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8244-11ORDINANCE NO. 8244-11 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA, RELATING TO THE CITY OF CLEARWATER FIREFIGHTERS' SUPPLEMENTARY TRUST FUND; AMENDING THE DEFINITIONS IN SECTION 2.441 TO COMPLY WITH CHANGES TO THE UNIFORMED SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT (USERRA); AMENDING SECTION 2.443 TO INCREASE THE TERMS OF OFFICE OF THE BOARD OF TRUSTEES; AMENDING SECTION 2.444 RELATING TO THE AUTHORITY OF THE BOARD TO INVEST AND REINVEST THE ASSESTS OF THE FUND; AMENDING SECTION 2.447 RELATING TO THE ALLOCATIONS OF CONTRIBUTIONS TO COMPLY WITH INTERNAL REVENUE CODE (IRC) CHANGES; AMENDING SECTION 2.448 TO CLARIFY THE REQUIRED DISTRIBUTION DATE; AMENDING SECTION 2.451 RELATING TO THE DIRECT TRANSFER OF ELIGIBLE ROLLOVER DISTRIBUTIONS TO COMPLY WITH IRC CHANGES; AMENDING SECTION 2.452 TO UPDATE THE FORFEITURE-OF-PENSION PROVISIONS TO INCLUDE THE AMENDMENTS TO SECTION 112.3173, FLORIDA STATUTES; AMENDING SECTION 2.453 "QUALIFICATION OF SYSTEM" TO INCLUDE THE CHANGES TO THE IRC, USERRA, AND FLORIDA STATUTORY GENERAL COMPLIANCE LANGUAGE; AMENDING SECTION 2.454 RELATING TO DOMESTIC RELATIONS ORDERS; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Clearwater Firefighters are presently provided pension and certain other benefits under Ordinances of the City of Clearwater; and WHEREAS, the City Council desires to clarify and restate the provisions of the Firefighters' Retirement Plan to consolidate all prior ordinances and Code provisions and to incorporate Federal law and the applicable provisions of Chapter 175, Florida Statutes; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA; Section 1. Chapter 2, Administration; Article V, Employee Benefits; Division 4, Firefighters Pension Plans; Subdivision III, Supplementary Pension and Retirement Plan is hereby amended and restated as set forth in the document designated CITY OF CLEARWATER FIREFIGHTERS' SUPPLEMENTAL TRUST FUND, attached hereto as Exhibit A and made a part hereof. Section 2. Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Clearwater. Section 3. All Ordinances or parts of Ordinances in conflict herewith are hereby repealed. Ordinance No. 8244-11 Section 4. If any section, subsection, sentence, clause, phrase of this ordinance, or the particular application thereof shall be held invalid by any court, administrative agency, or other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under application shall not be affected thereby. Section 5. This Ordinance shall become effective upon its adoption. PASSED ON FIRST READING PASSED ON SECOND AND FINAL READING AND ADOPTED April 20, 2011 May 5, 2011 Frank Hibbard Mayor Approved as to form: IZAA, -?A.*-- Ro ert J. re e Assistant ity Attorney Attest: n( U V1410 6W RdsE(marie Call EK.City Clerk wX TTHE 0 6. .' 1AW 2 Ordinance No. 8244-11 CITY OF CLEARWATER FIREFIGHTERS' SUPPLEMENTAL TRUST FUND Sec. 2.441. Definitions. (1) 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: Account or accounts shall mean a participant's state contribution account, employee contribution account, voluntary contribution account, transfer account and/or such other accounts as may be established by the plan administrator. Administrator shall mean the plan administrator. Anniversary date shall mean September 30 of each plan year. Annu I additions shall mean for any limitation yeaF, the sum of: M ernpleye4:L, (24 The a?ea ? ant„? `+ o, f the ea}yleY vee's v nnnFo,?,nribUtionnS ( rvE)ther than rE)llrwer ? ,-„?----on---„,„?-- if aRY) to any GontFibutoFy defined GontFibution plan GOn#ibm e maintained by the employer; s plan m-aintained by the ernpleyeF; OF Amounts aliGGated to an individual Fnedieal aGGOunt, as defined on seGtien City means the City of Clearwater. Code means the Internal Revenue Code of 1986, as amended from time to time. Exhibit A "annual n addition" under seGtiep 415(l)(1) of the Code-. Compensation shall mean the reciular salaries and wages, bonuses and overti 1 VUV11 11 1 W--. v..• •.v.... ?.... ., ...?.-.-....?, i amounts paid by the employer to a plaR deGGFibed payments, but not limited to disability M Credited service means, for purposes of participation, that period of continuous uninterrupted employment with the city for those firefighters whose employment commenced on July 1, 1963, or later, measured from the effective date of the ordinance creating the fund (September 9, 1968) or the second October 1st following the date of employment, whichever is later, except for the years beginning September 1, 1987 and September 1, 1988, to date of termination of service, actual retirement, death or disability, whichever occurs earlier. Any period of unpaid leave in any calendar year shall not count as credited service. As to a participant who terminated employment, for purposes of determining the participant's benefit under the plan subsequent to reemployment, credited service shall mean years of credited service beginning on the participant's date of reemployment. The years or fractional parts of a year that a member seare6 in the rnilitaQ? )f the Affned Fc)Foe6 of the United States, the United States MeFGhant OF the United States Coast GuaFd, voluntaFily OF involuntaFil performs "Qualified Military Service" consisting of voluntary or involuntary "service in the uniformed services" as defined in the Uniformed Services Employment and Reemployment Rights Act (USERRA) (P.L.103-353), after separation from employment as a firefighter with the city to perform training or service, and reemployment on or after December 12, 1994, shall be added to his years of credited service for all purposes, including vesting, provided that: M The member is entitled to reemployment under the provisions of USERRA. {?} (2) The member eat returns to his employment as a firefighter within one year from the earlier of the date of his military discharge or his release from service unless otherwise required by USERRA. 4 Ordinance No. 8244-11 1 ine GGFnpensatiGR limit will be multiplied by a 1 1 and the deneminateF of which +is 4-2-. (24 (3) The member deposits into the fund the share of insurance tax rebate money that would otherwise have been allocated to his account. The member must deposit all missed contributions within a period equal to three times the period of military service, but not more than five years or he will forfeit the right to receive credited service for his military service pursuant to this section. k34 (4) The maximum credit for military service pursuant to this section shall be five years. (4) (5) The member must have been discharged or released from service under honorable conditions. (-5) ? This section is intended to satisfy the minimum requirements of the Uniformed Services Employment and Reemployment Rights Act (USERRA), (P.L. 103-353). To the extent that this section does not meet the minimum standards of USERRA, as it may be amended from time to time, the minimum standards shall apply. the event a member dies on or after January 1, Luu t, wniie perrormin Qualified Military Service the beneficiaries of the member are entitled to any other than benefit accruals relating to the period of qualified military service) as nber had resumed employment and then died while employed. Fective date of this plan shall mean October 1, 1968, except as may otherwise be noted herein. Employee shall mean any certified firefighter as defined in Section 175.032, Florida Statutes, employed by the employer on a permanent, full-time basis and whose employment commenced on or after July 1, 1963. The plan administrator shall have the right to determine from time to time which persons are employed on a permanent full- time basis for the purposes of this plan. Employer shall mean the City of Clearwater, Florida and shall include the State of Florida to the extent state monies are used to fund plan contributions. Employer contributions shall mean insurance premium tax rebate monies received from the State of Florida pursuant to Chapter 175, Florida Statutes. Employer contribution account shall mean an account established in which employer contributions are deposited and maintained as provided for herein. Firefighter shall have the meaning amended from time to time. The term inclu personnel whose duties include, in whole o and management responsibilities of full. auxiliarv firefiahters but does not include pa set forth in F.S. § 175.032, as may be es all certified. suaervisorv. and command ters or aux 5 Ordinance No. 8244-11 Fund means the trust fund established herein as part of the system. M W { in deteRnining who is a highly Gempepsated employee, employees who aFe nre6eden+ lions and whn renelye no eaFHed iReervme (within the (3) Cer purposes of d ininn ..hetheF anremployee is a highly (om) / T Gempensated employee, if any employee is a family member of a high4y Limitation year shall mean the plan year. Man days means the sum of the total number of employees for the complete calendar year multiplied by the actual number of days in such calendar year plus the total number of days actually worked by employees and separated participants not employed for such entire calendar year. 6 Ordinance No. 8244-11 Member means an actively employed employee who fulfills the prescribed membership requirements as set forth in section 2.446. Benefit improvements which, in the past, have been provided for by amendments to the system adopted by city ordinance, and any benefit improvements which might be made in the future shall apply prospectively and shall not apply to members who terminate employment or who retire prior to the effective date of any ordinance adopting such benefit improvements, unless such ordinance specifically provides to the contrary. Normal retirement date means the first day of the month coincident with, or the next following attainment of 20 years of credited service, regardless of age. Normal retirement under the plan is retirement from employment as a firefighter with the city on or after the normal retirement date. Participant shall mean any eligible employee of the employer who has become a member under the plan and who has an account balance. Participant shall include any former employee of the employer who became a participant under the plan and who still has a balance in an account under the plan. Plan shall mean the defined contribution plan as herein set forth, as it may be amended from time to time. Plan administrator shall mean the board of trustees of the City of Clearwater Firefighters' Supplemental Trust Fund. Plan year shall mean the period beginning October 1 and ending September 30 of the following calendar year except that September 1, 1987 to August 31, 1988 and September 1, 1988 to September 30, 1989 are the plan years for those periods. Section 415 compensation shall mean all compensation as described in section 1.415-2(d)(2) and section 1.415-2(d)(3) of the Income Tax Regulations. System means the City of Clearwater Firefighters' Supplemental Trust Fund and rules adopted by the board. Trust or trust fund shall mean the fund established hereunder, known as the City of Clearwater Firefighters' Supplemental Trust Fund. Trustee shall mean the individual or individuals named herein. Valuation date shall mean October 1 of each year and each day securities are traded on a national stock exchange, except regularly scheduled holidays of the employer, or such other date as may be selected by the plan administrator. Vesting means attainment of ten years of employment with the city as a firefighter and membership in the plan. (2) Masculine gender. The masculine gender, where used herein, unless the context specifically requires otherwise, shall include both the feminine and masculine genders. Sec. 2.442. Benefits supplemental to other plans. This subdivision shall provide additional and supplemental retirement, termination, death and disability benefits for participants whose employment commenced on or after July 1, 1963, and shall not supersede or modify the existing 7 Ordinance No. 8244-11 pension, disability or retirement system of the city as provided by the charter, the laws of the state or existing ordinances of the city. Sec. 2.443. Board of trustees--Creation, members. (1) The sole and exclusive administration of and responsibility for the proper operation of the system and for making effective the provisions of this division are hereby vested in a board of trustees. The board of trustees is hereby designated as the plan administrator. The board of trustees shall consist of five trustees, two of whom, unless otherwise prohibited by law, shall be legal residents of the city who shall be appointed by the city commission, and two of whom shall be members of the system, who shall be elected by a majority of the firefighters who are members of the system. The fifth trustee shall be chosen by a majority of the previous four trustees as provided for herein, and such person's name shall be submitted to the 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 the board's fifth trustee. The fifth trustee shall have the same rights as each of the other four trustees appointed or elected as herein provided and shall serve a hve-yea four-year term unless he sooner vacates the office. Each resident trustee shall serve as trustee for a period of tWG four years, unless he sooner vacates the office or is sooner replaced by the city commission, at whose pleasure he will serve. Each member trustee shall serve as trustee for a period of twe four years, unless he sooner leaves the employment of the city as a firefighter, or otherwise vacates his office as trustee, whereupon a successor shall be chosen in the same manner as the departing trustee. Each trustee may succeed himself in office. The board shall establish and administer the nominating and election procedures for each election. (2) The board of trustees shall meet at least quarterly each year. (3) The 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, and 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. (6) Each trustee shall be entitled to one vote on the board. Three affirmative votes shall be necessary for any decision by the trustees at any meeting of the board. A trustee shall have the right to abstain from voting as the result of a conflict of interest provided that trustee complies with the provisions of Section 112.3143, Florida Statutes. Sec. 2.444. Same--Powers and duties. The duties and responsibilities of the board of trustees created pursuant to this subdivision shall include, but not necessarily be limited to the following: (a) Invest and reinvest the assets of the fund in annuity and life insurance contracts of insurance companies or any combination thereof, in amounts sufficient to provide, in whole or in part, the benefits to which all of the Ordinance No. 8244-11 members in the system shall be entitled under the provisions stated in this subdivision, and pay the initial and subsequent premiums thereon; (b) Invest and reinvest the assets of the fund in: 1. Time or savings accounts of a national bank, a state bank or a savings and loan association insured by the Federal Deposit Insurance Corporation; 2. Obligations of the United States or in obligations guaranteed as to principal and interest by the United States; 3. Stocks, commingled funds administered by national eF state , 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 States, any state or organized territory of the United States, or the District of Columbia, and each equity and debt security must be traded on a nationally recognized exchange. Ali debt seo Fides fund, then the FatiRg of eac;h issue iR the pooled fund shall held a Fating "131313" The average rating of the entire debt securities portfolio shall be "A" or higher as rated by 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 Florida Statutes Chapter 175, as amended from time to time. Up to twentv-five (25) percent of the assets of the fund at market value 4. The board of trustees shall not invest more than five percent of its assets in the common stock or capital stock of any one issuing company, the aggregate investment in any one issuing company shall not exceed five percent of the outstanding capital stock of that company, and the aggregate of its investments at sort market shall not exceed 69 65 percent of the fund's assets. 5. Real estate through commingled or mutual funds and REITs traded 6. Any other investments permitted under the applicable provisions of Chapter 175, Florida Statutes, as amended from time to time. (c) Issue drafts or authorization for payments upon the fund pursuant to the rules and regulations prescribed by the board of trustees. All such drafts or authorizations shall be signed by the chairperson and the secretary and shall state upon their face the purpose for which the drafts were drawn. The depository shall retain such drafts or authorizations when paid, as permanent vouchers for disbursements made, and no money shall otherwise be drawn from the fund; 9 Ordinance No. 8244-11 (d) Convert into cash any securities of the fund; (e) Keep a complete record of all receipts and disbursements and of the board's acts and proceedings; (f) Seek, obtain and engage independent professional services, including attorneys, certified public accountants, investment advisors, custodians, and any other consultants necessary for the prudent administration of the fund, and to pay reasonable charges for such services. The sole and exclusive administration of and the responsibilities for the proper operation of the system are vested in the board of trustees. (g) The board shall not invest more than ten percent at eGst market of its assets in real property or real estate and there shall be no investment in a limited partnership or trust. (h) To construe the provisions of the system and determine all questions arising thereunder. (i) To determine all questions relating to eligibility and membership. (j) To determine and certify the amount of all retirement allowances or other benefits hereunder. (k) To establish uniform rules and procedures to be followed for administrative purposes, benefit applications and all matters required to administer the system. (1) To distribute to members, at regular intervals, information concerning the system. (m) To receive and process all applications for benefits. (n) To make recommendations regarding any and all changes in the provisions of the system. (o) To perform such other duties as are required to prudently administer the system. Sec. 2.445. Creation, maintenance of funds. (1) Name of plan. A defined contribution plan has been established in accordance with the terms hereof and shall be known as the City of Clearwater Firefighters' Supplemental Trust Fund. (2) Exclusive benefit. This plan is created for the sole purpose of providing benefits to the participants. Except as otherwise permitted by law, in no event shall any part of the principal or income of the trust be paid to or reinvested in the employer or be used for or diverted to any purpose whatsoever other than for the exclusive benefit of the participants and their beneficiaries. (3) Mistake of fact. Notwithstanding the foregoing provisions of paragraph (2), any contribution made by the employer to this plan by a mistake of fact may be returned to the employer within one year after the payment of the contribution. 10 Ordinance No. 8244-11 (4) Participants' rights. The establishment of this plan shall not be considered as giving any employee, or any other person, any legal or equitable right against the employer, the trustee or the principal or the income of the trust, except to the extent otherwise provided by law. The establishment of this plan shall not be considered as giving any employee, or any other person, the right to be retained in the employ of the employer. (5) Qualified plan. This plan and the trust are intended to qualify under the code as a tax-qualified employees' plan and trust, and the provisions of this plan and the trust are to be interpreted accordingly. (6) Source of contributions. Subject to the right reserved by the city, with the unanimous approval of the board, to alter, amend, or terminate this plan, the city shall transfer the following funds to the trustees of this plan: (a) The proportionate share of the net proceeds of the excise or license tax which is imposed upon certain fire and tornado loss insurance companies on their gross receipts of premiums from holders of policies; (b) All gifts, bequests, and devises when donated to the fund; (c) All accretions to the assets of the fund by way of interest on bank deposits, dividends, interest or otherwise; (d) All other sources of income now or hereafter authorized by law for the augmentation of the fund. (7) No reversion to employer. In no event and under no circumstances shall any contributions to this fund by the city, nor any of the fund assets or income therefrom, revert to or be paid to the city. All amounts paid by the city to the trustees shall be used and applied for the sole and exclusive benefit of the participants under this fund or their beneficiaries or estates. (8) Plan expenses. The entire cost of administering this system, and all expenses incident thereto, shall be paid by the trustees from the fund. Sec. 2.446. Membership. (1) All current members of the system shall continue to be members and all future firefighters as a condition of employment, shall become members of the system beginning on the second October 1st following his date of employment as a firefighter by the City of Clearwater. (2) An employee who ceases to be a member, terminates employment and is reemployed by the employer, shall be eligible again to become a member as provided for in subsection (1) above. Sec. 2.447. Allocations of contributions. (1) Maintenance of accounts. The trustee shall create and maintain appropriate books and records showing the respective interest of each participant, terminated vested participant, and beneficiary hereunder. Each participant shall have an employer contribution account for his share of employer contributions, forfeitures, and 11 Ordinance No. 8244-11 income adjustments relating thereto. The trustee shall maintain a separate account for each participant, terminated participant, and beneficiary. The maintenance of separate accounts, however, is for accounting purposes only, and a segregation of the assets of the trust fund to each account shall not be required. (2) Allocations of contributions. The contributions of the employer shall be allocated on the first day of each plan year to and among those participants that are entitled to a contribution allocation for the immediately preceding plan year. For example, the employer contribution that was made on October 1, 1990, was allocated among those participants that were entitled to a contribution allocation for the plan year that commenced on October 1, 1989, and terminated on September 30, 1990. For purposes of this subsection (2) those participants that are entitled to a contribution allocation for a particular plan year shall mean those participants that performed services for the employer for the entire prior calendar year, or for a portion of such prior calendar year for which such participant is granted partial credit under subsection (4) hereunder. Except as otherwise provided under subsection (4) with respect to participants that perform a partial prior calendar year of service, such contributions shall be allocated equally among such participants' accounts; that is each participant account shall receive an equal allocation of such contributions. (3) Allocation of income. The trust fund income shall be allocated monthly during the plan year among the participants' accounts based on the ratio between the account balance of each participant at the time of allocation and the sum of the account balances of all participants at the time of allocation. Income shall be allocated to the accounts before the amount of any forfeiture is determined. (4) Partial allocation of contributions. Upon the date that the participant's service with the employer is terminated for any reason, including, but not limited to, retirement, death, or disability, then the following rules shall apply to determine the amount, if any, of the employers contributions that will be allocated to such participant's employer contribution account. For purposes of this subsection (4), the date upon which a participant's service with the employer is deemed terminated (the "termination date") shall be the last day of the calendar month that he officially separates from employment. The amount of any employer contributions that will be allocated to a participant depends on when the termination date occurs. As stated in subsection (2) above, for each complete calendar year of service performed by the participant, such participant shall be entitled to a full, equal share of the employer contribution on the applicable allocation date. If the termination date results in the performance of a partial calendar year of service, then pro rata credit shall be granted for each day of service performed during the period that commences on January 1 and terminates on December 31. The portion of the employer's contribution that will be allocated to such participant's account on the applicable allocation date as a result of such pro rata credit shall equal the product of: (i) an amount equal to the allocation made under subsection (2) on behalf of a participant that performed a full year of service for such plan year, multiplied by (ii) that certain fraction the numerator of which is the number of days for which pro rata credit is granted to such participant, and the denominator of which is 365. (5) No right to allocation. The fact of allocation or credit of an allocation for an employer contribution by the trustees to a participant's employer contribution account shall not vest in any participant, any right, title, or interest in the assets of the trust or in the contributions of the employer except at the time or times, to the extent, and subject to the terms and conditions provided in this plan. 12 Ordinance No. 8244-11 Maximum additions. --..-1 -J-]:L:---11 L- f tFustee will multiply the f f ac-tm an : The term "annual addition6" means the amount oGated to a nnrti g /a\ Th?yeehle share of the employer onntrihl Minn fur the limltatiOR dear, The IIGGa le share of-ffVReit I es ferr the he llirrnitatiO yeaF; /n\ 011 employee nnntributions made dl,Finn the lirnitation year if the annual additions eXGeed the limit above ation deSGribed the an , 1 additions to the in the f. IIE)Winn order Of preoedenee• w (b"/ the extent th?F rnaains an ame nt that Gannet he allocated unider 6ubpaFagFaph `7 1 1) above, 11suspense fwfeitwe and shall irvG-field tneFein unto! the nevi GUG/?pding date or dates , dates that foeFwert?r? eo a? ai+sEat Suspense TUGGri ?-? -??ed 1- -?? annul bete shall not share in trl lot innome under of bsentinn (Q)In the event n ticved an cind eatien of the plan, the suspense-aECount shall be all a n-v-TrvCt-v the fZorm Ilap7a provided s IAseGCieen (2)1 Tbut s fapll revert to the Gem pl.J7VIeGTITT the e event v vcnr that crrc?r it Gannet he fully alIGGated to the plover nontribution - -?? (a) Notwithstanding any other provision of the System, the annual addition that may be contributed or allocated to a Member's account for anv not 13 Ordinance No. 8244-11 seGtinn do not apply for the limitation dear but only to the extent that S Inh nartinipant'o annul Into to evoeed the limitations of this oentinn 1. $40,000, as adjusted for increases in the cost-of-living prescribed by the Secretary of the Treasury under Code Section 415(d), or 2. 100 percent of the Member's compensation for the limitation year (limitation year means the calendar year). Annual Addition Definition: The term "annual additions" means the amount allocated to a Member's account during the limitation year that is composed of: 1. The allocable share of the employer contributions (Chapter 175) for the limitation year. 2. The allocable share of forfeitures for the limitation year: and 3. Any post-tax employee contributions made during the limitation year. (c) Compensation Definition: the annual limit under Code Section 401(a)(17) (increased bursuant to 34w (a) Tor the purposes OT income tax wannoiging at the source, but determined without regard to any rules that limit the remuneration included in waaes based on the nature or location of the emplovment or the se erection .54y-i (a)(z)): proviaea, nowever, compensation snail also rncwae the amount of any elective deferrals, as defined in Code Section 402(g)(3), and any amount contributed or deferred by the Employer at the election of the Member and which is not includible in the gross income of the Member by reason of Code Sections 125, 132(f) (as of January 1, 2001). or 457. Compensation shall not include contributions nicked-un Generallv, compensation is the compensation durina the abblic< limitation year. However, solely for purposes of this 415(c) limit, payments made wi 2Y2 months after termination, or, if later, the end of the limitation year during which termination occurred will be taken into account in determining compensation allocations if they are payments that, absent a termination, would have been paid to Member while the Member continued in employment with the Employer and are: 1. regular compensation for services during the Member's reg working hours, or compensation for services outside the Memb regular work hours (such as overtime or shift different commissions, bonuses, or other similar payments, and compensation would have been paid to the Member prior t termination if the Member had continued employment with Emblover: or 14 Ordinance No. 8244-11 2. 3. payments pursuant to a nonqualified un compensation plan, but only if the payments wou to the Member at the same time if the Memb employment with the Employer and only to th payment is includible in the Member's aross incon payments not described above are termination, even if thev are paid within 2' iermination, or, IT later, the ena of tne_Man Year during which the termination occurred. except Tor payments to the iviemper wno goes not currently perform services for the Employer by reason of qualified military service (within the meaning of Code Section 414(u)(1)) to the extent these payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the Employer rather than entering qualified military service. ?aFtiGipa , r, . both .-l?j CTCFii7Tr, /? T?[rP"? F r•. utiAh and defined benefits Plans. in f th e f The surn of the FojeGted annual ben fit f th ti i t d ll d fi p e o e paF G pan un eF a e ned . r .. . .. ,. .. .. -- - _ _ s 1982, the denorniR I EIIIS 11-G.1011 110 15 Ordinance No. 8244-11 duly -1, e the defined GentFibution plan ftac-tien . The sum of the annual additions (deteFmined as of the olose of the limitatk?A The teFrn 11 11 1 and fees for wages, 1 ernpleymeRt with the empleyeF maintaining the plan, but eXGludung the follow' _ W GmPnleyer GentFihl IFions to a plan of defeRed nmmpenc Finn ?ihinh re ne J v Vl1l' employee, 1 (b) o:he. amounts .. h?..h a speGial x benefits, ova 16 Ordinance No. 8244-11 - 1 plaRS); OF, (11) 6b peFGent et the . 1 the following teFFnS S have the meanings shown hel.,m hf .?...v.... n...`.w lly rrll v?.lv The teFFn I"defined benefit plan" shall mean a FetiFement plan that does not d 0 efined benefit plans (whetheF oF not teFminated) maintained by the employer as a s ngle plan and the tFustees shall tFeat all defined GentFibution plans (whetheF OF not teRninated) maintained by the empleyeF a single plan. The tern; "ffejeoted annual benefit" shall mean a partioffipant'6 annual benefitt The term "knitation yeaF ef seFV*Ge" shall mean a plan yeaF dWing whiGh--a paFtiripan+ nem VVII It./nletes a GOMplete plan yeaF of senrine ?r ..n. .. V.NMIII Il'IVG- • Sec. 2.448. Benefits under the plan. (1) Retirement benefit. a. A participant shall be entitled to a normal retirement benefit upon attainment of the normal retirement date. b. Until a participant actually terminates employment with the employer, he shall not receive a distribution and he shall continue to be treated as a participant. C. Such benefit shall be paid as provided for in section 2.449. d. Required distribution date. The member's benefit under this section must begin to be distributed to the member no later than April 1 of the calendar year following the later of the calendar year in which the member attains age seventy and one-half (70'/2) or the calendar vear in which the member terminates emnlovment with the r:ity (2) Termination benefit. a. In the event that a participant's employment with employer is terminated by reason other than retirement, death or disability, he shall be entitled to receive an amount equal to his vested benefit, if any, which shall be paid as provided for in section 2.449. (3) Disability benefit. a. In the event that a participant is determined to be disabled by the board of trustees of the City of Clearwater Employees' Pension Plan, and such disability was incurred in the line of duty, he shall be paid a benefit as provided for in section 2.449. b. In the event that a participant is determined to be disabled by the board of trustees of the City of Clearwater Employees' Pension Plan, and such disability was not incurred in the line of duty, he shall be entitled to his vested benefit, if any, which shall be paid as provided for in section 2.449. 17 Ordinance No. 8244-11 C. If the event that a disability retiree is recalled to employment, membership in the system shall be pursuant to the provisions of section 2.446. (4) Death benefit. a. In the event that a participant dies and such death is determined by the plan administrator to have been incurred in the line of duty, he shall be paid a benefit as provided for in section 2.449, to his designated beneficiary, or if none, to his estate. b. In the event that a participant dies and such death is determined by the plan administrator to have not been incurred in the line of duty, he shall be entitled to his vested benefit, if any, which shall be paid as provided for in section 2.449, to his designated beneficiary, or if none, to his estate. Sec. 2.449. Vesting and distributions. Except for an in-line of duty incurred disability or death, a member must be employed with the city as a firefighter and a member of the plan for ten or more years to become vested and earn any benefit (account value) from the plan. A member or participant who is not vested shall not receive any benefit from the plan. A vested member who becomes eligible for payment of benefits as provided for in section 2.448 shall receive the value of his account as follows: (1) Initial distribution. Upon entitlement to a benefit, the participant's account value, as determined by the plan administrator, as of the last day of the month in which there was official separation from employment shall be paid. (2) Second distribution. A separated participant shall receive a full share of employer contributions (state insurance premium tax rebate) at the end of the first plan year following the separation from employment as a participant. No earnings or losses shall be credited to or debited from the account. The second distribution may be combined with the initial distribution if previous calendar year employer contributions (SIPTR) have been allocated and credited to the participant's account at the time the initial distribution is made. (3) Final distribution. A separated participant shall receive a pro-rated share of employer contributions (state insurance premium tax rebate) at the end of the second plan year (or first plan year if a combined initial and second distribution was made) following the separation from employment as a participant. The pro-rated share shall be determined by dividing the total number of man days for the prior calendar year into the total amount of the state insurance premium tax rebate monies received from such prior calendar year, then multiplying such quotient by the total number of calendar days that the separated participant actually worked as a member in such prior calendar year. No earnings or losses shall be credited to or debited from the account. Sec. 2.450. Termination of system. (1) Upon termination of the system for any reason, the fund shall be apportioned and distributed in accordance with section 2.449 to the extent permitted by the state insurance premium tax rebate monies. The board of trustees shall determine 18 Ordinance No. 8244-11 the date of distribution and the asset value to be distributed upon termination of the system. Sec. 2.451. Direct transfer of eligible rollover distributions. (1) Rollover distributions. (a) General. This section applies to distributions made on or after January 1, 2002. Notwithstanding any provision of the system to the contrary that would otherwise limit a distributee's election under this 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 to an eligible retirement plan specified by the distributee in a direct rollover. (b) Definitions. (1) Eligible rollover distribution: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Code; and the portion of any distribution that is not includable in gross income. Effective January 1, 2002, any portion of any distribution which would be includable in gross income as after-tax employee contributions will be an eligible rollover distribution if the distribution is made to an individual retirement account described in section 408(a), to an individual retirement annuity described in section 408(b), or to a qualified defined contribution plan described in section 401(a) or 403(a) that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of such distribution which is includable in gross income and the portion of such distribution which is not so includable ; or on or after January 1, 2007, to a qualified defined benefit plan described in Code Section 401(a) or to an annuity contract described in Code Section 403(b), that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible- (2) Eligible retirement plan: An eligible retirement plan is an individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, an annuity plan described in section 403(a) of the Code, an eligible deferred compensation plan described in section 457(b) of the Code which is maintained by an eligible employer described in section 457(e)(1)(A) of the Code and which agrees to separately account for amounts transferred into such plan from this plan; effective January 1, 2002, an annuity contract described in section 403(b) of the Code, of a qualified trust described in section 401(a) of the Code; or effective January 1, 2008, a 19 Ordinance No. 8244-11 Roth IRA described in Section 408A of the Code, that accepts the distributee's eligible rollover distribution. This definition shall apply in the case of an eligible rollover distribution to the surviving spouse. (3) Distributee: A distributee includes an employee or former employee. to addit+e+ It also includes the employee's or former employee's surviving spouse i tFib tee with Fegard to the the inRke? st of the spo Leo is - ? d+s?? and the (4) Direct rollover. A direct rollover is a payment by the plan to the eligible retirement plan specified by the Distributee. (c) Elimination of mandatory distributions. Notwithstandina anv other m the Plan not otherwise reauired by law. for an amount in excess of one-thousand dollars ($1.000.00). and completion by the Member of a written election on forms desianated by the Board. ump sum or to rollover the I Sec. 2.452. Forfeiture of pension. (1) Any member who is convicted of the following offenses committed prior to retirement, or whose employment is terminated by reason of his admitted commission, aid or abetment of the following specified offenses, shall forfeit all rights and benefits under this system as of the date of termination. Specified offenses are as follows: (a) The committing, aiding or abetting of an embezzlement of public funds; (b) The committing, aiding or abetting of any theft by a public officer or employee from employer; (c) Bribery in connection with the employment of a public officer or employee; (d) Any felony specified in Chapter 838, Florida Statutes; (e) The committing of an impeachable offense; (f) The committing of any felony by a public officer or employee who willfully and with intent to defraud the public or the public agency, for which he acts or in which he is employed, of the right to receive the faithful performance of his duty as a public officer or employee, realizes or obtains or attempts to obtain a profit, gain, or advantage for himself or for some other person through the use or attempted use of the power, rights, privileges, duties or position of his public office or employment position L(II The committing on or after October 1, 2008, of any felony defined in Section 800.04, Florida Statutes, against a victim younger than sixteen (6) years of age, or any felony defined in Chapter 794, Florida Statutes against a victim younger than eighteen (18) years of age by a public officer or employee through the use or attempted use of power, rights privileges, duties, or position of his or her public office or employment position. 20 Ordinance No. 8244-11 (2) Conviction shall be defined as an adjudication of guilt by a court of competent jurisdiction; a plea of guilty or a nolo contendere; a jury verdict of guilty when adjudication of guilt is withheld and the accused is placed on probation; or a conviction by the Senate of an impeachable offense. (3) Court shall be defined as any state or federal court of competent jurisdiction which is exercising its jurisdiction to consider a proceeding involving the alleged commission of a specified offense. Prior to forfeiture, the board shall hold a hearing on which notice shall be given to the member whose benefits are being considered for forfeiture. Said member shall be afforded the right to have an attorney present. No formal rules of evidence shall apply, but the member shall be afforded a full opportunity to present his case against forfeiture. (4) Any member who has received benefits from the system after member's rights were forfeited shall be required to pay back to the fund the amount of the benefits received. The board may implement all legal action necessary to recover such funds. Sec. 2.453. QualifiGation of system Miscellaneous provisions. a) Interest n fund are held in retirees ana_members and their spouses or beneticianes. shall anv part of the corpus or income benefit. system. It is intended that the system will constitute a under the applicable provisions of the code for a qualified a) and a qovernmental plan under code section 414(d). as nt of the be made retroactively, if necessarv or aDDrobriate. to aualifv or maintain the svstem as ui effect or hereafter amended, or anv other apDlicable provisions of the U.S. federal tax laws, as now in effect or hereafter amended or adopted, and the reaulations issued LCI Pr( in a tran USERRA. Effective December 12. 1994, n ision of this svstem. contributions. benefits and servii milita a board it extent that the definition of "credited service" sets forth contribution reauirements that 21 Ordinance No. 8244-11 p ews?e s et the tedeFal tax law6, ^-T,o effect aF hereaft°eF amended o and the Fegulations 066ued . are more favorable to the member than the minimum compliance requirements, the more favorable provisions shall apply. Electronic forms. In those circumstances where a written election or lieu of or in addition to a written form may be prescribed by the board. However. where Sec. 2.454. Domestic relations orders; Exemption from execution, non- assignability. (a) Domestic relations orders. benefits of a retiree. the member or retiree shall submit the proposed onor the oraer. LQ L?J Exemption from execution, non-assignability. Except as otherwise provided by law, the pensions, annuities, or any other benefits accrued or accruing to any person under the provisions of this ordinance and the accumulated contributions and the cash securities in the fund created under this ordinance are hereby exempted from any state, county or municipal tax and shall not be subject to execution, attachment, garnishment or any legal process whatsoever and shall be unassignable. Sec. 2.455. Beneficiaries. (1) Each member or retiree may, on a form provided for that purpose, signed and filed with the board, designate a beneficiary (or beneficiaries) to receive the benefit, if any, which may be payable in the event of his death. Each designation may be revoked or changed by such member or retiree by signing and filing with the board a new designation-of-beneficiary form. Upon such change, the rights of all previously designated beneficiaries to receive any benefits under the system shall cease. (2) If a deceased member or retiree failed to name a beneficiary in the manner prescribed in subsection (1), or if the beneficiary (or beneficiaries) named by a deceased member or retiree predeceased the member or retiree, the death benefit, if any, which may be payable under the system with respect to such deceased member or retiree, shall be paid to the estate of the member or retiree. 22 Ordinance No. 8244-11