HomeMy WebLinkAboutOrdinance No. 2025-033 CITY OF CLERMONT
C�& ORDINANCE NO.2025-033
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CLERMONT; LAKE COUNTY, FLORIDA, AMENDING THE CITY OF
CLERMONT POLICE OFFICERS RETIREMENT PLAN AT CHAPTER 28,
ARTICLE III; AMENDING SECTION 28-59, FINANCES AND FUND
MANAGEMENT; AMENDING SECTION 28-60, CONTRIBUTIONS;
AMENDING SECTION 28-62, PRE-RETIREMENT DEATH; AMENDING
SECTION 28-71,MINIMUM DISTRIBUTION OF BENEFITS; AMENDING
SECTION 28-84, SUPPLEMENTAL BENEFIT COMPONENT FOR
SPECIAL BENEFITS; CHAPTER 185 SHARE ACCOUNTS; PROVIDING
FOR CONFLICT, SEVERABILITY, CODIFICATION, THE
ADMINISTRATIVE CORRECTION OF SCRIVENERS ERROR,
PUBLICATION AND AN EFFECTIVE DATE.
WHEREAS, the City of Clermont Police Officers are provided pension and certain other
benefits under Clermont City Code; Chapter 28,Article III;
WHEREAS,the City and the Central Florida Police Benevolent Association have agreed
in collective bargaining to certain changes in pension benefits and allocation of Share Plan monies;
WHEREAS,there were changes to the Internal Revenue Code as it relates to governmental
pension plans and those provisions need to be incorporated into the Police Officers' Retirement
Plan; and
WHEREAS, the City Council desires to amend the provisions of the Police Officers'
Retirement Plan to implement the collective bargaining agreement and to comply with the federal
law changes.
NOW,THEREFORE,BE IT ORDAINED by the City Council of the City of Clermont,
Lake County, Florida that(note: strikethrough indicates removed words and underlined indicates
added text):
SECTION 1:
That Chapter 28, Pensions and Retirement,Article III, Police Officers Retirement Plan, Section
28-59,Finances and Fund Management, subsection(6)j., of the Code of Ordinances of the City
of Clermont, is hereby amended to read as follows:
(6)j. 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. Notwithstanding the
foregoing, the board shall have the discretion to not seek recovery of inadvertent
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CLERWONT CITY OF CLERMONT
ORDINANCE N0.2025-033
overpayments from benefit recipients or other parties, includingthe he City based on
the circumstances of the overpayment, on a case-by-case basis, provided that any
such actions are consistent with the provisions of the Secure Act 2.0 applicable to
governmental plans with regard to inadvertent benefit overpayments and any
applicable guidance subsequently issued by the Treasury and the Internal Revenue
Service. Underpayments shall be made up from the fund in a prudent manner.
SECTION 2:
That Chapter 28, Pensions and Retirement, Article III, Police Officers= Retirement Plan, Section
28-60, Contributions, of the Code of Ordinances of the City of Clermont, is hereby amended to
read as follows:
Sec. 28-60. 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. In accordance with the Collective
Bargaining Agreement between City and the Central Florida Police Benevolent Association, the
Union agreed to allow the City to use 100%of all future Chapter 185 premium tax revenues up to
the amount received in the 2012 calendar year ($211,000.00) and 50% of any future amounts in
excess of the 2012 calendar year distribution to fund the normal cost of the Plan. The remaining
50%of any Chapter 185 premium tax revenues in excess of the 2012 calendar year amount shall
be credited to the share plan. This mutual consent will apply to all receipts of Chapter 185
distributions except calendar years 2025,2026, and 2027.
For the Chapter 185 money received in calendar year 2025,the City will retain 75%of the excess
over what was received in calendar year 2012 ($211,000.00). For the Chapter money received in
calendar year 2026 and 2027,the City will retain 100%of the Chapter 185 distributions.
CLERWONT CITY OF CLERMONT
ORDINANCE NO.2025-033
(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.
SECTION 3:
That Chapter 28, Pensions and Retirement, Article III, Police Officers= Retirement Plan, Section
28-62, Pre-Retirement Death, subsection (e), of the Code of Ordinances of the City of Clermont,
is hereby amended to read as follows:
(e) Distributions to spouse beneficiary.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 section 28-71(b)(2)a.
SECTION 4:
That Chapter 28, Pensions and Retirement, Article III, Police Officers Retirement Plan, Section
28-71, Minimum Distribution of Benefits, subsection (b)(1) and subsection (b)(2)a., of the Code
of Ordinances of the City of Clermont, are hereby amended to read as follows:
(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.
a. member's
beginning date is April 1 efthe ealendar-yeaf fellewing the later-ofi
The member's
required beginning date is April 1 of the calendar year following the later of:
1. The calendar year in which the member attains age 73 72 years (provided they had not
attained age 72 before January 1,2023);or
2. The calendar year in which the member terminates employment with the city.
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LEMOIT CITY OF CLERMONT
�, ORDINANCE NO.2025-033
(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 73 744 years,((provided they had
not attained age 72 before January 1. 2023) if later, the applicable age, as the surviving spouse
elects. Effective for calendar years beginning after December 31, 2023, a surviving spouse who
is the member-s sole designated beneficiary may elect to be treated as if the surviving spouse were
the employee as provided under Code Section 401(a)(9)(B)(iv).
SECTION 5:
That Chapter 28, Pensions and Retirement,Article III, Police Officers= Retirement Plan, Section
28-84, Supplemental benefit component for special benefits; chapter 185 share accounts, first
paragraph, of the Code of Ordinances of the City of Clermont, is hereby amended to read as
follows:
Sec. 28-84. - 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. ch. 185,premium tax monies for each plan year which are allocated to
this supplemental component as provided for in F.S. ' 185.35.
Effective January 26, 2016, the city shall use 100 percent of all future F.S. ch. 185 annual
distributions up to the amount received in the 2012 calendar year($211,000.00)and 50 percent 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 percent of any future annual amounts in excess of the 2012
calendar year distribution shall be allocated to this supplemental component (share plan)_
Notwithstanding the previous two sentences, for calendar year 2025, the City shall retain 75%of
the amount of the Chapter 185 premium tax revenues in excess of the 2012 calendar year amount
to fund the normal cost of the plan,and for calendar year 2026 and 2027 only,the City shall retain
the entire Chapter 185 premium tax revenues received in excess of the 2012 calendar year amount.
The share plan,and shall be further allocated to the members and DROP participants as follows:
SECTION 6: CONFLICT
All ordinances or parts of ordinances in conflict with any of the provisions of this Ordinance are
hereby repealed.
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�LERMO
CITY OF CLERMONT
ORDINANCE N0.2025-033
SECTION 7: SEVERABILITY
If any portion of this Ordinance is declared invalid,the invalidated portion shall be severed from
the remainder of the Ordinance, and the remainder of the Ordinance shall continue in full force
and effect as if enacted without the invalidated portion, except in cases where such continued
validity of the remainder would clearly and without doubt contradict or frustrate the intent of the
Ordinance as a whole.
SECTION 8: CODIFICATION
Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code
of Ordinances of the City of Clermont.
SECTION 9: ADMINISTRATIVE CORRECTION OF SCRIVENERS ERROR
Regardless of whether such inclusion in the Code as described in Section 1 is accomplished,
sections of the Ordinance may be re-numbered or re-lettered and the correction of typographical
and/or scrivener' s errors which do not affect the intent may be authorized by the City Manager or
designee, without need of public hearing, by filing a corrected or re-codified copy of same with
the City Clerk.
SECTION 7: PUBLICATION AND EFFECTIVE DATE
This Ordinance shall be published as provided by law and it shall become law and shall take effect
immediately upon its Second Reading and Final Passage.
6.
CLEO'OW CITY OF CLERMONT
ORDINANCE NO. 2025-033
PASSED AND ADOPTED by the City Council of the City of Clermont, Lake County,
Florida on this 23rd day of September, 2025.
CITY OF CLERMONT
J
Tim Murry, Ma r`
ATTEST:
"&
Tracy Ackroyd Howe, MC
City Clerk
Approved as to form and leg ity:
C 1stian W. Waug City Attorney