[Amended 5-21-1991 by Ord. No. 91-04; 10-14-1997 by Ord. No. 97-21; 10-27-1998 by Ord. No.
98-11; 1-9-2001 by Ord. No. 2000-05; 11-12-2002 by Ord. No. 2002-06; 3-8-2004 by Ord. No. 2003-16; 12-12-2006 by Ord. No. 2006-10; 1-11-2011 by Ord. No.
2010-11]
A.
Definitions.
(1)
ACCUMULATED CONTRIBUTIONS
ACTUARIAL EQUIVALENT
AVERAGE FINAL COMPENSATION
BENEFICIARY
BOARD
CITY
CODE
CREDITED SERVICE
FIREFIGHTER
FUND
MEMBER
PLAN YEAR
RETIREE
RETIREMENT
SALARY
SPOUSE
SYSTEM
As used herein, unless otherwise defined or required by the context,
the following words and phrases shall have the meanings indicated:
A member's own contributions without interest. For those
members who purchase credited service with interest or at no cost
to the system, any payment representing interest and any required
actuarially calculated payments for the purchase of such credited
service shall be included in accumulated contributions.
A benefit or amount of equal value, based upon the RP 2000
Combined Healthy Unisex Mortality Table and an interest rate equal
to the investment return assumption set forth in the last actuarial
valuation report approved by the board. This definition may only be
amended by the City pursuant to the recommendation of the Board using
the assumptions adopted by the Board with the advice of the plan's
actuary, such that actuarial assumptions are not subject to City discretion.
[Amended 10-8-2013 by Ord. No. 2013-04; 1-12-2016 by Ord. No. 2015-08; 4-9-2019 by Ord. No. 2019-02]
One-twelfth of the average salary of the five best years
of the last 10 years of credited service prior to retirement, termination,
or death, or the career average as a full-time firefighter, whichever
is greater. A year shall be 12 consecutive months.
The person or persons entitled to receive benefits hereunder
at the death of a member who has or have been designated in writing
by the member and filed with the Board. If no such designation is
in effect, or if no person so designated is living, at the time of
death of the member, the beneficiary shall be the estate of the member.
The Board of Trustees, which shall administer and manage
the system herein provided and serve as trustees of the fund.
City of South Pasadena, Florida.
The Internal Revenue Code of 1986, as amended from time to
time.
The total number of years and fractional parts of years of
service as a firefighter with member contributions, when required,
omitting intervening years or fractional parts of years when such
member was not employed by the City as a firefighter. A member may
voluntarily leave his accumulated contributions in the fund for a
period of five years after leaving the employ of the Fire Department,
pending the possibility of being reemployed as a firefighter, without
losing credit for the time that he was a member of the system. If
a vested member leaves the employ of the Fire Department, his accumulated
contributions will be returned only upon his written request. If a
member who is not vested is not reemployed as a firefighter with the
Fire Department within five years, his accumulated contributions,
if $1,000 or less, shall be returned. If a member who is not vested
is not reemployed within five years, his accumulated contributions,
if more than $1,000, will be returned only upon the written request
of the member and upon completion of a written election to receive
a cash lump sum or to roll over the lump sum amount on forms designated
by the Board. Upon return of a member's accumulated contributions,
all of his rights and benefits under the system are forfeited and
terminated. Upon any reemployment, a firefighter shall not receive
credit for the years and fractional parts of years of service for
which he has withdrawn his accumulated contributions from the fund,
unless the firefighter repays into the fund the contributions he has
withdrawn, with interest, as determined by the Board, within 90 days
after his reemployment.
[Amended 10-8-2013 by Ord. No. 2013-04; 1-12-2016 by Ord. No. 2015-08]
The years or fractional parts of a year that a member performs
"qualified military service" consisting of voluntary or involuntary
"service in the uniformed services" as defined in the Uniformed Services
Employment and Reemployment Rights Act (USERRA) (P.L. 103-353), after
separation from employment as a firefighter with the City to perform
training or service, shall be added to his years of credited service
for all purposes, including vesting, provided that:
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(1)
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The member is entitled to reemployment under the provisions
of USERRA.
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(2)
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The member returns to his employment as a firefighter within
one year from the earlier of the date of his military discharge or
his release from active service, unless otherwise required by USERRA.
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(3)
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The maximum credit for military service pursuant to this definition
shall be five years.
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(4)
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This definition is intended to satisfy the minimum requirements
of USERRA. To the extent that this definition does not meet the minimum
standards of USERRA, as it may be amended from time to time, the minimum
standards shall apply.
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In the event a member dies on or after January 1, 2007, while
performing USERRA qualified military service, the beneficiaries of
the member are entitled to any benefits (other than benefit accruals
relating to the period of qualified military service) as if the member
had resumed employment and then died while employed.
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Beginning January 1, 2009, to the extent required by Section
414(u)(12) of the code, an individual receiving differential wage
payments [as defined under Section 3401(h)(2) of the code] from an
employer shall be treated as employed by that employer, and the differential
wage payment shall be treated as compensation for purposes of applying
the limits on annual additions under Section 415(c) of the code. This
provision shall be applied to all similarly situated individuals in
a reasonably equivalent manner.
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Leave conversions of unused accrued paid time off shall not
be permitted to be applied toward the accrual of credited service
either during each plan year of a member's employment with the
City or in the plan year in which the member terminates employment.
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An actively employed full-time person employed by the City,
including his initial probationary employment period, who is certified
as a firefighter as a condition of employment in accordance with the
provisions of § 633.408, Florida Statutes, and whose duty
it is to extinguish fires, to protect life and to protect property.
The term includes all certified, supervisory, and command personnel
whose duties include, in whole or in part, the supervision, training,
guidance, and management responsibilities of full-time firefighters,
part-time firefighters, or auxiliary firefighters, but does not include
part-time firefighters or auxiliary firefighters.
[Amended 1-12-2016 by Ord. No. 2015-08]
The trust fund established herein as part of the system.
An actively employed firefighter who fulfills the prescribed
membership requirements. Benefit improvements which, in the past,
have been provided for by amendments to the system adopted by City
ordinance, and any benefit improvements which might be made in the
future shall apply prospectively and shall not apply to members who
terminate employment or who retire prior to the effective date of
any ordinance adopting such benefit improvements, unless such ordinance
specifically provides to the contrary.
The twelve-month period beginning October 1 and ending September
30 of the following year.
A member who has entered retirement status.
A member's separation from City employment with eligibility
for immediate receipt of benefits under the system, or entry into
the deferred retirement option plan.
Remuneration for a forty-hour week plus any amount paid under
the firefighters' supplemental compensation program for nonshift
work. For shift work, "salary" means fixed monthly remuneration calculated
on the hourly rate times the number of hours in regularly scheduled
shifts in any month, plus any amount paid under the firefighters'
supplemental compensation program. Salary includes workers' compensation.
Salary shall not include overtime, acting pay, call back pay, inspectors'
pay or lump sum payments of accrued sick time, accrued compensatory
time and/or accrued vacation. Compensation in excess of the limitations
set forth in Section 401(a)(17) of the Code as of the first day of
the plan year shall be disregarded for any purpose, including employee
contributions or any benefit calculations. The annual compensation
of each member taken into account in determining benefits or employee
contributions for any plan year beginning on or after January 1, 2002,
may not exceed $200,000, as adjusted for cost-of-living increases
in accordance with Code Section 401(a)(17)(B). "Compensation" means
compensation during the fiscal year. The cost-of-living adjustment
in effect for a calendar year applies to annual compensation for the
determination period that begins with or within such calendar year.
If the determination period consists of fewer than 12 months, the
annual compensation limit is an amount equal to the otherwise applicable
annual compensation limit multiplied by a fraction, the numerator
of which is the number of months in the short determination period,
and the denominator of which is 12. If the compensation for any prior
determination period is taken into account in determining a member's
contributions or benefits for the current plan year, the compensation
for such prior determination period is subject to the applicable annual
compensation limit in effect for that prior period. The limitation
on compensation for an "eligible employee" shall not be less than
the amount which was allowed to be taken into account hereunder as
in effect on July 1, 1993. "Eligible employee" is an individual who
was a member before the first plan year beginning after December 31,
1995.
The member's or retiree's spouse under applicable
law at the time benefits become payable.
[Amended 1-12-2016 by Ord. No. 2015-08]
The City of South Pasadena firefighters' Retirement
System as contained herein and all amendments thereto.
(2)
Masculine gender. The masculine gender, where used herein, unless
the context specifically requires otherwise, shall include both the
feminine and masculine genders.
B.
Membership.
(1)
Conditions of eligibility. All firefighters as of January 9, 2001,
and all future new firefighters, shall become members of this system
as a condition of employment.
(2)
Designation of beneficiary. Each firefighter shall complete a form
prescribed by the Board designating a beneficiary or beneficiaries.
C.
Board of Trustees.
(1)
The sole and exclusive administration of and responsibility for the
proper operation of the system and for making effective the provisions
of this section is hereby vested in a Board of Trustees. The Board
is hereby designated as the plan administrator. The Board shall consist
of five Trustees, two of whom, unless otherwise prohibited by law,
shall be legal residents of the City, who shall be appointed by the
South Pasadena City Commission, and two of whom shall be members of
the system, who shall be elected by a majority of the firefighters
who are members of the system. The fifth Trustee shall be chosen by
a majority of the previous four Trustees as provided for herein, and
such person's name shall be submitted to the South Pasadena City
Commission. Upon receipt of the fifth person's name, the South
Pasadena City Commission shall, as a ministerial duty, appoint such
person to the Board of Trustees as its fifth Trustee. The fifth Trustee
shall have the same rights as each of the other four Trustees appointed
or elected as herein provided and shall serve a two-year term unless
he sooner vacates the office. Each resident Trustee shall serve as
Trustee for a period of two years, unless he sooner vacates the office
or is sooner replaced by the South Pasadena City Commission at whose
pleasure he shall serve. Each member Trustee shall serve as Trustee
for a period of two years, unless he sooner leaves the employment
of the City as a firefighter or otherwise vacates his office as Trustee,
whereupon a successor shall be chosen in the same manner as the departing
Trustee. Each Trustee may succeed himself in office. DROP participants
can be elected as but not vote for elected Trustees. The Board shall
establish and administer the nominating and election procedures for
each election. The Board shall meet at least quarterly each year.
The Board shall be a legal entity with, in addition to other powers
and responsibilities contained herein, the power to bring and defend
lawsuits of every kind, nature, and description.
(2)
The Trustees shall, by a majority vote, elect a Chairman and a Secretary.
The Secretary of the Board shall keep a complete minute book of the
actions, proceedings, or hearings of the Board. The Trustees shall
not receive any compensation as such, but may receive expenses and
per diem as provided by law.
(3)
Each Trustee shall be entitled to one vote on the Board. Three affirmative
votes shall be necessary for any decision by the Trustees at any meeting
of the Board. A Trustee shall have the right to abstain from voting
as the result of a conflict of interest provided that Trustee complies
with the provisions of § 112.3143, Florida Statutes.
(4)
The Board shall engage such actuarial, accounting, legal, and other
services as shall be required to transact the business of the system.
The compensation of all persons engaged by the Board and all other
expenses of the Board necessary for the operation of the system shall
be paid from the fund at such rates and in such amounts as the Board
shall agree. In the event the Board chooses to use the City's
legal counsel, actuary or other professional, technical or other advisors,
it shall do so only under terms and conditions acceptable to the Board.
(5)
The duties and responsibilities of the Board shall include, but not
necessarily be limited to, the following:
(a)
To construe the provisions of the system and determine all questions
arising thereunder.
(b)
To determine all questions relating to eligibility and membership.
(c)
To determine and certify the amount of all retirement allowances
or other benefits hereunder.
(d)
To establish uniform rules and procedures to be followed for
administrative purposes, benefit applications and all matters required
to administer the system.
(e)
To distribute to members, at regular intervals, information
concerning the system.
(f)
To receive and process all applications for benefits.
(g)
To authorize all payments whatsoever from the fund, and to notify
the disbursing agent, in writing, of approved benefit payments and
other expenditures arising through operation of the system and fund.
(h)
To have performed actuarial studies and valuations, at least
as often as required by law, and make recommendations regarding any
and all changes in the provisions of the system.
(i)
To perform such other duties as are required to prudently administer
the system.
D.
Finances and fund management.
(1)
As part of the system, there exists the fund, into which shall be
deposited all of the contributions and assets whatsoever attributable
to the system, including the assets of the prior Firefighters'
Retirement System.
(2)
The actual custody and supervision of the fund (and assets thereof)
shall be vested in the Board. Payment of benefits and disbursements
from the fund shall be made by the disbursing agent but only upon
written authorization from the Board.
(3)
All funds of the Firefighters' Retirement System may be deposited
by the Board with the Finance Director of the City, acting in a ministerial
capacity only, who shall be liable in the same manner and to the same
extent as he is liable for the safekeeping of funds for the City.
However, any funds so deposited with the Finance Director of the City
shall be kept in a separate fund by the Finance Director or clearly
identified as such funds of the Firefighters' Retirement System.
In lieu thereof, the Board shall deposit the funds of the Firefighters'
Retirement System in a qualified public depository as defined in § 280.02,
Florida Statutes, which depository with regard to such funds shall
conform to and be bound by all of the provisions of Chapter 280, Florida
Statutes. In order to fulfill its investment responsibilities as set
forth herein, the Board may retain the services of a custodian bank,
an investment advisor registered under the Investment Advisors Act
of 1940 or otherwise exempt from such required registration, an insurance
company, or a combination of these, for the purposes of investment
decisions and management. Such investment manager shall have discretion,
subject to any guidelines as prescribed by the Board, in the investment
of all fund assets.
(4)
All funds and securities of the system may be commingled in the fund,
provided that accurate records are maintained at all times reflecting
the financial composition of the fund, including accurate current
accounts and entries as regards the following:
(a)
Current amounts of accumulated contributions of members on both
an individual and aggregate account basis; and
(b)
Receipts and disbursements; and
(c)
Benefit payments; and
(d)
Current amounts clearly reflecting all monies, funds and assets
whatsoever attributable to contributions and deposits from the City;
and
(e)
All interest, dividends and gains (or losses) whatsoever; and
(f)
Such other entries as may be properly required so as to reflect
a clear and complete financial report of the fund.
(5)
An audit shall be performed annually by a certified public accountant
for the most recent fiscal year of the system showing a detailed listing
of assets and a statement of all income and disbursements during the
year. Such income and disbursements must be reconciled with the assets
at the beginning and end of the year. Such report shall reflect a
complete evaluation of assets on both a cost and market basis, as
well as other items normally included in a certified audit.
(6)
The Board shall have the following investment powers and authority:
(a)
The Board shall be vested with full legal title to said fund,
subject, however, and in any event to the authority and power of the
South Pasadena City Commission to amend or terminate this fund, provided
that no amendment or fund termination shall ever result in the use
of any assets of this fund except for the payment of regular expenses
and benefits under this system, except as otherwise provided herein.
All contributions from time to time paid into the fund, and the income
thereof, without distinction between principal and income, shall be
held and administered by the Board or its agent in the fund and the
Board shall not be required to segregate or invest separately any
portion of the fund.
(b)
All monies paid into or held in the fund shall be invested and
reinvested by the Board and the investment of all or any part of such
funds shall be limited to:
[1]
Annuity and life insurance contracts with life insurance companies
in amounts sufficient to provide, in whole or in part, the benefits
to which all of the members in the fund shall be entitled under the
provisions of this system and pay the initial and subsequent premium
thereon.
[2]
Time or savings accounts of a national bank, a state bank insured
by the Bank Insurance Fund or a savings/building and loan association
insured by the Savings Association Insurance Fund which is administered
by the Federal Deposit Insurance Corporation or a state or federal
chartered credit union whose share accounts are insured by the National
Credit Union Share Insurance Fund.
[3]
Obligations of the United States or obligations guaranteed as
to principal and interest by the government of the United States or
by an agency of the government of the United States.
[4]
Bonds issued by the State of Israel.
[5]
Stocks, commingled funds administered by national or state banks,
mutual funds and bonds or other evidences of indebtedness, provided
that:
[a]
Except as provided in Subsection D(6)(b)[5][b], all individually
held securities and all securities in a commingled or mutual fund
must be issued or guaranteed by a corporation organized under the
laws of the United States, any state or organized territory of the
United States, or the District of Columbia.
[b]
Up to 25% of the assets of the fund at market value may be invested
in foreign securities.
[c]
The Board shall not invest more than 5% of its assets in the
common stock, capital stock, or convertible securities of any one
issuing company; nor shall the aggregate investment in any one issuing
company exceed 5% of the outstanding capital stock of that company;
nor shall the aggregate of its investments in common stock, capital
stock and convertible securities at market exceed 65% of the assets
of the fund.
[6]
Real estate, provided the Board shall not invest more than 10%
at cost in real property or real estate.
(c)
At least once every three (3) years, and more often as determined
by the Board, the Board shall retain a professionally qualified independent
consultant, as defined in § 175.071, Florida Statutes, to
evaluate the performance of all current investment managers and make
recommendations regarding the retention of all such investment managers.
These recommendations shall be considered by the Board at its next
regularly scheduled meeting.
(d)
The Board may retain in cash and keep unproductive of income
such amount of the fund as it may deem advisable, having regard for
the cash requirements of the system.
(e)
Neither the Board nor any Trustee shall be liable for the making,
retention or sale of any investment or reinvestment made as herein
provided, nor for any loss or diminishment of the fund, except that
due to his or its own negligence, willful misconduct or lack of good
faith.
(f)
The Board may cause any investment in securities held by it
to be registered in or transferred into its name as Trustee or into
the name of such nominee as it may direct, or it may retain them unregistered
and in form permitting transferability, but the books and records
shall at all times show that all investments are part of the fund.
(g)
The Board is empowered, but is not required, to vote upon any
stocks, bonds, or securities of any corporation, association, or trust
and to give general or specific proxies or powers of attorney with
or without power of substitution; to participate in mergers, reorganizations,
recapitalizations, consolidations, and similar transactions with respect
to such securities; to deposit such stock or other securities in any
voting trust or any protective or like committee with the Trustees
or with depositories designated thereby; to amortize or fail to amortize
any part or all of the premium or discount resulting from the acquisition
or disposition of assets; and generally to exercise any of the powers
of an owner with respect to stocks, bonds, or other investments comprising
the fund which it may deem to be to the best interest of the fund
to exercise.
(h)
The Board shall not be required to make any inventory or appraisal
or report to any court, nor to secure any order of court for the exercise
of any power contained herein.
(i)
Where any action which the Board is required to take or any
duty or function which it is required to perform either under the
terms herein or under the general law applicable to it as Trustee
under this section can reasonably be taken or performed only after
receipt by it from a member, the City, or any other entity, of specific
information, certification, direction or instructions, the Board shall
be free of liability in failing to take such action or perform such
duty or function until such information, certification, direction
or instruction has been received by it.
(j)
Any overpayments or underpayments from the fund to a member,
retiree or beneficiary caused by errors of computation shall be adjusted
with interest at a rate per annum approved by the Board in such a
manner that the actuarial equivalent of the benefit to which the member,
retiree or beneficiary was correctly entitled shall be paid. Overpayments
shall be charged against payments next succeeding the correction or
collected in another manner if prudent. Underpayments shall be made
up from the fund in a prudent manner.
(k)
The Board shall sustain no liability whatsoever for the sufficiency
of the fund to meet the payments and benefits provided for herein.
(l)
In any application to or proceeding or action in the courts,
only the Board shall be a necessary party, and no member or other
person having an interest in the fund shall be entitled to any notice
or service of process. Any judgment entered in such a proceeding or
action shall be conclusive upon all persons.
(m)
Any of the foregoing powers and functions reposed in the Board
may be performed or carried out by the Board through duly authorized
agents, provided that the Board at all times maintains continuous
supervision over the acts of any such agent; provided, further, that
legal title to said fund shall always remain in the Board.
E.
Contributions.
(1)
Member contributions.
(a)
Amount. Each member of the system shall be required to make
regular contributions to the fund in the amount of 6% of his salary.
member contributions withheld by the City on behalf of the member
shall be deposited with the Board immediately after each pay period
The contributions made by each member to the fund shall be designated
as employer contributions pursuant to § 414(h) of the Code.
Such designation is contingent upon the contributions being excluded
from the members' gross income for federal income tax purposes.
For all other purposes of the system, such contributions shall be
considered to be member contributions.
(b)
Method. Such contributions shall be made by payroll deduction.
(2)
State contributions. Any monies received or receivable by reason
of laws of the State of Florida, for the express purpose of funding
and paying for retirement benefits for firefighters of the City, shall
be deposited in the fund comprising part of this system immediately
and under no circumstances more than five days after receipt by the
City.
(3)
City contributions. So long as this system is in effect, the City shall make quarterly contributions to the fund in an amount equal to the required City contribution, as shown by the applicable actuarial valuation of the system, determined in accordance with Part VII of Chapter 112, Florida Statues, and the applicable regulations. The total cost for any year shall be defined as the total normal cost plus the additional amount sufficient to amortize the unfunded past service liability, as provided in Part VII of Chapter 112, Florida Statutes.
(4)
Other. Private donations, gifts and contributions may be deposited
to the fund. Accretions to the fund by way of interest, dividends,
or otherwise and all other sources of income now or hereafter authorized
by law shall be deposited to the fund.
F.
Benefit amounts and eligibility.
(1)
Normal retirement age and date. A member's normal retirement
age is the earlier of the attainment of age 52 and the completion
of 25 years of credited service or attainment of age 55 and the completion
of 10 years of credited service. Each member shall become 100% vested
in his accrued benefit at normal retirement age. A member's normal
retirement date shall be the first day of the month coincident with
or next following the date the member retires from the City after
attaining normal retirement age.
[Amended 1-12-2016 by Ord. No. 2015-08]
(2)
Normal retirement benefit. A member retiring hereunder on or after
his normal retirement date shall receive a monthly benefit which shall
commence on the first day of the month next following his retirement
and be continued thereafter during member's lifetime, ceasing
upon death, but with 120 monthly payments guaranteed in any event.
The monthly retirement benefit shall equal 3% of average final compensation
for each year of credited service.
(3)
Early retirement date. A member may retire on his early retirement
date which shall be the first day of any month coincident with or
next following the attainment of age 50 and the completion of 10 years
of credited service. Early retirement under the system is retirement
from employment with the City on or after the early retirement date
and prior to the normal retirement date.
(4)
Early retirement benefit. A member retiring hereunder on his early
retirement date may receive either a deferred or an immediate monthly
retirement benefit payable in the same form as for normal retirement
as follows:
(a)
A deferred monthly retirement benefit which shall commence on
what would have been his normal retirement date had he continued employment
as a firefighter and shall be continued on the first day of each month
thereafter. The amount of each such deferred monthly retirement benefit
shall be determined in the same manner as for retirement on his normal
retirement date except that credited service and average final compensation
shall be determined as of his early retirement date; or
(b)
An immediate monthly retirement benefit which shall commence on his early retirement date and shall be continued on the first day of each month thereafter. The benefit payable shall be as determined in Subsection F(4)(a) above, which is actuarially reduced from the amount to which he would have been entitled had he retired on the date which would have been his normal retirement date had he continued employment as a firefighter and with the same number of years of credited service as at the time his benefits commence and based on his average final compensation at that date. In no event shall the early retirement reduction exceed 3% for each year by which the member's age at retirement precedes the member's normal retirement age.
(5)
Required distribution date. The member's benefit under this
subsection must begin to be distributed to the member no later than
April 1 of the calendar year following the later of the calendar year
in which the member attains age 70 1/2 or the calendar year in
which the member terminates employment with the City.
G.
Preretirement death.
(1)
Prior to vesting or eligibility for retirement. The beneficiary of
a deceased member who was not receiving monthly benefits or who was
not yet vested or eligible for early or normal retirement shall receive
a refund of 100% of the member's accumulated contributions.
(2)
Deceased members vested or eligible for retirement with spouse as beneficiary. This Subsection G(2) applies only when the member's spouse is the sole designated beneficiary. The spouse beneficiary of any member who dies and who, at the date of his death was vested or eligible for early or normal retirement, shall be entitled to a benefit as follows:
(a)
If the member was vested, but not eligible for normal or early
retirement, the spouse beneficiary shall receive a benefit payable
for 10 years, beginning on the date that the deceased member would
have been eligible for early or normal retirement, at the option of
the spouse beneficiary. The benefit shall be calculated as for normal
retirement based on the deceased member's credited service and
average final compensation as of the date of his death and reduced
as for early retirement, if applicable. The spouse beneficiary may
also elect to receive an immediate benefit, payable for 10 years,
which is actuarially reduced to reflect the commencement of benefits
prior to the early retirement date.
(b)
If the deceased member was eligible for normal or early retirement,
the spouse beneficiary shall receive a benefit payable for 10 years,
beginning on the first day of the month following the member's
death or at the deceased member's otherwise early or normal retirement
date, at the option of the spouse beneficiary. The benefit shall be
calculated as for normal retirement based on the deceased member's
credited service and average final compensation as of the date of
his death and reduced as for early retirement, if applicable.
(c)
A spouse beneficiary may not elect an optional form of benefit, however, the Board may elect to make a lump sum payment pursuant to Subsection J(7).
(e)
Notwithstanding anything contained in this subsection to the
contrary, in any event, distributions to the spouse beneficiary will
begin by December 31 of the calendar year immediately following the
calendar year in which the member died, or by a date selected pursuant
to the above provisions in this subsection that must be on or before
December 31 of the calendar year in which the member would have attained
70 1/2.
(3)
Deceased members vested or eligible for retirement with nonspouse
beneficiary. This subsection applies only when the member's spouse
is not the beneficiary or is not the sole designated beneficiary,
but there is a surviving beneficiary. The beneficiary of any member
who dies and who, at the date of his death was vested or eligible
for early or normal retirement, shall be entitled to a benefit as
follows:
(a)
If the member was vested, but not eligible for normal or early
retirement, the beneficiary will receive a benefit payable for 10
years. The benefit will begin by December 31 of the calendar year
immediately following the calendar year in which the member died.
The benefit will be calculated as for normal retirement based on the
deceased member's credited service and average final compensation
and actuarially reduced to reflect the commencement of benefits prior
to the normal retirement date.
(b)
If the deceased member was eligible for normal or early retirement,
the beneficiary will receive a benefit payable for 10 years, beginning
on the first day of the month following the member's death. The
benefit will be calculated as for normal retirement based on the deceased
member's credited service and average final compensation as of
the date of his death and reduced for early retirement, if applicable.
(c)
A beneficiary may not elect an optional form of benefit, however the Board may elect to make a lump sum payment pursuant to Subsection J(7).
(e)
If a surviving beneficiary commences receiving a benefit under Subsection G(3)(a) or (b) above, but dies before all payments are made, the actuarial value of the remaining benefit will be paid to the surviving beneficiary's estate by December 31 of the calendar year of the beneficiary's death in a lump sum.
(f)
If there is no surviving beneficiary as of the member's
death, and the estate is to receive the benefits, the actuarial equivalent
of the member's entire interest must be distributed by December
31 of the calendar year containing the fifth anniversary of the member's
death.
(g)
The Uniform Lifetime Table in Treasury Regulations § 1.401(a)(9)-9
shall determine the payment period for the calendar year benefits
commence, if necessary to satisfy the regulations.
(4)
In line of duty presumptions.
[Added 12-10-2019 by Ord.
No. 2019-07]
(a)
Rebuttable presumptions: The provisions of §§ 112.18, 112.181 and 175.231, Florida Statutes, are hereby codified within the plan and are intended to be incorporated by reference. The Board of Trustees shall adopt uniform administrative rules for the conduct of hearings relating to these rebuttable presumptions and for the determination of any disqualifying events reflected in Chapters 112 and 175, Florida Statutes.
(b)
Conclusive cancer presumption: The provisions of § 112.1816, Florida Statutes, are hereby codified within the plan and are intended to be incorporated by reference. The Board of Trustees shall adopt uniform administrative rules relating to this presumption and for the determination of any disqualifying events as reflected in Chapters 112 and 175, Florida Statutes.
H.
Disability.
(1)
Disability benefits in line of duty. Any member who shall become totally and permanently disabled to the extent that he is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a firefighter, which disability was directly caused by the performance of his duty as a firefighter, shall, upon establishing the same to the satisfaction of the Board, be entitled to a monthly pension equal to 3% of his average final compensation for each year of credited service, but in any event the minimum amount paid to the member shall be 42% of the average final compensation of the member. Eligibility requirements for disability benefits are set forth in Subsection H(8), below.
[Amended 1-12-2016 by Ord. No. 2015-08; 4-9-2019 by Ord. No. 2019-02]
(2)
In line of duty presumptions.
[Amended 12-10-2019 by Ord. No. 2019-07]
(a)
Rebuttable heart disease and hypertension presumptions. Any condition or impairment of health of a member caused by hypertension or heart disease shall be presumed to have been suffered in line of duty unless the contrary is shown by competent evidence, provided that such member shall have successfully passed a physical examination upon entering into such service, which examination failed to reveal any evidence of such condition; and provided further, that such presumption shall not apply to benefits payable or granted in a policy of life insurance or disability insurance. The provisions of §§ 112.18, 112.181 and 175.231, Florida Statutes, are hereby codified within the plan and are intended to be incorporated by reference. The Board of Trustees shall adopt uniform administrative rules for the conduct of hearings relating to these rebuttable presumptions and for the determination of any disqualifying events reflected in Chapters 112 and 175, Florida Statutes.
(b)
Additional rebuttable presumptions. The presumption provided for in this Subsection H(2)(b) shall apply only to those conditions described in this Subsection H(2)(b) that are diagnosed on or after January 1, 1996.
[1]
Definitions. As used in this Subsection H(2)(b), the following definitions apply:
[a]
BODY FLUIDS — Blood and body fluids containing visible
blood and other body fluids to which universal precautions for prevention
of occupational transmission of blood-borne pathogens, as established
by the Centers for Disease Control, apply. For purposes of potential
transmission of meningococcal meningitis or tuberculosis, the term
"body fluids" includes respiratory, salivary, and sinus fluids, including
droplets, sputum, and saliva, mucous, and other fluids through which
infectious airborne organisms can be transmitted between persons.
[b]
EMERGENCY RESCUE OR PUBLIC SAFETY MEMBER — Any member
employed full time by the City as a firefighter, paramedic, emergency
medical technician, law enforcement officer, or correctional officer
who, in the course of employment, runs a high risk of occupational
exposure to hepatitis, meningococcal meningitis, or tuberculosis and
who is not employed elsewhere in a similar capacity. However, the
term "emergency rescue or public safety member" does not include any
person employed by a public hospital licensed under Chapter 395, Florida
Statutes, or any person employed by a subsidiary thereof.
[c]
HEPATITIS — Hepatitis A, hepatitis B, hepatitis non-A,
hepatitis non-B, hepatitis C, or any other strain of hepatitis generally
recognized by the medical community.
[d]
HIGH RISK OF OCCUPATIONAL EXPOSURE —That risk that is
incurred because a person subject to the provisions of this subsection,
in performing the basic duties associated with his employment:
[i]
Provides emergency medical treatment in a non-health-care setting
where there is a potential for transfer of body fluids between persons;
[ii]
At the site of an accident, fire, or other rescue or public
safety operation, or in an emergency rescue or public safety vehicle,
handles body fluids in or out of containers or works with or otherwise
handles needles or other sharp instruments exposed to body fluids;
[iii]
Engages in the pursuit, apprehension, and arrest of law violators
or suspected law violators and, in performing such duties, may be
exposed to body fluids; or
[iv]
Is responsible for the custody, and physical restraint when
necessary, of prisoners or inmates within a prison, jail, or other
criminal detention facility, while on work detail outside the facility,
or while being transported and, in performing such duties, may be
exposed to body fluids.
[e]
OCCUPATIONAL EXPOSURE — In the case of hepatitis,
meningococcal meningitis, or tuberculosis, means an exposure that
occurs during the performance of job duties that may place a worker
at risk of infection.
[2]
Presumption. Any emergency rescue or public safety member who
suffers a condition or impairment of health that is caused by hepatitis,
meningococcal meningitis, or tuberculosis, that requires medical treatment,
and that results in total or partial disability or death shall be
presumed to have a disability suffered in the line of duty, unless
the contrary is shown by competent evidence; however, in order to
be entitled to the presumption, the member must, by written affidavit
as provided in § 92.50, Florida Statutes, verify by written
declaration that, to the best of his knowledge and belief:
[a]
In the case of a medical condition caused by or derived from
hepatitis, he has not:
[i]
Been exposed, through transfer of bodily fluids, to any person
known to have sickness or medical conditions derived from hepatitis,
outside the scope of his employment;
[ii]
Had a transfusion of blood or blood components, other than a
transfusion arising out of an accident or injury happening in connection
with his present employment, or received any blood products for the
treatment of a coagulation disorder since last undergoing medical
tests for hepatitis, which tests failed to indicate the presence of
hepatitis;
[iii]
Engaged in unsafe sexual practices or other high-risk behavior,
as identified by the Centers for Disease Control or the Surgeon General
of the United States or had sexual relations with a person known to
him to have engaged in such unsafe sexual practices or other high-risk
behavior; or
[iv]
Used intravenous drugs not prescribed by a physician.
[b]
In the case of meningococcal meningitis, in the
10 days immediately preceding diagnosis he was not exposed, outside
the scope of his employment, to any person known to have meningococcal
meningitis or known to be an asymptomatic carrier of the disease.
[c]
In the case of tuberculosis, in the period of time
since the member's last negative tuberculosis skin test, he has
not been exposed, outside the scope of his employment, to any person
known by him to have tuberculosis.
[3]
Immunization. Whenever any standard, medically recognized vaccine
or other form of immunization or prophylaxis exists for the prevention
of a communicable disease for which a presumption is granted under
this section, if medically indicated in the given circumstances pursuant
to immunization policies established by the Advisory Committee on
Immunization Practices of the U.S. Public Health Service, an emergency
rescue or public safety member may be required by the City to undergo
the immunization or prophylaxis unless the member's physician
determines in writing that the immunization or other prophylaxis would
pose a significant risk to the member's health. Absent such written
declaration, failure or refusal by an emergency rescue or public safety
member to undergo such immunization or prophylaxis disqualifies the
member from the benefits of the presumption.
[4]
Record of exposures. The City shall maintain a record of any
known or reasonably suspected exposure of an emergency rescue or public
safety member in its employ to the disease described in this subsection
and shall immediately notify the member of such exposure. An emergency
rescue or public safety member shall file an incident or accident
report with the City of each instance of known or suspected occupational
exposure to hepatitis infection, meningococcal meningitis, or tuberculosis.
[5]
Required medical tests; preemployment physical. In order to
be entitled to the presumption provided by this subsection:
[a]
An emergency rescue or public safety member must, prior to diagnosis,
have undergone standard, medically acceptable tests for evidence of
the communicable disease for which the presumption is sought, or evidence
of medical conditions derived therefrom, which tests fail to indicate
the presence of infection. This subsection does not apply in the case
of meningococcal meningitis.
[b]
On or after June 15, 1995, an emergency rescue or public safety
member may be required to undergo a preemployment physical examination
that tests for and fails to reveal any evidence of hepatitis or tuberculosis.
(c)
Conclusive cancer presumption: The provisions of § 112.1816,
Florida Statutes, are hereby codified within the plan and are intended
to be incorporated by reference. The Board of Trustees shall adopt
uniform administrative rules for the conduct of hearings relating
to this presumption and for the determination of any disqualifying
events as reflected in the statute.
(3)
Disability benefits not in line of duty. Any member with 10 years' or more credited service who shall become totally and permanently disabled to the extent that he is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a firefighter, which disability, is not directly caused by the performance of his duties as a firefighter shall, upon establishing the same to the satisfaction of the Board, be entitled to a monthly pension equal to 3% of his average final compensation for each year of credited service. Eligibility requirements for disability benefits are set forth in Subsection H(8), below.
[Amended 1-12-2016 by Ord. No. 2015-08; 4-9-2019 by Ord. No. 2019-02]
(4)
Conditions disqualifying disability benefits. Each member who is
claiming disability benefits shall establish, to the satisfaction
of the Board, that such disability was not occasioned primarily by:
(a)
Excessive or habitual use of any drugs, intoxicants or narcotics.
(b)
Injury or disease sustained while willfully and illegally participating
in fights, riots or civil insurrections or while committing a crime.
(c)
Injury or disease sustained while serving in any branch of the
armed forces.
(d)
Injury or disease sustained by the member after his employment
as a firefighter with the City of South Pasadena shall have terminated.
(5)
Physical examination requirement.
A member shall not become eligible for disability benefits until
and unless he undergoes a physical examination by a qualified physician
or physicians and/or surgeon or surgeons, who shall be selected by
the Board for that purpose. The Board shall not select the member's
treating physician or surgeon for this purpose except in an unusual
case where the Board determines that it would be reasonable and prudent
to do so.
|
Any retiree receiving disability benefits under provisions of
this section may be required by the Board to submit sworn statements
of his condition accompanied by a physician's statement (provided
at the retiree's expense) to the Board annually and may be required
by the Board to undergo additional periodic reexaminations by a qualified
physician or physicians and/or surgeon or surgeons who shall be selected
by the Board, to determine if such disability has ceased to exist.
If the Board finds that the retiree is no longer permanently and totally
disabled to the extent that he is unable to render useful and efficient
service as a firefighter, the Board shall recommend to the City that
the retiree be returned to performance of duty as a firefighter, and
the retiree so returned shall enjoy the same rights he had at the
time he was placed upon pension. In the event the retiree so ordered
to return shall refuse to comply with the order within 30 days from
the issuance thereof, he shall forfeit the right to his pension.
|
The cost of the physical examination and/or reexamination of
the member claiming or the retiree receiving disability benefits shall
be borne by the fund. All other reasonable costs as determined by
the Board incident to the physical examination, such as, but not limited
to, transportation, meals and hotel accommodations, shall be borne
by the fund.
|
If the retiree recovers from disability and reenters the service
of the City as a firefighter, his service will be deemed to have been
continuous, but the period beginning with the first month for which
he received a disability retirement income payment and ending with
the date he reentered the service of the City will not be considered
as credited service for the purposes of the system.
|
The Board shall have the power and authority to make the final
decisions regarding all disability claims.
|
(6)
Disability payments.
[Amended 12-10-2019 by Ord. No. 2019-07]
The monthly benefit to which a member is entitled in the event
of the member's disability retirement shall be payable on the
first day of the first month after the Board determines such entitlement.
However, the monthly retirement income shall be payable as of the
date the Board determined such entitlement, and any portion due for
a partial month shall be paid together with the first payment. The
last payment will be:
|
(a)
If the retiree recovers from the disability prior to the date
that would have been their normal retirement date had they continued
to be employed as a firefighter, the payment due next preceding the
date of such recovery; or
(b)
If the retiree dies without recovering from disability, the
payment due next preceding his death or the 120th monthly payment,
whichever is later.
(7)
Workers' compensation. When a retiree is receiving a disability
pension and workers' compensation benefits pursuant to Florida
Statute Chapter 440, for the same disability, and the total monthly
benefits received from both exceed 100% of the member's average
monthly wage, as defined in Chapter 440, Florida Statutes, the disability
pension benefit shall be reduced so that the total monthly amount
received by the retiree does not exceed 100% of such average monthly
wage. The amount of any lump sum workers' compensation payment
shall be converted to an equivalent monthly benefit payable for 10
years certain by dividing the lump sum amount by 83.9692. Notwithstanding
the foregoing, in no event shall the disability pension benefit be
reduced below the greater of 42% of average final compensation or
2.75% of average final compensation times years of credited service.
[Amended 4-9-2019 by Ord.
No. 2019-02]
(8)
Eligibility for disability benefits. Subject to Subsection H(8)(d) below, only active members of the system on the date the Board determines entitlement to a disability benefit are eligible for disability benefits.
[Added 4-9-2019 by Ord.
No. 2019-02]
(a)
Terminated persons, either vested or nonvested, are not eligible
for disability benefits.
(b)
If a member voluntarily terminates his employment, either before
or after filing an application for disability benefits, he is not
eligible for disability benefits.
(c)
If a member is terminated by the City for any reason other than
for medical reasons, either before or after he files an application
for disability benefits, he is not eligible for disability benefits.
(e)
If either Subsection H(8)(d)[1] or [2] above applies, the member's application will be processed and fully considered by the Board.
I.
Vesting. If a member terminates his employment as a firefighter,
either voluntarily or by discharge, and is not eligible for any other
benefits under this system, the member shall be entitled to the following:
(1)
If the member has less than 10 years credited service upon termination,
the member shall be entitled to a refund of his accumulated contributions
or the member may leave it deposited with the fund.
(2)
If the member has 10 or more years of credited service upon termination,
the member shall be entitled to a monthly retirement benefit, determined
in the same manner as for normal or early retirement and based upon
the member's credited service, average final compensation and
the benefit accrual rate as of the date of termination, payable to
him commencing at the member's otherwise normal or early retirement
date, provided he does not elect to withdraw his accumulated contributions
and provided the member survives to his otherwise normal or early
retirement date. If the member does not withdraw his accumulated contributions
and does not survive to his otherwise normal or early retirement date,
his designated beneficiary shall be entitled to a benefit as provided
herein for a deceased member, vested or eligible for retirement under
preretirement death.
(3)
Any vested member of the system whose position is terminated, for
whatever reason, but who remains employed by the City in some other
capacity, shall have all retirement benefits accrued up to the date
of such termination under this system preserved, provided he does
not elect to withdraw his accumulated contributions from this system.
Such accrued retirement benefits shall be payable at his otherwise
early (reduced as for early retirement) or normal retirement date
hereunder, or later, in accordance with the provisions of this system;
provided, further, however, that benefits shall not be payable under
this system during any period of continued employment by the City.
J.
Optional forms of benefits.
(1)
In lieu of the amount and form of retirement income payable in the
event of normal or early retirement as specified herein, a member,
upon written request to the Board, may elect to receive a retirement
income or benefit of equivalent actuarial value payable in accordance
with one of the following options:
(a)
A retirement income of a monthly amount payable to the retiree
for his lifetime only.
(b)
A retirement income of a modified monthly amount, payable to
the retiree during the lifetime of the retiree and following the death
of the retiree, 100%, 75%, 66 2/3% or 50% of such monthly amount
payable to a joint pensioner for his lifetime. Except where the retiree's
joint pensioner is his spouse, the payments to the joint pensioner
as a percentage of the payments to the retiree shall not exceed the
applicable percentage provided for in the applicable table in the
Treasury regulations. [See Q & A-2 of 1.401(a)(9)-6.]
(c)
If a member retires prior to the time at which social security
benefits are payable, he may elect to receive an increased retirement
benefit until such time as social security benefits shall be assumed
to commence and a reduced benefit thereafter in order to provide,
to as great an extent as possible, a more level retirement allowance
during the entire period of retirement. The amounts payable shall
be as recommended by the actuaries for the system, based upon the
social security law in effect at the time of the member's retirement.
(2)
The member, upon electing any option of this subsection, will designate the joint pensioner [Subsection J(1)(b) above] or beneficiary (or beneficiaries) to receive the benefit, if any, payable under the system in the event of member's death, and will have the power to change such designation from time to time. Such designation will name a joint pensioner or one (1) or more primary beneficiaries where applicable. A member may change his beneficiary at any time. If a member has elected an option with a joint pensioner and member's retirement income benefits have commenced, member may thereafter change his designated beneficiary at any time, but may only change his joint pensioner twice. Subject to the restriction in the previous sentence, a member may substitute a new joint pensioner for a deceased joint pensioner. In the absence of proof of good health of the joint pensioner being replaced, the actuary will assume that the joint pensioner has deceased for purposes of calculating the new payment.
(3)
The consent of a member's or retiree's joint pensioner
or beneficiary to any such change shall not be required. The rights
of all previously designated beneficiaries to receive benefits under
the system shall thereupon cease.
(4)
Upon change of a retiree's joint pensioner in accordance with this subsection, the amount of the retirement income payable to the retiree shall be actuarially redetermined to take into account the age of the former joint pensioner, the new joint pensioner and the retiree and to ensure that the benefit paid is the actuarial equivalent of the present value of the retiree's then-current benefit at the time of the change. Any such retiree shall pay the actuarial recalculation expenses. Each request for a change will be made in writing on a form prepared by the Board and on completion will be filed with the Board. In the event that no designated beneficiary survives the retiree, such benefits as are payable in the event of the death of the retiree subsequent to his retirement shall be paid as provided in Subsection K.
(5)
Retirement income payments shall be made under the option elected
in accordance with the provisions of this subsection and shall be
subject to the following limitations:
(a)
If a member dies prior to his normal retirement date or early retirement date, whichever first occurs, no retirement benefit will be payable under the option to any person, but the benefits, if any, will be determined under Subsection G.
(b)
If the designated beneficiary (or beneficiaries) or joint pensioner
dies before the member's retirement under the system, the option
elected will be canceled automatically and a retirement income of
the normal form and amount will be payable to the member upon his
retirement as if the election had not been made, unless a new election
is made in accordance with the provisions of this subsection or a
new beneficiary is designated by the member prior to his retirement.
(c)
If both the retiree and the beneficiary (or beneficiaries) designated by member or retiree die before the full payment has been effected under any option providing for payments for a period certain and life thereafter, made pursuant to the provisions of Subsection J(1), the Board may, in its discretion, direct that the commuted value of the remaining payments be paid in a lump sum and in accordance with Subsection K.
(d)
If a member continues beyond his normal retirement date pursuant to the provisions of Subsection F(1), and dies prior to his actual retirement and while an option made pursuant to the provisions of this subsection is in effect, monthly retirement income payments will be made, or a retirement benefit will be paid, under the option to a beneficiary (or beneficiaries) designated by the member in the amount or amounts computed as if the member had retired under the option on the date on which his death occurred.
(e)
The member's benefit under this subsection must begin to
be distributed to the member no later than April 1 of the calendar
year following the later of the calendar year in which the member
attains age 70 1/2 or the calendar year in which the member terminates
employment with the City.
(6)
A retiree may not change his retirement option after the date of
cashing or depositing his first retirement check.
(7)
Notwithstanding anything herein to the contrary, the Board in its
discretion, may elect to make a lump sum payment to a member or a
member's beneficiary in the event that the total commuted value
of the monthly income payments to be paid do not exceed $1,000. Any
such payment made to any person pursuant to the power and discretion
conferred upon the Board by the preceding sentence shall operate as
a complete discharge of all obligations under the system with regard
to such member and shall not be subject to review by anyone, but shall
be final, binding and conclusive on all persons.
K.
Beneficiaries.
(1)
Each member or retiree may, on a form provided for that purpose,
signed and filed with the Board, designate a beneficiary (or beneficiaries)
to receive the benefit, if any, which may be payable in the event
of his death. Each designation may be revoked or changed by such member
or retiree by signing and filing with the Board a new designation
of beneficiary form. Upon such change, the rights of all previously
designated beneficiaries to receive any benefits under the system
shall cease.
(2)
If a deceased member or retiree failed to name a beneficiary in the manner prescribed in Subsection K(1), or if the beneficiary (or beneficiaries) named by a deceased member or retiree predeceases the member or retiree, the death benefit, if any, which may be payable under the system with respect to such deceased member or retiree, shall be paid to the estate of the member or retiree and the Board, in its discretion, may direct that the commuted value of the remaining monthly income benefits be paid in a lump sum.
(3)
Any payment made to any person pursuant to this subsection shall
operate as a complete discharge of all obligations under the system
with regard to the deceased member and any other persons with rights
under the system and shall not be subject to review by anyone but
shall be final, binding and conclusive on all persons ever interested
hereunder.
L.
Claims procedures.
(1)
The Board shall establish administrative claims procedures to be
utilized in processing written requests ("claims"), on matters which
affect the substantial rights of any person ("claimant"), including
members, retirees, beneficiaries, or any person affected by a decision
of the Board.
(2)
The Board shall have the power to subpoena and require the attendance
of witnesses and the production of documents for discovery prior to
and at any proceedings provided for in the Board's claims procedures.
The claimant may request in writing the issuance of subpoenas by the
Board. A reasonable fee may be charged for the issuance of any subpoenas
not to exceed the fees set forth in Florida Statutes.
M.
Reports to division of retirement. Each year and no later than March
15, the Board shall file an annual report with the Division of retirement
containing the documents and information required by § 175.261,
Florida Statutes.
N.
Roster of retirees. The Secretary of the Board shall keep a record
of all persons enjoying a pension under the provisions of this section
in which it shall be noted the time when the pension is allowed and
when the same shall cease to be paid. Additionally, the Secretary
shall keep a record of all members in such a manner as to show the
name, address, date of employment and date of termination of employment.
O.
Maximum pension.
[Amended 1-12-2016 by Ord. No. 2015-08]
(1)
Basic limitation.
Notwithstanding any other provisions of this system to the contrary,
the member contributions paid to, and retirement benefits paid from,
the system shall be limited to such extent as may be necessary to
conform to the requirements of Code Section 415 for a qualified retirement
plan. Before January 1, 1995, a plan member may not receive an annual
benefit that exceeds the limits specified in Code Section 415(b),
subject to the applicable adjustments in that section. On and after
January 1, 1995, a plan member may not receive an annual benefit that
exceeds the dollar amount specified in Code Section 415(b)(1)(A) ($160,000),
subject to the applicable adjustments in Code Section 415(b) and subject
to any additional limits that may be specified in this system. For
purposes of this section, "limitation year" shall be the calendar
year.
For purposes of Code Section 415(b), the "annual benefit" means
a benefit payable annually in the form of a straight life annuity
(with no ancillary benefits) without regard to the benefit attributable
to after-tax employee contributions [except pursuant to Code Section
415(n) and to rollover contributions as defined in Code Section 415(b)(2)(A)].
The "benefit attributable" shall be determined in accordance with
Treasury regulations.
(2)
Adjustment to basic limitation for form of benefit. If the benefit under the plan is other than the annual benefit described in Subsection O(1), then the benefit shall be adjusted so that it is the equivalent of the annual benefit, using factors prescribed in Treasury regulations. If the form of the benefit, without regard to any automatic benefit increase feature, is not a straight life annuity or a qualified joint and survivor annuity, then the preceding sentence is applied by either reducing the Code Section 415(b) limit applicable at the annuity starting date or adjusting the form of benefit to an actuarially equivalent amount [determined using the assumptions specified in Treasury Regulation Section 1.415(b)-1(c)(2)(ii)] that takes into account the additional benefits under the form of benefit as follows:
(a)
For a benefit paid in a form to which Section 417(e)(3) of the
code does not apply (generally, a monthly benefit), the actuarially
equivalent straight life annuity benefit that is the greater of:
[1]
The annual amount of the straight life annuity (if any) payable
to the member under the plan commencing at the same annuity starting
date as the form of benefit to the member; or
[2]
The annual amount of the straight life annuity commencing at
the same annuity starting date that has the same actuarial present
value as the form of benefit payable to the member, computed using
a five-percent interest assumption (or the applicable statutory interest
assumption) and (i) for years prior to January 1, 2009, the applicable
mortality tables described in Treasury Regulation Section 1.417(e)-1(d)(2)
(Revenue Ruling 2001-62 or any subsequent revenue ruling modifying
the applicable provisions of Revenue Rulings 2001-62), and (ii) for
years after December 31, 2008, the applicable mortality tables described
in Section 417(e)(3)(B) of the code [Notice 2008-85 or any subsequent
Internal Revenue Service guidance implementing section 417(e)(3)(B)
of the code]; or
(b)
For a benefit paid in a form to which Section 417(e)(3) of the
code applies (generally, a lump sum benefit), the actuarially equivalent
straight life annuity benefit that is the greatest of:
[1]
The annual amount of the straight life annuity commencing at
the annuity starting date that has the same actuarial present value
as the particular form of benefit payable, computed using the interest
rate and mortality table, or tabular factor, specified in the plan
for actuarial experience;
[2]
The annual amount of the straight life annuity commencing at
the annuity starting date that has the same actuarial present value
as the particular form of benefit payable, computed using an interest
assumption of 5.5% (or the applicable statutory interest assumption)
and (i) for years prior to January 1, 2009, the applicable mortality
tables for the distribution under Treasury Regulation Section 1.417(e)-1(d)(2)
(the mortality table specified in Revenue Ruling 2001-62 or any subsequent
revenue ruling modifying the applicable provisions of Revenue Ruling
2001-62), and (ii) for years after December 31, 2008, the applicable
mortality tables described in Section 417(e)(3)(B) of the code [Notice
2008-85 or any subsequent Internal Revenue Service guidance implementing
Section 417(e)(3)(B) of the code]; or
[3]
The annual amount of the straight life annuity commencing at
the annuity starting date that has the same actuarial present value
as the particular form of benefit payable (computed using the applicable
interest rate for the distribution under Treasury Regulation Section
1.417(e)-1(d)(3) [the thirty-year Treasury rate (prior to January
1, 2007, using the rate in effect for the month prior to retirement,
and on and after January 1, 2007, using the rate in effect for the
first day of the plan year with a one-year stabilization period)]
and (i) for years prior to January 1, 2009, the applicable mortality
tables for the distribution under Treasury Regulation Section 1.417(e)-1(d)(2)
(the mortality table specified in Revenue Ruling 2001-62 or any subsequent
revenue ruling modifying the applicable provisions of Revenue Ruling
2001-62), and (ii) for years after December 31, 2008, the applicable
mortality tables described in Section 417(e)(3)(B) of the code [Notice
2008-85 or any subsequent Internal Revenue Service guidance implementing
section 417(e)(3)(B) of the code], divided by 1.05.
(3)
Benefits not taken into account. For purposes of this section, the
following benefits shall not be taken into account in applying these
limits:
(a)
Any ancillary benefit which is not directly related to retirement
income benefits;
(b)
Any other benefit not required under § 415(b)(2) of
the Code and regulations thereunder to be taken into account for purposes
of the limitation of Code Section 415(b)(1); and
(c)
That portion of any joint and survivor annuity that constitutes
a qualified joint and survivor annuity.
(4)
COLA effect.
Effective on and after January 1, 2003, for purposes of applying
the limits under Code Section 415(b) (the "Limit"), the following
will apply:
(a)
A member's applicable limit will be applied to the member's
annual benefit in the member's first limitation year of benefit
payments, without regard to any automatic cost-of-living adjustments;
(b)
Thereafter, in any subsequent limitation year, a member's
annual benefit, including any automatic cost-of-living increases,
shall be tested under the then applicable benefit limit, including
any adjustment to the Code Section 415(b)(1)(A) dollar limit under
Code Section 415(d), and the regulations thereunder; but
(c)
In no event shall a member's benefit payable under the
system in any limitation year be greater than the limit applicable
at the annuity starting date, as increased in subsequent years pursuant
to Code Section 415(d) and the regulations thereunder.
Unless otherwise specified in the system, for purposes of applying
the limits under Code Section 415(b), a member's applicable limit
will be applied taking into consideration cost of living increases
as required by Section 415(b) of the Code and applicable Treasury
regulations.
(5)
Other adjustments in limitations.
(a)
In the event the member's retirement benefits become payable
before age 62, the limit prescribed by this section shall be reduced
in accordance with regulations issued by the Secretary of the Treasury
pursuant to the provisions of Code Section 415(b) of the Code, so
that such limit (as so reduced) equals an annual straight life benefit
(when such retirement income benefit begins) which is equivalent to
an annual benefit of $160,000 beginning at age 62.
(b)
In the event the member's benefit is based on at least 15 years of credited service as a full-time employee of the Police or Fire Department of the City, the adjustments provided for in Subsection O(5)(a) above shall not apply.
(d)
In the event the member's retirement benefit becomes payable after age 65, for purposes of determining whether this benefit meets the limit set forth in Subsection O(1) herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age 65. This adjustment shall be made in accordance with regulations promulgated by the Secretary of the Treasury or his delegate.
(6)
Less than 10 years of participation. The maximum retirement benefits payable under this section to any member who has completed less than 10 years of participation shall be the amount determined under Subsection O(1) of this section multiplied by a fraction, the numerator of which is the number of the member's years of participation and the denominator of which is 10. The reduction provided by this subsection cannot reduce the maximum benefit below 10% of the limit determined without regard to this subsection. The reduction provided for in this subsection shall not be applicable to preretirement disability benefits paid pursuant to Subsection H or preretirement death benefits paid pursuant to Subsection G.
(7)
Participation in other defined benefit plans. The limit of this section
with respect to any member who at any time has been a member in any
other defined benefit plan as defined in Code Section 414(j) maintained
by the City shall apply as if the total benefits payable under all
City defined benefit plans in which the member has been a member were
payable from one plan.
(8)
$10,000 limit; less than 10 years of service. Notwithstanding anything in this Subsection O, the retirement benefit payable with respect to a member shall be deemed not to exceed the limit set forth in this Subsection O(8) of Subsection O if the benefits payable, with respect to such member under this system and under all other qualified defined benefit pension plans to which the City contributes, do not exceed $10,000 for the applicable limitation year or for any prior limitation year, and the City has not at any time maintained a qualified defined contribution plan in which the member participated; provided, however, that if the member has completed less than 10 years of credited service with the City, the limit under this Subsection O(8) of Subsection O shall be a reduced limit equal to $10,000 multiplied by a fraction, the numerator of which is the number of the member's years of credited service and the denominator of which is 10.
[Amended 4-9-2019 by Ord.
No. 2019-02]
(9)
Reduction of benefits. Reduction of benefits and/or contributions
to all plans, where required, shall be accomplished by first reducing
the member's benefit under any defined benefit plans in which
the member participated, such reduction to be made first with respect
to the plan in which the member most recently accrued benefits and
thereafter in such priority as shall be determined by the Board and
the plan administrator of such other plans, and next, by reducing
or allocating excess forfeitures for defined contribution plans in
which the member participated, such reduction to be made first with
respect to the plan in which the member most recently accrued benefits
and thereafter in such priority as shall be established by the Board
and the plan administrator for such other plans; provided, however,
that necessary reductions may be made in a different manner and priority
pursuant to the agreement of the Board and the plan administrator
of all other plans covering such member.
(10)
Service credit purchase limits.
(a)
Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, if a member makes one or more contributions to purchase permissive service credit under the system, as allowed in Subsections Y and AA, then the requirements of this section will be treated as met only if:
[1]
The requirements of Code Section 415(b) are met, determined
by treating the accrued benefit derived from all such contributions
as an annual benefit for purposes of Code Section 415(b); or
[2]
The requirements of Code Section 415(c) are met, determined
by treating all such contributions as annual additions for purposes
of Code Section 415(c).
For purposes of applying Subsection O(10)(a)[1], the system will not fail to meet the reduced limit under Code Section 415(b)(2)(c) solely by reason of this subsection, and for purposes of applying Subsection O(10)(a)[2], the system will not fail to meet the percentage limitation under Section 415(c)(1)(B) of the Code solely by reason of this subsection.
(b)
For purposes of this subsection, the term "permissive service
credit" means service credit:
[1]
Recognized by the system for purposes of calculating a member's
benefit under the plan;
[2]
Which such member has not received under the plan; and
[3]
Which such member may receive only by making a voluntary additional
contribution, in an amount determined under the system, which does
not exceed the amount necessary to fund the benefit attributable to
such service credit.
Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, such term may, if otherwise provided by the system, include service credit for periods for which there is no performance of service, and, notwithstanding Subsection O(10)(b)[2], may include service credited in order to provide an increased benefit for service credit which a member is receiving under the system.
(11)
Contribution limitations.
(a)
For purposes of applying the Code Section 415(c) limits which are incorporated by reference and for purposes of this Subsection O(11), only and for no other purpose, the definition of "compensation," where applicable, will be compensation actually paid or made available during a limitation year, except as noted below and as permitted by Treasury Regulations Section 1.415(c)-2, or successor regulations. Unless another definition of "compensation" that is permitted by Treasury Regulations Section 1.415(c)-2, or successor regulation, is specified by the system, compensation will be defined as wages within the meaning of Code Section 3401(a) and all other payments of compensation to an employee by an employer for which the employer is required to furnish the employee a written statement under Code Sections 6041(d), 6051(a)(3) and 6052 and will be determined without regard to any rules under Code Section 3401(a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed [such as the exception for agricultural labor in Code Section 3401(a)(2)].
[1]
However, for limitation years beginning after December 31, 1997,
compensation will also include amounts that would otherwise be included
in compensation but for an election under Code Sections 125(a), 402(e)(3),
402(h)(1)(B), 402(k), or 457(b). For limitation years beginning after
December 31, 2000, compensation will also include any elective amounts
that are not includible in the gross income of the employee by reason
of Code Section 132(f)(4).
[2]
For limitation years beginning on and after January 1, 2007,
compensation for the limitation year will also include compensation
paid by the later of 2 1/2 months after an employee's severance
from employment or the end of the limitation year that includes the
date of the employee's severance from employment if:
[a]
The payment is regular compensation for services
during the employee's regular working hours, or compensation
for services outside the employee's regular working hours (such
as overtime or shift differential), commissions, bonuses or other
similar payments, and, absent a severance from employment, the payments
would have been paid to the employee while the employee continued
in employment with the employer; or
[b]
The payment is for unused accrued bona fide sick,
vacation or other leave that the employee would have been able to
use if employment had continued.
[3]
Back pay, within the meaning of Treasury Regulations Section 1.415(c)-2(g)(8), shall be treated as compensation for the limitation year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under the definition of "salary" in Subsection A, Definitions.
(b)
Notwithstanding any other provision of law to the contrary,
the Board may modify a request by a member to make a contribution
to the system if the amount of the contribution would exceed the limits
provided in Code Section 415 by using the following methods:
[1]
If the law requires a lump sum payment for the purchase of service
credit, the Board may establish a periodic payment deduction plan
for the member to avoid a contribution in excess of the limits under
Code Section 415(c) or 415(n).
[2]
If payment pursuant to Subsection O(11)(b)[1] will not avoid a contribution in excess of the limits imposed by Code Section 415(c), the Board may either reduce the member's contribution to an amount within the limits of that section or refuse the member's contribution.
(c)
If the annual additions for any member for a limitation year
exceed the limitation under Section 415(c) of the code, the excess
annual addition will be corrected as permitted under the Employee
Plans Compliance Resolution System (or similar IRS correction program).
(12)
Additional limitation on pension benefits. Notwithstanding anything
herein to the contrary:
(a)
The normal retirement benefit or pension payable to a retiree
who becomes a member of the system and who has not previously participated
in such system, on or after January 1, 1980, shall not exceed 100%
of his average final compensation. However, nothing contained in this
section shall apply to supplemental retirement benefits or to pension
increases attributable to cost-of-living increases or adjustments.
(b)
No member of the system shall be allowed to receive a retirement
benefit or pension which is in part or in whole based upon any service
with respect to which the member is already receiving, or will receive
in the future, a retirement benefit or pension from a different employer's
retirement system or plan. This restriction does not apply to social
security benefits or federal benefits under Chapter 1223, Title 10,
U.S. Code.
(13)
Effect of direct rollover on 415(b) limit. If the plan accepts
a direct rollover of an employee's or former employee's
benefit from a defined contribution plan qualified under Code Section
401(a) which is maintained by the employer, any annuity resulting
from the rollover amount that is determined using a more favorable
actuarial basis than required under Code Section 417(e) shall be included
in the annual benefit for purposes of the limit under Code Section
415(b).
P.
Minimum distribution of benefits.
(1)
General rules.
(a)
Effective date. Effective as of January 1, 1989, the plan will
pay all benefits in accordance with a good faith interpretation of
the requirements of Code Section 401(a)(9) and the regulations in
effect under that section, as applicable to a governmental plan within
the meaning of Code Section 414(d). Effective on and after January
1, 2003, the plan is also subject to the specific provisions contained
in this subsection. The provisions of this subsection will apply for
purposes of determining required minimum distributions for calendar
years beginning with the 2003 calendar year.
(b)
Precedence. The requirements of this subsection will take precedence
over any inconsistent provisions of the plan.
(c)
TEFRA Section 242(b)(2) elections. Notwithstanding the other provisions of this subsection other than this Subsection P(1)(c), distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the plan that related to Section 242(b)(2) of TEFRA.
(2)
Time and manner of distribution.
(a)
Required beginning date. The member's entire interest will
be distributed, or begin to be distributed, to the member no later
than the member's required beginning date which shall not be
later than April 1 of the calendar year following the later of the
calendar year in which the member attains age 70 1/2 or the calendar
year in which the member terminates employment with the City.
(b)
Death of member before distributions begin. If the member dies
before distributions begin, the member's entire interest will
be distributed, or begin to be distributed, no later than as follows:
[1]
If the member's surviving spouse is the member'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 member died, or by a date on or before
December 31 of the calendar year in which the member would have attained
age 70 1/2, if later, as the surviving spouse elects.
[2]
If the member's surviving spouse is not the member's
sole designated beneficiary, then distributions to the designated
beneficiary will begin by December 31 of the calendar year immediately
following the calendar year in which the member died.
[3]
If there is no designated beneficiary as of September 30 of
the year following the year of the member's death, the member's
entire interest will be distributed by December 31 of the calendar
year containing the fifth anniversary of the member's death.
[4]
If the member's surviving spouse is the member's sole designated beneficiary and the surviving spouse dies after the member but before distributions to the surviving spouse begin, this Subsection P(2)(b), other than Subsection P(2)(b)[1], will apply as if the surviving spouse were the member.
For purposes of this Subsection P(2)(b), distributions are considered to begin on the member's required beginning date or, if Subsection P(2)(b)[4] applies, the date of distributions are required to begin to the surviving spouse under Subsection P(2)(b)[1]. If annuity payments irrevocably commence to the member before the member's required beginning date [or to the member's surviving spouse before the date distributions are required to begin to the surviving spouse under Subsection P(2)(b)[1]], the date distributions are considered to begin is the date distributions actually commence.
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(c)
Death after distributions begin. If the member dies after the
required distribution of benefits has begun, the remaining portion
of the member's interest must be distributed at least as rapidly
as under the method of distribution before the member's death.
(d)
Form of distribution. Unless the member'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 this subsection. If the member'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 Treasury regulations. Any part of the member's
interest which is in the form of an individual account described in
Section 414(k) of the Code will be distributed in a manner satisfying
the requirements of Section 401(a)(9) of the Code and Treasury regulations
that apply to individual accounts.
(3)
Determination of amount to be distributed each year.
(a)
General requirements. If the member's interest is paid
in the form of annuity distributions under the plan, payments under
the annuity will satisfy the following requirements:
[1]
The annuity distributions will be paid in periodic payments
made at intervals not longer than one year.
[2]
The member's entire interest must be distributed pursuant to Subsection F, G, I, or J (as applicable) and in any event over a period equal to or less than the member's life or the lives of the member and a designated beneficiary, or over a period not extending beyond the life expectancy of the member or of the member and a designated beneficiary. The life expectancy of the member, the member's spouse, or the member's beneficiary may not be recalculated after the initial determination for purposes of determining benefits.
(b)
Amount required to be distributed by required beginning date. The amount that must be distributed on or before the member's required beginning date (or, if the member dies before distributions begin, the date distributions are required to begin under Subsection G) 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.g., monthly. All of the member's benefit accruals as of the last day of the first distribution calendar year will be included in the calculation of the amount of the annuity payments for payment intervals ending on or after the member's required beginning date.
(c)
Additional accruals after first distribution calendar year.
Any additional benefits accruing to the member 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.
(4)
General distribution rules.
(a)
The amount of an annuity paid to a member's beneficiary
may not exceed the maximum determined under the incidental death benefit
requirement of Code Section 401(a)(9)(G), and effective for any annuity
commencing on or after January 1, 2008, the minimum distribution incidental
benefit rule under Treasury Regulation Section 1.401(a)(9)-6, Q&A-2.
(b)
The death and disability benefits provided by the plan are limited
by the incidental benefit rule set forth in Code Section 401(a)(9)(G)
and Treasury Regulation Section 1.401-1(b)(1)(I) or any successor
regulation thereto. As a result, the total death or disability benefits
payable may not exceed 25% of the cost for all of the members'
benefits received from the retirement system.
(5)
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 YEAR — A calendar year for which a minimum distribution is required. For distributions beginning before the member's death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the member's required beginning date. For distributions beginning after the member's death, the first distribution calendar year is the calendar year in which distributions are required to begin pursuant to Subsection G.
Q.
Miscellaneous provisions.
(1)
Interest of members in system. All assets of the fund are held in
trust and, at no time prior to the satisfaction of all liabilities
under the system with respect to retirees and 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.
(2)
No reduction of accrued benefits. No amendment or ordinance shall
be adopted by the City Commission of the City of South Pasadena which
shall have the effect of reducing the then-vested accrued benefits
of members or a member's beneficiaries.
(3)
Qualification of system. It is intended that the system will constitute
a qualified pension plan under the applicable provisions of the Code
for a qualified plan under Code Section 401(a) and a governmental
plan under Code Section 414(d), as now in effect or hereafter amended.
Any modification or amendment of the system may be made retroactively,
if necessary or appropriate, to qualify or maintain the system as
a plan meeting the requirements of the applicable provisions of the
Code as now in effect or hereafter amended, or any other applicable
provisions of the U.S. federal tax laws, as now in effect or hereafter
amended or adopted, and the regulations issued thereunder.
(4)
Use of forfeitures. Forfeitures arising from terminations of service
of members shall serve only to reduce future City contributions.
(5)
Prohibited transactions. Effective as of January 1, 1989, a board
may not engage in a transaction prohibited by Code Section 503(b).
(6)
USERRA. Effective December 12, 1994, notwithstanding any other provision
of this system, contributions, benefits and service credit with respect
to qualified military service are governed by Code Section 414(u)
and the Uniformed Services Employment and Reemployment Rights Act
of 1994, as amended. To the extent that the definition of "credited
service" sets forth contribution requirements that are more favorable
to the member than the minimum compliance requirements, the more favorable
provisions shall apply.
(7)
Vesting.
(a)
A member will be 100% vested in all benefits upon attainment
of the plan's age and service requirements for the plan's
normal retirement benefit; and
(b)
A member will be 100% vested in all accrued benefits, to the
extent funded, if the plan is terminated or experiences a complete
discontinuance of employer contributions.
(8)
Electronic forms. In those circumstances where a written election
or consent is not required by the plan or the Code, an oral, electronic,
or telephonic form in lieu of or in addition to a written form may
be prescribed by the Board. However, where applicable, the Board shall
comply with Treas. Reg. § 1.401(a)-21.
(9)
Compliance with Chapter 175, Florida Statutes. It is intended that
the system will continue to qualify for funding under § 175.101,
Florida Statutes. Accordingly, unless otherwise required by law, any
provision of the system which violates the requirements of Chapter
175, Florida Statutes, as amended from time to time, shall be superseded
by and administered in accordance with the requirements of such chapter.
(10)
Missing benefit recipients. The system shall follow the procedures
outlined in the IRS Employee Plans Compliance Resolution System (EPCRS)
program and other applicable IRS guidance to locate any missing individuals
to whom a full unreduced benefit payment is due and if, at the conclusion
of such efforts, the individual cannot be located, the existing procedure
of cancelling payments otherwise due (provided that, if the individual
is later located, the benefits due shall be paid) will apply.
[Added 4-9-2019 by Ord.
No. 2019-02]
R.
Repeal or termination of system.
(1)
This section establishing the system and fund, and subsequent ordinances
pertaining to said system and fund, may be modified, terminated, or
amended, in whole or in part, provided that if this or any subsequent
ordinance shall be amended or repealed in its application to any person
benefitting hereunder, the amount of benefits which at the time of
any such alteration, amendment, or repeal shall have accrued to the
member or beneficiary shall not be affected thereby.
(2)
If this section shall be repealed, or if contributions to the system
are discontinued or if there is a transfer, merger or consolidation
of government units, services or functions as provided in Chapter
121, Florida Statutes, the Board shall continue to administer the
system in accordance with the provisions of this section, for the
sole benefit of the then members, any beneficiaries then receiving
retirement allowances, and any future persons entitled to receive
benefits under one of the options provided for in this section who
are designated by any of said members. In the event of repeal, discontinuance
of contributions, or transfer, merger or consolidation of government
units, services or functions, there shall be full vesting (100%) of
benefits accrued to date of repeal and such benefits shall be nonforfeitable.
(3)
The fund shall be distributed in accordance with the following procedures:
(a)
The Board shall determine the date of distribution and the asset
value required to fund all the nonforfeitable benefits after taking
into account the expenses of such distribution. The Board shall inform
the City if additional assets are required, in which event the City
shall continue to financially support the plan until all nonforfeitable
benefits have been funded.
(b)
The Board shall determine the method of distribution of the asset value, whether distribution shall be by payment in cash, by the maintenance of another or substituted trust fund, by the purchase of insured annuities, or otherwise, for each firefighter entitled to benefits under the plan as specified in Subsection R(3)(c).
(c)
The Board shall distribute the asset value as of the date of termination in the manner set forth in this subsection, on the basis that the amount required to provide any given retirement income is the actuarially computed single-sum value of such retirement income, except that if the method of distribution determined under Subsection R(3)(b) involves the purchase of an insured annuity, the amount required to provide the given retirement income is the single premium payable for such annuity. The actuarial single-sum value may not be less than the firefighter's accumulated contributions to the plan, with interest if provided by the plan, less the value of any plan benefits previously paid to the firefighter.
(d)
If there is asset value remaining after the full distribution specified in Subsection R(3)(c), and after the payment of any expenses incurred with such distribution, such excess shall be returned to the City, less return to the state of the state's contributions, provided that if the excess is less than the total contributions made by the City and the state to date of termination of the plan, such excess shall be divided proportionately to the total contributions made by the City and the state.
(e)
The Board shall distribute, in accordance with Subsection R(3)(b), the amounts determined under Subsection R(3)(c).
If, after 24 months after the date the plan terminated or the
date the Board received written notice that the contributions thereunder
were being permanently discontinued, the City or the Board of the
fund affected has not complied with all the provisions in this subsection,
the Florida Department of Management Services will affect the termination
of the fund in accordance with this subsection.
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S.
Exemption from execution; nonassignability. Except as otherwise provided
by law, the pensions, annuities, or any other benefits accrued or
accruing to any person under the provisions of this section and the
accumulated contributions and the cash securities in the fund created
under this section are hereby exempted from any state, county or municipal
tax and shall not be subject to execution, attachment, garnishment
or any legal process whatsoever and shall be unassignable.
T.
Pension validity. The Board shall have the power to examine into
the facts upon which any pension shall heretofore have been granted
under any prior or existing law, or shall hereafter be granted or
obtained erroneously, fraudulently or illegally for any reason. The
Board is empowered to purge the pension rolls or correct the pension
amount of any person heretofore granted a pension under prior or existing
law or any person hereafter granted a pension under this section if
the same is found to be erroneous, fraudulent or illegal for any reason;
and to reclassify any person who has heretofore under any prior or
existing law been or who shall hereafter under this section be erroneously,
improperly or illegally classified. Any overpayments or underpayments
shall be corrected and paid or repaid in a reasonable manner determined
by the Board.
U.
Forfeiture of pension.
(1)
Any member who is convicted of the following offenses committed prior
to retirement, or whose employment is terminated by reason of his
admitted commission, aid or abetment of the following specified offenses,
shall forfeit all rights and benefits under this system, except for
the return of his accumulated contributions as of the date of termination.
Specified offenses are as follows:
(a)
The committing, aiding or abetting of an embezzlement of public
funds;
(b)
The committing, aiding or abetting of any theft by a public
officer or employee from employer;
(c)
Bribery in connection with the employment of a public officer
or employee;
(d)
Any felony specified in Chapter 838, Florida Statutes;
(e)
The committing of an impeachable offense;
(f)
The committing of any felony by a public officer or employee
who willfully and with intent to defraud the public or the public
agency, for which he acts or in which he is employed, of the right
to receive the faithful performance of his duty as a public officer
or employee, realizes or obtains or attempts to obtain a profit, gain,
or advantage for himself or for some other person through the use
or attempted use of the power, rights, privileges, duties or position
of his public office or employment position;
(g)
The committing on or after October 1, 2008, of any felony defined
in § 800.04, Florida Statutes, against a victim younger
than 16 years of age, or any felony defined in Chapter 794, Florida
Statutes, against a victim younger than 18 years of age, by a public
officer or employee through the use or attempted use of power, rights,
privileges, duties, or position of his or her public office or employment
position.
(2)
"Conviction" shall be defined as an adjudication of guilt by a court
of competent jurisdiction; a plea of guilty or a nolo contendere;
a jury verdict of guilty when adjudication of guilt is withheld and
the accused is placed on probation; or a conviction by the Senate
of an impeachable offense.
(3)
"Court" shall be defined as any state or federal court of competent
jurisdiction which is exercising its jurisdiction to consider a proceeding
involving the alleged commission of a specified offense. Prior to
forfeiture, the Board shall hold a hearing on which notice shall be
given to the member whose benefits are being considered for forfeiture.
Said member shall be afforded the right to have an attorney present.
No formal rules of evidence shall apply, but the member shall be afforded
a full opportunity to present his case against forfeiture.
(4)
Any member who has received benefits from the system in excess of
his accumulated contributions after member's rights were forfeited
shall be required to pay back to the fund the amount of the benefits
received in excess of his accumulated contributions. The Board may
implement all legal action necessary to recover such funds.
V.
Conviction and forfeiture; false, misleading or fraudulent statements.
(1)
It is unlawful for a person to willfully and knowingly make, or cause
to be made, or to assist, conspire with, or urge another to make,
or cause to be made, any false, fraudulent, or misleading oral or
written statement or withhold or conceal material information to obtain
any benefit from the system.
(2)
A person who violates Subsection V(1) commits a misdemeanor of the first degree, punishable as provided in § 775.082 or § 775.083, Florida Statutes.
(3)
In addition to any applicable criminal penalty, upon conviction for a violation described in Subsection V(1), a member or beneficiary of the system may, in the discretion of the Board, be required to forfeit the right to receive any or all benefits to which the person would otherwise be entitled under the system. For purposes of this subsection, "conviction" means a determination of guilt that is the result of a plea or trial, regardless of whether adjudication is withheld.
W.
Indemnification.
(1)
To the extent not covered by insurance contracts in force from time
to time, the City shall indemnify, defend and hold harmless members
of the Board from all personal liability for damages and costs, including
court costs and attorneys' fees, arising out of claims, suits,
litigation, or threat of same, herein referred to as "claims," against
these individuals because of acts or circumstances connected with
or arising out of their official duty as members of the Board. The
City reserves the right, in its sole discretion, to settle or not
settle the claim at any time, and to appeal or to not appeal from
any adverse judgment or ruling, and in either event will indemnify,
defend and hold harmless any members of the Board from the judgment,
execution, or levy thereon.
(2)
This subsection shall not be construed so as to relieve any insurance
company or other entity liable to defend the claim or liable for payment
of the judgment or claim, from any liability, nor does this subsection
waive any provision of law affording the City immunity from any suit
in whole or part, or waive any other substantive or procedural rights
the City may have.
(3)
This subsection shall not apply nor shall the City be responsible
in any manner to defend or pay for claims arising out of acts or omissions
of members of the Board which constitute felonies or gross malfeasance
or gross misfeasance in office.
X.
Direct transfers of eligible rollover distributions; elimination
of mandatory distributions.
(1)
General. This subsection applies to distributions made on or after
January 1, 2002. Notwithstanding any provision of the system to the
contrary that would otherwise limit a distributee's election
under this subsection, a distributee may elect, at the time and in
the manner prescribed by the Board, 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.
(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: 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; any distribution to the extent such distribution
is required under Section 401(a)(9) of the Code; and the portion of
any distribution that is not includible in gross income. Effective
January 1, 2002, any portion of any distribution which would be includible
in gross income as after-tax employee contributions will be an eligible
rollover distribution if the distribution is made to an individual
retirement account described in Section 408(a); to an individual retirement
annuity described in Section 408(b); to a qualified defined contribution
plan described in Section 401(a) or 403(a) that agrees to separately
account for amounts so transferred (and earnings thereon), 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; or on or after January 1, 2007, to a qualified
defined benefit plan described in Code Section 401(a) or to an annuity
contract described in Code Section 403(b), that agrees to separately
account for amounts so transferred (and earnings thereon), including
separately accounting for the portion of the distribution that is
includible in gross income and the portion of the distribution that
is not so includible.
(b)
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;
effective January 1, 2002, an eligible deferred compensation plan
described in Section 457(b) of the Code which is maintained by an
eligible employer described in Section 457(e)(1)(A) of the Code and
which agrees to separately account for amounts transferred into such
plan from this plan; effective January 1, 2002, an annuity contract
described in Section 403(b) of the Code; a qualified trust described
in Section 401(a) of the Code; or effective January 1, 2008, a Roth
IRA described in Section 408A of the Code, that accepts the distributee's
eligible rollover distribution. This definition shall also apply in
the case of an eligible rollover distribution to the surviving spouse.
(c)
DISTRIBUTEE — A distributee includes an employee or former
employee. It also includes the employee's or former employee's
surviving spouse and the employee's or former employee's
spouse or former spouse. Effective January 1, 2007, it further includes
a nonspouse beneficiary who is a designated beneficiary as defined
by Code Section 401(a)(9)(E). However, a nonspouse beneficiary may
rollover the distribution only to an individual retirement account
or individual retirement annuity established for the purpose of receiving
the distribution and the account or annuity will be treated as an
"inherited" individual retirement account or annuity.
(d)
DIRECT ROLL OVER — A direct rollover is a payment by the
plan to the eligible retirement plan specified by the distributee.
(3)
Rollovers or transfers into the fund. On or after January 1, 2002,
the system will accept, solely for the purpose of purchasing credited
service as provided herein, permissible member-requested transfers
of funds from other retirement or pension plans, member rollover cash
contributions and/or direct cash rollovers of distributions made on
or after January 1, 2002, as follows:
(a)
Transfers and direct rollovers or member rollover contributions
from other plans. The system will accept either a direct rollover
of an eligible rollover distribution or a member contribution of an
eligible rollover distribution from a qualified plan described in
Section 401(a) or 403(a) of the Code, from an annuity contract described
in Section 403(b) of the Code or from 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. The system will also accept legally permissible
member-requested transfers of funds from other retirement or pension
plans.
(b)
Member rollover contributions from IRAs. The system will accept
a member rollover contribution of the portion of a distribution from
an individual retirement account or annuity described in Section 408(a)
or 408(b) of the Code that is eligible to be rolled over.
(4)
Elimination of mandatory distributions. Notwithstanding any other
provision herein to the contrary, in the event this plan provides
for a mandatory (involuntary) cash distribution from the plan not
otherwise required by law, for an amount in excess of $1,000, such
distribution shall be made from the plan only upon written request
of the member and completion by the member of a written election on
forms designated by the Board, to either receive a cash lump sum or
to roll over the lump sum amount.
Y.
Military service prior to employment. The years or fractional parts
of years that a firefighter serves or has served on active duty in
the military service of the Armed Forces of the United States, the
United States Merchant Marine or the United States Coast Guard, voluntarily
or involuntarily, honorably or under honorable conditions, prior to
first and initial employment with the City Fire Department shall be
added to his years of credited service provided that:
(1)
The member contributes to the fund an actuarially determined amount
so that the crediting of the purchased service does not result in
any cost to the fund plus payment of costs for all professional services
rendered to the Board in connection with the purchase of years of
credited service.
(2)
Multiple requests to purchase credited service pursuant to this subsection
may be made at any time prior to retirement.
(3)
Payment by the member of the required amount shall be made within
six months of his request for credit, but not later than the retirement
date, and shall be made in one lump sum payment upon receipt of which
credited service shall be given.
(4)
The maximum credit under this subsection shall be three years.
(5)
Credited service purchased pursuant to this subsection shall not
count toward vesting or eligibility for not-in-line-of-duty disability
benefits.
Z.
Tax levied on certain insurance companies. There is hereby assessed,
imposed and levied on every insurance company, corporation or other
insurer now engaging in or carrying on, or which shall hereafter engage
in or carry on the business of property insurance, as shown by the
records of the Insurance Commissioner of the State of Florida, an
excise or license tax in addition to any license tax or excise tax
now levied by the City, which tax shall be in the amount of 1.85%
of the gross amount of receipts of premiums from policy holders on
all premiums collected on property insurance policies covering property
within the corporate limits of the City.
AA.
Deferred retirement option plan.
[Amended 1-12-2016 by Ord. No. 2015-08]
(1)
Definitions. As used in this Subsection AA, the following definitions apply:
(a)
DROP — The City of South Pasadena Firefighters' Pension
Plan Deferred Retirement Option Plan.
(c)
TOTAL RETURN OF THE ASSETS — For purposes of calculating
earnings on a member's DROP account pursuant to Subsection AA(3)(b)[2][b],
for each fiscal year quarter, the percentage increase (or decrease)
in the interest and dividends earned on investments, including realized
and unrealized gains (or losses), of the total plan assets.
(2)
Participation.
(a)
Eligibility to participate. In lieu of terminating his employment
as a firefighter, any member who is eligible for normal retirement
under the system may elect to defer receipt of such service retirement
pension and to participate in the DROP.
(b)
Election to participate. A member's election to participate
in the DROP must be made, in writing, in a time and manner determined
by the Board and shall be effective on the first day of the first
calendar month which is at least 15 business days after it is received
by the Board.
(c)
Period of participation. A member who elects to participate in the DROP under Subsection AA(2)(b) shall participate in the DROP for a period not to exceed 60 months, beginning at the time his election to participate in the DROP first becomes effective. An election to participate in the DROP shall constitute an irrevocable election to resign from the service of the City not later than the date provided for in the previous sentence. A member may participate only once.
(d)
Termination of participation.
[2]
Upon the member's termination of participation in the DROP, pursuant to Subsection AA(2)(d)[a] above, all amounts provided for in Subsection AA(3)(b), including monthly benefits and investment earnings and losses, shall cease to be transferred from the system to his DROP account. Any amounts remaining in his DROP account shall be paid to him in accordance with the provisions of Subsection AA(4) when he terminates his employment as a firefighter.
(e)
Effect of DROP participation on the system.
[1]
A member's credited service and his accrued benefit under
the system shall be determined on the date his election to participate
in the DROP first becomes effective. The member shall not accrue any
additional credited service or any additional benefits under the system
(except for any supplemental benefit payable to DROP participants
or any additional benefits provided under any cost-of-living adjustment
for retirees in the system) while he is a participant in the DROP.
After a member commences participation, he shall not be permitted
to again contribute to the system nor shall be be eligible for disability
or preretirement death benefits.
[2]
No amounts shall be paid to a member from the system while the
member is a participant in the DROP. Unless otherwise specified in
the system, if a member's participation in the DROP is terminated
other than by terminating his employment as a firefighter, no amounts
shall be paid to him from the system until he terminates his employment
as a firefighter. Unless otherwise specified in the system, amounts
transferred from the system to the member's DROP account shall
be paid directly to the member only on the termination of his employment
as a firefighter.
(3)
Funding.
(a)
Establishment of DROP account. A DROP account shall be established for each member participating in the DROP. A member's DROP account shall consist of amounts transferred to the DROP under Subsection AA(3)(b), and earnings on those amounts.
(b)
Transfers from retirement system.
[1]
As of the first day of each month of a member's period of participation in the DROP, the monthly retirement benefit he would have received under the system had he terminated his employment as a firefighter and elected to receive monthly benefit payments thereunder shall be transferred to his DROP account, except as otherwise provided for in Subsection AA(2)(d)[2]. A member's period of participation in the DROP shall be determined in accordance with the provisions of Subsection AA(2)(c) and (d), but in no event shall it continue past the date he terminates his employment as a firefighter.
[2]
Except as otherwise provided in Subsection AA(2)(d)[2], a member's DROP account under this Subsection AA(3)(b) shall be debited or credited with either:
[a]
Interest at an effective rate of 3% per annum,
compounded monthly, determined on the last business day of the prior
month's ending balance and credited to the member's DROP
account as of such date (to be applicable to all current and future
DROP participants); or
[b]
Earnings, to be credited or debited to the member's
DROP account, determined as of the last business day of each fiscal
year quarter and debited or credited as of such date, determined as
follows:
The average daily balance in a member's DROP account shall
be credited or debited at a rate equal to the net investment return
realized by the system for that quarter. "Net investment return,"
for the purpose of this subsection is the total return of the assets
in which the member's DROP account is invested by the Board net
of brokerage commissions, transaction costs and management fees.
For purposes of calculating earnings on a member's DROP
Account pursuant to this Subsection AA(3)(b)[2][b], brokerage commissions,
transaction costs, and management fees shall be determined for each
quarter by the investment consultant pursuant to contracts with fund
managers as reported in the custodial statement. The investment consultant
shall report these quarterly contractual fees to the Board. The investment
consultant shall also report the net investment return for each manager
and the net investment return for the total Plan assets.
Upon electing participation in the DROP, the member shall elect
to receive either interest or earnings on his account to be determined
as provided above. The member may, in writing, elect to change his
election only once during his DROP participation. An election to change
must be made prior to the end of a quarter and shall be effective
beginning the following quarter.
[3]
A member's DROP account shall only be credited or debited
with earnings and monthly benefits while the member is a participant
in the DROP. A member's final DROP account value for distribution
to the member upon termination of participation in the DROP shall
be the value of the account at the end of the quarter immediately
preceding termination of participation for participants electing the
net plan return and at the end of the month immediately preceding
termination of participation for participants electing the flat interest
rate return plus any monthly periodic additions made to the DROP account
subsequent to the end of the previous quarter or month, as applicable,
and prior to distribution. If a member is employed by the City Fire
Department after participating in the DROP for the permissible period
of DROP participation, then beginning with the member's first
month of employment following the last month of the permissible period
of DROP participation, the member's DROP account will no longer
be credited or debited with earnings, nor will monthly benefits be
transferred to the DROP account. All such nontransferred amounts shall
be forfeited and continue to be forfeited while the member is employed
by the City Fire Department. A member employed by the City Fire Department
after the permissible period of DROP participation will still not
be eligible for preretirement death or disability benefits, nor will
he accrue additional credited service.
(4)
Distribution of DROP accounts on termination of employment.
(a)
Eligibility for benefits. A member shall receive the balance in his DROP account in accordance with the provisions of this Subsection AA(4) upon his termination of employment as a firefighter. Except as provided in Subsection AA(4) (e), no amounts shall be paid to a member from the DROP prior to his termination of employment as a firefighter.
(b)
Form of distribution.
[1]
Unless the member elects otherwise, distribution of his DROP account shall be made in a cash lump sum, subject to the direct rollover provisions set forth in Subsection AA(4)(f). Elections under this subsection shall be in writing and shall be made in such time or manner as the Board shall determine.
[Amended 4-9-2019 by Ord.
No. 2019-02]
[2]
Notwithstanding the preceding, if a member dies before his benefit
is paid, his DROP account shall be paid to his beneficiary in such
optional form as his beneficiary may select. If no beneficiary designation
is made, the DROP account shall be distributed to the member's
estate.
(c)
Date of payment of distribution. Except as otherwise provided in this Subsection AA(4), distribution of a member's DROP account shall be made as soon as administratively practicable following the member's termination of employment. Distribution of the amount in a member's DROP account will not be made unless the member completes a written request for distribution and a written election, on forms designated by the Board, to either receive a cash lump sum or a rollover of the lump sum amount.
(d)
Proof of death and right of beneficiary or other person. The
Board may require and rely upon such proof of death and such evidence
of the right of any beneficiary or other person to receive the value
of a deceased member's DROP account as the Board may deem proper
and its determination of the right of that beneficiary or other person
to receive payment shall be conclusive.
(e)
Distribution limitation. Notwithstanding any other provision of Subsection AA(4), all distributions from the DROP shall conform to the "minimum distribution of benefits" provisions as provided for herein.
(f)
Direct rollover of certain distributions. This subsection applies
to distributions made on or after January 1, 2003, notwithstanding
any provision of the DROP to the contrary to have any portion of an
eligible rollover distribution paid in a direct rollover as otherwise
provided under the system in Section X.
(5)
Administration of DROP.
(a)
Board administers the DROP. The general administration of the
DROP, the responsibility for carrying out the provisions of the DROP
and the responsibility of overseeing the investment of the DROP's
assets shall be placed in the Board. The members of the Board may
appoint from their number such subcommittees with such powers as they
shall determine; may adopt such administrative procedures and regulations
as they deem desirable for the conduct of their affairs; may authorize
one or more of their number or any agent to execute or deliver any
instrument or make any payment on their behalf; may retain counsel,
employ agents and provide for such clerical, accounting, actuarial
and consulting services as they may require in carrying out the provisions
of the DROP; and may allocate among themselves or delegate to other
persons all or such portion of their duties under the DROP, other
than those granted to them as Trustee under any trust agreement adopted
for use in implementing the DROP, as they, in their sole discretion,
shall decide. A Trustee shall not vote on any question relating exclusively
to himself.
(b)
Individual accounts, records and reports. The Board shall maintain,
or cause to be maintained, records showing the operation and condition
of the DROP, including records showing the individual balances in
each member's DROP account, and the Board shall keep, or cause
to be kept, in convenient form such data as may be necessary for the
valuation of the assets and liabilities of the DROP. The Board shall
prepare or cause to be prepared and distributed to members participating
in the DROP and other individuals or filed with the appropriate governmental
agencies, as the case may be, all necessary descriptions, reports,
information returns, and data required to be distributed or filed
for the DROP pursuant to the Code and any other applicable laws.
(c)
Establishment of rules. Subject to the limitations of the DROP,
the Board from time to time shall establish rules for the administration
of the DROP and the transaction of its business. The Board shall have
discretionary authority to construe and interpret the DROP (including
but not limited to determination of an individual's eligibility
for DROP participation, the right and amount of any benefit payable
under the DROP and the date on which any individual ceases to be a
participant in the DROP). The determination of the Board as to the
interpretation of the DROP or its determination of any disputed questions
shall be conclusive and final to the extent permitted by applicable
law. The Board shall also oversee the investment of the DROP'S
assets.
(d)
Limitation of liability.
[1]
The Trustees shall not incur any liability individually or on
behalf of any other individuals for any act or failure to act, made
in good faith in relation to the DROP or the funds of the DROP.
[2]
Neither the Board nor any Trustee of the Board shall be responsible
for any reports furnished by any expert retained or employed by the
Board, but they shall be entitled to rely thereon as well as on certificates
furnished by an accountant or an actuary, and on all opinions of counsel.
The Board shall be fully protected with respect to any action taken
or suffered by it in good faith in reliance upon such expert, accountant,
actuary or counsel, and all actions taken or suffered in such reliance
shall be conclusive upon any person with any interest in the DROP.
(6)
General provisions.
(a)
The DROP is not a separate retirement plan. Instead, it is a program under which a member who is eligible for normal retirement under the system may elect to accrue future retirement benefits in the manner provided in this Subsection AA for the remainder of his employment, rather than in the normal manner provided under the plan. Upon termination of employment, a member is entitled to a lump sum distribution of his or her DROP account balance or may elect a rollover. The DROP account distribution is in addition to the member's monthly benefit.
(b)
Notional account. The DROP Account established for such a member
is a notional account, used only for the purpose of calculation of
the DROP distribution amount. It is not a separate account in the
system. There is no change in the system's assets, and there
is no distribution available to the member until the member's
termination from the DROP. The member has no control over the investment
of the DROP account.
(c)
No employer discretion. The DROP benefit is determined pursuant
to a specific formula which does not involve employer discretion.
(d)
IRC limit. The DROP account distribution, along with other benefits
payable from the system, is subject to limitation under Internal Revenue
Code Section 415(b).
(e)
Amendment of DROP. The DROP may be amended by an ordinance of
the City at any time and from time to time, and retroactively if deemed
necessary or appropriate, to amend in whole or in part any or all
of the provisions of the DROP. However, except as otherwise provided
by law, no amendment shall make it possible for any part of the DROP's
funds to be used for, or diverted to, purposes other than for the
exclusive benefit of persons entitled to benefits under the DROP.
No amendment shall be made which has the effect of decreasing the
balance of the DROP account of any member.
(f)
Facility of payment. If the Board shall find that a member or
other person entitled to a benefit under the DROP is unable to care
for his affairs because of illness or accident or is a minor, the
Board may direct that any benefit due him, unless claim shall have
been made for the benefit by a duly appointed legal representative,
be paid to his spouse, a child, a parent or other blood relative,
or to a person with whom he resides. Any payment so made shall be
a complete discharge of the liabilities of the DROP for that benefit.
(g)
Information. Each member, beneficiary or other person entitled
to a benefit, before any benefit shall be payable to him or on his
account under the DROP, shall file with the Board the information
that it shall require to establish his rights and benefits under the
DROP.
(h)
[1]Written elections, notification.
[1]
Any elections, notifications or designations made by a member
pursuant to the provisions of the DROP shall be made, in writing,
and filed with the Board in a time and manner determined by the Board
under rules uniformly applicable to all employees similarly situated.
The Board reserves the right to change from time to time the manner
for making notifications, elections or designations by members under
the DROP if it determines after due deliberation that such action
is justified in that it improves the administration of the DROP. In
the event of a conflict between the provisions for making an election,
notification or designation set forth in the DROP and such new administrative
procedures, those new administrative procedures shall prevail.
[2]
Each member or retiree who has a DROP account shall be responsible
for furnishing the Board with his current address and any subsequent
changes in his address. Any notice required to be given to a member
or retiree hereunder shall be deemed given if directed to him at the
last such address given to the Board and mailed by registered or certified
United States mail. If any check mailed by registered or certified
United States mail to such address is returned, mailing of checks
will be suspended until such time as the member or retiree notifies
the Board of his address.
(i)
Benefits not guaranteed. All benefits payable to a member from
the DROP shall be paid only from the assets of the member's DROP
account, and neither the City nor the Board shall have any duty or
liability to furnish the DROP with any funds, securities or other
assets except to the extent required by any applicable law.
(j)
Construction.
[1]
The DROP shall be construed, regulated and administered under
the laws of Florida, except where other applicable law controls.
[2]
The titles and headings of the subsections in this section are
for convenience only. In the case of ambiguity or inconsistency, the
text, rather than the titles or headings, shall control.
(k)
Forfeiture of retirement benefits. Nothing in this section shall
be construed to remove DROP participants from the application of any
forfeiture provisions applicable to the system. DROP participants
shall be subject to forfeiture of all retirement benefits, including
DROP benefits.
(l)
Effect of DROP participation on employment. Participation in
the DROP is not a guarantee of employment and DROP participants shall
be subject to the same employment standards and policies that are
applicable to employees who are not DROP participants.
BB.
Prior fire service. Unless otherwise prohibited by law, and except as provided for in Subsection A, the years or fractional parts of years that a member previously served as a firefighter with the City during a period of previous employment and for which period accumulated contributions were withdrawn from the fund, or the years and fractional parts of years that a member served as a firefighter for any other municipal, county or special district fire department in the State of Florida, shall be added to his years of credited service provided that:
(1)
The member contributes to the fund an actuarially determined amount
so that the crediting of the purchased service does not result in
any cost to the fund plus payment of costs for all professional services
rendered to the Board in connection with the purchase of years of
credited service.
(2)
Multiple requests to purchase credited service pursuant to this subsection
may be made at any time prior to retirement.
(3)
Payment by the member of the required amount shall be made within
six months of his request for credit, but not later than the retirement
date, and shall be made in one lump sum payment upon receipt of which
credited service shall be given.
(4)
The maximum credit under this subsection for service other than with
the City of South Pasadena shall be five years of credited service
and shall count for all purposes, except vesting and eligibility for
not-in-line-of-duty disability benefits. There shall be no maximum
purchase of credit for prior service with the City of South Pasadena
and such credit shall count for all purposes, including vesting.
(5)
In no event, however, may credited service be purchased pursuant to this section for prior service with any other municipal, county or special district fire department, if such prior service forms or will form the basis of a retirement benefit or pension from another retirement system or plan as set forth in Subsection O(12)(b).
[Amended 1-12-2016 by Ord. No. 2015-08]
CC.
Reemployment after retirement.
[Added 4-9-2019 by Ord.
No. 2019-02]
(1)
Any retiree who is retired under this system may be reemployed by
any public or private employer, and may receive compensation from
that employment without limiting or restricting in any way the retirement
benefits payable under this system. Notwithstanding the previous sentence,
reemployment by the City shall be subject to the limitations set forth
in this subsection.
(2)
After normal retirement. Any retiree who is retired under normal
retirement pursuant to this system and who is reemployed as a firefighter
after that retirement and, by virtue of that reemployment, is eligible
to participate in this system, shall upon being reemployed discontinue
receipt of benefits. Upon reemployment, the retiree shall be deemed
to be fully vested and the additional credited service accrued during
the subsequent employment period shall be used in computing a second
benefit amount attributable to the subsequent employment period, which
benefit amount shall be added to the benefit determined upon the initial
retirement to determine the total benefit payable upon final retirement.
Calculations of benefits upon retirement shall be based upon the benefit
accrual rate, average final compensation, and credited service as
of that date and the retirement benefit amount for any subsequent
employment period shall be based upon the benefit accrual rate, average
final compensation (based only on the subsequent employment period),
and credited service as of the date of subsequent retirement. The
amount of any death or disability benefit received as a result of
a subsequent period of employment shall be reduced by the amount of
accrued benefit eligible to be paid for a prior period of employment.
The optional form of benefit and any joint pensioner selected upon
initial retirement shall not be subject to change upon subsequent
retirement except as otherwise provided herein, but the member may
select a different optional form and joint pensioner applicable to
the subsequent retirement benefit.
(3)
Any retiree who is retired under normal retirement pursuant to this
system and who is reemployed by the City after that retirement and,
by virtue of that reemployment is ineligible to participate in this
system, shall, during the period of such reemployment, continue receipt
of benefits during any subsequent employment period.
(4)
After early retirement. Any retiree who is retired under early retirement
pursuant to this system and who subsequently becomes an employee of
the City in any capacity shall discontinue receipt of benefits from
the system. If by virtue of that reemployment, the retiree is eligible
to participate in this system, the retiree shall be deemed to be fully
vested and the additional credited service accrued during the subsequent
employment period shall be used in computing a second benefit amount
attributable to the subsequent employment period, which benefit amount
shall be added to the benefit determined upon the initial retirement
to determine the total benefit payable upon final retirement. Calculations
of benefits upon retirement shall be based upon the benefit accrual
rate, average final compensation, credited service and early retirement
reduction factor as of that date and the retirement benefit amount
for any subsequent employment period shall be based upon the benefit
accrual rate, average final compensation (based only on the subsequent
employment period), and credited service as of the date of subsequent
retirement The amount of any death or disability benefit received
as a result of a subsequent period of employment shall be reduced
by the amount of accrued benefit eligible to be paid for a prior period
of employment. The optional form of benefit and any joint pensioner
selected upon initial retirement shall not be subject to change upon
subsequent retirement except as otherwise provided herein, but the
member may select a different optional form and joint pensioner applicable
to the subsequent retirement benefit. Retirement pursuant to an early
retirement incentive program shall be deemed early retirement for
purposes of this subsection if the member was permitted to retire
prior to the customary retirement date provided for in the system
at the time of retirement.
(5)
After disability retirement.
(a)
Subject to Subsection CC(5)(b) below, any retiree who is retired under Subsection H, Disability ("disability retiree"), may, subject to Subsection CC(5), physical examination requirement, of that section, be reemployed by any public or private employer, and may receive compensation from that employment without limiting or restricting in any way, the retirement benefits payable under this system.
(b)
Any disability retiree who subsequently becomes an employee
of the City in any capacity, except as a firefighter, shall discontinue
receipt of disability benefits from the system for the period of any
such employment.
(6)
Reemployment of terminated vested persons. Reemployed terminated
vested persons shall not be subject to the provisions of this Subsection
until such time as they begin to actually receive benefits. Upon receipt
of benefits, terminated vested persons shall be treated as normal
or early retirees for purposes of applying the provisions of this
Subsection and their status as an early or normal retiree shall be
determined by the date they elect to begin to receive their benefit.
(7)
DROP participants, retirees who were in the Deferred Retirement Option
Plan shall, following termination of employment after DROP participation,
have the options provided for in this section for reemployment.
DD.
Supplemental benefit component for special benefits; Chapter 175
share accounts.
[Added 12-10-2019 by Ord.
No. 2019-07]
There is hereby established an additional plan component to
provide special benefits in the form of supplemental retirement, termination,
death and disability benefits to be in addition to the benefits provided
for in the previous sections of this plan, such benefit to be funded
solely and entirely by Chapter 175, Florida Statutes, premium tax
monies for each plan year which are allocated to this supplemental
component as provided for in § 175.351, Florida Statutes.
Amounts allocated to this supplemental component ("share plan"), if
any, shall be further allocated to the members and DROP participants
as follows:
|
(1)
Individual member share accounts.
The Board shall create individual "member share accounts" for
all actively employed plan members and DROP participants and maintain
appropriate books and records showing the respective interest of each
member or DROP participant hereunder. Each member or DROP participant
shall have a member share account for his share of the Chapter 175,
Florida Statutes, tax revenues described above, forfeitures and income
and expense adjustments relating thereto. The Board shall maintain
separate member share accounts, however, the maintenance of separate
accounts is for accounting purposes only and a segregation of the
assets of the trust fund to each account shall not be required or
permitted.
(2)
Share account funding.
(a)
Individual member share accounts shall be established as of September 30, 2019 for all members and DROP participants who were actively employed as of October 1, 2018. Individual member share accounts shall be credited with an allocation as provided for in the following Subsection DD(3) of any premium tax monies which have been allocated to the share plan for that plan year, beginning with the plan year ending September 30, 2019.
(3)
Allocation of monies to share accounts.
(a)
Allocation of Chapter 175 contributions.
[1]
Effective as of September 30, 2019, the amount of any premium
tax monies allocated to the share plan shall be allocated to individual
member share accounts as provided for in this subsection. Members
retiring (or entering DROP) on or after October 1, 2018 and prior
to September 30, 2019 shall receive an allocation. In addition, all
premium tax monies allocated to the share plan in any subsequent plan
year shall also be allocated as provided for in this subsection. Available
premium tax monies shall be allocated to individual member share accounts
at the end of each plan year on September 30 (a "valuation date").
[2]
On each valuation date, each current, actively employed member
of the plan not participating in the DROP, each DROP participant and
each retiree who retires or DROP participant who has terminated DROP
participation in the plan year ending on the valuation date (including
each disability retiree), or beneficiary of a deceased member (not
including terminated vested persons) who is otherwise eligible for
an allocation as of the valuation date shall receive a share allocation
as follows:
[3]
The total funds subject to allocation on each valuation date
shall be divided equally among those persons eligible for an allocation
and allocated to the member share account of those eligible for an
allocation.
[4]
Reemployed retirees shall be deemed new employees and shall
receive an allocation based solely on the credited service in the
reemployment period.
(b)
Allocation of investment gains and losses.
On each valuation date, each individual member share account
shall be adjusted to reflect the net earnings or losses resulting
from investments during the year. The net earnings or losses allocated
to the individual member share accounts shall be the same percentage
which is earned or lost by the total plan investments, including realized
and unrealized gains or losses, net of brokerage commissions, transaction
costs and management fees.
Net earnings or losses are determined as of the last business
day of the fiscal year, which is the valuation date, and are debited
or credited as of such date.
For purposes of calculating net earnings or losses on a member's
share account pursuant to this subsection, brokerage commissions,
transaction costs, and management fees for the immediately preceding
fiscal year shall be determined for each year by the investment consultant
pursuant to contracts with fund managers as reported in the custodial
statement. The investment consultant shall report these annual contractual
fees to the Board. The investment consultant shall also report the
net investment return for each manager and the net investment return
for the total plan assets.
(c)
No right to allocation.
The fact of allocation or credit of an allocation to a member's
share account by the Board shall not vest in any member, any right,
title, or interest in the assets of the trust or in the Chapter 175,
Florida Statutes, tax revenues except at the time or times, to the
extent, and subject to the terms and conditions provided in this subsection.
(d)
Members and DROP participants shall be provided annual statements
setting forth their share account balance as of the end of the plan
year.
(4)
Forfeitures.
Any member who has less than 10 years of credited service and who is not otherwise eligible for payment of benefits after termination of employment with the City as provided for in Subsection DD(5) shall forfeit his individual member share account or the nonvested portion thereof. Forfeited amounts shall be redistributed to the other individual member share accounts on each valuation date in an amount determined in accordance with Subsection DD(3)(a).
(5)
Eligibility for benefits.
Any member (or his beneficiary) who terminates employment as
a firefighter with the City or who dies, upon application filed with
the Board, shall be entitled to be paid the value of his individual
member share account, subject to the following criteria:
(b)
Termination benefit.
[1]
In the event that a member's employment as a firefighter is terminated by reason other than retirement, death or disability, he shall be entitled to receive the value of his share account only if he is vested in accordance with Subsection I.
[2]
Such payment shall be made as provided in Subsection DD6.
(6)
Payment of benefits.
If a member terminates employment for any reason or dies and he or his beneficiary is otherwise entitled to receive the balance in the member's share account, the member's share account shall be valued by the plan's actuary on the next valuation date as provided for in Subsection DD(3) above, following termination of employment. Payment of the calculated share account balance shall be payable as soon as administratively practicable following the valuation date, but not later than 150 days following the valuation date and shall be paid in one lump sum payment. No optional forms of payments shall be permitted.
(7)
Benefits not guaranteed.
All benefits payable under this Subsection DD, shall be paid only from the assets accounted for in individual member share accounts. Neither the City nor the Board shall have any duty or liability to furnish any additional funds, securities or other assets to fund share account benefits. Neither the Board nor any Trustee shall be liable for the making, retention, or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the member share account balances, except due to his or its own negligence, willful misconduct or lack of good faith. All investments shall be made by the Board subject to the restrictions otherwise applicable to fund investments.
(8)
Notional account.
The member share account is a notional account, used only for
the purpose of calculation of the share distribution amount. It is
not a separate account in the system. There is no change in the system's
assets, and there is no distribution available to the member or DROP
participant until the member's or DROP participant's termination
from employment. The member or DROP participant has no control over
the investment of the share account.
(9)
No employer discretion.
The share account benefit is determined pursuant to a specific
formula which does not involve employer discretion.
(10)
Maximum additions.
Notwithstanding any other provision of this subsection, annual additions under this subsection shall not exceed the limitations of § 415(c) of the Code pursuant to the provisions of Subsection O(11).
(11)
IRC limit.
The share account distribution, along with other benefits payable
from the system, is subject to limitation under Internal Revenue Code
§ 415(b).
[Amended 11-15-1988 by Ord. No. 88-30]
There is hereby assessed, imposed and levied
on every insurance company, corporation or other insurer now engaging
in or carrying on, or which shall hereafter engage in or carry on
the business of property insurance, as shown by the records of the
Insurance Commissioner of the State of Florida, an excise or license
tax in addition to any license tax or excise tax now levied by the
City, which tax shall be in the amount of 1.85% of the gross amount
of receipts of premiums from policy holders on all premiums collected
on property insurance policies covering property within the corporate
limits of the City.
All money derived from the taxes imposed by § 180-10 hereof is hereby appropriated to the Pension Fund of the Fire Department of the City which shall be administered, payable and collected in accordance with the provisions of F.S. § 175.021 et seq., providing for the creation and administration of a firefighters' relief and pension fund in certain towns and cities.
The tax assessed and imposed by § 180-10 hereof shall be in addition to all taxes now levied by the City.
The license or excise tax herein levied shall
be due and payable on the first day of March of each year hereafter.[1]
[1]
Editor's Note: Former § 180-14,
Amount of monthly retirement, as amended, was repealed 1-9-2001 by
Ord. No. 2000-05.