Ordinance No. 2021-012CITY OF CLERMONT
ORDINANCE NO.2021-012
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CLERMONT, LAKE COUNTY, FLORIDA, REPEALING ORDINANCE
304-C; AMENDING SECTION 46-21; AMENDING SECTION 46-23 TO
ADD AN AMENDED AND RESTATED PLAN DOCUMENT FOR THE
CITY OF CLERMONT POLICE OFFICERS' RETIREMENT PLAN;
AMENDING SECTION 46-24 TO ADD AN AMENDED AND RESTATED
PLAN DOCUMENT FOR THE CITY OF CLERMONT FIREFIGHTERS'
RETIREMENT PLAN; PROVIDING FOR CODIFICATION; PROVIDING
FOR SEVERABILITY OF PROVISIONS; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Clermont Police Officers and the City of Clermont Firefighters
are presently provided pension and certain other benefits under Ordinance No. 304-C;
WHEREAS, both the Board of Trustees of the Retirement Plan and Trust for Police
Officers of the City of Clermont ("Police Officers' Board") and the Board of Trustees of the
Retirement Plan and Trust for Firefighters of the City of Clermont ("Firefighters' Board") have
changed administration for each Board and each plan document adopted by Ordinance No. 304-C
was created and maintained by the former administrator;
WHEREAS, the Police Officers' Board and the Firefighters' Board have each created a
new plan document with the same plan provisions, some administrative enhancements, and
updates for compliance with State and Federal law;
WHEREAS, the City Council desires to amend and restate the provisions of the Police
Officers' Retirement Plan and the Firefighters' Retirement Plan;
NOW, THEREFORE BE IT ORDAINED, by the City Council of the City of Clermont,
Lake County, Florida that:
SECTION 1.
Ordinance 304-C (February 2001) as amended is hereby repealed. In its place, two amended and
restated plans are created: (1) CITY OF CLERMONT POLICE OFFICERS' RETIREMENT
PLAN is created and codified as a part of the City Code at Section 46-23; and (2) CITY OF
CLERMONT FIREFIGHTERS' RETIREMENT PLAN is created and codified as a part of the
City Code at Section 46-24.
SECTION 2.
Section 46-21 is hereby amended to read as follows:
Sec. 46-21. - Clermont pension plan for police and firefighters and defined benefits
general employees plan.
The city council confirms and adopts the Clermont Pension Plan for Police Officers,
Firefighters and Defined Benefits General Employees Plan as amended and restated
(effective date November 1, 1960) as it is set forth in full and on file in the city clerk's
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office. The plan and trust shall be known as and may be referred to as the Clermont Pension
Plan for Police and Fire Fighters and Defined Benefits Plan General Employees Plan
(November 1, 1960). Effective October 1, 1985, the Defined Contribution Plan for General
Employees was provided through a separate plan and trust as provided for in Section 46-22
of the City Code. Effective February 2001, the Police Officers and the Firefighters
retirement benefits were provided through a separate plan and trust created by Ordinance
304-C. Effective [insert effective date], the retirement plans for the Police Officers and the
Firefighters were amended and restated as provided for in Sections 46-23 and 46-24 of the
City Code, respectively.
SECTION 3.
Section 46-23 is hereby amended to read as follows:
Sec. 46-23. - Retirement Plan and Trust for the Police Officers of the City of Clermont.
The city council adopts the amended and restated plan and trust for the Police Officers of
the City of Clermont effective [insert effective date] as fully set forth in this Code. The plan
shall be renamed as the City of Clermont Police Officers' Retirement Plan and all assets of
the former Retirement Plan and Trust for the Police Officers of the City of Clermont are
renamed also.
[Insert all provisions from the attached Exhibit A]
SECTION 4.
Section 46-24 is hereby amended to read as follows:
Sec. 46-24. - Retirement Plan and Trust for the Firefighters of the City of Clermont.
The city council adopts the amended and restated plan and trust for the Firefighters of the
City of Clermont effective [insert effective date] as fully set forth in this Code. The plan
shall be renamed as the City of Clermont Firefighters' Retirement Plan and all assets of the
former Retirement Plan and Trust for the Firefighters of the City of Clermont are renamed
also.
[Insert all provisions from the attached Exhibit B]
SECTION 5: CODIFICATION
Authority is hereby given to the City Clerk to codify the provisions of the Exhibits A and Exhibit
B as if fully set forth in the City of Clermont Code at Sections 46-23 and 46-24 respectively.
SECTION 6: CONFLICT
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.
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SECTION 7: SEVERABILITY
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.
SECTION 8: PUBLICATION AND EFFECTIVE DATE
This ordinance shall be published as provided by law, and it shall become law and take effect upon
its Second Reading and Final passage.
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PASSED AND ADOPTED by the City Council of the City of Clermont, Lake County,
Florida on this 23rd day of March, 2021.
a~
#
Tracy Ackroyd gowe, City Clerk
APPROVED AS TO FORM AND LEGALITY:
1
Daniel F. Mantzaris, City Attorney
CITY OF CLERMONT
Tim Murry, Akayor
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ORDINANCE NO.2021-012
EXHIBIT A
CITY OF CLERMONT POLICE OFFICERS' RETIREMENT PLAN
Sec. 46-23.1 Definitions.
(a) 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 with interest at the rate
of five percent (5.0%) per annum. Interest accrues only during periods when a member is accruing
credited service. 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 without the crediting of interest of five percent (5.0%) per annum.
Actuarial equivalent means a benefit or amount of equal value, based upon the unisex
mortality table promulgated by the Internal Revenue Service for purposes of Internal Revenue
Code Section 417(e)(3), and an interest rate equal to the investment return assumption set forth in
the last actuarial valuation report approved by the board. 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 five (5)
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, 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 Clermont, Florida.
Code means the Internal Revenue Code of 1986, as amended from time to time.
Credited service means the total number of years and fractional parts of years, computing
fractional parts of years on the basis of the nearest number of completed months of service as a
police officer 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. A member
may voluntarily leave his accumulated contributions in the fund for a period of five (5) years after
leaving the employ of the Police department pending the possibility of being reemployed as a
police officer, without losing credit for the time that he was a member of the system. If a vested
member leaves the employ of the Police 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 with the Police department within five (5) years, his accumulated contributions, if
one -thousand dollars ($1,000.00) or less shall be returned. If a Member 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 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 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 repays
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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 with the city to perform training or service, shall
be added to his years of credited service for all purposes, including vesting, provided that:
(1) The member is entitled to reemployment under the provisions of USERRA.
(2) The member returns to his employment as a police officer within one year from the
earlier of the date of his military discharge or his release from active service, unless
otherwise required by USERRA.
(3) The maximum credit for military service pursuant to this paragraph shall be five
(5) years.
(4) 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.
Beginning January 1, 2009, to the extent required by section 414(u)(12) of the code, an
individual receiving differential wage payments (as defined under section 3401(h)(2) of the code)
from an employer shall be treated as employed by that employer, and the differential wage payment
shall be treated as compensation for purposes of applying the limits on annual additions under
section 415(c) of the code. This provision shall be applied to all similarly situated individuals in
a reasonably equivalent manner.
Leave conversions of unused accrued paid time off shall not be permitted to be applied
toward the accrual of credited service either during each plan year of a member's employment with
the City or in the plan year in which the member terminates employment.
Effective date means October 1, 1979.
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 F.S. ' 943.1395, 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.
Fund means the trust fund established herein as part of the system.
Member means an actively employed police officer 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.
Plan year means the twelve (12) month period beginning October 1 and ending September
30 of the following year.
Retiree means a member who has entered retirement status.
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Retirement means a member's separation from city employment with eligibility for
immediate receipt of benefits under the system or entry into the deferred retirement option plan.
Salary means 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, and any payments
for extra duty or special detail work performed on behalf of a second party employer. Effective
October 1, 2019, the amount of annual overtime compensation that may be included in the
calculation of a 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 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 member 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 member at retirement, regardless of whether the amount of sick or annual leave was, at
some time prior to retirement, reduced below the amount on February 14, 2012.
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
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 member's or retiree's spouse under applicable law at the time benefits
become payable.
System means the City of Clermont Police Officers' Retirement Plan as contained herein
and all amendments thereto.
(b) Masculine gender. The masculine gender, where used herein, unless the context
specifically requires otherwise, shall include both the feminine and masculine genders.
Sec. 46-23.2. Membership.
(a) Conditions of eligibility. All police officers as of the effective date, and all future
new police officers, shall become members of this system as a condition of
employment.
(b) Designation of beneficiary. Each police officer shall complete a form prescribed
by the board designating a beneficiary or beneficiaries.
Sec. 46-23.3. Board of trustees.
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(a) 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, shall be legal residents of
the city, who shall be appointed by the Clermont City Council, and two (2) of whom shall be
members of the system, who shall be elected by a majority of the police officers 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 Clermont City Council.
Upon receipt of the fifth person's name, the Clermont City Council shall, as a ministerial duty,
appoint such person to the board 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 two (2)
year term unless he sooner vacates the office. Each resident trustee shall serve as trustee for a
period of two (2) years, unless he sooner vacates the office or is sooner replaced by the Clermont
City Council at whose pleasure he shall serve. Each member trustee shall serve as trustee for a
period of two (2) years, unless he sooner leaves the employment of the city as a police officer 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. DROP participants can be
elected as but not vote for elected trustees. 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.
(b) 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.
(c) 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 F.S. '112.3143.
(d) 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.
(e) The duties and responsibilities of the board shall include, but not necessarily be
limited to, the following:
(1) To construe the provisions of the system and determine all questions arising
thereunder.
(2) To determine all questions relating to eligibility and membership.
(3) To determine and certify the amount of all retirement allowances or other benefits
hereunder.
(4) To establish uniform rules and procedures to be followed for administrative
purposes, benefit applications and all matters required to administer the system.
(5) To distribute to members, at regular intervals, information concerning the system.
(6) To receive and process all applications for benefits.
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(7) To authorize all payments whatsoever from the fund, and to notify the disbursing
agent, in writing, of approved benefit payments and other expenditures arising
through operation of the system and fund.
(8) 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.
(9) To perform such other duties as are required to prudently administer the system.
Sec. 46-23.4. Finances and fund management.
Establishment and operation offund.
(a) 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' Retirement Plan.
(b) The actual custody and supervision of the fund (and assets thereof) shall be vested
in the board. Payment of benefits and disbursements from the fund shall be made by the disbursing
agent but only upon written authorization from the board.
(c) All funds of the Police Officers' Retirement Plan 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 he is liable for the safekeeping 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' Retirement
Plan. In lieu thereof, the board shall deposit the funds of the Police Officers' Retirement Plan in a
qualified public depository as defined in F.S. ' 280.02, which depository with regard to such funds
shall conform to and be bound by all of the provisions of F.S. ch. 280. In order to fulfill its invest-
ment 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.
(d) 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:
(1) Current amounts of accumulated contributions of members on both an individual
and aggregate account basis, and
(2) Receipts and disbursements, and
(3) Benefit payments, and
(4) Current amounts clearly reflecting all monies, funds and assets whatsoever
attributable to contributions and deposits from the city, and
(5) All interest, dividends and gains (or losses) whatsoever, and
(6) Such other entries as may be properly required so as to reflect a clear and complete
financial report of the fund.
(e) An 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
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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.
(f) The board shall have the following investment powers and authority:
(1) 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 Clermont City Council 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 in the fund and the board shall not be required to segregate or
invest separately any portion of the fund.
(2) 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:
a. Notwithstanding any limitation provided for in F.S. ch. 185, to the contrary
(unless such limitation may not be amended by local ordinance) or any
limitation in prior city ordinances to the contrary, all monies paid into or
held in 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 of the assets of
the fund at market value be invested in foreign securities.
b. 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.
C. 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, Revenue
Ruling 2011-1 IRS Notice 2012-6 and Revenue Ruling 2014-24, or
successor rulings or guidance of similar import, and operated or maintained
exclusively for the commingling and collective investment of monies,
provided that the funds in the group trust consist exclusively of trust assets
held under plans qualified under section 401(a) of the code, individual
retirement accounts that are exempt under section 408(e) of the code,
eligible governmental plans that meet the requirements of section 457(b) of
the code, and governmental plans under 401(a)(24) of the code. For this
purpose, a trust includes a custodial account or separate tax -favored account
maintained by an insurance company that is treated as a trust under section
401(f) or under section 457(g)(3) of the code. 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.
1. Any collective or common group trust to which assets of the fund
are transferred pursuant to subsection c. shall be adopted by the
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board as part of the plan by executing appropriate participation,
adoption agreements, and/or trust agreements with the group trust's
trustee.
2. The separate account maintained by the group trust for the plan
pursuant to subsection c. shall not be used for, or diverted to, any
purpose other than for the exclusive benefit of the members and
beneficiaries of the plan.
For purposes of valuation, the value of the separate account
maintained by the group trust for the plan shall be the fair market
value of the portion of the group trust held for the plan, determined
in accordance with generally recognized valuation procedures.
(3) 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
F.S. ' 185.06, 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.
(4) 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.
(5) 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.
(6) 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.
(7) 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 transac-
tions 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 deposito-
ries 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
generally to exercise any of the powers of an owner with respect to stocks, bonds,
or other investments comprising the fund which it may deem to be to the best
interest of the fund to exercise.
(8) 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.
(9) 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
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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.
(10) 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 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.
(11) The board shall sustain no liability whatsoever for the sufficiency of the fund to
meet the payments and benefits provided for herein.
(12) 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.
(13) 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.
Sec. 46-23.5. Contributions.
(a) Member contributions.
(1) Amount. Each member of the system shall be required to make regular
contributions to the fund in the amount of five percent (5.0%) 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 designation 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.
(2) Method. Such contributions shall be made by payroll deduction.
(b) State 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
officers 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.
(c) City 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.
(d) 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 determined
by the board, and may not be used to reduce what would have otherwise been required city
contributions.
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Sec. 46-23.6. Benefit amounts and eligibility.
(a) Normal retirement age and date. A member's normal retirement age is the earlier
of the attainment of age fifty-five (55) and the completion of ten (10) years of credited service, or
the completion of twenty (20) years of credited service, regardless of age. Each member shall
become one hundred percent (100%) vested in his accrued benefit at normal retirement age. A
member's normal retirement date shall be the first day of the month coincident with or next
following the date the member retires from the City after attaining normal retirement age.
(b) 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 two and one -quarter percent (2.25%) of
average final compensation times years of credited service earned prior to October 1, 2002 and
three percent (3.0%) of average final compensation times years of credited service earned on and
after October 1, 2002.
(c) Early retirement date. A member 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 fifty
(50) and the completion of ten (10) years of credited service. Early retirement under the system is
retirement from employment with the city on or after the early retirement date and prior to the
normal retirement date.
(d) Early retirement benefit. A member retiring hereunder on his early retirement date
may receive either a deferred or an immediate monthly retirement benefit payable in the same form
as for normal retirement as follows:
(1) A deferred monthly retirement benefit which shall commence on what would have
been his normal retirement date, determined based upon his actual years of credited
service as a police officer and shall be continued on the first day of each month
thereafter. The amount of each such deferred monthly retirement benefit shall be
determined in the same manner as for retirement on his normal retirement date,
determined based upon his actual years of credited service, except that credited
service and average final compensation shall be determined as of his early
retirement date; or
(2) An immediate monthly retirement benefit which shall commence on his early
retirement date and shall be continued on the first day of each month thereafter.
The benefit payable shall be as determined in paragraph (1) above, reduced by three
percent (3.0%)for each year by which the commencement of benefits precedes the
date which would have been the member's normal retirement date , determined
based upon his actual years of credited service.
(e) Required distribution date. The member's benefit under this section must begin to
be distributed to the member no later than the member=s required beginning date, as provided
under Section 46-23.16.
Sec. 46-23.7. Pre -retirement death.
(a) Death prior to vesting, not -in -line of duty. The beneficiary of a deceased member
who was not receiving monthly benefits or who was not yet vested or eligible for early or normal
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retirement and dies not -in -line of duty shall receive a refund of one hundred (100) percent of the
member's accumulated contributions.
(b) Death after vesting, not -in -line of duty. The beneficiary of a deceased member who
was not receiving monthly benefits and who was vested and dies not -in -line of duty shall receive
the benefits otherwise payable to the member at the member=s early or normal retirement date,
determined based on his actual years of credited service.
(c) 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 the benefit provided for in
(d) below.
(d) Death after vesting, in -line of duty. If a member, other than a participant in the
DROP under Section 46-23.30 dies in -the -line -of -duty, the following benefits are payable:
(1) If the member dies leaving a surviving spouse, the surviving spouse may receive a
monthly pension equal to one hundred percent (100%) of the monthly salary being
received by the member at the time of the member's death for the rest of the
surviving spouse's lifetime. Benefits provided by this paragraph supersede any
other distribution that may have been provided by the member's designation of
beneficiary. Such benefit ceases upon the surviving spouse=s death, unless the
member=s minor children survive the spouse as provided for in paragraph (d)(2) of
this subsection.
(2) If the surviving spouse dies and the member=s minor children survive the spouse,
the monthly payments that otherwise would have been payable to such surviving
spouse shall be paid for the use and benefit of the member's child or children under
18 years of age and unmarried until the 18th birthday of the member's youngest
child. Such monthly payments may be extended until the 25th birthday of the
member's child if the child is unmarried and enrolled as a full-time student at an
accredited institution. If there is more than one minor child, the benefits shall be
divided equally among the children. As each child reaches the benefit termination
age, the remaining eligible children will divide the benefits.
(3) If the member dies leaves no surviving spouse but is survived by a child or children
under 18 years of age and unmarried, the benefits provided by subparagraph (1),
shall be paid for the use and benefit of such member's child or children under 18
years of age and unmarried until the 18th birthday of the member's youngest child.
Such monthly payments may be extended until the 25th birthday of any of the
member's children if the child is unmarried and enrolled as a full-time student at an
accredited institution. If there is more than one minor child, the benefits shall be
divided equally among the children. As each child reaches the benefit termination
age, the remaining eligible children will divide the benefits.
(4) If the member dies leaving no surviving spouse and no child or children under 18
years of age and unmarried and no child under age 25 and unmarried and enrolled
as a full-time student, then the member's beneficiary shall receive the greater of (1)
the member's accrued benefit or (ii) 42% of the member's average final
compensation, with the applicable annuity amount payable for 10 years. If the
named beneficiary dies before the full 10 years of payments are made, the
remaining benefit payments will be paid in a lump sum to the estate of the
beneficiary.
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(5) For purposes of determining whether a death is in -the -line -of -duty, the presumption
and additional presumption provided for in Sec. 46-23.8 (b)(1)and (b)(2) shall
apply.
(6) In all cases, the benefits paid in subsections (1), (2) and (3) above will be at least
the member=s accrued benefit paid for 10 years. In the event that the surviving
spouse or children=s benefits cease due to death or reaching the age of majority as
provided for herein, the benefit will be paid to the estate of the survivor payee (i.e.
the surviving spouse or surviving children).
(e) Notwithstanding anything contained in this section to the contrary, in any event,
distributions to the spouse beneficiary will begin no later than the beginning date provided under
Sec. 46-23.16(b)(2)a.
(f) 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.
Sec. 46-23.8. Disability.
(a) Disability benefits in -line of duty. Any member who shall become totally and per-
manently 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, which disability
was directly caused by the performance of his duty as a police officer, shall, upon establishing the
same to the satisfaction of the board, be entitled to a monthly pension equal to the greater of (a)
the member=s accumulated contributions at five percent (5.0%) interest or (b) the greater of (i)
two and one -quarter percent (2.25%) of average final compensation times years of credited service
earned prior to October 1, 2002 plus three percent (3.0%) of average final compensation times
years of credited service earned on and after October 1, 2002 or (ii) forty-two percent (42%) of the
average final compensation of the member. Eligibility requirements for disability benefits are set
forth in subsection (g), below.
(b) In -line of duty presumptions.
(1) 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 cardiogram, 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.
(2) Additional presumption. The presumption provided for in this paragraph (2) shall
apply only to those conditions described in this paragraph (2) that are diagnosed on
or after January 1, 1996.
a. Definitions. As used in this subsection (b)(2), the following definitions
apply:
1. '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 Disease Control, apply. For purposes
of potential transmission of meningococcal meningitis or
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d.. ORDINANCE NO.2021-012
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.
2. 'Emergency rescue or public safety member" means any member
employed full time by the city as a firefighter, paramedic,
emergency medical technician, law enforcement 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 F.S. ch. 395, or any person employed by a
subsidiary thereof.
3. "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.
4. "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:
i. 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.
5. "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.
b. Presumption. Any emergency rescue or public safety member who suffers
a condition or impairment of health that is caused by hepatitis, meningo-
coccal 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
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member must, by written affidavit as provided in F.S. ' 92.50, verify by
written declaration that, to the best of his knowledge and belief-
1. 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.
2. 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 menin-
gococcal meningitis or known to be an asymptomatic carrier of the
disease.
3. 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.
C. 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 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.
d. 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
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CITY OF CLERMONT
ORDINANCE NO.2021-012
of each instance of known or suspected occupational exposure to hepatitis
infection, meningococcal meningitis, or tuberculosis.
e. Required medical tests; preemployment physical. In order to be entitled to
the presumption provided by this section:
An emergency rescue or public safety member must, prior to
diagnosis, have undergone standard, medically acceptable 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.
2. 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.
(c) Disability 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 determinable physical or mental impairment, to render useful and efficient
service as a police officer, which disability is not directly caused by the performance of his duties
as a police officer shall, upon establishing the same to the satisfaction of the board, be entitled to
a monthly pension equal to the greater of (a) the member=s accumulated contributions at five
percent (5.0%) interest or (b) the greater of (i) two and one -quarter percent (2.25%) of average
final compensation times years of credited service earned prior to October 1, 2002 plus three
percent (3.0%) of average final compensation times years of credited service earned on and after
October 1, 2002. Eligibility requirements for disability benefits are set forth in subsection (g),
below.
(d) Conditions disqualifying disability benefits. Each member who is claiming
disability benefits shall establish, to the satisfaction of the board, that such disability was not occa-
sioned primarily by:
(1) Excessive or habitual use of any drugs, intoxicants or narcotics.
(2) Injury or disease sustained while willfully and illegally participating in fights, riots
or civil insurrections or while committing a crime.
(3) Injury or disease sustained while serving in any branch of the Armed Forces.
(4) Injury or disease sustained by the member after his employment as a police officer
with the city of Clermont shall have terminated.
(5) Injury or disease sustained by the member while working for anyone other than the
city and arising out of such employment.
(e) 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
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surgeon or surgeons who shall be selected by the board, to determine if such disability has ceased
to exist. If the board finds 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, the board shall
recommend to the city that the retiree be returned to performance of duty as a police officer, 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, 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.
(f) Disability payments. 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 determines 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:
(1) If the retiree recovers from the disability, the payment due next preceding the date
of such recovery, or
(2) 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 46-
23.10, subsection (a)(1) or (a)(2), which shall be the actuarial equivalent of the normal form of
benefit.
(g) Eligibility for Disability Benefits. Subject to (g)(4) below, only active members of
the system on the date the board determines entitlement to a disability benefit are eligible for
disability benefits.
(1) Terminated persons, either vested or non -vested, are not eligible for disability
benefits.
(2) If a member voluntarily terminates his employment, either before or after filing an
application for disability benefits, he is not eligible for disability benefits.
(3) If a member is terminated by the City for any reason other than for medical reasons,
either before or after he files an application for disability benefits, he is not eligible
for disability benefits.
(4) The only exceLtion to (1) above is:
a. If the member is terminated by the City for medical reasons and he has
already applied for disability benefits before the medical termination, or;
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Ao,ttll ORDINANCE NO.2021-012
b. If the member is terminated by the City for medical reasons and he applies
within 30 days after the medical termination date.
If either (4)a., or (4)b. above applies, the member's application will be processed
and fully considered by the board.
(h) Workers' compensation. When a retiree is receiving a disability pension and
workers' compensation benefits pursuant to F.S. ch. 440, for the same disability, and the total
monthly benefits received from both exceed one hundred (100) percent of the member's average
monthly wage, as defined in F.S. ch. 440, the disability pension benefit shall be reduced so that
the total monthly amount received by the retiree does not exceed one hundred (100) percent 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 (42) percent of average final
compensation or two and three quarters (2.75) percent of average final compensation times years
of credited service.
Sec. 46-23.9. Vesting.
If a member terminates his employment as a police officer, either voluntarily or by
discharge, and is not eligible for any other benefits under this system, the member shall be entitled
to the following:
(a) 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.
(b) If the member has more than five (5), but less than ten (10) years of credited service
upon termination, the member shall be entitled to a monthly retirement benefit, determined in the
same manner as for normal or early 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 or early retirement date, based on his actual
years of credited service, provided he does not elect to withdraw his accumulated contributions
and provided the member survives to his otherwise normal or early retirement date in accordance
with the following schedule:
Years of Service Vested Percentage (%)
5 50%
6 60%
7 70%
8 80%
9 90%
For purposes of this section only, a member may start drawing his vested accrued
benefit at age fifty-five (55). An early retirement deduction will be based on the years between
age fifty-five (55) and his early retirement date.
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(c) If the member has more than ten (10) years of credited service upon termination,
the member shall be entitled to a monthly retirement benefit, determined in the same manner as
for normal or early 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 commenc-
ing at the member's otherwise normal or early retirement date, based upon his actual years of
credited service, provided he does not elect to withdraw his accumulated contributions and
provided the member survives to his otherwise normal or early retirement date
(d) If the member does not withdraw his accumulated contributions and does not
survive to his otherwise normal or early 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.
Sec. 46-23.10. Optional forms of benefits.
(a) In lieu of the amount and form of retirement income payable in the event of normal
or early 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:
(1) A retirement income of a monthly amount payable to the retiree for his lifetime
only.
(2) A retirement income of a modified monthly amount, payable to the retiree during
the lifetime of the retiree and following the death of the retiree, one hundred (100)
percent, seventy-five (75) percent, sixty-six and two-thirds (66-2/3) percent or fifty
(50) percent 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)
(3) 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 recom-
mended by the actuaries for the system, based upon the social security law in effect
at the time of the member's retirement.
(4) For Members who do not participate in the DROP pursuant to Section 46-23.30,
the member may elect a percentage of benefit in a lump sum as follows:
a. Five percent (5%) of the total actuarial equivalent value of the benefit paid
as a lump sum with the remaining ninety-five percent (95%) paid under the
normal form or as per (1), (2), or (3) above.
b. Ten percent (10%) of the total actuarial equivalent value of the benefit paid
as a lump sum with the remaining ninety percent (90%) paid under the
normal form or as per (1), (2), or (3) above.
C. Fifteen percent (15%) of the total actuarial equivalent value of the benefit
paid as a lump sum with the remaining eighty-five percent (85%) paid
under the normal form or as per (1), (2), or (3) above.
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00t i ORDINANCE NO.2021-012
d. Twenty percent (20%) of the total actuarial equivalent value of the benefit
paid as a lump sum with the remaining eighty percent (80%) paid under the
normal form or as per (1), (2), or (3) above.
(b) The member, upon electing any option of this section, will designate the joint
pensioner (subsection (a)(2) 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.
(c) 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.
(d) 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 46-23.11.
(e) 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:
(1) If a member dies prior to his normal retirement date or early 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 46-23.7.
(2) 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 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.
(3) 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 (a), 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
46-23.11.
(4) If a member continues beyond his normal retirement date pursuant to the provisions
of section 46-23.6, subsection (a), and dies prior to his actual retirement and while
an option made pursuant to the provisions of this section is in effect, monthly
retirement income payments will be made, or a retirement benefit will be paid,
under the option to a beneficiary (or beneficiaries) designated by the member in the
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CITY OF CLERMONT
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amount or amounts computed as if the member had retired under the option on the
date on which his death occurred.
(5) The member's benefit under this section must begin to be distributed to the member
no later than the member=s required beginning date, as provided under Sec. 46-
23.16.
(f) A retiree may not change his retirement option after the date of cashing or
depositing his first retirement check.
(g) 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 ($1,000.00). 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.
Sec. 46-23.11. Beneficiaries.
(a) 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.
(b) If a deceased member or retiree failed to name a beneficiary in the manner
prescribed in subsection (a), 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.
(c) 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.
Sec. 46-23.12. Claims procedures.
(a) 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.
(b) 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.
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Sec. 46-23.13. 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 F.S. ' 185.221.
Sec. 46-23.14. 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.
Sec. 46-23.15. Maximum pension.
(a) 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 415
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 415(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.
For purposes of Code Section 415(b), the "annual benefit" means a benefit payable
annually in the form of a straight life annuity (with no ancillary benefits) without regard to the
benefit attributable to after-tax employee contributions (except pursuant to Code Section 415(n)
and to rollover contributions (as defined in Code Section 415(b)(2)(A)). The "benefit attributable"
shall be determined in accordance with Treasury Regulations.
(b) Adjustments to basic limitation for form of benefit. If the benefit under the plan is
other than the annual benefit described in subsection (a), then the benefit shall be adjusted so that
it is the equivalent of the annual benefit, using factors prescribed in Treasury Regulations. If the
form of the benefit without regard to any automatic benefit increase feature is not a straight life
annuity or a qualified joint and survivor annuity, then the preceding sentence is applied by either
reducing the Code Section 415(b) limit applicable at the annuity starting date or adjusting the form
of benefit to an actuarially equivalent amount (determined using the assumptions specified in
Treasury Regulation Section 1.415(b)-l(c)(2)(ii)) that takes into account the additional benefits
under the form of benefit as follows:
(1) For a benefit paid in a form to which section 417(e)(3) of the code does not apply
(generally, a monthly benefit), the actuarially equivalent straight life annuity
benefit that is the greater of:
a. The annual amount of the straight life annuity (if any) payable to the
member under the plan commencing at the same annuity starting date as the
form of benefit to the member, or
b. The annual amount of the straight life annuity commencing at the same
annuity starting date that has the same actuarial present value as the form of
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benefit payable to the member, computed using a 5 percent interest
assumption (or the applicable -statutory interest assumption) and (I) for years
prior to January 1, 2009, the applicable mortality tables described in
Treasury Regulation Section 1.417(e)-1(d)(2) (Revenue Ruling 2001-62 or
any subsequent Revenue Ruling modifying the applicable provisions of
Revenue Rulings 2001-62), and (ii) for years after December 31, 2008, the
applicable mortality tables described in section 417(e)(3)(B) of the code
(Notice 2008-85 or any subsequent Internal Revenue Service guidance
implementing section 417(e)(3)(B) of the code); or
(2) For a benefit paid in a form to which section 417(e)(3) of the code applies
(generally, a lump sum benefit), the actuarially equivalent straight life annuity
benefit that is the greatest of
a. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular form
of benefit payable, computed using the interest rate and mortality table, or
tabular factor, specified in the plan for actuarial experience;
b. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular form
of benefit payable, computed using a 5.5 percent interest assumption (or the
applicable statutory interest assumption) and (I) for years prior to January
1, 2009, the applicable mortality tables for the distribution under Treasury
Regulation Section 1.417(e)-1(d)(2) (the mortality table specified in
Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the
applicable provisions of Revenue Ruling 2001-62), and (ii) for years after
December 31, 2008, the applicable mortality tables described in section
417(e)(3)(B) of the code (Notice 2008-85 or any subsequent Internal
Revenue Service guidance implementing section 417(e)(3)(B) of the code);
or
C. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular form
of benefit payable (computed using the applicable interest rate for the
distribution under Treasury Regulation Section 1.417(e)-1(d)(3) (the 30-
year Treasury rate (prior to January 1, 2007, using the rate in effect for the
month prior to retirement, and on and after January 1, 2007, using the rate
in effect for the first day of the plan year with a one-year stabilization
period)) and (1) for years prior to January 1, 2009, the applicable mortality
tables for the distribution under Treasury Regulation Section 1.417(e)-
I(d)(2) (the mortality table specified in Revenue Ruling 2001-62 or any
subsequent Revenue Ruling modifying the applicable provisions of
Revenue Ruling 2001-62), and (ii) for years after December 31, 2008, the
applicable mortality tables described in section 417(e)(3)(B) of the code
(Notice 2008-85 or any subsequent Internal Revenue Service guidance
implementing section 417(e)(3)(B) of the code), divided by 1.05.
(3) The actuary may adjust the 415(b) limit at the annuity starting date in accordance
with subsections (1) and (2) above.
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(c) Benefits not taken into account. For purposes of this Section, the following benefits
shall not be taken into account in applying these limits:
(1) Any ancillary benefit which is not directly related to retirement income benefits;
(2) 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)); and
(3) That portion of any joint and survivor annuity that constitutes a qualified joint and
survivor annuity.
(d) 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:
(1) A member's applicable limit will be applied to the member's annual benefit in the
member's first limitation year of benefit payments without regard to any automatic
cost of living adjustments;
(2) thereafter, in any subsequent limitation 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
(3) in no event shall a member's benefit payable under the system in any limitation year
be greater than the limit applicable at the annuity starring 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.
(e) Other adjustments in limitations.
(1) 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).
(2) 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 fire or police department of the City, the
adjustments provided for in (e)(1) above shall not apply.
(3) The reductions provided for in (e)(1) above shall not be applicable to disability
benefits pursuant to Sec. 46-23.8, or pre -retirement death benefits paid pursuant to
Sec. 46-23.7.
(4) In the event the member's retirement benefit becomes payable after age sixty-five
(65), for purposes of determining whether this benefit meets the limit set forth in
subsection (a) 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.
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(f) Less than ten (10) years of participation. The maximum retirement benefits
payable under this section to any member who has completed less than ten (10) years of
participation shall be the amount determined under subsection (a) of this section multiplied by a
fraction, the numerator of which is the number of the member's years of participation and the
denominator of which is ten (10). The reduction provided by this subsection cannot reduce the
maximum benefit below 10% of the limit determined without regard to this subsection. The
reduction provided for in this subsection shall not be applicable to pre -retirement disability benefits
paid pursuant to Sec. 46-23.8, or pre -retirement death benefits paid pursuant to Sec. 46-23.7.
(g) 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.
(h) Ten thousand dollar ($10,000) limit; less than ten years of service.
Notwithstanding anything in this Sec. 46-23.15, the retirement benefit payable with respect to a
member shall be deemed not to exceed the limit set forth in this subsection (h) of Sec. 46-23.15 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 limitation year and for any prior limitation year and the City has not
any time maintained a qualified defined contribution plan in which the member participated;
provided, however, that if the member has completed less than ten (10) years of credited service
with the City, the limit under this subsection (h) of Sec. 46-23.15 shall be a reduced limit equal to
ten thousand dollars ($10,000) 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).
(i) 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 in 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.
0) Service credit purchase limits.
(1) 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 allowed in Sections 46-
23.25 and 46-23.26, then the requirements of this section will be treated as met only
if.
a. 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
b. 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).
For purposes of applying subparagraph 0)(1)a., the System will not fail to meet the
reduced limit under Code Section 415(b)(2)(C) solely by reason of this
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subparagraph, and for purposes of applying subparagraph 0)(1)b. 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.
(2) For purposes of this subsection the term "permissive service credit" means service
credit
a. recognized by the system for purposes of calculating a member's benefit
under the plan,
b. which such member has not received under the plan, and
C. 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 0)(2)b., may include service credited in order
to provide an increased benefit for service credit which a member is receiving under
the system.
(k) Contribution Limits.
(1) For purposes of applying the Code Section 415(c) limits which are incorporated
by reference and for purposes of this subsection (k), only and for no other purpose,
the definition of compensation where applicable will be compensation actually paid
or made available during a limitation 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).
a. However, for limitation years beginning after December 31, 1997,
compensation will also include amounts that would otherwise be 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 limitation 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).
b. For limitation years beginning on and after January 1, 2007, compensation
for the limitation year will also include compensation paid by the later of
22 months after an employee's severance from employment or the end of
the limitation year that includes the date of the employee's severance from
employment if -
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1. 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
2. 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.
C. 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.
(2) 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:
a. 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).
b. If payment pursuant to subparagraph (k)(2)a. 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.
(3) If the annual additions for any member for a limitation year exceed the limitation
under section 415(c) of the code, the excess annual addition will be corrected as
permitted under the Employee Plans Compliance Resolution System (or similar
IRS correction program).
(4) For limitation years beginning on or after January 1, 2009, a member's
compensation for purposes of this subsection (k) shall not exceed the annual limit
under section 401(a)(17) of the code.
(1) Additional limitation on pension benefits. Notwithstanding anything herein to the
contrary:
(1) 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 contained in this section shall apply
to supplemental retirement benefits or to pension increases attributable to cost -of -
living increases or adjustments.
(2) 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
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pension from a different employer's retirement system or plan. This restriction does
not apply to social security benefits or federal benefits under Chapter 1223, Title
10, U.S. Code.
(m) Effect of Direct Rollover on 415(b) Limit. If the plan accepts a direct rollover of an
employee's or former employee's benefit from a defined contribution plan qualified under Code
Section 401(a) which is maintained by the employer, any annuity resulting from the rollover
amount that is determined using a more favorable actuarial basis than required under Code Section
417(e) shall be included in the annual benefit for purposes of the limit under Code Section
415(b).See. 46-23.16. Minimum Distribution of benefits.
(a) General rules.
(1) 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(a)(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.
(2) Precedence. The requirements of this section will take precedence over any
inconsistent provisions of the plan.
(3) TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this
section other than this subsection (a)(3), 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.
(b) Time and manner of distribution.
(1) 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.
For a member who attains age seventy and one-half (70 2) prior to January 1, 2020,
the member=s required beginning date is April 1 of the calendar year following the
later of (i) the calendar year in which the member attains age seventy and one-half
(70 2) or (ii) the calendar year in which the member terminates employment with
the City. For a member who attains age seventy and one-half (70 2) on or after
January 1, 2020, the member=s required beginning date is April 1 of the calendar
year following the later of (i) the calendar year in which the member attains age
seventy-two (72) or (ii) the calendar year in which the member terminates
employment with the City.
(2) 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:
a. 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, (or age
72 for a member who would have attained age 702 after December 31,
2019) if later, as the surviving spouse elects.
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b. 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 immediately following the calendar year
in which the member died.
C. 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.
d. 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 (b)(2), other than
subsection (b)(2)a., will apply as if the surviving spouse were the member.
For purposes of this subsection (b)(2), distributions are considered to begin
on the member's required beginning date or, if subsection (b)(2)d. applies,
the date of distributions are required to begin to the surviving spouse under
subsection (b)(2)a. If annuity payments irrevocably commence 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 (b)(2)a.) the date distributions are
considered to begin is the date distributions actually commence.
(3) 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.
(4) 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.
(c) Determination of amount to be distributed each year.
(1) 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:
a. The annuity distributions will be paid in periodic payments made at
intervals not longer than one year.
b. The member's entire interest must be distributed pursuant to Sec. 46-23.6,
Sec. 46-23.7, Sec. 46-23.9, or Sec. 46-23.10 (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
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spouse, or the member's beneficiary may not be recalculated after the initial
determination for purposes of determining benefits.
(2) 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 Sec. 46-23.7) 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.
(3) 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.
(d) General distribution rules.
(1) 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 40 1 (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.
(2) 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)(1) 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.
(e) Definitions.
(1) 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&A4, of the Treasury regulations.
(2) 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 Sec. 46-23.7.
Sec. 46-23.17. Miscellaneous provisions.
(a) Interest of members in system. 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.
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(b) No reduction of accrued benefits. No amendment or ordinance shall be adopted by
the City Council of the City of Clermont which shall have the effect of reducing the then vested
accrued benefits of members or a member's beneficiaries.
(c) 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(a) 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.
(d) Use of forfeitures. Forfeitures arising from terminations of service of members
shall serve only to reduce future city contributions.
(e) Prohibited Transactions. Effective as of January 1, 1989, a board may not engage
in a transaction prohibited by Code Section 503(b).
(f) 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.
(g) Vesting.
(1) 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
(2) 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.
(h) Electronic forms. 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.
(i) Compliance with Chapter 185, Florida Statutes. It is intended that the system will
continue to qualify for funding under F.S. ' determined based upon his actual years of Credited
Service. Accordingly, unless otherwise required by law, any provision of the system which
violates the requirements of F.S. ch. 185, as amended from time to time, shall be superseded by
and administered in accordance with the requirements of such chapter.
0) Missing Benefit Recipients. The System shall follow the procedures outlined in the
IRS Employee Plans Compliance Resolution System (EPCRS) Program and other applicable IRS
guidance to locate any missing individuals to whom a full unreduced benefit payment is due and
if, at the conclusion of such efforts, the individual cannot be located, the existing procedure of
cancelling payments otherwise due (provided that, if the individual is later located, the benefits
due shall be paid) will apply.
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., ORDINANCE NO.2021-012
Sec. 46-23.18. Repeal or termination of system.
(a) 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 alter-
ation, amendment, or repeal shall have accrued to the member or beneficiary shall not be affected
thereby..
(b) 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 F.S. ch. 121, 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 full vesting (100%) of benefits accrued to date of repeal
and such benefits shall be nonforfeitable.
(c) The fund shall be distributed in accordance with the following procedures:
(1) 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.
(2) 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 entitled to benefits under the plan as specified in subsection (3).
(3) 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 (2) 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
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.
(4) If there is asset value remaining after the full distribution specified in subsection
(3), 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.
(5) The board shall distribute, in accordance with subsection (2), the amounts
determined under subsection (3).
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
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this section, the Florida Department of Management Services will affect the termination of the
fund in accordance with this section.
Sec. 46-23.19. Domestic relations orders; retiree directed payments; Exemption from
execution, non -assignability.
(a) Domestic relations orders.
(1) 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.
(2) 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.
(b) 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 F.S. Chapter 185 and to
make any payments for child support or alimony.
(c) 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 and the accumulated contributions and the cash securities in the fund
created under this ordinance are hereby exempted from any state, county or municipal tax and shall
not be subject to execution, attachment, garnishment or any legal process whatsoever and shall be
unassignable.
Sec. 46-23.20. Pension validity.
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 ordinance 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.
Sec. 46-23.21. Forfeiture of pension.
(a) 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,
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except for the return of his accumulated contributions as of the date of termination. Specified
offenses are as follows:
(1) The committing, aiding or abetting of an embezzlement of public funds;
(2) The committing, aiding or abetting of any theft by a public officer or employee
from employer;
(3) Bribery in connection with the employment of a public officer or employee;
(4) Any felony specified in F.S. ch. 838;
(5) The committing of an impeachable offense;
(6) 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 employ-
ment position; or
(7) The committing on or after October 1, 2008, of any felony defined in F.S. Section
800.04, against a victim younger than sixteen (16) years of age, or any felony
defined in F.S. ch. 794, 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.
(b) 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
guilt is withheld and the accused is placed on probation; or a conviction by the senate of an
impeachable offense.
(c) 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.
(d) 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.
Sec. 46-23.22. Conviction and forfeiture; false, misleading or fraudulent statements.
(a) 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.
(b) A person who violates subsection (a) commits a misdemeanor of the first degree,
punishable as provided in F.S. ' 775.082 or ' 775.083.
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(c) In addition to any applicable criminal penalty, upon conviction for a violation
described in subsection (a), 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.
Sec. 46-23.23. Indemnification.
(a) 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.
(b) 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.
(c) 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.
Sec. 46-23.24. Direct transfers of eligible rollover distributions.
(a) Rollover distributions.
(1) 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 under 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.
(2) Definitions.
a. 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 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
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.�� ORDINANCE NO.2021-012
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.
b. 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 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 also apply in the case of
an eligible rollover distribution to the surviving spouse.
C. 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.
d. Direct rollover: A direct rollover is a payment by the plan to the eligible
retirement plan specified by the distributee.
(b) 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:
(1) 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 from 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.
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CITY OF CLERMONT
U : ORDINANCE NO.2021-012
(2) 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.
(c) 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 from the Plan only upon written request of the
Member and completion by the Member of a written election on forms designated by the Board,
to either receive a cash lump sum or to rollover the lump sum amount.
Sec. 46-23.25. 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.
Sec. 46-23.26. Military service prior to employment.
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, 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 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 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.
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. „ CITY OF CLERMONT
(,F�`r�O`+ ORDINANCE NO.2021-012
(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 lump sum payment upon receipt of which credited service shall be given or the
Member may elect to make payment for the requested Credited Service over a
period of time as provided for in paragraph (6) below. Vested Members may use
their Share Account balance to purchase this permissive service as provided for in
section 46-23.29(1) of this system. The transfer of these Share Account funds does
not convert the Share Account funds to employee contributions under this system.
(4) The maximum credit under this section, combined with Section 46-23.27, Prior
Police Service, shall be five (5) years.
(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.
(6) In lieu of the lump sum payment provided for in paragraph (3) above, a member
may elect to make payments over a period of time in order to fully pay the amount
provided for in paragraph (1). The member shall be required to notify the board, in
writing, of his election to make payments in the manner provided for in this
paragraph. The payment plan provided for in this paragraph shall be subject to the
following terms:
a. The principal amount to be paid shall be determined as set forth in paragraph
(1) above.
b. The original principal amount 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 and shall be reamortized annually to reflect
changes in the interest rate provided for in subparagraph c. below.
C. Payments shall consist of principal and interest at a rate equal to the
actuarially assumed rate of return on plan investments..
d. Payments shall be made by payroll deduction from each paycheck on an
after-tax basis.
e. 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.
f. In the event that the member's employment is terminated for any reason and
he is not entitled to any benefit from the system other than the return of the
amounts he has had deducted from his paycheck as his normal contribution
to the system, the amounts which the member has paid pursuant to this
subsection to purchase additional credited service, shall be returned to him
including all interest paid, however, no interest shall accrue on amounts paid
to purchase service.
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Sec. 46-23.27. Prior police service.
Unless otherwise prohibited by law, and except as provided for in Sec. 46-23.1, the years
or fractional parts of years that a member previously served as a full-time police officer with the
city during a period of previous employment and for which period accumulated contributions were
withdrawn from the fund, or 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 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 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) Multiple requests to purchase credited service pursuant to this section may be made
at any time prior to retirement.
(3) Payment by the police officer 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 lump sum payment upon receipt of which credited service shall be
given, or the Member may elect to make payment for the requested Credited
Service over a period of time as provided for in paragraph (7) below. Vested
Members may use their Share Account balance to purchase this permissive service
as provided for in section 46-23.29(1) of this system. The transfer of these Share
Account funds does not convert the Share Account funds to employee contributions
under this system.
(4) The maximum credit under this section for service other than with the City of
Clermont, combined with Section 46-23.26, Prior Military Service , 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 Clermont 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, 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 46-23.15, subsection (1)(2).
(6) 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 purchased by the member in the same manner as provided above 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 Sec. 46-23.1, above.
(7) In lieu of the lump sum payment provided for in paragraph (3) above, a member
may elect to make payments over a period of time in order to fully pay the amount
provided for in paragraph (1). The member shall be required to notify the board, in
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writing, of his election to make payments in the manner provided for in this
paragraph, The payment plan provided for in this paragraph shall be subject to the
following terms:
a. The principal amount to be paid shall be determined as set forth in paragraph
(1) above.
b. The original principal amount 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 and shall be reamortized annually to reflect
changes in the interest rate provided for in subparagraph c. below.
C. Payments shall consist of principal and interest at a rate equal to the
actuarially assumed rate of return on plan investments.
d. Payments shall be made by payroll deduction from each paycheck on an
after-tax basis.
e. 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.
In the event that the member's employment is terminated for any reason and
he is not entitled to any benefit from the system other than the return of the
amounts he has had deducted from his paycheck as his normal contribution
to the system, the amounts which the member has paid pursuant to this
subsection to purchase additional credited service, shall be returned to him
including all interest paid, however, no interest shall accrue on amounts paid
to purchase service.
Sec. 46-23.28. Reemployment after retirement
(a) Any retiree who is retired under this may be reemployed by any public or private
employer, and may receive compensation from that employment without limiting or restricting in
any way the retirement benefits payable under this system. Notwithstanding the previous sentence,
reemployment by the city shall be subject to the limitations set forth in this section.
(b) After normal retirement. Any retiree who is retired under normal retirement
pursuant to this system and who is reemployed as a police officer 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
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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.
(c) 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.
(d) After early retirement. Any retiree who is retired under early retirement pursuant
to this system and who subsequently becomes an employee of the city in any capacity shall
discontinue receipt of benefits from the system. If by virtue of that reemployment, the retiree is
eligible to participate in this system, 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, credited service and early retirement reduction
factor 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. Retirement pursuant to an early retirement incentive program shall be deemed
early retirement for purposes of this section if the member was permitted to retire prior to the
customary retirement date provided for in the system at the time of retirement.
(e) After disability retirement.
(1) Subject to paragraph (2) below, any retiree who is retired under section 46-
23.8, Disability (Adisability retiree@), may, subject to subsection (e),
physical examination requirement, of that section, be reemployed by any
public or private employer, and may receive compensation from that
employment without limiting or restricting in any way, the retirement
benefits payable under this system.
(2) Any disability retiree who subsequently becomes an employee of the city in
any capacity, except as a police officer, shall discontinue receipt of
disability benefits from the system for the period of any such employment.
(3) If a disability retiree is reemployed as a police officer for the city, his
disability benefit shall cease, and Sec. 46-23.8 shall apply.
(f) Reemployment 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 or
early retirees for purposes of applying the provisions of this section and their status as an early or
normal retiree shall be determined by the date they elect to begin to receive their benefit.
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(g) DROP participants. Retirees who were in the deferred retirement option plan shall,
following termination of employment after DROP participation, have the options provided for in
this section for reemployment.
Sec. 46-23.29. Supplemental benefit component for special benefits; Chapter 185 share
accounts.
There was established, effective January 26, 2016, an additional plan component to provide
special benefits in the form of a supplemental retirement, termination, death and disability benefit
to be in addition to the benefits provided for in the previous Sections of this plan, such benefit to
be funded solely and entirely by F.S. Chapter 185, premium tax monies for each plan year which
are allocated to this supplemental component as provided for in F.S. 1185.35. Effective January
26, 2016, the City shall 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 amount in excess of
the 2012 calendar year 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
allocated to this supplemental component (AShare Plan@), and shall be further allocated to the
members and DROP participants as follows:
(a) Individual Member Share Accounts. The board shall create individual "member
share accounts" for all actively employed plan members and DROP participants and maintain
appropriate books and records showing the respective interest of each member or DROP
participant hereunder. Each member or DROP participant shall have a member share account for
his share of the F.S. Chapter 185 tax revenues described above, forfeitures and income and expense
adjustments relating thereto. The board shall maintain separate member share accounts, however,
the maintenance of separate accounts is for accounting purposes only and a segregation of the
assets of the trust fund to each account shall not be required or permitted.
(b) Share Account Funding.
(1) Individual member share accounts were established as of January 26, 2016 for all
members and DROP participants who were actively employed as of January 26,
2016. Individual member share accounts shall be credited with an allocation as
provided for in the following subsection (c) of any premium tax monies which have
been allocated to the share plan for that plan year, beginning with the plan year
ending September 30, 2015.
(2) Any forfeitures as provided in subsection (d), shall be used as part of future
allocations to the individual member share accounts in accordance with the formula
set forth in subsection (c)(1).
(c) Allocation of Monies to Share Accounts.
(1) Allocation of Chapter 185 Contributions.
a. Initial Allocation. Effective January 26, 2016, the amount of any premium
tax monies allocated to the share plan were allocated to individual member
share accounts based on their completed months of credited service in
proportion to the combined completed months of credited service of all
participants.
All premium tax monies allocated to the share plan in any subsequent plan
year shall be allocated as provided for in this subsection. Available
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premium tax monies shall be allocated to individual member share accounts
at the end of each plan year on September 30 (a Avaluation date@).
b. Annual Allocations. On each valuation date, each current actively employed
member of the plan not participating in the DROP and each active DROP
participant shall receive a share allocation as follows:
C. The total funds subject to allocation on each valuation date shall be divided
equally among those persons eligible for an allocation and allocated to the
member share account of those eligible for an allocation.
d. Re-employed retirees shall be deemed new employees and shall receive an
allocation based solely on the credited service in the reemployment period.
(2) Allocation oflnvestment Gains and Losses. On each valuation date, each individual
member share account shall be adjusted to reflect the net earnings or losses resulting
from investments during the year. The net earnings or losses allocated to the
individual member share accounts shall be the same percentage which is earned or
lost by the total plan investments, including realized and unrealized gains or losses,
net of brokerage commissions, transaction costs and management fees.
Net earnings or losses are determined as of the last business day of the fiscal year,
which is the valuation date, and are debited or credited as of such date.
For purposes of calculating net earnings or losses on a member's share account
pursuant to this subsection, brokerage commissions, transaction costs, and
management fees for the immediately preceding fiscal year shall be determined for
each year by the investment consultant pursuant to contracts with fund managers as
reported in the custodial statement. The investment consultant shall report these
annual contractual fees to the board. The investment consultant shall also report
the net investment return for each manager and the net investment return for the
total plan assets.
(3) Allocation of Costs, Fees and Expenses. 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.
(4) No Right to Allocation. The fact of allocation or credit of an allocation to a
member's share account by the board shall not vest in any member, any right, title,
or interest in the assets of the trust or in the Chapter 185 tax revenues except at the
time or times, to the extent, and subject to the terms and conditions provided in this
Section.
(5) Members and DROP participants shall be provided annual statements setting forth
their share account balance as of the end of the plan year.
(d) Forfeitures. Any member who has less than five (5) years of service credit and
who is not otherwise eligible for payment of benefits after termination of employment with the
city as provided for in subsection (e) shall forfeit his individual member share account. Forfeited
amounts shall be included and used as part of the Chapter 185 tax revenues for future allocations
to individual member share accounts on each valuation date in accordance with the formula set
forth in subsection (c)(1).
(e) Eligibility For Benefits. Any member (or his beneficiary) or DROP participant who
terminates employment as a police officer with the City or who dies prior to a September 30
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valuation date shall, upon application filed with the board, be entitled to be paid the value of his
individual member share account, valued as of the immediately preceding valuation date, subject
to the following criteria:
(1) Retirement Benefit.
a. A member shall be entitled to one hundred percent (100%) of the value of
his share account upon normal or early retirement pursuant to Section 46-
23.6, or if the member enters the DROP, upon termination of employment.
b. Such payment shall be made as provided in subsection (f).
(2) Termination Benefit.
a. In the event that a member's employment as a police officer is terminated
by reason other than retirement, death or disability, he shall be entitled to
receive one hundred percent (100%) of the value of his share account, but
only if he is either partially or totally vested in accordance with Section 46-
23.9.
b. Such payment shall be made as provided in subsection (f).
(3) Disability Benefit.
a. In the event that a member is determined to be eligible for either an in -line
of duty disability benefit pursuant to Section 46-23.8, subsection (a) or a
not -in -line of duty disability benefit pursuant to Section 46-23.8, subsection
(c), he shall be entitled to one hundred percent (100%) of the value of his
share account.
b. Such payment shall be made as provided in subsection (f).
(4) Death Benefit.
a. In the event that a member or DROP participant dies while actively
employed as a police officer, one hundred percent (100%) of the value of
his member share account shall be paid to his designated Beneficiary as
provided in Section 46-23.7.
b. Such payment shall be made as provided in subsection (f).
(f) Payment of Benefits. Any person eligible for a share account benefit distribution
as provided for in (e) above, shall receive an amount equal to the share account balance as of the
immediately preceding valuation date (September 30). Payment of the calculated share account
balance shall be payable as soon as administratively practicable following the date of retirement,
termination, disability or death, but not later than one hundred fifty (150) days following the date
of retirement, termination, disability or death, and shall be paid in one lump sum payment, subject
to the provision for eligible rollover distributions provided for in Sec. 46-23.24. No optional forms
of payments shall be permitted.
(g) Benefits Not Guaranteed. All benefits payable under this Section 46-23.29 shall
be paid only from the assets accounted for in individual member share accounts. Neither the City
nor the board shall have any duty or liability to furnish any additional funds, securities or other
assets to fund share account benefits. 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 member share account balances, except due to his or its own
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negligence, willful misconduct or lack of good faith. All investments shall be made by the board
subject to the restrictions otherwise applicable to fund investments.
(h) Notional account. The member share account is a notional account, used only for
the purpose of calculation of the share distribution amount. It is not a separate account in the
system. There is no change in the system's assets, and there is no distribution available to the
member or DROP participant until the member's or DROP participant's termination from
employment. The member or DROP participant has no control over the investment of the share
account.
(i) No employer discretion. The share account benefit is determined pursuant to a
specific formula which does not involve employer discretion.
0) Maximum Additions. Notwithstanding any other provision of this Section, annual
additions under this Section shall not exceed the limitations of Section 415(c) of the code pursuant
to the provisions of Section 46-23.15, subsection (k).
(k) IRC limit. The share account distribution, along with other benefits payable from
the system, is subject to limitation under Internal Revenue Code Section 415(b).
(1) Use for Permissive Service Purchase. Vested Members may use their share account
balance to purchase permissive service as defined in sections 46-23.26 and 46-23.27 of this system.
The transfer of these funds does not convert the Share Account funds to employee contributions
under this system.
Sec. 46-23.30. Deferred Retirement Option Plan.
(a) Definitions. As used in this section 46-23.30, the following definitions apply:
(1) "DROP" -- The City of City of Clermont Police Officers' Retirement Plan Deferred
Retirement Option Plan.
(2) "DROP account" -- The account established for each DROP participant under
subsection (c).
(b) Participation.
(1) Eligibility to participate. In lieu of terminating his employment as a Police Officer,
any member who is eligible for normal retirement under the system may elect to
defer receipt of such service retirement pension and to participate in the DROP.
(2) Election to participate. A member's election to participate in the DROP must be
made in writing in a time and manner determined by the board and shall be effective
on the first day of the first calendar month which is at least fifteen (15) business
days after it is received by the board.
(3) Period of participation. A member who elects to participate in the DROP under
subsection (b)(2), shall participate in the DROP for a period not to exceed sixty
(60) months beginning at the time his election to participate in the DROP first
becomes effective. An election to participate in the DROP shall constitute an
irrevocable election to resign from the service of the city not later than the date
provided for in the previous sentence. A member may participate only once.
(4) Termination ofparticipation.
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a. A member's participation in the DROP shall cease at the earlier of
1. the end of his permissible period of participation in the DROP as
determined under subsection (b)(3); or
2. termination of his employment as a Police Officer.
b. Upon the member's termination of participation in the DROP, pursuant to
subsection 1 above, all amounts provided for in subsection (c)(2), including
monthly benefits and investment earnings and losses or interest, shall cease
to be transferred from the system to his DROP account. Any amounts
remaining in his DROP account shall be paid to him in accordance with the
provisions of subsection (d) when he terminates his employment as a Police
Officer.
C. A member who terminates his participation in the DROP under this
subsection (b)(4) shall not be permitted to again become a participant in the
DROP.
(5) Effect of DROPparticipation on the system.
a. A member's credited service and his accrued benefit under the system shall
be determined on the date his election to participate in the DROP first
becomes effective. For purposes of determining the accrued benefit, the
member's salary for the purposes of calculating his average final
compensation shall include an amount equal to any lump sum payments
which would have been paid to the member and included as salary as
defined herein, had the member retired under normal retirement and not
elected DROP participation. Member contributions attributable to any lump
sums used in the benefit calculation and not actually received by the
member shall be deducted from the first payments to the member's DROP
account. The member shall not accrue any additional credited service or any
additional benefits under the system (except for any supplemental benefit
payable to DROP participants or any additional benefits provided under any
cost -of -living adjustment for retirees in the system) while he is a participant
in the DROP. After a member commences participation, he shall not be
permitted to again contribute to the system nor shall he be eligible for
disability or pre -retirement death benefits, except as provided for in Sec.
46-23.28.
b. No amounts shall be paid to a member from the system while the member
is a participant in the DROP. Unless otherwise specified in the system, if a
member's participation in the DROP is terminated other than by terminating
his employment as a Police Officer, no amounts shall be paid to him from
the system until he terminates his employment as a Police Officer. Unless
otherwise specified in the system, amounts transferred from the system to
the member's DROP account shall be paid directly to the member only on
the termination of his employment as a Police Officer.
(c) Funding.
(1) Establishment of DROP account. A DROP account shall be established for each
member participating in the DROP. A member's DROP account shall consist of
amounts transferred to the DROP under subsection (c)(2), and earnings or interest
on those amounts.
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(2) Transfers from retirement system.
a. As of the first day of each month of a member's period of participation in
the DROP, the monthly retirement benefit he would have received under
the system had he terminated his employment as a Police Officer and
elected to receive monthly benefit payments thereunder shall be transferred
to his DROP account, except as otherwise provided for in subsection
(b)(4)b. A member's period of participation in the DROP shall be
determined in accordance with the provisions of subsections (b)(3) and
(b)(4), but in no event shall it continue past the date he terminates his
employment as a Police Officer.
b. Except as otherwise provided in subsection (b)(4)b., a member's DROP
account under this subsection (c)(2) shall be credited with interest at an
effective rate of six and one-half percent (6.5%) per annum compounded
monthly determined on the last business day of the prior month's ending
balance and credited to the member's DROP account as of such date (to be
applicable to all current and future DROP participants).
C. A member's DROP account shall only be credited with interest and monthly
benefits while the member is a participant in the DROP. A member's final
DROP account value for distribution to the member upon termination of
participation in the DROP shall be the value of the account at the end of the
month immediately preceding termination of participation plus any monthly
periodic additions made to the DROP account subsequent to the end of the
previous month, and prior to distribution. If a member fails to terminate
employment after participating in the DROP for the permissible period of
DROP participation, then beginning with the member's first month of
employment following the last month of the permissible period of DROP
participation, the member's DROP account will no longer be credited with
interest, nor will monthly benefits be transferred to the DROP account. All
such non -transferred amounts shall be forfeited and continue to be forfeited
while the member is employed by the police department, and no cost -of -
living adjustments shall be applied to the member's credit during such
period of continued employment. A member employed by the police
department after the permissible period of DROP participation will still not
be eligible for pre -retirement death or disability benefits and will not accrue
additional credited service except as provided for in section Sec. 46-23.28.
(d) Distribution of DROP accounts on termination of employment.
(1) Eligibilityfor benefits. A member shall receive the balance in his DROP account
in accordance with the provisions of this subsection (d) upon his termination of
employment as a Police Officer. Except as provided in subsection (d)(5), no
amounts shall be paid to a member from the DROP prior to his termination of
employment as a Police Officer.
(2) Form of distribution.
a. Distribution of his DROP account shall be made in a lump sum, subject to
the direct rollover provisions set forth in subsection (d)(6); or
b. The member may elect to have a partial lump sum amount paid to him or a
surviving beneficiary, less taxes, with the remainder of the distribution of
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his DROP account made in a lump sum, subject to the rollover provisions
set forth in subsection (d)(6).
Elections under this paragraph shall be in writing and shall be made in such time or
manner as the board shall determine. Notwithstanding the preceding, if a member
dies before his benefit is paid, his DROP account shall be paid to his beneficiary in
such optional form as his beneficiary may select. If no beneficiary designation is
made, the DROP account shall be distributed to the member's estate.
(3) Date of payment of distribution. Except as otherwise provided in this subsection
(d), distribution of a member's DROP account shall be made as soon as
administratively practicable following the member's termination of employment.
Distribution of the amount in a Member=s DROP account will not be made unless
the Member completes a written request for distribution and a written election, on
forms designated by the Board, to either receive a cash lump sum, a partial lump
sum and partial rollover amount, or a rollover of the full lump sum amount.
(4) Proof of death and right of beneficiary or other person. The board may require and
rely upon such proof of death and such evidence of the right of any beneficiary or
other person to receive the value of a deceased member's DROP account as the
board may deem proper and its determination of the right of that beneficiary or
other person to receive payment shall be conclusive.
(5) Distribution limitation. Notwithstanding any other provision of subsection (d), all
distributions from the DROP shall conform to the AMinimum Distribution Of
Benefits@ provisions as provided for herein.
(6) Direct rollover of certain distributions. This subsection applies to distributions
made on or after January 1, 2002. Notwithstanding any provision of the DROP to
the contrary, a distributee may elect to have any portion of an eligible rollover
distribution paid in a direct rollover as otherwise provided under the system in
section 46-23.24.
(e) Administration of DROP.
(1) Board administers the DROP. The general administration of the DROP, the
responsibility for carrying out the provisions of the DROP and the responsibility of
overseeing the investment of the DROP's assets shall be placed in the board. The
members of the board may appoint from their number such subcommittees with
such powers as they shall determine; may adopt such administrative procedures and
regulations as they deem desirable for the conduct of their affairs; may authorize
one or more of their number or any agent to execute or deliver any instrument or
make any payment on their behalf, may retain counsel, employ agents and provide
for such clerical, accounting, actuarial and consulting services as they may require
in carrying out the provisions of the DROP; and may allocate among themselves or
delegate to other persons all or such portion of their duties under the DROP, other
than those granted to them as trustee under any trust agreement adopted for use in
implementing the DROP, as they, in their sole discretion, shall decide. A trustee
shall not vote on any question relating exclusively to himself.
(2) Individual accounts, records and reports. The board shall maintain records
showing the operation and condition of the DROP, including records showing the
individual balances in each member's DROP account, and the board shall keep in
convenient form such data as may be necessary for the valuation of the assets and
liabilities of the DROP. The board shall prepare and distribute to members
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d;, CITY OF CLERMONT
.,a0obtq ORDINANCE NO.2021-012
participating in the DROP and other individuals or file with the appropriate
governmental agencies, as the case may be, all necessary descriptions, reports,
information returns, and data required to be distributed or filed for the DROP
pursuant to the Code and any other applicable laws.
(3) Establishment of rules. Subject to the limitations of the DROP, the board from time
to time shall establish rules for the administration of the DROP and the transaction
of its business. The board shall have discretionary authority to construe and
interpret the DROP (including but not limited to determination of an individual's
eligibility for DROP participation, the right and amount of any benefit payable
under the DROP and the date on which any individual ceases to be a participant in
the DROP). The determination of the board as to the interpretation of the DROP
or its determination of any disputed questions shall be conclusive and final to the
extent permitted by applicable law.
(4) Limitation of liability.
a. The trustees shall not incur any liability individually or on behalf of any
other individuals for any act or failure to act, made in good faith in relation
to the DROP or the funds of the DROP.
b. Neither the board nor any trustee of the board shall be responsible for any
reports furnished by any expert retained or employed by the board, but they
shall be entitled to rely thereon as well as on certificates furnished by an
accountant or an actuary, and on all opinions of counsel. The board shall
be fully protected with respect to any action taken or suffered by it in good
faith in reliance upon such expert, accountant, actuary or counsel, and all
actions taken or suffered in such reliance shall be conclusive upon any
person with any interest in the DROP.
(f) General provisions.
(1) The DROP is not a separate retirement plan. Instead, it is a program under which
a member who is eligible for normal retirement under the system may elect to
accrue future retirement benefits in the manner provided in this Sec. 46-23.30 for
the remainder of his employment, rather than in the normal manner provided under
the plan. Upon termination of employment, a member is entitled to a lump sum
distribution of his or her DROP account balance or may elect a rollover. The DROP
account distribution is in addition to the member's monthly benefit.
(2) Notional account. The DROP account established for such a member is a notional
account, used only for the purpose of calculation of the DROP distribution amount.
It is not a separate account in the system. There is no change in the system's assets,
and there is no distribution available to the member until the member's termination
from the DROP. The member has no control over the investment of the DROP
account.
(3) No employer discretion. The DROP benefit is determined pursuant to a specific
formula which does not involve employer discretion.
(4) IRC limit. The DROP account distribution, along with other benefits payable from
the system, is subject to limitation under Internal Revenue Code Section 415(b).
(5) Amendment of DROP. The DROP may be amended by an ordinance of the city at
any time and from time to time, and retroactively if deemed necessary or
appropriate, to amend in whole or in part any or all of the provisions of the DROP.
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CLP ORDINANCE NO.2021-012
However, except as otherwise provided by law, no amendment shall make it
possible for any part of the DROP's funds to be used for, or diverted to, purposes
other than for the exclusive benefit of persons entitled to benefits under the DROP.
No amendment shall be made which has the effect of decreasing the balance of the
DROP account of any member.
(6) Facility of payment. If a member or other person entitled to a benefit under the
DROP is unable to care for his affairs because of illness or accident or is a minor,
the board shall direct that any benefit due him shall be made only to a duly
appointed legal representative. Any payment so made shall be a complete discharge
of the liabilities of the DROP for that benefit.
(7) Information. Each member, beneficiary or other person entitled to a benefit, before
any benefit shall be payable to him or on his account under the DROP, shall file
with the board the information that it shall require to establish his rights and benefits
under the DROP.
(8) Written elections, notification.
a. Any elections, notifications or designations made by a member pursuant to
the provisions of the DROP shall be made in writing and filed with the board
in a time and manner determined by the board under rules uniformly
applicable to all employees similarly situated. The board reserves the right
to change from time to time the manner for making notifications, elections
or designations by members under the DROP if it determines after due
deliberation that such action is justified in that it improves the
administration of the DROP. In the event of a conflict between the
provisions for making an election, notification or designation set forth in
the DROP and such new administrative procedures, those new
administrative procedures shall prevail.
b. Each member or Retiree who has a DROP account shall be responsible for
furnishing the board with his current address and any subsequent changes
in his address. Any notice required to be given to a member or Retiree
hereunder shall be deemed given if directed to him at the last such address
given to the board and mailed by registered or certified United States mail.
If any check mailed by registered or certified United States mail to such
address is returned, mailing of checks will be suspended until such time as
the member or Retiree notifies the board of his address.
(9) Benefits not guaranteed. All benefits payable to a member from the DROP shall
be paid only from the assets of the member's DROP account and neither the city
nor the board shall have any duty or liability to furnish the DROP with any funds,
securities or other assets except to the extent required by any applicable law.
(10) Construction.
a. The DROP shall be construed, regulated and administered under the laws
of Florida, except where other applicable law controls.
b. The titles and headings of the subsections in this section 46-23.30 are for
convenience only. In the case of ambiguity or inconsistency, the text rather
than the titles or headings shall control.
(11) Forfeiture of retirement benefits. Nothing in this section shall be construed to
remove DROP participants from the application of any forfeiture provisions
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-( „ CITY OF CLERMONT
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applicable to the system. DROP participants shall be subject to forfeiture of all
retirement benefits, including DROP benefits.
(12) Effect of DROP participation on employment. Participation in the DROP is not a
guarantee of employment and DROP participants shall be subject to the same
employment standards and policies that are applicable to employees who are not
DROP participants.
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cff
CITY OF CLERMONT
Z ORDINANCE NO.2021-012
EXHIBIT B
CITY OF CLERMONT FIREFIGHTERS' RETIREMENT PLAN
Sec. 46-24.1 Definitions.
(a) 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 Participant's who purchase Credited Service with interest or at no cost to the Plan, only that
portion of any payment representing the amount attributable to the Participant's contributions
based on the applicable Participant contribution rate shall be included in Accumulated
Contributions.
Actuarial equivalent means a benefit or amount of equal value, based upon the unisex
mortality table promulgated by the Internal Revenue Service for purposes of Internal Revenue
Code Section 417(e)(3), and an interest rate equal to the investment return assumption set forth in
the last actuarial valuation report approved by the board. 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:
For a Full -Time Firefighter: one -twelfth (1/12) of the average salary 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 as a full-time firefighter, whichever is greater. A year shall be twelve (12)
consecutive months.
For a Volunteer Firefighter: one -twelfth (1A2) of 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.
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 Clermont, Florida.
Code means the Internal Revenue Code of 1986, as amended from time to time.
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Credited service means the total number of years and fractional parts of years of service,
rounded to the nearest completed month, as a firefighter during which the member made required
contributions to the Plan, omitting intervening years or fractional parts of years when such member
was not employed by the city as a firefighter. A member may voluntarily leave his accumulated
contributions in the fund for a period of five (5) years after leaving the employ of the Fire
department pending the possibility of being reemployed as a firefighter, without losing credit for
the time that he was a member of the system. If a vested member leaves the employ of the City,
his accumulated contributions will be returned only upon his written request. If a member who is
not vested is not reemployed as a firefighter with the Fire department within five (5) years, his
accumulated contributions, if one -thousand dollars ($1,000.00) or less shall be returned. If a
Member who is not vested is not re-employed 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 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 re-employment, a 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 firefighter repays into the fund the contributions he has withdrawn, with
interest, as determined by the board, within ninety (90) days after his re-employment.
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 firefighter with the city to perform training or service, shall be
added to his years of credited service for all purposes, including vesting, provided that:
(1) The member is entitled to re-employment under the provisions of USERRA.
(2) The member returns to his employment as a firefighter within one year from
the earlier of the date of his military discharge or his release from active service,
unless otherwise required by USERRA.
(3) The maximum credit for military service pursuant to this paragraph shall be
five (5) years.
(4) 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
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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.
Beginning January 1, 2009, to the extent required by section 414(u)(12) of the code, an
individual receiving differential wage payments (as defined under section 3401(h)(2) of the code)
from an employer shall be treated as employed by that employer, and the differential wage payment
shall be treated as compensation for purposes of applying the limits on annual additions under
section 415(c) of the code. This provision shall be applied to all similarly situated individuals in
a reasonably equivalent manner.
Effective date means December 20, 1960.
Full -Time Firefighter means any person employed full-time solely by the City fire
department who is certified as a Firefighter as a condition of employment in accordance with the
provisions of Section 633.35, Fl. Stat., and whose duty 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 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.
Plan year means the twelve (12) month period beginning October 1 and ending September
30 of the following year.
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 or entry into the deferred retirement option plan.
Salary means the fixed monthly remuneration paid a firefighter, plus all tax deferred, tax
sheltered, or tax exempt items of income derived from elective employee payroll deductions or
salary reductions; where, as in the case of Volunteer Firefighter, remuneration is based on actual
services rendered, salary will be total cash remuneration received yearly for such services, prorated
on a monthly basis. The remuneration paid a Firefighter by the City for a plan year excludes
bonuses. Effective October 1, 2019, the amount of annual overtime compensation that may be
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included in the calculation of a 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 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 firefighter
based on years of service as of February 14, 2014 or (b) the actual amount of accrued unused sick
or annual leave paid to the firefighter at retirement, regardless of whether the amount of sick or
annual leave was, at some time prior to retirement, reduced below the amount on February 14,
2014.
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
with Code Section 401 (a)(1 7)(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 member's or retiree's spouse under applicable law at the time benefits
become payable.
System means the City of Clermont Firefighters' Retirement Plan as contained herein and
all amendments thereto.
Volunteer Firefighter means any person whose name is carried on the active membership
roll of a constituted volunteer fire department or a combination of a paid and volunteer fire
department of any municipality or special fire control district and whose duty is to extinguish fires,
protect life, and to protect property. Compensation for services rendered by a Volunteer Firefighter
shall not disqualify him as a volunteer. A person shall not be disqualified as a Volunteer Firefighter
solely because he has other gainful employment. Any person who volunteers assistance at a fire,
but is not an active member of the department described herein is not a Volunteer Firefighter within
the meaning of this paragraph.
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(b) Masculine gender. The masculine gender, where used herein, unless the context
specifically requires otherwise, shall include both the feminine and masculine genders.
Sec. 46-24.2. Membership
(a) Conditions of eligibility. All firefighters as of the effective date, and all future new
firefighters, shall become members of this system as a condition of employment.
(b) Designation of beneficiary. Each firefighter shall complete a form prescribed by
the board designating a beneficiary or beneficiaries.
Sec. 46-24.3. Board of trustees.
(a) 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, shall be legal residents of
the city, who shall be appointed by the Clermont City Council, and two (2) of whom shall be
members of the system, who shall be elected by a majority of the firefighters 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 Clermont City Council.
Upon receipt of the fifth person's name, the Clermont City Council shall, as a ministerial duty,
appoint such person to the board 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 two (2)
year term unless he sooner vacates the office. Each resident trustee shall serve as trustee for a
period of two (2) years, unless he sooner vacates the office or is sooner replaced by the Clermont
City Council at whose pleasure he shall serve. Each member trustee shall serve as trustee for a
period of two (2) years, unless he sooner leaves the employment of the city as a 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. DROP participants can be
elected as but not vote for elected trustees. 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.
(b) 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.
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(c) 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 F.S. § 112.3143.
(d) 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.
(e) The duties and responsibilities of the board shall include, but not necessarily be
limited to, the following:
(1) To construe the provisions of the system and determine all questions arising
thereunder.
(2) To determine all questions relating to eligibility and membership.
(3) To determine and certify the amount of all retirement allowances or other
benefits hereunder.
(4) To establish uniform rules and procedures to be followed for administrative
purposes, benefit applications and all matters required to administer the system.
(5) To distribute to members, at regular intervals, information concerning the
system.
(6) To receive and process all applications for benefits.
(7) To authorize all payments whatsoever from the fund, and to notify the
disbursing agent, in writing, of approved benefit payments and other expenditures
arising through operation of the system and fund.
(8) 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.
(9) To perform such other duties as are required to prudently administer the
system.
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Sec. 46-24.4. Finances and fund management
Establishment and operation offund.
(a) 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 Firefighters' Retirement Plan.
(b) The actual custody and supervision of the fund (and assets thereof) shall be vested
in the board. Payment of benefits and disbursements from the fund shall be made by the disbursing
agent but only upon written authorization from the board.
(c) All funds of the Firefighters' Retirement Plan 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 he is liable for the safekeeping 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 Firefighters' Retirement
Plan. In lieu thereof, the board shall deposit the funds of the Firefighters' Retirement Plan in a
qualified public depository as defined in F.S. § 280.02, which depository with regard to such funds
shall conform to and be bound by all of the provisions of F.S. ch. 280. 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.
(d) 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:
(1) Current amounts of accumulated contributions of members on both an
individual and aggregate account basis, and
(2) Receipts and disbursements, and
(3) Benefit payments, and
(4) Current amounts clearly reflecting all monies, funds and assets whatsoever
attributable to contributions and deposits from the city, and
(5) All interest, dividends and gains (or losses) whatsoever, and
(6) Such other entries as may be properly required so as to reflect a clear and
complete financial report of the fund.
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(e) 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.
(f) The board shall have the following investment powers and authority:
(1) 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 Clermont City Council 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
contributions 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 in the fund and the board shall not be required to segregate or
invest separately any portion of the fund.
(2) 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:
a. Notwithstanding any limitation provided for in F.S. ch. 175, to the contrary
(unless such limitation may not be amended by local ordinance) or any
limitation in prior city ordinances to the contrary, all monies paid into or
held in 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 of the assets of
the fund at market value be invested in foreign securities.
b. 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.
C. 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, Revenue
Ruling 2011-1 IRS Notice 2012-6 and Revenue Ruling 2014-24, or
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successor rulings or guidance of similar import, and operated or maintained
exclusively for the commingling and collective investment of monies,
provided that the funds in the group trust consist exclusively of trust assets
held under plans qualified under section 401(a) of the code, individual
retirement accounts that are exempt under section 408(e) of the code,
eligible governmental plans that meet the requirements of section 457(b) of
the code, and governmental plans under 401(a)(24) of the code. For this
purpose, a trust includes a custodial account or separate tax -favored account
maintained by an insurance company that is treated as a trust under section
401(f) or under section 457(g)(3) of the code. 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.
1. Any collective or common group trust to
which assets of the fund are transferred pursuant to subsection c.
shall be adopted by the board as part of the plan by executing
appropriate participation, adoption agreements, and/or trust
agreements with the group trust's trustee.
2. The separate account maintained by the
group trust for the plan pursuant to subsection c. shall not be used
for, or diverted to, any purpose other than for the exclusive benefit
of the members and beneficiaries of the plan.
3. For purposes of valuation, the value of the
separate account maintained by the group trust for the plan shall be
the fair market value of the portion of the group trust held for the
plan, determined in accordance with generally recognized valuation
procedures.
(3) 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 F.S. §175.071, 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.
(4) 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.
(5) 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
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diminishment of the fund, except that due to his or its own negligence, willful
misconduct or lack of good faith.
(6) 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.
(7) 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
generally to exercise any of the powers of an owner with respect to stocks, bonds,
or other investments comprising the fund which it may deem to be to the best
interest of the fund to exercise.
(8) 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.
(9) 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.
(10) 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 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.
(11) The board shall sustain no liability whatsoever for the sufficiency of the
fund to meet the payments and benefits provided for herein.
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(12) 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.
(13) 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.
Sec. 46-24.5. Contributions
(a) Member contributions.
(1) Amount. Each member of the system shall be required to make regular
contributions to the fund in the amount of four percent (4.0%) 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 designation 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.
(2) Method. Such contributions shall be made by payroll deduction.
(b) State 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
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.
(c) City 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.
(d) 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 determined
by the board, and may not be used to reduce what would have otherwise been required city
contributions.
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Sec. 46-24.6. Benefit amounts and eligibility
(a) Normal retirement age and date. A member's normal retirement age is the earlier
of the attainment of age fifty-five (55) and the completion of ten (10) years of credited service, or
the completion of twenty (20) years of credited service, regardless of age. Each member shall
become one hundred percent (100%) vested in his accrued benefit at normal retirement age. A
member's normal retirement date shall be the first day of the month coincident with or next
following the date the member retires from the City after attaining normal retirement age.
(b) Normal retirement benefit.
For Full -Time Firefighters: A Full -Time Firefighter 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 the sum of two and one -
quarter percent (2.25%) of average final compensation times years of credited service earned prior
to October 1, 2002 and three percent (3.0%) of average final compensation times years of credited
service earned on and after October 1, 2002.
For Volunteer Firefighters: A Volunteer Firefighter 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 the greater of:
Five dollars ($5.00) a year multiplied by the years of credited volunteer
service, or
2. The sum of two and one -quarter percent (2.25%) of average final
compensation times years of credited service earned prior to October 1, 2002 and
three percent (3.0%) of average final compensation times years of credited service
earned on and after October 1, 2002.
The normal retirement benefit of a Volunteer Firefighter that changes status from a
Volunteer Firefighter to a Full -Time Firefighter shall be the sum of the accrued benefit as a
Volunteer Firefighter and the accrued benefit as a Full-time Firefighter.
(c) Early retirement date. A member 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 fifty
(50) and the completion of ten (10) years of credited service. Early retirement under the system is
retirement from employment with the city on or after the early retirement date and prior to the
normal retirement date.
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(d) Early retirement benefit. A member retiring hereunder on his early retirement date
may receive either a deferred or an immediate monthly retirement benefit payable in the same form
as for normal retirement as follows:
(1) A deferred monthly retirement benefit which shall commence on what
would have been his normal retirement date, determined based upon his actual years
of credited service as a firefighter and shall be continued on the first day of each
month thereafter. The amount of each such deferred monthly retirement benefit
shall be determined in the same manner as for retirement on his normal retirement
date, determined based upon his actual years of credited service, except that
credited service and average final compensation shall be determined as of his early
retirement date; or
(2) An immediate monthly retirement benefit which shall commence on his
early retirement date and shall be continued on the first day of each month
thereafter. The benefit payable shall be as determined in paragraph (1) above,
reduced by three percent (3.0%)for each year by which the commencement of
benefits precedes the date which would have been the member's normal retirement
date, determined based upon his actual years of credited service.
(e) 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-two (72) (or seventy and one-half (70'/Z) if
that age was reached before December 31, 2019) or the calendar year in which the member
terminates employment with the city.
Sec. 46-24.7. Pre -retirement death
(a) Death prior to vesting, not -in -line of duty. The beneficiary of a deceased member
who was not receiving monthly benefits or who was not yet vested or eligible for early or normal
retirement and dies not -in -line of duty shall receive a refund of one hundred (100) percent of the
member's accumulated contributions.
(b) Death after vesting, not -in -line of duty. The beneficiary of a deceased member who
was not receiving monthly benefits and who was vested and dies not -in -line of duty shall receive
the benefits otherwise payable to the member at the member's early or normal retirement date,
determined based on his actual years of credited service.
(c) 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 the benefit provided for in (d) below.
(d) Death after vesting, in -line of duty. If a member, other than a participant in the
DROP under Section 46-24.30 dies in -the -line -of -duty, the following benefits are payable:
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(1) If the member dies leaving a surviving spouse, the surviving spouse may
receive a monthly pension equal to one hundred percent (100%) of the monthly
salary being received by the member at the time of the member's death for the rest
of the surviving spouse's lifetime. Benefits provided by this paragraph supersede
any other distribution that may have been provided by the member's designation of
beneficiary. Such benefit ceases upon the surviving spouse's death, unless the
member's minor children survive the spouse as provided for in paragraph (d)(2) of
this subsection.
(2) If the surviving spouse dies and the member's minor children survive the
spouse, the monthly payments that otherwise would have been payable to such
surviving spouse shall be paid for the use and benefit of the member's child or
children under 18 years of age and unmarried until the 18th birthday of the
member's youngest child. Such monthly payments may be extended until the 25th
birthday of the member's child if the child is unmarried and enrolled as a full-time
student at an accredited institution. If there is more than one minor child, the
benefits shall be divided equally among the children. As each child reaches the
benefit termination age, the remaining eligible children will divide the benefits.
(3) If the member dies leaves no surviving spouse but is survived by a child or
children under 18 years of age and unmarried, the benefits provided by
subparagraph (1), shall be paid for the use and benefit of such member's child or
children under 18 years of age and unmarried until the 18th birthday of the
member's youngest child. Such monthly payments may be extended until the 25th
birthday of any of the member's children if the child is unmarried and enrolled as a
full-time student at an accredited institution. If there is more than one minor child,
the benefits shall be divided equally among the children. As each child reaches the
benefit termination age, the remaining eligible children will divide the benefits.
(4) If the member dies leaving no surviving spouse and no child or children
under 18 years of age and unmarried and no child under age 25 and unmarried and
enrolled as a full-time student, then the member's beneficiary shall receive the
greater of (I) the member's accrued benefit or (ii) 42% of the member's average
final compensation, with the applicable annuity amount payable for 10 years. If the
named beneficiary dies before the full 10 years of payments are made, the
remaining benefit payments will be paid in a lump sum to the estate of the
beneficiary.
(5) For purposes of determining whether a death is in -the -line -of -duty, the
presumption and additional presumption provided for in Sec. 46-24.8 (b)(l)and
(b)(2) shall apply.
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(6) In all cases, the benefits paid in subsections (1), (2) and (3) above will be at
least the member's accrued benefit paid for 10 years. In the event that the surviving
spouse or children's benefits cease due to death or reaching the age of majority as
provided for herein, the benefit will be paid to the estate of the survivor payee (i.e.
the surviving spouse or surviving children).
(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 age seventy-two (72) (or seventy and one-half (701/2) if that age was
reached before December 31, 2019).
(f) 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.
(g) Rebuttable presumptions of death in line of duty: The provisions of Sections 112.18,
112.181, and 175.231, Fla. Stat., are hereby codified within the Plan and are intended to be
incorporated by reference. The Board of Trustees shall adopt uniform administrative rules for the
resulting relating to these rebuttable presumptions and for the determination of any disqualifying
events reflected in Chapters 112 and 175, Fla. Stat.
(h) Non -rebuttable Conclusive cancer presumption in line of duty: The provisions of
Section 112.1816, Fla. Stat., are hereby codified within the Plan and are intended to be
incorporated by reference. The Board of Trustees shall adopt uniform administrative rules relating
to this presumption and for the determination of any disqualifying events as reflected in Chapters
112 and 175, Fla. Stat.
Sec. 46-24.8. Disability.
(a) 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 firefighter, which disability was
directly caused by the performance of his duty as a firefighter, shall, upon establishing the same
to the satisfaction of the board, be entitled to a monthly pension equal to the greater of (a) the
member's accumulated contributions at five percent (5.0%) interest or (b) the greater of (i) two
and one -quarter percent (2.25%) of average final compensation times years of credited service
earned prior to October 1, 2002 plus three percent (3.0%) of average final compensation times
years of credited service earned on and after October 1, 2002 or (ii) forty-two percent (42%) of the
average final compensation of the member. Eligibility requirements for disability benefits are set
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forth in subsection (g), below.
(b) In -line of duty presumptions.
(1) Rebuttable Presumption for hypertension and heart disease. Any condition
or impairment of health of a member caused by hypertension or heart disease shall
be presumed to have been suffered in the line of duty unless the contrary is shown
by competent evidence, provided such member shall have successfully passed a
physical examination upon entering into such service, 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.
(2) Additional rebuttable presumption for hepatitis, meningitis, and
tuberculosis. The presumption provided for in this subsection (b)(2) shall apply
only to those conditions described in this subsection that are diagnosed on or after
January 1, 1996.
a. Definitions. As used in this subsection (b)(2), the following
definitions apply:
1. '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 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.
2. "Emergency rescue or public safety member"
means any member employed full time by the city as a firefighter,
paramedic, emergency medical technician, law enforcement 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 F.S. ch. 395, or any person employed by a
subsidiary thereof.
3. "Hepatitis" means hepatitis A, hepatitis B,
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hepatitis non -A, hepatitis non-B, hepatitis C, or any other strain of
hepatitis generally recognized by the medical community.
4. "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:
i. 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.
5. "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.
b. 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 F.S.
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§92.50, verify by written declaration that, to the best of his knowledge and
belief
1. 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.
2. 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.
3. 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.
C. 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
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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 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.
d. 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.
e. Required medical tests; preemployment physical. In order
to be entitled to the presumption provided by this section:
1. An emergency rescue or public safety
member must, prior to diagnosis, have undergone standard,
medically acceptable 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.
2. 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) Non -rebuttable conclusive cancer presumption: The provisions of Section
112.1816, Fla. Stat., are hereby codified within the Plan and are intended to be
incorporated by reference. The Board of Trustees may, if necessary, adopt uniform
administrative rules for the conduct of hearings relating to this presumption and for
the determination of any disqualifying events as reflected in the statute.
(c) Disability 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,
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by reason of a medically determinable physical or mental impairment, to render useful and efficient
service as a firefighter, which disability is not directly caused by the performance of his duties as
a firefighter shall, upon establishing the same to the satisfaction of the board, be entitled to a
monthly pension equal to the greater of (a) the member's accumulated contributions at five percent
(5.0%) interest or (b) the greater of (i) two and one -quarter percent (2.25%) of average final
compensation times years of credited service earned prior to October 1, 2002 plus three percent
(3.0%) of average final compensation times years of credited service earned on and after October
1, 2002; or (c) 25% of the member's average final compensation. A member determined to be
totally and permanently disabled from a non -service connected injury or disease and who has not
completed ten (10) years of service shall receive a return of accumulated contributions with 5%
interest. Eligibility requirements for disability benefits are set forth in subsection (g), below.
(d) Conditions 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:
(1) Excessive or habitual use of any drugs, intoxicants or narcotics.
(2) Injury or disease sustained while willfully and illegally participating in fights, riots
or civil insurrections or while committing a crime.
(3) Injury or disease sustained while serving in any branch of the Armed Forces.
(4) Injury or disease sustained by the member after his employment as a firefighter
with the city of Clermont shall have terminated.
(5) Injury or disease sustained by the member while working for anyone other than the
city and arising out of such employment.
(e) 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 finds 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 firefighter, the board shall
recommend to the city that the retiree be returned to performance of duty as a firefighter, and the
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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
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.
(f) Disability payments. 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 determines 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:
(1) If the retiree recovers from the disability, the payment due next preceding
the date of such recovery, or
(2) 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 46-
24.10, subsection (a)(1) or (a)(2), which shall be the actuarial equivalent of the normal form of
benefit.
(g) Eligibility for Disability Benefits. Subject to (g)(4) below, only active members of
the system on the date the board determines entitlement to a disability benefit are eligible for
disability benefits.
(1) Terminated persons, either vested or non -vested, are not eligible for
disability benefits.
(2) If a member voluntarily terminates his employment, either before or after
filing an application for disability benefits, he is not eligible for disability benefits.
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(3) If a member is terminated by the City for any reason other than for medical
reasons, either before or after he files an application for disability benefits, he is not
eligible for disability benefits.
(4) The only exception to (1) above is:
a. If the member is terminated by the City for medical reasons
and he has already applied for disability benefits before the medical
termination, or;
b. If the member is terminated by the City for medical reasons
and he applies within 30 days after the medical termination date.
If either (4)a., or (4)b. above applies, the member's application will be processed
and fully considered by the board.
Sec. 46-24.9. Vesting.
If a member terminates his employment as a 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:
(a) 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.
(b) If the member has more than five (5), but less than ten (10) years of credited service
upon termination, the member shall be entitled to a monthly retirement benefit, determined in the
same manner as for normal or early 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 normal or early retirement date, based on his actual years of
credited service, provided he does not elect to withdraw his accumulated contributions and
provided the member survives to his otherwise normal or early retirement date in accordance with
the following schedule:
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Years of Service Vested Percentage (%)
5 50%
6 60%
7 70%
8 80%
9 90%
For purposes of this section only, a member may start drawing his vested accrued
benefit at age fifty-five (55). An early retirement deduction will be based on the years between
age fifty-five (55) and his early retirement date.
(c) If the member has more than ten (10) years of credited service upon termination,
the member shall be entitled to a monthly retirement benefit, determined in the same manner as
for normal or early 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 normal or early retirement date, based upon his actual years of
credited service, provided he does not elect to withdraw his accumulated contributions and
provided the member survives to his otherwise normal or early retirement date
(d) If the member does not withdraw his accumulated contributions and does not
survive to his otherwise normal or early 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.
Sec. 46-24.10. Optional forms of benefits
(a) In lieu of the amount and form of retirement income payable in the event of normal
or early 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:
(1) A retirement income of a monthly amount payable to the retiree for his
lifetime only.
(2) A retirement income of a modified monthly amount, payable to the retiree
during the lifetime of the retiree and following the death of the retiree, one hundred
(100) percent, seventy-five (75) percent, sixty-six and two-thirds (66-2/3) percent
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or fifty (50) percent 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)
(3) 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.
(4) For Members who do not participate in the DROP pursuant to Section 46-
24.30, the member may elect a percentage of benefit in a lump sum as follows:
a. Five percent (5%) of the total actuarial equivalent value of
the benefit paid as a lump sum with the remaining ninety-five percent
(95%) paid under the normal form or as per (1), (2), or (3) above.
b. Ten percent (10%) of the total actuarial equivalent value of
the benefit paid as a lump sum with the remaining ninety percent (90%) paid
under the normal form or as per (1), (2), or (3) above.
C. Fifteen percent (15%) of the total actuarial equivalent value
of the benefit paid as a lump sum with the remaining eighty-five percent
(85%) paid under the normal form or as per (1), (2), or (3) above.
d. Twenty percent (20%) of the total actuarial equivalent value
of the benefit paid as a lump sum with the remaining eighty percent (80%)
paid under the normal form or as per (1), (2), or (3) above.
(b) The member, upon electing any option of this section, will designate the joint
pensioner (subsection (a)(2) 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
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has deceased for purposes of calculating the new payment.
(c) 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.
(d) 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 46-24.11.
(e) 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:
(1) If a member dies prior to his normal retirement date or early 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 46-24.7.
(2) 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 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.
(3) 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 (a), 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 46-24.11.
(4) If a member continues beyond his normal retirement date pursuant to the
provisions of section 46-24.6, subsection (a), and dies prior to his actual retirement
and while an option made pursuant to the provisions of this section is in effect,
monthly retirement income payments will be made, or a retirement 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
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on the date on which his death occurred.
(5) 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-two (72) (or seventy and one-half
(70'/2) if that age was reached before December 31, 2019) or the calendar year in
which the member terminates employment with the City.
(f) A retiree may not change his retirement option after the date of cashing or
depositing his first retirement check.
(g) 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 ($1,000.00). 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.
Sec. 46-24.11. Beneficiaries.
(a) 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.
(b) If a deceased member or retiree failed to name a beneficiary in the manner
prescribed in subsection (a), 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.
(c) 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.
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Sec. 46-24.12. Claims procedures.
(a) 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.
(b) 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.
Sec. 46-24.13. 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 F.S. § 175.261.
Sec. 46-24.14. 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.
Sec. 46-24.15. Maximum pension.
(a) 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 415
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 415(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.
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For purposes of Code Section 415(b), the "annual benefit" means a benefit payable
annually in the form of a straight life annuity (with no ancillary benefits) without regard to the
benefit attributable to after-tax employee contributions (except pursuant to Code Section 415(n)
and to rollover contributions (as defined in Code Section 415(b)(2)(A)). The "benefit attributable"
shall be determined in accordance with Treasury Regulations.
(b) Adjustments to basic limitation for form of benefit. If the benefit under the plan is
other than the annual benefit described in subsection (a), then the benefit shall be adjusted so that
it is the equivalent of the annual benefit, using factors prescribed in Treasury Regulations. If the
form of the benefit without regard to any automatic benefit increase feature is not a straight life
annuity or a qualified joint and survivor annuity, then the preceding sentence is applied by either
reducing the Code Section 415(b) limit applicable at the annuity starting date or adjusting the form
of benefit to an actuarially equivalent amount (determined using the assumptions specified in
Treasury Regulation Section 1.415(b)-1(c)(2)(ii)) that takes into account the additional benefits
under the form of benefit as follows:
(1) For a benefit paid in a form to which section 417(e)(3) of the code does not
apply (generally, a monthly benefit), the actuarially equivalent straight life annuity
benefit that is the greater of
a. The annual amount of the straight life annuity (if any)
payable to the member under the plan commencing at the same annuity
starting date as the form of benefit to the member, or
b. The annual amount of the straight life annuity commencing
at the same annuity starting date that has the same actuarial present value as
the form of benefit payable to the member, computed using a 5 percent
interest assumption (or the applicable statutory interest assumption) and (I)
for years prior to January 1, 2009, the applicable mortality tables described
in Treasury Regulation Section 1.417(e)-1(d)(2) (Revenue Ruling 2001-62
or any subsequent Revenue Ruling modifying the applicable provisions of
Revenue Rulings 2001-62), and (ii) for years after December 31, 2008, the
applicable mortality tables described in section 417(e)(3)(B) of the code
(Notice 2008-85 or any subsequent Internal Revenue Service guidance
implementing section 417(e)(3)(B) of the code); or
(2) For a benefit paid in a form to which section 417(e)(3) of the code applies
(generally, a lump sum benefit), the actuarially equivalent straight life annuity
benefit that is the greatest of
a. The annual amount of the straight life annuity commencing
at the annuity starting date that has the same actuarial present value as the
particular form of benefit payable, computed using the interest rate and
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mortality table, or tabular factor, specified in the plan for actuarial
experience;
b. The annual amount of the straight life annuity commencing
at the annuity starting date that has the same actuarial present value as the
particular form of benefit payable, computed using a 5.5 percent interest
assumption (or the applicable statutory interest assumption) and (I) for years
prior to January 1, 2009, the applicable mortality tables for the distribution
under Treasury Regulation Section 1.417(e)-1(d)(2) (the mortality table
specified in Revenue Ruling 2001-62 or any subsequent Revenue Ruling
modifying the applicable provisions of Revenue Ruling 2001-62), and (ii)
for years after December 31, 2008, the applicable mortality tables described
in section 417(e)(3)(B) of the code (Notice 2008-85 or any subsequent
Internal Revenue Service guidance implementing section 417(e)(3)(B) of
the code); or
C. The annual amount of the straight life annuity commencing
at the annuity starting date that has the same actuarial present value as the
particular form of benefit payable (computed using the applicable interest
rate for the distribution under Treasury Regulation Section 1.417(e)-1(d)(3)
(the 30-year Treasury rate (prior to January 1, 2007, using the rate in effect
for the month prior to retirement, and on and after January 1, 2007, using
the rate in effect for the first day of the plan year with a one-year
stabilization period)) and (I) for years prior to January 1, 2009, the
applicable mortality tables for the distribution under Treasury Regulation
Section 1.417(e)-1(d)(2) (the mortality table specified in Revenue Ruling
2001-62 or any subsequent Revenue Ruling modifying the applicable
provisions of Revenue Ruling 2001-62), and (ii) for years after December
31, 2008, the applicable mortality tables described in section 417(e)(3)(B)
of the code (Notice 2008-85 or any subsequent Internal Revenue Service
guidance implementing section 417(e)(3)(B) of the code), divided by 1.05.
(3) The actuary may adjust the 415(b) limit at the annuity starting date in
accordance with subsections (1) and (2) above.
(c) Benefits not taken into account. For purposes of this Section, the following benefits
shall not be taken into account in applying these limits:
(1) Any ancillary benefit which is not directly related to retirement income
benefits;
(2) 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
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Code Section 415(b)(1)); and
(3) That portion of any joint and survivor annuity that constitutes a qualified
joint and survivor annuity.
(d) 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:
(1) A member's applicable limit will be applied to the member's annual benefit
in the member's first limitation year of benefit payments without regard to any
automatic cost of living adjustments;
(2) thereafter, in any subsequent limitation 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
(3) in no event shall a member's benefit payable under the system in any
limitation 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.
(e) Other adjustments in limitations.
(1) 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).
(2) 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 fire or police department of the City,
the adjustments provided for in (e)(1) above shall not apply.
(3) The reductions provided for in (e)(1) above shall not be applicable to
disability benefits pursuant to Sec. 46-24.8, or pre -retirement death benefits paid
pursuant to Sec. 46-24.7.
(4) In the event the member's retirement benefit becomes payable after age
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sixty-five (65), for purposes of determining whether this benefit meets the limit set
forth in subsection (a) 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.
(f) Less than ten (10) years of participation. The maximum retirement benefits
payable under this section to any member who has completed less than ten (10) years of
participation shall be the amount determined under subsection (a) of this section multiplied by a
fraction, the numerator of which is the number of the member's years of participation and the
denominator of which is ten (10). The reduction provided by this subsection cannot reduce the
maximum benefit below 10% of the limit determined without regard to this subsection. The
reduction provided for in this subsection shall not be applicable to pre -retirement disability benefits
paid pursuant to Sec. 46-24.8, or pre -retirement death benefits paid pursuant to Sec. 46-24.7.
(g) 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.
(h) Ten thousand dollar ($10,000) limit; less than ten years of service.
Notwithstanding anything in this Sec. 46-24.15, the retirement benefit payable with respect to a
member shall be deemed not to exceed the limit set forth in this subsection (h) of Sec. 46-24.15 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 limitation year and for any prior limitation year and the City has not
any time maintained a qualified defined contribution plan in which the member participated;
provided, however, that if the member has completed less than ten (10) years of credited service
with the City, the limit under this subsection (h) of Sec. 46-24.15 shall be a reduced limit equal to
ten thousand dollars ($10,000) 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).
(i) 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 in 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
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covering such member.
6) Service credit purchase limits.
(1) 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 allowed in
Sections 46-24.25 and 46-24.26, then the requirements of this section will be treated
as met only if:
a. 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
b. 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).
For purposes of applying subparagraph 0)(1)a., the System will not fail to
meet the reduced limit under Code Section 415(b)(2)(C) solely by reason of this
subparagraph, and for purposes of applying subparagraph 0)(1)b. 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.
(2) For purposes of this subsection the term "permissive service credit" means
service credit —
a. recognized by the system for purposes of calculating a
member's benefit under the plan,
b. which such member has not received under the plan, and
C. 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 0)(2)b., may include service credited in order
to provide an increased benefit for service credit which a member is receiving under
the system.
(k) Contribution Limits.
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(1) For purposes of applying the Code Section 415(c) limits which are
incorporated by reference and for purposes of this subsection (k), only and for no
other purpose, the definition of compensation where applicable will be
compensation actually paid or made available during a limitation 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).
a. However, for limitation years beginning after December 31,
1997, compensation will also include amounts that would otherwise be
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 limitation 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).
b. For limitation years beginning on and after January 1, 2007,
compensation for the limitation year will also include compensation paid by
the later of 2'/z months after an employee's severance from employment or
the end of the limitation year that includes the date of the employee's
severance from employment if-
1 . 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
2. 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.
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C. 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.
(2) 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:
a. 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).
b. If payment pursuant to subparagraph (k)(2)a. 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.
(3) If the annual additions for any member for a limitation year exceed the
limitation under section 415(c) of the code, the excess annual addition will be
corrected as permitted under the Employee Plans Compliance Resolution System
(or similar IRS correction program).
(4) For limitation years beginning on or after January 1, 2009, a member's
compensation for purposes of this subsection (k) shall not exceed the annual limit
under section 401(a)(17) of the code.
(1) Additional limitation on pension benefits. Notwithstanding anything herein to the
contrary:
(1) 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 contained in this section shall apply
to supplemental retirement benefits or to pension increases attributable to cost -of -
living increases or adjustments.
(2) 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
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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 1223,
Title 10, U.S. Code.
(m) Effect of Direct Rollover on 415(b) Limit. If the plan accepts a direct rollover of an
employee's or former employee's benefit from a defined contribution plan qualified under Code
Section 401(a) which is maintained by the employer, any annuity resulting from the rollover
amount that is determined using a more favorable actuarial basis than required under Code Section
417(e) shall be included in the annual benefit for purposes of the limit under Code Section 415(b).
Sec. 46-24.16. Minimum Distribution of benefits.
(a) General rules.
(1) 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
441(a)(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.
(2) Precedence. The requirements of this section will take precedence over any
inconsistent provisions of the plan.
(3) TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions
of this section other than this subsection (a)(3), 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.
(b) Time and manner of distribution.
(1) 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-two (72) (or
seventy and one-half (701/z) if that age was reached before December 31, 2019) or
the calendar year in which the member terminates employment with the city.
(2) Death of member before distributions begin. If the member dies before
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distributions begin, the member's entire interest will be distributed, or begin to be
distributed no later than as follows:
a. 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 seventy-two
(72) (or seventy and one-half (70'/2) if that age was reached before
December 31, 2019) , if later, as the surviving spouse elects.
b. 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 immediately following the
calendar year in which the member died.
C. 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.
d. 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 (b)(2), other than
subsection (b)(2)a., will apply as if the surviving spouse were the member.
For purposes of this subsection (b)(2), distributions are considered to begin
on the member's required beginning date or, if subsection (b)(2)d. applies,
the date of distributions are required to begin to the surviving spouse under
subsection (b)(2)a. If annuity payments irrevocably commence 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 (b)(2)a.) the date distributions are
considered to begin is the date distributions actually commence.
(3) 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.
(4) 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
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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.
(c) Determination of amount to be distributed each year.
(1) 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:
a. The annuity distributions will be paid in periodic payments
made at intervals not longer than one year.
b. The member's entire interest must be distributed pursuant to
Sec. 46-24.6, Sec. 46-24.7, Sec. 46-24.9, or Sec. 46-24.10 (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 may not be recalculated after the initial
determination for purposes of determining benefits.
(2) 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 Sec. 46-24.7) 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.
(3) 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.
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(d) General distribution rules.
(1) 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 40 1 (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.
(2) 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.
(e) Definitions.
(1) 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.
(2) 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 Sec.
46-24.7.
Sec. 46-24.17. Miscellaneous provisions
(a) Interest of members in system. 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.
(b) No reduction of accrued benefits. No amendment or ordinance shall be adopted by
the City Council of the City of Clermont which shall have the effect of reducing the then vested
accrued benefits of members or a member's beneficiaries.
(c) 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(a) and a governmental plan under code section 414(d), as now in effect or hereafter
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- ORDINANCE NO.2021-012
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.
(d) Use of foreitures. Forfeitures arising from terminations of service of members
shall serve only to reduce future city contributions.
(e) Prohibited Transactions. Effective as of January 1, 1989, a board may not engage
in a transaction prohibited by Code Section 503(b).
(f) 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.
(g) Vesting.
(1) 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
(2) 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.
(h) Electronic forms. 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.
(i) Compliance with Chapter 175, Florida Statutes. It is intended that the system will
continue to qualify for funding under F.S. § 175.091 determined based upon his actual years of
Credited Service. Accordingly, unless otherwise required by law, any provision of the system
which violates the requirements of F.S. ch. 175, as amended from time to time, shall be superseded
by and administered in accordance with the requirements of such chapter.
0) IRS Compliance:
(1) It is intended that the Plan be administered at all times in
accordance with the provisions of the Internal Revenue Code and the
corresponding Treasury Regulations applicable to a governmental defined
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benefit retirement plan.
(2) In recognition of the changing requirements of plan
qualification, the Board shall adopt an administrative policy setting forth
the required provisions for tax qualification. Such a policy shall be
amended by the Board as required to maintain continuing compliance with
the Internal Revenue Code and that policy and any amendments shall have
the force of law as if adopted by the City Commission.
(k) Missing Benefit Recipients. The System shall follow the procedures outlined in the
IRS Employee Plans Compliance Resolution System (EPCRS) Program and other applicable IRS
guidance to locate any missing individuals to whom a full unreduced benefit payment is due and
if, at the conclusion of such efforts, the individual cannot be located, the existing procedure of
cancelling payments otherwise due (provided that, if the individual is later located, the benefits
due shall be paid) will apply.
Sec. 46-24.18. Repeal or termination of system
(a) 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.
(b) 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 F.S. ch. 121, 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 full vesting (100%) of benefits accrued to date of repeal
and such benefits shall be nonforfeitable.
(c) The fund shall be distributed in accordance with the following procedures:
(1) 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
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until all nonforfeitable benefits have been funded.
(2) 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
firefighter entitled to benefits under the plan as specified in subsection (3).
(3) 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 (2) 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 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 firefighter.
(4) If there is asset value remaining after the full distribution specified in
subsection (3), 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.
(5) The board shall distribute, in accordance with subsection (2), the amounts
determined under subsection (3).
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 affect the termination of the
fund in accordance with this section.
Sec. 46-24.19. Domestic relations orders; retiree directed payments; Exemption from
execution, non -assignability.
(a) Domestic relations orders.
(1) 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.
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(2) 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.
(b) 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 F.S. Chapter 175 and to
make any payments for child support or alimony.
(c) 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 and the accumulated contributions and the cash securities in the fund
created under this ordinance are hereby exempted from any state, county or municipal tax and shall
not be subject to execution, attachment, garnishment or any legal process whatsoever and shall be
unassignable.
Sec. 46-24.20. Pension validity
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 ordinance 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.
Sec. 46-24.21. Forfeiture of pension
(a) 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:
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(1) The committing, aiding or abetting of an embezzlement of public funds;
(2) The committing, aiding or abetting of any theft by a public officer or
employee from employer;
(3) Bribery in connection with the employment of a public officer or employee;
(4) Any felony specified in F.S. ch. 838;
(5) The committing of an impeachable offense;
(6) 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
(7) The committing on or after October 1, 2008, of any felony defined in F.S.
Section 800.04, against a victim younger than sixteen (16) years of age, or any
felony defined in F.S. ch. 794, 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.
(b) 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
guilt is withheld and the accused is placed on probation; or a conviction by the senate of an
impeachable offense.
(c) 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.
(d) 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.
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Sec. 46-24.22. Conviction and forfeiture; false, misleading or fraudulent statements.
(a) 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.
(b) A person who violates subsection (a) commits a misdemeanor of the first degree,
punishable as provided in F.S. §775.082 or §775.083.
(c) In addition to any applicable criminal penalty, upon conviction for a violation
described in subsection (a), 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.
Sec. 46-24.23. Indemnification.
(a) 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.
(b) 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.
(c) 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. 46-24.24. Direct transfers of eligible rollover distributions
(a) Rollover distributions.
(1) 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 under 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.
(2) Definitions.
a. 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 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.
b. 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
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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 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 also apply in the case of
an eligible rollover distribution to the surviving spouse.
C. 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.
d. Direct rollover: A direct rollover is a payment by the plan to the
eligible retirement plan specified by the distributee.
(b) 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:
(1) 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 from 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.
(2) Member rollover contributions from IRAs. The system will accept a
member rollover contribution of the portion of a distribution from an individual
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retirement account or annuity described in section 408(a) or 408(b) of the Code that
is eligible to be rolled over.
(c) 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 from the Plan only upon written request of the
Member and completion by the Member of a written election on forms designated by the Board,
to either receive a cash lump sum or to rollover the lump sum amount.
Sec. 46-24.25. 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.
Sec. 46-24.26. Military service prior to employment
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
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conditions, prior to first and initial employment with the city 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 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.
a. The member salary used as the initial salary for the projected
salary will be the salary for the member for the year preceding each
purchase of service credits.
b. The calculation of the full actuarial cost will be made using
the assumptions used in the actuarial valuation performed prior to the
purchase of the service credits.
(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 lump sum payment upon receipt of which credited service shall be
given or the Member may elect to make payment for the requested Credited Service
over a period of time as provided for in paragraph (6) below. Vested Members may
use their Share Account balance to purchase this permissive service as provided for
in section 46-24.29(I) of this System. The transfer of these Share Account funds
does not convert the Share Account funds to employee contributions under this
System.
(4) The maximum credit under this section, combined with Section 46-24.27,
Prior Firefighter Service, shall be five (5) years.
(5) Credited service purchased pursuant to this section shall count for vesting,
benefit accrual, and for satisfying service requirements for benefits.
(6) In lieu of the lump sum payment provided for in paragraph (3) above, a
member may elect to make payments over a period of time in order to fully pay the
amount provided for in paragraph (1). The member shall be required to notify the
board, in writing, of his election to make payments in the manner provided for in
this paragraph, The payment plan provided for in this paragraph shall be subject to
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the following terms:
a. The principal amount to be paid shall be determined as set
forth in paragraph (1) above.
b. The original principal amount 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 and shall be re -amortized annually
to reflect changes in the interest rate provided for in subparagraph c. below.
C. Payments shall consist of principal and interest at a rate
equal to the actuarially assumed rate of return on plan investments..
d. Payments shall be made by payroll deduction from each
paycheck on an after-tax basis.
C. 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.
f. In the event that the member's employment is terminated for
any reason and he is not entitled to any benefit from the system other than
the return of the amounts he has had deducted from his paycheck as his
normal contribution to the system, the amounts which the member has paid
pursuant to this subsection to purchase additional credited service, shall be
returned to him including all interest paid, however, no interest shall accrue
on amounts paid to purchase service.
Sec. 46-24.27. Prior firefighter service
Unless otherwise prohibited by law, and except as provided for in Sec. 46-24.1, the years
or fractional parts of years that a member previously served as a full-time firefighter with the city
during a period of previous employment and for which period accumulated contributions were
withdrawn from the fund, or the years and fractional parts of years that a member served as a full-
time firefighter for any other municipal, county or state law enforcement department in the State
of Florida shall be added to his years of credited service provided that:
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(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.
a. The member salary used as the initial salary for the projected
salary will be the salary for the member for the year preceding each
purchase of service credits.
b. The calculation of the full actuarial cost will be made using
the assumptions used in the actuarial valuation performed prior to the
purchase of the service credits.
(2) Multiple requests to purchase credited service pursuant to this section may
be made at any time prior to retirement.
(3) Payment by the firefighter 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 lump sum payment upon receipt of which credited service
shall be given, or the Member may elect to make payment for the requested
Credited Service over a period of time as provided for in paragraph (7) below.
Vested Members may use their Share Account balance to purchase this permissive
service as provided for in section 46-24.29(1) of this System. The transfer of these
Share Account funds does not convert the Share Account funds to employee
contributions under this System.
(4) The maximum credit under this section for service other than with the City
of Clermont, combined with Section 46-24.26, Prior Military Service, shall be five
(5) years of credited service and shall count for all purposes. There shall be no
maximum purchase of credit for prior service with the City of Clermont 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, 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 46-24.15, subsection (1)(2).
(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
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may be purchased by the member in the same manner as provided above for federal,
other state, county or municipal service 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 under Sec. 46-24.1, above.
(7) In lieu of the lump sum payment provided for in paragraph (3) above, a
member may elect to make payments over a period of time in order to fully pay the
amount provided for in paragraph (1). The member shall be required to notify the
board, in writing, of his election to make payments in the manner provided for in
this paragraph, The payment plan provided for in this paragraph shall be subject to
the following terms:
a. The principal amount to be paid shall be determined as set
forth in paragraph (1) above.
b. The original principal amount 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 and shall be reamortized annually
to reflect changes in the interest rate provided for in subparagraph c. below.
C. Payments shall consist of principal and interest at a rate
equal to the actuarially assumed rate of return on plan investments.
d. Payments shall be made by payroll deduction from each
paycheck on an after-tax basis.
e. 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.
f. In the event that the member's employment is terminated for
any reason and he is not entitled to any benefit from the system other than
the return of the amounts he has had deducted from his paycheck as his
normal contribution to the system, the amounts which the member has paid
pursuant to this subsection to purchase additional credited service, shall be
returned to him including all interest paid, however, no interest shall accrue
on amounts paid to purchase service.
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Sec. 46-24.28. Reemployment after retirement
(a) Any retiree who is retired under this may be reemployed by any public or private
employer, and may receive compensation from that employment without limiting or restricting in
any way the retirement benefits payable under this system. Notwithstanding the previous sentence,
reemployment by the city shall be subject to the limitations set forth in this section.
(b) After normal retirement. Any retiree who is retired under normal retirement
pursuant to this system and who is reemployed as a 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.
(c) 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.
(d) After early retirement. Any retiree who is retired under early retirement pursuant
to this system and who subsequently becomes an employee of the city in any capacity shall
discontinue receipt of benefits from the system. If by virtue of that reemployment, the retiree is
eligible to participate in this system, 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, credited service and early retirement reduction
factor as of that date and the retirement benefit amount for any subsequent employment period
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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. Retirement pursuant to an early retirement incentive program shall be deemed
early retirement for purposes of this section if the member was permitted to retire prior to the
customary retirement date provided for in the system at the time of retirement.
(e) After disability retirement.
(1) Subject to paragraph (2) below, any retiree who is retired
under section 46-24.8, Disability ("disability retiree"), may, subject to
subsection (e), physical examination requirement, of that section, be
reemployed by any public or private employer, and may receive
compensation from that employment without limiting or restricting in any
way, the retirement benefits payable under this system, unless such
disability retiree is rehired as a firefighter or performing services which are
similar to firefighting services.
(2) Any disability retiree who subsequently becomes an
employee of the city in any capacity, except as a firefighter, shall
discontinue receipt of disability benefits from the system for the period of
any such employment.
(3) If a disability retiree is reemployed as a firefighter for the
city, his disability benefit shall cease and Sec. 46-24.8 shall apply.
(f) Reemployment 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 or
early retirees for purposes of applying the provisions of this section and their status as an early or
normal retiree shall be determined by the date they elect to begin to receive their benefit.
(g) DROP participants. Retirees who were in the deferred retirement option plan shall,
following termination of employment after DROP participation, have the options provided for in
this section for reemployment.
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Sec. 46-24.29. Supplemental benefit component for special benefits; Chapter 175 share
accounts.
There was established, effective January 24, 2017, an additional plan component to provide
special benefits in the form of a supplemental retirement, termination, death and disability benefit
to be in addition to the benefits provided for in the previous Sections of this plan, such benefit to
be funded solely and entirely by F.S. Chapter 175, premium tax monies for each plan year which
are allocated to this supplemental component as provided for in F.S. § 175.351. Effective January
24, 2017, the City shall use 100% of all future Chapter 175 annual distributions up to the amount
received in the 2012 calendar year ($188,967) and 50% of any future annual amount in excess of
the 2012 calendar year 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
allocated to this supplemental component ("Share Plan"), and shall be further allocated to the
members and DROP participants as follows:
(a) Individual Member Share Accounts. The board shall create individual "member
share accounts" for all actively employed plan members and DROP participants and maintain
appropriate books and records showing the respective interest of each member or DROP
participant hereunder. Each member or DROP participant shall have a member share account for
his share of the F. S. Chapter 175 tax revenues described above, forfeitures and income and expense
adjustments relating thereto. The board shall maintain separate member share accounts, however,
the maintenance of separate accounts is for accounting purposes only and a segregation of the
assets of the trust fund to each account shall not be required or permitted.
(b) Share Account Funding.
(1) Individual member share accounts were established as of January 24, 2017
for all members and DROP participants who were actively employed as of January
24, 2017. Individual member share accounts shall be credited with an allocation as
provided for in the following subsection (c) of any premium tax monies which have
been allocated to the share plan for that plan year, beginning with the plan year
ending September 30, 2015.
(2) Any forfeitures as provided in subsection (d), shall be used as part of future
allocations to the individual member share accounts in accordance with the formula
set forth in subsection (c)(1).
(c) Allocation of Monies to Share Accounts.
(1) Allocation of Chapter 175 Contributions.
a. Initial Allocation. Effective January 24, 2017, the amount
of any premium tax monies allocated to the share plan were allocated to
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individual member share accounts based on their completed months of
credited service in proportion to the combined completed months of
credited service of all participants.
All premium tax monies allocated to the share plan in any
subsequent plan year shall be allocated as provided for in this subsection.
Available premium tax monies shall be allocated to individual member
share accounts at the end of each plan year on September 30 (a `Valuation
date"). To be eligible for a distribution, an individual member must be
employed on September 30.
b. Annual Allocations. On each valuation date, each current
actively employed member of the plan not participating in the DROP, each
DROP participant and each retiree who retires or DROP participant who
has terminated DROP participation in the plan year ending on the valuation
date (including each disability retiree), or beneficiary of a deceased member
(not including terminated vested persons) who is otherwise eligible for an
allocation as of the valuation date shall receive a share allocation as follows:
C. The total funds subject to allocation on each valuation date
shall be divided equally among those persons eligible for an allocation and
allocated to the member share account of those eligible for an allocation.
d. Re-employed retirees shall be deemed new employees and
shall receive an allocation based solely on the credited service in the
reemployment period.
(2) Allocation of Investment Gains and Losses. On each valuation date, each
individual member share account shall be adjusted to reflect the net earnings or
losses resulting from investments during the year. The net earnings or losses
allocated to the individual member share accounts shall be the same percentage
which is earned or lost by the total plan investments, including realized and
unrealized gains or losses, net of brokerage commissions, transaction costs and
management fees.
Net earnings or losses are determined as of the last business day of the fiscal
year, which is the valuation date, and are debited or credited as of such date.
For purposes of calculating net earnings or losses on a member's share account
pursuant to this subsection, brokerage commissions, transaction costs, and
management fees for the immediately preceding fiscal year shall be determined for
each year by the investment consultant pursuant to contracts with fund managers as
reported in the custodial statement. The investment consultant shall report these
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annual contractual fees to the board. The investment consultant shall also report
the net investment return for each manager and the net investment return for the
total plan assets.
(3) Allocation of Costs, Fees and Expenses. 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.
(4) No Right to Allocation. The fact of allocation or credit of an allocation to a
member's share account by the board shall not vest in any member, any right, title,
or interest in the assets of the trust or in the Chapter 175 tax revenues except at the
time or times, to the extent, and subject to the terms and conditions provided in this
Section.
(5) Members and DROP participants shall be provided annual statements
setting forth their share account balance as of the end of the plan year.
(d) Forfeitures. Any member who has less than five (5) years of service credit and
who is not otherwise eligible for payment of benefits after termination of employment with the
city as provided for in subsection (e) shall forfeit his individual member share account. Forfeited
amounts shall be included and used as part of the Chapter 175 tax revenues for future allocations
to individual member share accounts on each valuation date in accordance with the formula set
forth in subsection (c)(1).
(e) Eligibility For Benefits. Any member (or his beneficiary) or DROP participant who
terminates employment as a firefighter with the City or who dies, upon application filed with the
board, shall be entitled to be paid the value of his individual member share account, subject to the
following criteria:
(1) Retirement Benefit.
a. A member shall be entitled to one hundred percent (100%)
of the value of his share account upon normal or early retirement pursuant
to Section 46-24.6, or if the member enters the DROP, upon termination of
employment.
b. Such payment shall be made as provided in subsection (f).
(2) Termination Benefit.
a. In the event that a member's employment as a firefighter is
terminated by reason other than retirement, death or disability, he shall be
entitled to receive one hundred percent (100%) of the value of his share
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account, but only if he is either partially or totally vested in accordance with
Section 46-24.9.
b. Such payment shall be made as provided in subsection (f).
(3) Disability Benefit.
a. In the event that a member is determined to be eligible for
either an in -line of duty disability benefit pursuant to Section 46-24.8,
subsection (a) or a not -in -line of duty disability benefit pursuant to Section
46-24.8, subsection (c), he shall be entitled to one hundred percent (100%)
of the value of his share account.
b. Such payment shall be made as provided in subsection (f).
(4) Death Benefit.
a. In the event that a member or DROP participant dies while
actively employed as a firefighter, one hundred percent (100%) of the value
of his member share account shall be paid to his designated Beneficiary as
provided in Section 46-24.7.
b. Such payment shall be made as provided in subsection (f).
(f) Payment of Benefits. If a member or DROP participant terminates employment for
any reason or dies and he or his beneficiary is otherwise entitled to receive the balance in the
member's share account, the member's share account shall be valued by the plan's actuary on the
next valuation date as provided for in subsection (c) above, following termination of employment.
Payment of the calculated share account balance shall be payable as soon as administratively
practicable following the valuation date, but not later than one hundred fifty (150) days following
the valuation date and shall be paid in one lump sum payment. No optional forms of payments
shall be permitted.
(g) Benefits Not Guaranteed. All benefits payable under this Section 46-24.29 shall
be paid only from the assets accounted for in individual member share accounts. Neither the City
nor the board shall have any duty or liability to furnish any additional funds, securities or other
assets to fund share account benefits. 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 member share account balances, except due to his or its own
negligence, willful misconduct or lack of good faith. All investments shall be made by the board
subject to the restrictions otherwise applicable to fund investments.
(h) Notional account. The member share account is a notional account, used only for
the purpose of calculation of the share distribution amount. It is not a separate account in the
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system. There is no change in the system's assets, and there is no distribution available to the
member or DROP participant until the member's or DROP participant's termination from
employment. The member or DROP participant has no control over the investment of the share
account.
(i) No employer discretion. The share account benefit is determined pursuant to a
specific formula which does not involve employer discretion.
0) Maximum Additions. Notwithstanding any other provision of this Section, annual
additions under this Section shall not exceed the limitations of Section 415(c) of the code pursuant
to the provisions of Section 46-24.15, subsection (k).
(k) IRC limit. The share account distribution, along with other benefits payable from
the system, is subject to limitation under Internal Revenue Code Section 415(b).
(1) Use for Permissive Service Purchase. Vested Members may use their share account
balance to purchase permissive service as defined in sections 46-24.26 and 46-24.27 of this
System. The transfer of these funds does not convert the Share Account funds to employee
contributions under this System.
Sec. 46-24.30. Deferred Retirement Option Plan
(a) Definitions. As used in this section 46-24.30, the following definitions apply:
(1) "DROP" -- The City of City of Clermont Firefighters' Retirement Plan
Deferred Retirement Option Plan.
(2) "DROP account" -- The account established for each DROP participant
under subsection (c).
(b) Participation.
(1) Eligihility to participate. In lieu of terminating his employment as a
Firefighter, any member who is eligible for normal retirement under the system
may elect to defer receipt of such service retirement pension and to participate in
the DROP.
(2) Election to participate. A member's election to participate in the DROP
must be made in writing in a time and manner determined by the board and shall
be effective on the first day of the first calendar month which is at least fifteen (15)
business days after it is received by the board.
(3) Period ofparticipation. A member who elects to participate in the DROP
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under subsection (b)(2), shall participate in the DROP for a period not to exceed
sixty (60) months beginning at the time his election to participate in the DROP first
becomes effective. An election to participate in the DROP shall constitute an
irrevocable election to resign from the service of the city not later than the date
provided for in the previous sentence. A member may participate only once.
(4) Termination of participation.
a. A member's participation in the DROP shall cease at the
earlier of:
1. the end of his permissible period of
participation in the DROP as determined under
subsection (b)(3); or
2. termination of his employment as a
Firefighter.
b. Upon the member's termination of participation in the
DROP, pursuant to subsection 1 above, all amounts provided for in
subsection (c)(2), including monthly benefits and investment earnings and
losses or interest, shall cease to be transferred from the system to his DROP
account. Any amounts remaining in his DROP account shall be paid to him
in accordance with the provisions of subsection (d) when he terminates his
employment as a Firefighter.
C. A member who terminates his participation in the DROP
under this subsection (b)(4) shall not be permitted to again become a
participant in the DROP.
(5) Effect of DROP participation on the system.
a. A member's credited service and his accrued benefit under
the system shall be determined on the date his election to participate in the
DROP first becomes effective. For purposes of determining the accrued
benefit, the member's salary for the purposes of calculating his average final
compensation shall include an amount equal to any lump sum payments
which would have been paid to the member and included as salary as
defined herein, had the member retired under normal retirement and not
elected DROP participation. Member contributions attributable to any lump
sums used in the benefit calculation and not actually received by the
member shall be deducted from the first payments to the member's DROP
account. The member shall not accrue any additional credited service or any
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ORDINANCE N0.2021-012
additional benefits under the system (except for any supplemental benefit
payable to DROP participants or any additional benefits provided under any
cost -of -living adjustment for retirees in the system) while he is a participant
in the DROP. After a member commences participation, he shall not be
permitted to again contribute to the system nor shall he be eligible for
disability or pre -retirement death benefits, except as provided for in Sec.
46-24.28.
b. No amounts shall be paid to a member from the system while
the member is a participant in the DROP. Unless otherwise specified in the
system, if a member's participation in the DROP is terminated other than by
terminating his employment as a Firefighter, no amounts shall be paid to
him from the system until he terminates his employment as a Firefighter.
Unless otherwise specified in the system, amounts transferred from the
system to the member's DROP account shall be paid directly to the member
only on the termination of his employment as a Firefighter.
(c) Funding.
(1) Establishment of DROP account. A DROP account shall be established for
each member participating in the DROP. A member's DROP account shall consist
of amounts transferred to the DROP under subsection (c)(2), and earnings or
interest on those amounts.
a. The credited service and vesting credits of a participant in
the DROP shall remain as they existed on the effective date of the DROP.
The DROP participant is not eligible for any additional credited service or
increases in salary after entry into DROP.
b. Payment for accrued unused leave earned before February
14, 2014 shall be made, at the option of the participant:
1. When commencing participation in the
DROP;
2. As the leave is actually used during
participation in the DROP; or
3. When the participant actually terminates
employment with the City.
(2) Transfers from retirement system.
a. As of the first day of each month of a member's period of
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CITY OF CLERMONT
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participation in the DROP, the monthly retirement benefit he would have
received under the system had he terminated his employment as a
Firefighter and elected to receive monthly benefit payments thereunder
shall be transferred to his DROP account, except as otherwise provided for
in subsection (b)(4)b. A member's period of participation in the DROP shall
be determined in accordance with the provisions of subsections (b)(3) and
(b)(4), but in no event shall it continue past the date he terminates his
employment as a Firefighter.
b. Except as otherwise provided in subsection (b)(4)b., a
member's DROP account under this subsection (c)(2) shall be credited with
interest at an effective rate of six and one-half percent (6.5%) per annum
compounded monthly determined on the last business day of the prior
month's ending balance and credited to the member's DROP account as of
such date (to be applicable to all current and future DROP participants).
C. A member's DROP account shall only be credited with
interest and monthly benefits while the member is a participant in the
DROP. A member's final DROP account value for distribution to the
member upon termination of participation in the DROP shall be the value
of the account at the end of the month immediately preceding termination
of participation plus any monthly periodic additions made to the DROP
account subsequent to the end of the previous month, and prior to
distribution. If a member fails to terminate employment after participating
in the DROP for the permissible period of DROP participation, then
beginning with the member's first month of employment following the last
month of the permissible period of DROP participation, the member's
DROP account will no longer be credited with interest, nor will monthly
benefits be transferred to the DROP account. All such non -transferred
amounts shall be forfeited and continue to be forfeited while the member is
employed by the Fire department, and no cost -of -living adjustments shall
be applied to the member's credit during such period of continued
employment. A member employed by the Fire department after the
permissible period of DROP participation will still not be eligible for pre -
retirement death or disability benefits and will not accrue additional credited
service except as provided for in section Sec. 46-24.28.
(d) Distribution of DROP accounts on termination of employment.
(1) Eligibility for benefits. A member shall receive the balance in his DROP
account within 30 days after the end of any calendar quarter following termination
of employment in accordance with the provisions of this subsection (d) upon his
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7 ORDINANCE NO.2021-012
termination of employment as a Firefighter. Except as provided in subsection
(d)(5), no amounts shall be paid to a member from the DROP prior to his
termination of employment as a Firefighter.
(2) Form of distribution.
a. Distribution of his DROP account shall be made in a lump
sum, subject to the direct rollover provisions set forth in subsection (d)(6);
or
b. The member may elect to have a partial lump sum amount
paid to him or a surviving beneficiary, less taxes, with the remainder of the
distribution of his DROP account made in a lump sum, subject to the
rollover provisions set forth in subsection (d)(6).
Elections under this paragraph shall be in writing and shall be made in such time or
manner as the board shall determine. Notwithstanding the preceding, if a member
dies before his benefit is paid, his DROP account shall be paid to his beneficiary in
such optional form as his beneficiary may select. If no beneficiary designation is
made, the DROP account shall be distributed to the member's estate.
(3) Date of payment of distribution. Except as otherwise provided in this subsection
(d), distribution of a member's DROP account shall be made as soon as
administratively practicable following the member's termination of employment.
Distribution of the amount in a Member's DROP account will not be made unless
the Member completes a written request for distribution and a written election, on
forms designated by the Board, to either receive a cash lump sum, a partial lump
sum and partial rollover amount, or a rollover of the full lump sum amount.
(4) Proof of death and right of beneficiary or other person. The board may require and
rely upon such proof of death and such evidence of the right of any beneficiary or
other person to receive the value of a deceased member's DROP account as the
board may deem proper and its determination of the right of that beneficiary or
other person to receive payment shall be conclusive.
(5) Distribution limitation. Notwithstanding any other provision of subsection (d), all
distributions from the DROP shall conform to the "Minimum Distribution Of
Benefits" provisions as provided for herein.
(6) Direct rollover of certain distributions. This subsection applies to distributions
made on or after January 1, 2002. Notwithstanding any provision of the DROP to
the contrary, a distributee may elect to have any portion of an eligible rollover
distribution paid in a direct rollover as otherwise provided under the system in
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ORDINANCE NO.2021-012
section 46-24.24.
(e) Administration of DROP.
(1) Board administers the DROP. The general administration of the DROP, the
responsibility for carrying out the provisions of the DROP and the responsibility of
overseeing the investment of the DROP's assets shall be placed in the board. The
members of the board may appoint from their number such subcommittees with
such powers as they shall determine; may adopt such administrative procedures and
regulations as they deem desirable for the conduct of their affairs; may authorize
one or more of their number or any agent to execute or deliver any instrument or
make any payment on their behalf; may retain counsel, employ agents and provide
for such clerical, accounting, actuarial and consulting services as they may require
in carrying out the provisions of the DROP; and may allocate among themselves or
delegate to other persons all or such portion of their duties under the DROP, other
than those granted to them as trustee under any trust agreement adopted for use in
implementing the DROP, as they, in their sole discretion, shall decide. A trustee
shall not vote on any question relating exclusively to himself.
(2) Individual accounts, records and reports. The board shall maintain records
showing the operation and condition of the DROP, including records showing the
individual balances in each member's DROP account, and the board shall keep in
convenient form such data as may be necessary for the valuation of the assets and
liabilities of the DROP. The board shall prepare and distribute to members
participating in the DROP and other individuals or file with the appropriate
governmental agencies, as the case may be, all necessary descriptions, reports,
information returns, and data required to be distributed or filed for the DROP
pursuant to the Code and any other applicable laws.
(3) Establishment of rules. Subject to the limitations of the DROP, the board
from time to time shall establish rules for the administration of the DROP and the
transaction of its business. The board shall have discretionary authority to construe
and interpret the DROP (including but not limited to determination of an
individual's eligibility for DROP participation, the right and amount of any benefit
payable under the DROP and the date on which any individual ceases to be a
participant in the DROP). The determination of the board as to the interpretation
of the DROP or its determination of any disputed questions shall be conclusive and
final to the extent permitted by applicable law.
(4) Limitation of liability.
a. The trustees shall not incur any liability individually or on
behalf of any other individuals for any act or failure to act, made in good
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9tORDINANCE NO.2021-012
faith in relation to the DROP or the funds of the DROP.
b. Neither the board nor any trustee of the board shall be
responsible for any reports furnished by any expert retained or employed by
the board, but they shall be entitled to rely thereon as well as on certificates
furnished by an accountant or an actuary, and on all opinions of counsel.
The board shall be fully protected with respect to any action taken or
suffered by it in good faith in reliance upon such expert, accountant, actuary
or counsel, and all actions taken or suffered in such reliance shall be
conclusive upon any person with any interest in the DROP.
(f) General provisions.
(1) The DROP is not a separate retirementplan. Instead, it is a program under which
a member who is eligible for normal retirement under the system may elect to
accrue future retirement benefits in the manner provided in this Sec. 46-24.30 for
the remainder of his employment, rather than in the normal manner provided under
the plan. Upon termination of employment, a member is entitled to a lump sum
distribution of his or her DROP account balance or may elect a rollover. The DROP
account distribution is in addition to the member's monthly benefit.
(2) Notional account. The DROP account established for such a member is a notional
account, used only for the purpose of calculation of the DROP distribution amount.
It is not a separate account in the system. There is no change in the system's assets,
and there is no distribution available to the member until the member's termination
from the DROP. The member has no control over the investment of the DROP
account.
(3) No employer discretion. The DROP benefit is determined pursuant to a
specific formula which does not involve employer discretion.
(4) IRC limit. The DROP account distribution, along with other benefits
payable from the system, is subject to limitation under Internal Revenue Code
Section 415(b).
(5) Amendment of DROP. The DROP may be amended by an ordinance of the
city at any time and from time to time, and retroactively if deemed necessary or
appropriate, to amend in whole or in part any or all of the provisions of the DROP.
However, except as otherwise provided by law, no amendment shall make it
possible for any part of the DROP's funds to be used for, or diverted to, purposes
other than for the exclusive benefit of persons entitled to benefits under the DROP.
No amendment shall be made which has the effect of decreasing the balance of the
DROP account of any member.
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(6) Facility of payment. If a member or other person entitled to a benefit under
the DROP is unable to care for his affairs because of illness or accident or is a
minor, the board shall direct that any benefit due him shall be made only to a duly
appointed legal representative. Any payment so made shall be a complete discharge
of the liabilities of the DROP for that benefit.
(7) Information. Each member, beneficiary or other person entitled to a benefit,
before any benefit shall be payable to him or on his account under the DROP, shall
file with the board the information that it shall require to establish his rights and
benefits under the DROP.
(8) Written elections, notification.
a. Any elections, notifications or designations made by a
member pursuant to the provisions of the DROP shall be made in writing
and filed with the board in a time and manner determined by the board under
rules uniformly applicable to all employees similarly situated. The board
reserves the right to change from time to time the manner for making
notifications, elections or designations by members under the DROP if it
determines after due deliberation that such action is justified in that it
improves the administration of the DROP. In the event of a conflict
between the provisions for making an election, notification or designation
set forth in the DROP and such new administrative procedures, those new
administrative procedures shall prevail.
b. Each member or Retiree who has a DROP account shall be
responsible for furnishing the board with his current address and any
subsequent changes in his address. Any notice required to be given to a
member or Retiree hereunder shall be deemed given if directed to him at the
last such address given to the board and mailed by registered or certified
United States mail. If any check mailed by registered or certified United
States mail to such address is returned, mailing of checks will be suspended
until such time as the member or Retiree notifies the board of his address.
(9) Benefits not guaranteed. All benefits payable to a member from the DROP
shall be paid only from the assets of the member's DROP account and neither the
city nor the board shall have any duty or liability to furnish the DROP with any
funds, securities or other assets except to the extent required by any applicable law.
(10) Construction.
a. The DROP shall be construed, regulated and administered
under the laws of Florida, except where other applicable law controls.
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b. The titles and headings of the subsections in this section 46-
24.30 are for convenience only. In the case of ambiguity or inconsistency,
the text rather than the titles or headings shall control.
(11) Forfeiture of retirement benefits. Nothing in this section shall be construed
to remove DROP participants from the application of any forfeiture provisions
applicable to the system. DROP participants shall be subject to forfeiture of all
retirement benefits, including DROP benefits.
(12) Effect of DROP participation on employment. Participation in the DROP is
not a guarantee of employment and DROP participants shall be subject to the same
employment standards and policies that are applicable to employees who are not
DROP participants.
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