HomeMy WebLinkAboutCity of Tamarac Ordinance O-2010-025Temp. Ord. #2216
November 3, 2010
Page 1 of 14
CITY OF TAMARAC, FLORIDA
ORDINANCE NO. 0-2010- c25
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
TAMARAC, FLORIDA, AMENDING CHAPTER 16, PENSIONS
AND RETIREMENT, ARTICLE VI, FIREFIGHTERS' PENSION
PLAN, PROVIDING FOR COMPLIANCE WITH THE INTERNAL
REVENUE CODE; PROVIDING FOR CODIFICATION; PROVIDING
FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, recent changes to federal laws and regulations require that various
amendments be made to the Plan in order to maintain its status as a qualified plan
under Section 401(a) of the Internal Revenue Code; and
WHEREAS, an amendment to the City Code is necessary to permit such new
obligations and conditions; and
WHEREAS, the trustees of the City of Tamarac Firefighters' Pension Trust Fund
have requested and approved such an amendment as being in the best interests of the
participants and beneficiaries as well as improving the administration of the plan; 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.
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Temp. Ord. #2216
November 3, 2010
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NOW THEREFORE, BE IT ORDAINED by the City Commission of the City of
Tamarac, Florida:
Section 1. 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. Chapter 16, Pensions and Retirement, Article VI, Firefighter
Pension Plan, Division 1, Section 16-401, of the Tamarac Code is hereby amended as
follows:
Average final compensation means one -twelfth of the average annual
compensation, defined as total cash remuneration paid for services of the
city, of the five (5) highest years of service prior to the employee's normal
retirement date, entry into the DROP or prior to the employee's voluntary
discontinuance of participation in the plan. For the purpose of applying
the limitations set forth in Sections 401(a)(17) and 415 of the Internal
Revenue Code, Earnings shall include any elective deferral (as defined in
Code Section 402(g)(3) of the Internal Revenue Code), and any amount
which is contributed or deferred by the employer at the election of the
Member and which is not includible in the gross income of the Member by
reason of Section 125 or 457 of the Internal Revenue Code. For
limitation years beginning on and after January 1, 2001, for the purposes
of applying the limitations described in Subsection (a) of Section 16-506
hereof, compensation paid or made available during such limitation years
shall include elective amounts that are not includible in the gross income
of the Member by reason of Section 132(D(4) of the Internal Revenue
Code.
Section 3. Chapter 16, Pensions and Retirement, Article VI, Firefighter
Pension Plan, Division 1, Section 16-423(b), of the Tamarac Code is hereby
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Temp. Ord. #2216
November 3, 2010
Page 3 of 14
repealed/deleted in its entirety and all following subsections re-lettered/renumbered
accordingly:
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November 3, 2010
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Section 4. Chapter 16, Pensions and Retirement, Article VI, Firefighter
Pension Plan, Division 5, Section 16-506, of the Tamarac Code is hereby amended as
follows:
Sec. 16-506. Maximum benefit am Internal Revenue Code
Compliance.
plan maintained by the employer; and
(a) Maximum Pension.
(1) Notwithstanding any provision of this Plan to the contrary, the
Annual Pension that is accrued by or paid to a participant shall not
exceed the limitations set forth in Section 415 of the Code and
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November 3, 2010
Page 5 of 14
regulations promulgated thereunder, which sections and regulations
are hereby incorporated herein by reference.
(2) For all purposes under this plan, the term limitation year will
mean the calendar year.
(b) Required Beginning Date.
Notwithstanding any other provision of the Plan, payment of a
participant's retirement benefits under the Plan shall commence not later
than the participant's Required Beginning Date, which is defined as the
later of:
-April 1 of the calendar year that next follows the calendar year in
which the participant attains or will attain the age of 70Y2 years; or
-April 1 of the calendar year that next follows the calendar year in
which the participant retires.
(c) Required Minimum Distributions.
(1) Required Beginning Date. The participant's entire interest
will be distributed, or begin to be distributed, to the participant no
later than the participant's Required Beginning Date as defined in
Subsection (b) of this Section 16-506.
(2) Death of participant Before Distributions Begin.
(A) If the participant dies before distributions begin the
participant's entire interest will be distributed, or begin to be
distributed, no later than as follows:
(i) If the participant's surviving spouse is the
participant's sole designated beneficiary, then
distributions to the surviving spouse will begin by
December 31 of the calendar year immediately
following the calendar year in which the participant
died, or by December 31 of the calendar year in which
the participant would have attained age 70Y2, if later.
(ii) If the participant's surviving spouse is not the
participant's sole designated beneficiary, then
distributions to the designated beneficiary will begin
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November 3, 2010
Page 6 of 14
by December 31 of the calendar year immediately
following the calendar year in which the participant
died.
(iii) If there is no designated beneficiary as of
September 30 of the year following the year of the
participant's death, the participant's entire interest will
be distributed by December 31 of the calendar year
containing the fifth anniversary of the participant's
death.
(B) The participant's entire interest shall be distributed as
follows:
(i) participant Survived by Designated Beneficiary.
If the participant dies before the date distribution of
his or her interest begins and there is a designated
beneficiary, the participant's entire interest will be
distributed, beginning no later than the time described
in Subparagraph (2)(A) above, over the life of the
designated beneficiary or over a period certain not
exceeding:
(1) unless the annuity starting date is before
the first distribution calendar year, the life
expectancy of the designated beneficiary
determined using the beneficiary's age as of
the beneficiary's birthday in the calendar year
immediately following the calendar year of the
participant's death, or
if the annuitv startina date is before the
first distribution calendar year, the life
expectancy of the designated beneficiary
determined using the beneficiary's age as of
the beneficiary's birthday in the calendar year
that contains the annuity starting date.
(ii) No Designated Beneficiary. If the participant
dies before the date distributions begin and there is
no designated beneficiary as of September 30 of the
year following the year of the participant's death,
distribution of the participant's entire interest will be
completed by December 31 of the calendar year
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November 3, 2010
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containing the fifth anniversary of the participant's
death.
(C) Death of Surviving Spouse Before Distributions to
Surviving Spouse Begin. In any case in which (i) the
participant dies before the date distribution of his or her
interest begins, (ii) the participant's surviving spouse is the
participant's sole designated beneficiary, and (iii) the
surviving spouse dies before distributions to the surviving
spouse begin, Subparagraphs (2)(A) and 2(B) above shall
apply as though the surviving spouse were the participant.
(3) Requirements For Annuity Distributions That Commence
During participant's Lifetime.
A) Joint Life Annuities Where the Beneficiary Is Not the
participant's Spouse. If the participant's interest is being
distributed in the form of a joint and survivor annuity for the
joint lives of the participant and a nonspousal beneficiary,.
annuity payments to be made on or after the participant's
Required Beginning Date to the designated beneficiary after
the participant's death must not at any time exceed the
applicable percentage of the annuity payment for such
period that would have been payable to the participant using
the table set forth in Q&A-2 of Section 1.401(a)(9)-6T of the
Treasury regulations. If the form of distribution combines a
joint and survivor annuity for the joint lives of the participant
and a nonspousal beneficiary and a period certain anngRy,
the requirement in the preceding sentence will apply to
annuity payments to be made to the designated beneficiary
after the expiration of the period certain.
(B) Period Certain Annuities. Unless the participant's
spouse is the sole designated beneficiary and the form of
distribution is a period certain and no life annuity, the period
certain for an annuity distribution commencing during the
participant's lifetime may not exceed the applicable
distribution period for the participant under the Uniform
Lifetime Table set forth in Section 1.401(a)(9)-9 of the
Treasury regulations for the calendar year that contains the
annuity starting date. If the annuity starting date precedes
the year in which the participant reaches age 70. the
applicable
distribution period
for the participant
is the
distribution
period for age
70
under the
Uniform
Lifetime
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November 3, 2010
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Table set forth in Section 1.401(a)(9)-9 of the Treasury
regulations plus the excess of 70 over the age of the
participant as of the participant's birthday in the year that
contains the annuity starting date. If the participant's spouse
is the participant's sole designated beneficiary and the form
of distribution is a period certain and no life annuity, the
period certain may not exceed the longer of the participant's
applicable distribution period, as determined under this
Subparagraph (3)(B), or the joint life and last survivor
expectancy of the participant and the participant's spouse as
determined under the Joint and Last Survivor Table set forth
in Section 1.401(a)(9)-9 of the Treasury regulations, using
the participant's and spouse's attained ages as of the
participant's and spouse's birthdays in the calendar year that
contains the annuity starting date.
(4) Form of Distribution. Unless the participant's interest is
distributed in the form of an annuity purchased from an insurance
company or in a single sum on or before the Required Beginning
Date, as of the first distribution calendar year distributions will be
made in accordance with Subparagraphs (4)(A), (4)(B) and (4)(C)
below. If the participant's interest is distributed in the form of an
annuity purchased from an insurance company, distributions
thereunder will be made in accordance with the requirements of
Section 401(a)(9) of the Code and the Treasury regulations. Any
part of the participant's interest which is in the form of an individual
account described in Section 414(kk) of the Code will be distributed
in a manner satisfying the requirements of Section 401(a)(9) of the
Code and the Treasury regulations that apply to individual
accounts.
(A) General Annuity Requirements. If the participant's
interest is paid in the form of annuity distributions under the
Plan payments under the annuity will satisfy the following
requirements:
(i) the annuity distributions will be paid in periodic
payments made at intervals not longer than one year;
(ii) the distribution period will be over a life (or
lives) or over a period certain, not longer than the
distribution period described in Paragraphs 2 or 3
above, whichever is applicable, of this Subsection (c);
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November 3, 2010
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iii) once payments have begun over a period
certain, the period certain will not be changed even if
the period certain is shorter than the maximum
permitted;
(iv) payments will either be non -increasing or
increase only as follows:
(1) by an annual percentage increase that
does not exceed the annual percentage
increase in a cost -of -living index that is based
on prices of all items and issued by the Bureau
of Labor Statistics;
(II) to the extent of the reduction in the
amount of the participant's payments to provide
for a survivor benefit upon death, but only if the
beneficiary whose life was being used to
determine the distribution period dies or is no
longer the participant's beneficiary pursuant to
a qualified domestic relations order within the
meaning of Section 414(p) of the Code;
(III) to provide cash refunds of employee
contributions upon the participant's death: or
(IV) to pay increased benefits that result
from a Plan amendment.
(B) Amount Required to be Distributed by Required
Beginning Date. The amount that must be distributed on or
before the participant's Required Beginning Date (or, if the
participant dies before distributions begin the date
distributions are required to begin under Subparagraph
(2)(A)(i) or (2)(A)(ii) whichever is applicable) is the payment
that is required for one payment interval. The second
payment need not be made until the end of the next payment
interval even if that payment interval ends in the next
calendar year. Payment intervals are the periods for which
Payments are received, e.q., bi-monthiv. monthly. semi-
annually, or annually. All of the participant's benefit accruals
as of the last day of the first distribution calendar year will be
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November 3, 2010
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included in the calculation of the amount of the annuity
payments for payment intervals ending on or after the
participant's Required Beginning Date.
(C) Additional Accruals After First Distribution Calendar
Year. Any additional benefits accruing to the participant in a
calendar year after the first distribution calendar year will be
distributed beginning with the first payment interval ending in
the calendar year immediately following the calendar year in
which such amount accrues.
(5) For purposes of this Subsection (c), distributions are
considered to begin on the participant's Required Beginning Date.
If annuity payments irrevocably commence to the participant (or to
the participant's Surviving Spouse) before the participant's
Required Beginning Date (or, if to the participant's Surviving
Spouse, before the date distributions are required to begin in
accordance with Subparagraph (2)(A) above), the date distributions
are considered to begin is the date distributions actually
commence.
(6) Definitions.
(A) Designated beneficiary. The individual who is
designated as the beneficiary under the Plan and is the
designated beneficiary under Section 401(a)(9) of the Code
and Section 1.401(a)(9)-1, Q&A-4, of the Treasury
regulations.
B) Distribution calendar vear. A calendar year for which
a minimum distribution is required. For distributions
beginning before the participant's death, the first distribution
calendar year is the calendar year immediately preceding
the calendar year which contains the participant's Required
Beginning Date. For distributions beginning after the
participant's death, the first distribution calendar year is the
calendar year in which distributions are required to begin
pursuant to Paragraph (2) of this Subsection (c).
(C) Life expectancy. Life expectancy as computed by use
of the Single Life Table in Section 1.401(a)(9)-9 of the
Treasury regulations.
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November 3, 2010
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(d) (1) Notwithstanding any provision of the Plan 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
Administrator, to have any portion of an eligible rollover distribution paid
directly to an eligible retirement plan specified by the distributee in a direct
rollover.
(2) Definitions
The following definitions apply to this Section:
(A) Eligible rollover distribution: An eligible rollover
distribution is 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:
(i) any distribution that is one of a series of
substantially equal periodic payments (not less
frequently than annually) made for the 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 10 years or more:
(ii) any distribution to the extent such distribution
is required under Section 401(a)(9) of the Code;
(iii) the portion of any distribution that is a hardship
distribution described in Section 401(k)(2)(B)(i)(IV) of
the Code: and
(iv) the portion of any distribution that is not
includible in gross income (determined without regard
to the exclusion for net unrealized appreciation with
respect to employer securities), provided that a
portion of a distribution shall not fail to be an eligible
rollover distribution merely because the portion
consists of after-tax Employee contributions which are
not includible in gross income. However, such portion
may be transferred only to an individual retirement
account or annuity described in Section 408(a) or U
of the Code, or to a qualified defined contribution plan
described in Section 401(a) or 403(a) of the Code that
agrees to separately account for amounts so
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November 3, 2010
Page 12 of 14
transferred, including separately accounting for the
portion of such distribution which is includible in gross
income and the portion of such distribution which is
not so includible.
(3) Eligible retirement plan: An eligible retirement plan is an
individual retirement account described in Section 408(a) of the
Code, an individual retirement annuity described in Section 408(b)
of the Code an annuity, plan described in Section 403(a) of the
Code, an annuity contract described in Section 403(b) of the Code,
a qualified trust described in Section 401 (a) of the Code, an
eligible plan under Section 457(b) of the 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 and
which agrees to separately account for amounts transferred into
such plan from this Plan, or, with respect to distributions on or after
January 1 2008 a Roth IRA (subject to the limitations of Code
Section 408A(c)(3)) that accepts the distributee's eligible rollover
distribution.
(4) Distributee: A distributee includes an Employee or former
Employee. In addition, the Employee's or former Employee's
surviving spouse and the Employee's or former Employee's spouse
or former spouse who is the alternate payee under a qualified
domestic relations order, as defined in Section 414(p) of the Code,
are distributees with regard to the interest of the spouse or former
spouse. Furthermore, effective January 1, 2007, a surviving
designated beneficiary as defined in Section 401(a)(9)(E) of the
Code who is not the surviving spouse and who elects a direct
rollover to an individual retirement account described in Section
408(a) of the Code or an individual retirement annuity described in
Section 408(b) of the Code shall be considered a distributee.
(5) Direct rollover: A direct rollover is a payment by the Plan to
the eligible retirement plan specified by the distributee.
(e) Notwithstanding any other provision of this Plan, the maximum
amount of any mandatory distribution, as defined in Section 401(a)(31) of
the Code, payable under the Plan shall be $1000.
F
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November 3, 2010
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(f) Compensation Limitations Under 401(a)(17):
In addition to other applicable limitations set forth in the Plan, and
notwithstanding any other provision of the Plan to the contrary, the annual
compensation of each participant taken into account under the Plan shall
not exceed the EGTRRA annual compensation limit for limitation years
beginning after December 31, 2001. The EGTRRA annual compensation
limit is $200,000, as adjusted by the Commissioner for increases in the
cost of living in accordance with Section 401(a)(17)(B) of the Code. The
cost -of -living adjustment in effect for a calendar year applies to any period,
not exceeding 12 months, over which Compensation is determined
(determination period) beginning in such calendar year. If a determination
period consists of fewer than 12 months, the EGTRRA annual
compensation limit will be multiplied by a fraction, the numerator of which
is the number of months in the determination period, and the denominator
of which is 12.
Any reference in the Plan to the limitation under Section 401 (a)(17)
of the Code shall mean the EGTRRA annual compensation limit set forth
in this provision.
(g) At no time prior to the satisfaction of all liabilities under the plan
with respect to members and their spouses or beneficiaries, shall any part
of the corpus or income of the fund be used for or diverted to any purpose
other than for their exclusive benefit.
Section 5. 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 the City of Tamarac, Florida, and the word "Ordinance" may changed to
"Section", "Article" or such other word or phrase in order to accomplish such intention.
Section 6. All Ordinances or parts of Ordinances, and all Resolutions or parts
of Resolutions in conflict herewith are hereby repealed to the extent of such conflict.
Section 7. 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
or applications of this Ordinance that can be given affect without the invalid provision or
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Temp. Ord. #2216
November 3, 2010
Page 14 of 14
application, and to this end the provisions of this Ordinance are declared to be
severable.
Section 8. This Ordinance shall become effective upon passage.
PASSED, FIRST READING, this 10 day of November, 2010.
PASSED, SECOND READING, this & day of 6jZjM' , 2010.
ATTEST:
PETER M: J. RICM'ARDSON, CRM, CMC
CITY CLERK
I HEREBY CERTIFY THAT I HAVE
APPROVED THIS ORDINANCE
AS TO FORM.
i
�SAMUEL S. GOREN
CITY ATTORNEY
RECORD OF COMMISSION VOTE:
1ST READING
MAYOR TALABISCO yes
DIST 1:
COMM. BUSHNELL_yes
DIST 2:
COMM. GOMEZ yes_
DIST 3:
COMM. GLASSER_yes_
DIST 4:
V/M DRESSLER_yes
RECORD OF COMMISSION VOTE:
2ND READING
MAYOR TALABISCO n.
DIST 1: V/M BUSHNELL
DIST 2: COMM. GOMEZ_4�
DIST 3: COMM. GLASSER-�''
DIST 4: COMM. DRESSLER Y w--
1
7
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Words in underscored type are additions.