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Ord 17-16ORDINANCE NO. 17-16 AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING CHAPTER 33 "POLICE AND FIRE -RESCUE DEPARTMENTS" BY AMENDING TITLE 3 "PENSIONS," TO IMPLEMENT THE 2014-2017 COLLECTIVE BARGAINING AGREEMENT BETWEEN THE- CITY AND THE. PROFESSIONAL FIREFIGHTERS/PARAMEDICS OF PALM BEACH COUNTY AND THE AMENDMENT TO THE 2014-2017 COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY AND THE PALM BEACH COUNTY POLICE BENEVOLENT ASSOCIATION; ESTABLISHING SEPARATE RETIREMENT SYSTEMS FOR POLICE OFFICERS AND FIREFIGHTERS, AND PROVIDING FOR' ALLOCATION OF ASSETS . AND LIABILITIES ATTRIBUTABLE TO POLICE OFFICERS AND FIREFIGHTERS AND THE TRANSFER OF ASSETS AND LIABILITIES FROM THE EXISTING POLICE AND FIREFIGHTERS RETIREMENT SYSTEM TO THE NEW POLICE OFFICERS' RETIREMENT SYSTEM AND FIREFIGHTERS' RETIREMENT SYSTEM; CREATING .NEW BOARDS OF TRUSTEES TO ADMINISTER THE NEW POLICE OFFICERS' RETIREMENT SYSTEM AND FIREFIGHTERS' RETIREMENT SYSTEM; REVISING RETIREMENT BENEFITS FOR FIREFIGHTERS AND POLICE OFFICERS; MODIFYING THE USE OF PREMIUM TAX REVENUES RECEIVED PURSUANT TO F.S. CHAPTERS 175 AND 185; REVISING THE RETIREMENT BENEFIT ENHANCEMENT; DELETING OUTDATED LANGUAGE, CORRECTING REFERENCES AND MAKING OTHER TECHNICAL CHANGES; PROVIDING FOR SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Delray Beach and the Professional Fire Fighters / Paramedics of Palm Beach County, Local 2928, IAFF have ratified a collective bargaining agreement for October 1, 2014 through September 30, 2017 ("IAFF Agreement"); and 1 i WHEREAS, the City of Delray Beach and Palm Beach County Police Benevolent Association have agreed to amend their collective bargaining agreement for October 1, 2014 through September 30, 2017 ("Amendment to PBA Agreement"); and WHEREAS, the IAFF Agreement and Amendment to PBA Agreement provide for the establishment of separate retirement systems for police officers and firefighters, a new board of . trustees for each system, changes in retirement benefits for firefighters and police officers, changes in the allocation and use of Chapter 175 and 185 premium tax revenues, and changes to the retirement benefits of firefighters and police officers; and WHEREAS, to implement the retirement changes, it is necessary to amend the Police and Firefighters Retirement System, now codified in Sections 33.60 through 33.73 of the Delray Beach City Code. NOW THEREFORE, IT IS HEREBY ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. Recital Adopted. That the above -stated recital is hereby adopted and confirmed. Section 2. Code Amended. That Chapter 33 "Police and Fire -Rescue Departments of the City Code is hereby amended to read as follows: CHAPTER 33. — POLICE AND FIRE -RESCUE DEPARTMENTS Sec. 33.58. - SEPARATE RETIREMENT SYSTEMS ESTABLISHED FOR POLICE OFFICERS AND FIREFIGHTERS. Notwithstanding any other provision of this Chapter: (A) Effective October 1 2016 separate retirement systems for police officers and firefighters shall be established as provided in sections 33.59 through 33.72 for police officers (to be known as the Police Officers' Retirement System) and sections 33.73 through 33.91 for firefighters (to be known as the Firefighters' Retirement System) and the existing City of Delray Beach Police and Firefighters Retirement System shall be replaced by the Police OfficersRetirement System and the Firefighters' Retirement System as provided herein (L3) Effective October 1 2016 all assets and liabilities of the City of Delray Beach Police and Firefighters Retirement System attributable to active terminated and retired police officer 2 members and their beneficiaries shall be transferred to and become assets and liabilities of the Police Officers' Retirement -System created by section 33 59 to be invested and utilized as provided in sections 33.60 through 33.72. Effective October 1 2016 all active terminated and retired police officer members of the City. of Delray Beach Police and Firefighters Retirement System and their beneficiaries shall become members and beneficiaries of the Police Officers' Retirement System and shall be entitled to benefits as provided in sections 33.60 through 33.72. (C) Effective October 1 2016 all assets and liabilities of the City of Delray. Beach Police and Firefighters Retirement System attributable to active terminated and retired firefighter members and their beneficiaries shall be transferred to and become assets and liabilities of the Firefighters' Retirement System created by section 33 73 to be invested and utilized as provided in sections 33.74 through 33.91. Effective October 1 2016 all active terminated and retired firefighter members of the City of Delray Beach Police and Firefighters Retirement System and their beneficiaries _shall become members and beneficiaries of the Firefighters' Retirement System, and shall be entitled to benefits as provided in sections 33 74 through 33.9 1 (D) In determining the assets and liabilities of the City of Delray Beach Police and Firefighters Retirement System attributable to police officers and firefighters as provided in subsections (B) and (C) above the actuary shall utilize one of the following methods: (1) the ratio of the present value of accrued benefits for each of the police officer and firefighter members (and beneficiaries of such members if applicable) to the total present value of accrued benefits; (2) a methodology based on the funded ratio of the Police Officers' Retirement System and Firefighters' Retirement System which shall be the same as the funded ratio of the City of Delray Beach Police and Firefighters Retirement System on the date of the most recent actuarial valuation; or (3) such other method as may be approved by the board of trustees of the City of Delray Beach Police and Firefighters Retirement System (E) Effective October 1 2016 all existing contracts of the City of Delray Beach Police and Firefighters Retirement System shall become contracts of the Police Officers' Retirement System and Firefighters' Retirement System and the board of trustees of each system shall work with each contractor to revise the contractor's fees and other contract terms as appropriate to reflect the assets of each system and any other changes in the scope of the contractor's duties resulting from the change in the structure of the plans All investment holdings of the City of Delray Beach Police and Firefighters Retirement System shall be divided to the extent legally permissible, in the same proportion as the assets attributable to police officers and firefighters as provided in subsection (D) above and shall become holdings of the Police Officers' Retirement System and Firefighters' Retirement System respectively_ 3 F Effective October 1 2016 the plan administrator for the City of.Delrgy Beach Police and Firefi hters Retirement S - -Stem shall become the plan or the Police Officers' �edmini � shall work work with the board of Retirement System and the Firefi hters' Retirement Sys on 33.58 the trustees for each system to implement and facilitate the rovisions of this sectiand other char es in this Chapter and shall continue to act as plan administrator 2016,Until the bo of determined b each board of trustees. Duringthe period nor to October l trustees of the City of DeIrL%y Beach Police and Firefi hters Retirement S stem shall take all necessga and gppropriate action to implement and facilitate the provisions of this section 33.58 and the other changes in this Cha ter and to ensure that the benefits due retiredan members and beneficiaries are not interru ted and that gpy benefit gpplications submitted b lan members are processed in a timel manner. Commencing -October 1 2016 the boards of trustees for the Police Officers' Retirement S stem and Firefi hters Retirement S stem shall take all necessary and gppropriate action to implement and facilitate the provisions of this section 33.58 and the other changes in this Chapter, and to ensure that the benefits due retired plan members are not interru ted and that an benefit a lications submitted b plan members are processed in a timely manner. G The board of trustees for the Cily of Delrqy Beach Police and Firefighters Retirement System in effect prior to October 1 2016,may continue to operate in a ministerial cNaoity,on and after that date through November 30 2016 for the sole Tose of facilitating e on of the police officers' and firefi hters' retirements stems allocatin and transferrin the assets and liabilities to the Police Officers' Retirement System and the Firefighters' Retirement System, and otherwise im lementin the rovisions of this section 33.58 and the other changes in this Beach Police and Firefi tens Chapter. However, if all assets and liabilities of the City of Delray Retirement System are transferred to the police officers' and firefi hters' retirements stems sooner than November 30 2016 the board of trustees for the City of Delra and liabilities Police have Firefi hters Retirement S stem shall cease to exist on the date that all assets been transferred and the terms of the trustees of that s stem shall ex ire on the same date. POLICE OFFICERS' RETIREMENT SYSTEM �PBN&XW Sec 33.59. Establishment of Police Officers' Retirement System. Effective October 1 2016 the C:jjy of Delrgy Beach Police Office s'Rq officers and etheir established to continue providingretirement benefits to Ci policebeneficiaries as provided in sections 33.60 through 33.74 below. 4 Sec. 33.60. - DEFINITIONS. For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. Actuarial equivalence or Actuarially equivalent. This term shall mean that any benefit payable under the terms of the pension fund in a form other than the normal retirement pension shall have the same actuarial present value on the date payment commences as the normal retirement pension. For purposes of establishing the actuarial present value of any form of payment, all future payments shall be discounted for interest and mortality by using seven (7) percent interest and the 1983 Group Annuity Mortality Table for Males, with ages set ahead five (5) years in the case of disability retirees. Agreement. The written instrument setting forth the provisions of the retirement system. Average monthly earnings. (1) One thirty-sixth of the arithmetical average for the highest consecutive thirty -six-month period preceding the actual retirement or termination of a member; provided, however, the benefit derived shall not be less than the benefit that would have been paid based on a definition of average monthly earnings of one twenty-fourth of the arithmetical average for the highest consecutive twenty -four-month period, as calculated prior to. March 11,200^+1 + a + �n a r anee No. 17-04. (2) Notwithstanding paragraph (1) above, for peliee of e members hired after July 7, 2015, average monthly earnings means one -sixtieth of the arithmetical average for the highest five (5) years of the last ten (10) years preceding the actual retirement or termination of the member. (3) In addition to other applicable limitations set forth in the plan, and notwithstanding any other provisions of the plan to the contrary, for the plan years beginning on or after January 1, 1996, the annual compensation of each member taken into account under the plan shall not exceed the annual compensation limit of Section 401(a)(17)(B) of the Internal Revenue Code, as amended for cost of living increases, which is incorporated herein by reference. Beneficiary. The person entitled to receive benefits hereunder at the death of a member who has been designated in writing by the member and filed with the Board of Trustees. If no designation is in effect at the time of death of the member, or if no person so designated is living at that time, the beneficiary shall be the estate of the member. Board. The Board of Trustees which shall administer and manage the system herein provided and serve as Trustee of the Trust Fund. City. The City of Delray Beach, Florida. Continuous service. (1) Uninterrupted service by a member (expressed as years and completed months) from the date he last entered employment as an employee until the date his employment is terminated by death, disability, retirement, resignation or discharge. (2) However, the continuous service of any member shall not be deemed to be interrupted by: (a) Any authorized leave of absence or vacation, provided all members similarly situated in similar circumstances shall be treated alike pursuant to uniform, nondiscriminatory rules. No credit for benefit eligibility for computation purposes under the system shall be allowed for any such period of leave of absence. (b) Any service, whether voluntary or involuntary, in the armed forces of the United States, provided the member is legally entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act of 1994 and any amendments thereto, or any law applicable to such reemployment, and provided that a member shall apply for reemployment within three (3) months following termination of such service, or as otherwise allowed by the Uniformed Services Employment and Reemployment Rights Act of 1994, and any amendments thereto. Nothing aforementioned shall serve to reduce the accrued accredited services of the members on the effective date of the plan. (3) Continuous service shall also include, for reemployed members, those years and completed months for which the reemployed member had withdrawn his contributions to the Trust Fund, where the reemployed member repays into the Fund the contributions he had withdrawn, with interest based upon the plan's annual total rate of return for the pension funds, as computed by the actuaries or the City, for those years and completed months, within ninety (90) days after his reemployment date. A reemployed member may also repay only a portion of the withdrawn funds with interest and receive a like credit for continuous service; however, repayments, whether partial or total, shall only be permitted once within the ninety -day limit. (4) For members who are employed by the City on or after the effective date of this Section who have five (5) or more years of continuous service based on City employment, continuous service shall also include up to three (3) years of active service in the U.S. armed forces or full-time employment as a police officer or f fightor with another governmental entity prior to employment by the City, purchased by the member in accordance with this paragraph; provided the member has not received and will not receive a benefit from another retirement plan based on such prior employment. Such a member may purchase continuous service under the plan, in years and tenths of a year, for all or a portion of the period of their active service in the U.S. armed forces or full- time employment as a police officer or fi fi hte with another governmental entity prior to employment by the City, by paying into the plan the full actuarial cost of such continuous service, as determined by the plan actuary. Such payment may be made at 2 DROP or separation from City employment, whichever occurs earlier. In the event full payment is not made prior to such date, the member shall receive only the amount of continuous service, as determined by the actuary, for which the payment made, excluding interest, is the fall actuarial cost. In the event a member makes payment for additional continuous service in accordance with this paragraph prior to attaining five (5) years of continuous service based on City employment, and separates from City employment before attaining five (5) years of continuous service based on City employment, such member shall receive a fall refund of all payments made, plus interest based on the assumed rate of return of the plan. A member purchasing such additional continuous service must pay the fall cost of any actuarial calculations required. Payment for the purchase of continuous service pursuant to this paragraph may be made using any one or a combination of the following options: a) [Cash Payment.] Cash lump sum payment. b) [Direct Transfer; Rollover.] Direct transfer or rollover of an eligible rollover distribution from a qualified plan, in accordance with Section 33.70. c) Time Payment Plan. Under this option the member may elect to pay any remaining balance due for the purchase of continuous service through payroll deduction on a time payment plan over a period of not more than five (5) years, as approved by the Retirement Committee. Interest on such payments shall be paid based on the assumed rate of return of the plan. Payments deducted from an employee's pay shall be designated as employer contributions pursuant to Section 414(h) of the Internal Revenue Code. Earnings. Prior to October 1, 2006, earnings shall mean base wages paid to a member, including state education compensation, police basic education and police career education compensation, but excluding overtime, bonuses and any other payments. Ef eet� : _ Oeteb- 1, 2006, eafniiags for firefigbtff ffieffibffs shell mean base wages paid to 4je membff ineluding-state- bonuses and any ether aents—Effective October 1, 2006, earnings for peliee^ffi„o,. ffieffib�"" shall mean base wages paid to the member including state education compensation, police basic education, police career education compensation and up to twenty-five (25) hours of overtime compensation per fiscal year, but excluding bonuses and any other payments. Effective July 7, 2015, earnings for policeeffie members who are employed and have less than ten (10) years of continuous service on July 7, 2015, shall mean base wages paid to the member including state education compensation, police basic education, police career education compensation and up to twenty-five (25) hours per fiscal year of overtime compensation earned through July 7, 2015, but excluding overtime compensation earned after July 7, 2015, bonuses and any other payments. Earnings for „dice effieeir members hired after July 7, 2015 shall mean basic wages paid to the member including state education compensation, police basic education, police career education compensation, but excluding overtime compensation, bonuses and any other payments. 7 Effective date. April 22, 1974. Eligible retired public safety officer. An member who, by reason of disability or attainment of normal retirement age, is separated from service as a public safety officer. Employee. All employees of the City classified as full-time, sworn police officers, as defined on the eff .,ti.., date in F.S. Section 185.02, or classified as police officers in training, -&r elassif4ed as vehmteer- or -regular-, M time firefighters, as Aefined on the &ff-eeti�ve date in F.So See -tion; 175 -.032 -,-but shall exclude all civilian members of the Police Department or Fire '?.,se and the Police Chief and Reseue Qi e£upon his or her tlie4r written election not to participate in the system. Fund. The Trust Fund established herein as part of the system. Poliee officer -Member. A peli�fiu member is any employee who satisfies the conditions of eligibility set forth in section 33.61 who is inoluded in thO-P01i0e OfflOeFs a Vis- erg. Public safety officer. The term "public safety officer" shall have the same meaning given such term by section 1204(9)(A) of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796b(9)(A)). Qualified Health Insurance Premiums. Premiums for coverage for the eligible retired public safety officer, his spouse, and dependents (as defined in Section 152 of the Internal Revenue Code), by an accident or health plan or qualified long-term care insurance contract (as defined in Section 7702B(b) of the Internal Revenue Code). Qualified Military Service. Any service in the uniformed service (as defined in chapter 43 of title 38, United States Code) by any individual if such individual is entitled to reemployment rights under such chapter with respect to such service (Section 414(u)(5) of the Internal Revenue Code). Spouse. The lawful wife or husband of a member at time of retirement ori death. System. The City Police Officers' aiid Firefighters, Retirement System as contained herein and all amendments thereto. USERRA. Uniformed Services Employment and Reemployment Rights Act (P.L. 103-353). Sec. 33.61. - MEMBERSHIP; CONDITIONS OF ELIGIBILITY; APPLICATION. (A) Conditions of eligibility. {�} Employees, as defined in Section 33.60, who are eevered under the rotir - -+ - , �'"' underprovided F.S. Chapters 17 „ 185, as f the f +' date,shall become members of this system as a condition of employment. tyls retirement plan for- general emple ws the time of ado ion of s retireme member of this--� Provided he eleets to tFan his employee Gentrib on aeeeunt from the retir plan for general employees to this ystem, which he is authorized to do by thi subehapter, and provided he also deposits to the T-ru t Fund, an the basis of preeedufes , Bear of Trustee weuld ha-,,�a eentr�uted had he always-be&n eeve-r-ed under F.S. Chapters 17 and 185, plus aterest in an amount to be '1 R a (B) Application. Each eligible employee shall complete an application form covering the following points, as well as any other points or items as may be prescribed by the Board. (1) The employee's acceptance of the terms and conditions of the retirement system, including an initialing of any declaration of ineligibility for disability benefits; (2) The employee's designation of a beneficiary; and (3) Authorization of a payroll deduction payable to the system in the amount provided for in Section 33.64(A). (C) Change in Designation of Beneficiary. (1) A member, including a member who has elected to participate in the Deferred Retirement Option Plan pursuant to Section 33.685, shall designate the joint annuitant or beneficiary to receive the benefit, if any, payable under the plan in the event of the member's death, on a form provided by the Board of Trustees. (2) The member may revoke or change the designation of a joint annuitant or beneficiary at any time prior to the commencement of retirement income or benefits, or prior to the member's entry into the Deferred Retirement Option Plan, by submitting such change in writing on a form provided by the Board of Trustees. (3) A retired member, including a retired member who is a participant in the Deferred Retirement Option Plan may change the designation of the member's joint annuitant or beneficiary after the commencement of retirement income or benefits up to two (2) times without the approval of the Board of Trustees. Any additional changes must be E of the joint annuitant or beneficiary being removed, and the joint annuitant or beneficiary being removed need not be living. The consent of the retiree's joint annuitant or beneficiary to any change in such designation shall not be required. The member must pay the fall cost of determining the equivalent actuarial value of the benefit payable. The amount of retirement income payable to- the member upon the designation of a new joint annuitant shall be actuarially redetermined, taking into account the benefits already received by the member, and the age and sex of the former joint annuitant, the new joint annuitant and the member. Each designation of a joint annuitant or beneficiary shall be made in writing on a form provided by. the Board of Trustees. Upon a change in designation of joint annuitant or beneficiary, the rights of all previously designated joint annuitants or beneficiaries to receive any benefit under the system shall cease. Sec. 33.62. - BENEFIT AMOUNTS AND ELIGIBILITY. (A) Normal Retirement Date. This term shall have the following meanings: (1) For employees who are eligible to become members of the system as of its effective date, the normal retirement date shall be the date of their fifty-second (52nd) birthday, regardless of the number of years of continuous service. (2) For employees who are members of the system and terminate employment prior to October 1, 1989, the normal retirement date shall be the first day of the month coincidental with or subsequent to their fifty-second (52nd) birthday and the completion of twenty (20) years of continuous service. (3) For employees who are members of the system and elect to retire or terminate employment on or subsequent to October 1, 1989, the normal retirement date shall be the first day of the month coincident with or subsequent to completion of twenty (20) years of continuous service. (4) For employees who are members of the system and retire or terminate employment on or after December 31, 1999, the normal retirement date shall also be the first day of the month coincident with or subsequent to age fifty-five (55) and the completion of ten (10) years of continuous service. (5) For police offie-e members hired after July 7, 2015, the normal retirement date shall be the first day of the month coincident with or subsequent to age fifty-five (55) and the completion of ten (10) years of continuous service, or completion of twenty-five (25) years of continuous service, regardless of age. (B) Normal Retirement Benefit (1) TT a: 1 TJL+ + B i+ fOF F O i 1 + T T FAb \Lll 10 11 11, lijiffild WIN Al 'NOW NO W._i hoFIN lic 11111111 Nil 11 12 110 will - - . Bli_. . s . Hill v - MMM- 12 i retirement date shall receive a monthly benefit which shall commence on his normal retirement date and be continued thereafter during his lifetime. Upon his death the full retirement benefit shall be continued to his spouse for one year and sixty (60) percent of that amount continued thereafter until the earlier of death or remarriage. Q�b)Amount. Normal retirement benefits shall be in the amount of two and one-half (21/2) percent of average monthly earnings for each year of continuous service for employees with more than ten (10) but less than twenty (20) years of continuous service. Normal retirement benefits. shall be in the amount of three (3) percent of average monthly earnings for each year of continuous service if a police effieer member has attained twenty (20) or more years of continuous service, subject to a maximum of seventy-five (75) percent of average monthly earnings. Provided, however, that in no event shall a pele� offie member's total benefit be less than two (2) percent of average monthly earnings for each year of continuous service. fifty verage mo., M{e}Doliee office Membefs -Optional Enhanced Multiplier. U(1) Notwithstanding any provision of subsection (B)(2)(b) to the contrary, a police offieef member who is actively employed by the City on March 15, 2004, but who is not participating in the deferred retirement option plan (DROP), may elect a normal retirement benefit in the amount of three and one- half (3.5) percent of average monthly earnings for each year of continuous service if the member attains twenty (20) or more years of continuous service, subject to a maximum of eighty-seven and one-half (87.5) percent of average monthly earnings. poijee offiecr-��poi Members electing this enhanced multiplier shall thereafter contribute three (3) percent of earnings to the Trust Fund in addition to the member contribution specified in Section 33.64(A), until July 7, 2015; and shall receive the enhanced multiplier for all periods of continuous service before that date. An election under this subparagraph must be on or before April 15, 2004. j2)(2) Notwithstanding any provision of subsection (B)(2)(b) to the contrary, a peliee of ee-r member who is actively employed by the City on March 15, 2004, but does not elect the enhanced multiplier in accordance with subparagraph (a), above, and who is not participating in the deferred retirement option plan (DROP), may thereafter elect a normal retirement benefit in the amount of three and one-half (3.5) percent of average monthly earnings for all future continuous service after making such election if the member attains twenty (20) or more years of continuous service, subject to a maximum of eighty-seven and one-half (87.5) percent of average monthly earnings. 13 thereafter contribute three (3) percent of earnings to the Trust Fund in addition to the member contribution specified in Section 33.64(A), until July 7, 2015. Such member may also elect to purchase the enhanced multiplier for some or all periods of continuous service prior to the date of the election, by paying the full actuarial cost of the enhanced multiplier, plus the full cost of any actuarial or other professional services required. Oc () Notwithstanding any provision of subsection (13)(2)(b) to the contrary, a poijeeofeu member who is hired after March 15, 2004 and before April 9, 2013, and who is not participating in the deferred retirement option plan (DROP) may elect a normal retirement benefit in the amount of three and one- half (3.5) percent of average monthly earnings for future continuous service after making such election if the member attains twenty (20) or more years of continuous service, subject to a magnum of eighty-seven and one-half (87.5) percent of average monthly earnings. Members D l f m befs electing this enhanced multiplier shall thereafter contribute three (3) percent of earnings to the Trust Fund in addition to the member contribution specified in Section 33.64(A), through July 7, 2015. Such member may also elect to purchase the enhanced multiplier for some or all periods of continuous service prior to the date of the election, by paying the full actuarial cost of the enhanced multiplier, plus the fall cost of any actuarial or other professional services required. Members Poliee offieer--�o,.� hired on or after April 9, 2013 shall not be eligible for the optional enhanced multiplier pro -4 led-h'413js map ham• O(4) If an eligible member elects the enhanced multiplier and'attains more than ten (10) but less than twenty (20) years of continuous service, the member's benefit shall be determined in accordance with subsection (B)(2)(b), and the member shall receive a refund of all additional contributions and amounts paid for the enhanced multiplier, without interest. In no event shall a member's total benefit be less than two (2) percent of average monthly earnings for each year of continuous service. OANormal Retirement Benefit for Peliee offieer Nj&mbers Effective July 7, 2015. (a(1) Notwithstanding any other provision of this section 33.62, the normal retirement benefit for p 'o�offle r members employed on July 7, 2015, and polieoffle= members hired after July 7, 2015 shall be determined in accordance with this aibparagraph (44). 2)M The normal retirement benefit for poliee effleer members with twenty (20) or more years of continuous service on July 7, 2015 shall be determined in accordance with paragraphs (2b) and (30) above. 14 employed and have less than twenty (20) years of continuous service on July 7, 2015 shall be shall be determined in accordance with paragraphs (2b) and (3e) above for continuous service through July 7, 2015, and three (3) percent of average monthly earnings for continuous service after July 7, 2015, subject to a maximum annual starting benefit of one hundred eight thousand dollars ($108,000.00); provided, in no event shall a member's total benefit be less than two (2) percent of average monthly earnings for each year of continuous service. O(4) The normal retirement benefit for police offieu members hired after July 7, 2015 shall be two and three-fourths (2.75) percent of average monthly earnings for each year of continuous service, subject to a maximum annual starting benefit of one hundred eight thousand dollars ($108,000.00) and further subject to a maximum benefit of sixty-eight and three-fourths (68.75) percent of average monthly earnings; provided, in no event shall a member's total benefit be less than two (2) percent of average monthly earnings for each year of continuous service. f }Upon becoming eligible for normal retirement, a poeeoffie member shall be one hundred (10 0) percent vested in his accrued benefit. (C) Early Retirement Date. On or after December 31, 1999, a peke—effigy member hired on or � � ht w Member may retire on or after the early retirement date, before July 7, 2015, _ which shall be the first day of any month coincident with or next following the attainment of age fifty (5 0) and the completion of ten (10) years of continuous service. Early retirement is retirement from active employment with the City on or after the early retirement date and prior to the normal retirement date. A poliee offie member hired after July 7, 2015 shall not be eligible for early retirement. (D) Early Retirement Benefit. The amount of the early retirement benefit shall be determined in the same manner as the normal retirement benefit, except that continuous service and average final compensation shall be determined as of the early retirement date. The benefit payable shall be reduced by three (3) percent for each year by which the commencement of benefits precedes the normal retirement date. The early retirement benefit provided in this subsection (D) shall have no application to the early retirement incentive provided in Section 33.687. (E) Disability Retirement Provisions. (1) (a) For purposes of this system, "total and permanent disability" shall mean an injury, disease or condition which totally and permanently incapacitates a member, either physically or mentally, from his regular and continuous duty as a police officer or fire -fid. A "total and permanent disability" arising directly from the performance of service to the City by a member as a p oliee offieer or firefighter- shall be 15 Q J, -+l Vlv luvNilvu wa -J • -- arising from any other cause or source, other than as modified below, shall be considered to be a nonservice incurred disability. A member shall not be entitled to receive a disability retirement benefit from the system if the disability is a result of. (1) Excessive and habitual use of drugs, intoxicants or narcotics; (2) Injury or disease sustained by the member while willfully and illegally participating in fights, riots, civil insurrections, or while committing a crime; (3) Injury or disease sustained by a member while serving in any of the armed forces; (4) Injury or disease sustained by the member after his employment with the City has been terminated. (b) A member shall not receive a service incurred disability benefit for injury or disease sustained by the member while working (either as an employee or through some other contractual arrangement) for anyone other than the City, performing a job function the same as or related to the member's City job function, and arising out of the scope of any other employment or contractual arrangement, excepting injuries sustained by members while performing duties on behalf of the City and while within the City's jurisdiction although those injuries occurred at an outside employer's job site. In addition, a member shall not be entitled to receive a disability retirement benefit from the system on the basis of any condition which existed prior to the member's employment or which was evidenced during the member's pre-employment physical. (2) Application for Benefits. In order for the Board to consider a member's request for disability retirement benefits, the member must apply in writing to the Board. Upon receipt of proper application by the Board of Trustees, the Board of Trustees shall arrange for a physical examination of the applicant by the medical board. A farther condition for receipt of disability retirement benefits from the system is that the applicant must apply for and diligently pursue disability benefits from social security and workers' compensation. Written proof of application must be submitted to the Board of Trustees. Failure of the applicant to qualify as being disabled under either the social security or workers' compensation laws may be considered by the Board of Trustees in review of that member's application or recovery from disability. (3) Medical Board. When a member submits proper application for a disability retirement benefit, the Board of Trustees shall designate a medical board to be composed of at least one physician. The medical board shall arrange for and pass upon all medical examinations required under the provisions of this subchapter, shall investigate all essential statements or certificates made by or on behalf of a member in connection with an application for disability retirement and shall report in writing to the Board of Trustees its conclusions and recommendations upon all matters referred to it. The payment of those services shall be determined by the Board of Trustees. 16 PA, continuance of disability benefits shall be determined by the Board of Trustees, taking into consideration the recommendations of the medical board and any other evidence of which the Board of Trustees may avail itself. The general steps which the Board of Trustees shall follow in its determination shall be as listed below, provided however, that the Board of Trustees may, in its discretion, alter or modify these steps: (a) Determine whether the member's application is proper; (b) If application is for a nonservice incurred disability, determine whether the ten (10) years of continuous service requirement has been met; (c) Based on all evidence submitted to the Board of Trustees, determine whether the applicant satisfies the definition of disability, including the absence of listed exclusions; (d) Determine whether the disability is to be considered a service -incurred disability or a nonservice disability, taking into consideration F.S. Chapters -17 -52.2 -31 -and -1 85.34. (e) Establish a date of disability. This date may be the date of injury causing the disability, the date when the member could no longer perform his regular and continuous duties, the date when his sick pay and vacation pay are exhausted or such other date as determined by the Board of Trustees. (5) Disability Retirement Benefits. (a) Eligibility. Each member shall be eligible for service incurred disability benefits, regardless of length of continuous service. Each member who completes ten (10) years of continuous service prior to becoming disabled shall be eligible for nonservice incurred disability benefits. (b) Initial Amount of Service Incurred Disability Benefit. The greater of sixty (60) percent of the member's average monthly earnings in effect on the date of disability or the member's accrued pension benefit. Eer- ti e fer disabiRty applications firefigbters shall be the greatef of sbEtY one (61) per-eent of the membef's average bei (c) Amount of Nonservice Incurred Disability Benefit. Two (2) percent of average monthly earnings in effect on the date of disability for each year of continuous service; provided, however, the minimum shall not be less than twenty-five (25) percent of average monthly earnings. (d) Terms of Payments. Disability benefits shall commence on or as of the first day of the month coincident with or next following the date of disability, as established by the Board of Trustees, and shall continue to be paid on the first day of each subsequent month until the death or recovery of the disability retiree. The same 17 to disability retirement benefits. (e) Eligibility for Other Benefits. In the event that a member applying for disability benefits is also eligible for either early or normal retirement, the Board may, upon the request of the member, pay the early or normal retirement benefit instead of a disability retirement benefit. (6) Report by Disability Retiree. (a) Each person currently receiving disability retirement benefits and each person who first qualifies for disability retirement benefits shall be required to submit to the Board of Trustees, upon a request by the Board of Trustees, a signed and notarized report which includes, but is not limited to: (1) A medical report from the disability retiree's physician stating whether the retiree is still totally incapacitated to perform the regular and continuous duties of a police officer or f fighter shall be submitted to the Board. The required physician's statement must be dated within four (4) months of the request. (2) A statement to the effect that the disability retiree understands that if the report is -incomplete or incorrect, his disability benefits may be suspended or discontinued. (b) In the event that the required reports are not submitted to the Board on a timely basis, or are incomplete or incorrect, the Board may, in its discretion, suspend or discontinue the disability retirement benefits. (7) Disability Affidavit. No member otherwise eligible to receive disability benefits shall be paid those benefits unless and until that member files a disability affidavit with the Board on a form furnished by the Board. By the disability affidavit, the prospective retiree shall affirm that he is acquainted and familiar with the terms and conditions of his disability retirement. In particular, he shall acknowledge the authority of the Board to require him to undergo periodic future physical examinations in order to determine whether he has recovered from disability. (8) Authority for Reexamination. Each person who first qualifies for or is then receiving disability retirement benefits on or after the effective date of this subchapter shall be subject to periodic reexamination by a medical board selected by the Board of Trustees to determine if the disability has ceased to exist. (9) Recovery from Disability. (a) In the event a member who has been retired on a disability benefit regains his health and is able to perform his duties in the Police Department or Fire Depar a , the Board shall discontinue the pension; and further, the City shall, subject to budget and qualification of the member for the position, offer the member a position with the City as a police officer or fffefighter. IC] fx=&fighte-r, then he may pay into the Fund an amount equal to the aggregate contributions plus interest at a rate to be determined by the Board (computed upon his annual earnings at the time of his disability retirement) he would have been required to make hereunder, as determined by the Board, during the period of his disability retirement had he not been retired, and shall thereupon receive creditable service for the period of the disability retirement. In any event, that member shall retain credit for the period of continuous service to the date of disability. (F) Preretirement Death. (1) Service Incurred. A death benefit shall be payable on behalf of any member who dies as a direct result of an occurrence arising in the performance of service. These benefits are not to be limiting to other benefits available under State law. The benefits shall be payable as follows: (a) To the spouse, until the earlier of death or remarriage, a monthly benefit equal to fifty (50) percent of the member's average monthly earnings; or to a designated beneficiary or beneficiaries other than the spouse, until death, a monthly benefit equal to the actuarial equivalent of a lifetime benefit payable to the member if the amount of fifty (50) percent of the member's average monthly earnings at date of death, plus (b) (1) For each unmarried child until he or she shall have reached the age of eighteen (18) years, and for each unmarried child from age eighteen (18) until age twenty-two (22) who is a full-time student in a fully accredited high school, college or university, there shall be paid in equal monthly installments, an amount equal to five (5) percent of the average monthly earnings subject to an overall limitation of a total of sixty (60) percent of average monthly earnings for the spouse and children combined. The nonstudent child's pension shall terminate on the earlier of death, marriage or the attainment of age eighteen (18). The pension of a child who is a student shall terminate on the earlier of death, marriage or the attainment of age twenty-two (22). Legally adopted children shall be eligible the same as natural children. (2) Upon remarriage or death of the spouse, the five (5) percent child allowance shall be increased to ten (10) percent for each child, not to exceed a combined total of thirty-five (35) percent of the member's average monthly earnings. The trusteeship and disbursements of the pension to any child shall be determined by the Board of Trustees. (c) Notwithstanding any provision of this subsection to the contrary, the surviving spouse of any member killed in the line of duty shall not lose death benefits upon remarriage. (2) Nonservice Incurred. If any member shall die in active service from causes not attributable to active duty or service, a death benefit shall be payable as follows: 19 thousand five hundred dollars ($2,500.00) to the member's spouse or otAer designated beneficiary or beneficiaries, as the case may be. (b) With one but less than five (5) years of continuous service, a single sum amount of five thousand dollars ($5,000.00) to the member's spouse or other designated beneficiary or beneficiaries, as the case may be. (c) With five (5) or more years of continuous service: (1) A single sum amount of five thousand dollars ($5,000.00) to the member's spouse or other designated beneficiary or beneficiaries, as the case may be, plus (2) To the spouse until remarriage or death, in equal monthly payments, a pension equal to sixty-five (65) percent of that member's accrued pension as of date of death, subject to a minimum of twenty (20) percent of average monthly earnings; or to a designated beneficiary or beneficiaries other than the spouse, until death, a monthly benefit equal to the actuarial equivalent of a lifetime benefit payable to the member in the amount of sixty-five (65) percent of such member's accrued pension as of date of death, plus (3) To the child of the deceased member, the same benefits as are payable by reason of service incurred death, subject however, to a maximum combined limitation of monthly payments to the spouse and children of fifty (50) percent of average monthly earnings and thirty-five (35) percent after remarriage or death of spouse. (3) In the event more than one beneficiary is designated by the member, the death benefits provided in this Section shall be apportioned equally among the beneficiaries. (G) Vesting. (1) If a member terminates his employment with the Police Department or Fie Dep , either voluntarily or by lawful discharge, and is not eligible for any other benefits under this system, he shall be entitled to the following: (a) Effective September 1, 1999, with less than ten (10) years of continuous service, refund of member contributions with a noncompounded simple interest rate of three (3) percent per year applied to the principal balance of the participant's contribution as accrued on December 31 of each year, per year. In the event the amount of member contributions with interest exceeds one thousand dollars ($1,000.00), the refund of member contributions and interest shall be made only upon the written request of a.member or designated beneficiary. (b) With ten (10) or more years of continuous service: (1) The pension benefit accrued to his date of termination, payable commencing on the date which would have been his earliest normal retirement date had he 20 contributions; or (2) Effective September 1, 1999, refund of member contributions with a noncompounded simple interest rate of five (5) percent per year applied to the principal balance of the participant's contribution as accrued on December 31 of each year. (2) Any member of this system who, for whatever reason, has his employment with the City as a police officer er f fi&ff terminated, but who remains with or was previously employed by the City in some other capacity so that his total period of employment with the City is ten (10) years or more, shall have all benefits accrued under this system preserved, provided he does not elect to withdraw his member contributions. These accrued benefits shall be payable at his otherwise normal retirement date, in accordance with the provisions of this system. For purposes of determining normal retirement date under this vesting provision, continuous service shall include all continuous employment with the City as an employee as herein defined as well as the period of time subsequent to termination as a member of this system; however, benefits shall not be payable under this system during any period of continued employment by the City. Upon the written election of the Police ChiefF�Chief o,�rhu .,.. not to participate in the system, the employment of the Police Chief �`'�' f shall be deemed terminated for the purpose of applying the provisions of this system. A Police Chief or Fke Chef who terminates his participation in this system shall not thereafter be eligible to receive benefits through this system while actively employed by the City. (H) Application of Section. The provisions set forth herein shall be applicable to all current and future members of the plan, except those members who retired, entered the DROP plan, or terminated employment prior to August 17, 1999the—& etiye datef tl4s ordkian60. Members who retired, entered the DROP plan, or terminated employment prior to August 17,1999 shall receive benefits in accordance with the plan provisions in effect on the date of their retirement, entry into the DROP plan, or termination, whichever is earliest. (1) Maximum Benefits. A member may not receive a pension or disability benefit which exceeds the lesser of: (1) One hundred (100) percent of the member's average compensation for the highest three (3) consecutive years as a member in the pension fund, or one hundred (100) percent of the member's average monthly earnings for the highest five of the last ten Years of service for members hired after July 7, 2015; or (2) A.maximum annual starting benefit of one hundred thousand dollars ($108,000.00), provided in no event shall a: total benefit be less than two (2) percent of average monthly earnings for each Year of continuous service; or (32 -)The maximum amount allowed under Section 415 of the Internal Revenue Code (increased to reflect the cost -of -living adjustment factor prescribed under Section 415(4) of the Internal Revenue Code), that is incorporated herein by reference. 21 which a member is entitled under the system shall not, in any limitation year, be in an amount which would exceed the applicable limitations under Section 415 of the Internal Revenue Code and the regulations issued thereunder. If the benefit payable under the system would (but for this section) exceed the limitations of Section 415 of the [Internal Revenue] Code by reason of a benefit payable under another defined benefit plan aggregated with this system under [Internal Revenue] Code Section 415(f), the benefit under this system shall be reduced only after all reductions have been made under such other plan. As of January 1 of each calendar year commencing on or after January 1, 2008, the dollar limitation as determined by the Commissioner of the Internal Revenue Service for that calendar year, adjusted for the member's age in accordance with the applicable IRS regulations, shall become effective as the maximum permissible dollar amount of benefit payable under the system during the limitation year ending within that calendar year. (J) Required Payment of Pension Benefits. Pension benefits shall begin no later than April 1 of the calendar year following the calendar year in which the member retires, or in which the member attains age seventy and one-half (701/2), even if the member has not filed a claim for pension benefits. In addition, payment of benefits shall be made in accordance with the applicable provisions of Section 401(a)(9) of the Internal Revenue Code, which is incorporated herein by reference. Notwithstanding any other provision of this plan to the contrary, a form of retirement income payable from this plan, shall satisfy the following conditions: (1) If the retirement income is payable before the member's death: a. It shall either be distributed or commence to the member not later than April 1 of the ' calendar year following the later of the calendar year in which the member attains age 701/2, or the calendar year in which the member retires; b. The distribution shall commence not later than the calendar year defined above; and (i) shall be paid over the life of the member or over the lifetimes of the member and spouse, issue or dependent, or (ii) shall be paid over the period extending not beyond the life expectancy of the member and spouse, issue or dependent. Where a form of retirement income payment has commenced in accordance with the preceding paragraphs and the member dies before his entire interest in the plan has been distributed, the remaining portion of such interest in the plan shall be distributed no less rapidly than under the form of distribution in effect at the time of the member's death. (2) If the member's death occurs before the distribution of his interest in the plan has commenced, member's entire interest in the plan shall be distributed within five (5) years of member's death, unless it is to be distributed in accordance with the following rules: 22 dependent; b. The remaining interest is to be distributed over the life of the spouse, issue or dependent or over a period not extending beyond the life expectancy of the spouse, issue or dependent; and c. Such distribution begins within one year of the member's death unless the member's spouse, is the sole designated beneficiary, in which case the distribution need not begin before the date on which the member would have attained age 701/2 and if the member's spouse dies before the distribution to the spouse begins, this section shall be applied as if the spouse were the member. (K) Qualified Health Insurance Premiums. Upon the written request of the member, a distribution hereunder, or part thereof, shall be paid directly to an insurer on account of the qualified health insurance premiums payable by such member who is an eligible retired public safety officer, in accordance with the applicable provisions and limitations in Section 402 of the Internal Revenue Code. Sec. 33.63. - OPTIONAL FORMS OF BENEFITS.. Each member entitled to a normal, early or disability retirement benefit shall have the right at any time prior to his actual retirement to elect to have his benefit payable under any one of the options hereinafter set forth in lieu of the benefits otherwise provided herein, and to revoke any elections and make a new election at any time prior to actual retirement. The value of optional benefits shall be actuarially equivalent to the value of benefits otherwise payable. The member shall make an election by written request to the Board of Trustees, this request being retained in the Board's files. (A) Option 1. Joint and Last Survivor Option. A retiring member may elect to receive an actuarially adjusted retirement benefit during his lifetime and have such retirement benefit (including seventy-five (75) percent, sixty-six and sixty-six one hundredths (66.66) percent or fifty (50) percent thereof) continued after his death to and during the lifetime of a designated joint annuitant. The election of Option 1 shall be null and void if the designated joint annuitant dies before the member's retirement, unless the member designates another joint annuitant in accordance with Subsection 33.61(C). In addition, the member may elect to add a "pop-up" feature to his joint and survivor option, then, upon the death of his joint annuitant, the amount of his monthly payment will be increased to the amount of a straight life annuity and such amount will be payable as of the first day of each month after the death of his joint annuitant for the remainder of his lifetime. A member electing to add the pop-up feature to his joint and survivor option will have his monthly benefit under this Option 1 actuarially reduced to take into account the addition of the pop-up feature. 23 receive a retirement benefit with one hundred twenty (120) monthly payments guaranteed. If, after retiring, the member should die before the one hundred twenty (120) monthly payments are made, payments are then continued to his designated beneficiary until one hundred twenty (120) payments in all have been made, at which time benefits cease. After expiration of the one hundred twenty (120) monthly payments guaranteed, should the retired member be then alive, payments shall be continued during his remaining lifetime. Notwithstanding any other provision of the plan to the contrary, this option (Option 2) shall be the normal form of benefit for unmarried employees who retire from active service on or after December 31, 1999. (C) Option 3. Other. In lieu of the other optional forms enumerated in this Section, retirement benefits may be paid in any form approved by the Board so long as actuarial equivalence with the benefits otherwise payable is maintained. Sec. 33.64. - CONTRIBUTIONS. (A) Member Contributions. 0-11 1! low 11 ji• 24 r-e4effient system hixed on ar aftff April 9, 2013 "1 make regular-e�tAi:03's tO -a aid, unt4 the membef has I 'eh time membff •h y• Members -- ' T�', �� shall make regular contributions to the Trust Fund at a rate equal to nine (9) percent of their respective annual earnings. Eligible employees, as a condition of membership, shall agree in writing upon becoming a member to make the contribution specified herein. These contributions shall be deducted from the earnings before the same are paid, until the member has earned the maximum normal retirement benefit payable under the System. Q(6} The City shall pick up the member contribution required by subsections (A)(1), (N) ) (A)(3) , �� 4) above. The contributions so picked up shall be treated as employer contributions in determining tax treatment under the United States Intern al Revenue Code, The City shall pick up the member contributions from funds established and available in the salaries account, which funds would have otherwise been designated as member contributions and paid to the pension fund. Member contributions picked up by the City pursuant to this subdivision shall be treated for purposes of malting a refund of member contributions, and for all other purposes of this and other laws, in the same manner and to the same extent as member contributions made prior to the effective date of this subdivision. The intent of this subdivision is to comply with Section 414(h)(2) of the Internal Revenue Code. No employee shall have the option of choosing to receive the contributed amounts directly instead of having them paid by the City to the System. (B) State Contributions. Any moneys received or receivable by reason of laws of the State, for the express purpose of funding and paying for retirement benefits for Police Officers and Fkefighte s of the City shall be deposited in the Trust Fund comprising part of this system. By mutual agreement of the City and police officers' union, all annual premium tax moneys received pursuant to Chapter 185 Florida Statutes up to the amount benefits ed during the 2013 calendar year ($606,595) shall be used to offset the cost of current benefit. r. ducin the Ci 's annual required contribution to the system. The Cily and police officers' union have further mutually agree that all accumulated excess remium tax monies held in reserve on September 8 2016 will be used to pay down the unfunded Iiability attributable to police officers. (C) City Contributions. So long as this system is in effect, the City shall snake an annual contribution to the Trust Fund during Jeffirst r nce iner of the each year lan year or in as between the totalofly installments m an amount equal 25 total cost for the year as shown by the most recent actuarial valuation and report for the system. The total cost for any year shall be defined as the total of normal cost plus the additional amount sufficient to amortize the unfunded accrued past service liability over a €epi= period not greater than thirty_(30) yearspommenei-ag v4ffi the f. "+;-,rA date fth s uw— -� cyst-e-n�. (D) Guaranteed Refund of Member Contributions. All benefits payable under this system are in lieu of a refund of member contributions. Effective September 1, 1999, employees who terminate employment with less than ten (10) years of continuous service, upon the election to receive a refund of member contributions, shall receive a noncompounded simple interest rate of three (3) percent per year applied to the principal balance of the participant's contributions as accrued on December 31 of each year. Effective September 1, 1999, employees who terminate employment with ten (10) years or more of continuous service, upon the election to receive a refund of member contributions, shall receive a noncompounded simple interest rate of five (5) percent per year applied to the principal balance of the participant's contribution as accrued on December 31 of each year. In any event, each member shall be guaranteed the payment of benefits at least equal in total amount to his accumulated contributions plus interest as provided herein. (E) Miscellaneous. (1) (2 -)--All beneficiaries and retired members presently receiving benefits under F.S. Chapters 175and 185 shall continue to receive those benefits under this system. (F) Any forfeitures that may arise upon the termination of a member's employment shall be used to offset the subsequent cost of the City. Such forfeitures shall not be used to increase benefits of remaining members. 26 Sec. 33.65. - ADMINISTRATION. (A) Effective October 1, 2016 the general administration and responsibility for the proper operation of the retirement system and for making effective the provisions of this subchapter are vested in a Board of Trustees consisting of PdRe (o) five5 persons as follows: (1) Two (2) legal residents of the City to be appointed by the City Commission; 2 Two 2 full-time City police officers as defined in section 185.02 Florida Statutes to be elected by all active members as provided herein; and 3 A fifth member, who shall be chosen by a maori of the other four members. Such person's name shall be submitted to the City Commission which shall as a ministerial act appoint such person to the Board of Trustees. (B) Each appointed trustee shall serve as trustee for a period of four (4) years unless sooner re laced by the City Commission at whose pleasure he or she serves and may succeed himself or herself as a trustee. Each elected police officer trustee shall serve as trustee for a period of four (4) years unless he or she sooner leaves the employmentof they Ci - a police officer, whereu on a successor shall be chosen m the same manner as he ori -mall election. Each elected police officer trustee mqY succeed himself or herself in office. The fifth member shall have the same ri is and duties as the other trustees shall serve as trustee fora period of two 2 ears and mLay succeed himself or herself in office. (C) The elective trustees shall be elected in the following manner: by vote of all active police officer members at meetings to be held at places designated by the City Manager, of which meetings all qualified members entitled to vote shall be notified m person or by mall ten 10 da s in advance of the meeting. The candidate receiving the hi hest number of votes for each office shall be declared elected and shall take office immediately upon commencement of the term of office for which elected or as soon thereafter as he shall quali therefor. An election shall be held not more than thirty (30) and not less than ten 10 days prior to the commencement of the terms for which trustees are to be elected. The cfty Magager shall establish the election procedure for the initial election. Thereafter, it shall be the duty of the board of trustees. The board of trustees shall meet organize and elect one of their members as chairperson and one member as vice chairperso�un thzrty (30) days after trustees are elected and duly qualified and annually thereafter. approvedJ the Glenqmiq;iOR�of the Code of Or 7 by th,4 .,n hei fter 7 J design-ated by *, ��e C-Ilief, 27 Board. (F) Each trustee shall, within ten (10) days after his appointment or election, take an oath of office before the City Clerk, that so far as it develops upon him he will diligently and honestly administer the affairs of the Board, and that he will not knowingly violate or willingly permit to be violated any of the provisions of the law applicable to the retirement system. The oath shall be subscribed to by the members making it and certified by the Clerk and filed in the office of the City Clerk. (G) Each trustee shall be entitled to one vote on the Board. Three 3 Five—{5) affirmative votes shall be necessary for a decision by the trustees at any meeting of the Board. The Chairperson shall have the right to one vote only. (1) Subject to the limitations of this subchapter, the Board of Trustees shall from time to time establish uniform rules and regulations for the administration of funds created by this 28 nonattendance of its members which could result in a vacancy. (I) The Board of Trustees shall by majority vote of its members appoint a secretary who shall be one of its members. It shall engage actuarial and other services as shall be required to transact the business of the retirement system. The compensation of all persons engaged by the Board of Trustees and all other expenses of the Board necessary for the operation of the retirement system shall be paid at those rates and in amounts as the Board of Trustees shall agree. Funds may be disbursed by the City Finance Department or other disbursing agent as determined by the Board, only upon written authorization by the Board of Trustees. (J) Any trustee who neglects the duties of his office as determined by the Board, may be removed by four 4 concurring votes among the Board of Trustees. (K) The duties and responsibilities of the Board of Trustees shall include, but not necessarily be limited by, the following: (1) To construe the provisions of the system and determine all questions arising thereunder; (2) To determine all questions relating to eligibility and participation; (3) To determine and certify amount of all retirement allowances or other benefits hereunder; (4) To establish uniform rules and procedures to be followed for administrative purposes, benefit applications and all matters required to administer the system; (5) To distribute at regular intervals to employees information concerning the system; (6) To receive and process all applications for participation.and benefits; (7) To authorize all payments whatsoever from the Fund and to notify in writing the disbursing agent of approved benefit payments and other expenditures arising through operation of the system and fund; (8) To have performed actuarial studies and annual actuarial valuations and make recommendations regarding any and all changes in the provisions of the system; (9) To perform those duties as are specified in this subchapter. Sec. 33.66. - FINANCES AND FUND MANAGEMENT. (A) As part of the system there is established the Trust Fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the system. (B) The actual custody and supervision of the Fund (and assets thereof) shall be vested in the Board of Trustees. Payment of benefits and disbursements from the Fund shall be made by the disbursing agent on authorization from the Board. at fiduciaries) as in its discretion may be required or advisable to enable it to perform custodial and investment duties hereunder. The Board may enter into agency, investment advisory, and custodial agreements for the purpose of securing investment and custodianship services for the system and fund. (D) (1) All funds and securities of the system may be commingled in the Fund, provided that accurate records are maintained at all times reflecting the financial composition of the Fund, including accurate current accounts and entries as regards the following: (a) Current amounts of accumulated contributions of members on both an individual and aggregate account basis; (b) Receipts and disbursements; (c) Benefit payments; (d) Current amounts clearly reflecting all moneys, funds and assets whatsoever attributable to contributions and. deposits from the City; (e) All interest, dividends and gains (or losses) whatsoever; and (f) Any other entries as may be properly required so as to reflect a clear and complete financial report of the Fund. (2) An annual report shall be made by the certified public accounting firm performing the City's annual audit. (E) The Board of Trustees shall have the following investment powers and authority: (1) The Board of Trustees shall be vested with full legal title to the Fund; subject however and in any event to the authority and power of the City Commission to amend or terminate this trust; provided that no amendment or fund termination shall ever result in the use of any assets of this Fund except for the payment of regular expenses and benefits under this system. All contributions from time to time paid into the Fund, and the income thereof, without distinction between principal and income, shall be held and administered by the Board or its agent in the Fund and the Board shall not be required to segregate or invest separately any portion of the Fund. (2) The Board and each trustee, thereof is a fiduciary with respect to the Trust Fund, and shall exercise investment authority under this Section solely in the interest of plan members and beneficiaries, for the exclusive purpose of providing benefits to members and their beneficiaries and defraying the reasonable expenses of administering the plan. The Board shall exercise its investment authority with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person in a like capacity and familiar with such matters would use in the conduct of an enterprise with like character and like aims. 30 Statutes, or any limitation or condition contained in Section 215.47, Florida Statutes, the Board of Trustees may invest and reinvest pension fund assets in such securities, investment vehicles and property wherever situated and of whatever kind, as the Board shall approve in the exercise of its fiduciary duty and authority, including but not limited to common or preferred stocks, bonds and other evidences of indebtedness or ownership. The- Board may invest up to twenty-five (25) percent of fund assets, on a market -value basis in foreign securities. (4) The Board shall adopt and periodically update a written investment policy in accordance with Section 112.661, Florida Statutes. All investments approved by the Board shall be in accordance with the investment policy. The Board shall provide a copy of the investment policy and any revisions thereto to the City Manager, in accordance with Section 112.661, Florida Statutes. (5) The Board shall provide a quarterly financial report to the City Manager no later than thirty (30) days following the end of each calendar quarter, which report shall include a summary reflecting the total market value of the fund at the beginning and end of the quarter, total investment gains and losses during the quarter, and a summary of the market value and investment gains and losses during the quarter for each manager responsible for investing fund assets. The Board shall also provide a copy of all reports from the Board's investment consultant to the City Manager within five (5) days following the Board's approval or review of such reports. (6) The Board may retain in cash or unproductive of income an amount of the Fund as it may deem advisable, having regard for the cash requirements of the system. (7) Neither the Board nor any person or entity shall be liable for the making, retention, or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the Fund, except that due to his own negligence, willful misconduct, or lack of good faith. (8) The Board may cause any investment in securities held by it to be Registered in or transferred into its name as trustee or into the name of the nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the Fund. (9) The Board is empowered, but is not required, to vote upon any stocks, bonds or securities of any corporation, association or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations, consolidations and similar transactions with respect to those securities; to deposit stock or other securities in any voting trust or any protective or like committee or with the trustees or with depositaries designated thereby; to amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally, to exercise any of the powers of an 31 (F) (G) may deem to be to the best interest of the Fund to exercise. (10) The Board shall not be required to make any inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power herein contained. (11) Where any action which the Board is required to take or any duty or function which it is required to. perform either under the terms herein or under the general law applicable to it as trustee under this subchapter, can reasonably be taken or performed only after receipt by it from a member, the City or any other entity of specific information, certification, direction or instructions, the Board shall be free of liability in failing to take any action or perform any duty or function until that information, certification, direction or instruction has been received by it. (12) Any overpayments or underpayments from the Fund to a member or beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the Board. Overpayments shall be charged against payments next succeeding the correction. Underpayments shall be made up from the Trust Fund. (13) The Board shall sustain no liability whatsoever for the sufficiency of the Fund to meet the payments and benefits herein provided for and shall be under no obligation to inquire into the sufficiency of the payments made into the Fund by the City. (14) In any application to or proceeding or action in the courts, only the City and the Board shall be necessary parties, and no member or other person having an interest in the Fund shall be entitled to any notice of service or process. Any judgment entered in that proceeding or action shall be conclusive upon all persons. Any of the foregoing powers and functions reposed in the Board may be performed or carried out by the Board through duly authorized agents, provided that the Board at all times maintains continuous supervision over the acts of any agent; and that legal title to the Fund shall always remain in the Board of Trustees. At least once every three (3) years, the Board shall retain a professionally qualified independent consultant to evaluate the performance of any existing money manager and make recommendations to the Board regarding the selection of money managers for the next investment term, in accordance with F.S. Section 75 n'" (6) an 185.06(5). No change in any of the administrative provisions of the system shall be made without the approval of a majority of the Board of Trustees. Sec. 33.67. - OTHER PROVISIONS. (A) Discharged Members. Members entitled to a pension shall not forfeit the same upon dismissal from the department, but shall be retired as herein described. 32 regains his health and is able to perform his duties in the Police Department ar Fife Res. �. Dept, the Board of Trustees shall require the member to resume employment with the respective department and discontinue the pension; provided that if a member shall after resuming his position pay into the Fund an amount equal to the aggregate contributions plus interest at a rate to be determined by the Board (computed upon his annual earnings at the time of his disability retirement) he would have been required to make hereunder, as determined by the Board, during the period of his disability retirement had he not been retired, the member shall receive creditable service for the period of disability retirement. In any event, a member shall retain credit for the period of continuous service prior to the date of disability. (C) Nonassignability. No benefit provided for herein shall be assignable or subject to garnishment for debt or for other legal process. (D) Duration of Benefits. Benefits granted to members shall be paid to them for life and shall not be revoked nor in any way diminished except as provided in this subchapter and the payments of the member to this fund shall cease upon his retirement and acceptance of a benefit or thirty (30) years of continuous service or termination. (E) Pension Validity. The Board of Trustees shall have the power to examine into the facts upon which any pension shall heretofore have been granted under any prior or existing law, or shall hereafter be granted or obtained erroneously, fraudulently, or illegally for any reason. The Board is empowered to purge the pension rolls of any person heretofore granted a pension under prior or existing law or hereafter granted under this subchapter if the same is found to be erroneous, fraudulent, or illegal for any reason; and to reclassify any pensioner who has heretofore under any prior or existing law, or -who shall hereafter under this subchapter be erroneously, improperly or illegally classified. (F) Incompetents. If any member or beneficiary is a minor or is, in the judgment of the Board, otherwise incapable of personally receiving and giving a valid receipt for any payment due him under the system, the Board may, unless and until claims shall have been made by a duly appointed guardian or Committee of that person, make the payment or any part thereof to the person's spouse, children or other person deemed by the Board to have incurred expenses or assumed responsibility for the expenses of that person. Any payment so made shall be a complete discharge of any liability under the system for the payment. (G) Miscellaneous Provisions. (1) The Board will furnish the actuary with all data required for necessary actuarial computations under the plan. (2) No payment or any benefit, contribution or other sum which would constitute a violation of any applicable wage control law shall be made hereunder. (3) The benefits for any person who was a member under F.S. G + rs 175 ^~td Chapter 185, immediately prior to the effective date of this subchapter, shall not be less than 33 his rate of earnings in effect as of the effective date. (ID Lump -Sum Distributions in Excess of One Thousand Dollars ($1,000.00). Notwithstanding any provision of the system to the contrary, and only to the extent a lump -sum distribution is expressly authorized, a lump -sum distribution in excess of one thousand dollars ($1,000.00) shall be made only upon the written request of a member or designated beneficiary. Sec. 33.68. - SUPPLEMENTAL RETIREMENT INCOME AND MINIMUM BENEFIT FOR MEMBERS WHO RETIRED PRIOR TO CERTAIN DATE. (A) Members and beneficiaries of members who retired prior to October 1, 1987, shall receive an increase in their retirement income calculated in accordance with Sections 33.62 and 33.63, equal to two (2) percent for each year from the date of the member's retirement through September 30, 1987. The supplemental and minimum retirement income provided in this Section shall be paid effective January 1, 1988. The supplemental retirement income provided in this Section shall not be subject to the benefit offset contained in subsections 33.62(E)(5)(e). and (E)(7). (B) Members and beneficiaries of members who retired or terminated employment prior to October 1, 1990, and began receiving benefits prior to June 28, 1993, shall receive an increase in their retirement income calculated in accordance with Sections 33.62, 33.63, 33.68(A), equal to five (5) percent. The supplemental and minimum retirement income provided in this Section shall be paid effective April 1, 1993. The supplemental retirement income provided in this Section shall not be subject to 'the benefit offset contained in subsections 33.62(E)(5)(e) and (E)(7). (C) Effective August 1, 1999, all participants or beneficiaries of participants who are receiving benefits under the plan prior to September 30, 1993, shall have the monthly amount of retirement income increased by five (5) percent over the gross amount they were receiving in August of 1993. Provided, however, this increase effective August 1, 1999, shall not exceed one hundred dollars ($100.00) per month. (D) Effective August 1, 1999, all participants with ten (10) or more years of credited service and designated beneficiaries of such participants who receive plan benefits that are based on or derived from the participant's normal retirement income, regardless of the participant's retirement date, shall receive benefits based on a minimum monthly normal retirement income amount of at least five hundred dollars ($500.00) per month. (Ord. No. 102-87, passed 12/22/87; Am. Ord. No. 38-93, passed 6/8/93; Ord. No. 21-99, passed 7/6/99) Sec. 33.685. - DEFERRED RETIREMENT OPTION PLAN. 34 (30) years of continuous service as a member of the system may elect to participate in the Deferred Retirement Option Plan in accordance with this Section. (B) An employee's election to participate in the Deferred Retirement Option Plan must be made in writing and shall become effective thirty (3 0) days following the date it is received by the Board of Trustees, or on a later date specified by the employee. (C) An employee who elects to participate in the Deferred Retirement Option Plan may participate in such plan for a maximum of sixty (60) continuous months. If upon the effective date of the employee's election there are less than sixty (60) months before the employee attains thirty (30) years of continuous service, the employee may participate in the Deferred Retirement Option Plan only until thirty (3 0) years of service is attained. (D) An employee's continuous service and accrued benefit under the system shall be determined on the effective date of the employee's election to participate in the Deferred Retirement Option Plan. An employee who elects to participate in the Deferred Retirement Option Plan shall not accrue any additional continuous service or benefits under the system, except for additional benefits provided under the retirement benefit enhancement, if applicable, while participating in the Deferred Retirement Option Plan. No amounts shall be paid to an employee from the system while the employee is a participant in the Deferred Retirement Option Plan. (E) A Deferred Retirement Option Plan account shall be established for each employee who elects to participate in the Deferred Retirement Option Plan in accordance with this Section. During the period of the employee's participation in the Deferred Retirement Option Plan, the employee's normal retirement benefit, calculated in accordance with Subsection 33.62(B) based on average monthly earnings and continuous service as of the effective date of the employee's election to participate in the Deferred Retirement Option Plan, shall be paid into the employee's Deferred Retirement Option Plan account. The employee's Deferred Retirement Option Plan account shall be invested by the Board of Trustees and credited with interest equal to the overall net rate of return on retirement fund assets during the period the employee participates in the Deferred Retirement Option Plan. Effective July 1, 2001, the Board of Trustees, in its sole discretion, may select a third -party administrator and establish a separate plan for DROP accounts to be invested by participating employees in accordance with an agreement between the participating employee and the third -party administrator. Employees who are participating in the DROP as of July 1, 2001, may elect to participate in the self-directed investment program. Employees who elect to participate in the DROP after July 1, 2001, shall be required to participate in the self-directed investment program as a condition of participating in the DROP. The Board of Trustees may adopt any necessary rules to administer the DROP in accordance with applicable provisions of the Internal Revenue Code and regulations adopted thereunder. (F) At the conclusion of the employee's participation in the Deferred Retirement Option Plan, and as a condition of participating in such plan, the employee will retire and terminate City employment. The employee will thereafter receive a normal retirement benefit calculated in 35 service as of the effective date of the employee's election to participate in the Deferred Retirement "Option Plan. The employee's Deferred Retirement Option Plan account will thereafter be distributed to the employee in a cash lump sum, unless the employee elects an alternative distribution as described below: (1) Payments in approximately equal monthly, quarterly or annual installments over a period designated by the employee, not to exceed the life expectancy of the employee or the joint life expectancy of the employee and the employee's designated beneficiary. In the event that the employee dies before all installments have been paid, the remaining balance in the employee's Deferred Retirement Option Plan account shall be paid in an immediate cash lump sum to the employee's designated beneficiary. (2) The purchase of a nonforfeitable fixed annuity payable in such form as the employee may elect. Elections under this Subsection (2) shall be in writing and shall be made in such time or manner as the Board of Trustees shall determine. If the annuity form selected is not a qualified joint and fifty (50) percent survivor annuity with the employee's spouse as the beneficiary, the annuity payable to the employee and thereafter to the employee's beneficiary shall be subject to the incidental death benefit rule as described in section 401(a)9g of the Internal Revenue Code and applicable regulations. (Cr) Notwithstanding the provisions of the foregoing paragraph (F), if an employee dies before distribution of the employee's Deferred Retirement Option Plan account commences, the account balance shall be paid to the employee's beneficiary in such optional form as the beneficiary may select. (IT) Except as otherwise provided in this Section, distribution of an employee's Deferred Retirement Option Plan account shall begin as soon as administratively practicable following the employee's termination of employment. An employee may, in accordance with such procedures as the Board of Trustees may prescribe, elect to defer distribution of the Deferred Retirement Option Plan account until the first day of any month coincident with or following the employee's termination of City employment; provided, however, distribution shall be made before the distribution date elected by the employee to the extent necessary to comply with the internal revenue code and regulations thereunder. Any amounts in an employee's Deferred Retirement Option Plan account shall continue to be invested by the Board of Trustees and shall be credited with the net investment return on the Fund until the balance of the Deferred Retirement Option Plan account is fully distributed to the employee or the employee's beneficiary. (I) In no event shall the provisions of this Section operate so as to allow the distribution of an employee's Deferred Retirement Option Plan account to begin later than April 1 following the later of the calendar year in which the employee terminates city employment or attains age seventy and one-half (701/2). 36 Deferred Retirement Option Plan accounts shall conform to applicable provisions of the Internal Revenue Code and regulations issued thereunder. (Ord. No. 85-93, passed 1/25/94; Ord. No. 36-01, § 1, passed 6/19/01; Ord. No. 18-08, § 2, passed 4/1/08) Sec. 33.687. - EARLY RETIREMENT INCENTIVE. (A) Effective January 1, 1994, an early retirement incentive shall be provided to employees in accordance with this Section. The availability of the early retirement incentive in any calendar year shall be determined by the City. (B) Employees with eighteen (18) and up to, but not including, twenty (20) years of continuous service shall be eligible for the early retirement incentive. In any calendar year in which the City determines that the early retirement incentive will be offered, eligible employees shall be given an opportunity to decide within a specified time period (thirty (30) to ninety (90) days) whether they wish to receive the early retirement incentive and retire from city employment. The City will provide at least sixty (60) days' advance notice to eligible employees of the early retirement incentive offering, " ��, '' ed to rcliee effic (C) Eligible employees who elect to receive the early retirement incentive shall receive two (2) additional years of continuous service, under the System, and upon receiving such additional continuous service shall immediately retire and terminate City employment. Effective the first pay period after September 1, 1999, eligible employees who elect to receive the early retirement incentive shall receive three (3) percent of average monthly earnings for each year of continuous service if the employee qualifies for the twenty (20) year (or more) normal retirement benefit. Eligible employees who previously elected the enhanced three and one-half (3.5) percent multiplier pursuant to Section 33.62(3) and who elect to receive the early retirement incentive on or after March 15, 2004 shall receive three and one-half (3.5) percent of average monthly earnings for each year of continuous service, or portion thereof, to which the optional enhanced multiplier under Section 33.62(3) applies; and if the enhanced multiplier is applicable to more than fay (50) percent of the employee's total continuous service, excluding the two (2) additional years provided in this section, the employee shall receive three and one-half (3.5) percent of average monthly earnings for each of the two (2) additional years provided in this section. The early retirement incentive program shall be voluntary for all eligible employees. The early retirement incentive shall not apply to sick leave, vacation or any other accruals or benefits. (D) An employee who elects to receive the early retirement incentive under this Section cannot also participate in the Deferred Retirement Option Plan under Section 33.685. 37 RETIREMENT BENEFIT ENHANCEMENT. (A) Effective October 1, 1994 through the effective date of this ordinance, the benefits paid to eligible retirees or their beneficiaries shall be adjusted as provided in this Section. For the purpose of this Section, "eligible retirees" are members who retired or terminated employment after September 30, 1993, and whose date of hire as a City Police Officer er Fired was twenty-five (25) or more years prior to the benefit adjustment date. The benefits payable under the system to all eligible retirees or their beneficiaries shall be based on the amount of insurance premium tax revenues received by the City for the preceding plan year pursuant to F.S. Gb,.,p tffs 175 an Chapter 185. A minimum benefit increase of one percent per year will be provided, regardless of the amount of premium tax revenues received by the City. (B) Notwithstanding_any other provision of this Section effective September 8 2016 all annual premium tax moneys received pursuant to Chapter 185 Florida Statutes up to the amount received during the 2013 calendar year ($606,595) shall be used to offset the cost of current benefits by reducingthe City's annual required contribution to the system. C)By mutual agreement of the City and police union effective September 8 2016, all accumulated excess Chapter 185 premium tax revenues held in reserve and any other Chapter 185 premium tax money that is not allocated to pay for pension benefits shall be used to pay down the unfunded actuarial accrued liability of the system attributable to police officers. Firefi&er -retirees. To the extent total animal preeim--ii—im tffl,. few aues r-eeei-ved pursuant to J Florida J mkeeed one handred-ni-Bety seven thousand nine htmdt-edfire-fighter retirees will be in�eased in kiefements of 011,e teath of one 7 based On theJ regardless of the ametuA oGhaptef J ($3067 927.00) and axe less than Bqur hun&ed Bai*f six fheiasa.:Rd fo� hundred seven dollars J 7 I eased in iaer-ements of one tenth of one J based on the aetuarially sound basis. The maxim:um amount of the total annual benefit increase shall no J Fierida: Statutes, in J exeess of B3ur hundred Bqr-ty sbE thousa-ad Baur htm&ed se -,,en dollars J 407.00) shall bused to pre-,4de for the inclusion of overtkne 7 38 ITU- - FS a 1.. .� RINI ........- - - - (D) The annual benefit adjustment provided under this Section shall be compounded annually (i.e. the increase shall be based on the benefits received by plan members and beneficiaries at the end of the preceding plan year). The benefits payable under the system to all eligible retirees or their beneficiaries shall be adjusted annually on the anniversary of the retiree's first benefit payment. Disability retirees and their beneficiaries are not eligible to receive the retirement benefit enhancement. (E) Notwithstanding any other provision of this Section 33.689, effective July 7, 2015 no further benefit enhancement or benefit adjustment shall be paid to police officer retirees, other than the one percent per year benefit increase provided in subsection (A) above. Sec. 33.69. - INCORPORATION OF STATE LAW BY REFERENCE. F.S. Sections 175.101 tluough 175.121 and 175.131 tkough 175.151 (mieiso tejE oft property msurance premiums te be deposited in the Nfivaieipal r and Poliee r Pensio Trust Fund) and F. S. Sections 185.07 through 185.09 (excise tax on casualty insurance premiums to be deposited in Municipal eters' Police Officers' Pension Trust Fund) are hereby incorporated by reference as if fully set forth herein ed by F.S. Sections 175.321 -185. Sec. 33.70. - DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS. (A) General. This Section applies to distributions made on or after. January 1, 1993. Notwithstanding any provision of the system to the contrary that would otherwise limit a distributee's election under this Section, a distributee may elect, at the time and in the manner prescribed by the Board, to have any portion of an eligible rollover paid directly to an eligible retirement plan specified by the distributee in a direct rollover. (B) Definitions. (1) Eligible Rollover Distribution. Any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for life (or life expectancy) of the distributee or at designated beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Internal Revenue Code; and the portion of any distribution that is not includable in gross income. (2) Eligible Retirement Plan. An eligible retirement plan is an individual retirement account 'described in Section 408(a) of the Internal Revenue Code, an individual retirement annuity described in Section 408(b) of the Internal Revenue Code, an annuity plan described in Section 403 (a) of the Internal Revenue Code, a qualified trust described in Section 401 (a) of the Internal Revenue Code, an eligible deferred compensation plan described in Section 457(b) of the Internal Revenue Code which is maintained by an eligible employer described in Section 457(e)(1)(A) of the Internal Revenue Code, or an annuity contract described in Section 403 (b) of the Internal Revenue Code, that accepts the distributee's eligible rollover distribution. (3) Distributee. A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse is a distributee with regard to the interest of the spouse. Effective as of January 1, 2008, an Employee's or former Employee's non -spouse Beneficiary is a distributee with regard to the interest of the Employee or former Employee. (4) Direct Rollover. A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee. Effective as of January 1, 2008, a non -spouse Beneficiary may make a direct rollover only to an "inherited" individual retirement account as described in Section 408(b) of the Internal Revenue Code. If a non -spouse Beneficiary receives a distribution from the plan, the distribution is not eligible for a 60 - day (non -direct) rollover. (C) Rollovers or Transfers into the Fund. On or after the effective date of this Section, the fund will accept member rollover cash contributions and/or direct cash rollovers of distributions for the purchase of continuous service or an enhanced multiplier as authorized under the plan, as follows: the fund will accept either a direct rollover of an eligible rollover distribution or a member contribution of an eligible rollover distribution from a qualified plan described in Section 401(a) or 403(x) of the Internal Revenue Code, from an annuity contract described in Section 403(b) of the Internal Revenue Code, or from an eligible plan under Section 457(b) of the Internal Revenue Code, which is maintained by a State, political subdivision of a State, or any agency or instrumentality of a State or political subdivision of a State. Sec. 33.71. - SEPARATION FROM EMPLOYMENT FOR MILITARY SERVICE. .O Armed Forces of the United States, the United States Merchant Marine or the United States Coast Guard, voluntarily or involuntarily, after separation from city employment, shall be added to his years of credited service for all purposes, including vesting, provided that: (1) The member must return to City employment within one year from the earlier of the date of his military discharge or his release from service. (2) The maximum credit for military service pursuant to this Section shall be five (5) years. (3) In order to qualify for credited service pursuant to this Section, the member must have been discharged or released from service under honorable conditions. This Section is intended to meet or exceed the minimum requirements of USERRA. To the extent that this Section does not meet the minimum standards of USERRA, as it may be amended from time to time, the minimum standards of USERRA shall apply. (B) Death Benefits. In the case of a death or disability occurring on or after January 1, 2007, if a participant dies while performing Qualified Military Service, the survivors of the participant are entitled to any additional benefits (other than benefit accruals relating to the period of Qualified Military Service) provided under the plan as if the participant had resumed and then terminated employment with the City on account of death. (C) Differential Wage Payments. For years beginning after December 31, 2008, (i) an individual receiving a differential wage payment, as defined in Section 3401(h)(2) of the Internal Revenue Code, shall be treated as an employee of the employer making the payment, (ii) the differential wage payment shall be treated as compensation, and (iii) the plan shall not be treated as failing to meet the requirements of any provision described in Section 414(u)91)0 of the Internal Revenue Code by reason of any contribution or benefit which is based on the differential wage payment. Sec. 33.72. - TERMINATION OF THE SYSTEM. If it is determined by the City Commission that this Retirement System be terminated it shall be terminated in accordance with State law as set forth in [F.S.] Chapter^ P -5 --and 185, as that&ese Chapters now exists and as itthey may be amended in the future. 41 MI. ..I - _ .: Sec. 33.72. - TERMINATION OF THE SYSTEM. If it is determined by the City Commission that this Retirement System be terminated it shall be terminated in accordance with State law as set forth in [F.S.] Chapter^ P -5 --and 185, as that&ese Chapters now exists and as itthey may be amended in the future. 41 FIREFIGHTERS' RETIREMENT SYSTEM Sec. 33.73. — Establishment of Firefighters' Retirement System. Effective Octoberl 2016 the City of Delray Beach Firefighters' Retirement System is established to continue providing_ retirement benefits to City firefighters and their beneficiaries, as provided in sections 33.74 through 33.91 below. However, the benefit changes in sections 33.74 33.76 and 33.86 and the change in section 33.78(B) shall take effect on the effective date of this ordinance. Sec. 33.74. - DEFINITIONS. For the purpose of this subchapter, the following defmitions shall apply unless the context clearly indicates or requires a different meaning. Actuarial equivalence or Actuarially equivalent. This term shall mean that any benefit payable under the terms of the pension fund in a form other than the normal retirement pension shall have the same actuarial present value on the date payment commences as the normal retirement pension. For purposes of establishing the actuarial present value of any form of payment, all future payments shall be discounted for interest and mortality by using seven (7) percent interest and the 1983 Group Annuity Mortality Table for Males with ages set ahead five (5) years in the case of disability retirees. Agreement. The written instrument setting forth the provisions of the retirement system. Average monthlv earnings. (1) For members hired on or before October 5 2016 average monthly earnings means one thirty-sixth of the arithmetical average for the highest consecutive thirty -six-month period preceding the actual retirement or termination of a member; provided, however, the benefit derived shall not be less than the benefit that would have been paid based on a definition of average monthly earnings of one twenty-fourth of the arithmetical average for the highest consecutive twenty -four-month period as calculated prior to the effective date of Ordinance No. 17-04. (2) For members hired after October 5 2016 average monthly earnings means one sixtieth of the arithmetical average for the highest five years of the last ten years preceding the actual retirement or termination of a member. (3) In addition to other applicable limitations set forth in the plan, and notwithstanding any other provisions of the plan to the contrary, for the plan years beginning on or after January 1. 1996 the annual compensation of each member taken into account under the plan shall not 42 amended for cost of living increases, which is incorporated herein by reference. Beneficiary. The person entitled to receive benefits hereunder at the death of a member who has been designated in writing by the member and filed with the board of trustees. If no designation is in effect at the time of death of the member, or if no person so designated is living at that time, the beneficiary shall be the estate of the member. Board. The board of trustees which shall administer and manage the system herein provided and serve as Trustee of the Trust Fund. City. The City of Delray Beach, Florida. Continuous service. (1) Uninterrupted service by a member (expressed as years and completed months) from the date he last entered employment as an employee until the date his employment is terminated by death, disability, retirement, resignation or discharge. ,(2) However, the continuous service of any member shall not be deemed to be interrupted by - (a) Any authorized leave of absence or vacation provided all members similarly situated in similar circumstances shall be treated alike pursuant to uniform, nondiscriminatory rules. No credit for benefit eligibility for computation purposes under the system shall be allowed for any such period of leave of absence. (b) Any service whether voluntary or involuntary in the armed forces of the United States, provided the member is legally entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act of 1994 and any amendments thereto, or any law applicable to such reemployment, and provided that a member shall apply for reemployment within three (3) months following termination of such service, or as otherwise allowed by the Uniformed Services Employment and Reemployment Rights Act of 1994, and any amendments thereto. Nothing aforementioned shall serve to reduce the accrued accredited services of the members on the effective date of the plan. (3) Continuous service shall also include for reemployed members, those years and completed months for which the reemployed member had withdrawn his contributions to the Trust Fund where the reemployed member repays into the Fund the contributions he had withdrawn with interest based upon the plan's annual total rate of return for the pension funds, as computed by the, actuaries or the City, for those years and completed months, within ninety (90) days after his reemployment date. A reemployed member may also ropy only a portion of the withdrawn funds with interest and receive a like credit for continuous service; however, repayments whether partial or total, shall only be permitted once within the ninety -day limit. L4) For members who are employed by the City on or after the effective date of this Section who have five (5) or more years of continuous service based on City employment, continuous service shall also include up to three (3) years of active service in the U.S. armed forces or full - 43 City, purchased by the member in accordance with this para graph• Provided the member has not received and will not receive a benefit from another retirement plan based on such prior employment. Such a member may purchase continuous service under the plan, in years and tenths of a year, for all or a portion of the period of their active service in the U.S. armed forces or full-time employment as a firefighter with another governmental entity prior to gm lo ent by the City, by pang into the plan the full actuarial cost of such continuous service, as determined by the plan actuary. Such payment may be made at any time after employment by the City, and must be made in fall prior to entering the DROP or separation from City emplo n whichever occurs earlier. In the event full payment is not made prior to such date, the member shall receive only the amount of continuous service, as determined by the actuary, for which the payment made, excluding interest, is the full actuarial cost. In the event a member makes payment for additional continuous service in accordance with this paragraph prior to attaining five 5) years of continuous service based on City employment, and separates from City employment before attainingfive ive (5) years of continuous service based on City employment, such member shall receive a full refund of all payments made, plus interest based on the assumed rate of return of the plan. A member purchasing- such additional continuous service must pay the full cost of any actuarial calculations required. Payment for the purchase of continuous service pursuant to this paragraph may be made using any one or a combination of the following options: a) Cash lump sum payment. b) Direct transfer or rollover of an eligible rollover distribution from a qualified plan, in accordance with Section 33.88. c) Time Payment Plan. Under this option the member may elect to pay any remaining balance due for the purchase of continuous service through payroll deduction on a time payment plan over a period of not more than five (5) years, as approved by the Retirement Committee. Interest on such payments shall be paid based on the assumed rate of return of the plan. Payments deducted from an employee's pay shall be designated as employer contributions pursuant to Section 414(h) of the Internal Revenue Code. Earnings. Earnings shall mean base wages paid to the member including state education compensation and fire career education compensation, but excluding overtime, bonuses and any other payments. Effective date. April 22, 1974. Eligible retired public safety officer. An member who, by reason of disability or attainment of normal retirement age, is separated from service as a public sgkty officer. Employee. All employees of the City classified as regular, full-time firefighters, as defined in F.S. Section; 175.032, but shall exclude all civilian members of the Fire -Rescue Department, and the Fire -Rescue Chief upon his or her written election not to participate in the s sy tem. Fund. The Trust Fund established herein as part of the system. Member. An employee who satisfies the conditions of eli ig bility as set forth in section 33.75. term by section 1204)(A) of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796b(9)(AA Qualified Health Insurance Premiums. Premiums for coverage for the eligible retired public safety officer, his spouse and dependents (as defined in Section 152 of the Internal Revenue Coded by an accident or health plan or qualified long-term care insurance contract (as defined in Section 7702B(b) of the Internal Revenue Code). Qualified Military Service. Any service in the uniformed service (as defined in chapter 43 of title 38, United States Codej by gny individual if such individual is entitled to reemployment rights under such chapter with respect to such service (Section 414u�(5) of the Internal Revenue Code). Spouse. The lawful wife or husband of a member at time of retirement and death. System The City Firefighters' Retirement System as contained herein and all amendments thereto. USERRA Uniformed Services Employment and Reemployment Rights Act .L. 103-353). Sec 33.75. - MEMBERSHIP• CONDITIONS OF ELIGIBILITY; APPLICATION. (A) Conditions of eligibility. (1) Employees as defined in Section 33.74 who are covered under the retirement program provided under F S Chapter 175 as of the effective date shall become members of this system. (2) Any other employee shallas a condition of employment become a member upon employment. (B) Application Each eligible employee shall complete an application form covering the following points as well as any other points or items as may be prescribed by the board. (1) The employee's acceptance of the terms and conditions of the retirement system, including an initialing of any declaration of ineli ig bility for disability benefits, (2) The employee's designation of a beneficiary; and (3) Authorization of a payroll deduction payable to the system in the amount provided for in Section 33.78(A). (C) Change in Designation of Beneficiary. (1) A member, including a member who has elected to participate in the Deferred Retirement Option Plan pursuant to Section 33.84, shall designate the joint annuitant or beneficiary to receive the benefit if ani payable under the plan in the event of the member's death on a form provided by the board of trustees. M any time prior to the commencement of retirement income or benefits or prior to the member's entry into the Deferred Retirement Option Plan by submitting such change in writing on a form Provided by the board of Trustees. (3) A retired member, including a retired member who is a Participant in the Deferred Retirement Option Plan mU change the designation of the member's joint annuitant or beneficiary after the commencement of retirement income or benefits up to two (2) times without the approval of the board of trustees Any additional changes must be approved by the board of .trustees A retiree need not provide proof of the good health of the joint annuitant or beneficiary being removed and the joint annuitant or beneficiary being removed need not be living. The consent of the retiree's joint annuitant or beneficial to o any change in such designation shall not be required The member must pay the full cost of determining the equivalent actuarial value of the benefit payable The amount of retirement income payable to the member upon the designation of a new joint annuitant shall be actuarially redetermined taking into account the benefits already received by the member, and the age and sex of the former joint annuitant, the new joint annuitant and the member. Each designation of a joint annuitant or beneficiary shall be made in writing on a form provided by the board of trustees Upon a change in designation of joint annuitant or beneficiary, the rights of all previously designated ted joint annuitants or beneficiaries to receive any benefit under the system shall cease. Sec. 33.76. - BENEFIT AMOUNTS AND ELIGIBILITY. (A) Normal Retirement Date This term shall have the following meanings: (1) For employees who are eligible to become members of the system as of its effective date, the normal retirement date shall be the date of their fifty-second (52nd) birthday regardless of the number of years of continuous service. (2) For employees who are members of the system and terminate employment prior to October 1 1989 the normal retirement date shall be the first day of the month coincidental with or subsequent to their fifty-second (52nd) birthday and the completion of twenty (20) years of continuous service. (3) For members who are =loved on or before October 5, 2016, the normal retirement date shall be the first day of the month coincident with or subsequent to completion of twenty (20) years of continuous service. (4) For employees who are members of the system and retire or terminate employment on or after December 31 1999 the normal retirement date shall also be or the first day of the month coincident with or subsequent to age fifty-five (55) and the completion of ten (10) years of continuous service. (5) For employees who are hired after October 5 2016 the normal retirement date shall be the first day of the month coincident with or subsequent to age fifty-five (55) and the completion m service, regardless of age. ,(B) Normal Retirement Benefit (1) Duration Survivor Benefits A member retiring on his normal retirement date shall receive a monthly benefit which shall commence on his normal retirement date and be continued thereafter during his lifetime Upon his death the full retirement benefit shall be continued to his beneficiary for one year and sixty (60) percent of that amount continued thereafter until the earlier of death or remarriag,- Notwithstanding the previous sentence for members who are not eligible for normal retirement on October 5 2016 and members hired on or after that date who retire on the normal retirement date the monthly benefit based on continuous service after October 5, 2016 shall commence on the normal retirement date and continue thereafter during the member's lifetime; and in the event the member dies within ten (10) years following retirement the monthly benefit shall be paid to member's designated beneficiary for the remainder of the ten year period. (2) Amount. (a) For members hired on or before October 5, 2016 retirement benefits shall be in the amount of two and one-half (21/2) percent of average monthly earnings for each year of continuous service for members with more than ten (10) but less than twenty (20) years of continuous service Normal retirement benefits shall be in the amount of three (3) percent of average monthly earnings for each year of continuous service if a member has attained twenty (20) or more Years of continuous service subject to a maximum of seventy-five (75) percent of average monthly earnings Provided however, that in no event shall a member's total benefit be less than two (2) -percent of average monthly earnings for each year of continuous service. (b) Notwithstanding any other provision of the system the normal retirement benefit for members employed on or before October 5 2016 shall be three (3%) percent of average monthly earnings for each year of continuous service earned after that date. (c) Notwithstanding any other provision of the system the normal retirement benefit for members hired after October 5 2016 shall be two and three-fourths (2.75) percent of average monthly earnings for each year of continuous service. (d) Notwithstanding any other provision of the system, effective October 5, 2016, the maximum annual benefit in the normal benefit form at the time of retirement shall be one hundred thousand dollars ($100,000.00); provided in no event shall a member's total benefit be less than two (2) percent of average monthly earnings for each year of continuous service. This maximum benefit amount shall be increased annually by two (2) percent, effective October 1, 2016 and each October 1 thereafter. - (3) Optional Enhanced Multiplier. 47 by the City on March 15 2004 but who is not participating in the deferred retirement option plan (DROP) may elect a normal retirement benefit in the amount of three and one-half (3.5) percent of average monthly gs for each year of continuous service if the member attains twenty (20) or more years of continuous service subject to a maximum of eighty-seven and one- half (87.5) percent of average monthly earnings Members electing this enhanced multiplier shall thereafter contribute three (3) percent of earnings to the Trust Fund in addition to the member contributionspecified in Section 33.78 A until October 5 2016 and shall receive the enhanced multiplier for all periods of continuous service before that date. An election under this subparagraph must be on or before April 15 2004. (b) Notwithstanding Qy other provision of the system a member who is actively employed by the City on March 15 2004 but does not elect the enhanced multiplier in accordance with subparagraph () above and who is not participating in the deferred retirement option plan (DROP), -Djay thereafter elect a normal retirement benefit in the amount of three and one-half (3.5) percent of average monthly earnings for all future continuous service after making such electiof continuous sexvice subject to a maximum of eighty-seven and one-half (87.5)percent of average monihly earnings Members electing this enhanced multiplier shall thereafter contribute three (3) percent of earnings to the Trust Fund in addition to the member contribution specified in Section 33.78 until October 5 2016 Such member may_also elect to purchase the enhanced multiplier for some or all periods of continuous service prior to the date of the election by paying the full actuarial cost of the enhanced multiplier, plus the full cost of any actuarial or other professional services required. (c) Notwithstanding any other provisiop of the system a member who is hired after March 15 2004 and before April 9 2013, and who is not participating in the deferred retirement option plan (DROP) may elect a normal retirement benefit in the amount of three and one-half (3.5) percent of average monthly earnings for all future continuous service after making such election until October 5 2016 if the member attains twenty (20) or more years of continuous service, subject to a maximum of eighty-seven and one-half (87.5) percent of average monthly earnings. Members electing this enhanced multiplier shall thereafter contribute three (3) percent of earnings to the Trust Fund in addition to the member contribution specified in Section 33.78(A) until October 5 2016 Such member may also elect to purchase the enhanced multiplier for some or all periods of continuous service prior to the date of the election by paying the full actuarial cost of the enhanced multiplier, plus the full cost of gr y actuarial or other professional services required Members hired on or after April 9 2013 shall not be eligible for the optional enhanced multiplier provided in this para -graph (c). (d) The election to receive the enhanced multiplier under this paragraph must be made in writing on a form provided by the City Such election shall be irrevocable. If an eligible member does not elect an optional enhanced multiplier under this paragraph or if an eligible member elects the enhanced multiplier for only a portion of his total continuous service then the benefit provided in paragraph (2) shall be used to calculate the benefit for all continuous service to which the enhanced multiplier does not apply. If an eligible member elects the enhanced IN the member's benefit shall be determined in accordance with paragraph (b), and the member shall receive a refund of all additional contributions and amounts paid for the enhanced multi 1p ier, without interest. In no event shall a member's total benefit be less than two Q percent of average monthly earnings for each year of continuous service. (4) Upon becoming eligible for normal retirement a member shall be one hundred (100 percent vested in his or her accrued benefit. (C) Early Retirement Date. On or after December 31 1999 a member may retire on or after the early retirement date which shall be the first daffy month coincident with or next following the attainment of age fifty (50) and the completion of ten (10) years of continuous service Early retirement is retirement from active employment with the City on or after the early retirement date and Prior to the normal retirement date. (D) Early Retirement Benefit The amount of the early retirement benefit shall be determined in the same manner as the normal retirement benefit except that continuous service and average final compensation shall be determined as of the early retirement date. The benefit payable shall be reduced by three (3) percent for each year by which the commencement of benefits precedes the normal retirement date The early retirement benefit provided in this subsection (D) shall have no application to the early retirement incentive provided in Section 33.85. (E) Disability Retirement Provisions. (1) (a) For purposes of this system "total and permanent disability" shall mean an injury, disease or condition which totally and permanently incapacitates a member either physically or mentally, from his regular and continuous duty as a firefighter. A "total and permanent disabili " arisingdirectly from the performance of service to the -City by a member as firefighter shall be considered to be a service incurred disability. A "total and permanent disability" arising from any other cause or source other than as modified below, shall be considered to be a nonservice incurred disability. A member shall not be entitled to receive a disability retirement benefit from the system if the disability is a result of. (1) Excessive and habitual use of drugs intoxicants or narcotics, (2) Injury or disease sustained by the member while willfully and illegally participating in fights riots civil insurrections or while committing a crime; (3) Injury or disease sustained by a member while serving in any of the armed forces; (4) Injury or disease sustained by the member after his employment with the City has been terminated. (b) A member shall not receive a service incurred disability benefit for injury or disease sustained by the member while working (either as an employee or through some other contractual arraneg ment) for anyone other than the City, performing a job function the same as or related to the member's City job function and arising out of the scope of any other employment or contractual arrangement excepting injuries sustained by members while iniuries occurred at an outside employer's job site In addition a member shall not be entitled to receive a disability retirement benefit from the system on the basis of any condition which existed prior to the member's employment or which was evidenced- during the member's pre- =Ioyment physical. (2) Application for Benefits In order for the board to consider a member's request for disability retirement benefits the member must apply in writing to the board. Upon receipt of proper application by the board of trustees the board of trustees shall arrange for a physical examination of the applicant by the medical board A further condition for receipt of disability retirement benefits from the system is that the applicant must apply for and diligently -pursue disability benefits from social security and workers' compensation. Written proof of application must be submitted to the board of trustees Failure of the applicant to qualify as beim disabled under either the social security or workers' compensation laws may be considered by the board of trustees in review of that member's application or recovery from disability. (3) Medical Board When a member submits proper application for a disability retirement benefit the board of trustees shall designate a medical board to be composed of at least one physician The medical board shall arrange for and pass upon all medical examinations required under the provisions of this subchapter, shall investigate all essential statements or certificates made by or on behalf of a member in connection with an application for disability retirement and shall report in writing to the board of trustees its conclusions and recommendations upon all matters referred to it The payment of those services shall be determined by the board of trustees. (4) Determination of Disability_questions relating to eligibility for initial payment or continuance of disability benefits shall be determined by the board of trustees, taking into consideration the recommendations of the medical board and arty other evidence of which the board of trustees may avail itself. The general steps which the board of trustees shall follow in its determination shall be as listed below, provided however, that the board of trustees may, in its discretion alter or modif these steps: (a) Determine whether the member's application is proper; (b) If application is for a nonservice incurred disability, determine whether the ten (10) years of continuous service requirement has been met; (c) Based on all evidence submitted to the board of trustees determine whether the applicant satisfies the definition of disability, including the absence of listed exclusions; (d) Determine whether the disability is to be considered a service -incurred disability or a nonservice disability, taking into consideration F. S. section 175.231. (e) Establish a date of disability. This date may be the date of injury causing the disability, the date when the member could no longer perform his regular and continuous duties the date when his sick pay and vacation pay are exhausted or such other date as determined by the board of trustees. (5) Disability Retirement Benefits. 50 regardless of length of continuous service Each member who completes ten (10) years of continuous service prior to becoming disabled shall be eligible for nonservice incurred disability benefits. (b) Initial Amount of Service Incurred Disability Benefit. The greater of sixty (60) percent of the member's average monthly earnings in effect on the date of disability or the member's accrued pension benefit Effective for disability applications filed on or after May 3, 2011, the initial amount of service incurred disability benefit shall be the greater of sixty-one (61) percent of the member's average monthly earnings in effect on the date of disability or the member's accrued pension benefit. (c) Amount of Nonservice Incurred Disability Benefit Two (2) percent of average monthly earnings in effect on the date of disability for each Year of continuous service; provided, however, the minimum shall not be less than twenty-five 25) percent of average monthly earnings. (d) Terms of Payments Disability benefits shall commence on or as of the first day of the month coincident with or next following- the date of disability, as established by the board of trustees and shall continue to be paid on the first day of each subsequent month until the death or reco= of the disability retiree The same survivorship percentages which apply to normal retirement benefits shall also apply to disability retirement benefits. (e) Eligibility for Other Benefits In the event that a member applying for disability benefits is also eligible for either early or normal retirement the board may, upon the request of the member, pay the early or normal retirement benefit instead of a disability retirement benefit. (6) Report by Disability Retiree. (a) Each person currently receiving disability retirement benefits and each person who first qualifies for disability retirement benefits shall be required to submit to the board of trustees upon a request by the board of trustees a signed and notarized report which includes, but is not limited to: (1) A medical report from the disability retiree's physician stating whether the retiree is still totally incapacitated to perform the regular and continuous duties of a firefighter shall be submitted to the board The required physician's statement must be dated within four (4) months of the request. (2) A statement to the effect that the disability retiree understands that if the report is incomplete or incorrect his disability benefits may be suspended or discontinued. (b) In the event that the required reports are not submitted to the board on a timely basis, or are incomplete or incorrect the board may, in its discretion suspend or discontinue the disability retirement benefits. (7) Disability Affidavit No member otherwise eligible to receive disability benefits shall be paid those benefits unless and until that member files a disability affidavit with the board on a 51 he is acquainted and familiar with the terms and conditions of his disability retirement. In particular, he shall acknowledge the authority of the board to require him to undergo periodic future Physical examinations in order to determine whether he has recovered from disability. ,(8) Authority for Reexamination. Each Person who first qualifies for or is then receiving disability retirement benefits on or after the effective date of this subchapter shall be subject to periodic reexamination by a medical board selected by the board of trustees to determine if the disability has ceased to exist. (9) Recovery from Disability. (a) In the event a member who has been retired on a disability benefit regains his health and is able to perform his duties in the Fire Department the board shall discontinue the pension; and $irther, the City shall subject to budget and qualification of the member for the position offer the member a position with the City as a firefighter. (b) If a member shall resume his employment with the City, as a firefighter, then he may pay into the Fund an amount equal to the aggregate contributions plus interest at a rate to be determined by the board (computed upon his annual earnings at the time of his disability retirement) he would have been required to make hereunder, as determined by the board, during the period of his disability retirement had he not been retired and shall thereupon receive creditable service for the period of the disability retirement. In any event that member shall retain credit for the period of continuous service to the date of disability. (F) Preretirement Death. (1) Service Incurred A death benefit shall be payable on behalf of any member who dies as a direct result of an occurrence arising in the performance of service. These benefits are not to be limiting to other benefits available under State law. The benefits shall be payable as follows: (a) To the spouse until the earlier of death or remarriage a monthly benefit equal to fifty .(50) percent of the member's average monthly earnings; or to a designated beneficiary or beneficiaries other than the spouse until death a monthly benefit equal to the actuarial equivalent of a lifetime benefit payable to the member if the amount of fLfty (50) percent of the member's average monthly earnings at date of death, plus (b) (1) For each unmarried child until he or she shall have reached the age of eighteen (18) years and for each unmarried child from age eighteen (18) until age twenty-two (22) who is a full-time student in a fully accredited high school college or university, there shall be paid in equal monthly installments an amount equal to five (5) percent of the average monthly earnings subject to an overall limitation of a total of sixty (60) percent of average monthly earnings for the spouse and children combined The nonstudent child's pension shall terminate on the earlier of death marriage or the attainment of age eighteen 18). The pension of a child who is a student shall terminate on the earlier of death marriage or the attainment of age twenty-two (22). Legally adopted children shall be eligible the same as natural children. 52 increased to ten (10) percent for each child not to exceed a combined total of thirty-five (35) percent of the member's average monthly earnings. The trusteeship and disbursements of the pension to any child shall be determined by the board of trustees. (c) Notwithstanding any provision of this subsection to the contrary, the surviving spouse of any member killed in the line of duty shall not lose death benefits upon remarriage. (2) Nonservice Incurred If any member shall die in active service from causes not attributable to active duty or service a death benefit shall be payable as follows: (a) With less than one year of continuous service a single sum amount of two thousand five hundred dollars ($2,500.00) to the member's spouse or other designated beneficiary or beneficiaries, as the case may be. (b) With one but less than five (5) years of continuous service a single sum amount of five thousand dollars ($5,000.00) to the member's spouse or other designated beneficiary or beneficiaries, as the case may be. (c) With five (5) or more years of continuous service: (1) A single sum amount of five thousand dollars ($5,000.00) to the member's spouse or other designated beneficiary or beneficiaries as the case may be, plus (2) To the spouse until remarriage or death in equal monthly payments a pension equal to six -five (65) percent of that member's accrued pension as of date of death subject to a minimum of twenty(20)percent of average monthly earnings; or to a designated beneficiary or beneficiaries other than the spouse until death a monthly benefit equal to the actuarial equivalent of a lifetime benefit payable to the member in the amount of sixty-five (65) percent of such member's accrued pension as of date of death, plus (3) To the child of the deceased member, the same benefits as are payable by reason of service incurred death subject however, to a maximum combined limitation of monthly payments to the spouse and children of fifty (50) percent of average monthly earnings and thirty- five (35) percent after remarriage or death of spouse. (3) In the event more than one beneficiary is designated by the member, the death benefits provided in this Section shall be apportioned equally among the beneficiaries. (G) Vesting, (1) If a member terminates his employment with the Fire Department either voluntarily or by lawful discharge and is not eligible for any other benefits under this system, he shall be entitled to the following: (a) Effective September 1 1999 with less than ten (10) years of continuous service, refund of member contributions with a noncompounded simple interest rate of three (3) percent per year applied to the principal balance of the participant's contribution as accrued on December 31 of each year, per year. In the event the amount of member contributions with interest exceeds one 53 upon the written request of a member or designated beneficiary. (b) With ten (10) or more years of continuous service: (1) The Pension benefit accrued to his date of termination payable commencing on the date which would have been his earliest normal retirement date had he remained in employment, Provided he does not elect to withdraw his member contributions; or (2) Effective September 1 1999 refund of member contributions with a noncompounded simple interest rate of five (5) Percent per year applied to the principal balance of the Participant's contribution as accrued on December 31 of each year. (2) Any member of this system who for whatever reason has his employment with the City as a firefighter terminated but who remains with or was previously employedy the City in some other capacity so that his total Period of employment with the City is ten 10) years or more shall have all benefits accrued under this system Preserved provided he does not elect to withdraw his member contributions These accrued benefits shall be payable at his otherwise normal retirement date in accordance with the provisions of this system. For purposes of determining normal retirement date under this vesting_ provision continuous service shall include all continuous employment with the City as an employee as herein defined as well as the period of time subsequent to termination as a member of this system; however, benefits shall not be Payable under this system during any period of continued employment by the City. Upon the written election of the Fire Chief not to participate in the system the employment of the Fire Chief shall be deemed terminated for the purpose of applying the provisions of this system. A Fire Chief who terminates his participation in this system shall not thereafter be eligible to receive benefits through this system while actively employed by the City. (H) Application of Section The provisions set forth herein shall be applicable to all current and future members of the plan except those members who retired entered the DROP plan, or terminated employment prior to August 17 1999 Members who retired entered the DROP plan, or terminated employment prior to August 17 1999 shall receive benefits in accordance with the plan provisions in effect on the date of their retirement entry into the DROP plan, or termination, whichever is earliest. (I) Maximum Benefits A member may not receive a pension or disability benefit which exceeds the lesser of: (1) One hundred (100) percent of the member's average monthly earnings for the highest consecutive thirty-six month period as a member of the pension fixed for members hired on or before October 5 2016• or one hundred (100) percent of the member's average monthly earnings for the highest five of the last ten years of service for members hired after October 5, 2016; or (2) A maximum annual benefit in the normal benefit form at the time of retirement of one hundred thousand dollars ($100,000.00); providedin no event shall a member's total benefit be Less than two (2)percent of average monthly earnings for each year of continuous service. This 54 2016 and each October 1 thereafter; or (3) The maximum amount allowed under Section 415 of the Internal Revenue Code (increased to reflect the cost -of -living adjustment factor prescribed under Section 415(4) of the Internal Revenue Code) that is incorporated herein by reference. Notwithstanding an other of the system to the contrary the annual benefit to which a member is entitled under the s sy tem shall not in M limitation year, be in an amount which would exceed the applicable limitations under Section 415 of the Internal Revenue Code and the regulations issued thereunder. If the benefit payable under the system would (but for this section) exceed the limitations of Section 415 of the [Internal Revenue] Code by reason of a benefit payable under another defined benefit plan aggregated with this system under [Internal Revenue] Code Section 415(f), the benefit under this system shall be reduced only after all reductions have been made under such other plan. As of January 1 of each calendar year commencing on or after January 1, 2008, the dollar limitation as determined by the Commissioner of the Internal Revenue Service for that calendar ear adjusted for the member's age in accordance with the applicable IRS regulations, shall become effective as the maximum permissible dollar amount of benefit payable under the system during the limitation year ending within that calendar year. Q) Required Payment of Pension Benefits Pension benefits shall begin no later than April 1 of the calendar year following the calendar year in which the member retires, or in which the member attains age seventy and one-half (701/2) even if the member has not filed a claim for pension benefits. In addition payment of benefits shall be made in accordance with the applicable provisions of Section 4010(9) of the Internal Revenue Code, which is incorporated herein by reference. Notwithstanding any other provision of this plan to the contrary, a form of retirement income payable from this plan, shall satisfy the following conditions: (1) If the retirement income is payable before the member's death: a It shall either be distributed or commence to the member not later than April 1 of the calendar year following the later of the calendar year in which the member attains age 701/2, or the calendar year in which the member retires; b The distribution shall commence not later than the calendar year defined above; and (i) shall be paid over the life of the member or over the lifetimes of the member and spouse, issue or dependent or (ii.) shall be paid over the period extendingnot of beyond the life expectancy of the member and spouse, issue or dependent. Where a form of retirement income payment has commenced in accordance with the preceding paragraphs and the member dies before his entire interest in the plan has been distributed the remaining portion of such interest in the plan shall be distributed no less rapidly than under the form of distribution in effect at the time of the member's death. (2) If the member's death occurs before the distribution of his interest in the plan has commenced member's entire interest in the plan shall be distributed within five (5) years of member's death unless it is to be distributed in accordance with the following rules: 55 b. The remaining interest is to be distributed over the life of the spouse, issue or dependent or over a period not extending beyond the life expectancy of the spouse, issue or dependent; and C. Such distribution begins within one year of the member's death unless the member's spouse is the sole designated beneficiary, in which case the distribution need not begin before the date on which the member would have attained age 70V2 and if the member's spouse dies before the distribution to the spouse begins this section shall be applied as if the spouse were the member. (K) Qualified Health Insurance Premiums. Upon the written request of the member, a distribution hereunder, or part thereof, shall be paid directly to an insurer on account of the qualified health insurance premiums payable by such member who is an eligible retired public safety officer, in accordance with the applicable provisions and limitations in Section 402 of the Internal Revenue Code. Sec. 33.77. - OPTIONAL FORMS OF BENEFITS. Each member entitled to a normal early or disability retirement benefit shall have the right at any time prior to his actual retirement to elect to have his benefit payable under any one of the options hereinafter set forth in lieu of the benefits otherwise provided herein, and to revoke any elections and make a new election at any time prior to actual retirement. The value of optional benefits shall be actuarially equivalent to the value of benefits otherwise payable. The member shall make an election by written request to the board of trustees this request beim retained in the board's files. (A) - Option 1 Joint and Last Survivor Option. A retiring member may elect to receive an actuarially adjusted retirement benefit during_ his lifetime and have such retirement benefit &cluding_seven -five (75) percent sixty-six and sixty-six one hundredths (66.66) percent or fifty (50) percent thereof) continued after his death to and during the lifetime of a designated joint annuitant The election of Option 1 shall be null and void if the designated joint annuitant dies before the member's retirement unless the member designates another joint annuitant in accordance with Subsection 33.75(C). In addition the member may elect to add a "pop-up" feature to his joint and survivor option then upon the death of his joint annuitant the amount of his monthly payment will be increased to the amount of a straight life annuity and such amount will be payable as of the first day of each month after the death of his joint annuitant for the remainder of his lifetime A member electing to add the pop -LIP feature to his joint and survivor option will have his monthly benefit under this Option 1 actuarially reduced to take into account the addition of the pop-up featzare. (B) Option 2 Ten Years Certain and Life Thereafter. A retiring member may elect to receive a retirement benefit with one hundred twen (120) monthly payments guaranteed. If, after retiring the member should die before the one hundred twenty (120) monthly payments are made payments are then continued to his designated beneficiary until one hundred twenty (120) payments in all have been made at which time benefits cease. After expiration of the one hundred twenty_(120) monthly payments guaranteed should the retired member be then alive 56 of the plan to the contrary, this option (Option 2) shall be the normal form of benefit for unmarried employees who retire from active service on or after December 31, 1999. (C) Option 3 Other. In lieu of the other optional forms enumerated in this Section, retirement benefits may be paid in any form approved by the board so long as actuarial equivalence with the benefits otherwise payable is maintained. Sec. 33.78. - CONTRIBUTIONS. (A) Member Contributions. (1) Members shall make regular contributions to the Trust Fund at a rate equal to nine (9) percent of their respective annual earnings Eligible employees as a condition of membership shall agree in writing upon becoming- a member to make the contribution specified herein. These contributions shall be deducted from the earnings before the same are paid, until the member has completed twenty-five (25) years of continuous service at which time member contributions are no longer required. (2) ' The City shall pick up the member contribution rewired by subsection (A)(1) above. The contributions so picked up shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code. The City shall pick up the member contributions from funds established and available in the salaries account, which funds would have otherwise been designated as member contributions and paid to the pension fund. Member contributions picked up by the Citypursuant to this subdivision shall be treated for purposes of making a refund of member contributions and for all other pumoses of this and other laws in the same manner and to the same extent as member contributions made prior to the effective date of this subdivision The intent of this subdivision is to comply with Section 414(h (2) of the Internal Revenue Code No employee shall have the option of choosing to receive the contributed amounts directly instead of having them paid by the City to the System. (B) State Contributions Any moneys received or receivable by reason of laws of the State, for the express purpose of funding and pa i�ng for retirement benefits for Firefighters of the City shall be deposited in the Trust Fund comprising part of this system By mutual agreement of the City and firefighters' union all annual premium tax moneys received pursuant to Chapter 175, Florida Statutes up to the amount received during the 2013 calendar year ($1,206,994) shall be used to offset the cost of current benefits by reducing the City's annual required contribution to the system. (C) City Contributions So long as this system is in effect the City shall make an annual contribution to the Trust Fund during the first quarter of the plan year or ince uarterly installments in an amount equal to the difference in each year as between the total of aggregate member contributions for the year plus State contributions for the year and the total cost for the year as shown by the most recent actuarial valuation and report for the system. The total cost for any 57 the unfunded accrued past service liability over a period not greater than thirty (301 years. (D) Guaranteed Refund of Member Contributions. All benefits payable under this system are in lieu of a refund of member contributions. Effective September 1, 1999, employees who terminate employment with less than ten (10) years of continuous service, upon the election to receive a refund of member contributions shall receive a noncompounded simple interest rate of three (3) percent per year applied to the principal balance of the participant's contributions as accrued on December 31 of each year. Effective September 1 1999, employees who terminate employment with ten (10) years or more of continuous service upon the election to receive a refund of member contributions shall receive a noncompounded simple interest rate of five (5) percent per year applied to the principal balance of the participant's contribution as accrued on December 31 of each year. In any event each member shall be guaranteed the payment of benefits at least equal in total amount to his accumulated contributions plus interest as provided herein. (E) All beneficiaries and retired members presently receiving benefits under F.S. Chapter 175 shall continue to receive those benefits under this system. (F) Any forfeitures that may arise upon the termination of a member's employment shall be used to offset the subsequent cost of the City. Such forfeitures shall not be used to increase benefits of remaining members. Sec. 33.79. - ADMINISTRATION. (A) Effective October 1 2016 the general administration and responsibility for the proper operation of the retirement system and for making effective the provisions of this subchapter axe vested in a board of trustees consisting of five (5) members as follows: (l) Two (2) legal residents of the City to be appointed by the City Commission; (2) Two (2) full-time City firefighters as defined in section 175.032 Florida Statutes, to be elected by all active members as provided herein; and (3) A fifth member, who shall be chosen by a majority of the other four members. Such person's name shall be submitted to the City Commission which shall as a ministerial act, appoint such person to the board of trustees. (B) Each appointed member shall serve as trustee for a period of four (4) years unless sooner replaced by the City Commission at whose pleasure he or she serves and may succeed himself or herself as a trustee Each elected firefi&ter member shall serve as trustee for a period of four (4) years unless he or she sooner leaves the employment of the City as a firefighter, whereupon a successor shall be chosen in the same manner as the original election. Each elected firefihtex trustee may succeed himself or herself in office The fifth member shall have the same rights and duties as the other trustees shall serve as trustee for a period of two (2) years, and may succeed himself or herself in office. 58 firefighter members at meetings to be held at places designated by the City Manager, of which meetings all qualified members entitled to vote shall be notified in person or by mail ten (10) days in advance of the meeting The candidate receiving the highest number of votes for each office shall be declared elected and shall take office immediately upon commencement of the term of office for which elected or as soon thereafter as he shall qualify therefor. An election shall be held not more than tbirty (30) and not less than ten (10) days prior to the commencement of the terms for which trustees are to be elected. The My Manager shall establish the election procedure for the initial election Thereafter, it shall be the duty of the board of trustees. The board of trustees shall meet organize and elect one of their members as chairperson and one member as vice chairperson within thirty(30) days after trustees are elected and duly qualified, and annually thereafter. (D) If a vacancy occurs in the office of trustee the vacancy shall be filled for the unexpired term in the same manner as the office was previouslyfilled. lled. (E) The trustees shall serve without compensation but they may be reimbursed from the Trust Fund for all necessaryexpenses.which they may actually expend through service on the board. (F) Each trustee shall within ten (10) days after his appointment or election, take. an oath of office before the City Clerk that so far as it develops upon him he will diligently and honestly administer the affairs of the board and that he will not knowingly violate or willingly permit to be violated any of the provisions of the law applicable to the retirement system. The oath shall be subscribed to by the members making it and certified by the Clerk and filed in the office of the City Clerk. (G) Each trustee shall be entitled to one vote on the board. Tbree (3) affirmative votes shall be necessary for a decision by the trustees at any meeting of the board. The chairperson shall have the right to one vote only. (H) Subject to the limitations of this subchapter, the board of trustees shall from time to time establish uniform rules and regulations for the administration of funds created by this subchapter and for transactions of its business including provisions for expulsion due to nonattendance of its members which could result in a vacancy. (I) The board of trustees shall byajority vote of its members appoint a secretary who shall be one of its members It shall engage actuarial and other services as shall be rewired to transact the business of the retirement system The compensation of all persons engaged by the board of trustees and all other expenses of the board necessary for the operation of the retirement system shall be paid at those rates and in amounts as the board of trustees shall agree. Funds may be disbursed by the City Finance Department or other disbursing agent as determined by the board, only upon written authorization by the board of trustees. Q Any trustee who ne0ects the duties of his office as determined by the board, may be removed b f�(4) concurring votes among the board of trustees. 59 be limited by, the following_ (1) To construe the -provisions of the system and determine all questions arising thereunder; (2) To determine all questions relatingto eligibility and Participation; (3) To determine and certify amount of all retirement allowances or other benefits hereunder; (4) To establish uniform rules and procedures to be followed for administrative purposes, benefit applications and all matters required to administer the system; (5) To distribute at regular intervals to employees information concernin the hes stem; (6) To receive and process all applications for Participation and benefits; (7) To authorize all payments whatsoever from the Fund and to notify in writing the disbursing agent of approved benefit -payments and other expenditures arising_ through operation of the system and fund; (8) To have performed actuarial studies and annual actuarial valuations and make recommendations regarding any and all changes in the provisions of the system, (9) To perform those duties as are specified in this subchapter. Sec. 33.80. - FINANCES AND FUND MANAGEMENT. UA) As part of the system there is established the Trust Fund into which shall be deposited all of the contributions and assets whatsoever attributable to the system. (B) The actual custody and supervision of the Fund (and assets thereof) shall be vested in the board of trustees Payment of benefits and disbursements from the Fund shall be made by the disbursing agent on authorization from the board. ,(C) The board may hire and appoint those persons agents or entities (including corporate fiduciaries) as in its discretion may be required or advisable to enable it to perform custodial and investment duties hereunder. The board may enter into agency investment advisory, and custodial agreements for the purpose of securing investment and custodianship services for the system and fund. (DL)) (1) All funds and securities of the system may be commingled in the Fund, provided that accurate records are maintained at all times reflecting the financial composition of the Fund, including accurate current accounts and entries as regards the following: (a) Current amounts of accumulated contributions of members on both an individual and aggregate account basis; (b) Receipts and disbursements; (c) Benefit payments; contributions and deposits from the City; .(e) All interest, dividends and gains or losses) whatsoever; and (f) Any other entries as may be properly required so as to reflect a clear and complete fmancial report of the Fund. (2) An annual report shall be made by the certified public accounting firm performing; the City's annual audit. (E) The board of trustees shall have the following investment powers and authority: (1) The board of trustees shall be vested with full legal title to the Fund; subject however and in any event to the authority and power of the City Commission to amend or terminate this trust, provided that no amendment or fund termination shall ever result in the use of any assets of this Fund except for the payment of regular expenses and benefits under this system. All contributions from time to time paid into the Fund, and the income thereof, without distinction between principal and income shall be held and administered by the board or its agent in the Fund and the board shall not be required to segregate or invest separately any portion of the Fund. (2) The board and each trustee thereof is a fiduciary with respect to the Trust Fund, and shall exercise investment authority under this Section solely in the interest of plan members and beneficiaries for the exclusive purpose of providing- benefits to members and their beneficiaries and defrUjag the reasonable expenses of administering the plan. The board shall exercise its investment authority with the care shill prudence and diligence under the circumstances then prevailing that a prudent person in a like capacity and familiar with such matters would use in the conduct of an enterprise with like character and like aims. (3.) Notwithstanding any limitation provided in Chapter 175, Florida Statutes, or any limitation or condition contained in Section 215.47 Florida Statutes the board of trustees may invest and reinvest pension fund assets in such securities investment vehicles and property wherever situated and of whatever kind as the board shall approve in the exercise of its fiduciary duty and authority, including but not limited to common or preferred stocks bonds and other evidences of indebtedness or ownership. The board may invest up to twenty-five(25) percent of fund assets, on a market -value basis in foreign securities. (4) The board shall adopt and periodicaly update a written investment policy in accordance with Section 112.661, Florida Statutes. All investments approved by the board shall be in accordance with the investment polio The board shall provide a copy of the investment policy and any revisions thereto to the City Manager, in accordance with Section 112.661, Florida Statutes. (5) The board shall provide a quarterly financial report to the City Manager no later than thirty (3 0) days following the end of each calendar quarter, which report shall include a summary reflecting the total market value of the fund at the beginning and end of the quarter, total investment gains and losses during the quarter, and a summary of the market value and 61 assets. The board shall also provide a copy of all reports from the board's investment consultant to the City Manager within five (5) days following the board's approval or review of such reports. (6) The board may retain in cash or unproductive of income an amount of the Fund as it may deem advisable, having regard for the cash requirements of the system. (7) Neither the board nor any person or entity shall be liable for the maldng, retention, or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the Fund, except that due to his own negligence, willful misconduct, or lack of good faith. (8) The board may cause any investment in securities held by it to be registered in or transferred into its name as trustee or into the name of the nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the Fund. (9) The board is empowered but is not required, to vote upon any stocks, bonds or securities of any corporation association or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations consolidations and similar transactions with respect to those securities; to deposit stock or other securities in any voting trust or any protective or like committee or with the trustees or with depositaries designated thereby to amortize or fail to amortize anfpart or all of the premium or discount resulting from the acquisition or disposition of assets; andeg nerally, to exercise any of the powers of an owner with respect to stocks, bonds or other investments, comprising the Fund which it may deem to be to the best interest of the Fund to exercise. (10) The board shall not be required to make any_inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power herein contained.. (11) Where any action which the board is required to take or any duty or function which it is required to perform either under the terms herein or under the general law applicable to it as trustee under this subchapter, can reasonably be taken or performed only after receipt by it from a member, the City or any other entity of specific information, certification, direction or instructions the board shall be free of liability in failing to take any action or perform any or function until that information certification direction or instruction has been received b (12) Any overpayments or underpayments from the Fund to a member or beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the board. Overpayments shall be charged against payments next succeeding the correction. Underpayments shall be made up from the Trust Fund. (13) The board shall sustain no liability whatsoever for the sufficiency of the Fund to meet the payments and benefits herein provided for and shall be under no obligation to inquire into the sufficiency of the payments made into the Fund by the City. (14) In any application to or proceeding or action in the courts, only the City and the board shall be necessary parties and no member or other person having an interest in the Fund shall be 62 shall be conclusive upon all Persons. ,(F) Any of the foregoing powers and functions reposed in the board may be performed or carried out by the board through duly authorized agents, provided that the board at all times maintains continuous supervision over the acts of any agent; and that legal title to the_ Fund shall always remain in the board of trustees. (G) At least once every three (3) years the board shall retain a professionally qualified independent consultant to evaluate the performance of any existing money manager and make recommendations to the board regarding the selection of money managers for the next investment term in accordance with F.S. Section 175.071(6). No change in any of the administrative provisions of the system shall be made without the approval of a majority of the board of trustees. Sec. 33.81. - OTHER PROVISIONS. (A) Discharged Members. Members entitled to a pension shall not forfeit the same upon dismissal from the department but shall be retired as herein described. (B) Recovery from Disability. In the event a member who has been retired on a disability benefit regains his health and is able to perform his duties in the Fire -Rescue Department, the board of trustees shall require the member to resume employment with the respective department and discontinue the pension-, provided that if a member shall after resuming his position paw the Fund an amount equal to the aggregate contributions plus interest at a rate to be determined by the board (computed upon his annual earnings at the time of his disability retirement) he would have been required to make hereunder, as determined by the board during the period of his disability retirement had he not been retired the member shall receive creditable service for the period of disability retirement. In any event a member shall retain credit for the period of continuous service prior to the date of disability. (C) Nonassi zigl ability No benefit Provided for herein shall be assignable or subject to garnishment for debt or for other legal process. (D) Duration of Benefits Benefits granted to members shall be paid to them for life and shall not be revoked nor in any way diminished except as provided in .this subchapter and the payments of the member to this fund shall cease upon his retirement and acceptance of a benefit or thirty(30) years of continuous service or termination. (E) Pension Validity. The board of trustees shall have the power to examine into the facts mon which pony pension shall heretofore have been granted under any prior or existing law, or shall hereafter be jranted or obtained erroneously, fraudulently, or illegally for any reason. The board is empowered to purge the Pension rolls of Qy person heretofore granted a pension under prior or existing law or hereafter granted under this subchapter if the same is found to be erroneous fraudulent or illegal for any reason; and to reclassify any pensioner who has 63 erroneously, improperl or r illegally classified. �F) Incompetents. If any member or beneficiary is a minor or is, in the judgment of the board, otherwise incapable of personally receiving andig ving a valid receipt for anipayment due him under the system the board may, unless and until claims shall have been made by a duly appointed guardian or Committee of that. person, make the payment or any part thereof to the person's spouse children or other person deemed by the board to have incurred expenses or assumed responsibility for the expenses of that person. Any payment so made shall be a complete discharge of any liability under the system for the pajent. (G) Miscellaneous Provisions. (1) The board will furnish the actuary with all data required for necessary actuarial computations under the plan. (2) No payment or any benefit contribution or other sum which would constitute a violation of any pplicable wage control law shall be made hereunder. (3) The benefits for any person who was a member under F.S. Chapter 175, immediately prior to the effective date of this subchapter, shall not be less than those which he would have received under the plan prior to the effective date based on his rate of earnings in effect as of the effective date. (II) Lump -Sum Distributions in Excess of One Thousand Dollars ($1,000.00 Notwithstanding_any provision of the system to the contrary, and only to the extent a lump -sum distribution is expressly authorized a lump -sum distribution in excess of one thousand dollars ($1,000.00) shall be made only upon the written request of a member or designated beneficiary. Sec. 33.82. - SUPPLEMENTAL RETIREMENT INCOME AND MINIMUM BENEFIT FOR MEMBERS WHO RETIRED PRIOR TO CERTAIN DATE. (A) Members and beneficiaries of members who retired prior to October 1, 1987, shall receive an increase in their retirement income calculated in accordance with Sections 33.76 and 33.77 equal to two (2) percent for each year from the date of the member's retirement through September 30 1987 The supplemental and minimum retirement income provided in this Section shall be paid effective January 1 1988 The supplemental retirement income provided in this Section shall not be subject to the benefit offset contained in subsections 33.76(E)(5)(e). and E 7. LB) Members and beneficiaries of members who retired or terminated employment prior to October 1 1990 and began receiving benefits prior to June 18 1993 shall receive an increase in their retirement income calculated in accordance with Sections 33.76, 33.77, 33.82(A), equal to five (5) percent The supplemental and minimum retirement income provided in this Section shall be paid effective April 1 1993 The supplemental retirement income provided in this m Q (7). (C) Effective August 1, 1999, all Participants or beneficiaries of participants who are receiving benefits under the plan prior to September 30, 1993, shall have the monthly amount of retirement income increased by five 5) percent over the gross amount they were receiving in August of 1993. Provided, however, this increase effective August 1, 1999, shall not exceed one hundred dollars ( 100.00) per month. (D) Effective August 1, 1999, all participants with ten (10) or more years of credited service and designated beneficiaries of such participants who receive plan benefits that are based on or derived from the participant's normal retirement income, regardless of the participant's retirement date, shall receive benefits based on a minimum monthly normal retirement income amount of at least five hundred dollars ($500.00) per month. Sec. 33.84. - DEFERRED RETIREMENT OPTION PLAN. (A) Effective January 1 1994 any employee with at least twen (20) but not more than thirty (30) years of continuous service as a member of the system may elect to participate in the Deferred Retirement Option Plan in accordance with this Section. (B) An employee's election to participate in the Deferred Retirement Option Plan must be made in writing and shall become effective thirty (30) days following the date it is received by the board of trustees or on a later date specified by the employee. (C) An employee who elects to participate in the Deferred Retirement Option Plan may participate in such plan for a maximum of sixty (60) continuous months. If upon the effective date of the employee's election there are less than sixty (60) months before the employee attains thiz-ty (30) years of continuous service the emplo ewe may participate in the Deferred Retirement Option Plan only until thirty (3 0) years of service is attained. . (D) An employee's continuous service and accrued benefit under the system shall be determined on the effective date of the employee's election to participate in the Deferred Retirement Option Plan. An employee who elects to participate in the Deferred Retirement Option Plan shall not accrue any additional continuous service or benefits under the system, except for additional benefits provided under the retirement benefit enhancement, if applicable, while participating in the Deferred Retirement Option Plan. No amounts shall be paid to an employee from the system while the employee is a participant in the Deferred Retirement Option Plan. (E) A Deferred Retirement Option Plan account shall be established for each employee who elects to participate in the Deferred Retirement Option Plan in accordance with this Section. During the period of the employee's participation in the Deferred Retirement Option Plan, the 65 on average monthly earnings and continuous service as of the effective date of the employee's election to participate in the Deferred Retirement Option Plan, shall be paid into the =Ion ee's Deferred Retirement Option Plan account. The employee's Deferred Retirement Option Plan account shall be invested by the board of trustees and credited with interest equal to the overall net rate of return on retirement fund assets during the period the employee participates in the Deferred .Retirement Option Plan. Effective July 1, 2001, the board of trustees, in its sole discretion, may select a third -party administrator and establish a separate plan for DROP accounts to be invested by participating employees in accordance with an agreement between the participating employee and the third -party administrator. Employees who are participating in n the DROP as of July 1, 2001, may elect to participate in the self-directed investment pro ram. Employees who elect to participate in the DROP after July 1, 2001, shall be required to participate in the self-directed investment program as a condition of participating in the DROP. The board of trustees may adopt any necessary rules to administer the DROP in accordance with applicable provisions of the Internal Revenue Code and regulations adopted thereunder. (F) At the conclusion of the employee's participation in the Deferred Retirement Option Plan, and as a condition of participating in such plan, the employee will retire and terminate City employment. The employee will thereafter receive a normal retirement benefit calculated in accordance with Subsection 33.76 (B) based on average monthly earnings and continuous service as of the effective date of the employee's election to participate in the Deferred Retirement Option Plan. The employee's Deferred Retirement Option Plan account will thereafter be distributed to the employee in a cash lump sum, unless the employee elects an alternative distribution as described below: (l) Payments in approximately equal monthly, quarterly or annual installments over a period designated by the employee, not to exceed the life expectancy of the employee or the joint life expectancy of the employee and the employee's designated beneficiary. In the event that the employee dies before all installments have been paid, the remaining balance in the employee's Deferred Retirement Option Plan account shall be paid in an immediate cash lump sum to the employee's designated beneficiary. Q The purchase of a nonforfeitable fixed annuitypayable in such form as the gmplo ee m elect. Elections under this Subsection (2) shall be in writing and shall be made in such time or manner as the board of trustees shall determine. If the annuity form selected is not a qualified joint and fifty (50) percent survivor annuity with the employee's spouse as the beneficiary, the annui� pUable to the employee and thereafter to the employee's beneficiary shall be subject to the incidental death benefit rule as described in section 401(a)9g of the Internal Revenue Code and applicable regulations. (G) Notwithstanding the provisions of the foregoing para aph (F), if an employee dies before distribution of the employee's Deferred Retirement Option Plan account commences, the account balance shall be paid to the employee's beneficiary in such optional form as the beneficiary may select. Retirement Option Plan account shall begin as soon as administratively practicable following the employee's termination of employment An gmplo e� e may, in accordance with such procedures as the board of trustees may prescribe elect to defer distribution of the Deferred Retirement Option Plan account until the first daffy month coincident with or following the employee's termination of City employment; provided however, distribution shall be made before the distribution date elected by the employee to the extent necessary to comply with the internal revenue code and regulations thereunder. Any amounts in an employee's Deferred Retirement Option Plan account shall continue to be invested by the board of trustees and shall be credited with the net investment return on the Fund until the balance of the Deferred Retirement Option Plan account is fully distributed to the employee or the employee's beneficiary. (1) In no event shall the provisions of this Section operate so as to allow the distribution of an employee's Deferred Retirement Option Plan account to begin later than April 1 following the later of the calendar year in which the employee terminates gity employment or attains age seventy and one-half (701/2). �J) Notwithstanding any other provision of this Section all distributions from employee Deferred Retirement Option Plan accounts shall conform to applicable provisions of the Internal Revenue Code and regulations issued thereunder. Sec. 33.85. - EARLY RETIREMENT INCENTIVE. (A) Effective January 1 1994 an early retirement incentive shall be provided to employees in accordance with this Section The availability of the early retirement incentive in any calendar year shall be determined by the City. (B) Employees with eighteen (18) and 0 to but not including twenty (20) years of continuous service shall be eligible for the early retirement incentive. In any calendar year in which the City determines that the early retirement incentive will be offered eligible employees shall be given an opportunity to decide within a specified time period (thirty (30) to ninety (90) days) whether they wish to receive the early retirement incentive and retire _ from city employment The City will provide at least sixty (60) days' advance notice to eligible employees of the early retirement incentive offering. (C) Eligible employees who elect to receive the early retirement incentive shall receive two (2) additional years of continuous service under the System and upon receiving such additional continuous service shall immediately retire and terminate Cfty employment. Effective the first pay period after September 1 1999 eligible employees who elect to receive the early retirement incentive shall receive three (3) percent of average monthly earnings for each year of continuous service if the employee qualifies for the twenty(2 -0) yeax (or more) normal retirement benefit. Eligible employees who previously elected the enhanced three and one-half (3.5) percent multiplier pursuant to Section 33.76 (3) and who elect to receive the early retirement incentive 67 earnings for each year of continuous service or Portion thereof, to which the optional enhanced multiplier under Section 33.76 (3) applies; and if the enhanced multiplier is applicable to more than fifty (50) percent of the employee's total continuous service excluding the two (2) additional years provided in this section the employee shall receive three and one-half (3.5) percent of average monthly earnings for each of the two (2) additional years provided in this section The early retirement incentive program shall be voluntary for all eligible employees. The early retirement incentive shall not apply to sick leave vacation or any other accruals or benefits. (D) An employee who elects to receive the early retirement incentive under this Section cannot also participate in the Deferred Retirement Option Plan under Section 33.84. Sec 33.86. — ALLOCATION OF CHPATER 175 PREMIUM TAX REVENUES; RETIREMENT BENEFIT ENHANCEMENT. (A) Effective October 1 1994 the benefits paid to eligible retirees or their beneficiaries shall be adjusted as provided in this Section. For the purpose of this Section, "eligible retirees" are members who retired or terminated employment after September 30 1993 and whose date of hire as a City firefighter was twen -five (25) or more years prior to the benefit adjustment date. The benefitspayable under the system to all eligible retirees or their beneficiaries shall be based on the amount of insurance premium tax revenues received by the City for the preceding plan .year pursuant to F S Chapter 175 A mi n mum benefit increase of one percent per year will be provided regardless of the amount of Premium tax revenues received by the City. (B) Effective September 8 2016 to the extent total annual premium tax revenues received pursuant to Chapter 175 Florida Statutes exceed $1,206,994, the annual one Percent minimum adjustment for retirees will be increased in increments of one-tenth of one percent, based on the actuary's determination that the amount of the excess premium tax revenues is sufficient to fund the benefit increase on an actuarially sound basis. The maximum amount of the total annual benefit increase shall not exceed four (4) percent regardless of the amount of premium tax revenues received by the City. (C) The annual benefit adjustment provided under this Section shall be compounded annually i e the increase shall be based on the benefits received by plan members and beneficiaries at the end of the preceding plan year) The benefits payable under the system to all eligible retirees or their beneficiaries shall be adjusted annually on the anniversary of the retiree's first benefit payment Disability retirees and their beneficiaries are not eligible to receive the retirement benefit enhancement. LD) Notwithstanding any other provision of this section the annual benefit adjustment provided in this section for benefits accrued on or after October 5 2016, shall not commence until one year after a member has separated from City employment. (E) Notwithstanding_an other ther provision of this section effective September 8 2016 all annual premium tax moneys received pursuant to Chapter 175 Florida Statutes up to the amount benefits by reducing the City's annual required contribution to the system, and any annual premium tax moneys received in excess of $1,206,994 shall be used as provided in subsection B above. Sec. 33.87. - INCORPORATION OF STATE LAW BY REFERENCE. F S Sections 175.101 through 175.121 and 175.131 through 175.151 (excise tax on property insurance premiums to be deposited in the Municipal Firefighters' Pension Trust Fund) (excise tax on property insurance premiums to be deposited in Municipal Firefighters' Pension Trust Fund) are hereby incorporated by reference. Sec. 33.88. - DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS. (A) General This Section applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the system to the contrary that would otherwise limit a distributee's election under this Section a distributee may elect at the time and in the manner prescribed by the board to have any portion of an eligible rollover paid directly to an eligible retirement plan specified by the distributee in a direct rollover. (B) Defmitions. (1) Eligible Rollover Distribution. Any distribution of all or any portion of the balance to the credit of the distributee except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially qual periodic payments (not less frequently than annually) made for life (or Life expectancy ) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten (10) years or more any distribution to the extent such distribution is required under Section 401(a)(9) of the Internal Revenue Code,• and the portion of any distribution that is not includable in gross income. (2) Eligible Retirement Plan An eligible retirement plan is an individual retirement account described in Section 408(a) of the Internal Revenue Code an individual retirement annuity described in Section 408(1) of the Internal Revenue Code an annuityplan described in Section 403 a) of the Internal Revenue Code a qualified trust described in Section 401 (a) of the Internal Revenue Code an eligible deferred compensation plan described in Section 457(b) of the Internal Revenue Code which is maintained by an eligible employer described in Section 457(e)(1)(A) of the Internal Revenue Code or an annuity contract described in Section 403 (b) of the Internal Revenue Code that accepts the distributee's eligible rollover distribution. (3) Distributee A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse is a distributee with regard to the interest of the spouse Effective as of January 1 2008 an Employee's or former Employee's non -spouse Beneficiary is a distributee with regard to the interest of the Employee or former Employee. .• specified by the distributee Effective as of January 1 2008 a non -spouse Beneficiarymay make a direct rollover only to an "inherited" individual retirement account as described in Section 408(b) of the Internal Revenue Code If a non -spouse Beneficiary receives a distribution from the Plan the distribution isnot eligible for a 60-day(non-direct) rollover. ,(C) Rollovers or Transfers into the Fund On or after the effective date of this Section, the fund will accept member rollover cash contributions and/or direct cash rollovers of distributions for the Purchase of continuous service or an enhanced multiplier as authorized under the plan as follows: the fund will accept either a direct rollover of an eligible rollover distribution or a member contribution of an eligible rollover distribution from a qualified plan described in Section 401(a) or 403(a) of the Internal Revenue Code from an annuity contract described in Section 403(b) of the Internal Revenue Code or from an elig ble plan under Section 457(b) of the Internal Revenue Code which is maintained by a State political subdivision of a State, or any agency or instrumentality of a State or political subdivision of a State. Sec. 33.89. - SEPARATION FROM EMPLOYMENT FOR MILITARY SERVICE. (A) The years or parts of a year that a member serves in Qualified Military Service of the Armed Forces of the United States the United States Merchant Marine or the United States Coast Guard voluntarily or involuntarily, after separation from city employment shall be added to his years of credited service for all purposes includingvesting_provided that: (1) The member must return to City employment within one year from the earlier of the T date of his military discharge or his release from service. (2) The maximum credit for military service pursuant to this Section shall be five (5) years. (3) In order to qualify for credited service pursuant to this Section the member must have been discharged or released from service under honorable conditions. This Section is intended to meet or exceed the minimum requirements of USERRA. To the extent that this Section does not meet the minimum standards of USERRA as it may be amended from time to time the minimum standards of USERRA shall apply. (B) Death Benefits In the case of a death or disability occurring on or after January 1, 2007 if a participant dies while performing_ Qualified Military Service the survivors of the participant are entitled to any additional benefits (other than benefit accruals relating to the period of Qualified Military Service) provided under the plan as if the participant had resumed and then terminated employment with the City on account of death. (C) Differential Wage Payments For years beginning after December 31 2008 (i) an individual receiving a differential wage payment as defined in Section 3401(h)(2) of the Internal Revenue Code shall be treated as an employee of the employer making the payment, (ii) the differential wage payment shall be treated as compensation and (iii) the plan shall not be treated as failing to meet the requirements of any provision described in Section 414(u)91)0 of the 70 wage payment. Sec. 33.91. - TERMINATION OF THE SYSTEM. If it is determined by the City Commission that this Retirement System be terminated it shall be terminated in accordance with State law as set forth in F S Chapter 175 as the Chapter now exists and as may be amended in the future. Section 3. Severability. The provisions of this Ordinance are declared to be severable and if any section, sentence, clause or phrase of this Ordinance shall for any reason be held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining sections, sentences, clauses, and phrases of this Ordinance but they shall remain in effect, it being the legislative intent that this Ordinance shall stand notwithstanding the invalidity of any part. Section 4. Inclusion in the Code. It is the intention of the City Commission, and it is hereby ordained that this Ordinance shall become and be made a part of the City of Delray Beach City Code; that the sections of this Ordinance may be renumbered or relettered to accomplish such intention; and that the word "Ordinance" shall be changed to "Section" or other appropriate word. Section 5. Effective Date. That this Ordinance shall be effective retroactively to October 1, 2016. PASSED AND ADOPTED in regular session on second and final reading on this the 4th day of October, 2016. Attest: City Clerk First Reading —September & 2016_ Second Reading October 4, 2016 71 MA