HomeMy WebLinkAboutMinutes 02-26-2025 Quarterly MeetingCLEO ONT Retirement Plan & Trust for Firefighters of the City of Clermont
DRAFT Quarterly �j Meetin Minutes
Choice oChampimt
December 4, 2024 ; FEB 26 2G25 i'..
1. Chair Judd Lent called a Quarterly Meeting of the Firefighters Retirement Plan Board of Trustees to
order at 11:01 AM on August 28, 2024 in Council Chambers at the Clermont City Hall. He called roll.
Those persons present included:
TRUSTEES OTHERS
Judd Lent, Chair Kyle Tintle, Administrator (Resource Centers)
Adam Watkins, Trustee Bonni Jensen, Attorney (KKJL)
Tim Specht, Trustee Larry Cole and Mitchel Brennan, Investment Consultant, (BCA)
Megan Robinson, Trustee Nancy Zaccardi (City of Clermont, HR Manager)
Nadine Ohlinger (City of Clermont, HR Director - electronically)
Scott Borror (City of Clermont, Finance Director- electronically)
2. Extraordinary (Exigent) Circumstances for Trustees Joining Electronically
There were no Trustees joining electronically.
3. Minutes
The minutes for August 28, 2024 & September 10, 2024 were reviewed by the trustees.
Adam Watkins made a motion to approve the August 28, 2024 meeting minutes. The motion received a
second from Megan Robinson, approved by the Trustees 4-0.
Megan Robinson made a motion to approve the September 10, 2024 minutes. The motion received a
second from Judd Lent, approved by the Trustees 4-0.
4. Reports:
Quarterly Investment Report: Investment Consultant, (Mitchel Brennan and Larry Cole, Burgess
Chambers Association - BCA)
Mr. Brennan began with a market overview which included a continuation of the Magnificent 7
domination. Those companies alone are up 35%. The 3d quarter had a reversal with a broadening of the
market doing better, such as value, small and midcap. Utilities were up 19% with a huge surge for
demand for data centers. The holdings of Cohen & Steers will see a boost from this growth. For the
quarter, the plan saw $2.3 million in gains, 6.3% net, ranking in the top 131h percentile. For the fiscal year,
the plan was up $6.2 million, 19.8% net, ranking in the 49`h percentile. Mr. Brennan reviewed the asset
allocations, which are overweight to domestic equites, which are up to 48% and overweight to fixed
income. He expects to maintain the asset allocations as they are for at least a few quarters. They see
strong growth on the equity side and will take advantage of the higher rates on the fixed income side.
Mr. Brennan reviewed the program analysis, a rolling 5-year snapshot was given where the last 2 quarters
CLEO ONT Retirement Plan & Trust for Firefighters of the City of Clermont Ct�;.e u` Champinn' DRAFT Quarterly Meeting Minutes
December 4, 2024
when the plan rankings dipped below 50%, however 90% of the time they ranked in the top 50%, and
50% in the top 25%. The divergence started in 2021 when Polen was added to the portfolio, and they
continued to underperform detracting from the total fund. Outside of that one investment, the plan is
performing right along with expectations as Polen has been eliminated from the portfolio. In the large
cap growth, Polen has great performance and less risk than the other offerings but the primary reason for
the underperformance was they did not own any Nvidia at all and not enough of the Magnificent 7. Mr.
Cole was pleased to see a broadening of the market; the report shows the good results in the returns. He
feels the asset allocation with diversification will serve them well going forward.
Mr. Cole presented the quarterly report for September 30, 2024 which is the end of the fiscal year end.
Bonds and stocks were up when the Fed cut rates in September, since that time long- and short-term
rates came back a little. With the strong economy, it is questionable if they are cutting rates as predicted.
The quarter ended with a balance of $38,981,198.41 on September 30, 2024. It was a good quarter, with
nothing identified to be out of alignment, no rebalancing recommended.
Attorney: Bonni Jensen (Klausner, Kaufman Jensen & Levinson)
Ms. Jensen discussed updates on Florida law specifically on the requirements for contracts, new
provisions and the new withholding rules. The human trafficking prevention would require affidavits to
attest they do not use coercion for labor or services. Beginning January 1, 2024, governmental entities
with access to personal identifying information must obtain an affidavit that their firm is not owned by a
government of a foreign country of concern. The new withhold rule concerns retirement plan payments
to recipients located outside of the United States, the retirees can no longer elect no tax withholding.
The regulation does not apply to non -US citizens or non-resident aliens of the US. Ms. Jensen gave an
update on the disability application as there is difficulty in obtaining the medical records, and results from
certain tests performed on Mr. Harrison. A release was sent to the hospital, and they did not accept the
release. A second release was signed and sent to the hospital, but they have not released the records.
The process has been truncated but is still ongoing.
Administrator Report: Kyle Tintle (Resource Centers)
Ms. Tintle presented the updated conference schedule for 2025. She encouraged the trustees, especially
the new trustees, to attend the educational offerings as often as possible.
5. Benefit Approval
A Share distribution for William Harrison was presented for review.
Adam Watkins made a motion to approve the Share distribution for William Harrison. The motion
received a second from Megan Robinson, approved by the Trustees 4-0.
CLER ANT Retirement Plan & Trust for Firefighters of the City of Clermont
«l.: 1�c.,d,.,1.15 DRAFT Quarterly Meeting Minutes
December 4, 2024
6. Plan Financials
Ms. Tintle presented the Board with the Interim Financial Statement dated September 2024 for
informational purposes. The interim financial statements were received and will be filed. He presented
the Warrants dated December 4, 2024 for review.
Megan Robinson made a motion to approve the warrant dated December 4, 2024. The motion received
a second from Adam Watkins, approved by the Trustees 4-0.
7. Other Business
No other business.
B. Public Comment
No members of the public had any comment.
There being no further business and the next meeting having been previously scheduled for February 26,
2025 at 11:00 AM. The meeting adjourned at 11:58 AM.
Respectfully Submitted,
Ryan Moore, Secretary
CITY OF CLERMONT
FIREFIGHTERS' RETIREMENT PLAN
SUMMARY PLAN DESCRIPTION
FEBRUARY, 2025
INTRODUCTION
As a Member in the City of Clermont Firefighters' Retirement Plan, you are included
in a program of benefits to help you meet your financial needs in retirement, or in the event
of disability or death. The purpose of this Summary Plan Description (SPD) is to give you
a brief description of benefits available to you under your pension plan.
Planning for retirement begins now. This SPD can be a valuable tool in preparing
for your retirement and financial future. If you need any further information on any of the
topics presented in this SPD, please contact the Board of Trustees or the Plan
Administrator. They will answer any questions to help you better understand your benefits.
The information presented is a summary of the pension plan as provided in the City
of Clermont Code of Ordinances which governs your Pension Fund. The legal citation for
your Plan is Ordinance 2021-012, dated March 23, 2021, as amended. A copy of the Plan
Document can be found at www.municode.com, Code of Ordinances, City of Clermont,
Part 1, Chapter 28, Article IV, Firefighters' Retirement Plan. This Summary Plan
Description includes changes through Ordinance 2024-040, adopted November 12, 2024.
Any discrepancies between information in this SPD and the Plan will be governed by the
Plan. A copy of the Plan can also be obtained from the Board of Trustees. Their address
is:
City of Clermont Firefighters' Retirement Plan
c/o Resource Centers, LLC , Plan Administrator
4360 Northlake Boulevard - Suite 206
Palm Beach Gardens, FL 33410
Kyle@ResourceCenters.com
561-624-3277 - Telephone
561-624-3728 - Facsimile
Board of Trustees
City of Clermont
Firefighters' Retirement Plan
Judd Lent, Chairman
Ryan Moore, Secretary
Megan Robinson, Trustee
Adam Watkins, Trustee
Katherine Falcon, Trustee
TABLE OF CONTENTS
DEFINITIONS........................................................ 1
BOARD OF TRUSTEES AND PLAN ADMINISTRATION ...................... 2
ELIGIBILITY FOR PLAN MEMBERSHIP ................................... 2
NORMAL RETIREMENT ELIGIBILITY ..................................... 2
AMOUNT OF A NORMAL RETIREMENT BENEFIT ........................... 2
EARLY RETIREMENT ELIGIBILITY ...................................... 3
AMOUNT OF EARLY RETIREMENT BENEFITS ............................. 3
SUPPLEMENTAL BENEFIT - SHARE PLAN ................................ 4
DEFERRED RETIREMENT OPTION PLAN ................................. 4
FORMS OF RETIREMENT ............................................. 5
Optional Forms of Payment ........................................ 5
DEATH BENEFITS .................................................... 7
Death Before Retirement .......................................... 7
Death After Retirement ............................................ 8
DISABILITY RETIREMENT .............................................. 8
TERMINATION OF EMPLOYMENT AND VESTING ......................... 10
CONTRIBUTIONS AND FUNDING ....................................... 11
MINIMUM BENEFITS ................................................. 11
MAXIMUM BENEFITS ................................................. 11
FORFEITURE OF PENSION ............................................ 11
CLAIMS PROCEDURE BEFORE THE BOARD ............................. 12
REQUIRED MINIMUM DISTRIBUTIONS .................................. 13
INVESTMENTS...................................................... 13
FEDERAL INCOME TAX CONSEQUENCES ............................... 13
DOMESTIC RELATIONS ORDERS IN DIVORCE ........................... 13
APPLICABLE LAWS AND REGULATIONS ................................ 14
PLAN YEAR AND PLAN RECORDS ...................................... 14
ACTUARIAL SOUNDNESS ............................................. 14
EXCLUSION OF HEALTH INSURANCE PREMIUMS FROM INCOME ........... 13
FILING FOR RETIREMENT ............................................ 13
AGENT FOR SERVICE OF LEGAL PROCESS ............................. 15
RELEVANT PROVISIONS OF COLLECTIVE BARGAINING AGREEMENTS ...... 15
SUMMARY OF VALUATION DATA ...................................... 16
DEFINITIONS
Accumulated contributions means the total of all amounts contributed by a
Member to the City of Clermont Firefighters' Retirement Plan.
Average final compensation means:
For a full-time firefighter: one -twelfth of the average salary of the five best
years of the last ten 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 12 consecutive months.
For a volunteer firefighter: one -twelfth of the average salary of the five best
years of the last ten 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.
Credited service means the total number of years and fractional parts of years of
service, rounded to the nearest completed month, as a Clermont 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.
Salary means the fixed monthly remuneration paid to a firefighter for services
rendered to the City. Salary excludes bonuses and accumulated sick and vacation
leave earned after February 14, 2014.
Effective October 1, 2019 overtime is limited to 300 hours per Member per year. No
unused accumulated sick and vacation time earned shall be included except that the
balance as of February 14, 2014 can be included if at least that much time is cashed
in at retirement.
Member means an actively employed City of Clermont firefighter who fulfills the
prescribed Membership requirements, who is participating in the Fund.
City of Clermont Firefighters' Retirement System February 2025
Page 1 of 15
BOARD OF TRUSTEES AND PLAN ADMINISTRATION
The City of Clermont Firefighters' Retirement Plan is a defined benefit pension plan
administered by a Board of Trustees who acts as the administrator of the Plan. The
Board consists of 5 Trustees: two legal residents of the City appointed by the City
council, two full-time firefighters who are elected by a majority of the Members of the
Plan, and a fifth Trustee who is chosen by a majority of the first 4 Trustees. Each
Trustee serves a two-year term.
The Chairman of the Board of Trustees is designated as agent for the service of
legal process.
ELIGIBILITY FOR PLAN MEMBERSHIP
Each person employed by the City of Clermont as a full-time Firefighter becomes
a Member of the Plan as a condition of his or her employment. A Firefighter is an
employee who is certified as a firefighter as a condition of employment in accor-
dance with the provisions of §633.408, Florida Statutes.
NORMAL RETIREMENT ELIGIBILITY
A Firefighter who is 55 years old with 10 years of Credited Service or who has
completed 20 years of service, regardless of age is eligible for normal retirement.
Each Member shall become 100 percent vested in their accrued benefit at normal
retirement age. An application for normal retirement must be filed in writing on a
form approved by the Board.
AMOUNT OF A NORMAL RETIREMENT BENEFIT
The amount of a normal retirement pension is based on a formula: The Member's
years of credited service times average final compensation times pension multiplier.
Credited service is a Member's period of employment as a Firefighter in the Fire
Department of the City of Clermont, Florida.
Average final compensation means:
For a full-time firefighter: one -twelfth of the average salary of the five best
years of the last ten 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 12 consecutive months.
For a volunteer firefighter: one -twelfth of the average salary of the five best
years of the last ten 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.
City of Clermont Firefighters' Retirement System February 2025
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The pension multiplier is:
For full-time firefighters: 2.25% for years of credited service earned prior to
October 1, 2002 and 3% for years of credited service earned on and after
October 1, 2002.
For volunteer firefighters: The greater of:
(a) Five dollars a year multiplied by the years of credited volunteer
service, or
(b) 2.25% for years of credited service earned prior to October 1, 2002
and 3% for years of credited service earned on and after October 1,
2002.
For all retirements on and after January 24, 2023, the retirement benefit at
each member's 22" year of credited service shall total 75% of average final
compensation. Each year of service earned after the 22nd year of a Member's
service shall accrue at 2% of average final compensation .
In no event shall the monthly benefit be less than 2.75% of average final
compensation times all years of credited service up to a maximum of 100%.
EARLY RETIREMENT ELIGIBILITY
A Member is eligible for early retirement upon the attainment of age 50 and the
completion of 10 years of Credited Service.
AMOUNT OF EARLY RETIREMENT BENEFITS
The amount of the early retirement benefit is calculated in the same manner as for
normal retirement and is payable as follows:
1. The full formula benefit beginning on the date the Member would have been
eligible for normal retirement; or
2. Beginning immediately upon early retirement, a Member may receive a
monthly benefit reduced by 3% per year for each year the commencement
of benefits precedes the normal retirement date.
City of Clermont Firefighters' Retirement System February 2025
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SUPPLEMENTAL BENEFIT - SHARE PLAN
Effective October 1, 2022, the Supplemental benefit will no longer be funded and no
new share accounts will be created for Members hired after this date.
Share accounts were previously created for each Member employed on and after
January 24, 2017, including DROP participants. The accounts were funded with
50% of the Chapter 175 funds received annually in excess of $188,967.00. The
remaining 50% of the excess was used by the City to offset its contributions to the
Plan. The 50% allocation to the Share accounts was subject to reduction for the
Share account expenses of the prior year.
Share account distributions were divided equally among the Members, including
DROP participants, who were employed on September 30. The initial allocation was
distributed based on seniority.
Share accounts were adjusted based on earnings and losses during the year for the
investment of the entire Plan investments. The earnings and losses were
determined as of September 30 each year.
Members who terminate with less than 5 years of service are not vested and not
entitled to any distribution of the Share account. The balances standing to the credit
of these Members are forfeited and reallocated on the following September 30 to the
Members then entitled to an allocation. Any forfeiture on and after October 1, 2021,
will be reallocated to the Members who were actively employed as of September 30,
2021, and have an existing account balance.
Share accounts are distributed at termination of employment for retirement, death,
disability, or termination as a vested member. Payments are made in one lump sum
and are eligible to be rolled over.
DEFERRED RETIREMENT OPTION PLAN
Beginning October 1, 2024, for Members who enter the DROP after that date,
instead of terminating employment as a Firefighter, any Member who is eligible for
normal retirement may elect to defer receipt of the retirement pension and may
continue employment by participating in the DROP fora period of 8 additional years.
An election to participate in the DROP must be made in writing. Participation in the
DROP will begin on the first day of the first calendar month which is more than 15
business days afterthe application is received bythe Plan Administrator. An election
to participate shall constitute an irrevocable resignation from the service of the City
no later than 8 years after entry into the DROP. A Member may participate only
once.
City of Clermont Firefighters' Retirement System February 2025
Page 4 of 15
DROP participation ends at the earlier of : (i) termination of employment or (ii)
completion of 8 years of participation in the DROP.
Upon entry to the DROP, a Member's pension benefit amount is calculated based
on credited service and final average salary at that time and the amount remains
permanently frozen. The participant's DROP account is credited with monthly
amounts equal to the frozen pension during the period of DROP participation.
DROP accounts are credited with net investment earnings during the DROP period
only at a rate of 6.5% per annum compounded monthly.
A participant must elect payment of the DROP account at termination of
employment. Payments are rollover eligible.
FORMS OF RETIREMENT
The standard form of payment for the pension described above is a benefit payable
to the retiree for life with 10 years guaranteed, in other words, you are guaranteed
120 monthly payments. The retiree will receive a benefit for life. However, if the
retiree dies prior to receiving 120 payments, then pension payments will continue
to a beneficiary until a total of 120 payments have been made between the retiree
and the beneficiary.
A Member may designate a beneficiary to receive the benefit payable, if any, upon
the death of the retired Member. When there is no beneficiary named, the benefit
will be paid to the deceased Firefighter's estate.
You should be aware that divorce may affect the designation of your former spouse
as your beneficiary. To ensure that your beneficiary is correct, be sure to review
your designation after your divorce.
IT IS IMPORTANT TO KEEP YOUR
BENEFICIARY DESIGNATION UP TO DATE
Optional Forms of Payment
Optional forms of payment are available in lieu of the normal form described above.
The amount of pension under each optional form has the same actuarial value as
the normal form of payment (lifetime payments with 120 payments guaranteed).
City of Clermont Firefighters' Retirement System February 2025
Page 5 of 15
• Option 1 - Retiree Life Only - The straight life form of payment pays the
retired participant an increased monthly pension for life. No monthly pension
is ever paid a spouse, child, dependent parent or other beneficiary under this
form of payment.
• Option 2 - Joint and Survivor
Joint and 100% Survivor - The joint and 100% survivor form of payment
pays the retired Member a reduced monthly pension for life. Upon the retired
Member's death, the joint annuitant will be paid 100% of the reduced monthly
pension for life. The election of Option 1, shall be null and void if the joint
annuitant dies before the Member's benefit commences.
Joint and 75% Survivor - The joint and 75% survivor form of payment pays
the retired Member a reduced monthly pension while the retired Member is
alive. The reduction is not as great as under the survivor option above.
Upon the retired Member's death, the joint annuitant will be paid 75% of the
reduced monthly pension for life. The election of Option 1 shall be null and
void if the joint annuitant dies before the Member's benefit commences.
Joint and 66-2/3% Survivor - The joint and 66-2/3% survivor form of
payment pays the retired Member a reduced monthly pension while the
retired Member is alive. The reduction is not as great as under the other
options above. Upon the retired Member's death the joint annuitant will be
paid 66-2/3% of the reduced monthly pension for life. The election of Option
1 shall be null and void if the joint annuitant dies before the Member's benefit
commences.
Joint and 50% Survivor - The joint and 50% survivor form of payment pays
the retired Member a reduced monthly pension while the retired Member is
alive. The reduction is not as great as under the other options above. Upon
the retired Member's death, the joint annuitant will be paid 50% of the
reduced monthly pension for life. The election of Option 1 shall be null and
void if the joint annuitant dies before the Member's benefit commences.
Retirees who have elected Option 2 with a joint and survivor option may change his
or her designated joint annuitant up to two times. The Members benefit will be
recalculated by actuary and the amount of the benefit may decrease but cannot
increase. The Benefit due after such change will be adjusted to make sure that
there is no cost to the plan for the change.
City of Clermont Firefighters' Retirement System February 2025
Page 6 of 15
Option 3 - Social Security Offset - The Member 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.
Option 4 - Lump Sum - Available to Members who do not participate in
the DROP - Participants may elect to reduce their lifetime of benefits to have
a 5%, 10%, 15%, or 20% lump sum with the remaining percentage paid in
the form of benefit chose for the remainder of the Member's life.
DEATH BENEFITS
Death Before Retirement
Line of Duty.
If a Member dies in the line of duty prior to actual retirement, a death benefit
is paid to the spouse, for life, in the amount of 100% of the Member's rate of
regular base salary.
If the Member has minor children and is either not married at the time of
death or the surviving spouse dies while the children are still minors, each
unmarried child will receive an equal share of the spousal benefit to age 18
(or to age 25 if a full-time student in a fully accredited high school, college,
or university). As each child reaches the benefit termination age, the
remaining eligible children will divide the benefits.
If a Member dies leaving no surviving spouse and no minor child(ren), then
the Member's beneficiary shall receive the greater of the Member's accrued
benefit or 42% of the Member's average final compensation, with the
applicable annuity amount payable for 10 years. If the named beneficiary
dies before the 10 years of payments have been made, the remaining benefit
payments will be paid in a lump sum to the beneficiary's estate.
Not -in -line of Duty.
Member is not vested: The beneficiary shall receive a refund of 100 percent
of the Member's accumulated contributions.
Member is vested: The beneficiary 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.
City of Clermont Firefighters' Retirement System February 2025
Page 7 of 15
Death After Retirement
The designated joint & survivor annuitant / beneficiary of a Retiree shall receive a
benefit according to the optional form of benefit selected at the time of retirement.
DISABILITY RETIREMENT
A pension may be payable to a participant who becomes disabled while employed
in the fire department as a Firefighter. Eligibility and the amount of the pension are
dependent on whether or not the disability occurred in the line of duty. Optional
forms of pension payments are available in lieu of the applicable standard form.
The disability must arise from a mental or physical illness, disease or injury which
totally and permanently prevents the participant from performing useful and efficient
service as a Firefighter in the City of Clermont Fire Department. No Firefighter shall
be permitted to retire under a disability retirement until examined by a duly qualified
physician or surgeon to be selected by the Board of Trustees and the physician or
surgeon finds the participant to be disabled from performing the functions of a
Firefighter. The final determination of disability is made by the Board.
A participant who is retired for disability may be required to undergo periodic medical
examination under the direction of the Board of Trustees to determine if the retired
participant is capable of performing the duties of a Firefighter in the Department.
Each Member who is claiming disability benefits shall establish, to the satisfaction
of the Board, that such disability was not the result of:
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;
3. Injury or disease sustained while committing a crime;
4. Injury or disease sustained while serving in any branch of the Armed
Forces;
5. Injury or disease sustained after his employment as a Firefighter for
the City of Clermont has terminated; or
6. Injury or disease sustained by the Member while working for anyone
other than the City and arising out of such employment.
If a disability results from any of the above listed items, no disability pension can be
awarded to the Member.
City of Clermont Firefighters' Retirement System February 2025
Page 8 of 15
Duty Disability Benefit
If the Board finds the disability to have arisen out of an in the course of the
Member's employment, the pension is equal to the greater of:
(a) the Member's accumulated contributions at five percent interest, or
(b) the greater of:
(1) two and one -quarter percent of average final compensation
times years of credited service earned prior to October 1, 2002
plus three percent of average final compensation times years
of credited service earned on and after October 1, 2002; or
(ii) 42 percent of the average final compensation of the Member.
This benefit continues until death or recovery.
Non -Duty Disability Benefit
If the Member has 10-years of service and the Board finds the disability is not the
result of of performing duty as a Clermont firefighter, the pension is equal to the
greater of:
(a) the Member's accumulated contributions at five percent interest, or
(b) the greater of:
(1) two and one -quarter percent of average final compensation
times years of credited service earned prior to October 1, 2002
plus three percent of average final compensation times years
of credited service earned on and after October 1, 2002; or
(ii) 25 percent of the Member's average final compensation.
A Member who does not have 10 years of service and is determined to be totally and
permanently disabled from a non -service connected injury or disease shall receive a return
of accumulated contributions with five percent interest.
City of Clermont Firefighters' Retirement System February 2025
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TERMINATION OF EMPLOYMENT AND VESTING
If a Member's employment is terminated, either voluntarily or involuntarily, the
following benefits are payable:
1. If the Member has less than 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 for up to 5 years, pending the possibility of being rehired.
2. If the Member has more than 5, but less than 10 years of credited
service upon termination, the Member shall be entitled to a partial
monthly retirement benefit, determined in the same manner as for
normal or early retirement payable commencing at the Member's
normal or early retirement date, 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 55. An early retirement deduction will
be based on the years between age 55 and his early retirement date.
3. If the Member has more than ten 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 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.
4. 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.
City of Clermont Firefighters' Retirement System February 2025
Page 10 of 15
CONTRIBUTIONS AND FUNDING
Members are required to contribute 6.5% of Salary effective the first full payroll
period following October 8, 2024. Beginning October 1, 2025, members will
contribute 7.5% of Salary. Effective October 1, 2026, should the City's minimum
contribution rate exceed 35% of payroll after offset by application of Chapter 175
monies, then member contributions will increase to 8.5%. Contributions are
deducted from each paycheck.
The City of Clermont also contributes to the Plan. The amount of City contribution
is mathematically determined in accordance with State statutes to finance Plan
benefits as they are earned, as well as to finance any difference between liabilities
for service already rendered and Plan assets.
All Chapter 175 money received for calendar year 2021 in fiscal year 2022 and all
future annual distributions of Chapter 175 money shall be used by the City of
Clermont to fund the normal cost of the pension plan.
MINIMUM BENEFITS
In no event will the benefits paid from this Plan on behalf of any Member be any less
than the value of his or her accumulated contributions.
MAXIMUM BENEFITS
In no event will the benefits paid from this Plan exceed the limits provided in Section
415 of the Internal Revenue.
FORFEITURE OF PENSION
Any Member who is convicted of any of the below offenses or whose termination is
by reason of his admitted commission of a specified offense committed prior to
retirement shall forfeit all rights and benefits under this Fund, except for a refund of
accumulated contributions. The specified offenses are:
(1) Committing, aiding or abetting of an embezzlement of public funds;
(2) 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 Chapter 838, Florida Statutes;
City of Clermont Firefighters' Retirement System February 2025
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(5) The committing of 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 the public
officer or employee acts or in which he or she is employed of the right to
receive the faithful performance of his or her duty as a public officer or
employee, realizes or obtains, or attempts to realize or obtain, a profit, gain,
or advantage for himself or herself or for some other person through the use
or attempted use of the power, rights, privileges, duties, or position of his or
her public office or employment position;
(7) The committing on or after October 1, 2008, of any felony defined in §800.04,
Florida Statutes, against a victim younger than 16 years of age, or any felony
defined in Chapter 794, Florida Statutes against a victim younger than 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.
Any Member who has received benefits from the Plan in excess of his accumulated
contributions shall be required to repay the Fund. The Board may implement legal
action necessary to recover such funds.
Additionally, a Member who makes a false or misleading statement to obtain
retirement benefits shall commit a misdemeanor of the first degree and if convicted,
the Member shall forfeit his/her benefit.
CLAIMS PROCEDURE BEFORE THE BOARD
Any Member may request, in writing, that the Board review any claim for benefits
under the Plan. The Board will review the case and enter a decision as it deems
proper within a reasonable time from the receipt of the claim, giving the parties the
time necessary for discovery and full and adequate review.
In the event that the Board denies the claim for benefits, the Member must submit
a written request, within 30 days of the Order of the Board. The Order will be in
writing and will include:
The specific reasons for the denial;
2. A description of any additional information that the Board feels is
necessary for the Member to perfect his or her claim;
3. An explanation of the review procedure next open to the Member
which includes a formal evidentiary hearing.
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You should be aware that the Courts have held that before you are able to file a
lawsuit regarding your claim, you must first come before the Board of Trustees to
try to resolve your claim. If you follow the claims procedure and are still dissatisfied
with the result, you can request that the Court take your case within 30 days of the
rendering of the decision by the Board.
REQUIRED MINIMUM DISTRIBUTIONS
Your required minimum distribution (RMD) is the minimum amount you must
withdraw from your account each year. You are permitted to withdraw more than
the minimum required amount. Your withdrawals will be included in your taxable
income. You generally must start taking withdrawals from your retirement plan
when you reach age 72 (73 if you reached age 72 after December 31, 2022). If you
reached age 72 in 2023, the required beginning date for your first RMD is April 1,
2025, for 2024.
INVESTMENTS
The assets of the Plan are presently invested by various investment managers
retained by the Board under investment guidelines adopted by the Board in
consultation with their investment advisors.
FEDERAL INCOME TAX CONSEQUENCES
The Plan is intended to qualify under Section 401 of the Internal Revenue Code as
a qualified Plan. It is important that you consult qualified experts to determine
whether or not you must pay taxes on the pension benefits you receive.
DOMESTIC RELATIONS ORDERS IN DIVORCE
The Plan is a governmental plan, and therefore, is not subject to Qualified Domestic
Relations Orders ("QDROs") under federal law, or court orders to effectuate an
equitable distribution of marital assets.
The Plan is subject to 61.1301, Florida Statutes, entitled Income Deduction Orders
("IDOs"). Section 61.1301 is limited to the collection of alimony and child support.
Therefore, if the Plan receives an IDO for alimony or child support, the Plan will
comply with the Order. Additionally, pension benefits may be distributed by using
an "Order Distributing Marital Interest in a Public Retirement Plan." A copy of this
order may be obtained from the Plan Administrator.
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Effective January 1, 2019, changes in the federal tax laws have eliminated tax
deductions for alimony if a marriage was dissolved or a property settlement
agreement was made on or after January 1, 2019. Additionally, deductions may be
available to existing orders or agreements modified on or after January 1, 2019, if
both parties agree.
APPLICABLE LAWS AND REGULATIONS
The Plan is governed by the following federal, state and local laws:
1. Internal Revenue Code and amendments thereto.
2. Chapter 175, Florida Statutes, "Municipal Firefighters' Retirement
Trust Funds."
3. Part VII, Chapter 112, Florida Statutes, "Actuarial Soundness of
Retirement Systems."
4. Ordinances of the City of Clermont.
5. Administrative rules and regulations adopted by the Board of
Trustees.
PLAN YEAR AND PLAN RECORDS
The Plan year begins on October 1 of each year and ends on September 30 of the
following year. All records of the Plan are maintained on the basis of the Plan year.
ACTUARIAL SOUNDNESS
The actuary for the Plan has determined that the Plan is actuarially sound and can
adequately fund the benefits based upon projected contributions to the Plan and
investment earnings.
EXCLUSION OF HEALTH INSURANCE PREMIUMS FROM INCOME
When you retire because of disability or have worked to the date you are
immediately eligible for normal retirement (not early retirement), you can elect, on
your income tax return, to exclude from income, distributions made from your benefit
that are used to pay the premiums for accident or health insurance or long-term care
insurance. The premium can be for coverage for you, your spouse, or dependents.
The distribution may be made directly from the plan to the insurance provider using
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a form provided by the Board which authorizes the distribution. (This form may be
obtained from your Plan Administrator) You may also elect to make premium
payments to the insurance provider yourself. You can exclude from income the
smaller of the amount of the insurance premiums or $3,000.00. You can only make
this election for amounts that would otherwise be included in your income.
FILING FOR RETIREMENT
In order to ensure that you receive your pension on time, you should file your
application with the Pension Administrator at least 45 days before retirement. All
forms can be obtained from the Pension Administrator at the address on the
Introduction page. Penalties will be imposed for making a false or misleading
statement to obtain a pension benefit. It can take up to 60 days after your date of
retirement to receive your first pension check.
If an error in retirement benefits is discovered and result in any member or
beneficiary receiving from the retirement plan more or less than they would have
been entitled to receive had the records been correct, the board shall have the
power to correct such error and, as far as possible, adjust the payments in such a
manner that the actuarial equivalent of a benefit to which such member or
beneficiary was correctly entitled to shall be paid.
AGENT FOR SERVICE OF LEGAL PROCESS
Clermont Firefighters' Retirement Plan
c/o Bonni S. Jensen, Esq.
Klausner, Kaufman, Jensen & Levinson
7080 NW 4t' Street
Plantation, Florida 33317
RELEVANT PROVISIONS OF COLLECTIVE BARGAINING AGREEMENTS
Certain employees covered by the Plan are members of the International
Association of Firefighters, AFL -CIO -Clermont Professional Firefighters Local4350.
The current Collective Bargaining Agreement between the Employer and the Union
expires on September 30, 2027. Article 33 refers to pension matters.
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