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O-2016-08 CITY OF CLERMONT ORDINANCE No. 2016-08 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CLERMONT, LAKE COUNTY, FLORIDA, AMENDING THE CITY OF CLERMONT FIREFIGHTERS'PENSION TRUST FUND,AS ADOPTED BY ORDINANCE NO. 304-C; PROVIDING PLAN BENEFIT REVISIONS; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. WHEREAS,the City of Clermont Firefighters' are presently provided pension and certain other benefits under Ordinance No 304-C and, WHEREAS,the City Council desires to amend the provisions of the Firefighters' Retirement Plan SECTION 1. NOW, THEREFORE BE IT ORDAINED,by the City Council of the City of Clermont, Lake County, Flonda that the following sections of the Firefighters' Retirement Plan Adoption Agreement shall be amended to read as follows (note strikethrough indicates removed words and underlined indicates added) E. CREDITED SERVICE Shall mean the total number of years and fractional parts of years of service as a participant dunng 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 City of Clermont Credited service shall also include credited service purchased by a member in accordance with this section 1 Participants who are employed in a position covered by the plan may purchase up to a total of five(5) additional years of credited service under the plan for a The years and fractional parts of years that a member served as a full-time firefighter for any other municipal,county or state firefighting department in the State of Flonda or for full time service as a federal or other state, county or municipal service as a firefighter if the pnor service is recognized by the Division of State Fire Marshal as provided in Chapter 633, Flonda Statutes, or the firefighter provides proof to the Board that such service is equivalent to the service required to meet the definition of a firefighter as defined herein, and/or 1 CITY OF CLERMONT ORDINANCE No. 2016-08 b The years or fractional parts of years that a 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, pnor to first and initial employment with the City Any participant who elects to purchase credited service shall pay the full actuarial cost of such credited service on or before three (3) months from the date of election to purchase such credited service in accordance with subsection(3)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 2 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 3 Payment for the purchase of credited service authorized in subsection (1) 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 c Any reasonable method established by the Trustees provided, however, that Participants similarly situated shall be similarly treated Full payment for the purchase of past service credit must be made before separation from City employment SECTION 2. Any portion, of the City of Clermont Code or any Ordinance or part thereof in conflict with this Ordinance is hereby repealed to the extent of such conflict SECTION 3. Should any Section or part of a Section be declared invalid by any court of competent jurisdiction, such adjudications shall not apply or affect any other provision of this Ordinance, except to the extent that the entire Section or part of the Section may in separable in meaning and effect from the Section to which such holding shall apply 2 CITY OF CLERMONT ORDINANCE No. 2016-08 SECTION 4. This Ordinance shall be published as provided by law, and it shall become law and take effect upon its Second Reading and Final passage 3 CITY OF CLERMONT ORDINANCE No. 2016-08 PASSED AND ADOPTED by the City Council of the City of Clermont, Lake County, Flonda,on this 26th day of Apnl, 20164114 t^9S 1 e k4 l,/ 1,1 r h 4 ICITY OF CLERMONT PVPVPV 1 p -i ; A n /N 1 )6‘ZO'KdV4 4 „4. apt f.r •^ -"Gail L Ash, Mayor ATT% ST. 1 '4 /// // Tracy Ackroyd Howe, City Clerk Apprt ed as to fo and legacy i Darnel Mantzans, ' •• - FLORIDA MUNICIPAL PENSION TRUST FUND DEFINED BENEFIT 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 Firefighters 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 E Van Zile Finance Director Address P O Box 120219 Clermont, FL 34712-0219 Telephone (352) 241-7368 Fax (352) 394-4082 Email 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 1 4/26/16(R) A PLAN INFORMATION This Adoption Agreement shall establish a Plan and Trust with the following provisions 1. Plan Inception Date. December 20, 1960 2. Plan Year: (12 consecutive month period) Beginning October 1 and Ending September 30 3. Plan Anniversary Date(Annual Valuation Date). October 1 4 Name of Plan Administrator: Florida League of Cities, Inc 301 S Bronough St , Suite 300 Post Office Box 1757 Tallahassee, Florida 32302-1757 Tel (850)222-9684 Fax (850)222-3806 5. Florida Municipal Pension Trust Fund I D. Number: 59-2961075 6. Florida Municipal Pension Trust Funds' Agent for Legal Process. Cypen & Cypen P 0 Box 402099 Miami Beach, FL 33140 Telephone(305)532-3200 Fax(305)535-0050 B. PLAN The Firefighters of the City of Clermont are eligible to participate in the Plan C. ELIGIBILITY Firefighters are eligible to participate in the plan immediately when hired D. SALARY Means the fixed monthly remuneration paid a Firefighter, where, as in the case of a Volunteer Firefighter, remuneration is based on actual services rendered, salary shall be the total cash remuneration received yearly for such services, prorated on a monthly basis The remuneration paid a Firefighter by the employer for a plan year excludes bonuses The amount of annual overtime compensation that may be included in the calculation of the bargaining unit member's retirement benefit shall be limited to the first three hundred (300) hours of overtime paid per calendar year The amount of the accrued unused sick or annual leave payment at retirement that may be included in the calculation of the bargaining unit member's retirement benefit shall be the lesser of(a) the total value of accrued unused sick or annual leave that would have been paid to the bargaining unit member based on years of service as of the date of approval of this contract by the City Council or(b) the actual amount of accrued unused sick or annual leave paid to the bargaining unit member at retirement 2 4/26/16(R) 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 City of Clermont Credited service shall also include credited service purchased by a member in accordance with this section 1 Participants who are employed in a position covered by the plan may purchase up to a total of five (5) additional years of credited service under the plan for a The years and fractional parts of years that a member served as a full-time firefighter for any other municipal, county or state firefighting department in the State of Florida or for full time service as a federal or other state, county or municipal service as a firefighter if the prior service is recognized by the Division of State Fire Marshal as provided in Chapter 633, Florida Statutes, or the firefighter provides proof to the Board that such service is equivalent to the service required to meet the definition of a firefighter as defined herein, and/or b The years or fractional parts of years that a 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 Any participant who elects, to purchase credited service, shall pay the full actuarial cost of such credited service on or before three (3) months from date of election to purchase such credited service in accordance with subsection 3 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 2 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 3 Payment for the purchase of credited service authorized in subsection 1 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 c Any reasonable method established by the Trustees provided, however, that Participants similarly situated shall be similarly treated Full payment for the purchase of past service credit must be made before separation from City employment 3 4/26/16(R) F AVERAGE FINAL COMPENSATION 1 Full-Time Firefighters One-twelfth of the average annual compensation of the 5 best years of the last 10 years of creditable service prior to retirement, termination or death, or the Full-time Firefighter career average of the Firefighter, whichever is greater 2 Volunteer Firefighters The average salary of the 5 best years of the last 10 best contributing years prior to change in status to a permanent Full-time Firefighter or retirement as a Volunteer Firefighter or the career average of the Firefighter, whichever is greater G. BENEFIT AMOUNTS AND ELIGIBILITY 1 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 attainment of 20 years of service, regardless of age (Only actual completed years of credited service will be used to determine normal retirement date) 2 Normal Retirement Benefit The monthly normal retirement benefit for Full-time Firefighters shall be The sum of (1) the number of years 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 The monthly normal retirement benefit for Volunteer Firefighters shall be the greater of a five dollars ($5 00) a year multiplied by the years of credited volunteer service, or b the sum of(1) the number of years of credited volunteer service pnor to October 1, 2002 multiplied by 2 25% and (2) the number of years of credited volunteer service after October 1, 2002 multiplied by 3% and multiplied by average monthly compensation as a volunteer The monthly normal retirement benefit of a Volunteer Firefighter that changes status from a Volunteer Firefighter to a Full-time Firefighter shall be The sum of (1)the accrued benefit as a volunteer firefighter, and (2)the accrued benefit as a full-time firefighter 3 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 (Only actual completed years of credited service will be used to determine early retirement date) 4 4/26/16(R) 4 Early Retirement Benefit The accrued benefit will be reduced by three percent(3%)for each year by which early retirement precedes normal retirement H. DISABILITY BENEFITS 1 Disability Benefits In-the-Line-of-Duty A member determined by the Board of Trustees to be totally and permanently disabled from a service connected injury or disease will receive the greater of a monthly pension equal to 42% of average monthly compensation or an amount equal to the accrued retirement benefit 2 Disability Benefits Off-Duty A member determined to be totally and permanently disabled by the Board of Trustees from a non-service connected injury or disease must have completed at least ten (10) years of service A member 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) 25% of average compensation A member who has not completed the required years of service will receive a return of accumulated employee contributions with 5% interest I. DEATH BENEFITS 1 Death Prior to Vesting -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 2 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 3 Death Prior to Vesting-Off—Duty If a member dies prior to retirement other than 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 4 Death After Vesting-Off-Duty If a member dies prior to retirement other than in-the-line-of-duty, but 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 J TERMINATION OF EMPLOYMENT AND VESTING The sum of the volunteer firefighter years of service and full-time firefighter years of service will be counted in total for vesting purposes If a member's employment is terminated either voluntarily or involuntarily the following benefits are payable 5 4/26/16(R) 1 If a 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 a member has more than five(5)and less than ten(10)years of credited service upon termination of employment, the member shall be entitled to their accrued monthly 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 % 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 the age of 55 Early retirement deduction will be based on the years between the age of 55 and the 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 benefits, 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 this normal or early retirement date Early and normal retirement dates are based on actual years of service K. EMPLOYEE CONTRIBUTIONS Members of the Plan shall be required to make regular contributions to the Fund in the amount of four(4%)percent of their salary/after-tax, effective in the pay period beginning February 10, 2014 L COST OF LIVING ADJUSTMENT Not applicable unless otherwise stated M. DEFERRED RETIREMENT OPTION PROGRAM (DROP) 1 Eligibility A participant who reaches the normal retirement date as a Firefighter for the City of Clermont and is a member of the City of Clermont Firefighters'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 2 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 6 4/26/16(R) Election into the "DROP" is irrevocable once a participant completes the application to enter the "DROP" 3 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 Firefighters' Pension Plan 4 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 Firefighters' Pension Plan will be discontinued 5 Benefit Calculations For all City of Clermont Firefighters' 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 Firefighters' Pension Plan or used for the calculation or determination of any benefits payable by such Plan 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 a when commencing participation in the"DROP", or b as the leave is actually used during participation in the"DROP", or c when the participant actually terminates employment with the City 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 6 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 7 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 return on an annual basis in order to determine the necessity of any adjustment for future"DROP" participants only 7 4/26/16(R) 8 Maximum Participation A participant may participate in the"DROP"for a maximum of sixty(60)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 9 Payout Upon the termination of a members' 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 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(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 decease 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 10 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 8 4/26/16(R) 11 Forms The forms and notices approved by the City shall be used in the administration of the"DROP" Plan 12 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 bargaining 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 This Adoption Agreement and the Basic Defined Benefit Plan Document shall together be known as the Retirement Plan and Trust for the Firefighters 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 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 26th day of April 2016 CITY OF CLERMONT , 4, / Gail L. Ash, M:y.r 9 4/26/16(R)