2012-29 FLORIDA MUNICIPAL PENSION TRUST FUND
DEFINED BFNEFIT PLAN AND TRUST
ADOPTION AGREEMENT
The undersigned Employer adopts the Florida Municipal Pension Trust Fund Defined
Benefit Plan and Trust for those Employees who shall qualify as Participants hereunder,
to be known as the Retirement Plan and Trust for the Police Officers of the City of
Clermont
It shall be effective as of the date specified below. The Employer hereby selects the
following Plan specifications:
EMPLOYER INFORMATION
Employer: City of Clermont
Contact Name and Title: Joseph Van Zile,
Administrative Services Director
Address: P. O. Box 120219
Clermont, FL 34712 -0219
Telephone: 352 - 241 -7367
Fax: 352 - 394 -4082
E -Mail: jvanzile @clermontfl.org
NAME AND ADDRESS OF TRUSTEE:
Florida Municipal Pension Trust Fund
301 S. Bronough St., Suite 300
P.O. Box 1757
Tallahassee, FL 32302 -1757
TEL: (850)222 -9684 Fax: (850)222 -3806
LOCATION OF EMPLOYER'S PRINCIPAL OFFICE:
The Employer is located in the State of Florida
and this Trust shall be enforced and construed
under the laws of the State of Florida.
EMPLOYER FISCAL YEAR:
Twelve months commencing on October 1st and ending on September 30th.
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Adoption Agreement for the Retirement Plan & Trust for The Police Officers of the City of
Clermont
A. PLAN INFORMATION
This Adoption Agreement shall establish a Plan and Trust with the
following provisions:
Al) Plan Inception Date:
December 20, 1960
A2) Current Amendment Date
May 8, 2012
A3) Plan Year (12 consecutive month period):
Beginning October 1 and Ending September 30
A4) Plan Anniversary Date (Annual Valuation Date):
October 1
A5) Name of Plan Administrator:
Florida Municipal Pension Trust Fund
301 S. Bronough St.
Post Office Box 1757
Tallahassee, Florida 32302 -1757
Tel: (850) 222 -9684 Fax: (850) 222 -3806
A6) Florida Municipal Pension Trust Fund I.D. Number:
59- 2961075
A7) Florida Municipal Pension Trust Funds' Agent for Legal Process:
Florida League of Cities, Inc.
301 South Bronough St., P.O. Box 1757
Tallahassee, FL 32302 -1757
Tef: (850) 222 -9684 Fax: (850) 222 -3806
B. PLAN
This plan represents the full -time Police Officers of the City of Clermont.
C. ELIGIBILITY
All full -time Police officers of the City of Clermont are eligible to participate in this plan
immediately when hired. (Statutory requirement for Plans operating under Chapters 185, Fl Stat)
D. SALARY
Shall mean the total cash remuneration paid to a Police Officer for services rendered,
but not including any payments for extra duty or special detail work performed on
behalf of a second party employer. The amount of annual overtime compensation
that may be included in the calculation of the participant's retirement benefit shall be
limited to the first three hundred (300) hours of overtime paid per calendar year. The
remuneration paid a Police Officer by the employer for a plan year excludes bonuses.
The amount of the accrued unused sick or annual leave payment at retirement that
may be included in the calculation of th,e participant's retirement benefit shall be the
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Adoption Agreement for the Retirement Plan & Trust for The Police Officers of the City of
Clermont
lesser of (a) the total value of accrued unused sick or annual leave that would have
been paid to the participant based on years of service as of February 14, 2012 or (b)
the actual amount of accrued unused sick or annual leave paid to the participant at
retirement.
E. CREDITED SERVICE
Shall mean the total number of years and fractional parts of years of service as a
Participant during which the Participant made required contributions to the Plan,
omitting intervening years or fractional parts of years when such Participant is not
employed by the Employer. (See Plan Definition)
Credited Service shall also include Credited Service purchased by a member in
accordance with this section:
a. Participants who were employed in a position covered by the Plan prior
to the effective date of this ordinance may purchase up to five (5)
additional years of Credited Service under the Plan for all or a portion
of their previous full -time employment with the federal government,
including military service, or any state, county, or city government other
than the City of Clermont. Any participant who elects, prior to three (3)
months from the effective date of this ordinance to purchase previous
full -time employment with the federal government, including military
service, or any state, county, or city government other than the City of
Clermont, shall pay the full actuarial cost of such Credited Service on
or before six (6) months from the effective date of this ordinance in
accordance with subsection (d) below. The calculation of the full
actuarial cost shall be made using the assumptions contained in the
actuarial valuation performed prior to the purchase of the service
credits. The employee salary used as the initial salary for the
projected salary shall be the salary for the year preceding the
purchase of the service credits. The service credits shall be used for
benefit accrual and for satisfying service requirements for benefits.
b. Participants with a hire date after the effective date of this ordinance
may purchase up to five (5) additional years of Credited Service at any
time before completing three (3) months of service with the City of
Clermont; provided the member has paid into the plan prior to
completing six (6) months of service, the full actuarial cost of such
Credited Service as determined by the plan actuary. The calculation
of the full actuarial cost shall be made using the assumptions
contained in the actuarial valuation performed prior to the purchase of
the service credits. The employee salary used as the initial salary for
the projected salary shall be the employee's annualized starting salary.
The service credits shall be used for benefit accrual and for satisfying '
service requirements for benefits.
c. No additional service credit will be allowed if the participant is receiving
or will receive any other retirement benefit based on the prior
government service.
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Adoption Agreement for the Retirement Plan & Trust for The Police Officers of the City of
Clermont
d. Payment for the purchase of credited service authorized in subsection
(a) and (b), above, shall be made in one of the following manners:
a. Cash lump sum payment.
b. Direct transfer or rollover of an eligible rollover distribution from
a qualified Plan.
Full payment for the purchase of past service credit must be made before
separation from City employment.
F. AVERAGE FINAL COMPENSATION
Shall mean one - twelfth (1/12) of the average annual compensation of the five (5) best
years of the last ten (10) years of Credited Service prior to retirement, termination or
death, or the career average, whichever• is greater. (See Phan Definition)
G. BENEFIT AMOUNTS AND ELIGIBILITY
G1) Normal Retirement Date:
A Participant's Normal Retirement Date shall be the first day of the month
coincident with or next following the attainment of age 55 and 10 years of
service or 20 years of service, regardless of age.
G2) Normal Retirement Benefit:
The monthly retirement benefit shall be equal to the sum of (1) the number
of years of service prior to October 1, 2002 multiplied by 2.25% and (2) the
number of years of service after October 1, 2002, multiplied by 3% and
multiplied by average final compensation.
G3) Early Retirement Date:
A Participant may retire on his Early Retirement Date, which shall be the
first day of any month coincident with or next following the attainment of age
50 and the completion of 10 years of credited service
G4) Early Retirement Benefit:
The accrued benefit will be reduced by three percent (3 %) for all years
before normal retirement age.
•
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Adoption Agreement for the Retirement Plan & Trust for The Police Officers of the City of
Clermont
H. DISABILITY BENEFITS ,
H1) Disability Benefits In- the - Line -of -Duty:
A member determined to be totally and permanently disabled from service
connected injury or disease will receive the greater of (a) the accrued
benefit, (b) the accumulated contributions at 5% interest or (c) 42% of
average compensation.
H2) Disability Benefits Off -Duty:
A member determined to be totally and permanently disabled from a non -
service connected injury or disease must have completed at least ten (10)
years of service.
A member determined to be totally and permanently disabled from a non -
service connected injury or disease and who has completed the required
years of service will receive the greater of (a) the accrued benefit, (b) the
accumulated contributions at 5% interest or (c) 42% of average
compensation.
A member determined to be totally and permanently disabled from a non -
service connected injury or disease and who has not completed the
required years of service shall receive a return of employee contributions
with 5% interest.
I. DEATH BENEFITS
11) Death Prior to Vestinq - In- Line -Of -Duty:
If a member dies prior to retirement in- the - line -of -duty, and he is not vested,
his beneficiary shall receive a refund of one hundred percent (100 %) of the
member's accumulated contributions.
12) Death After Vesting - In- Line -Of -Duty:
If a member dies prior to retirement in- the - line -of -duty, and he is vested,
having completed the required years of credited service, his beneficiary
shall receive the benefits otherwise payable to the member at the
member's early or normal retirement date.
13) Death Prior to Vestinq - Off —Duty:
If a member dies prior to retirement other than in- the - Tine -of -duty, but he is
not vested, his beneficiary shall receive a refund of one hundred percent
(100 %) of the member's accumulated contributions.
14) Death After Vesting - Off -Duty:
If a member dies prior to retirement other than in- the - line -of -duty, and he is
. vested, having completed the required years of credited service, his
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Adoption Agreement for the Retirement Plan & Trust for The Police Officers of the City of
Clermont
beneficiary shall receive the benefits otherwise payable to the member at
the member's early or normal retirement date.
J. TERMINATION OF EMPLOYMENT AND VESTING
If a member's employment is terminated either voluntarily or involuntarily the following
benefits are payable:
1) If the member has less than five (5) years of credited service upon termination of
employment, the member shall be entitled to a refund of his accumulated
contributions or the member may leave the accumulated contributions deposited
with the Fund.
2) If the member has more than five (5) and Tess than ten (10) years of Credited
Service upon termination of employment, the member shall be entitled to their
accrued monthly retirement benefit, starting at the member's otherwise Normal
or Early Retirement Date, provided he does not elect to withdraw his
contributions and provided he survives to his Normal or Early Retirement Date. In
accordance with the following schedule:
Years of Service Vesting Percentage
5 50%
6 60%
7 70%
8 80%
9 90%
For the purposes of this section only, a member may start drawing his vested
Accrued Benefit at age 55. Early retirement deduction will be based on the years
between age 55 and Early Retirement Date.
3) If the member has ten (10) or more years of Credited Service upon termination
of employment, the member shall be entitled to their accrued monthly retirement
benefit, starting at the member's otherwise Normal or Early Retirement Date,
provided he does not elect to withdraw his contributions and provided he
survives to his Normal or Early Retirement Date. Early and Normal Retirement
Dates are based on actual years of Credited Service.
K. EMPLOYEE CONTRIBUTIONS
Members of the Plan shall be required to make regular contributions to the Fund in
the amount of three percent (3 %) % of their salary on a pre -tax basis.
L. COST OF LIVING ADJUSTMENT
Not applicable unless otherwise stated.
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Adoption Agreement for the Retirement Plan & Trust for The Police Officers of the City of
Clermont
M. DEFERRED RETIREMENT OPTION PROGRAM-"DROP"
I. ELIGIBILITY.
A participant who reaches the normal retirement date as a Police Officer
for the City of Clermont and is a member of the City of Clermont Police
Officers' Pension Plan may enter into a Deferred Retirement Option Plan
( "DROP ") on the first day of the month following the attainment of normal
retirement date as defined in the Plan Adoption Agreement. Participants
who attained their normal retirement date prior to the enactment of the
"DROP" shall be afforded the option of participating immediately or
retroactively to the date that they actually attained their normal retirement
date. This option must be exercised no later than (60) days after the
Board provided notice of this option to the affected employee.
II. WRITTEN ELECTION.
An eligible participant electing to participate in the "DROP" must complete
and execute the proper forms supplied by the plan and a resignation of
employment.
Election into the "DROP" is irrevocable once a participant completes the
application to enter the "DROP ".
III. LIMITATION AND DISQUALIFICATION FOR OTHER BENEFITS.
A participant may participate in the "DROP" only once. After
commencement of participation the employee shall no longer earn or
accrue additional vesting credits or credited years of service toward
retirement benefits and shall not be eligible for disability or pre- retirement
death benefits in the City of Clermont Police Officers' Pension Plan.
IV. CESSATION OR REDUCTION OF CONTRIBUTIONS.
Upon the effective date of a participant's commencement of participation in
the "DROP ", the participant's contributions to the City of Clermont Police
Officers' Pension Plan will be discontinued.
V. BENEFIT CALCULATIONS.
For all City of Clermont Police Officers' Pension Plan purposes, the credited
service and vesting credits of a participant participating in the "DROP" shall
remain as they existed on the effective date of commencement of
participation in the "DROP ". The participant shall not earn or be credited
with any additional vesting credits or credited service after beginning
"DROP" participation. Service thereafter shall not be recognized by the City
of Clermont Police Officers' Pension Plan or used for the calculation or
determination of any benefits payable by such Plana
The average final compensation of the participant shall remain as it existed
on the effective date of commencement of participation in the "DROP ".
Payment for accrued unused leave (vacation, holiday, etc.) shall be made,
at the option of the participant, from one of the following choices:
1. when commencing participation in the "DROP ", or
2. as the leave is actually used during participation in the "DROP ", or
3. when the participant actually terminates employment with the City.
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Adoption Agreement for the Retirement Plan & Trust for The Police Officers of the City of
Clermont
Earnings thereafter shall not be recognized by the Plan or used for the
calculation or determination of any benefits payable by the Plan. However,
the value of any retirement gift provided by the City shall be based on the
date that a participant actually leaves employment with the City including
the "DROP" participation period.
VI. PAYMENTS TO DROP ACCOUNT.
The monthly retirement benefits that would have been payable had the
member elected to cease employment and receive normal retirement
benefits shall be deposited in the participant's "DROP" account.
VII. DROP ACCOUNT EARNINGS.
After each fiscal year quarter, the average daily balance in a participant's
deferred retirement option account shall be credited at a rate of six and
one -half percent (6.5 %) annual interest compounded monthly. The Board
of Trustees along with the City shall review the stated rate of retum on an
annual basis in order to determine the necessity of any adjustment for
future "DROP" participants only.
VIII. MAXIMUM PARTICIPATION.
A participant may participate in the "DROP" for a maximum of sixty (60)
r months. At the conclusion of the sixty (60) months, the participants'
covered city employment must terminate pursuant to the resignation
submitted by the participant as part of the "DROP" application. The
participant may terminate "DROP" participation by advancing their
resignation from covered city employment to _a date prior to that submitted
by the participant as part of the "DROP" application.
IX. PAYOUT.
A. Upon the termination of a member's covered City employment (for any
reason, whether by retirement, resignation, discharge or death), the
retirement benefits payable to the participant, or the participant's
beneficiary (if the participant selected an optional form of retirement
benefit which provides for payments to the beneficiary) shall be paid to
the member or beneficiary and shall no longer be deposited into the
participant's "DROP" account.
B. Within thirty (30) days after the end of any calendar quarter following
the termination of a participant's employment, the balance in the
participant's "DROP" account shall be payable at the participant's
option:
1. In full in a single lump sum payment, all accrued "DROP" benefits,
plus interest, less withholding taxes remitted to the Internal
Revenue Services (IRS), paid to the "DROP" participant or
surviving beneficiary, or;
2. As a direct rollover, all accrued "DROP" benefits, plus interest, paid
directly from the "DROP" to the custodian of an eligible retirement
plan as defined in Section 402(c)(8)(B), Internal Revenue Code
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Adoption Agreement for the Retirement Plan & Trust for The Police Officers of the City of
Clermont
(IRC). If benefit is to be paid to a surviving beneficiary, the transfer
shall be to an individual retirement account or annuity as described
in Section 402(c)(9), IRC.
3. Partial lump sum — A portion of the accrued "DROP" benefits shall
be paid to the participant or surviving beneficiary, less IRS tax, and
the remaining "DROP" benefits shall be transferred directly to the
custodian of an eligible retirement plan as defined in Section 402
(c)(8)(B), IRC. However, in the case of an eligible rollover
distribution to the surviving beneficiary of a deceased participant,
an eligible retirement plan is an individual retirement account or
annuity as described in Section 402(c)(9), IRC. The "DROP"
participant or surviving beneficiary shall specify the proportions.
Regardless of the option selected by the participant, the Board of Trustees
has the right to accelerate payments in .order to comply with Section 401
(A)(9) of the Internal Revenue Code and the right to defer payments to
comply with Section 415 of the Internal Revenue Code.
X. DEATH.
If a "DROP" participant dies before their account balances are paid out in
full, the participant's designated beneficiary shall have the same rights as
the participant to elect and receive the payout options set forth in paragraph
nine (IX) above. "DROP" payments to a beneficiary shall be in addition to
any retirement benefits payable to the participant. Participants who are or
have been "DROP" participants are not eligible for pre- retirement death or
disability benefits.
XI. FORMS.
The forms and notices approved by the City shall be used in the
administration of The "DROP" Plan.
XII. AMENDMENT.
The Board of Trustees, upon approval by the City Council, can amend the
"DROP" at any time., Such amendments shall be consistent with the
provisions covering deferred retirement option plans set forth in any
applicable collective bargain ing agreement and shall be binding upon all
future "DROP" participants and upon all "DROP" participants who have
balances in their accounts. Such amendments may increase the
expense, decrease the account earnings, or limit or restrict the payout
options. /
This Adoption Agreement may be used only in conjunction with the Basic Defined Benefit
Plan Document. T his Adoption Agreement and the Basic Defined Benefit Plan Document
shall together be known as the Retirement Plan and Trust for the Police Officers of the
City of Clermont.
The Adoption Agreement and the Basic Defined Benefit Plan Document are furnished for
the consideration ,of the Employer and its legal and financial advisors. The Florida
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Adoption Agreement for the Retirement Plan & Trust for The Police Officers of the City of
Clermont
Municipal Pension Trust Fund advises the sponsoring Employer to consult with its own
attorney and financial advisors on the legal and tax implications of the Defined Benefit
Plan and the Adoption Agreement. Nothing herein should be construed as constituting
legal or tax advice.
We understand that the Employer may amend any election in this Adoption Agreement by
giving the Trustee written notification of such Amendment as adopted.
The Employer hereby agrees to operate under the provisions of the Master Trust
Agreement creating the Florida Municipal Pension Trust Fund, which is incorporated in
full into this Agreement and attached hereto as Exhibit A to the Basic Defined Benefit
Plan Document and the Adoption Agreement
IN WITNESS WHEREOF, the Employer and Trustee hereby cause this Agreement to
be executed on this 8 day of May 2012.
EMPLOYER:
City of Clermon
By: Date: ' "-"[ , aO l off,
Title: MAYOR
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