R-6 CITY OF CLERMONT
POLICE OFFICERS' PENSION BOARD OF TRUSTEES
RESOLUTION NO. 6
A RESOLUTION OF THE CITY OF CLERMONT, POLICE OFFICERS'
PENSION BOARD OF TRUSTEES REQUESTING THE CITY COUNCIL OF
THE CITY OF CLERMONT, FLORIDA CONSIDER ADOPTING AN
ORDINANCE AMENDING THE CITY OF CLERMONT POLICE
OFFICERS' RETIREMENT PLAN, PROVIDING PLAN BENEFIT
REVISIONS; 'PROVIDING FOR SEVERABILITY" OF PROVISIONS;
REPEALING ALL .RESOLUTIONS IN CONFLICT HEREWITH; AND
PROVIDING AN EFFECTIVE'DATE.
WHEREAS, the City of Clermont Police Officers' are presently provided pension and
certain other benefits under.Ordinance No. 304-C and;
WHEREAS,the City of Clermont Police Officers' Pension Board of Trustees requests that
the City Council consider amending the provisions of the Police Officers' Retirement Plan pursuant
to the collective bargaining process;
SECTION 1.
NOW, THEREFORE BE IT RESOLVED, by the City of Clermont Police Officers'
Pension-Board of Trustees, that the City Council consider amending the following sections of the
Police Officers' Retirement Plan Adoption Agreement to read as follows:
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
Police Officer for any other municipal, county or state law enforcement
department in the State of Florida or for full time service as a federal or other
state, countyor municipal service as a law enforcement officer 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 as defined herein; and/or
b. The years or fractional parts of years that a police officer serves or has served on
active duty in the military service of the Armed Forces of the United_States,
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CITY OF CLERMONT
POLICE OFFICERS' PENSION BOARD OF TRUSTEES
RESOLUTION NO. 6
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(c)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.
N. SHARE PLAN
The purpose of this Section is to implement the provisions of Chapter 185, Florida Statutes,
and to provide a mechanism to pay required"extra benefits"to Police Officers based on the
growth of premium tax revenue pursuant to Chapter 185. The monies shall be derived
exclusively from monies received from the state and not from any additional taxes levied by
the City.
Effective January 26,2016,the City agrees to convert 100%of the Chapter 185 reserve fund
to a share plan. The total amount shallbe credited to each Participant based on their
completed months of credited service in proportion to the combined completed months of
credited service of all Participants.
Effective January 26, 2016, the Union agrees to allow the City to use 100% of all future
Chapter 185 annual distributions up to the amount received in the 2012 calendar year
($211,000) and 50% of any future annual amounts in excess of the 2012 calendar year
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CITY OF CLERMONT
POLICE OFFICERS' PENSION BOARD OF TRUSTEES
RESOLUTION NO. 6
distribution to fund the normal cost of the pension plan. The remaining 50% of any future
annual amounts in excess of the 2012 calendar year distribution shall be credited to
Participant share accounts,with each Participant's account receiving an equal share of the
total amount allocated.
All monies received will be placed in the Fund, as outlined in Article 4 of the Basic Plan
Document, and shall be commingled for investment purposes with the other assets of the
City's retirement pension funds. Separate accounting shall be maintained for all commingled
assets.
In accordance with provisions of Chapter 185, Florida Statutes and such other required
authority,a Police Officer,who is a Participant,shall be entitled to one share for each year of
Credited Service, as defined below, as a Police Officer of the City. Each Participant shall
thereupon have as many shares as years of Credited Service. The number of years of
Credited Service rendered by each Participant shall be determined and a record thereof
shall be made on the Participant's service record.
For purposes of this Section, the word, Credited Service shall mean all time served as a
regularly appointed or employed Police Officer of the City for which regular compensation is
paid by the City and all times during which a Participant is absent on military leave. It shall
include all leave of absences with pay, but shall not include leave of absences during which
no regular compensation is paid by the City, except military leave. Credited Service for the
purposes of the Share Plan only, shall include participants in the DROP.
Available funds shall be credited to active Participant share accounts,or Participants in the
DROP,as of September 30th of the applicable Plan Year. Available funds shall be prorated
to each qualifying Police Officer in proportion to the number of individual shares for the Plan
Year by credit to the Fund.
The Board of Trustees shall pay all costs and expenses for the management and operation
for the current fiscal year and shall set aside as much of the income as it considers
advisable as a reserve for expenses for the next fiscal year.After deducting these monies,
the remaining monies shall be allocated and credited to the Fund on behalf of the respective
Participants. The City shall bear no expense in the operation of this share plan.
Upon termination of employment,the Participant shall be paid the entire amount standing to
this credit in the Fund in a lump sum to the Participant as soon as administratively feasible
following his termination of employment.
No Participant,or designated beneficiary,shall be entitled to payment of their share balance
unless the Participant or beneficiary becomes eligible for a normal,early,disability,or death
benefit from the defined benefit plan. Upon the separation from service of a non-vested
Participant(as defined in Section J, of the Adoption Agreement), shares shall revert back
into this Share Plan and shall be reallocated to the membership unless the former
Participant returns to service prior to the September 30th allocation date.
If any provisions of this Section or the Plan hereby created shall conflict with the provisions of
Chapter 185, Florida Statutes, such conflict shall be resolved in favor of the statutory
provisions which are intended to control.
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CITY OF CLERMONT
POLICE OFFICERS' PENSION BOARD OF TRUSTEES
RESOLUTION NO. 6
SECTION 2.
All Resolutions or parts of Resolutions in conflict with this Resolution are hereby repealed to the extent
of such conflict.
SECTION 3.
Plan benefit improvements provided by this Resolution shall apply prospectively and shall not apply
to any plan member who has terminated employment or who has retired prior to the effective date of
this Resolution.
SECTION 4.
This Resolution shall be effectively immediately.
Done and Resolved by the City of Clermont Police Officers' Pension Board of Trustees this 17t day
of March, 2016
,.,.,,—.Mike Scheller
Chairman
OFF, Ili/
J,hn Baker
Secretary
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.
ADDENDUM TO THE OPERATING RULES AND PROCEDURES
OF THE BOARD OF TRUSTEES OF THE
CITY OF CLERMONT POLICE OFFICERS' REIIREMEPfT PLAN
Rule 11.7, Purchase of Credited Service, is added to the Operating Rules and Procedures to read as
follows:
RULE 11.7 PURCHASE OF CREDITED SERVICE
In lieu of the lump sum payment provided for in Section E. 1. of the City of Clermont Police
Officers' Retirement Plan Adoption Agreement for the purchase of credited service, a member may elect
to make payments over a period of time in order to fully pay the amount provided for in Section E. The
member shall be required to notify the Board, in writing, of his election to make payments in the manner
provided for in this Rule. The payment plan provided for in this Rule shall be subject to the following terms:
(1) The principal amount to be paid shall be determined as set forth in Section E of the
Adoption Agreement.
(2) The original principal amount or any portion thereof shall be amortized over the
period beginning with the first payment and ending no later than sixty(60) months from the date of the first
payment.
(3) Payments shall consist of principal and interest at a rate equal to the actuarially
assumed rate of return on plan investments.
(4) Payments shall be made by payroll deduction from each paycheck on an after-tax
basis.
(5) In the event that a member dies, retires (including entry into any Deferred Retirement
Option Plan (DROP)) or otherwise terminates his employment, without having made full payment of the
principal amount necessary to receive all credited service requested, the member shall receive so much of
the credited service requested, determined using procedures established by the actuary, which could be
purchased with the amount of principal paid by the member to the date of his death or termination of
employment.
BOARD OF TRUSTEES OF THE CITY OF
CLERMONT POLICE OFFICERS'
RETIREMENT PLAN
By:
As Chairman
Date: 3/t�/ /� SRG03-22-16/.rule11.7.Adden