01-25-2001 - SpecialAgenda/Pension
1-25-01
ACTION AGENDA
Board of Trustees of the Employees' Pension Fund
SPECIAL MEETING - January 25, 2001
1. Call to Order - 9:03 a.m.
2. Request for membership in Pension Plan - Police Chief Sidney Klein & Deputy Chief
William Baird - Baird's request tabled; Klein's request denied.
3. Adjourn - 9:34 a.m.
\0\
s ?
0
Clearwater
U
Interoffice Correspondence Sheet
TO: Paul O'Rourke, Human Resources Administrator
/KO
FROM: William O. Baird, Deputy Chief - Services Bureau
COPIES: File
SUBJECT:
DATE:
City Pension Plan
January 24, 2001
As of this date, I would like to table my request to be included in the city's
Pension Fund.
I do take exception to the opinion offered by Steve Cypen.
WOB/jm
SEnLM? r`'
,l,
99??+rt:a`?`??
Trustees of the
Employees' Pension Plan
Agenda Cover Memorandum
Agenda Item #
Meeting Date: 1/25/01
SUBJECT/RECOMMENDATION: Police Chief Sidney Klein and Deputy Police Chief William Baird be
denied membership in the City of Clearwater Employees' Pension Plan.
? and that the appropriate officials be authorized to execute same.
SUMMARY:
On May 30, 2000, a letter was received from Andra Dreyfus, attorney for Sidney Klein, Police Chief,
requesting that he be allowed to participate in the City of Clearwater Employees' Pension Plan. The
request was predicated upon the Chief's request to participate in the Police Supplemental Pension Plan
to which lie has made application on numerous occasions. Various opinions received over the years
indicate that Chief Klein cannot participate in the supplemental pension plan unless he is a member of
a defined benefit plan such as the City of Clearwater Employee's Pension Plan.
On June 14, 2000, Ms. Dreyfus submitted a letter requesting that Deputy Police Chief William Baird
also be allowed to participate in the City of Clearwater Employees' Pension Plan.
At the same time that Ms. Dreyfus submitted the Chief's request to join the Employees' Pension Plan,
she also wrote to the City Attorney indicating a possible conflict of interest with the City's pension
attorneys, Christiansen & Definer, providing an opinion as to Chief Klein's and Deputy Chief Baird's
eligibility since this firm also represents the Police Supplemental Pension Plan. Scott Christiansen had
previously rendered an opinion as to the Chief's ineligibility for participation in the supplemental plan.
The Trustees appointed Stephen Cypen from the law firm of Cypen & Cypen to render an opinion on
these requests.
On January 11, 2001, Stephen Cypen appeared before the Pension Advisory Committee to address his
written opinion provided via letters dated October 5, 2000, and December 22, 2000. Mr. Cypen's
opinion was that neither Chief Klein nor Deputy Chief Baird are eligible to participate in the City of
Clearwater Employees' Pension Plan based on the fact that by signing numerous Employment
Agreement Letters, they both voluntarily opted not to participate and accepted the alternative
retirement provisions available to them. Based on Mr. Cypen's opinion, the Pension Advisory
Committee denied the requests of both Chief Klein and Deputy Chief Baird to participate in the City of
Clearwater Employees' Pension Plan.
This matter now comes before the Pension Trustees for their consideration.
Reviewed by: Originating Dept: Costs
Legal NA Info Tech NA Debbie Ford/Human Resources Total
Budget NA Public Works NA User Dept. Funding Source:
Purchasing NA DCM/ACM Caplial limrovemenl Current Fiscal Year
Risk Mgmt NA Other NA Attachments: Legal Opinions opera""s
Various Letters Other
Appropriation Code:
Submitted by: 0 None
r
City Manage
PriMrvt nn rpevrtrd naner aPw_ 2/QN
iw ld. l w i. - C-u ... i i L.n c1 1.111 L-n i I1 rn'I 1 Drank-n j f-L -7 (4 f BOG l4a ( f "i . bz?) I-1161d;e
r
-r
LAW OFFICES
CYPEN & CYPEN
P. O. BOX 402099
MIAMI BEACH, FLORIDA 33140.0099
823 ARTHUR 3oDFR6Y ROAD
October 5, 2000
Trustees of the City of Clearwater
Employees' Pension Fund
loo south Myrtle Avenue
post office Box 4748
Clearwater, Florida 33758-4748
Re: City of Clearwater Employees'
Pension Fund - Our File No. 13888
Dear Trustees:
M IAM 1 (305)932-3200
BROWARP (954) 6L•E - 3200
TELECOr1ER (305) S36.0050
You have requested our opinion as to whether or not Police Chief
Sidney R. Klein and Deputy Police Chief William O. Baird, or either
of them, are entitled to be included in the City of Clearwater
Employees' Pension Fund ("Plan"), and if so, as of what date.
In rendering our opinion, we have examined the City of Clearwater
Code Provisions that establish the City of Clearwater Employees,
Pension Fund and the following documents:
As to Sidney R. Klein:
(1) Letter Agreement dated December 5, 1980
(2) Letter Agreement dated November 10, 1992
(3) Letter Agreement dated October 1, 1994
(4) Amendment to Employment Letter Agreement
dated September 30, 1997
(5) Letter Agreement dated August 7, 1998
(6) Letter dated May 30, 2000 from Andra Todd
Dreyfus, P.A. to Mr. Paul O'Rourke
1 U/ MW M 1 : dd UYrrtN & I.YF- kN M 1 HM 1 BEACH, FL -? 727 562 4877 NO.625 P003
Trustees of
Employees'
Page Two
the City of Clearwater
Pension Fund
October 5, 2000
As to William O. Baird:
(1) Letter Agreement dated January 5, 1993 (A
handwritten notation thereon indicates
that said letter agreement was revised on
10/1/94, but we do not have a copy of
that document.)
(2) Letter Agreement dated January 22, 1998
(in duplicate)
(3) Letter dated June 14, 2000 from Andra
Todd Dreyfus, P.A. to Mr. Paul O'Rourke
Section 2.393 of the Code defines "participant" as any eligible
employee of the employer who has commenced participation and is
contributing under the plan. The same section defines "employee"
to exclude employees exempt -from the employer's civil service
classified service system (unclassified employees) for whom an
employment agreement letter establishes conditions of employment.
For purposes of this opinion, we will assume that said definitions
were the same as of December 5, 1980, January S, 1993 and January
22, 1998.
For the reasons that follow, it is not necessary to determine if
"unclassified" police officers otherwise meeting the statutory
definition of police officer can be excluded from a pension plan
for police officers.
Chapter 185.15, Florida Statutes (1997), provided:
Any person who enters the employment of any
incorporated municipality of the state as a
police officer after July 31, 1953, and who
does not desire to accept the provisions of
this chapter shall, within twelve months after
employment, notify the officer or board paying
the salary of such pol ice .officer, in writing,
to that effect. Thereupon, it shall be the
duty of the board of trustees to refund from
the municipal police officers' retirement
trust fund the full amount, without interest,
CYPEN S, CYPEN
10.."Ob/ 0 15:28 CYNEN & CYPEN M I RN I BERCH, FL -> 727 562 4877 N0.625 P004
Trustees of
Employees'
Page Three
the City of Clearwater
Pension Fund
October 5, 2000
withheld from such police officer's salary and
deposit it into such fund. Thenceforward no
withholding shall be made from such salary and
all such police officers who have given such
notice shall be barred from participating in
the retirement system. On March 12, 1999,
Chapter 99-1, Florida Statutes, became law.
Section 55 thereof repeals Section 185.15,
Florida Statutes. Such repeal, however, does
not effect prior elections made thereunder.
All of the above-referenced. letter agreements evidence an intent
and desire not to accept the provisions of Chapter 185, Florida
Statutes, and of the City of Clearwater Employees' Pension Fund.
Each letter contains a detailed list of terms and conditions,
including benefits to be provided to the employee. In the case of
Sidney R. Klein, all agreements subsequent to December 5, 1980
specifically provide that the employee is not covered by the city
Pension Plan.
Therefore, in our opinion, neither Sidney R. Klein nor William O.
Baird is entitled to be included in the City of Clearwater
Employees' Pension Fund.
If you require any further information, please do not hesitate to
ask.
Sincerely yours,
CYPEN & CYPEN
?r
ephen H. C en
For the Firm
SHC: jes
Via Fax and Regular Mail
CYPEN & CYPEN
ANDRA TODD DREYFUS, P.A.
LAW OFFICES
1463 Gulf To Bay Blvd.
CLEARWATER, FLORIDA 33755
ANDRA T. DREYFUS
JON A. JOUBEN
June 14, 2000
Mr. Paul O'Rourke
Human Resources Director
ATTN: Debbie Ford
112 S. Osceola Avenue
Clearwater, FL 33758
JUN 16 2000
TELEPHONE: (727) 442-1144
FACSIMILE: (727) 446-4407
email: atdlawrirm@aol.com
RE: William O. Baird - City of Clearwater Pension Application
Dear Ms. Ford:
This firm represents Deputy Chief William O. Baird. He hereby.requests inclusion in the City of
Clearwater General Employee's Pension Plan to be effective retroactive to his date of hire as
Deputy Police Chief. Pursuant to Florida Statutes, Chapter 185, Deputy Chief Baird should have
been included in this plan upon his transition to the Police Department. It would appear that
Deputy Chief Baird was wrongfully excluded from the plan and to correct this error, he should be
admitted into the plan immediately. Please place this item on the agenda for the next PAC
meeting.
Please forward to me any documentation to effectuate this request. I would appreciate a call
from you at your earliest opportunity so that we might better coordinate this process.
Thank you.
Very truly yours,
ANDRA TODD DREYFUS, R.K.
r lAndra T. Dreyfus
ATD:dlb
cc: Deputy Chief William O. Baird
ANDRA TODD DREYFUS, P.A.
LAW OFFICES
1463 Gulf To Bay Blvd.
CLEARWATER, FLORIDA 33755
ANDRA T. DREYFUS
JON A. JOUBEN
TELEPHONE: (727) 442-1144
FACSIMILE: (727) 446-4407
email: atdlawrirm@aol.com
May 30, 2000
Mr. Paul O'Rourke
City of Clearwater
Human Resources Director
112 S. Osceola Avenue
Clearwater, FL 33758
RE: Chief Sidney R. Klein
Dear Mr. O'Rourke:
C, i WN
MIQ
ou
This firm represents Chief Sidney R. Klein, Chief of Police, City of Clearwater. Chief Klein has
been employed as Chief of Police for approximately 18 years and on numerous occasions has
requested to be included in the City of Clearwater General Employees' Pension Plan. The Chief
has received other retirement benefits from the City, but nonetheless desires to be included in the
General Employees' Pension Plan. Florida Statutes, Chapter 185, governs pension benefits
payable as a result of a sworn police officer's employment in that capacity. Chief Klein clearly
falls within the definition of § 185.02(7) and is eligible for inclusion in the plan. Please consider
this Chief Klein's formal request for inclusion in the General Employees' Pension Plan.
I would appreciate a reponse from you no later than June 15, 2000.
Ve ly yours,
D TODD DREYFUS .
Andra . Dreyfus
ATD:dlb
cc: Chief Klein
Pamela K. Akin, Esq.
J UL-eb-Z00W Ud :.52 l 1 l Y H I I UrT;?_- Y ' S UI-F-1 fi=t= 7275624021 P.01/01
ANDRA TODD DREYFUS, P.A. \\
LAW OFFICES
1463 Gulf To Bay Blvd.
CLEARWATER, FLORIDA 33755
ANDRA T. DREYFUS
JON A. JOUBEN
TELEPHONE: (727) 442.1144
FACSIMILE: (727) 446-4407
email: atdlawfirm9aol.com
May 30, 2000
PERSONAL AND CONFIDENTIAL
Pamela K. Akin, Esq.
City Attorney's Office
P.O. Box 4748
Clearwater, FL 33758-4748
Dear Ms. Akin:
As you are aware, this firm represents Sidney R. Klein, Chief of Police, City of
Clearwater. Chief Klein has made a request to be included in the City of Clearwater
General Employees' Pension Plan.
It is my understanding that Scott Christiansen of the firm of Christiansen & Dehner, P.A.
represents both the General Employees' Pension Plan as well as the Supplementary
Pension Plan. Mr. Christiansen has already taken a position opposing Chief Klein's
participation in the Supplementary Pension Plan absent his inclusion in the General
Employees' Plan. We have directed a request to Paul O'Rourke to include the Chief in
the General Employees' Plan. It would appear that Mr. Christiansen and his firm have a
conflict with respect to further representation of either Plan in connection with the
Chiefs request to be included therein. As the Chief intends to vigorously pursue this
matter, we would appreciate you giving your immediate attention to resolving this
conflict and seeking other counsel in this matter. It is our current intent to file a
declaratory judgment action in this matter.
Thank you.
Very truly yours,
AN TODD DREYFUS P.A.
7Tra. Dreyfus
ATD:dlb
cc: Chief Sidney R. Klein
Post-It* Fax Note 7671 oatc .) - Ac"
To Z ., From
Co./ at r I co.
Phone # Phone q
Fax k ; 2 -7 Fax
rClTat- P. l_u
LAW OFFICES
CYPEN & CYPEN
P. 0. BOX 402099
MIAMI BEACH. FLORIDA 33140.0099
82S ARTHUR GODFREY ROAD
December 22, 2000
Trustees of the City of Clearwater
Employees' Pension Fund
100 South Myrtle Avenue
Post Office Box 4748
Clearwater, Florida 33758-4748
Re: City of Clearwater Employees'
Pension Fund - Our File No. 13888
Dear.Trustees:
M IAM 1 (305) 532 - 3200
BROWARD(954)S22-3200
TELECOPIER (305) S3S - 0050
Enclosed please find corrected opinion. letter dated October 5,
2000.
In reviewing the original letter, we noticed a nonsubstantive
typographical error on Page 3, wherein the statutory quote
inadvertently includes text that is part of our opinion.
We also take this opportunity to summarize our opinion: even if
Chief Klein and Deputy Chief Baird ever had the opportunity to be
included in the City of Clearwater Employees' Pension Plan, they
voluntarily chose not to participate. Thus, the issue of their
initial eligibility is moot.
Sincerely yours,
CYPEN & CYPEN
Stephen Cypen
For the Firm
SHC:jes
LAW OFFICES
CYPEN & CYPEN
P. O. BOX 402099
MIAMI BEACH. FLORIDA 33140.0099
82S ARTHUR GODFREY ROAD
CORRECTED
October 5, 2000
Trustees of the City of Clearwater
Employees' Pension Fund
100 South Myrtle Avenue
Post Office Box 4748
Clearwater, Florida 33758-4748
Re: City of Clearwater Employees'
Pension Fund - Our File No. 13888
Dear Trustees:
MIAMI (305) 532 - 3200
BROWARD(954)522.3200
TELECO PIER (305) S3S - OOSO
You have requested our opinion as to whether or not Police Chief
Sidney R. Klein and Deputy Police Chief William O. Baird, or either
of them, are entitled to be included in the City of Clearwater
Employees' Pension Fund ("Plan"), and if so, as of what date.
In rendering our opinion, we have examined the City of Clearwater
Code Provisions that establish the City of Clearwater Employees'
Pension Fund and the following documents:
As to Sidney R. Klein:
(1) Letter Agreement dated December 5, 1980
(2) Letter Agreement dated November 10, 1992
(3) Letter Agreement dated October 1, 1994
(4) Amendm ent to Emp loyment Letter Agreement
dated September 30, 1997
(5) Letter Agreement dated August 7, 1998
(6) Letter dated May 30, 2000 from Andra Todd
Dreyfu s, P.A. to Mr. Paul O'Rourke
Trustees of the City of Clearwater
Employees' Pension Fund
Page Two
October 5, 2000
As to William O. Baird:
(1) Letter Agreement dated January 5, 1993 (A
handwritten notation thereon indicates
that said letter agreement was revised on
10/1/94, but we do not have a copy of
that document.)
(2) Letter Agreement dated January 22, 1998
(in duplicate)
(3) Letter dated June 14, 2000 from Andra
Todd Dreyfus, P.A. to Mr. Paul O'Rourke
Section 2.393 of the Code defines "participant" as any eligible
employee of the employer who has commenced participation and is
contributing under the plan. The same section defines "employee"
to exclude employees exempt from the employer's civil service
classified service system (unclassified employees) for whom an
employment agreement letter establishes conditions of employment.
For purposes of this opinion, we will assume that said definitions
were the same as of December 5, 1980, January 5, 1993 and January
22, 1998.
For the reasons that follow, it is not necessary to determine if
"unclassified" police officers otherwise meeting the statutory
definition of police officer can be excluded from a pension plan
for police officers.
Chapter 185.15, Florida Statutes (1997), provided:
Any person who enters the employment of any
incorporated municipality of the state as a
police officer after July 31, 1953, and who
does not desire to accept the provisions of
this chapter shall, within twelve months after
employment, notify the officer or board paying
the salary of such police officer, in writing,
to that effect. Thereupon, it shall be the
duty of the board of trustees to refund from
the municipal police officers' retirement
trust fund the full amount, without interest,
CYPEN & CYPEN
Trustees of the City of Clearwater
Employees' Pension Fund
Page Three
October 5, 2000
withheld from such police officer's salary and
deposit it into such fund. Thenceforward no
withholding shall be made from such salary and
all such police officers who have given such
notice shall be barred from participating in
the retirement system.
On March 12, 1999, Chapter 99-1, Florida Statutes, became law.
Section 55 thereof repeals Section 185.15, Florida Statutes. Such
repeal, however, does not effect prior elections made thereunder.
All of the above-referenced letter agreements evidence an intent
and desire not to accept the provisions of Chapter 185, Florida
Statutes, and of the City of Clearwater Employees, Pension Fund.
Each letter contains a detailed list of terms and conditions,
including benefits to be provided to the employee. In the case of
Sidney R. Klein, all agreements subsequent to December 5, 1980
specifically provide that the employee is not covered by the City
Pension Plan.
Therefore, in our opinion, neither Sidney R. Klein nor William O.
Baird is entitled to be included in the City of Clearwater
Employees' Pension Fund.
If you require any further information, please do not hesitate to
ask.
Sincerely yours,
CYPEN & CYPEN
N
St en H. Cype?
For the Firm
SHC: jes
CYPEN & CYPEN
Chronology of Chief Klein's Request to Join Supplemental Pension Plan
9/24/59 Attorney General Opinion Re: Supplemental Plan
1/24/68 Letter from Ralph Johnson
1/26/68 Attorney General Opinion Re: Muncipal Officer's Retirement Plan
12/5/80 Police Chief Sidney Klein's Original Employment Contract
1/27/82 Memo from Richard Greisinger, Asst. City Attorney
9/13/82 Letter from Richard Greisinger w/Attachments
3/10/82 Letter from W. W. McDougall, Insurance Agent
9/8/82 Letter from J. Kaplan to City Attorney Requesting Opinion on Eligibility
3/28/85 Memo to File Re: Marvin Clayton's (Dept. of Insurance & Treasury) Opinion
4/25/85 Memo from Robert Walker, Police Legal Advisor
5/31/85 Letter from Chief Klein to Marvin Clayton w/Proposed Ordinance Change
6/14/85 Memo from Ray Kaminskas to Police Chief
6/17/85 Letter from Sid Klein to Marvin Clayton w/Recommended Changes to Ordinance
7/26/85 Letter from Marvin Clayton
9/9/92 Letter to Lee Dehner Encloses the Above Records
3/15/99 Letter from Andra Dreyfus to William Sedrick Requesting Chief Klein's Issue
be put on agenda for Supplemental Pension Plan's meeting of 3/19/99.
4/21/99 Letter from Scott Christiansen to Florida Division of Retirement
4/26/99 Letter from Scott Christiansen to Florida Division of Retirement
5/5/99 Letter to Scott Christiansen from Florida Division of Retirement
5/6/99 Letter to Scott Christiansen from Florida Division of Retirement
5/26/99 Letter from Scott Christiansen to Andra Dreyfus
1/26/00 Letter to Scott Christiansen from Florida Division of Retirement w/ attachment
September 24, 1959
Honorable J. Edwin Larson
Insurance Commissioner
Tallahassee, Florida
Re: Policemen pension and retirement
funds; insurance premium taxes
Dear Mr. Larson:
059-190
S. T. '59-15
Replying to your recent request for an opinion of this
office upon substantially the following questions:
1. May the insurance premium taxes imposed
pursuant to section 185.08, Florida SU-atu-
tee, be paid into a general municipal
pension and retirement fund held for the
benefit of all municipal officers and
employees, including policemen?..
2. If the answer to the first question is in
the negative, then may such insurance premium tax
funds be paid into a general municipal officers
and employees retirement fund if separate ac-
counts are maintained so that such premium
takes will be used entirely for the payment
of pensions and retirement pay to policemen
only?
3. What assurances must be made to the insur-
ance commissioner to justify payment of the
insurance tax funds, derived under section
185.08, Florida, Statute s, to the retirement
fund?
Those municipal corporations in this state which have
a "lawfully established police officers' retirement fund or
city fund providing pension or relief benefits to policemen,
by whatever name known," may impose the insurance premium
taxes mentioned in section 185.08, Florida statutes, for the
uses and purposes therein mentioned. It is deemed advisable
that we consider the nature and legal status of retirement
compensation paid to public officers and employees; such
compensation is in law withheld or delayed compensation for
services rendered prior to retirement "and are not regarded
as extra or increased compensation" (State v. Lee, 157. Fla.
r
t"
Honorable J. Edwin Larson
Page #2
059-190
62, 24 So. 2d 798, text 801). The legislature has, by section
185.0 1, Florida Statutes, found and declared that municipal
police officers act in a dual capacity and perform "both
state and municipal functions: that they make arrests for
violations of state tra c -laws on public highways; that
they keep the public peace," and for that reason "it is a
proper and legitimate state purpose to provide a uniform re-
tirement system for the benefit of police officers ."
This same dual state and local purpose is also recognized
in section 210.03, Florida Statutes, authorizing the levy and
use of cigarette taxes by municipalities for the purposes
therein mentioned. In other words, the duties of municipal
police officers are dual in nature; they serve a state and
local.purpose.
Although the prosisions of article IX of the Florida
constitution contemplate that exclusively state functions be
financed through state taxation, and exclusively local func-
tions through local taxation (Mathews v. Amos, 09 Fla. 1,
126 So. 308; Palm Beach County v. State, 99 Fla. 379, 126 So.
36o) the functions of a dual nature' both state and local) may
be financed by appropriate taxatio.-i-(Mathews v. Amos, supra).
Although the taxes imposed under section 185.08 are imposed
through municipal tax levies, the insurers are given credit
therefor on like state taxes imposed. The tax imposed is by
statute earmarked for a dual state and local purpose and may
not be used.for a purely local purpose..-Funds derived from
such taxes are earmarked for the use and benefit of retired
municipal police officers,_and not for retired municipal
officers and employees generally.
Municipal officers and employees of" the City of Pensa-
cola within the purview of chapters 26141, 31160 and 57-2073,
acts-of 1949, 1955 and 1957, are not all officers and employees
performing a dual state and minicipal function; many of them
perform only a local or municipal function; officers and
employees who perform merely a municipal or local function
are not within the purpose and intention of chapter 185,
Florida Statutes. Funds derived from taxes imposed pursuant
to section 185.08, Florida Statutes, upon insurance premiums
are earmarked for the police officers of said municipality
performing a dual state and municipal or local purpose, and
not to those officers and employees performing only a munici-
pal or local purpose. Such funds are earmarked for use in
providing retirement compensation for police officer per-
forming a dual state- and local purpose but not those perform-
ing local functions only. nis being true such funds may not
be used, either directly or indirectly, in providing retire-
ment compensation for other than police officers performing
a dual state and local function. The first question must,
therefore, be answered in the negative, and the funds
x ..
I?
Honorable J. Edwin Larson
Page #3
059-190
therein mentioned may not be used for the benefit of general
employees.
This brings us to the second question which would seem
to permit of an affirmative answer, provided such an arrange-
ment would be permitted under applicable statutes and the
municipal charter of Pensacola. We find nothing in above
mentioned chapters 26141, 31160 and 57-2073, acts of 1949,
1955 and 1957, expressly authorizing such internal accounting
and the maintenance of separate control accounts for the
police members of the retirement system set up by said acts
and for other members of such retirement system. Even if
such an arrangement should be adopted it would have to con-
form to the requirements of the court's decree in Philpot v.
City of Pensacola, of January 8, 1959, a copy of which
appears in your files.
Section 185.03, Florida Stat
incorporated city or town, when act
"a secial fund to be known as the
fund' of such city or town, to be u
making of retirement compensation p
to chapter 185, Florida Statutes.
proceeds from the insurance premium
185.08, Florida Statutes, and other
185.07, Florida Statutes. Except w
elects to come-under the federal•ol
ance program, or under both.a gener
plan and--under the plan provided by
tea, the policeman is required to c
ates, establishes in each
Lvated by such city or town,
police officers' retirement
Bed exclusively for the
iyments under. and pursuant
Chas fund consists of the
tax authorized by section
items mentioned in section
sere a police officer
U age and survivors insur-
i1 municipal retirement
chapter 185, Florida Statu-
)ntribute five Der cent of
his salary as such policeman; however, if he elects to come
under the federal program, or under an existing municipal
retirement plan, as well as under chapter 185, Florida Statu-
tes, he will receive a reduced retirement. compensation under
chapter 185 (see subsection 2, section 185.16, Florida Statu-
tes).
However, notwithstanding what has been said above, sec-
tion 185.35, Florida Statutes, permits a municipality to set
up its own retirement plan for policemen, which "plan must be
for the purpose of providing retirement and disability income
for policemen." When "a municipality has a policemen's retire-
ment plan" which meets the standards set forth in said section
185.35, the income from the "premium tax in section 185.08"
may be placed "in its existing pension fund for the sole and,
exclusive use of their policemen . . . or may use said income
to pay extra benefits to the policemen." The extra benefits
mentioned appear to be those mentioned in subsection (2) of
sections 185.07 and 185.16, Florida Statutes; that is benefits
in addition to social security or under existing general muni-
cipal pension plan. Although the policeman may elect to come
Honorable J. Edwin Larson
Page #4
059-190
under federal social security, or under his municipality's
regular retirement plan, the statutes require that the proceeds
from the insurance premium taxes imposed under section 185.08
must at all times be'segregated from the' eneral funds of the
municipal retirement system so a only the po cemen will
receive the benefits to -be derived from such tax funds. This
leads to the* conclusion that tax funds derived under section
185.08, Florida Statutes, must at all times be segregated
from other funds. Even if funds derived from insurance premium
taxes might be deposited in the fund maintained for general
retirement, such premium taxes must be segregated by an ade-
quate control account so that they will be used for the benefit
of policemen. only. This is true even though the municipality
maintains its own penison plan under and pursuant to section
185.35, Florida Statutes. We see no requirement in the statu-
tes that would prevent moneys derived from section 185.08,
Florida Statutes, being kept in a general bank deposit pro-
vided proper control accounts be kept and* maintained so that
there will be a separation of the funds derived from said
section from all other funds in such deposit and so that such
funds will at all* times be available for the purposes intended
by chapter 185, Florida Statutes. In other•words, an account
_ within an account, as is sometimes kept in the general and
other funds in the state treasury. In such an account the
balance in the said general deposit could never be reduced
below the unused funds derived. from section 185.08, Florida
Statutes, without a violation of chapter 185, Florida: Statutes.
_ The views here expressed.appear to be in line with the decree
in Philpot_v. Pensacola, supra., These observations answer the
second question in the affirmative; provided the accounting
a op a is such as will mainta n a segregation of the funds
derived from the taxes imposed under section 185.08 and the
contributions made by the policemen, from other funds at all
times, and prevent their use for other than the benefit of the
said policemen.
As a condition to the paying over of tax funds derived
from taxes imposed pursuant to section 185.08, Florida Statu-
tes,•the insurance commissioner must require that satisfactory
assurance be given that such funds, as well as contributions
made by the policemen to the fund, be kept segregated at all
times in the manner aforesaid and are being used strictly in
accordance with the requirements of chapter 185, Florida
Statutes. A detailed comparison of any ordinance designed
to establish the municipality's own pension and retirement
plan for policemen, should be made with section 185.35, and
it be determined whether or not there is compliance with
said section 185.35• It is the duty of the municipality,
when it elects to come under said section 185.35, to comply
therewith, and until such an ordinance has been adopted the
question of compliance with said section is moot. These
Honorable J. Edwin Larson 059-190
Page #5
observations answer the third question as well as it may here'
be answere .
Sincerely,
/s/RICHARD W. ERVIN
Richard W. Ervin
Attorney General
Prepared by:
/s/FRED M. BURNS
Fred M. Burns
Assistant Attorney General
phe
.' _ January 24,• 1968
•Tot , Jailers ;and Dispatchers
:Fromt .• 'Ralph Johnson, secretary of Retirement Board
Reg Decision of Retirement Board.on meeting on January 22.
Tt'is of the opinion of tho City Attorney that all jailers and
• Dispatchers are eligible t6 come,undur thb state retirement.
The board has asked the City Attorney to contact the Attorney
General 'for one last decision. As soon 'as we hear from the
Attorney General we will notify you in writing as to the
decision of the Attorney General and the Retirement Board.
Respectfully,
__• Ralph Johns '
M ??? Secretary of Retirement Board ,
RJ/J P
%
1
t ,
i
,\•_?•„ 'Ali CLOT.
' + t?
\
,
ATTORNEY GENERAL
STATE OF FLORIDA
i
26, 19G6
Janus ,
'
\f • .
'. Trt CAPITOL
•
, ?? WCNCMCG \nc8 TA MASSCC. /LOAiDA
I I
t ' . Honorable Spencer D. Gill:ort ?. I
.. City Attorney (
City• of Fort Pierce •.
? .
l i
+ Post Office Box 3366 \•
!i F
t+ Fort Pierce, Florida
Dear Kr. Gilbert:
?. You have asked if- a city *polico dispatcAer is
• I' entitled to participate in a municipal officers' retire- !
' ment fund under Chapter 16S, Florida Statutes. : ?.
That statute defines a police officer *s any
' full-limo police officer who receives compensation from
I municipal funds of any incorporated municipality of
i I thin stato for services rendered. Such police officers i
i ! are entitled to the benefits o-.a municipal police - t.
., i officers' retirement trust 'fund. of the municipality
which thoy serve.
In Headlev vs. Sharpe; Fla., 138 So. 2d 53741
1
I•
,. it is pointed out that a police officer may include a, i
! desk sergeant, a booking, office= or a' prison guard
- matron and thus be entitled t6-the bcnefito of their
local municipal retirement fund as created by Chapter I i
-,? 185, Florida Statutes. " . s
!.
Certainly a..c3.ty po.1: co dicpat. cho.r-.would como f?
well within tho l?iCa Of. of t.%%e
word "police officer- as laid daw-a ui h;Ln trhat.,opirion.
` Sincerely,
• EAXL F?.IRCLOTci
•
, Attorney General
! ,
-? ?' •? CITY OF FORT P1 E nCE 11_27_67
I I ?.
'
is
i' I
INTEROF
, OA7E:
FICE 11EM0RANOV
r r
f,,l
'
i '• 70.
Reg: Retirement Fund ( State) :..
` '
'
' ' ?i
'•. ?'
•' ?' 136 - '' '• ? ,
,. .? , .
,
Southern Reporter,
: , '
..
r
I•
• ?' •, : Series ?
2nd
•
' ? ,?',,? ? ? ?? ? '
'• ? ' ,`
' i?
. •.
;
•
6 .?,. r
` : ,r . ,I
i page 53 - ..
Heddley verses Sharp
Chief
'
.
?, ?r •
. 1962 case o Miami •' , \y :I? ' I , . '
Dispatchers can-b
and
' elong:,.
I
• Jailors ' •
the-gate Retirement. ' ;; ,,:,: ,. I
BY the courts. .
. • .
I
December 5. 1980 '
Mr. Sidney R. t+lcia •
P. O. Now 446
Indies wills, Colorado 80434
Dear Sidi
This letter. is a Mllov-up to our pbone mivere•tions of loot weep in crrna of
q offeriat the poaitsob of faolicn Ch of for tur City of Clearwater. Tirst.
lat as say that I an eatteasly Pleased vlt:R your acceptance, and I know charm you
sill make as macelleot Chief for the City. I kmw that I speak for all. Including
the rolice Departnant. wbets I say that we sere anxious to have you arrive is Clear-
water geld look forward to vofkiag with you.
1) salary $38.000 anau&tly.
2) lensioo. Ccct%ibotioa of 6Z in addition to ti.* annual salory will be prcvtded
o W*f$TTed toapeosatiop program of your choice.
3) Social ieeatity. City will pay the co7loyeris share of Social Security.
4) Hlaloi' M0410 d Iusvrasee. City 4111 coetr!buts your Qost while: you will be
tsgndred to PAY the osat !oe your farily wbich is cultemcly $25.27 bi-•eer!y.
The 90-4ey vaitUM period will be waived and you and your family will be
eOvered from the day you report to work in Clearwater.
5) Liss lamoraaae. Tbe.City will contribute up to tLe equivalent it IT of your
svalutl 64asy. Got to exceed a total of % of tt'a cost for life iaaurtuce. on
your life. &=%ally.
6) Vacation. You *we entitled to two (I) veak9 vacation froze coameaeermot
o work.
7) Sick Leave. Ton will be granted a lose of up to fifteen (45) dare. if needed.
dories Tone first year of. work; tasrvatter, you will accmnUte fifteen (IS)
days annually,. There is no maximum old whet ynu why accrue:
ZO 39Vd SINV3983S 3QISM1NQ9 _' ????` 86 g5 6T:11 00OZ/61/10
wr. Sid-Jay a. Klein
?.caw?ar S, 1980
?ago Two
8) Seraraces 4sx. The City currently does not provide sariTente pay for
dipArtaant heads; however, I vill review this program and look at the
poaaibility of iuplananciug sane type of Cite-wide police during the na:c
year.
9) .yo.inS Coda. the Cicp Will pay pour cote of moving to include packing.
moving, and uopaektns of bow ehold goods. coat of hotels, saal.s, and travel
for you and your family's, relocation.
10) Aucowbile. The City will provide an automobile to be utilised ;or both
buminssa Sod perraaal use with a certain amunt of disevation.
You should have received by now the information on the International CIL7 Kanagars'
Association Deferred Compensation program. I have not heard back yst concerning
the Kapok Tvaval Trailer Fork and the ability to set you in for approalatetal7 one
ucuth during January. I rill gat back to you on this.
I an a>?act-U& your arrival soar :im arvvwd the first of Janaat7, with the
arrival date to be before Jane IS, 1981.
I vieh to reiterate my p:aasure yn•: acceptance -)f this job, and I am looking
foriard to v:nrUrt& with you to the future.
plaaaa sign at the bottom of this latter if the conditinoa outlinad above are
acceptable to you. and return rho original co ue. I have attached s copy for
you to keep for your records.
very truly yours,
Anthony L. Shoemaker
City Kaaager
I accept the position of Chief of Police for the City of Clearwater. ?lorida, vich
the Condition" u outlived w'LZ^e.
Signature V O^to
PA ?ht?d S1NV39dDS 30ISAd1r J - -1 '86Zb-Z9S 5t :c t 9?3??L/f; I/ ts3
CIiY OF CLEARWATER
Interdep+rtment Correspondence Sheet
TO: Betty Ward - Police Department
FROM: Richard Griesinger, Assistant City Attorney
COPIES:
SUBJECT: Eligibility of Chief Klein to Enter
Clearwater Police Supplemental Pension Fund
DATE: January 27, 1982
Attached are copies of Marvin Clayton's response to my letter to him
concerning, among other items, the eligibility of Chief Kelin to enter the Clearwater
Police Supplemental Pension Plan. Mr. Clayton states that Chief Klein is not eligible.
Please distribute the copies to the board members for review.
Richard Griesinger
RG:jmp
Attachments
r?
m "O
°
O7
r
m
_
n -M C-)
w mnrn
-v rr _
C.o
r---)
,11?`iSEA? eil?
C I T Y OF C L E A R IV A T E R
POST OFFICE BOX 474 B
CLEARWATER. FLORIDA 33518
September 13, 1982
J. Shelby Kaplan, CLU
Manager, Pension Services Division
Provident Life & Accident Insurance Company
Chattanooga, Tennessee 37402
Dear Mr. Kaplan:
In response to your letter of September 8 to Mr. Bustin
regarding the eligibility of Chief Klein to enter the Supplemental Pension
Plan, I have enclosed the following correspondence: (1) my letter to the
Police Supplemental Board concluding.that Chief Klein is eligible for
participation; (2) a letter to Marvin Clayton, Chief of the Municipal Police
Officers' Retirement Trust Fund (Office of Insurance Commissioner),
requesting his opinion; and (3) his reply that Chief Klein was ineligible to
participate. I provided the Board with a copy of Mr. Clayton's letter and
the Board followed Mr. Clayton's opinion.
If you have any questions or comments, feel free to contact me.
Sincerely,
Richard Griesinger
Assistant City Attorney
RG:jmp
Enclosures
cc: Mayor and Other Trustees
• of Police Supplemental Pension Plan
"Equal Employment cnd Affirmative Action Erna;o.e
TO:
FROM:
COPIES:
SUBJECT:
DATE:
iTY OF CLEARWATER
Inlardepartment Correspondence Sheet
Mayor and Other Trustees of Police Supplemental Pension Plan
Richard Griesinger, Assistant City Attorney
Eligibility of Police Chief Sid Klein to
Enter Police Supplemental Pension Plan
September 17, 1981
Chief Klein will be eligible to enter the Clearwater Police Supplemental
Pension Plan on September 17, 1982. According to the current booklet "Your
Retirement Plan," "all permanent, full time police officers, with one year service..."
are eligible to enter the City's police pension plan on the anniversary date of the plan
(September 17).
Although Chief Klein is not a member of the City's general employee's
pension plan, he is eligible to enter the police pension plan. There is no requirement in
either Chapter 185, Florida Statutes entitled "Municipal Police Officers Retirement
Trust Fund," or Clearwater Code sections 26.65 through 26.81 inclusive - the City's
own police pension plan - that a Clearwater policeman be a member of the City's
general employees' pension plan to receive benefits under the Police Pension Plan with
the following exception: A policeman may not receive early retirement benefits,
pursuant to Clearwater Code Section 26.76(b)(1), unless a police officer officially
retired under the City's general employee's pension plan.
z .
Richard Griesinger.
Assistant City Attorney
RG:jmp
cn
r"
rv oo?-
r .•? r n
t-, n
r? fimz
..? S p rn
? T
November 3, 1981
Mr. Marvin B. Clayton
Director of Municipal Police
Officers' Retirement Trust Fund
Office of Insurance Commissioner
Larsen Building Room 331
Tallahassee, Florida 32304
Dear Mr. Clayton:
I request your opinion of whether either a "Chapter 185, Fla. Stats.
police pension plan" or o"Fla. Stat. 185.35 police pension plan" requires that it be
"supplemental" to a city's general employees' pension plan. Although the City of
Clearwater uses the term "supplemental" as part of its police pension plan, Chapter
185 nowhere refers to the term. Where a police officer is already a participant of
his city's general pension plan, his membership in another pension plan (police
pension) would, of course, be "supplemental." Query: Although the City of
Clearwater's police pension plan may be "supplemental" to the City's general
employee pension plan, must it be so? If it is a prerequisite, please provide the
specific statutory reference in support of your opinion.
I also request your opinion as to whether an appointed police chief falls
within the definition of a "police officer" under Fla. Stat. 185.02(1) and may partici-
pate in either of the above plans. If you opine that an appointed chief cannot
participate, again please provide specific statutory authority.
Thank you for your assistance.
Sincerely,
Richard Griesinger
Assistant City Attorney
RG:jmp
cc: Clearwater Mayor Charles LeCher, Chairman
of Clearwater Police Supplementary Pension Fund
. ? 'r s= z
STATE TREASURER
INSURANCE COMMISSIONER
FIRE MARSHAL
THE CAPITOL
TALLAHASSEE 32301
January 11, 1982
Mr. Richard Griesinger
Assistant City Attorney
P. 0. Box 4748
Clearwater, FL 33518
Dear Mr. Griesinger:
Please f ind enclosed Attorney General Opinion 59-190,
which I believe will clarify your question as to how Chapter
185 monies may be used.
Your second question as to whether an appointed Police
Chief falls within the definition of a "police officer" is best
answered as follows. Throughout the history of Chapter 185,
all police retirement plans must strictly follow the provisions
of Chapter 185 in its entirety or a "Supplemental" plan which
would be allowed under the provisions found in Chapter 185.35.
There is no requirement that the word supplemental be used, but
there are requirements as to how the monies may be used.
I have a copy of the ICMA pension plan of which Chief
Kline. is a member. The ICMA plan is a deferred compensation
system that does not meet the requirement found in Chapter
185.35 (1) (g) , therefore, I do not believe that Chief Kline may
participate in any plan funded by Chapter 185 monies unless
the City would place him in the current General Employees pension
plan of the City of Clearwater.
If this off ice can be of assistance, please let me know.
Sincerely,
i
Marvin B. Clayton, Bureau Chief
Municipal Police Officers'
Retirement Trust Fund
PLBC:pfs
cc: Mayor Charles LeCher
. ,> ..
CLEARWATER POLICE SUPPLEMENTARY PENSION FUND MINUTES OF MEETING
HELD AUGUST 28, 1981.
A meeting of the Board of Trustees was held on Auust 28, 1981, in
the police Conference Room, Police Department, 644 Pierce Street,
Clearwater, Florida.
The following Trustees were present:
Charles F. LeCher, Chairman
Sid Klein, Secretary
Donald Hibbard
William Sedrick
Ray Kaminskas
Also present were Richard Griesinger, Assistant City Attorney, and
Betty Ward, secretary to Police- Chief Sid Klein.
Mayor LeCher called the meeting to order at 11:30 F.M. and called for
approval of the minutes of the meeting held July 13, 1981. Donald
Hibbard made a motion that the minutes of the meeting held July 13,
1981 be approved. Motion seconded by William Sedric}:. Motion carried
unanimously.
The second item on the agenda concerned maturity of certain certificates
of deposit. Betty hard reported that the following_ CD's would be
maturing in September, 1981.
Biscayne Federal September 3, 1951 $40,000
Biscayne Federal September 4, 1981 $30,000
Freedom Savings September 17, 1981 $50,000
aergeant Kaminskas advised that monies were needed to pay the invoice
to Provident for life insurance oremium renewals for all present
participants, and made a motion that the CD's at Biscayne Federal
and Freedom Savings be withdrawn at maturity. Motion seconded b•.'
William Sedrick. Motion carried unanimously.
item number three on the agenda was invoice from Bank of Clearwater
for safe deposit box rental at Bank of Clearwater. William Sedrick
made a motion that the invoice be approved for payment. Motion
seconded by Donald Hibbard. Motion carried unanimously.
Item number four on the agenda was an invoice from Providen?
Insurance Company in the amount of $130,155.73 covering life
insurance premium renewals for all present participants. Donald
Hibbard made a motion that the invoice be approved Tor payment.
Motion seconded by iav Kaminskas. Motion carried unanimously.
item number five on the agenda concerned legal matters. Richard
Griesinger, Assistant City Attorney, made a -report on the following
Items: +
1. Review o= :aster Contract rmendmer.t anc booklet
submit:.e- by Provident - Mr. Griesincei• _eco; ^h?nCei. that
Clearwater Police Supplementary Pension Fund
Minutes of Meeting held August 28, 1961
Page 2
Ed Sever and Associates, the City's consulting firm, review
in-depth the contract and booklet. lie stated that Scour and
associates should report back to him in about one week.
2. Legal Opinion regarding retired Captain David Panossian's
request relative to future benefits to which he would be
entitled on his official retirement date of March 8, 1982.
Mr. Griesinger stated that there would be nothing in the
Statute which would permit Captain Panossian taking over his
own insurance policies. Th owner of the policies is the
Board of Trustees. This is not allowed under the ordinance.
The money has to flow through the Board. He may do whatever
he wishes with the lump sum settlement. Chief Klein asked
if the Board could have this opinion in writing. Mr.
Griesinger said that he will furnish the Board a written
opinion.
3. Review of eligibility of Police Chief Sid Klein to
participate in the Police Supplementary Pension. Chief
Klein asked the Board if they would prefer that he left the
meeting during the discussion of this item. Richard Griesinger
felt that this would not be necessarx and the Board acreed.
Richard Griesinger advised that under the Statute and the
ordinances, he could find nothing which would prohibit Chien
Klein from participating in the Police Supplementary Pension.
The criteria is one rear's service as of the anniversary date
of the plan. Chief Klein would be eliaibie to participate
as of September 17, 1982. Chief Klein asked if the Board
could have this opinion in writing. Mr. Griesinger stated
that he w_11 furnish the Board a written opinion. Mr.
Griesinger advised the Board that a motion was not needed in
this case, that Chief Klein could become a member k_chout a
Motion.
4. Review of subject of vested rights - M=. Griesinger sated
that he would submit a written opinion on this matter when
completed. He recommended that perhaps some of the wording
in Section 26.76 of the City Code is not clearly defined,
and should possibly be changed. Mayor LeCher suggested
that the City Attorney submit ordinance changes to the
Board for approval prior to forwarding them :
L-o the Cite
Commission. +
item number sir: on the aaenda was a review of internal Revenue
Service tax form number 4972 (Special Ten Year Averaging Method)
for lump sum distributions. Chief Klein reported that retired
.r
Minutes of August 28, ;1 meeting - Police Supp1E ntary Pension
Page 3
police Chief Frank Daniels and retired Sergeant, Charles Hayden
have asked the board to complete the employer portion of IRS tax
corm Number 4972 dealing with "Lump Sum Distributions". Jeffrey
Butler, Assistant City Manager, has assigned David Curtis of
his office to work with Betty Ward in completing the form. In
reviewing the tax form, there is one question Mr. Butler would
recommend the board seek the advice of the tai; department of
Price Waterhouse, the 'city's auditors. The question to be
resolved is, "Does the Supplementary Police Pension qualify as
a lump sum distribution?" The cost of an opinion from Price
Waterhouse, if any cost, would be small according to David
Curtis. Sgt. Kaminskas made a motion that the Finance Director
refer the tax form question to Price Waterhouse tax department.
y;otion seconded by Donald Hibbard. Motion carried unanimously.
There being no further business, the meeting was adjourned at
12:15 P.M.
Respectfully submitted,
/?(??
SID KLEIN, Secretary,
Board of Trustees
CITY vF CLEARWATE R
Interdepartment Correspondence Sheet
TO: All Board Members, Clearwater Police Supplementary
Pension Fund
FROM: C?
Sid Klein, Chief of Police 7'
COPIES:
File
SUBJECT: Board of Trustees Meeting To Be Held July 13, 1981
DATE:
June 26, 1981
There will be a board of trustees meeting July 13, 1981 at
10:00 A.M. in the police conference room.
Find attached copies of the following documents pertaining
to the Police Supplementary Pension.
1. Master Pension Trust Contract Number GWL-7976
currently in affect (since 1959).
2. Master Pension Trust Contract Number GIIL-7976
containing proposed AMENDMENT, prepared and
submitted to the Board of Trustees by Provident
Life and Accident Insurance Company.
3. Information Booklet titled, "Your Retirement Plan"
prepared by Provident Insurance with the assistance
of the board of trustees (has not been updated
since the Lump Sum Settlement Ordinance was amended
in 1979) .
4. Booklet titled, "City of Clearwater Supplementary
Police Pension and Retirement" prepared by the
Provident Life and Accident Insurance Company, with
a recommendation that it replace the old booklet.
The following legal matters will also be discussed at the
meeting.
1. Vested Rights
2. Chief Klein's Eligibility To Enter Plan
3. Verbal inquiry from retired Captain David
Panossian to Trustee t:aminskas with regard
to retiree being allowed to receive all of
his life insurance policies at date of
retirement and borrow against said policies
from Provident Insurance Company.
,• Y
r
PROVIDENT
LIFE AND ACCIDENT
ew
C NAT TAN OOIS A, T EN N ES SE E 37402
' „•.111 •/
••1•••11•IIU 11/1111/
?•u?•nn?r,,•11111
r?.lll?
Tllr? •
S 1 N C E 11 t 7
McDOUGAL AGENCY, INC. SUNCOAST VILLAGE OFFICE CENTER
w. W. McDOUGAL. General Agent 3000 34TH STREET • SOUTH
SUITE B • 203
ST.PETERSBURG .FLORIDA 33711
Telephone. 181:J) 866GG-0\650
l ? •
?i'xJ
all
PROVIDENT
LIFE AND ACCIDENT
C H A T T AN O O G A, T E N N E S S E E 3 7 4 0 2
MCDOUGAL AGENCY, INC.
W. W. McDOUGAL. General Agent
March 10, 1982
Sid Klein, Chief of Police
Clearwater, Florida
Dear Sid:
rrrrrr"`;
..,.•1'r?...rrrrrl
..,.,,.n' rrrrrrrrr
ISO q
r??tTrrr?' '
S I N C E 11/ 7
SUNCOAST VILLAGE OFFICE CENTER
3000 34TH STREET . SOUTH
SUITE B •203
ST. PETERSBURG. FLORIDA 33711
Telepnon.: (8131866-0650
There is nothing to bar you being a participant in the Clearwater
Police Supplementary Pension Plan.
Chapter 185 says, any full time Police Officer certified by the
Chief of Police shall be eligible. You could probably certify yourself,
but it should be done through.a resolution introduced by Mayor LcCher,
Chairman of the Board of Trustees, by the City Commission.
Participating in the Supplementary Police Pension Plan is not
contingent of being in the City Pension Plan, which you were eligible
to be a member, and elected not to participate. You were, by law, an
informal member of the Supplementary Plan when you became Chief of
Police, January, 1981. You will become a formal member eligible for
insurance after one year of service on the anniversary date of the
formal plan, September 17, 1982.
You have met all the criteria of being a Full Time Police Officer,
age, eligibility for the City of Clearwater Pension Plan, power to
make arrests, etc.
A simple resolution by the City Commission will erase any doubt
of your being eligible.
Looking forward, to taking your application this coming September.
Sincerely,
cc: Mayor LeCher
PROVIDENT
LI FE &ACCI DENT
INSURANCE COMPANY
September 8, 1982
Mr. Tom Bustin
City Attorney
City of Clearwater City Hall
Clearwater, FL 33516
Subject: Sidney Klein, Chief of Police
Dear Mr. Bustin:
The Provident provides administrative service for the Supplemental Pension
Plan for the Police Officers.
Mr. Sidney Klein has satisfied the service requirements to enter this plan,
yet we understand he is not to be brought into it.
The former Chief of Police, Mr. Frank Daniel, was a member of the plan..
We would appreciate your comments concerning whether or not Mr. Klein
should be brought into the plan. We see no reason that he is ineligible.
Cordially yours,
J. Shelby Kaplan, CLU
Manager, Pension Services Division
JSK/bjs /
cc: W. W. McDougal V
March 28, 1985
Cindy yav(? mr a nc)tf_ to call Marvin Clayton, which 1 )ust did.
His mes!;age is a.,;
On Page 3, Sections 26.70 (a3) under Uet in i t ions he has a prublem
with you being eligible to participate in the Plan as long as you
are in 1CMA and not the General Employees' pension.
He said the proposed ordinance change would not accumplish this
either.
He cited a few sections of the proposed ordinance which tie had a
problem with as follows:
1. Page 7 - Section 26.72 Power and Authority - go down to the
last paragraph and remove the word "investment" and refer to
it as "independent processional council and/or secretarial-
clerical work." Marvin Clayton said if you luck yourself in
with only hiring investment counselors then you can't dire an
attorney or someone to do any other jobs for you. Only an
investment counselor.
2. Page 8 where it relates to job-related disability should
say, "total and permanent disability".
3. 26.74 - on page 8 - a. where it say, "11 a participant after
ten years, etc.etc. - he said the only way a participant can
get early retirement UNLESS IT IS REDUCED BY 3% OR MORE is
by death or permanent disability. This would be 3% or
whatever percentage the board wants, per year, for each yr.
under normal retirement date. (this would be in accordance
with the General pension plan which is 20 years at any age.
4. 26.73 on page 7 - the self-insurance part needs to be
clarified. He said you can't share the pot and have
someone die, where does the self insurance come from?
He said you could say "he shall have in addition to a share,
etc.etc.
He said he would be happy to discuss this further if you or
Captain Kaminskas wish to call him. He also is aware that your
letter said someone from here might come to Tally for an
appointment with him.
Marvin Clayton's number is: 7-(904) 6365
TO :
FROM:
AeR ?; ? 51 AID bJ
CITY OF CLEARWATEn
Interdepa, tment Correspondence Sheet
Members of Police Supplementary Pension Board
Robert G. Walker, Jr., Police Legal Advisor
COPIES: Mayor Kathy Kelly, Ohief Sid Klein, Captain Ray
Kaminskas, Ptl. Bill Sedrick, Donald Hibbard, Frank
Kowalski.
SUBJECT: Eligibility of Chief of Police as Share Plan Member
DATE: April 24, 1985
I spoke with Marvin Clayton on the phone today. As you are
aware, he is the chief of the Bureau of Municipal Police Officers
Retirement Trust Fund, and his office is located in Tallahassee.
He appeared to be knowledgeable with regard to the various plans
which he oversees and administers.
It is Marvin Clayton's position that eligibility in the
supplementary pension plan is contingent upon eligibility in a
general pension plan. The word "supplemental" would seem to lend
credence to this position. The I.C.M.A. Deferred Compensation.
Plan, of which the chief is a member, is a defined contribution
system, rather than the defined benefit system whir is
required by Florida Statute 185.35.
The plan which the supplementary pension plan supplements must be
one which provides retirement and disability income for police
men. The I.C.M.A. plan does not provide disability income.
Further, eligibility for either the supplementary or general plan
must be based upon length of service, attained age, or both.
Participation in the I.C.M.A. does not require either.
Marvin Clayton stated that there is no prohibition against a
chief belonging to both a general pension plan and the I.C.M.A.
deferred compensation plan. Obviously, the I.C.M.A. is nothing
more than a deferred economic benefit which provides no
short-term insurance protection. It is not considered a pension
plan at all. In order to qualify for the supplementary pension
plan, the chief would have to be eligible to participate in the
general pension plan. That, in all probability, would require
an amendment to the city charter and/or civil service rules.
I have not abandoned my research in this area, but I now
understand Mr. Clayton's position with regard to excluding the
chief of police from participation in the supplementary pension
plan, however mod_iCLid. If in fact participation and eligibility
are contingent upon inclusion within the classified civil
service, I perceive an inherent obstacle.
RGW/mjg
I spoke to Marvin Clayton on April 5, 1985, to discuss
problems he saw in our proposed Share Plan Ordinance. The
affected areas are:
1. Page 3 Sec.26.70 - Definitions (a) 3. Police Officer.
States Chief Klein is still not eligible due to being in
I. C. M. A. and not the General Employees Pension Plan.
2. Page 7 Sec.26.72 - Power and Authority of Board of
Trustees (e) 3.
Recommends changing the word "investment" and
substituting "independent professional counsel and/or
secretarial-clerical wee
3. Page 7 Sec.26.73 - Death/Disability Benefits
States you cannot have a Share Plan and be self-insured.
If you want insurance, you can either use part of the
fund to purchase term insurance in the amount of $50,000
for all participants, or have each member contribute one
to two percent of his salary to purchase a group term
policy.
4. Page 8 Sec.26.73 - Death/Disability Benefits
First sentence on top of page should be changed to read:
"Upon satisfactory proof of total and permanent job
related disability to function as a police officer to
the board of trustees, etc."
5. Page 8 Sec.26.74 - Separation Benefits (a)
States the only way a participant can get early
retirement without death or disability is to reduce the
amount the employee would get by three percent or more
for each year the employee is away from his normal
retirement date.
C.'UAnWATER IIIVAII]MENi 01 ruuCE ROUTING SLIP
2. 4.
Aciiots no-jutted: PLEASE
7r6ca Date- I I Nnlr and Furwanl In Frh•s
'C- SQ Oct - ?-o I;v?A0.\).r,J CLl??; o •J •-,.?D ?M . ?i-?.
FIpT; r U.1.;
to: ,
$eelf'11nnr me flc All+thrJ
( ( For Your Cuufnlenls and Suggestions
Prepare Reilly lug
$rpnafure
( I Note and Ilclurn
C01111cl and Ileluru
( ( $anJ Me Inlurnlafrun Ilrquued to Answer
( ( AlfenJ to I I Uu(1f 4llached MI•r.l with Ynur
Apuravall
As tricoluellell
I ? As Per f.unvrrsahun
For Ynur $lynalure, II Yuu Apprnvr
I (1'n Insuucuun
'For Ynur Inlnrrnalipn
I ( free Yntif Review
I ? Inlllal and F mwarJ
Cummmf t:
0
Nit A WIN- Q? 01;- a Qtas,?
fl
cAw -NL.;. v8S,
" 6a ?.•I??:t?
Department of Police
Office of Police Chef
City of Clearwater
644 Pierce Street
Clearwater, Florida
33516
813/462/6332
May 31, 1985
Marvin B. Clayton, Bureau Chief
Bureau of Municipal Police Officer's Retirement Trust Fund
Room 214, Larson Building
Tallahassee, Florida 32301
Dear Mr. Clayton,
As you are aware, the Clearwater
process of mortifying our present
Pension Fund from a supplemental
assistance, we have modified our
ordinance. A copy of the propos
review and approval.
Police Department is in the
Clearwater Police Supplementary
fund to a share plan. With your
previously submitted proposed
ad version is attached for your
The following areas were changed by our Police Legal Adviser in
response to your concerns and recommendations made to Captain
Kaminskas on April 5, 1905:
1. Page 3, Section 26.70(a)3. The definition of Police
officer was changed due to the ineligibility of Chief
Klein to be a participant.
2. Page 8, Section 26.72(e)3. Wording changes relating to
broadening the powers of trustees to seek, obtain and
engage outside services and assistance were made.
3. Page 8, Section 26.73. We deleted the provision to be
self-insured and left the death benefit as just the
number of shares in the participant's account at the
time of death. Additionally, the definition of
job-related disability was clarit"ied and expanded.
4. Page 8, Section 26.74(a). Vesting of rights is at
ten (10) years with a three (3) percent per year
penalty for early retirement. The date for normal
retirement is defined in accordance with the City
Pension Plan.
Marvin Clayton, Bureau Chief
Page 2
After you and your staff have had an opportunity to review our
revised proposed ordinance, please contact Captain Ray Kaminskas
(813) 462-6069 and advise him if the ordinance meets your
requirements.
I thank you for your comments and suggestions regarding our
endeavor and look forward to your continued assistance in the
future. If you have any questions, please free to contact me.
Sincerely,
<.'/C Ltc ,,?
Sid Klein
Chief of Police
SK_cm
Attachment
ORDINANCE
AN ORDINANCE TO PROVIDE FOR MUNICIPAL POLICE OFFICERS
PENSION PLAN IN ACCORDANCE WITH CHAPTER 185 ACTS OF
FLORIDA, PROVIDING FOR THE MODIFICATION OF A POLICE
OFFICERS PENSION FUND; PROVIDING THAT ALL MONEYS RECEIVED
BY THE CITY OF CLEARWATER UNDER THE PROVISIONS OF CHAPTER
185 ACTS OF FLORIDA, BE PAID INTO SAID FUND; CREATING A
BOARD OF TRUSTEES FOR THE ADMINISTRATION OF SAID FUND;
PROVIDING FOR MEANS OF CREDITING ACCUMULATED FUNDS TO THE
ACCOUNTS OF INDIVIDUAL POLICE OFFICERS; PROVIDING FOR
DISBURSEMENTS AND PAYMENT OF BENEFITS FROM SAID FUND; AND
PROVIDING FOR REPEAL OF ORDINANCES OR PORTIONS OF
ORDINANCES WHICH ARE IN CONFLICT; PROVIDING FOR AN
EFFECTIVE DATE.
BE IT ORDAINED BY THE COMMISSION OF THE CITY OF CLEARWATER,
FLORIDA:
WHEREAS, The City Commission of the City of Clearwater has
adopted Ordinance No. 26.65 providing for the levy of 18 tax on
premiums for casualty insurance as permitted by Florida Statues
Chapter 185, which Ordinance is currently in effect; and
WHEREAS, The City Commission of the City of Clearwater is
desirous of modifying certain pension benefits for police
officers under the Municipal Police Officer's Pension Trust Fund
as provided for in Florida Statutes Chapter 185;
NOW, THEREFORE, be it ordained by the City Commission of
the City of Clearwater, Florida:
PURPOSE:
Section 1. The purpose of this Ordinance is to implement
the provisions of Chapter 185, Florida Statutes, and to provide
means whereby all sworn full-time police officers of the City of
Clearwater, Florida, may receive benefits from the funds provided
for that purpose by Chapter 185, Florida Statutes. This
Ordinance shall be deemed to supplement any other pension plan of
the City of Clearwater, Florida, insofar as benefits of police
officers are concerned; and nothing herein shall be construed in
any way, to affect the operation of benefits of any other pension
plan of the City of Clearwater, Florida.
Section 2, Chapter 26 is amended as follows:
ADMINISTRATION
ARTICLE V. POLICE PENSION*
Division 1. In General
Sec. 26.65. Excise tax on casualty insurers.
(a) In addition to any other lawful license or excise tax
now levied by the City, an excise or license tax is assessed and
imposed on every insurance company, corporation or other insurer
now engaged in or carrying on, or who shall hereafter engage in
or carry on, the business of casualty insuring as shown by the
records of the state treasurer in his capacity of state insurance
commissioner, in the amount of one per cent of the gross amount
of receipts of premiums from policyholders on.all premiums
collected on casualty insurance policies covering property
within the corporate limits of the city.
(b) The excise or license tax herein provided for shall be
payable and collected in the manner provided for by F.S. Ch. 185.
(c) All moneys received by the City under the provisions of
this section shall be paid immediately into its pension fund;
provided, however, such moneys received hereunder shall be kept
separate and apart from the other moneys of the pension fund, and
the moneys received hereunder shall be used solely for the
payment of amounts to become due policemen and their dependents
and to no other person under the provisions of law governing
pensions within the City.
Division 2. Supplementary Police Pension and Retirement
Sec. 26.70. Definitions.
(a) The following words and phrases are used herein and
unless different meaning is plainly indicated by the context,
shall have the following respective meanings:
1. Board, as used herein, shall mean the Board of Trustees
of the Clearwater Police Officer's Pension Trust Fund, as
provided for herein.
2. City, shall mean the City of Clearwater, Florida.
3. Police Officer, shall mean all sworn members of the
Police Department who are regularly employed by the City of
Clearwater and shall be deemed Police Officers for the purpose of
this Ordinance. The word, Police Officer, shall specifically
exclude "Police Recruit," and any other employee of the Police
Department not employed full-time as a sworn law enforcement
officer.
4. Pension Trust Fund, shall mean the Clearwater Police
Officer's Fund, as provided for herein.
5. Participant, shall mean every police officer of the
City of Clearwater eligible to have monies credited to his or her
share account and to receive benefits therefrom under this
ordinance.
6. Service, shall mean all time served as a regularly
appointed or employed police officer of the City of Clearwater,
for which regular compensation is paid by the City of Clearwater
and all time during which a participant is on military leave in
active military service and subject to the application of Chapter
115, Florida Statutes (1983). It shall include all leaves of
absence with pay, but shall not include leaves of absence during
which no regular compensation is paid by the City of Clearwater,-
except military leave as herein provided.
7. The fiscal year shall be that period from September 17
to the following September 16th, 'both dates inclusive.
8. Net Credit shall mean the amount standing to the
credit of a participant's share account as at the end of the
preceding fiscal year.
(b) Each Participant shall be entitled to one share in the
Fund for each full year of service as a police officer of the
City rendered before and/or after the passage of this ordinance
as of September 17th. Promptly after passage of this Ordinance
the number of full years of service rendered by each Participant
shall be determined and a record thereof shall be made on the
Participant's service record and the Participant shall thereupon
have as many shares as full years rendered, and thereafter each
full fiscal year of service as defined in paragraph 2 (h) hereof
shall add one more share to the credit of each Participant.
(c) The total monies received, including interest earned,
any gifts and the credits forfeited by the Participants, all of
which constitute income to the Fund during each Eiscal year,
shall be allocated and the value of the respective Participant's
shares shall be determined as follows:
1. The Board shall pay all costs and expenses of
management and operation for the fiscal year last ended.
2. The Board shall set aside as much of the income as it
considers advisable as a reserve for expenses for the then
current fiscal year.
3. After deducting the monies called for by paragraphs 1.
and 2., the remaining monies shall be allocated and credited to
the Share Accounts of the respective Participants.
• The number of shares to which each and every Participant is
entitled as at the close of each fiscal year shall be added
together and the total number of shares thus determined shall be
divided into the net amount of money available to be allocated
and credited to the respective share accounts. The amount to be
credited to the account of each Participant will then be
obtained by multiplying the value determined for one (1) share
by the total number of shares to which each Participant is
entitled.
As soon as the monies are received, the value of each
Participant's share shall be calculated and credited to his share
account. Such calculation shall be made and credits allocated
to his share account one only in each fiscal year; and prorations
• shall not be made for a part of the year.
Sec. 26.71. Board of trustees - Created.
There is hereby created a Board of Trustees of the
Supplementary Police Officers' Retirement Fund. The Board of
Trustees shall consist of the Mayor and the Chief of Police of
the City, two (2) regularly employed police officers of the City
to be appointed by the City Commission upon the recommendation of
a majority of the regularly employed police officers of the City,
and one resident of the City, to be appointed by a majority of
the trustees. The Mayor and Chief of Police, respectively, and
upon a vacancy in the Office of Mayor or Chief of Police, their
respective successors shall succeed to the positions of trustees.
Each police officer member of the Board of Trustees shall serve
for a period of two (2) years, unless he sooner leaves the
employment of the City as a police officer, whereupon the
legislative body of the City, upon a recommendation of a majority
of the participant police officers there, shall choose his
successor. The resident members shall serve for a period of two
(2) years. The two (2) police officers and the resident members
may succeed themselves in office and shall continue to serve
• until the successors are duly appointed and qualified. The Mayor
shall be the Chairman of the Board of Trustees. The board
members shall elect any one (1) of its members as secretary of
the board. The secretary shall keep a complete minute book of
the proceedings of the board. The trustees shall not receive any
compensation as such.
Section 26.72. Power and Authority of Board of Trustees
The Board of Trustees shall have power and authority as follows:
To invest and reinvest the assets of the pension fund in:
(a) Time or savings accounts of a national bank, a state
bank insured by the Federal Deposit Insurance Corporation, or a
savings, building and loan association insured by the Federal
Savings and Loan Insurance Corporation;
(b) Obligations of the United States Treasury and agencies
allied with or related to the United States Treasury;
(c) County bonds containing a pledge of the full faith and
credit of the county involved, bonds of the State Development
Commission, or of any other state agency, which have been
approved as to legal and fiscal sufficiency by the State Board
of Administration;
(d) Obligations of any municipal authority issued pursuant
to the laws of this state; provided, however, that for each of
the five (5) years next preceding the date of investment the
income of such authority available for fixed charges, shall have
been not less the one and one-half (1 1/2) times its average
annual fixed charge requirements over the life of its
obligations;
(e) Common stocks, preferred stocks and bonds and other
evidence of indebtedness 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 or any corporation international in charter engaged in
international business and trade, provided:
1. The corporation is listed on any one or more of the
recognized national stock exchanges;
2. All corporate bonds shall carry at least an AA rating
as established either by Standard & Poor's or Moody's;
3. The Board of Trustees shall not invest more than three
(3) per cent of its assets in the common stock or capital stock
of any one issuing company nor shall the aggregate investment on
any one issuing company exceed one per cent of the outstanding
capital stock of that company; nor shall the aggregate of its
investments under this subsection at cost exceed fifty (50) per
cent of the fund's assets.
The trustees of this pension plan and all other persons occupying
a fiduciary position under this article in the administration of
this article and in investing and reinvesting assets of the
pension fund shall utilize and be governed by the prudent man
rule. The trustees in the performance of their duties are
authorized to seek, obtain and engage independent professional
counsel and/or secretarial/ clerical services and advice and to
pay reasonable charges for the service.
Section 26.73 Death/Disability Benefits
If a participant shall die while employed by the City of
Clearwater, his beneficiary or estate shall be entitled to the
accumulations standing to the credit of the deceased participant,
irrespective of the age or years of credited service of the
participant.
Upon satisfactory proof of total and permanent job related
disability, which renders the affected participating member
unable to perform the duties and functions of a Police Officer,
to the Board of Trustees, a participant will be entitled to
• receive his outstanding shares on the date of retirement.
Section 26.74 Separation Benefits
(a) If a Participant shall separate from service, for any
reason whatsoever, after ten (10) or more years under the plan,
he shall be paid the entire amount to his net credit as of the
last preceding fiscal year, reduced by three (3) percent per year
for each year that the employee is short of his normal retirement
date. For the purposes of this plan, normal retirement shall
mean twenty (20) years from date of hire as a Police Officer.
(b) Settlement as provided in subsections (a) of this
Section shall be. in full acquittal of all claims of a Participant
against the Fund, and he shall thereupon cease to be a
Participant.
Section 26.75 Rights and Benefits not Subject to Legal Process
The rights and benefits provided for herein are vested
rights of Participants in the Fund, and shall not be subject to
attachment, garnishment, execution or any other legal process.
Section 26.76 Responsibility of the City
The City of Clearwater shall have no responsibility for the
operation of the special fund except as specified herein and
shall bear no expense in the operation of the special fund.
Section 26.77 Statement of Conflict with F.S.S. 185
If any provision of this ordinance or the plan hereby
created shall conflict with the provisions of Chapter 185, Acts
of Florida, such conflict shall be resolved in favor of the
statutory provisions which are intended to control, and the
conflicting provision of the Ordinance shall be served without
affecting the purpose of this enactment.
Section 26.78 Statement of Conflict with City Ordinances.
An ordinance or any part of any other ordinance in conflict
with any provision contained in this Chapter is hereby repealed.
Section 26.79 Effective Date
This ordinance shall become effective immediately upon the
passage of the City Commission as provided by law and signed by
the Mayor and City Clerk as provided by Ordinance.
Department of Pollce
Office of Ponce Chef
City of Clearwater
644 Pierce Street
Clearwater, Florida
33516
813/462/6332
June 17, 1985
Marvin B. Clayton, Bureau
Bureau of Municipal Police
Room 214, Larson Building
Tallahassee, Florida 32301
Dear Mr. Clayton:
Chief
Officer's Retirement Trust Fund
Based on your telephone conversation with Captain Ray Kaminskas
on June 14, 1985, the definition of Police Officer on Page 3,
Section 26.70 (a) 3. was changed. The attached draft of our
proposed ordinance will, hopefully, meet with your approval.
If the proposed ordinance is approved by you and your staff, we
will present the ordinance to the present plan members for a
`formal vote. If the vote is to change to a share plan, the
proposed ordinance will then be presented to the City Commission
for enactment with an effective date of September 17, 1985.
I thank you for your continued assistance in this matter and look
forward to your office's approval of our endeavor. if you have
any questions, please feel free to contact me.
Sincerely,
Sid Klein
Chief of Police
Attachment
ORDINANCE
AN ORDINANCE TO PROVIDE FOR MUNICIPAL POLICE OFFICERS
PENSION PLAN IN ACCORDANCE WITH CHAPTER 185 ACTS OF
FLORIDA, PROVIDING FOR THE MODIFICATION OF A POLICE
OFFICERS PENSION FUND; PROVIDING THAT ALL MONEYS RECEIVED
BY THE CITY OF CLEARWATER UNDER THE PROVISIONS OF CHAPTER
1B5 ACTS OF FLORIDA, BE PAID INTO SAID FUND; CREATING A
BOARD OF TRUSTEES, FOR THE ADMINISTRATION OF SAID FUND;
PROVIDING FOR MEANS OF CREDITING ACCUMULATED FUNDS TO THE
ACCOUNTS OF INDIVIDUAL POLICE OFFICERS; PROVIDING FOR
DISBURSEMENTS AND PAYMENT OF BENEFITS FROM SAID FUND; AND
PROVIDING FOR REPEAL OF ORDINANCES OR PORTIONS OF
ORDINANCES WHICH ARE IN CONFLICT; PROVIDING FOR AN
EFFECTIVE DATE.
BE IT ORDAINED BY THE COMMISSION OF THE CITY OF CLEARWATER,
FLORIDA:
WHEREAS, The City Commission of the City of Clearwater has
adopted ordinance No. 26.65 providing for the levy of 1% tax on
premiums for casualty insurance as permitted by Florida Statues
Chapter 185, which Ordinance is currently in effect; and
WHEREAS, The City Commission of the City of Clearwater is
desirous of modifying certain pension benefits for police
officers under the Municipal Police Officer's Pension Trust Fund
as provided for in Florida Statutes Chapter 185;
NOW, THEREFORE, be it ordained by the City Commission of
the City of Clearwater, Florida:
PURPOSE:
Section 1. The purpose of this Ordinance is to implement
the provisions of Chapter 185, Florida Statutes, and to provide
means whereby all sworn full-time police officers of the City of
Clearwater, Florida, may receive benefits from the funds provided
for that purpose by Chapter 185, Florida Statutes. This
Ordinance shall be deemed to supplement any other pension plan of
the City of Clearwater, Florida, insofar as benefits of police
officers are concerned; and nothing herein shall be construed in
any way, to affect the operation of benefits of any other pension
plan of the City of Clearwater, Florida.
Section 2, Chapter 26 is amended as follows:
ADMINISTRATION
ARTICLE V. POLICE PENSION*
Division 1. In General
Sec. 26.65. Excise tax on casualty insurers.
(a) In addition to any other lawful license or excise tax
now levied by the City, an excise or license tax is assessed and
imposed on every insurance company, corporation or other insurer
now engaged in or carrying on, or who shall hereafter engage in
or carry on, the business of casualty. insuring as shown by the
records of the state treasurer in his capacity of state insurance
• commissioner, in the amount of one per cent of the gross amount
of receipts of premiums from policyholders on all premiums
collected on casualty insurance policies covering property
within the corporate limits of the city.
(b) The excise or license tax herein provided for shall be
payable and collected in the manner provided for by F.S. Ch. 185.
(c) All moneys received by the City under the provisions of
this section shall be paid immediately into its pension fund;
provided, however, such moneys received hereunder shall be kept
separate and apart from the other moneys of the pension fund, and
the moneys received hereunder shall be used solely for the
payment of amounts to become due policemen and their dependents
and to no other person under the provisions of law governing
pensions within the City.
Division 2. Supplementary Police Pension and Retirement
Sec. 26:70. Definitions.
(a) The following words and phrases are used herein and
unless different meaning is plainly indicated by the context,
shall have the following respective meanings:
1. Board, as used herein, shall mean the Board of Trustees
of the Clearwater Police Officer's Pension Trust Fund, as
provided for herein.
` 2. City, shall mean the City of Clearwater, Florida.
3. Police officer, shall mean all sworn members of the
Police Department who are regularly employed by the City of
Clearwater and shall be deemed Police Officers for the purpose of
this Ordinance. The word, Police officer, shall specifically
exclude "Police Recruit," and any other employee of the Police
Department not employed full-time as a sworn law enforcement
officer, or who is not a member of a pension plan authorized in
accordance with Florida Statutes Chapter 185.
4. Pension Trust Fund, shall mean the Clearwater Police
officer's Fund, as provided for herein.
5. Participant, shall mean every police officer of the
City of Clearwater eligible to have monies credited to his or her
share account and to receive benefits therefrom under this
ordinance.
6. Service, shall mean all time served as a regularly
appointed or employed police officer of the City of Clearwater,
for which regular compensation is paid by the City of Clearwater
and all time during which a participant is on military leave in
active military service and subject to the application of Chapter
115, Florida Statutes (1983). It shall include all leaves of
absence with pay, but shall not include leaves of absence during
which no regular compensation is paid by the City of Clearwater,
except military leave as herein provided.
7. The fiscal year shall be that period from September 17
to the following September 16th, both dates inclusive.
8. Net Credit shall mean the amount standing to the
credit of a participant's share account as at the end of the
_ • preceding fiscal year.
(b) Each Participant shall be entitled to one share in the
Fund for each full year of service as a police officer of the
City rendered before and/or after the passage of this Ordinance
as of September 17th. Promptly after passage of this Ordinance
the number of full years of service rendered by each Participant
shall be determined and a record thereof shall be made on the
Participant's service record and the Participant shall thereupon
• have as many shares as full years rendered, and thereafter each
full fiscal year of service as defined in paragraph 2 (h) hereof
shall add one more share to the credit of each Participant.
(c) The total monies received, including interest earned,
any gifts and the credits forfeited by the Participants, all of
which constitute income to the Fund during each fiscal year,
shall be allocated and the value of the respective Participant's
shares shall be determined as follows:
1. The Board shall pay all costs and expenses of
management and operation for the fiscal year last ended.
2. The Board shall set aside as much of the income as it
considers advisable as a reserve for expenses for the then
current fiscal year.
3. After deducting the monies called for by paragraphs 1.
and 2., the remaining monies shall be allocated and credited to
the Share Accounts of the respective Participants.
The number of shares to which each and every Participant is
entitled as at the close of each fiscal year shall be added
together and the total number of shares thus determined shall be
divided into the net amount of money available to be allocated
_ and credited to the respective share accounts. The amount to be
credited to the account of each Participant will then be
obtained by multiplying the value determined for one (1) share
by the total number of shares to which each Participant is
entitled.
As soon as the monies are received, the value of each
Participant's share shall be calculated and credited to his share
account. Such calculation shall be made and credits allocated
to his share account one only in each fiscal year; and prorations
shall not be made for a part of the year.
Sec. 26.71. Board of trustees - Created.
There is hereby created a Board of Trustees of the
Supplementary Police Officers' Retirement Fund. The Board of
Trustees shall consist of the Mayor and the Chief of Police of
the City, two (2) regularly employed police officers of the City
to be appointed by the City Commission upon the recommendation of
a majority of the regularly employed police officers of the City,
and one resident of the City, to be appointed by a majority of
the trustees. The Mayor and Chief of Police, respectively, and
upon a vacancy in the office of Mayor or Chief of Police, their
respective successors shall succeed to the positions of trustees.
Each police officer member of the Board of Trustees shall serve
for a period of two (2) years, unless he sooner leaves the
employment of the City as a police officer, whereupon the
legislative body of the City, upon a recommendation of a majority
of the participant police officers there, shall choose his
successor. The resident members shall serve for a period of two
(2) years. The two (2) police officers and the resident members
may succeed themselves in office and shall continue to serve
until the successors are duly appointed and qualified. The Mayor
shall be the Chairman of the Board of Trustees. The board
members shall elect any one (1) of its members as secretary of
the board. The secretary shall keep a complete minute book of
the proceedings of the board. The trustees shall not receive any
compensation as such.
Section 26.72. Power and Authority of Board of Trustees
The Board of Trustees shall have power and authority as follows:
To invest and reinvest the assets of the pension fund in:
(a) Time or savings accounts of a national bank, a state
bank insured by the Federal Deposit Insurance Corporation, or a
savings, building and loan association insured by the Federal
Savings and Loan Insurance Corporation;
(b) obligations of the United States Treasury and agencies
allied with or related to the United States TreaSUr}';
(c) County bonds containing a pledge of the full faith and
credit of the county involved, bonds of the State Development
commission, or of any other state agency, which have been
approved as to legal and fiscal sufficiency by the state Board
of Administration;
(d) Obligations of any municipal authority issued pursuant
to the laws of this state; provided, however, that for each of
the five (5) years next preceding the date of investment the
income of such authority available for fixed charges, shall have
been not less the one and one-half (1 1/2) times its average
annual fixed charge, requirements over the life of its
obligations;
(e) Common stocks, preferred stocks and bonds and other
evidence of indebtedness 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 or any corporation international in charter engaged in
international business and trade, provided:
1. The corporation is listed on any one or more of the
recognized national stock exchanges;
2. All corporate bonds shall carry at least an AA rating
as established either by Standard & Poor's or Moody's;
3. The Board of Trustees shall not invest more than three
(3) per cent of its assets in the common stock or capital stock
of any one issuing company nor shall the aggregate investment on
any one issuing company exceed one per cent of the outstanding
capital stock of that company; nor shall the aggregate of its
investments under this subsection at cost exceed fifty (50) per
cent of the fund's assets.
The trustees of this pension plan and all other persons occupying
a fiduciary position under this article in the administration of
this article and in investing and reinvesting assets of the
pension fund shall utilize and be governed by the prudent man
rule. The trustees in the performance of their duties are
authorized to seek, obtain and engage independent professional
counsel and/or secretarial/clerical services and advice and to
pay reasonable charges Eor the service.
Section 26.73 Death/Disability Benefits
If a participant shall die while employed by the City of
Clearwater, his beneficiary or estate shall he entitled to the
accumulations standing to the credit of the deceased participant,
irrespective of the age or years of credited service of the
participant.
Upon satisfactory proof of total and permanent job related
disability, which renders the affected participating member
unable to perform the duties and functions of a Police Officer,
to the Board of Trustees, a participant will be entitled to
receive his outstanding shares on the date of retirement.
Section 26.74 Separation Benefits
%. (a) If a Participant shall separate from service, for any
reason whatsoever, after ten (10) or more years under the plan,
he shall be paid the entire amount to his net credit as of the
last preceding fiscal year, reduced by three (3) percent per year
for each year that the employee is short of his normal retirement
date. For the purposes of this plan, normal retirement shall
mean twenty (20) years from date of hire as a Police officer.
(b) Settlement as provided in subsections (a) of this
Section shall be in full acquittal of all claims of a Participant
against the Fund, and he shall thereupon cease to be a
Participant.
Section 26.75 Rights and Benefits not Subject to Legal Process
The rights and benefits provided for herein are \.•ested
+?; r
rights of Participants in the Fund, and shalt not be subject to
attachment, garnishment, execution or any other legal process.
Section 26.76 Responsibility of the City
The City of Clearwater shall have no responsibility for the
operation of the special fund except as specified herein and
shall bear no expense in the operation of the special fund.
Section 26.77 Statement of Conflict with F.S.S. 185
If any provision of this ordinance or the plan hereby
.created shall conflict with the provisions of Chapter 185, Acts
of Florida, such conflict shall be resolved in favor of the
statutory provisions which are intended to control, and the
conflicting provision of the ordinance shall be served without
affecting the purpose of this enactment.
Section 26.78 Statement of Conflict with City Ordinances.
An ordinance or any part.of any other ordinance in conflict
with any provision contained in this Chapter is hereby repealed.
Section 26.79 Effective Date
This Ordinance shall become effective immediately upon the
passage of the City Commission as provided by law and signed by
the Mayor and City Clerk as provided by Ordinance.
Agenda No.
MEMORANDUM TO: Meeting Dote:
SUBJECT: MUNICIPAL POLICE OFFICERS SUPPLEMENTARY PENSION PLAN
Originating Deportment: Retirement
The City Commission of the City of Clearwater
RECOMMENDATION:
Zepeal the present Police Supplementary Pension Plan and enact the
?roposed Police Supplementary Pension Plan.
O And that the appropriate officials be authorized to execute some.
BACKGROUND:
Che present Police Supplementary Pension Plan has been in effect since 199.
retirement benefits are determined based on salary, years of service, and
vainly age. Under the present, plan, two (2) officers with equal salaries
and years service, but of different ages, will not receive the same
amount of benefits. The older officer would receive considerably more
Benefits at retirement than would the younger one.
7nder the Proposed Supplementary Pension'Plan, which has been approved by
the-State of Florida and overwhelmingly by the affected police officers
with a vote of 123 for the change to 4 against the changer two (2) officers
with equal years service would receive an equal amount, regardless of
salary and age.
the trustees of the Police Supplementary Pension Plan and the affected
officers feel the Proposed Plan is much more equitable. Neithe;.*plan is
contributory by either the employee or the City.
:ommission Disposition: Follow-up Action:
submitted by: Advertised: O Af f ect ed Costs: N/A L7At tochmenis;
Ponies Funding Source: ) Proposed
vote: Notified O Capital Improve- Ordinance
:ity Manager Popes; of Niee;inq ment oudget ) Correspon-
ero:in
et
Bud
O O deuce from
q
g
p
ONot Required Not Required
O Other State of FlOr-
ida Municipal
ote ? Sequential :?nproprie?ion Code
elerence
_ ;,rust rand
C? None
ATE TREASuRER
;URANCE COMMISSIONER
iE MARSHAL
THE CAPITOL
TALLAHASSEE 32301
July 26, 1985
Chief Sid Klein
Chief of Police
644 Pierce St.
Clearwater, FL 33516
Dear Chief Klein:
This is in response to your letter dated June 17. 1985,
and the attached proposed ordinance.
The ordinance appears to be in compliance with state
law and the suggestions I made earlier appear to have been
incorporated into this latest proposal.
Please furnish this office a signed and dated copy of
the ordinance when passed.
If this office can be of further assistance or if you
have any questions, please let we know.
Sincerely,
122
Marvin B. Clayton. Bureau Chief
Municipal Police Officers'
Retirement Trust Fund .
t(BC:pfs
1 Let
ti
1
a c
September 9, 1992
C T Y O F C L E A R '1' A T E R
DEPARTMENT OF POLICE 6 44 PIERCE STREET
CLEARWATER. FLORIDA 34616-5495 (813) 462.6262
Lee Dehner
Christiansen & Dehner
700 Sarasota Quay
Sarasota, Florida 34236
Dear Mr. Dehner:
Enclosed you will find copies of all available correspondence on the issue of
Chief Sid Klein's eligibility for entry into the Supplementary Pension Plan, as
was discussed at the board meeting of August 31.
If there is anything further we can do, please contact either myself or Cindy
Hicks.
Sin erely,
William Sedrick
Chairman
Enclosure
E q u a l E m p l o y m e n t a n C A f f i r m a t i v e A c l i o n E m p l o y e r ''
ANDRA TODD DREYFUS, P.A.
LAW OFFICES
1463 Gulf To Bay Blvd.
CLEARWATER, FLORIDA 33755
ANDRA T. DREYFUS
JON A. JOUBEN
March 15, 1999
PERSONAL AND CONFIDENTIAL
Sgt. William Sedrick
4982 Cardinal Trail
Palm Harbor, FL 34663
Dear Sgt. Sedrick:
TELEPHONE: (727) 442-1144
FACSIMILE: (727) 446-4407
email: atdlawfirm@aol.com
We represent Chief Sidney R. Klein. I am requesting on behalf of the Chief that you put
the following issue on the agenda for the upcoming meeting of the Supplementary
Pension Board. It is my understanding that the Board will next meet Friday, March 19,
1999.
It is my contention that Chief Klein as a sworn officer employed by the City of
Clearwater, is entitled to participate in the supplementary pension. His participation
should be retroactive to his date of hire, with -the 10 year vesting as is applicable to
every other sworn member of the Clearwater Police Department. Please consider this
an application for such benefits. I will be happy to provide such additional information
and authority as necessary to ensure Chief Klein's full participation in the
supplementary pension plan.
Thank you for your attention to this matter. Please call me should you have any
comments or questions. If you would like me to appear at your March 19th meeting,
will be happy to do so, although I would request that you advise me as to time and
location.
Thank you.
Very truly yours,
ANDRA TODD DREYFUS, P.A.
Andra T. Dreyfus
ATD:dlb
cc: Chief Sidney R. Klein
LAW OFFICES
CHRIS UNSEN & DiEENER, P.A.
SCOTT R. CHRISTIANSEN
H. LEE DEHNFB
63 SARASOTA CENTER BLVD.
SurrE 107
SARASOTA, FLORIDA 34240
PHONE: (941) 377-2200
FAX: (941) 377-4848
April 21, 1999
Ms. Patricia Shoemaker
Florida Division of Retirement
Police Officer & Firefighter Pensions
Cedars Executive Center, Building B, Rm. 232
2639 N. Monroe Street
Tallahassee, Florida 32399-1560
Re: City of Clearwater Police Officers' Pension Trust Fund - Sidney Klein Eligibility
Dear Ms. Shoemaker:
We represent the Board of Trustees 'of the City of Clearwater Police Officers'
Supplementary Pension and Retirement Plan. - I am requesting from you an opinion regarding
whether or not the Police Chief, Sidney R. Klein, is eligible to participate in the Police
Officers' Supplementary Pension Plan. In order to assist you in providing the opinion, I am
enclosing a copy of our entire file regarding this issue as well as a copy of the current plan
document, including all revisions.
As you may recall, the City of Clearwater has a defined benefit plan in which all
employees (general employees, police officers and firefighters) generally participate. When
Chief Klein was hired by the City in September of 1981, he elected to participate in a defined
contribution plan offered by the International City Manager's Association rather than
participate in the City's defined benefit plan. While there was initially some confusion
regarding the Chiefs eligibility to participate in the supplemental police officers' pension plan,
the letter received from Marvin Clayton of your office dated January 11, 1982 appeared to
make it clear that Chief Klein would not be eligible for participation in the supplemental
pension plan since the ICMA plan is a deferred compensation plan that does not meet the
requirements found in Chapter 185. Mr. Clayton suggested that the.City place the Chief in the
current defined benefit plan for the City of Clearwater which would have established his
eligibility for the supplemental pension plan. This was not done.
We have orally rendered opinions over the last several years regarding Chief Klein's
eligibility for participation in the supplementary pension plan, confirming Mr. Clayton's
Ms. Patricia Shoemaker
April 21, 1999
Page 2
interpretation. We continue to support that interpretation. Prior to responding to the letter
dated March 15, 1999 from Chief Klein's attorney, we would like to have a reconfirmation of
this interpretation from your office. Once we receive confirmation of this interpretation, we
will set a hearing on this issue and ask the Board to make a final decision regarding the
interpretation of the Plan and the provisions of Chapter 185, Florida Statutes.
I thank you in advance for your assistance in this matter.
y,
PR.Chrnistiansen
SRC/bm
enclosures
cc: Bill Sedrick, without enclosures
*-
Scow R. CHRIS[TANSEN
H. LEE DEHNER
Ms. Patricia Shoemaker
Florida Division of Retirement
Police Officer & Firefighter Pensions
Cedars Executive Center, Building B, Rm. 232
2639 N. Monroe Street
Tallahassee, Florida 32399-1560
LAW OFFICES
CEoRimANsEN & DEuNm, P.A.
63 SARASOTA CENTER BLvD.
Surni 107
SARASOTA, FLORIDA 34240
April 26, 1999
PHONE: (941) 377-2200
FAX: (941) 377-4848
T
AR 2 8 1999
tiiunlci0.1 Felice G'If 3'
pira;:ghters' ?ist:rQmene Ft?n:?s
Dept Of SGivlces
Re: City of Clearwater Police Officers' Pension Trust Fund - Sidney Klein Eligibility
Dear Ms. Shoemaker:
This letter is a follow-up to my letter of April 21, 1999 requesting an opinion regarding
Clearwater Police Chief, Sidney R. Klein. I wish to correct two facts that are stated in the
second paragraph of my letter. Chief Klein was hired by the City on January 5, 1981 rather
than September of 1981. In addition, Chief Klein indicates that when he came to work for the
City, he was not given the option of participating in the City of Clearwater Defined Benefit
Plan, but rather his'only option was participation in the ICMA Deferred Compensation Plan.
While I do not believe that either one of these facts bears on your opinion, I wanted to be
certain that the facts which I presented to you were correct.
Should you have any further questions, please feel free to give me a call.
Your ve truly,
Scott R. Christiansen
SRC/bin
cc: Bill Sedrick
-11t
PHEz ?? \ni?7-
JEe BUSH A.J.WMULLIAN III
Governor MAY 199SDirector
State of Florida
Division of Retirement
CEDARS EXECUTIVE CENTER ? 2639-C NORTH MONROE STREET ? TALLAHASSEE, FLORIDA 32399-1560
MAILING ADDRESS: MUNICIPAL POLICE OFFICERS' & FIREFIGHTERS' RETIREMENT TRUST FUNDS
POST OFFICE Box 3010 ? TALLAHASSEE, FLORIDA 32315-3010
May 5, 1999
Mr. Scott Christiansen
Christiansen & Dehner, P. A.
63 Sarasota Center Blvd., Suite 107
Sarasota, Florida 34240
Dear Mr. Christiansen:
This is in response to your letter of April 21, 1999, regarding eligibility for Chief Sid Klein in the
City of Clearwater's Police Officers' Supplementary Pension and Retirement Plan.
I concur with the position stated in Mr. Clayton's letter of January 11, 1982, that in order to
receive the state premium tax moneys, the municipality must establish a defined benefit plan
that meets the requirements of s. 185.35. Subsequently, a supplemental plan may be
established to use the state moneys to provide "extra benefits" for police officers, but it is a part
of and exists in conjunction with the defined benefit plan. Therefore, if an employee opted not
to participate in the defined benefit plan, he automatically would not be eligible to participate in
the supplemental plan.
If you have any questions or if this office can be of further assistance, please let me know.
Sincerely,
Patricia F. Shoemaker
Benefits Administrator
Municipal Police Officers' and
Firefighters' Retirement Funds
pfs
cc: William Sedrick, Chairman
Telephone (850) 922-0667 0 Suncorn 292-0667 • Fax (850) 921-2161
G? F9 ('r`
JEB BUSH A.J. MCMULLIAN III
Governor ' MAY 1 2 1999 Director
State of Florida
Division of Retirement - ^'- -----
CEDARS EXECUTIVE CENTER ? 2639-C NORTH MONROE STREET ? TALLAHASSEE, FLORIDA 32399-1560
MAILING ADDRESS: MUNICIPAL POLICE OFFICERS' 8 FIREFIGHTERS' RETIREMENT TRUST FUNDS
POST OFFICE BOX 3010 * TALLAHASSEE, FLORIDA 32315-3010
May 6, 1999
Ms. Andra T. Dreyfus, P. A.
Law Offices
1463 Gulf to Bay Blvd.
Clearwater, Florida 33755
Dear Ms. Dreyfus:
This is in response to your letter of May 4, 1999, concerning the City of Clearwater's Police Officers'
Supplementary Pension and Retirement Plan.
Attached is a copy of my May 5, 1999 response to Mr. Christiansen regarding Chief Klein's participation
in the Supplementary Pension Plan.
• For your information, I have also attached a copy of Mr. Christiansen's April 26, 1999 letter, correcting
certain information provided in his April 21, 1999 letter.
When a city chooses to come under the provisions of Chapter 185 and establishes a local law plan under
the provisions of s. 185.35, the employees may choose to place the premium tax moneys in their existing
plan for the sole and exclusive use of the police officers, or they may use the premium tax moneys for
"extra benefits." Clearwater chose to use the state moneys for extra benefits, and established a
"supplemental" plan. The state moneys are used to "supplement" the benefits in the Clearwater
Employees' Plan. A supplemental plan is, therefore, a part of and exists in conjunction with a defined
benefit plan operating under the provisions of s. 185.35, F. S.
This office has no information about whether Chief Klein was initially offered the option to participate or
not in the City of Clearwater Employees' Plan.
If you have any further questions or if this office can be of assistance, please let me know.
Sincerely,
Patricia F. Shoemaker
Benefits Administrator
Municipal Police Officers' and
Firefighters' Retirement Fund
pfs
Cc: William Sedrick, Chairman
,/Scott Christiansen, Plan Attorney
d, -IKE s?
Telephone (850) 922-0667 0 Suncom 292-0667 • Fax (850) 921-2161
LAW OFFICES
CmsTIANsEN & DEENER, P.A.
SCOTT R. CHIUSTIANSEN
H. LEE DENNER
63 SARASOTA CENTER BLVD.
SUITE 107
SARASOTA, FLORIDA 34240
PHONE: (941) 377-2200
FAX: (941) 377-4848
Ms. Andra T. Dreyfils
Attorney at Law
1463 Gulf to Bay Boulevard
Clearwater, Florida 33755
May 26, 1999
Re: City of Clearwater Police Officers' Supplementary Pension and Retirement Plan
Chief Sidney R. Klein
Dear Ms. Dreyfus:
I represent the Board of Trustees of the City of Clearwater Police Officers'
Supplementary Pension and Retirement Plan. This letter is written in response to your letter
of March 15, 1999 regarding your request on behalf of Chief Klein that he be determined to
be eligible to participate in the supplementary pension plan. After re-reviewing all of the
records and correspondence concerning this issue dating as far back as 1981, I decided to seek
a reconfirmation of an opinion which was provided to the Assistant City Attorney in January
of 1982 from Marvin Clayton, then Bureau Chief of the Bureau of Municipal Police Officers'
and Firefighters' Pension Plans. Accordingly, I corresponded with the current Bureau Chief,
Patricia Shoemaker, seeking her opinion with regard to this issue. I received a response dated
May 5, 1999, a copy of which is enclosed. I also received a copy of Ms. Shoemaker's letter
of May 6, 1999 to you also confirming that since Chief Klein is not a member of the defined
benefit plan, he would not be eligible to participate in the supplemental plan. I intend to
recommend to the Board of Trustees at their meeting on June 11, 1999 at 9:00 a.m. at the
Clearwater Police Department, that they reconfirm Chief Klein's ineligibility to participate in
the supplemental plan.
If you and/or your client wish to be heard further on this issue, please contact me
immediately and I will request that you be given an opportunity to be heard by the Board on
this issue. Please feel free to give me a call if you wish to discuss the matter further.
Yours v ly, 21
Scott R. Christiansen
SRC/bm
enclosure
cc: William Sedrick, without enclosure
34? W
3
DDARTMefrOF MANAGEMENT
SERVICES
F ra -,
It
. J
I
1 L:J i
------------
)EB BUSH, GOVERNOR DIVISION OF RETIREMENT TiioaLUs D. NfcGuiu<, SECRET;
Cedars Executive Center • 2639 North Monroe Street Bldg. C • Tallahassee FL 32399-1560
Mailing Address: Municipal Police Officers' & Firefighters' Retirement Trust Funds
Post Office Box 3010 • Tallahassee, Florida 32315-3010
January 26, 2000
Mr. Scott Christiansen
Christiansen & Dehner
63 Sarasota Center Blvd., Suite 107
Sarasota, Florida 34240
Dear Mr. Christiansen:
This is in response to your telephone inquiry concerning the City of Clearwater's Municipal Police Officers'
Retirement Fund.
Section 185.35, states in part that in order for municipalities with their own pension plans for police officers to
participate in the distribution of the state premium tax moneys they must meet the minimum benefits and standards
in Chapter 185. If they have a plan, which meets the minimum standards, then they may place the state moneys in
the existing pension plan or in a supplemental plan where, in either case, it shall be used exclusively for the benefit
of police officers.
The City of Clearwater's plan design includes a defined benefit plan, the Employees' Pension Plan, and state moneys
go into the Supplemental Plan. The Supplemental Plan could not operate without the Employees' Pension Plan. The
Supplemental Plan exists in conjunction with the Employees' Pension Plan, in fact, Chapter 99-1 requires that any
increase in the state moneys (over and above the amount collected for calendar year 1997) shall be used to meet the
minimum benefits of the new law. This means that the Supplemental Plan will continue to be able to use the frozen
amount of $645,396.89, and the increase received in 1999 of $44,068.90 must be directed to the Employees' Pension
Plan to make any needed benefit improvements to meet the minimum requirements of Ch. 99-1, for police officers.
As stated in my letter of May 6, 1999, the Supplemental Plan is part of and exists in conjunction with the
Employees' Pension Plan. If an employee is not a participant in the Employees' Pension Plan, he would not be
eligible to participate in the Supplemental Plan.
The Board may not, therefore, make a distribution from the Supplemental Plan to an employee who is not a
participant in the Employees' Pension Plan. To do so, would jeopardize the receipt of the state premium tax moneys.
If you have any further questions, please let me know.
Sincerely,
(9c,T-4 t.
Patricia F. Shoemaker
Benefits Administrator
Municipal Police Officers' and
Firefighters' Retirement Funds
pfs
cc: William Sedrick, Chairman
Telephone (850) 922-0667 • Suncom 292-0667 • Fax (850) 921-2161
C"J
Reocled P'Ipcr
DIVISION 5. POLICE OFFICERS PENSION PLAN*
*Cross reference(s) --Proceeds from tax on casualty insurance
premiums paid into pension fund for police officers, § 29.81.
State law reference(s) --Municipal police officers retirement
trust funds, F.S. ch. 185.
Subdivision I. Generally
(Reserved)
Subdivision II. Supplementary Pension and Retirement Plan
Sec. 2.471. Definitions.
The following words, terms and phrases, when used in this
subdivision, shall have the meanings ascribed to them in this
section, except where the context clearly indicates a different
meaning:
Board means the board of trustees of the police officers
pension trust fund as provided for in this subdivision.
Distributee means an employee or former employee. In
addition, the employee's or former employee's surviving spouse is
a distributee with regard to the interest of the spouse.
Direct rollover means a payment by the plan to the eligible
retirement plan specified by the distributee.
Eligible retirement plan means an individual retirement
account described in section 408(a) of the Internal Revenue Code,
an individual retirement annuity described in section 408(b) of
the Internal Revenue Service Code, an annuity plan described in
section 403(a) of the Internal Revenue Service Code, or a
qualified trust described in section 401(a) of the Internal
Revenue Service Code, that accepts the distributee's eligible
rollover distribution. However, in the case of an eligible
• rollover distribution to the surviving spouse, an eligible
retirement plan is an individual retirement account or individual
retirement annuity.
Eligible rollover distribution means 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 ten years or more; any distribution to the extent such
distribution is required under section 401(a) (9) of the Internal
Revenue Service Code; and the portion of any distribution that is
not includable in gross income.
Net credit means the amount standing to the credit of a
participant's share account as at the end of the preceding fiscal
year.
Participant means every police officer of the city eligible
to have moneys credited to his share account and to receive
benefits therefrom pursuant to this subdivision.
Pension trust fund means the police officers' fund as
provided for in this subdivision.
Police officer means any person who is elected, appointed,
or employed full time by the city and certified or required to be
certified as a law enforcement officer in compliance with F.S. §
943.14, who is vested with the authority to bear arms and make
arrests, and whose primary responsibility is the prevention and
detection of crime or the enforcement of the penal, criminal,
traffic, or highway laws of the state. 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 law enforcement
officers, part-time law enforcement officers, or auxiliary law
enforcement officers, but does not include part-time law
enforcement officers or auxiliary law enforcement officers as
defined in F. S. § 943.10(5) and (7). The term shall specifically
exclude any person employed in the entry level position of police
recruit I who is not certified or required to be certified as a
law enforcement officer, and any other employee of the city not
certified or required to be certified as a law enforcement
officer and not employed full time as a sworn law enforcement
officer.
Service means all time served as a police officer of the,
city for which regular compensation is paid by the city and all
time during which a participant is on military leave in active
military service and subject to the application of F.S. ch. 115.
The term shall include all leaves of absence with pay, but shall
not include leaves of absence during which no regular
compensation is paid by the city, except military leave.
(Code 1980, § 26.70; Ord. No. 5723-95, § 1, 1-19-95)
Cross reference(s)--Definitions and rules of construction
generally, § 1.02.
Sec. 2.472. Entitlement; allocation.
(1) Each participant shall be entitled to one share or a
fractional share in the fund for each full year or a portion
of a year of service as a police officer of the city. A
fractional share for service rendered by each participant
shall be determined by the number of days of service in each
calendar year, assuming a 365-day year.
(2) The total moneys received, including interest earned,•any'
gifts and the credits forfeited by the participants, all of
which constitute income to the fund during each fiscal year,
shall be allocated and the value of the respective
participant's shares shall be determined as follows:
(a) The board shall pay all costs and expenses of
management and operation for the fiscal year last
ended.
(b) The board shall set aside as much of the income as it
considers advisable as a reserve for expenses for the-
then current fiscal year.
(c) After deducting the moneys called for in subsections
(2) (a) and (b) of this section, the remaining moneys
shall be allocated and credited to the share accounts
of the respective participants.
(3) The number of shares to which each and every participant is
entitled as at the close of each fiscal year shall be added
together and the total number of.shares thus determined
shall be divided into the net amount of money available to
be allocated and credited to the respective share accounts.
The amount to be credited to the account of each participant
will then be obtained by multiplying the value determined
for one share by the total number of shares to which each
participant is entitled.
(4) Based on the asset balance of the pension trust fund on
September 30 of each year, the value of each participant's
share shall be calculated and credited to his share'account.
Such calculation shall be made and credits allocated to his
share account once only in each fiscal year. Prorations
shall not be made for a part of the year.
(Code 1980, § 26.71)
Sec. 2.473. Board of trustees--Creation; members.
(1) There is hereby created a board of trustees of the
supplementary police officers' retirement fund, which shall
be solely responsible for administering the trust fund. The
board of trustees shall consist of five members. Two
members, unless otherwise prohibited by law, shall be legal
residents of the city who shall be appointed by the city
commission, and two members shall be police officers who
shall be elected by a majority of the police officers who-
are participants. The fifth member shall be chosen by a
majority of the previous four members, and such person's
name shall be submitted to the city commission. Upon receipt
of the fifth person's name, the city commission shall, as a
•. ministerial duty, appoint such person to the board of
trustees as its fifth member. The fifth member shall have
the same rights as each of the other four members. Each
resident member shall serve as trustee for a period of two
years unless sooner replaced by the city commission, at
whose pleasure he will serve. Each police officer member
shall serve as trustee for a period of two years unless he
sooner leaves the employment of the city as a police
officer, whereupon the city commission shall choose his
successor in the same manner as an original appointment.
Each member may succeed himself in office.
(2) The board of trustees shall meet at least quarterly each
year.
(3) Each board of trustees shall be a legal entity with the
power to bring and defend lawsuits of every kind, nature and-
description, in addition to the other powers and duties
contained in this subdivision.
(4) The trustees shall by majority vote elect from its members a
chairperson and a secretary. The secretary of the board
shall keep a complete minute book of the actions,
proceedings, or hearings of the board.
(5) The trustees shall not receive any-compensation as such, but
may receive expenses and per diem as provided by law.
(Code 1980, § 26.72)
Sec. 2.474. Same--Power and authority.
(1) The board of trustees shall have power and authority to
invest and reinvest the assets of the pension fund in:
(a) Time or savings accounts of a national bank, a state
bank insured by the Federal Deposit Insurance
Corporation, or a savings, building and loan
association insured by the Federal Savings and Loan
Insurance Corporation;
(b) Obligations of the United States or obligations
guaranteed as to principal and interest by the United
States;
(c) Stocks, commingled funds administered by national or
state banks, mutual funds and bonds or other evidences
of indebtedness. All individually held equity and*debt
securities and all equity and debt securities in a
commingled or mutual fund must be issued or guaranteed
by a corporation organized under the laws of the United
Stated, any state or organized territory of the United
States or District of Columbia, and each equity and
debt security must be traded on a nationally recognized
exchange (including NASDAQ). All debt securities shall
hold a rating in one of the three highest
classifications by a major rating service, and if such
investments are made in a pooled fund administered by a
state or national bank or mutual fund, then the rating
of each issue in the pooled fund shall hold a rating
within the top three rating classifications of a major
rating service. No foreign investments shall be
permitted whether owned individually or in a commingled
or mutual fund, except to the extent permitted by
Chapter 185, Florida Statutes, as amended from time to
time.
The board of trustees shall not invest more than five
percent of its assets in the common stock or capital
stock on any one issuing company, the aggregate
investment on any one issuing company shall not exceed
five percent of the outstanding capital stock of that
company, nor shall the aggregate of its investments in
common or capital stock or convertible securities at
cost exceed.65 percent of the fund's assets.
(2) At least once every three years, the board of trustees shall
retain an independent consultant professionally qualified to
evaluate the performance of professional money managers. The
independent consultant shall make recommendations to the
board of trustees regarding the selection of money managers
for the next investment term. These recommendations shall be
considered by the board of trustees at its next regularly
scheduled meeting after receipt of the recommendations by
the board. The date, time, place, and subject of this
meeting shall be advertised in a newspaper of general
circulation in the city at least ten days prior to the date
of.the hearing.
(3) The sole and exclusive administration of and the
responsibilities for the proper operation of the-retirement
trust fund and for making effective the provisions of this
subdivision are vested in the board of trustees, provided
that nothing in this subdivision shall empower the board of
trustees to amend the provisions of a retirement plan
without the approval of the city commission.
(4) The trustees of the pension plan established pursuant to
this subdivision and all other persons occupying a fiduciary
position under this subdivision in the administration of
this subdivision and in investing and reinvesting assets of
the pension fund shall utilize and be governed by the
prudent man rule. The trustees in the performance of their
duties are authorized to seek, obtain and engage independent
professional counsel and secretarial and clerical services
and advice and to pay reasonable charges for the service
from funds available to the board of trustees for such
,purposes.
(Code 1980, § 26.73; Ord. No. 5723-95, § 2, 1-19-95; Ord. No.
6208--97, § 1, 11-20-97)
Sec. 2.475. Death. and disability benefits.
(1) If a participant shall die while employed by the city, his
beneficiary or estate shall be entitled to the accumulations
standing to the credit of the deceased participant,
irrespective of the age or years or credited service of the
participant.
(2) Upon satisfactory proof to the board of trustees of total
and permanent job-related disability which renders the
affected participating member unable to perform the duties
and functions of a police officer, a participant will be
entitled to receive his outstanding shares on the date of
retirement. In the event that the City of Clearwater
Employees' Pension Plan has determined that a police officer
has become permanently incapacitated through injury or
illness contracted in the line of duty, such determination
may be considered as proof of a job-related disability under
this Police Officers' Pension Plan.
(Code 1980, § 26.74; Ord. No. 5723-95, § 3, 1-19-95)
Sec. 2.476. Separation benefits.
,r
(1) If a participant shall separate from service for any reason
whatsoever after ten or more years under the plan
established pursuant to this subdivision, he shall be paid
the entire amount to his net credit as of the last preceding
fiscal year, reduced by three percent per year for each year
that the employee is short of his normal retirement date.
For the purposes of this plan, normal retirement shall mean
20 years from his date of hire as a police officer.
(2) Settlement as provided in subsection (a) of this section
shall be in full acquittal of all claims of a participant
against the fund, and he shall thereupon cease to be a
participant.
(Code 1980, § 26.75)
Sec. 2.477. Rights and benefits not subject to legal process.
The rights and benefits provided for in this subdivision
are, when due and payable, vested rights of participants in the
fund, and shall not be subject to attachment, garnishment,
execution or any other legal process.
(Code 1980, § 26.76)
Sec. 2.478. Responsibility of city.
The city shall have no responsibility for the operation of
the fund established pursuant to this subdivision except as
specified in this subdivision and shall bear no expense in the
operation of the fund.
(Code 1980, § 26.77)
Sec. 2.479. Conflict with F.S. ch. 185.
If any provision of this subdivision or the plan created
pursuant to this subdivision shall conflict with the provisions
of F.S. ch. 185, such conflict shall be resolved in favor of the
statutory provisions which are intended to control, and the
conflicting provision of the subdivision shall be severed without
affecting the purpose of this enactment.
(Code 1980, § 26.78)
Sec. 2.480. Direct transfers of eligible rollover distributions:
This section applies to distribution made on or after
January 1, 1993. Notwithstanding any provision of the system to
the contrary that would otherwise. limit a distributee's election
under this section, a distributee may elect, at the time and in
the manner prescribed by the board, to have any portion of an
eligible rollover distribution paid directly t9,-an, eligible
retirement plan specified by the distributee in a direct
rollover.
(Ord. No. 5723-95, § 4, 1-19-95)
l't MC: :. " •?' •`".t'.a ^.a it 1^n: trs
in tht. ri:r! of :hr Cite C:ic - %vstrr.
CYitae?: ray tamd a fteial sesl of
Iht: c?ty.ifi _ie?;1Aater.
[jelm, City (WC