O-2016-37 (copy) CITY OF CLERMONT
ORDINANCE No. 2016-37
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CLERMONT, LAKE COUNTY, FLORIDA, AMENDING THE CITY OF
CLERMONT POLICE OFFICERS'PENSION TRUST FUND,AS ADOPTED
BY ORDINANCE NO. 304-C;PROVIDING PLAN BENEFIT REVISIONS;
PROVIDING FOR SEVERABILI-TY OF PROVISIONS; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Clermont Police Officers' are presently provided pension and
certain other benefits under Ordinance No. 304-C and;
WHEREAS, the City Council desires to amend the provisions of the Police Officers'
Retirement Plan pursuant to the collective bargaining process;
SECTION 1.
NOW,THEREFORE BE IT ORDAINED,by the City Council of the City of Clermont,
Lake County,Florida that the following sections of the Police Officers' Retirement Plan Adoption
Agreement shall be amended to read as follows (note: strikethrough indicates removed words and
underlined indicates added):
E. CREDI-TED SERVICE
Shall mean the total number of years and fractional parts of years of service as a participant during
which the participant made required contributions to the plan, omitting intervening years or
fractional parts of years when such participant is not employed by the City of Clermont. Credited
service shall also include credited service purchased by a member in accordance with this
section:
1. Participants who are employed in a position covered by the Plan may purchase up
to a total of five(5)additional years of credited service under the Plan for:
a. The years and fractional parts of years that a member served as a full-time
Police.Officer for any other municipal, county or state law enforcement
department in the'State of Florida, or for full time service as a federal or
other state,county or municipal service as a Law Enforcement Officer if the
prior service is recognized by the Criminal Justice Standards and Training
Commission within the Department of Law Enforcement;as provided under
Chapter 943,,Florida Statutes, or the Police Officer provides proof to the
Board that such service is equivalent to the service required to meet the
definition of a Police Officer as defined herein; and/or
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CITY OF CLERMONT
ORDINANCE No. 2016-37
b. The years or fractionalparts 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. Any participant who
elects to purchase credited service shall pay the full actuarial cost of such
credited service on or before three (3) months from date of election to
purchase such credited service,in accordance with Subsection 3 below. The
calculation of the full actuarial cost shall be made using the assumptions
contained in the actuarial valuation performed prior to the purchase of the
service credits. The employee salary used as the initial salary for the
projected salary shall be the salary for the year preceding the purchase of the
service credits. The service credits shall be used for vesting,benefit accrual,
and for satisfying service requirements for benefits.
2. No additional service credit will be allowed if the participant is receiving or will
receive any other retirement benefit based on the prior government service.
3. Payment for the purchase of credited service authorized in Subsection 1,above,
shall be made in one of the following manners:
a. Cash lump sum payment.
b. Direct transfer or rollover of an eligible rollover distribution from a qualified
plan.
c. Any reasonable method established by the Trustees provided;however,that
participants similarly situated shall be similarly treated.
Full payment for the purchase of past service credit must be made before separation from
City employment.
M. DEFERRED RETIREMENT'OPTION PROGRAM (DROP)
1. 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 any month following the
attainment of normal retirement date as defined in the Plan Adoption Agreement.
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CITY OF CLERMONT
ORDINANCE No. 2016-37
2. 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".
3. 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.
4. Cessation or Reduction or 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.
5. 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:
a. when commencing participation in the"DROP", or
b. as the leave is actually used during participation in the"DROP", or
c. 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.
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CITY OF CLERMONT
ORDINANCE No. 2016-37
6. Payment of Drop Accounts
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.
7. 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.
8. 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.
9. Payout
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
beneficiaryarid shall no longer be deposited into the participant's"DROP"account.
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:
a. 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;
b. 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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CITY OF CLERMONT
ORDINANCE No. 2016-37
c. 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.
10.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.
11.Forms
The forms and notices approved by the City shall be used in the administration of the"DROP"
Plan.
12.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 inany 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 mayincrease the expense,decrease the account earnings,or limit or
restrict the payout options.
SECTION 2.
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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CITY OF CLERMONT
ORDINANCE No. 2016-37
SECTION 3.
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 4.
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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CITY OF CLERMONT
ORDINANCE No. 2016-37
PASSED AND ADOPTED by the City Council of the City of Clermont, Lake County,
Florida on this 13th day of September, 2016.
E ti`
p•
r >`") - I' CITY OF CLERMONT
.j. /die /
=' e • Gail L. Ash, Mayor
raa.aAase '
ATTEST:
411(
Tracy • ' oy.rowe, City Clerk
•
Approved as ti : "and legality:
Dani Maritzaris;Cit --
FLORIDA MUNICIPAL PENSION TRUST FUND
DEFINED BENEFIT PLAN AND TRUST
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: City of Clermont
Contact Name and Title: Joseph E. Van Zile,
Finance Director
Address: P. O. Box 120219
Clermont, FL 34712-0219
Telephone: 352-241-7368
Fax: 352-394-4082
E-Mail: jvanzile@clermontfl.org
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.
EMPLOYER FISCAL YEAR:
Twelve months commencing on October 1st and ending on September 30th.
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A. PLAN INFORMATION
This Adoption Agreement shall establish a Plan and Trust with the following provisions:
1. Plan Inception Date: December 20, 1960
2. Plan Year(12 consecutive month period)
Beginning October 1 and Ending September 30
3. Plan Anniversary Date (Annual Valuation Date): October 1
4. Name of Plan Administrator:
Florida League of Cities, Inc.
301 S. Bronough St., Suite 300
Post Office Box 1757
Tallahassee, Florida 32302-1757
Tel: (850)222-9684 Fax: (850)222-3806
5. Florida Municipal Pension Trust Fund I.D. Number: 59-2961075
6. Florida Municipal Pension Trust Funds' Agent for Legal Process:
Christiansen & Dehner, P. A.
63 Sarasota Center Boulevard, Suite 107
Sarasota, FL 34240
Tel: (941) 377-2200 Fax: (941) 377-4848
B. PLAN
This plan represents the full-time Police Officers of the City of Clermont.
C. ELIGIBILITY
All full-time Police officers of the City of Clermont are eligible to participate in this plan
immediately when hired. (Statutory requirement for Plans operating under Chapters 185,
Fl. Stat.)
D. SALARY
Shall mean the total cash remuneration paid to a Police Officer for services rendered, but
not including any payments for extra duty or special detail work performed on behalf of a
second party employer. The amount of annual overtime compensation that may be
included in the calculation of the participant's retirement benefit shall be limited to the first
three hundred (300) hours of overtime paid per calendar year. The remuneration paid a
Police Officer by the employer for a plan year excludes bonuses. The amount of the
accrued unused sick or annual leave payment at retirement that may be included in the
calculation of the participant's 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 participant
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 participant at retirement.
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E. CREDITED SERVICE
Shall mean the total number of years and fractional parts of years of service as a
participant during which the participant made required contributions to the plan, omitting
intervening years or fractional parts of years when such participant is not employed by the
City of Clermont. Credited service shall also include credited service purchased by a
member in accordance with this section:
1. Participants who are employed in a position covered by the plan may
purchase up to a total of five (5) additional years of credited service under the
plan for:
a. The years and fractional parts of years that a member served as a full-
time police officer for any other municipal, county or state law
enforcement department in the State of Florida or for full time service as
a federal or other state, county or municipal service as a law enforcement
officer if the prior service is recognized by the Criminal Justice Standards
and Training Commission within the Department of Law Enforcement, as
provided under Chapter 943, Florida Statutes, or the police officer
provides proof to the Board that such service is equivalent to the service
required to meet the definition of a police officer as defined herein; and/or
b. The years or fractional parts of years that a police officer serves or has
served on active duty in the military service of the Armed Forces of the
United States, the United States Merchant Marine or the United States
Coast Guard, voluntarily or involuntarily and honorably or under
honorable conditions, prior to first and initial employment with the City.
Any participant who elects, to purchase credited service, shall pay the full
actuarial cost of such credited service on or before three (3) months from
date of election to purchase such credited service in accordance with
subsection 3 below. The calculation of the full actuarial cost shall be
made using the assumptions contained in the actuarial valuation
performed prior to the purchase of the service credits. The employee
salary used as the initial salary for the projected salary shall be the salary
for the year preceding the purchase of the service credits. The service
credits shall be used for vesting, benefit accrual and for satisfying service
requirements for benefits.
2. No additional service credit will be allowed if the participant is receiving or will
receive any other retirement benefit based on the prior government service.
3. Payment for the purchase of credited service authorized in subsection
1, above, shall be made in one of the following manners:
a. Cash lump sum payment.
b. Direct transfer or rollover of an eligible rollover distribution from a
qualified plan.
c. Any reasonable method established by the Trustees provided,
however, that participants similarly situated shall be similarly treated.
Full payment for the purchase of past service credit must be made before separation
from City employment.
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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.
G. BENEFIT AMOUNTS AND ELIGIBILITY
1. Normal Retirement Date
A Participant's Normal Retirement Date shall be the first day of the month coincident
with or next following the attainment of age 55 and 10 years of service or 20 years of
service, regardless of age.
2. Normal Retirement Benefit
The monthly retirement benefit shall be equal to the sum of(1)the number of
years of service prior to October 1, 2002 multiplied by 2.25% and (2)the number of
years of service after October 1, 2002, multiplied by 3% and multiplied by average
final compensation.
3. 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 attainment of age 50 and the
completion of 10 years of credited service.
4. Early Retirement Benefit
The accrued benefit will be reduced by three percent(3%)for all years before normal
retirement age.
H. DISABILITY BENEFITS
1. 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)the accrued benefit, (b)the
accumulated contributions at 5% interest or(c)42% of average compensation.
2. 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 ten (10)years of service.
A member determined to be totally and permanently disabled from a non-service
connected injury or disease and who has completed the required years of service will
receive the greater of(a)the accrued benefit, (b)the accumulated contributions at 5%
interest or(c) 25% of average compensation. A member determined to be totally and
permanently disabled from a non-service connected injury or disease and who has
not completed the required years of service shall receive a return of employee
contributions with 5% interest.
I. DEATH BENEFITS
1. 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 a refund of one hundred percent(100%)of the member's
accumulated contributions.
2. Death After Vesting - In-Line-Of-Duty
If a member dies prior to retirement in-the-line-of-duty, and 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.
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3. Death Prior to Vesting—Off-Duty
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.
4. Death After Vesting - Off-Duty
If a member dies prior to retirement other than in-the-line-of-duty, and 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.
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 the 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 retirement 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:
Years of Service Vesting %
5 50%
6 60%
7 70%
8 80%
9 90%
For the purposes of this section only, a member may start drawing his vested Accrued
Benefit at age 55. Early retirement deduction will be based on the years between age
55 and 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
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. Early and Normal Retirement Dates are
based on actual years of Credited Service.
K. EMPLOYEE CONTRIBUTIONS
Members of the Plan shall be required to make regular contributions to the Fund in the
amount of three percent(3%) % of their salary on a pre-tax basis.
L. COST OF LIVING ADJUSTMENT
Not applicable unless otherwise stated.
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M. DEFERRED RETIREMENT OPTION PROGRAM (DROP)
1. 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 any
month following the attainment of normal retirement date as defined in the Plan
Adoption Agreement.
2. 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".
3. 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.
4. Cessation or Reduction or 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.
5. 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:
a. when commencing participation in the "DROP", or
b. as the leave is actually used during participation in the "DROP", or
c. 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.
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6. Payments to DROP Accounts
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.
7. 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.
8. 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.
9. Payout
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.
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.
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.
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10. 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.
11. Forms
The forms and notices approved by the City shall be used in the administration of
The "DROP" Plan.
12. 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.
N. SHARE PLAN
The purpose of this Section is to implement the provisions of Chapter 185, Florida
Statutes, and to provide a mechanism to pay required "extra benefits" to Police Officers
based on the growth of premium tax revenue pursuant to Chapter 185. The monies shall
be derived exclusively from monies received from the state and not from any additional
taxes levied by the City.
Effective January 26, 2016, the City agrees to convert 100% of the Chapter 185 reserve
fund to a share plan. The total amount shall be credited to each Participant based on
their completed months of credited service in proportion to the combined completed
months of credited service of all Participants.
Effective January 26, 2016, the Union agrees to allow the City to use 100% of all future
Chapter 185 annual distributions up to the amount received in the 2012 calendar year
($211,000) and 50% of any future annual amounts in excess of the 2012 calendar year
distribution to fund the normal cost of the pension plan. The remaining 50% of any
future annual amounts in excess of the 2012 calendar year distribution shall be credited
to Participant share accounts, with each Participant's account receiving an equal share
of the total amount allocated.
All monies received will be placed in the Fund, as outlined in Article 4 of the Basic Plan
Document, and shall be commingled for investment purposes with the other assets of
the City's retirement pension funds. Separate accounting shall be maintained for all
commingled assets.
In accordance with provisions of Chapter 185, Florida Statutes and such other required
authority, a Police Officer, who is a Participant, shall be entitled to one share for each
year of Credited Service, as defined below, as a Police Officer of the City. Each
Participant shall thereupon have as many shares as years of Credited Service. The
number of years of Credited Service rendered by each Participant shall be determined
and a record thereof shall be made on the Participant's service record.
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For purposes of this Section, the word, Credited Service shall mean all time served as a
regularly appointed or employed Police Officer of the City for which regular
compensation is paid by the City and all times during which a Participant is absent on
military leave. It shall include all leave of absences with pay, but shall not include leave
of absences during which no regular compensation is paid by the City, except military
leave. Credited Service for the purposes of the Share Plan only, shall include
participants in the DROP.
Available funds shall be credited to active Participant share accounts, or Participants in
the DROP, as of September 30th of the applicable Plan Year. Available funds shall be
prorated to each qualifying Police Officer in proportion to the number of individual
shares for the Plan Year by credit to the Fund.
The Board of Trustees shall pay all costs and expenses for the management and
operation for the current fiscal year and shall set aside as much of the income as it
considers advisable as a reserve for expenses for the next fiscal year. After deducting
these monies, the remaining monies shall be allocated and credited to the Fund on
behalf of the respective Participants. The City shall bear no expense in the operation of
this share plan.
Upon termination of employment, the Participant shall be paid the entire amount
standing to this credit in the Fund in a lump sum to the Participant as soon as
administratively feasible following his termination of employment.
No Participant, or designated beneficiary, shall be entitled to payment of their share
balance unless the Participant or beneficiary becomes eligible for a normal, early,
disability, or death benefit from the defined benefit plan. Upon the separation from
service of a non-vested Participant (as defined in Section J. of the Adoption Agreement),
shares shall revert back into this Share Plan and shall be reallocated to the membership
unless the former Participant returns to service prior to the September 30th allocation
date.
If any provisions of this Section or the Plan hereby created shall conflict with the provisions
of Chapter 185, Florida Statutes, such conflict shall be resolved in favor of the statutory
provisions which are intended to control.
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.
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IN WITNESS WHEREOF, the Employer and Trustee hereby cause this Agreement to
be executed on this 13th day of September 2016.
City of Clermont
(715 -/L./Gail L.Ash, Mayor
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