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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. Coding: Words in strueli threug# type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2216 November 3, 2010 Page 2 of 14 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 Coding: Words in steuek through type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2216 November 3, 2010 Page 3 of 14 repealed/deleted in its entirety and all following subsections re-lettered/renumbered accordingly: MS�zl"WH­ ME low- TMMI JIMM - - - • - Ruoff - OR i Coding: Words in struek type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2216 November 3, 2010 Page 4 of 14 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 Coding: Words in StFUeli thFOUgh type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2216 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 Coding: Words inStFUek oagh type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2216 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 Coding: Words in s#ruel( threugh type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2216 November 3, 2010 Page 7 of 14 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 Coding: Words in struok thMugh type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2216 November 3, 2010 Page 8 of 14 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); Coding: Words in stFU6'( thrOegh type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2216 November 3, 2010 Page 9 of 14 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 Coding: Words in StFuek through type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2216 November 3, 2010 Page 10 of 14 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. Coding: Words in strueli thFOUgh type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2216 November 3, 2010 Page 11 of 14 (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 Coding: Words in StFUOUg# type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2216 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 Coding: Words in s#ruek through type are deletions from existing law; Words in underscored type are additions. Temp. Ord. #2216 November 3, 2010 Page 13 of 14 (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 Coding: Words in StFUel( through type are deletions from existing law; Words in underscored type are additions. 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 Coding: Words in stftrel( thFOUg# type are deletions from existing law; Words in underscored type are additions.