7033-02
ORDINANCE NO. 7033-02
AN ORDINANCE OF THE CITY OF CLEARWATER,
FLORIDA, AMENDING CHAPTER 2,
ADMINISTRATION, ARTICLE V, EMPLOYEE
BENEFITS, DIVISION 3, EMPLOYEES' PENSION
PLAN, OF THE CODE OF ORDINANCES OF THE
CITY OF CLEARWATER; AMENDING SECTION
2.393, DEFINITIONS, BY AMENDING THE
DEFINITION OF "COMPENSATION"; AMENDING
SECTION 2.397, BENEFITS UNDER THE PLAN;
AMENDING SECTION 2.398, TIME AND MANNER
OF BENEFIT PAYMENTS; PROVIDING FOR
SEVERABILITY OF PROVISIONS; REPEALING
ALL ORDINANCES IN CONFLICT HEREWITH AND
PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
CLEARWATER, FLORIDA:
SECTION 1: That Chapter 2, Administration, Article V, Employee Benefits,
Division 3, Employees' Pension Plan, of the Code of Ordinances of the City of
Clearwater is hereby amended by amending Section 2.393, Definitions, by
amending the definition of "Compensation", subsection 2.a., to read as follows:
(2) a.
In addition to other applicable limitations set forth in the plan,
and notwithstanding any other provision of the plan to the
contrary, for plan years beginning on or after January 1,
1996, the annual compensation of each employee taken into
account under the plan shall not exceed the OBRA '93
annual compensation limit. The OBRA '93 annual
compensation limit is $150,000.00 $200,000.00, as adjusted
by the commissioner for increases in the cost of living in
accordance with Section 401 (a)(17)(B) of the Internal
Revenue Code. The cost-of-living adjustment in effect for a
calendar year applies to any period, not exceeding 12
months, over which compensation is determined
(determination period) beginning in such calendar year. If a
determination period consists of fewer than 12 months, the
OBRA '93 annual compensation limit will be multiplied by a
fraction, the numerator of which is the number of months in
the determination period, and the denominator of which is
12.
SECTION 2: That Chapter 2, Administration; Article V, Employee Benefits;
Division 3, Employees' Pension Plan of the Code of Ordinances of the City of
Clearwater is hereby amended by amending Section 2.397. Benefits under the
plan, to amend subsection (g)(1), Basic limitation, and subsection (g)(3),
Ordinance No. 7033-02
Adjustments in limitations and to delete subsection (g)(6), Participant in defined
contribution plan, as follows:
(g)(1) Basic Limitation.
Subject to the adjustments hereinafter set forth, the maximum
amount of annual retirement income payable with respect to a
participant under this plan shall not exceed $90,000.00
$160,000.00.
For purposes of applying the above limitation, benefits payable in
any form other than a straight life annuity with no ancillary
benefits shall be adjusted, as provided by Treasury Regulations, so
that such benefits are the Actuarial Equivalent of a straight life
annuity. For purposes of this Section, the following benefits shall
not be taken into account:
a. Any ancillary benefit which is not directly related to
retirement income benefits;
b. Any other benefit not required unqer 9415(b)(2) of the
code and regulations thereunder to be taken into
account for purposes of the limitation of 9415(b)(1) of
the code.
(g)(3) Adjustments in limitations.
a. In the event the participant's retirement benefits
become payable before age 62, the $90,000.00
$160,000.00 limitation prescribed by this section shall
be reduced in accordance with regulations issued by
the Secretary of the Treasury pursuant to the
provisions of 9415(b) of the code, but not less than
$75,000.00, if the benefit begins at or after age 55. In
the event the participant's retirement benefit becomes
payable before age 55, the $75,000.00 limitation shall
be reduced from age 55 in accordance '.A.'ith regula
tions issued by the Secretary of the Treasury pur
suant to the provisions of ~415(b) of the code. A
participant 'Nith at least fifteen (15) years of Credited
Service may not have the benefit reduced be 10'.\'
$50,000.00. so that such limitation (as so reduced)
equals an annual benefit (beQinninQ when such
retirement income benefit beQins) which is equivalent
to a one hundred sixty thousand dollar ($160,000)
annual benefit beQinninQ at aQe sixty-two (62).
b. In the event a police officer or firefighter participant's
benefit is based on at least 15 years of credited
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service, the adjustments provided for in a. above shall
not apply.
c. The reductions provided for in a. above shall not be
applicable to disability benefits paid pursuant to
Section 2.397(c), or pre-retirement death benefits
paid pursuant to section 2.397(e).
d. In the event the participant's retirement benefit
becomes payable after age 65, for purposes of
determining whether this benefit meets the limitation
set forth in subsection (1) herein, such benefit shall be
adjusted so that it is actuarially equivalent to the
benefit beginning at age 65. This adjustment shall be
made using an assumed interest rate of five percent
and shall be made in accordance with regulations
promulgated by the Secretary of the Treasury or his
delegate.
(6) Participant in d6fined contribution plan. In any case where a
participant under this plan is also a participant in a "defined
contribution plan" as defined in ~41 "1 (i) of the Code,
maintained by the City the sum of the "defined benefit plan
fraction" and the "defined contribution plan fraction" (both as
defined in ~415(e) of the Code) shall not, subject to the
restrictions and exceptions contained in ~2004 of the Act,
exceed 1.0. This limitation is repealed effective January 1,
2OOQ,.
SECTION 3: Chapter 2, Administration, Article V, Employee Benefits,
Division 3, Employees' Pension Plan, of the Code of Ordinances of the City of
Clearwater is hereby amended by amending Section 2.398, Time and manner of
benefit payments, subsection (e), Direct rollovers, to read as follows:
(e) Direct transfers of eliqible rollovero distributions.
(1) Rollover distributions. This section applies to distributions made on
or after January 1, 2002. Notwithstanding any provisions of the
plan to the contrary that would otherwise limit a distributee's (as
defined below) election under this paragraph, a distributee may
elect, at the time and in the manner prescribed by the committee, to
have any portion of an eligible rollover distribution (as defined
below) paid directly to an eligible retirement plan (as defined below)
specified by the distributee in a direct rollover (as defined below).
(2) For purposes of this paragraph, the following terms shall have the
following meanings:
a. An "eligible rollover distribution" is any distribution of all or
any portion of the balance to the credit of the distributee,
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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 Internal Revenue Code Section
401 (a)(9), and the portion of any distribution that is not
includable in gross income (determined without regard to the
exclusion for net unrealized appreciation with respect to
employer securities). Any portion of any distribution which
would be includible in qross income will be an eliqible
rollover distribution if the distribution is made to an individual
retirement account described in Internal Revenue Code
Section 408(a), to an individual retirement annuity described
in Internal Revenue Code Section 408(b) or to a qualified
defined contribution plan described in Internal Revenue
Code Section 401(a) or 403(a) that aqrees to separately
account for amounts so transferred. includinq separately
accountinq for the portion of such distribution which is
includible in qross income and the portion of such
distribution which is not so includible.
b. An "eligible retirement plan" is an individual retirement
account described in Code Section 408(a), an individual
retirement annuity described in Internal Revenue Code
Section 408(b), an annuity plan described in Internal
Revenue Code Section 403(a), an eliqible deferred
compensation plan described in Internal Revenue Code
Section 457(b) which is maintained by an eliqible employer
described in Internal Revenue Code Section 457(e)(1)(A)
and which aqrees to separately account for amounts
transferred into such plan from this plan. an annuity contract
described in Internal Revenue Code Section 403(b). or a
qualified trust described in Internal Revenue Code Section
401 (a), that accepts the distributees eliqible rollover
distribution to the survi~./ing spouse, an eligible retirement
plan is an indi~./idual retirement account or individual
retirement annuity. This definition shall apply in the case of
an eliqible rollover distribution to the survivinq spouse.
c. A "distributee" includes an employee or former employee. In
addition, the employee's or former employee's surviving
spouse and the employee's or former employee's spouse or
former spouse who is the alternate payee under a qualified
domestic relations order, as defined in Internal Revenue
Code Section 414(p), are distributees with regard to the
interest of the spouse or former spouse.
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d. A "direct rollover" is a payment by the plan to the eligible
retirement plan specified by the distributee.
SECTION 4: If any provision of this ordinance or any policy or order
thereunder of the application of such provision to any person or circumstances
shall be held invalid, the remainder of this ordinance and the application of such
provision of this ordinance or of such policy or order to persons or circumstances
other than those to which it is held invalid shall not be affected thereby
SECTION 5: All Ordinances or parts of Ordinances in conflict herewith
be and the same are hereby repealed.
SECTION 6: This ordinance shall become effective upon adoption.
PASSED ON FIRST READING
September 5. 2002
PASSED ON SECOND AND FINAL
READING AND ADOPTED AS
AMENDED
September 19, 2002
Approved as to form:
JJk~ Akin
City Attorney
Attest:
.--r .
./ ~
Ordinance No. 7033-02
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