2002-33City of Clermont, Florida
Police Officers' Pension Plan Adoption Agreement
Revised November 26, 2002
FLORIDA MUNICIPAL PENSION TRUST FUND
DEFINED BENEFIT PLAN AND TRUST
For Police Officers
ADOPTION AGREEMENT
The undersigned Employer adopts the Florida Municipal Pension Trust Fund Defined
Benefit Plan and Trust for those Employees who shall qualify as Participants hereunder,
to be known as the Retirement Plan and Trust for the
Police Officers of the City of Clermont
It shall be effective as of the date specified below. The Employer hereby selects the
following Plan specifications:
EMPLOYER INFORMATION.
Employer:
Contact Name and Title:
Address:
Telephone:
City of Clermont
Joe Van Zile
P.O. Box 120219
Clermont, Florida 34712-0219
(352) 394-4081
Fag:
E-Mail:
(352) 394-1452
clj vanzile@e arthlink. net
NAME AND ADDRESS OF TRUSTEE:
Florida Municipal Pension Trust Fund
301 S. Bronough St., Suite 300
P.O. Box 1757
Tallahassee, FL 32302-1757
TEL: (850)222-9684 Fax: (850)222-3806
LOCATION OF EMPLOYER'S PRINCIPAL OFFICE:
The Employer is located in the State of Florida
and this Trust shall be enforced and construed
under the laws of the State of Florida.
The reference to statutory minimum requirements is intended for Police Officer and Firefighter Plans that operate under Chapters
175 and 185, Florida Statutes. REVISED AUGUST 2000-JC
ADOPTION AGREEMENT for the Retirement Plan and Trust for
The Police Officers of the City of Clermont
EMPLOYER FISCAL YEAR:
Twelve months commencing on October 1st and ending on September 30th.
A. PLAN INFORMATION
This Adoption Agreement shall establish a Plan and Trust with the
following provisions:
Al) Effective Date:
Effective Date: 12-31-99
A2) Plan Year (12 consecutive month period):
Beginning October 1 and Ending September 30
A3) Plan Anniversary Date (Annual Valuation Date):
October 1
A4) Name of Plan Administrator:
Florida League of Cities, Inc.
301 S. Bronough St.
Post Office Box 1757
Tallahassee, Florida 32302-1757
Tel: (850) 222-9684 Fax: (850) 222-3806
A5) Florida Municipal Pension Trust Fund I.D. Number•
59-2961075
A6) Florida Municipal Pension Trust Funds' Agent for Leal Process:
Florida League of Cities, Inc.
301 South Bronough St., P.O. Box 1757
Tallahassee, FL 32302-1757
Tel: (850) 222-9684 Fax: (850) 222-3806
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ADOPTION AGREEMENT for the Retirement Plan and Trust for
The Police Officers of the Citv of Clermont
B. PLAN
The following classes of employees are eligible to participate in the Plan:
a. ~ Firefighters
1. Full-time
2. Volunteer
b. X Police Officers
c. Public Safety Officers
C. ELIGIBILITY
a. X immediately when hired. (Statutory requirement for Plans operating
under Chapters 175 and 185, Fl. Stat.)
b. other:
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ADOPTION AGREEMENT for the Retirement Plan and Trust for
The Police Officers of the Citv of Clermont
D. SALARY
a. m ~ 1 c~d n ~r ~ is of ~ ~ ~ r~ ~ ter; where, as in
th ~ ~ ~ s~ of - F' • .fi , ~ ~ i~ nn s ased on actual
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services rendered, salary shall be the total cash remuneration received
yearly for such services, prorated on a monthly basis.
The remuneration paid a Firefighter by the employer for a plan year
excludes the following:
1. Overtime
2. Bonuses
3. Lump Sum Payments for Accrued Annual Leave and Sick Leave
4. Other Lump Sum Payments
5. Other Exclusions
4
ADOPTION AGREEMENT for the Retirement Plan and Trust for
The Police Officers of the Citv of Clermont
b. X means the total cash remuneration paid to a Police Officer for services
rendered, including overtime payments which may be limited to not less than 300
hours per calendar year, but not including any payments for extra duty or special
detail work performed on behalf of a second party employer.
The remuneration paid a Police Officer by the employer for a plan year excludes the
following:
1. Overtime pay in excess of 300 hours per calendar year
2. Overtime pay in excess of hours per calendar year
(may not reduce statutory minimum)
3. Lump Sum Payments for Accrued Annual Leave and Sick Leave
4. Other Lump Sum Payments
5. x Other Exclusions
Bonuses
5
ADOPTION AGREEMENT for the Retirement Plan and Trust for
The Police Officers of the Citv of Clermont
c. means the total cash remuneration paid to a Public Safety Officer for
services rendered, including overtime payments which may be limited to not less
than 300 hours per calendar year, but not including any payments for extra duty or
special detail we ,d o e ~ e t to
D D ~ ~ ~
The remunera i ~ ~ Yu ' . _ t I c~ .r for a plan year
exclccdes the f i -~
1. Overtime pay in excess of 300 hours per calendar year
2. Overtime pay in excess of hours per calendar year
(may not reduce statutory minimum)
3. Lump Sum Payments for Accrued Annual Leave and Sick Leave
4. Other Lump Sum Payments
5. Other Exclusions
E. CREDITED SERVICE
Shall mean the total number of years and fractional parts of years of service as a
Participant during which the Participant made required contributions to the Plan,
omitting intervening years or fractional parts of years when such Participant is not
employed by the Employer. (See Plan Definition)
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ADOPTION AGREEMENT for the Retirement Plan and Trust for
The Police Officers of the Citv of Clermont
F. AVERAGE FINAL COMPENSATION
Shall mean one-twelfth (1/12) of the average annual compensation 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, whichever is greater. (See Plan Definition)
G. BENEFIT AMOUNTS AND ELIGIBILITY
G1) Normal Retirement Date:
A Participant's Normal Retirement Date shall be the first day of the month
coincident Wltll or next following the completion of the following
requirements:
(Only actual completed years of credited service will be used to determine normal retirement date)
a. -~~attainment of age 55 and 10 years of service or
attainment of 20 years of service, regardless of age.
b attainment of age 55 and 10 years of service or
attainment of 25 years of service, regardless of age.
c. Other (may not reduce statutory minimums)
G2) Normal Retirement Benefit:
The monthly retirement benefit shall be equal to the:
a. number of years of credited service multiplied by 2%
and multiplied by average final compensation.
b. number of years of credited service multiplied by 3% and
multiplied by average final compensation.
c. X Other (may not reduce statutory minimums)
The sum of (1) the number of vears of service prior to October 1, 2002
multiplied by 2 25% and (2) the number of vears of service after October 1,
2002 multiplied by 3% and multiplied by average final compensation.
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ADOPTION AGREEMENT for the Retirement Plan and Trust for
The Police Officers of the Citv of Clermont
G3) Early Retirement Date:
A Participant may retire on his Early Retirement Date which shall be the
first day of any month coincident with or next following the completion of the
following requirements: (Only actual completed years of credited service will be used to determine early
retirement date.)
a. X attainment of age 50 and the completion of 10 years of credited
service
b, no age requirements, and the completion of 10 years of credited
service
c. other: (may not reduce statutory minimums)
G4) Early Retirement Benefit:
a. 2% for all years
b. 5% for all years prior to age 50, and 3% for each year between
age 50 and normal retirement age.
c. actuarially reduced benefit for all years prior to age 50, and 3%
for each year between age 50 and normal retirement age.
d. ~_ 3% for all years
e. Other (maynotreducestatutoryminimums)
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ADOPTION AGREEMENT for the Retirement Plan and Trust for
The Police Officers of the Citv of Clermont
H. DISABILITY BENEFITS
H1) Disability Benefits In-the-Line-of--Duty:
A member determined to be totally and permanently disabled from
service connected injury or disease will receive the greater of:
a. A monthly pension equal to 42% of average monthly
compensation or an amount equal to the accrued retirement
benefit.
b. X Other (may not reduce statutoryminimums)
The greater of (a) the accrued benefit, (b) the accumulated
contributions at 5% interest, or (c) 42% of average
compensation.
H2) Disability Benefits Off-Duty:
A member determined to be totally and permanently disabled from a non-
service connected injury or disease .must have completed at least the
following years of service.
a. five (5)
b. X ten (10)
c. other (may not reduce statutory minimums)
A member determined to be totally and permanently disabled from anon-
service connected injury or disease and who has completed the required
years of service will receive the greater of
a . A monthly pension equal to 25% of average monthly
compensation or an amount equal to the accrued
retirement benefit.
b. X Other (maynotreducestatutory.minimums)
If not vested, return of contributions with 5% interest. If
vested, the greater of (a) the accrued benefit, (b) the
accumulated contributions at 5% interest, or (c) 25% of
average compensation.
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ADOPTION AGKEEMENT for the Retirement Plan and Trust for
The Police Officers of the City of Clermont
I. DEATH BENEFITS
I1) 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 following benefits:
a. X a refund of one hundred percent (100%) of the member's
accumulated contributions.
b a monthly benefit of 50% of the member's monthly salary at
death, payable for the beneficiary's lifetime. (which must provide a
benefit greater than option a..above)
c. Other (may not reduce statutory minimums)
I2) Death After Vesting - In-Line-Of--Duty:
If a member dies prior to retirement in-the-line-of--duty, but he is vested, having
completed the required years of credited service, his beneficiary shall receive the
following benefits:
a. ~ benefits otherwise payable to the member at the member's early
or normal retirement date.
b.~ a monthly benefit of 50% of the member's monthly salary at
death, payable for the beneficiary's lifetime. (which must provide a
benefit greater than option a. above.)
c. Other (may not reduce statutory minimums)
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ADOPTION AGREEMENT for the Retirement Plan and Trust for
The Police Officers of the City of Clermont
I3) Death Prior to Vesting - Off-Duty:
A. X If a member dies prior to retirement other than in-the-line-of--duty,
but he is not vested, his beneficiary shall receive a refund of one
hundred percent (100%) of the member's accumulated contributions.
B. Other (may not reduce statutory minimums)
I4) Death After Vesting - Off-Duty:
A. ~-- If a member dies prior to retirement other than in-the-line-of--duty,
but he is vested, having completed the required years of credited
service, his beneficiary shall receive the benefits otherwise payable to
the member at the member's early or normal retirement date.
B. Other (may not reduce statutory minimums)
J. 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 five (5) years of credited service upon
termination of employment, the member shall be entitled to a refund of his
accumulated contributions or the member may leave the accumulated
contributions deposited with the fund.
2. If a member has more than five (5) and less than ten (10) years of credited
service upon termination of employment, the member shall be entitled to
their accrued monthly benefit, starting at the member's otherwise normal or
early retirement date, provided he does not elect to withdraw his
contributions and provided he survives to his normal or early retirement
date, in accordance with the following schedule:
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ADOPTION AGREEMENT for the Retirement Plan and Trust for
The Police Officers of the City of Clermont
Years of Vesting
Service
5 50%
g 60%
7 70%
$ 80%
g 90%
For the purposes of this section only, a member may start drawing his vested
accrued benefit at the age of 55. Early retirement deduction will be based on
the years between the age of 55 and the early retirement date.
3. If the member has ten (10) or more years of credited service upon
termination of employment, the member shall be entitled to their accrued
monthly retirement benefits, starting at the member's otherwise normal or
early retirement date, provided he does not elect to withdraw his
contributions and provided he survives to his normal or early retirement
date. Early and normal retirement dates are based on actual years of
service.
K. EMPLOYEE CONTRIBUTIONS
Members of the Plan shall be required to make regular contributions to the Fund in
accordance with the following:
a. 1%
1. After-tax
2. Pre-tax
b. %2 or 1.0% or .50%
1. After-tax
2. Pre-tax
c. X Other (may not reduce statutory minimums)
1. After-tax
2. 3% Pre-tax
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ADOPTION AGREEMENT for the Retirement Plan and Trust for
The Police Officers of the City of Clermont
L. COST OF LIVING ADJUSTMENT (Optional Benefit)
-.
Not appli ~ ~ ~~~ oth ~ ~ ~ ~ Q 'D
~~ D
M. DEFERRED RETIREMENT OPTION PROGRAM"DROP"
I. ELIGIBILITY.
A participant who reaches the normal retirement date as a Police Officer for
the City of Clermont and is a member of the City of Clermont Police Officers'
Pension Plan may enter into a Deferred Retirement Option Plan ("DROP")
on the first day of the month following the attainment of normal retirement
date as defined in the Plan Adoption Agreement. Participants who attained
their normal retirement date prior to the enactment of the "DROP" shall be
afforded the option of participating immediately or retroactively to the date
that they actually attained their normal retirement date. This option must
be exercised no later than (60) days after the Board provided notice of this
option to the affected employee.
II. WRITTEN ELECTION.
An eligible participant electing to participate in the "DROP" must complete
and execute the proper forms supplied by the plan and a resignation of
employment.
Election into the "DROP" is irrevocable once a participant completes the
application to enter the "DROP".
III. LIMITATION AND DISQUALIFICATION FOR OTHER BENEFITS.
A participant may participate in the "DROP" only once. After commencement
of participation the employee shall no longer earn or accrue additional vesting
credits or credited years of service toward retirement benefits and shall not be
eligible for disability or pre-retirement death benefits in the City of Clermont
Police Officers' Pension Plan.
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ADOPTION AGREEMENT for the Retirement Plan and Trust for
The Police Officers of the City of Clermont
1V. CESSATION OR REDUCTION OF CONTRIBUTIONS.
Upon the effective date of a participant's commencement of participation in the
"DROP", the participant's contributions to the City of Clermont Police Officers'
Pension Plan will be discontinued.
V. BENEFIT CALCULATIONS.
For all City of Clermont Police Officers' Pension Plan purposes, the credited
service and vesting credits of a participant participating in the "DROP" shall
remain as they existed on the effective date of commencement of participation in
the "DROP". The participant shall not earn or be credited with any additional
vesting credits or credited service after beginning "DROP" participation. Service
thereafter shall not be recognized by the City of Clermont Police Officers'
Pension Plan or used for the calculation or determination of any benefits
payable by such Plan.
The average final compensation of the participant shall remain as it existed on
the effective date of commencement of participation in the "DROP". Payment
for accrued unused leave (vacation, holiday, etc.) shall be made, at the option of
the participant, from one of the following choices:
1. when commencing participation in the "DROP", or
2. as the leave is actually used during participation in the "DROP", or
3. when the participant actually terminates employment with the City.
Earnings thereafter shall not be recognized by the Plan or used for the
calculation or determination of any benefits payable by the Plan. However, the
value of any retirement gift provided by the City shall be based on the date that
a participant actually leaves employment with the City including the "DROP"
participation period.
VI. PAYMENTS TO DROP ACCOUNT.
The monthly retirement benefits that would have been payable had the member
elected to cease employment and receive normal retirement benefits shall be
deposited in the participant's "DROP" account.
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ADOPTION AGREEMENT for the Retirement Plan and Trust for
The Police Officers of the Citv of Clermont
VII. DROP ACCOUNT EARNINGS.
After each fiscal year quarter, the average daily balance in a participant's
deferred retirement option account shall be credited at a rate of six and one-
half percent (6.5%) annual interest compounded monthly. The Board of
Trustees along with the City shall review the stated rate of return on an
annual basis in order to determine the necessity of any adjustment for future
"DROP" participants only.
VIII. MAXIMUM PARTICIPATION,
A participant may participate in the "DROP" for a maximum of sixty (60)
months. At the conclusion of the sixty (60) months, the participants' covered
city employment must terminate pursuant to the resignation submitted by
the participant as part of the "DROP" application. The participant may
terminate "DROP" participation by advancing their resignation from covered
city employment to a date prior to that submitted by the participant as part
of the "DROP" application.
IX. PAYOUT.
A. Upon the termination of a member's covered City employment (for any
reason, whether by retirement, resignation, discharge or death), the
retirement benefits payable to the participant or the participant's
beneficiary (if the participant selected an optional form of retirement
benefit which provides for payments to the beneficiary) shall be paid to
the member or beneficiary and shall no longer be deposited into the
participant's "DROP" account.
B. Within thirty (30} days after the end of any calendar quarter following
the termination of a participant's employment, the balance in the
participant's "DROP" account shall be payable at the participant's option:
1. In full in a single lump sum payment, all accrued "DROP" benefits,
plus interest, less withholding taxes remitted to the Internal Revenue
Services (IRS), paid to the "DROP" participant or surviving
beneficiary, or;
2. As a direct rollover, all accrued "DROP" benefits, plus interest, paid
directly from the "DROP" to the custodian of an eligible retirement
plan as defined in Section 402(c)(8)(B), Internal Revenue Code (IRC).
If benefit is to be paid to a surviving beneficiary, the transfer shall be
to an individual retirement account or annuity as described in Section
402(c)(9), IRC.
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ADOPTION AGREEMENT for the Retirement Plan and Trust for
The Police Officers of the Citv of Clermont
3. Partial lump sum - A portion of the accrued "DROP" benefits shall be
paid to the participant or surviving beneficiary, less IRS tax, and the
remaining "DROP" benefits shall be transferred directly to the
custodian of an eligible retirement plan as defined in Section 402
(c)(8)(B), IRC. However, in the case of an eligible rollover distribution
to the surviving beneficiary of a deceased participant, an eligible
retirement plan is an individual retirement account or annuity as
described in Section 402(c)(9), IRC. The "DROP" participant or
surviving beneficiary shall specify the proportions.
Regardless of the option selected by the participant, the Board of Trustees has
the right to accelerate payments in order to comply with Section 401 (A)(9) of
the Internal Revenue Code and the right to defer payments to comply with
Section 415 of the Internal Revenue Code.
X. DEATH.
If a "DROP" participant dies before their account balances are paid out in
full, the participant's designated beneficiary shall have the same rights
as the participant to elect and receive the payout options set forth in
paragraph nine (IX) above. "DROP" payments to a beneficiary shall be in
addition to any retirement benefits payable to the participant.
Participants who are or have been "DROP" participants are not eligible
for pre-retirement death or disability benefits.
XI. FORMS.
The forms and notices appxoved by the City shall be used in the
administration of The "DROP" Plan.
XII. AMENDMENT.
The Board of Trustees, upon approval by the City Council, can amend the
"DROP" at any time. Such amendments shall be consistent with the
provisions covering deferred retirement option plans set forth in any
applicable collective bargaining agreement and shall be binding upon all
future "DROP" participants and upon all "DROP" participants who have
balances in their accounts. Such amendments may increase the expense,
decrease the account earnings, or limit or restrict the payout options.
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ADOPTION AGREEMENT for the Retirement Plan and Trust for
The Police Officers of the City of Clermont
This Adoption Agreement may be used only in conjunction with the Basic
Defined Benefit Plan Document. This Adoption Agreement and the Basic
Defined Benefit Plan Document shall together be known as the Retirement
Plan and Trust for the Police Officers of the City of Clermont
The Adoption Agreement and the Basic Defined Benefit Plan Document are
furnished for the consideration of the Employer and its legal and financial
advisors. The Florida Municipal Pension Trust Fund advises the sponsoring
Employer to consult with its own attorney and financial advisors on the legal
and tax implications of the Defined Benefit Plan and the Adoption
Agreement. Nothing herein should be construed as constituting legal or tax
advice.
We understand that the Employer may amend any election in this Adoption
Agreement by giving the Trustee written notification of such Amendment as
adopted.
The Employer hereby agrees to operate under the provisions of the Master
Trust Agreement creating the Florida Municipal Pension Trust Fund, which
is incorporated in full into this Agreement and attached hereto as Exhibit A
to the Basic Defined Benefit Plan Document and the Adoption Agreement.
IN WITNESS WHEREOF, the Employer and Trustee hereby cause this
Agreement to be executed on this 26th day of November, 2002.
EMPLOYER:
City of Clermont
By: ~ _._ ~ Date: November 26, 2002
Tit MAYOR
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