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HomeMy WebLinkAboutCity of Tamarac Ordinance O-2010-0101 Temp. Ord. #2192 March 24, 2010 Page 1 of 9 OCITY OF TAMARAC, FLORIDA ORDINANCE NO. 0-2010- %J AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA; AMENDING CHAPTER 16, PENSION AND RETIREMENT, ARTICLE II, DIVISION 2, SECTION 16-56, MEMBERS, TO CHANGE ELECTED, APPOINTED AND ALTERNATE TRUSTEE TERM LENGTHS; AMENDING CHAPTER 16, PENSION AND RETIREMENT, ARTICLE III, DIVISION 1, SECTION 16-223, OPTIONAL BENEFITS, TO PROVIDE FOR A DEFERRED RETIREMENT OPTION PLAN (DROP); AMENDING CHAPTER 16, PENSION AND RETIREMENT, ARTICLE III, DIVISION 4, SECTION 16-239, PRERETIREMENT DEATH BENEFITS FOR VESTED PARTICIPANTS, TO REMOVE SPOUSAL CONSENT AS A PREREQUISITE FOR DETERMINING BENEFICIARY; REPEALING SECTION 16-241, SPOUSAL CONSENT; PROVIDING FOR CODIFICATION; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City and the Pension Board of Trustees of the Employees Pension Trust Fund wish to amend the Trustees' terms of office; and WHEREAS, the City of Tamarac and the Federation of Public and Private Employees, have agreed through the collective bargaining process to establish a Deferred Retirement Option Plan (DROP) for the general employees of the City without increasing City contributions to the Fund; and WHEREAS, the parties are, by State of Florida Statutes, required to ratify such collectively bargained agreements; and WHEREAS, on October 15, 2008, the FPE Union membership ratified the collectively bargained agreement; and Coding: Words in StFU& thFOU type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2192 March 24, 2010 Page 2of9 WHEREAS, the City and the Pension Board of Trustees of the Employees Pension Trust wish to provide members with the flexibility to designate whomever they wish as the beneficiary to any pre -retirement death benefit afforded under the Trust Fund; and WHEREAS, the City of Tamarac Employees Pension Trust Fund Board of Trustees approved the proposed changes on March 18, 2010; and WHEREAS, the City Commission has received and reviewed an actuarial impact statement related to these changes attached as Exhibit A; and WHEREAS, the City Commission of the City of Tamarac has deemed it to be in the best interest of the citizens of the City of Tamarac to amend the Plan to reflect these changes. NOW THEREFORE, BE IT ORDAINED by the City Commission of the City of Tamarac, Florida: SECTION 1: That the foregoing whereas clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part of this Ordinance. All exhibits attached hereto are incorporated herein and made a specific part of this Ordinance. SECTION 2: That Section 16.56, Members, of Chapter 16, Article III, Division 2, of the City of Tamarac Code of Ordinances, be and is hereby amended as follows: Sec 16.56. Members (a) The plan shall be administered by five (5) trustees and three (3) alternate trustees, as follows: Coding: Words in StFUMUgh type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2192 March 24, 2010 Page 3 of 9 (b) Elected trustees shall serve three -yeas four-year terms_, unless the tF stee The city clerk shall conduct the elections by secret ballot prior to the expiration of the trustees' term. (c) A vacancy shall occur whenever a trustee resigns, is removed by the appointing official, is no longer eligible or qualified to serve as a trustee, dies or becomes incapacitated. The vacancy in the office of an appointed trustee shall be filled by a new appointment being made by the city official who appointed the departing trustee to serve a new four year term. The vacancy in the office of an elected trustee shall be filled by the alternate trustee elected by the plan participants. The alternate trustee shall serve out the unexpired term of the departed trustee. An election shall be held to replace the alternate trustee. The alternate trustee so elected shall serve out the unexpired term of the prior alternate trustee. SECTION 3: That Section 16-223 of Chapter 16, Article III, Division 1, of the City of Tamarac Code of Ordinances, be and is hereby amended as follows: Sec. 16-223 Optional benefits. Optional benefits are: (1) Single life annuity. Any participant may file an election to receive monthly payments for life. (2) Any other actuarially equivalent benefit approved by the board of trustees. 3 Deferred Retirement Option Plan (DROP). A DROP as defined in this plan, is established and shall be administered by the Board of Trustees of the City of Tamarac Employees Pension Plan. Partici ation shall be subject to the following terms and conditions: a. Eli ibilit . An "eligible participant" of the City of Tamarac Employees' Pension Plan which is defined as an individual current) on full-time work status may elect to participate in the DROP on the first da of any of the first 24 consecutive months following first attaining eligibility for an unreduced normal retirement benefit. Eligible participants entering the DROP after the 24th month after first attaining eligibility for an unreduced normal retirement benefit shall have DROP eligibility reduced by one 1 month for each month in which ent is delayed. Participants who on the date this ordinance takes effect are 21 months or more past first attaining eligibility for an unreduced normal retirement benefit must Coding: Words in s#rUelthFeu type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2192 March 24, 2010 Page 4 of 9 elect to participate in the DROP within 90 days of adoption of this Ordinance in order to participate in the DROP for 36 months, if they enter the DROP thereafter, DROP participation shall be reduced by one 1 month for each month by which entry is delayed. b. Written Election. An eligible participant electing to enter the DROP must complete and execute such forms as may be required by the City and the Board of Trustees and must elect any optional form of benefit not less than sixty 60 days prior toentering into the DROP. The forms shall include but not be limited to an irrevocable letter of resign effective no later than the conclusion of the maximum period of DROP participation. Election of and entry into the DROP is irrevocable once DROP participation begins. There is no minimum period of DROP participation. The maximum period of DROP participation is thirty-six 36 months. C. Limitation/disqualification for other benefits. An eligible participant may to participate -in the DROP only once. After -elect commencement of participation in DROP a participant shall no longer earn accrue or purchase additional service credits towards retirement benefits and shall not be eligible for disability retirement benefits re - retirement death benefits or later enhancements to the City of Tamarac Employees' Pension Plan. d. Cessation or reduction of contributions. Upon the effective date of an eligible participant's participation in DROP all contributions b and on behalf of the participant to the Plan shall be discontinued. e. Benefit calculation. For all plan purposes, service and vesting credits of an eligible participant electing DROP shall be fixed as of the effective date of commencement of DROP participation. Any service after entry into DROP shall not be used for calculation or determination of benefits payable by the Plan. The averse final compensation of a participant, as defined in this Plan shall be determined as of the effective date of commencement of DROP participation and any subsequent earnings shall not be used for calculation or determination of benefits payable by the Plan. f. Benefit Credits to DROP account. 1. Upon ent into DROP the monthly retirement benefit which would have been payable had the participant ceased employment and commenced receiving a normal retirement benefit shall be credited to the participant's DROP account Coding: Words in StFUGk through type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2192 March 24, 2010 Page 5 of 9 on a monthly basis. No benefit credits from the Plan shall be made to a DROP account for more than the maximum period of DROP partici ation. 2. No participant shall receive a credit to the participant's DROP account until the required DROP forms have been submitted including the participant's irrevocable letter of resignation, election of any optional benefit and choice of account earnings method. DROP account earnings. Each DROP account shall be eligible to be credited or debited with investment returns in accordance with one of the following methods as elected by the participant at the time of enrolling in the DROP and such election is irrevocable: 1. The DROP account shall be debited or credited with investment returns as of each Janua 1 equal to the actual net earnings of the Pension Plan for the prior Plan year as determined by the actua using the standard IRS formula for purposes of reporting the annual investment return on Schedule B Form 5500 or its successor form as o licable whether or not such form is actually required for this plan, less the DROP's administrative fee subject to confirmation through the annual -independent audit. In the case of a partial ear's pafttjpation, returns shall be prorated to achieve the applicable rate of return set forth in this section on an annualized basis, and shall be compounded annual) • or 2. The DROP account shall be debited or credited with investment returns as actually realized less the DROP's administrative fee in any of the self -directed options selected by the participant from those made available by the Board of Trustees. Participants in the self -directed option, by their selection of that option, agree to hold the City, the Pension Plan and the Board of Trustees harmless from an and all claims arising out of the self -directed option. h. Maximum period of participation. An eligible participant may elect to participate in DROP for a maximum of -thirty six 36 months subject to Section 16-223 3 a. At the conclusion of the maximum period of DROP participation, retirement benefit payments to the DROP account shall cease and the participant's termination from em to ment with the Coding: Words in StF� type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2192 March 24, 2010 Page 6 of 9 City shall become effective pursuant to the irrevocable letter of resignation. i. Administrative Fee for DROP account. An annual administrative fee shall be charged on each Janua 1 for the administration and operation of a participant's DROP account at the rate of one half of one percent 0.5% . In the case of a participant who enters the DROP or separates from service after January 1 the administrative fee shall be paid on a prorated basis for the partial year of participation. i. Distribution of DROP account. 1. Upon termination of a participant's City employment, whether by retirement resignation, discharge or death no further benefit credits shall be made to the DROP account. 2. All retirement benefits paid after termination of employment shall be made directly to the participant, or in the case of death in accordance with any survivorship option which the participant elected. I Within sixty 60 days following the end of the month in which the participant terminated employment, the balance of the participant's DROP account shall be _paid to the participant as a lump sum or by rollover to another qualified retirement plan, or by a combination of both. The garticipant must elect the method of payment within fifteen 15 days following the end of DROP participation and the election shall be irrevocable. Failure to elect a payment within the prescribed time shall be deemed an election to receive payment of the entire DROP account balance in cash less required income tax withholding. 4. Notwithstanding the option selected by the participant, the Board of Trustees reserves the right to accelerate payments to comply with the minimum distribution provisions of the Internal Revenue Code or to defer payments to comply with the maximum benefit provisions of the Internal Revenue Code. k. Disability of a DROP partici ant. If the City determines that a DROP participant has become unable to render useful and efficient service to the City due to service or non -service related disability and terminates the employment of the participant for this reason the Coding: Words in S*FUek thFOUgh type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2192 March 24, 2010 Page 7 of 9 participant shall be deemed to have retired on a service retirement and DROP participation shall end. Distribution of the DROP account balance shall be made in accordance with the provisions and requirements of this section in the manner elected„ by the participant. I. Death of a DROP participant If a DROP participant dies survivorship benefits if any, shall be paid in accordance with the participant's benefit elections upon entry into DROP. The balance in the DROP account shall be distributed in accordance with the distribution methodology elected by the participant, or if no such election has been made the participant's designated beneficiary may elect the method of a ment in accordance with the time and election requirements of this section. M. A DROP participant, while in the DROP remains a cit employee and is not guaranteed continued employment during DROP participation. A DROP participantexcept for his or her ension status is in all other respects subject to the same obligations, discipline, rights, privileges and opportunities as other city employees. n. All forms and notices used in the administration of the DROP shall be prepared through joint cooperation between the City of Tamarac and the Board of Trustees. SECTION 4: That Section 16-239 of Chapter 16, Article III, Division 4, of the City of Tamarac Code of Ordinances, be and is hereby amended as follows: Sec. 16-239. Preretirement death benefits for vested participants. (a) Any participant, whether or not still in active employment, who has a nonforfeitable (vested) right to any portion of the accrued benefit, and who dies prior to the commencement of benefits, shall have a survivor benefit payable on his or her behalf. The survivor benefit shall be payable to the participant's ,a diffeFent designated beneficiary_ isdesignated -ythe paFtieiyant. if the deeeasc be paid to his eF heF designated benefiewaFy. (b) The amount of the survivor benefit shall be equal to fifty (50) percent of the actuarially equivalent single sum value of the participant's vested accrued benefit as of his or her date of death or, if the equivalent single sum value of the amount the speuse OF ^*"^� designated beneficiary could have received had the Coding: Words in stFUel( thFeU type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2192 March 24, 2010 Page 8 of 9 participant retired on the day of death and elected a one hundred (100) percent joint and survivor annuity, whichever is greater. If this single sum amount is less than five thousand dollar's ($5,000.00), it shall be paid in a lump sum to the spouser designated beneficiary, as the case may be, as soon as is practicable following the participant's death. If the single sum amount exceeds five thousand dollars ($5,000.00), the benefit shall be paid in the form of an immediate monthly survivor annuity unless the designated beneficiary and the board agree to an alternative actuarially equivalent form of benefit. SECTION 5: That Section 16-241 of Chapter 16, Article III, Division 4, of the City of Tamarac Code of Ordinances, be and is hereby amended/repealed as follows: vi' - - 7EIV-2 - NO M - - - �- - SECTION 6: It is the intention of the City Commission and it is hereby ordained that the provisions of this Ordinance shall become and be made part of the Code Of Ordinances of theCity of Tamarac, Florida, and that the Sections of this Ordinance may be renumbered or relettered, and the word "Ordinance" may be changed to "Section", "Article" or such other word or phrase in order to accomplish such intention. SECTION 7: All Ordinances or parts of Ordinances in conflict herewith are hereby repealed to the extent of such conflict. SECTION 8: If any provision of this Ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions Coding: Words in StFUGk thFeugh type are deletions from existing law; Words in underscored type are additions. 1 Temp. Ord. #2192 March 24, 2010 Page 9 of 9 or applications of this Ordinance that can be given affect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. SECTION 9: This Ordinance shall become effective on May 1, 2010. PASSED, FIRST READING this day of ,n , 2010. PASSED, SECOND READING this 64 day of , 2010. Beth Talabisco, MAYOR ECORD OF COMMISSION V TE: 1st Reading ?V�MARION SWA EN , CMC MAYOR TALABISCO CITY CLERK DIST 1: COMM. BUSHNELL " DIST 2: COMM ATKINS-GRA I HEREBY CERTIFY that I have approved this ORDINANCE as to form. (I_J� ,� SAMUEL S. GOREN CITY ATTORNEY DIST 3: COMM. GLASSER DIST 4: COMM. DRESSLER RECORD OF COMMISSION VOTE: 2nd Reading MAYOR TALABISCO DIST 1: COMM. BUSHNfELL /ill DIST 2: COMM ATKINS-GRAD DIST 3: COMM. GLASSER DIST 4: COMM. DRESSLER Coding: Words in struck thFau type are deletions from existing law; Words in underscored type are additions.