
through the City, to pay the certified bargaining agent of the City, to make payment to
insurance companies for insurance premiums as permitted by Chapters 175 and 185, Florida
Statutes and to make any payments for child support or alimony.
3. Exemption from Execution, Non-Assignability
Except as otherwise provided by law, the pensions, annuities, or any other
benefits accrued or accruing to any person under the provisions of this ordinance /resolution and
the Accumulated Contributions and the cash securities in the Fund created under this
ordinance /resolution are hereby exempted from any state, county or municipal tax and shall not
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be subject to execution, attachment, garnishment or any legal process whatsoever and shall be
unassignable.
SECTION 20. PENSION VAILIIIITY
The Board shall have the power to examine into the facts upon which any pension shall
heretofore have been granted under any prior or existing law, or shall hereafter be granted or
obtained erroneously, fraudulently or illegally for any reason. The Board is empowered to
purge the pension rolls or correct the pension amount of any person heretofore granted a pension
under prior or existing law or any person hereafter granted a pension under this ordnance if the
same is found to be erroneous, fraudulent or illegal for any reason; and to reclassify any person
who has heretofore under any prior or existing law been or who shall hereafter under this
ordinance be erroneously, improperly or illegally classified. Any overpayments or
underpayments shall be corrected and paid or repaid in a reasonable manner determined by the
Board.
SECTION 21. FORFEITURE OF PENSION
1. Any Member who is convicted of the following offenses committed prior to
Retirement, or whose employment is terminated by reason of his admitted commission, aid or
abetment of the following specified offenses, shall forfeit all rights and benefits under this
System, except for the return of his accumulated contributions as of the date of termination.
Specified offenses are as follows:
A. The committing, aiding or abetting of an embezzlement of public funds;
B. The committing, aiding or abetting of any theft by a public officer or
employee from employer;
C. Bribery in connection with the employment of a public officer or
employee;
D. Any felony specified in Chapter 838, Florida Statutes
E. The committing of an impeachable offense;
F. The committing of any felony by a public officer or employee who
willfully and with intent to defraud the public or the public agency, for
which he acts or in which he is employed, of the right to receive the
faithful performance of his duty as a public officer or employee, realizes
or obtains or attempts to obtain a profit, gain, or advantage for himself or
for some other person through the use or attempted use of the power,
rights, privileges, duties or position of his public office or employment
position; or
(J. The committing on or after October 1, 2008, of any felony defined in
Section 800.04, Florida Statutes against a victim younger than sixteen
(16) years of age, or any felony defined in Chapter 794, Florida Statutes
against a victim younger than eighteen (18) years of age, by a public
officer or employee through the use or attempted use of power, rights,
privileges, duties, or position of his or her public office or employment
position.
2. Conviction shall be defined as an adjudication of guilt by a court of competent
jurisdiction; a plea of guilty or a nolo contendere; a jury verdict of guilty when adjudication of
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guilt is withheld and the accused is placed on probation; or a conviction by the Senate of an
impeachable offense.
3. Court shall be defined as any state or federal court of competent jurisdiction
which is exercising its jurisdiction to consider a proceeding involving the alleged commission of
a specified offense. Prior to forfeiture, the Board shall hold a hearing on which notice shall be
given to the Member whose benefits are being considered for forfeiture. Said Member shall be
afforded the right to have an attorney present. No formal rules of evidence shall apply, but the
Member shall be afforded a full opportunity to present his case against forfeiture.
4. Any Member who has received benefits from the System in excess of his
Accumulated Contributions after Member's rights were forfeited shall be required to pay back to
the Fund the amount of the benefits received in excess of his Accumulated Contributions. The
Board may implement all legal action necessary to recover such funds.
SECTION 22. CONVICTION AND FORFEITURE, FALSE. MISLEADING OR
FRAUDULENT STATEMENTS
1. It is unlawful for a person to willfully and knowingly make, or cause to be made,
or to assist, conspire with, or urge another to make, or cause to be made, any false, fraudulent, or
misleading oral or written statement or withhold or conceal material information to obtain any
benefit from the System.
2. A person who violates subsection 1 commits a misdemeanor of the first degree,
punishable as provided in Section 775.082 or Section 775.083, Florida Statutes
3. In addition to any applicable criminal penalty, upon conviction for a violation
described in subsection 1, a Member or Beneficiary of the System may, in the discretion of the
Board, be required to forfeit the right to receive any or all benefits to which the person would
otherwise be entitled under the System. For purposes of this subsection, "conviction" means a
determination of guilt that is the result of a plea or trial, regardless of whether adjudication is
withheld.
SECTION 23. INDEMNIFICATI ®N
1. To the extent not covered by insurance contracts in force from time to time, the
City shall indemnify, defend and hold harmless members of the Board from all personal liability
for damages and costs, including court costs and attorneys' fees, arising out of claims, suits,
litigation, or threat of same, herein referred to as "claims ", against these individuals because of
acts or circumstances connected with or arising out of their official duty as members of the
Board. The City reserves the right, in its sole discretion, to settle or not settle the claim at any
time, and to appeal or to not appeal from any adverse judgment or ruling, and in either event will
indemnify, defend and hold harmless any members of the Board from the judgment, execution,
or levy thereon.
2. This Section shall not be construed so as to relieve any insurance company or
other entity liable to defend the claim or liable for payment of the judgment or claim, from any
liability, nor does this Section waive any provision of law affording the City immunity from any
suit in whole or part, or waive any other substantive or procedural rights the City may have.
3. This Section shall not apply nor shall the City be responsible in any manner to
defend or pay for claims arising out of acts or omissions of members of the Board which
constitute felonies or gross malfeasance or gross misfeasance in office.
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SEC'T'ION 24. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER
DISTRIBUTIONS; ELIMINATION OF MANDATORY
DISTRIBUTIONS.
1. R ollover Distributions
A. General
This Section applies to distributions made on or after January 1, 2002.
Notwithstanding any provision of the System to the contrary that would
otherwise limit a distributee's election tinder this Section, a distributee
may elect, at the time and in the manner prescribed by the Board, to have
any portion of an eligible rollover distribution paid directly to an eligible
retirement plan specified by the distributee in a direct rollover.
B. Definitions
(1) Eligible Rollover Distribution An eligible rollover distribution is
any distribution of all or any portion of the balance to the credit of
the distributee, except that an eligible rollover distribution does not
include: any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually) made
for the life (or life expectancy) of the distributee or the joint lives
(or joint life expectancies) of the distributee and the distributee's
designated Beneficiary, or for a specified period of ten. (10) years
or more; any distribution to the extent such distribution is required
under section 401(a)(9) of the Code and the portion of any
distribution that is not includible in gross income. Effective
January 1, 2002, any portion of any distribution which would be
includible in gross income as after -tax employee contributions will
be an eligible rollover distribution if the distribution is made to an
individual retirement account described in section 408(a); to an
individual retirement annuity described in section 408(b); to a
qualified defined contribution plan described in section 401(a) or
403(a) that agrees to separately account for amounts so transferred
(and earnings thereon), including separately accounting for the
portion of such distribution which is includible in gross income
and the portion of such distribution which is not so includible; or
on or after January 1, 2007, to a qualified defined benefit plan
described in Code Section 401(a) or to an annuity contract
described in Code Section 403(b), that agrees to separately account
for amounts so transferred (and earnings thereon), including
separately accounting for the portion of the distribution that is
includible in gross income and the portion of the distribution that is
not so includible.
(2) Eligible Retirement Plan An eligible retirement plan is an
individual retirement account described in section 408(a) of the
Code; an individual retirement annuity described in section 408(b)
of the Code; an annuity plan described in section 403(a) of the
Code; effective January 1, 2002, an eligible deferred compensation
plan described in section 457(b) of the Code which is maintained
by an eligible employer described in section 457(e)(1)(A) of the
Code and which agrees to separately account for amounts
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transferred into such plan from this plan; effective January 1, 2002,
an annuity contract described in section 403(b) of the Code; a
qualified trust described in section 401(a) of the Code; or effective
January 1, 2008, a Roth IRA described in Section 408A of the
Code, that accepts the distributee's eligible rollover distribution.
This definition shall apply in the case of an eligible rollover
distribution to the surviving Spouse.
(3) Distributee A distributee includes an employee or former
employee. It also includes the employee's or former employee's
surviving spouse and the employee's or former employee's spouse
or former spouse. Effective January 1, 2007, it further includes a
nonspouse beneficiary who is a designated beneficiary as defined
by Code Section 401(a)(9)(E). However, a nonspouse beneficiary
may rollover the distribution only to an individual retirement
account or individual retirement annuity established for the
purpose of receiving the distribution and the account or annuity
will be treated as an "inherited" individual retirement account or
annuity
(4) Direct Rollover A direct rollover is a payment by the plan to the
eligible retirement plan specified by the distributee.
2. Rollovers or Transfers into the Fund
On or after January 1, 2002, the System will accept, solely for the purpose of
purchasing Credited Service as provided herein, permissible Member requested transfers of
funds from other retirement or pension plans, Member rollover cash contributions and /or direct
cash rollovers of distributions made on or after January 1, 2002, as follows:
A. Transfers and Direct Rollovers or Member Rollover Contributions from
Other Plans The System will accept either a direct rollover of an eligible
rollover distribution or a Member contribution of an eligible rollover
distribution from a qualified plan described in section 401(a) or 403(a) of
the Code, from an annuity contract described in section 403(b) of the Code
or fiom an eligible plan under section 457(b) of the Code which is
maintained by a state, political subdivision of a state, or any agency or
instrumentality of a state or political subdivision of a state. The System
will also accept legally permissible Member requested transfers of funds
from other retirement or pension plans.
B. Member Rollover Contributions from IRAs The system will accept a
Member rollover contribution of the portion of a distribution from an
individual retirement account or annuity described in section 408(a) or
408(b) of the Code that is eligible to be rolled over.
3. Elimination of Mandatory Distributions.
Notwithstanding any other provision herein to the contrary, in the event this Plan
provides for a mandatory (involuntary) cash distribution from the Plan not otherwise required by
law, for an amount in excess of one - thousand dollars ($1,000.00), such distribution shall be made
fiom the Plan only upon written request of the Member and completion by the Member of a
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written election on forms designated by the Board, to either receive a cash lump sum or to
rollover the lump stun amount.
SECTIO 25. FAMILY AND MEDICAL LEAVE ACT.
The fractional parts of the twelve (12) month period ending each March 1 that a Member
is on leave without pay from the City pursuant to the Family and Medical Leave Act (FMLA)
shall be added to his Credited Service provided that:
1. The Member contributes to the Fund the sum that he would have contributed,
based. on his Salary and the Member contribution rate in effect at the time that the Credited
Service is requested, had he been a Member of the System for the years or fractional parts of
years for which he is requesting credit plus amounts actuarially determined such that the
crediting of service does not result in any cost to the Fund plus payment of costs for all
professional services rendered to the Board in connection with the purchase of years of Credited
Service.
2. The request for Credited Service for FMLA leave time for the twelve (12) month
period prior to each March 1 and payment of professional fees shall be made on or before March
31.
3. Payment by the Member of the required amount shall be made on or before April
30 for the preceding twelve (12) month period ending March 1 and shall be made in one (1) lump
sum payment upon receipt of which Credited Service shall be issued.
4. Credited Service purchased pursuant to this Section shall not count toward
vesting.
SECTION 26. MILITARY SERVICE PRIOR TO EMPLOYMENT
The time that a Police Officer or Firefighter serves or has served on active duty in the
military service of the Armed Forces of the United States, the United States Merchant Marine or
the United States Coast Guard, voluntarily or involuntarily and honorably or under honorable
conditions, prior to first and initial employment with the City Police Department or Fire
Department shall be added to his years of Credited Service provided that:
1. The Member contributes to the Fund the sum that he would have contributed,
based on his Salary and the Member contribution rate in effect at the time that the Credited
Service is requested, had he been a Member of the System for the time for which he is requesting
credit plus amounts actuarially determined such that the crediting of service does not result in
any cost to the Fund plus payment of costs for all professional services rendered to the Board in
connection with the purchase of years of Credited Service.
2. Multiple requests to purchase Credited Service pursuant to this Section may be
made at any time prior to Retirement.
3. Payment by the Member of the required amount shall be made within six (6)
months of his request for credit, but not later than the retirement date, and shall be made in one
(1) lump sum payment upon receipt of which Credited Service shall be given.
4. The maximum credit under this Section, when combined with Credited Service
purchased for prior police or firefighter service with an employer other than the City of
Longwood shall be five (5) years.
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5. Credited Service purchased pursuant to this Section shall count for all purposes,
except vesting and eligibility for not -in -line of duty disability benefits.
SECTION 27. PRIOR POLICE OR FIRE SERVICE.
Unless otherwise prohibited by law, and except as provided for in Section 1, the time that
a Member previously served as a full -time Police Officer or Firefighter with the City during a
period of previous employment and for which period Accumulated Contributions were
withdrawn from the Fund, or the time that a Member served as a Police Officer for any other
municipal, county or state law enforcement department or as a Firefighter for any other
municipal, county, state or special district fire department in the State of Florida shall be added
to his years of Credited Service provided that:
1. The Member contributes to the Fund the sum that he would have contributed,
based on his Salary and the Member contribution rate in effect at the time that the
Credited Service is requested, had he been a Member of the System for the time
for which he is requesting credit plus amounts actuarially determined such that the
crediting of service does not result in any cost to the Fund plus payment of costs
for all professional services rendered to the Board in connection with the purchase
of years of Credited Service.
2. Multiple requests to purchase Credited Service pursuant to this Section may be
made at any time prior to Retirement.
3. Payment by the Member of the required amount shall be made within six (6)
months of his request for credit, but not later than the retirement date, and shall be
made in one (1) lump sum payment upon receipt of which Credited Service shall
be given.
4. The maximum credit under this Section for service other than with the City of
Longwood when combined with Credited Service purchased for Military Service
Prior to Employment shall be five (5) years of Credited Service and shall count
for all purposes, except vesting and eligibility for not -in -line of duty disability
benefits. There shall be no maximum purchase of credit for prior service with
the City of Longwood and such credit shall count for all purposes, including
vesting.
5. In no event, however, may Credited Service be purchased pursuant to this Section
for prior service with any other municipal, county or state law enforcement
department or special district fire department, if such prior service forms or will
form the basis of a retirement benefit or pension from a different employer's
retirement system or plan as set forth in Section 15, subsection I I.B.
6. For purposes of determining credit for prior service as a Firefighter as provided
for in this Section, in addition to service as a Firefighter in this State, credit may
be given for federal, other state, county, or municipal service if the prior service is
recognized by the Division of State Fire Marshal, as provided under Chapter 633,
Florida Statutes, or the Firefighter provides proof to the Board that his service is
equivalent to the service required to meet the definition of a Firefighter under
Section 1.
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7. For purposes of determining credit for prior service as a Police Officer as
provided for in this Section, in addition to service as a Police Officer in this State,
credit may be given for federal, other state, county, or municipal service if the
prior service is recognized by the Criminal Justice Standards and Training
Commission within the Department of Law Enforcement, as provided under
Chapter 943, Florida Statutes, or the Police Officer provides proof to the Board
that such service is equivalent to the service required to meet the definition of a
Police Officer under Section 1.
SECTION 28. REEMPLOYMENT AFTER RETIREMENT.
1. Any Retiree who is retired under this System, except for disability retirement as
previously provided for, may be reemployed by any public or private employer, except the City,
and may receive compensation fiom that employment without limiting or restricting in any way
the retirement benefits payable under this System. Reemployment by the City shall be subject
to the limitations set forth in this Section.
2. A fter Normal Retirement Any Retiree who is retired under normal retirement
pursuant to this System and who is reemployed as a Police Officer or Firefighter after that
Retirement and, by virtue of that reemployment, is eligible to participate in this System, shall
upon being reemployed discontinue receipt of benefits. Upon reemployment, the Retiree
shall be deemed to be fully vested and the additional Credited Service accrued during the
subsequent employment period shall be used in computing a second benefit amount attributable
to the subsequent employment period, which benefit amount shall be added to the benefit
determined upon the initial retirement to determine the total benefit payable upon final
Retirement. Calculations of benefits upon Retirement shall be based upon the benefit accrual
rate, Average Final Compensation, and Credited Service as of that date and the retirement benefit
amount for any subsequent employment period shall be based upon the benefit accrual rate,
Average Final Compensation (based only on the subsequent employment period), and Credited
Service as of the date of subsequent retirement The amount of any death or disability benefit
received as a result of a subsequent period of employment shall be reduced by the amount of
accrued benefit eligible to be paid for a prior period of employment. The optional form of
benefit and any joint pensioner selected upon initial retirement shall not be subject to change
upon subsequent retirement except as otherwise provided herein, but the Member may select a
different optional form and joint pensioner applicable to the subsequent retirement benefit.
3. Any Retiree who is retired under normal retirement pursuant to this System and
who is reemployed by the City after that Retirement and, by virtue of that reemployment is
ineligible to participate in this System, shall, during the period of such reemployment, continue
receipt of benefits during any subsequent employment period.
4. R eemployment of Terminated Vested Persons Reemployed terminated vested
persons shall not be subject to the provisions of this Section until such time as they begin to
actually receive benefits. Upon receipt of benefits, terminated vested persons shall be treated as
normal Retirees for purposes of applying the provisions of this Section and their status as a
normal Retiree shall be determined by the date they elect to begin to receive their benefit.
SECTION 29. DEFINED RETIREMENT ACCUMULATION GROUP
OBLIGATION FUND (DRAGO)
A Member's normal retirement benefit shall be supplemented at the time of Retirement
with the amount attributable to the Member in the Defined Retirement Accumulation Group
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Obligation Fund ( "Obligation "). To be eligible for this supplementary nonnal retirement
benefit, a Member must have reached normal retirement age (minimum of (i) age 50 and 10
years of Credited Service, or (ii) 25 years of Credited Service) in the active service of the City as
a Police Officer or Firefighter. In order to compute a Member's Obligation benefit upon
Retirement, at the end of each Plan Year, the number of years of Credited Service (including
fractional parts) will be determined for the Members as a whole. In the year a Member who is
eligible for an Obligation supplemental retirement benefit terminates service due to normal
retirement, a calculation of his Credited Service shall be determined as of the beginning of the
Plan Year. The retiring Member's Obligation supplementary retirement benefit shall be
determined by dividing the Member's Credited Service as of the beginning of his final Plan Year
of employment so calculated, by the total number of years of Credited Service for all plan
Members as calculated for the end of the prior Plan Year, and multiplying the resulting fraction
by the amount which is in the Obligation Fund at the beginning of the Plan Year of the Member's
final year of employment. However, notwithstanding anything to the contrary, the Member's
supplemental retirement benefit shall not be more than 2.5 multiplied by the Member's annual
normal retirement benefit based on the normal form.
The Obligation supplemental retirement benefit shall be funded by the State premium tax
monies in excess of the base amount as defined in Florida Law 99 -01 and increased by the cost
of plan amendments enacted after January 1, 1998 (constituting the "Obligation Fund ") annually.
The value of the Obligation as of October 1, 2002 shall be $302,812.00, which is equal to the
value of the cumulative balance of additional premium tax revenues that are remaining to be
used to provide future minimum or "extra benefit" improvements. The Obligation contributions
received for each Plan Year shall be allocated interest at the interest rate specified in the most
recent actuarial valuation of the Plan. The value of the Obligation Fund will be determined at
the end of each Plan Year and the determination of the value for the previous year will be used to
calculate supplemental retirement benefits for any Member eligible for such benefits for the
following Plan Year. A Member's Obligation benefit shall be paid in a lump sum as soon as
practicable following the Member's Retirement, subject to Section 24., Direct Transfers of
Eligible Rollover Distributions; Elimination of Mandatory Distributions.
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