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85-93 ORDINANCB NO. 65-93 ~ I 1 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH,-FLORIDA, AMENDING CHAPTER 33, ^POLICE • AND FIRE DEPARTMENTS", SUBHEADING ^PENSIONS^, OF THE CODE OF ORDINANCES OF .THE CITY OF DELRAY BEACH, FLORIDA, SY CREATING A NEW SECTION 33.685, ^DEFERRED RETIREMENT OPTION PLAN^; CREATING A NEW SECTION 33.687, ^EARLY RETIREMENT INCENTIVE^; CREATING A NEW SECTION 33.689, "RETIREMENT BENEFIT ENHANCEMENT^; PROVIDING A VALIDITY CLAUSE: AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Delray Beach, in conjunction with the Board of Trustees of the City of Delray Beach Police and Fire- ' fighter Retirement System, desires to provide additional benefits I and retirement options for members of the City of Delray Beach Police and Firefighter Retirement System; and WfiEREAS, the Board of Trustees of the City of Delray Beac+` Police and Firefighter Retirement System, and the members of said system, have indicated their acceptance and approval of the enhanced benefits and retirement options contained herein; and WHEREAS, the Board of Trustees of the City oP Delray Beach Police and Firefighter Retirement System and a majority of the i members of said system have approved the placement of insurance premium tax revenues received by the City pursuant to Chapters 175 and 185, Florida Statutes, in the existing pension fund for the exclusive use of plan members and beneficiarie6 and not for any other purposes NOW, THEREFORE, BS IT ORDAINED BY THE CITY COMMISSION OF THS CITY OF DELRAY BEACH, FIARIDA, AS FOLIAW3: Section 1. That anew Section 33.685, "Deferred Retirement option Plan", is created to read as follows: '~ ser.*ion 33.685._ Deferred Retirement Ontaon Plan. I --- (A) Effective January 1, 1994, nny employee with at least ~ twenty (20) but not more than thirty (30) years o! 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 employae~s election to participate in the Deferred i i ' Retirement Option Plan must be made in writing and shall become effectlva thirty (30) days following the date it is received by the Soard of Trustees, or on a later date specified by the employee. (C) An employee who elects to participate in the Deferred i Retirement Option Plan may participate in such plan for a maximum ' of sixty continuous (60) months. If upon the effective date of the employees election there are less than sixty (60) months F before the employee attains thirty (30) years of continuous i service, the employee may participate in the Deferred Retirement Option Plan only until thirty (30) years of service is attained. ~ (D) An amployee~e aontinuous service and accrued benefit under the system shall be determined on the effective data of the amployaa~s election to participate in the Delarred Retirement ~ option Plan. An employee who elects to participate in the ' l ~ Deferred Retirement Option Plan shall not accrue any additional continuous service or benefits under the System, exaspt for j additional benefits provided under the retirement benefit enhancement, if applicable, while participating in the Deferred ~ 2 ORD. NO. 65-93 .. ~ ~ •: ~ Retirement Option Plan. No amounts shall be paid to an employee ' i ! from the system while the employee is a participant in the ,; Deferred Retirement Option Plan. ' (E) 1- 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 employees participation in the Deferred Retirement Option Plan, the employea~s normal retirement benefit, calculated in accordance with Section 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 .Deterred Retirement option Plan, shall be paid into the amployea~s ~ Deferred Retirement Option Plan account. Tha employee's Deferred Retirement Option Plan account shall ba invested by the Board of Trustees and credited with interest equal to the overall net rate of return on Retirement Fund asaeta during the period the employee participates in the Deferred Retirement Option Plan. ~ (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 Section ' 33.62(B) based on average monthly earnings and continuous service i as of the effective date of the employees election to participate in the Deterred Retirement Option Plan. The employee's Deferred Retirement Option Plan account will 3 ORD. N0. 85-93 .. t • thereafter be distributed to the employee in a cash lump sum, • I unless the employee elects an alternative distribution ~as I described below. ' (1) Payments in approximately equal quarterly or i annual installments over a period designated by the employee, • not to exceed the life expectancy of the employes 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.immediata cash lump sum to the employee's designated • beneficiary. • (Z) The purchase of a non-forfeitable fixed annuity ,' payable in such form as the employee may elect. Slactions under this subparagraph (2) shall ba in writing and shall be made in ~ such time or manner ae the Hoard o! Trustees shall determine. • If the annuity form selected is not a qualified joint and fifty i percent survivor annuity with the employee's spouse as the beneficiary, the annuity payable to the employee and thereafter to the employee's benafiaiary shall be subject to the incidental death benelit rule as described in Section 401(a)9G of the i Internal Revenue Code and applicable regulations. ~ (G) Notwithstanding the provisions oP the foregoing i ~' paragraph (F), i! an employee diss before distribution of the ' ~ employee's Deferred Retirement Option Plan account commences, • G ORD. N0. 85-93 the account balance shall be paid to the employee's beneficiary in such optional fora as the beneficiary say select. - (N) Except -as otherwise provided in this Section, i distribution of an employee's Deferred Ratireaent Option Plan account shall begin as soon as administratively practicable following the employee's termination of employment. An employee i may, in accordance with such procedures as the Board of Trustees ~ may prescribe, elect to defer distribution of the Deferred 1 , Retirement option Plan account unt11 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 aaounts in an employee's Deferred i i 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 o! this Section i operate so as to allow the distribution oP an employee's Deferred ' t 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 ' i ! (70~y) . 5 ORD. N0. 85-93 I a , (J) Notwithstanding any other provision of this Section, all distributions from employee Deferred Retirement Option Plan accounts shall conform to applicable provisions o! the Internal i Revenue Code and regulations .issued thereunder. I i (K) Notwithstanding any provision of this Section to the contrary, an employee or beneficiary receiving distributions from ~ a Deferred Retirement option Plan account may elect, at the time and in the manner prescribed by the Board of Trustees, to have ' any portion o! an eligible rollover distribution paid directly ' from the Deferred Retirement Option Plan account to an eligible ' retirement plan specified by the employee/beneficiary in a direct ' rollover. The Following definitions apply to the terms used in ~. ' this paragraph: • ' (1) "Eligible rollover distribution• means any f distribution of all or any portion of the balance to the credit of the distributee under the Deferred Retirement option Plan, ~ i i except that an eligible rollover distribution does not include ~ any distribution that ie one of a varies of substantially equal ~ periodic payments (not lass frequently than annually) made for the life (or life expectancy) of the distributee or the joint 1 lives (or joint life expectancies) of the distributee and the distributae's designated beneficiary, or for a specified period ~ oP ten (l0) years or more, any distribution to the extent such ~ distribution is required under Section 401(A)9 oP the Internal ~ Revenue Code, and the portion of any distribution that is not includible in gross income. 8 ORD. NO. 85-93 (2) "Eligible retirement plan" means 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(x) of the Internal Revenue Code, or a qualified trust described in Section 4o1(a) o! the internal Revenue Code, that accepts the dietributee's eligible rollover distribution. However, in the case of an eligible rollover I distribution to the surviving spouse, an eligible retirement plan • is an individual retirement account or individual retirement annuity. (3) "Distributes" means an employee or former employee. In addition the employee's or former employee's surviving spouse is a distributes with regard to the interest oP the spouse. ' ~ (4) "Direct rollover" means a payment by the Deferred Retirement option plan to the eligible retirement plan specified ~ by the distributes. The direct rollover may be accomplished by ~ any reasonable means determined by the Board of Trustees. • Section 2. That a new Section 33.687, "Early Retirement Incentive", is created to read as follows: i ~ gection 33.687. Early Retirement Incentive. (A) Effective January 1, 1994 an early retirement incentive shall be provided to employees in accordance with this section. i ~ The availability of the early retirement incentive in any calendar year shall be determined by the City. 7 ORD. N0. 85-93 i (18) or more 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 (3D to 90 days) whether they wish to receive the early retirement incentive and retire Prom 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 City employment. Tha early retirement incentive program shall be voluntary for all eligible employees. ~ (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. Section 3. That a new section 33.689, "Retirement Benefit Enhancement", is .created to read as follows: Section 33.689. Retirement Benefit Enhancement. Effective October i, 1994, the benefits paid to eligible retirees 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 ORD. NO. 85-93 8 S ~ re as a y po ca o e - ~ or more years prior to the benefit adjustment date. The benefits payable under the System to all eligible retirees shall be adjusted each October 1 based on the amount of insurance premium tax revenues received by the City for the preceding plan year pursuant to Chapters 175 and 185, Florida Statutes. A minimum benefit increase of one percent (lt) per year will be provided, regardless of the amount of premium tax revenues received by the ~ City. To the extent total annual premium tax revenues exceed ' $504,922, the annual one percent (lt) minimum adjustment will be increased in increments of one-tenth o! one percent, based on the actuary's determination that the amount oP 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 percent (4 t), regardless of the amount of premium tax revenues received by the City. The annual benefit adjustment provided under this section shall be compounded nnnuelly (i.e., the increase shall be based on the benefits received by plan members at the end of the preceding plan year). ' @gction a. That should any section or provision of this ' ordinance or any portion thereol, any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid, i such decision shall operate to invalidate the remainder hereof. i Section 5. That this ordinance shall become effective ten (10) days after its passage on second and linal reading. i y ORD. N0. 85-93 i ` PASSED AND ADOPTED in regular session on second and final reading this 25th op January 199~y~- I i ~w/ MAYOR ATTEST: /~ City Jerk T~_ First Readinq January 11, 1994 Seco»d Reading Jannary 25, 1994 i i i I 10 ORD. N0. BS-93 ORDINANCES No. ~5 FJ e~ 4/ ' l~~.eJ ~ ~ U~ ' FIRST READING: COMMISSION ACTION: Ao~'~ n ~ /l Q D le0 . ~J ~ ,~ n~r~ ~mooi~~,o cx, ~n.:,~ ST ~„ „ „ll.' SECOND READING: COMMISSION ACTION: NOTES: bg MEMORANDUM TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER ~~~ SUBJECT: AGENDA ITEM # ~~ - MEETING OF DECEMBER 14, 1993 ORDINANCE NO. 85-93 DATE: December 10, 1993 This is the first reading of an ordinance amending Chapter 33, "Police and Fire Departments", Subheading "Pensions", of the Code of Ordinances by creating new Sections 33.685, "Deferred Retirement Option Plan"; 33.687, "Early Retirement Incentive", and 33.689, "Retirement Benefit Enhancement". This proposed ordinance creates the Deferred Retirement Option Plan, the Early Retirement Incentive and the Retirement Enhancement in accordance with the Agreement recently approved by the City Commission. The Agreement has been submitted to the Pension Board, the Police Benevolent Association, the International Association of Fire Fighters, .Major Rick Lincoln, Assistant Fire Chief Wigderson and City staff for review. As of this date, we have not received any comments adverse to the ordinance. Should comments be received requesting changes, the City Attorney will bring an amended ordinance to you at Tuesday evening's meeting. Recommend approval of Ordinance No. 85-93 on first reading. If passed public hearing January 11, 1994. ial'/l93 Oue~ - -l ~9~ [R4 OF DELRli4 BEII[H CITY ATTORNEY'S O~~'~~ FAC,S'II~tiLE ~ x/278 ~~~ bLLRAY IIEACFI, FLORIDA 33444 Writer's Direct Line (407) 243-7091 MEMORANDUM DATE: December 9 1993 TO: City Commission FROM: Susan A. Ruby, City Attorney SUBJECT: Police and Fire Fighter Pension Ordinance Amendment Attached please find Ordinance No. 85-93 which amends Chapter 33, Police and Fire Department, "Pensions", of the City's Code of Ordinances. The Ordinance creates the Deferred Retirement Option Plan, the Early Retirement Incentive, and the Retirement Benefit Enhancement in accordance with the Agreement approved by the City Commission recently. We have submitted the Agreement to the Pension Board, Steve Cypen, Sergeant Glen Goss of the PBA, Bill Adams of IAFF, Major Rick Lincoln and Mike Wigderson and City staff. As of the date of this letter, we have not received any comments adverse to the ordinance. If we receive comments requesting changes, we may be bringing an amended ordinance to you at the City Commission meeting. P}~ase calif you have any questions. FF ,,~'~ SAR~~~ ~/ -- Attachment P&F.sar MEMORANDUM TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER o?S SUBJECT: AGENDA ITEM # ID B - MEETING OF JANUARY 1, 1994 ORDINANCE NO. 85-93 DATE: JANUARY 21, 1994 This is the second reading of an ordinance amending Chapter 33, "Police and Fire Departments", Subheading "Pensions", of the Code of Ordinances by creating new Sections 33.685, "Deferred Retirement Option Plan"; 33.687, "Early Retirement Incentive", and 33.689, "Retirement Benefit Enhancement". The ordinance has been revised by the City Attorney to reflect comments made by various persons to the original draft. The creation of the Deferred Retirement Option Plan, the Early Retirement Incentive and the Retirement Benefit Enhancement is in accordance with the Agreement recently approved by the City Commission. At the January 11, 1994 regular meeting, Ordinance No. 85-93 passed on first reading by a 5 to 0 vote. Recommend approval of Ordinance No. 85-93 on second and final reading. c.GGf~ ~(-a TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER ~I SUBJECT: AGENDA ITEM # Ia ~ - MEETING OF JANUARY 11, 1994 ORDINANCE NO. 85-93 DATE: JANUARY 7, 1994 This is first reading of an ordinance amending Chapter 33, "Police and Fire Departments", Subheading "Pensions", of the Code of Ordinances by creating new Sections 33.685, "Deferred Retirement Option Plan"; 33.687, "Early Retirement Incentive", and 33.689, "Retirement Benefit Enhancement". The ordinance has been revised by the City Attorney to reflect comments made by various persons to the original draft. The creation of the Deferred Retirement Option Plan, the Early Retirement Incentive and the Retirement Benefit Enhancement is in accordance with the Agreement recently approved by the City Commission. Recommend approval of Ordinance No. 85-93 on first reading. If passed public hearing January 25, 1994. G~ / 5-0 ~ '' ' 1~ i` ~ F ~k~4 ~> ~ ~r~p ,.. ~._ - Writ~r`•~~ ~Dir~ot Lira• (407) 143-7091 MEMORANDUM Date: January 6, 1994 To: City Commissioners From: Susan A. Ruby, City Attorney Subject: Police and Fire Pension Ordinance Attached please find Ordinance No. 85-93 which was revised on 12\27\93 to reflect comments made by various persons to the original draft. This Ordinance is before you now for consideration on first reading. If you have any questions please call. By copy of this memorandum to David Harden, City Manager and Alison MacGregor Harty, City Clerk, our office requests that this draft of Ordinance No. 85-93 be placed on the Cit Commission Regular Agenda of January 11, 1993. ~~ SAR: _ Attachments ORDINANCE NO. 85-93 AN ORDINANCE OF THE CITY COM.'~ISSIOt~ OF THE CITY OF DEI.RAY BEACH, FLORIDA, Al'IENDTNG CIiAPTER 33, "POLICE AND FIRE DEPARTMEI•ITS" , SUBHF,ADINC "PENSIONS" , OF THE CODE OF ORDINANCES OF THE C1`I'Y OF DELRAY BEACH, FLORIDA, F3Y CREATING A NI;W SECTION 33.685, "DEFERRED RETIREMENT OPTION PLAN"; CREATING A NEt9 SECTION 33.687, "EARLY RETIREMENT INCENTIVE"; CREATItG A NEW SECTION 33.689, "RETIREMENT BENEFIT ENHANCEtdENT"; PROVXDING A VALIDITY CLAUSE; AND PROVXDING AN EFFECTIVE DATE. WHEREAS, the City of Delray Beach, in conjunction with the Board of Trustees of the Ci.t.y of Delray Beach Police and Fire-- fighter Retirement. Syste~r, ~ie~yr~_~~, to 1~~rovide <-~dditionnl benefit and retirement options for r,en~l~ers oi, the City of Delray Beach Police and Firefighter Retirement System; and WHEREAS, the I3aard of Trustees of the City of Delray Beach Police and Firefighter Retirement System, and the members of said system, ~~ indicated their acceptance and approval. of the enhanced benefits and retirement options contained herein; and WHEREAS, the Board of Trustees of the City of Delray Beach Police and Firefighter Retirement System and a majority of the members of said system have approved the placement oP insurance premium tax revenues received by .the City pursuant to Chapters 175 and 185, Florida Statutes, in the existing pension Fund for the exclus~.ve use of plan members and beneficiaries and not for any other purpose; NOW, THEREFORE, BE TT GRDA~1~'ED BY T:iE CITY COifiMISSION OF THE CITY 01: DELRAY EEAC F}_ORTD~:, ::~ : OL~JA'S: Section Z. That a near Secticn 33.685, "Deferred Retirement Option Plan", is created to rEad as follows: Section 3.~ . b85. Deferred Re~ixement_ Op=t? on _Pl~n._ (A) Effective January 1, 1994, any employee with at least twenty (20) but rot ;;~ora than thirty (30) years of continuous service as a membez- of the System zr,ay elect to participate in tiic~ Uaferred Retirement Option Plan in accordance with this section. (~3} An employee's election to participate in the Deferred lletirenic.nt_ Option Plan must be made in writing and shall become effect:iv~~ tnirr.}~ ( 3 ~~ j days I~ol lowing the date it is received by the ~oaZ~c; c~ ;'~~ur=t_t~c~•, oz- cr. ~~ later date specified by the employee. (C) An employee wl~o elects to participate in the Deferred Retirement Option Plan may participate in such plan for a maximum of sixty continuous (60) months. If upon the effective date of the empla~e'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 (30) years of service is attained. (D) An employee's continuous service and accrued bene~it under the System shall be determined on the effeCt~.ve 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 tre System, except for additional benefit= provides ;:;:uer the re~irement benefit. enhancemen~, :.~ applicab~e, wi7iie 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 a_n 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 Section 33.62(B} based on average monthly earnings and continuous service as of the ef`ect~ve c3~t.~: of the employees 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 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 OptS.on Plan. (F) At tho conclusion of the employees 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 Section 33.62 (B) based on average monthly earnings and continuous service as of the effective date of the employee's election tc participate in the Deferred Retirement Option Plan. The employee's Deferred Retirement Option Plan account will 3 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 quarterly or analual installments over a period designated by the employee, nofi. 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 in&tallments have been paid, the remaining balance in the employee's Deferred Retirement Option Plan account: sh~~il r~c~ ~>air. in an immediate cash lump sum to the employee's uesic~riaif_u beneficiary. (2) The purchase of a non-forfeitable fixed annuity payable in such form as the employee may elect. Elections under this subpa~craph {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 a.s not a qualified joint and fifty percent survivor annuity with the employee's spouse as the beneficiary, the annuity payable to the employes 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 Cade and applicable regulations. (G} Notwithstanding the provisions of the foregoing paragraph (F), iP an employee dies before distribution o~ the employee's Deferred Retirement option Flan account commences, 4 the account balance shall be paid to the employee's beneficiary in such optional form as the beneficiary may select. (H) 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 elocted by the employee to the extent necessary to comply with the Internal Revenue Code and regulations thereunder. Any amounts in an employee's Deferred Retiremen~~t~ptian 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 fuXXy distributed to the employee or the employee's beneficiary. (I) In na 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 (~o~) . 5 {J~ Notwithstanding any other provie~ion of this ~eotion, all distributions from employee Deferred Retirement Option Plan accounts shall conform to applicable provisions of the Internal Revenue Code and regulations issued thereunder. (K) Notwithstanding any provision of this Section to the contrary, an employee or beneficiary receiving distributions from a Deferred ketirement Option Plan account may ezeCt, at the time and in the manner prescribed by the Board of Trustees, to have any pUrLian of an eligible rollover distribution paid directly from the Uefered Re~irement Option Plan account to an eligible retirement plan specified by the employee./beneficiary in A direc'~. rollover. The following definitions apply to the terms used in this paragraph: (1} "Eligible rollover distribution" means any distributii-ot~ of all or any portion of the balance to the credit ._ of the distributes under the Deferred Retirement Option Plan, except that an eligible rollover distribution does not include any distribution that is one of a series of substantia~.ly equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributes or the joint lives (or joint life expectancies} of the distributes 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 nct includible ~n cross income. 6 {2~ "Eligible retirement plan" means an individual retirement account described in Section 408(x) of the Snternal Revenue Code, an individual retirement annuity described in Section 408(b) of tha Internal Revenue Code, an annuity plan described in Section 403{a) of the Internal Revenue Code, or a qualified trust described in Section 4ol{a) oP the Internal Revenue Code, that accepts the distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving spouse, an eligible retirement plan is an individual retirement account: or individua~. retirement annuity. (3) "Distributee" means 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 spouses-,, -~ (4) "Direct rollover" means a payment by the Deferred Retirement Optian Plan to the eligible retirement plan specified by the distributee. The direct rollover may be accomplished by any reasonable means determined by the Board of Trustees. Section 2. That a new Section 33.687, "Early Retirement Incentive", is created to read as follows: Sectio 3.687. Early Retirement Xpcentive. (A~ Effective January 1, 1.994 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. 7 (B) Employees with eighteen (18) or more 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 (30 to 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 ~.ncentive offering. (C) Eligible em~~loyees 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. The Qarly retirement incentive program shall be voluntary for .all eligible employees. (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. ~eCtion 3. That a new section 33.689, "Retirement Benefit Enhancement", is created to read as follows: section _33.689. ~2e~~zgr~t~nt Benefit Enhancement. Effective October 1, 1994, the beneFits paid to eligible retirees 5ha11 be adjusted as provided in this Section. ~'or the purpose of this Section, "eligible retirees" are r~;embers who retired or terminated employment after September 30, 1993 and whose date of 8 hire as a City police officer or firefighter was twenty-five (251 or more years prior to the benefit adjustment date. The benefits payable under the System to all eligible retirees shall be adjusted each October 1 based on the amount of insurance premium tax revenues received by the City for the preceding plan year pursuant to Chapters 175 and 1.85, Florida Statutes. A minimum benefit increase of one percent (1$) per year will be provided, regardless of the amount of premium tax revenues received by the City. To the extent total annual premium tax revenues exceed $504,922, the an;iual one percent lid) ninimurl adjustment will be increased in increments oP one tenth of one percent, rased on the actuary's determination that the amount of the excess premium tax revenues is sufficient to fund the benefit increase an an actuara.alxy sound basks. The maximum amount of the total annual benefit increase shall not exceed four percent (4~), regardless \~ of the amount of premium tax revenues received by the City. The annual benefit adjustment provided under this Section shall ba , compounded annually (i.e., the increase shall be based on the benefits received by plan members at the end of the preceding plan yeax). Section 4. That should any s©ction or provision of this ordinance or any portion thereof, any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid, such decision shall operate to invalidate the remainder. hereof. Section 5. That this ordinance shall beccme e~fective ten (10) days after its passage or, second and Final reading. 0 PASSED AND ADOP'T'ED in regular session on second and ~a.nal reading this of , 1993. MAYOR A`1"PEST: -- --- - C try VC 1 ark i~ first. ~zeading Second Reading 2I272blhhp ~_ ~~;~ 1~