2002-34City of Clermont, Florida
Firefighters' Pension Plan Adoption Agreement
Revised November 26, 2002
FLORIDA MUNICIPAL PENSION TRUST FUND
DEFINED BENEFIT PLAN AND TRUST
Firefighters
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
Firefighters 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:
Fax:
E-Mail:
Joe Van Zile
P.O. Box 120219
Clermont, Florida 34712-0219
(352) 394-4081
(352) 394-1452
cljvanzile@earthlink.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.
EMPLOYER FISCAL YEAR:
Twelve months commencing on October 1st and ending on September 30th.
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
Retirement Plan and Trust for
the Firefighters of the City of Clermont
A. PLAN INFORMATION
This Adoption Agreement shall establish a Plan and Trust with the
following provisions:
A1) Effective Date:
Effective Date:
12-31-99
A2) Plan Year (12 consecutive month period):
Beginning October 1 and Ending September 30
A3) Plan Anniversar~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 Legal 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
Retirement Plan and Trust for
the Firefighters of the City of Clermont
B. PLAN
The following classes of employees are eligible to participate in the Plan:
a. ~ X Firefighters
1. Full-time
2. Volunteer
b. 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
Retirement Plan and Trust for
the Firefighters of the City of Clermont
D. SALARY
FIREFIGHTER
a. X means the fixed monthly remuneration paid a Firefighter; where, as in
the case of a Volunteer Firefighter, remuneration is based on actual
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
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ADOPTION AGREEMENT
Retirement Plan and Trust for
the Firefighters of the City of Clermont
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)
F. AVERAGE FINAL COMPENSATION
Full-Time Firefighters -one-twelfth of the average annual compensation of the 5
best years of the last 10 years of creditable service prior to retirement, termination
or death, or the Full-time Firefighter career average of the Firefighter, whichever is
greater.
Volunteer Firefighters - the average salary of the 5 best years of the last 10 best
contributing years prior to change in status to a permanent Full-time Firefighter or
retirement as a Volunteer Firefighter or the career average of the Firefighter,
whichever is greater.
G. BENEFIT AMOUNTS AND ELIGIBILITY
Gl) Normal Retirement Date:
A Participant's Normal Retirement Date shall be the first day of the
month coincident with or next following the completion of the following
requirements:
(Only actual completed years of credrfed service will be used to determine normal retirement date)
a. X attainment of age 55 and 10 years of service or
attainment of age 52 and 25 years of service.
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)
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ADOPTION AGREEMENT
Retirement Plan and Trust for
the Firefighters of the City of Clermont
G2) Normal Retirement Benefit:
The monthly normal retirement benefit for Full-time Firefighters shall
be:
The sum of (1) the number of years 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.
The monthly normal retirement benefit for Volunteer Firefighters shall
be the greater of
(a) five dollars ($5.00) a year multiplied by the years of credited volunteer
service, or
(b) the sum of (1) the number of years of credited volunteer service prior
to October 1, 2002 multiplied by 2.25% and (2) the number of years of
credited volunteer service after October 1, 2002 multiplied by 3% and
multiplied by average monthly compensation as a volunteer.
The monthly normal retirement benefit of a Volunteer Firefighter
that changes status from a Volunteer Firefighter to a Full-time
Firefighter shall be:
The sum of
(1) the accrued benefit as a volunteer firefighter, and
(2) the accrued benefit as a full-time firefighter.
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 fo determine early
retirement dafe.)
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.
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ADOPTION AGREEMENT
Retirement Plan and Trust for
the Firefighters of the City of Clermont
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. X 3% for all years
e. Other (May not reduce statutory minimums)
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. X A monthly pension equal to 42% of average monthly
compensation or an amount equal to the accrued
retirement benefit.
b. Other (maynotn;ducestatutoryminimums)
The greater of (a) the accrued benefit, (b) the accumulated
contributions at 5% interest or (c) 42% of average
compensation.
7
ADOPTION AGREEMENT
Retirement Plan and Trust for
the Firefighters of the City of Clermont
H2) Disabilit~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 c
compensation or an amount equal to the accrued
retirement benefit.
b. X Other (may not reduce statutory 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 AGREEMENT
Retirement Plan and Trust for
the Firefighters 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. X 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)
9
ADOPTION AGREEMENT
Retirement Plan and Trust for
the Firefighters of the City of Clermont
I3) Death Prior to Vesting - Off -Duty:
a. ~_ 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. X 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
The sum of the volunteer firefighter years of service and full-time firefighter years of
service will be counted in total for vesting purposes.
If a member's employment is terminated either voluntarily or involuntarily the
following benefits are payable:
1) If a 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:
10
ADOPTION AGREEMENT
Retirement Plan and Trust for
the Firefighters of the City of Clermont
Years of Vesting
Service ~
5 50~
6 60~
'7 70$
8 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 this 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. X 1%
1. After-tax
2. X Pre-tax
b. 1/2 of 1.0% or .50
1. After-tax
2. Pre-tax
c. Other (may not reduce stafutory minimums)
1. After-tax
2. Pre-tax
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ADOPTION AGREEMENT
Retirement Plan and Trust for
the Firefighters of the City of Clermont
L. COST OF LIVING ADJUSTMENT (Optional Benefit)
Not ap J less ~r' ~ to . ~ Q ~
~; ~
M. DEFERRED RETIREMENT OPTION PROGRAM "DROP"
I. ELIGIBILITY.
A participant who reaches the normal retirement date as a Firefighter for the
City of Clermont and is a member of the City of Clermont Firefighters' 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
Firefighters' Pension Plan.
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 Firefighters'
Pension Plan will be discontinued.
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ADOPTION AGREEMENT
Retirement Plan and Trust for
the Firefighters of the City of Clermont
V. BENEFIT CALCULATIONS.
For all City of Clermont Firefighters' 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 Firefighters' 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.
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.
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ADOPTION AGREEMENT
Retirement Plan and Trust for
the Firefighters of the City of Clermont
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 members' 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
Retirement Plan and Trust for
the Firefighters of the City 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 approved 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
Retirement Plan and Trust for
the Firefighters 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 Firefighters 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
Title• Mayor
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