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
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Temp. Ord. #2192
March 24, 2010
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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:
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March 24, 2010
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(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
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March 24, 2010
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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
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March 24, 2010
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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
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March 24, 2010
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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
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March 24, 2010
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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
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March 24, 2010
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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:
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NO
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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
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Temp. Ord. #2192
March 24, 2010
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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
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