8245-11ORDINANCE NO. 8245-11
AN ORDINANCE OF THE CITY OF CLEARWATER,
FLORIDA, RELATING TO THE CITY OF CLEARWATER
POLICE OFFICERS' SUPPLEMENTARY PENSION TRUST
FUND; AMENDING THE DEFINITIONS IN SECTION 2.471
AND THE ENTITLEMENTS IN SECTION 2.472 TO
COMPLY WITH INTERNAL REVENUE CODE CHANGES
AND CLARIFY BENEFIT CALCULATION; AMENDING
SECTION 2.473 TO INCREASE THE TERMS OF OFFICE
OF THE BOARD OF TRUSTEES; AMENDING SECTION
2.474 RELATING TO THE AUTHORITY OF THE BOARD
TO INVEST AND REINVEST THE ASSETS OF THE FUND;
AMENDING SECTION 2.476 TO CLARIFY THE REQUIRED
DISTRIBUTION DATE AND BENEFIT CALCULATION;
AMENDING SECTION 2.480 TO PROVIDE FOR
ROLLOVER DISTRIBUTIONS AND TO ELIMINATE
MANDATORY DISTRIBUTIONS IN COMPLIANCE WITH
THE TAX EQUITY AND FISCAL RESPONSIBILITY ACT;
ADDING SECTIONS 2.480.1 THROUGH 2.480.4 RELATING
TO FORFEITURES, MISCELLANEOUS PROVISIONS,
DOMESTIC RELATIONS ORDERS, AND BENEFICIARIES;
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Clearwater Police Officers 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
Police Officers' Retirement Plan to consolidate all prior ordinances and Code provisions
and to incorporate Federal law and the applicable provisions of Chapter 185, 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 5,
Police Officers' Pension Plan; Subdivision II, Supplementary Pension and Retirement
Plan is hereby amended and restated as set forth in the document designated CITY OF
CLEARWATER POLICE OFFICERS' SUPPLEMENTARY 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repealed.
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
Ordinance No. 8245-11
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
Approved as to form:
A
Robert 06r6ffe
Assistaity Attorney
April 20, 2011
May 5, 2011
r
Frank Hibbard
Mayor
Attest:
4o-Ro emarie Call
City Clerk
2
Ordinance No. 8245-11
CITY OF CLEARWATER
POLICE OFFICERS' SUPPLEMENTARY PENSION TRUST FUND
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 difference meaning:
Board means the board of trustees of the police officers pension trust fund as
provided for in this subdivision.
D?stributee meaRs an employee OF feFmer employee. in addition, the empley
dustFobutee with FegaFd to the inteFest of the
spouse.
? to the Fetiromcnt plan
Dirrencc+ rrevlleyeF m rreaf}s a payment- ithe plan
vvcr?
spenified by the diGtFib tee
will be an eli
ibl
FGI!c
v
F di6tFibutien of the diStFibutio n is made to an individual FetiFement
g
e
)
e
to an individ ual FetiFernent annuit
deGGFibed OR
r
seGtion 408(b)
ualified defiRed GentFibution
to a y
lan deSeFibed in seetion 401(a) OF
,
p
q
'
_
Net credit means the amount standing to the credit of a participant's share
account as at the end of the preceding fiscal year.
Exhibit A
tFUst deSGFibed in seGtien 401(a) of the internal Revenue SeFViGe i that aGGepts
dms#mbutee's eligible FGIIE)veF di6tFibUtiGR. Thi6 definition shall alGG apply in the GaSe Of an
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
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.
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 f^r the fiSGal year past ended of the last date of employment as a
participant.
(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 eaeh fiseal yea of the last date of employment as a participant, shall be
4 Ordinance No. 8245-11
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. PFGFaiicrnss,^" Rot be ade f^F a paFt of the yeaF
Prorations shall be made to the last date of employment as a participant.
(5) Maximum Additions.
a) Notwith
ntributed or allocated to a
hall not
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 185 monies) 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:
of this 415(c) limit. "compensation" means
nnuai nm
3401(a) for the puraoses of income tax withholdina at the source. but
in waaes based on the nature or location of the emplovment or the services
5 Ordinance No. 8245-11
amount of any elective deferrals, as defined in Code Section 402(8)(3),
and any amount contributed or deferred by the Employer at the election of
the Member and which is not includible in the aross income of the Member
414
n shall not i
7.
limitation vear. However. solelv for au
ri
allocations if they are payments that, absent a termination, would have been paid to the
Member while the Member continued in employment with the Employer and are:
1.
2.
3.
n
later. the end of the Plan Year durina which the termination occurred. except for
reason of qualified militarv service (within the meanina of Code Section 414(u)(1)) to the
extent these aavments do not exceed the amounts the individual would have received if
individual h
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 council, 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 council. Upon receipt of the fifth person's name, the city council 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 and shall
6 Ordinance No. 8245-11
commissions. bonuses. or other similar aavments. and the
serve a four year term unless he sooner vacates the office. Each resident member shall
serve as trustee for a period of #we four years unless sooner replaced by the city council,
at whose pleasure he will serve. Each police officer member shall serve as trustee for a
period of tws four years unless he sooner leaves the employment of the city as a police
officer, whereupon the city council 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.
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 banks,
admiRisteFed by national OF 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 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 administeFed by a state OF national
CIE 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
no?
service. No AIo fereigT, ? n investments is shall be r»rmitted het#e °r own
--r?-?--???- ?? ?--??
In no event. however. shall more than twenty-five percent of the assets of
s.
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
7 Ordinance No. 8245-11
capital stock of that company, nor shall the aggregate of its investments in common or
capital stock or convertible securities at Bost market 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 council.
(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.
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 of 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.
Sec. 2.476. Separation benefits.
(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 la6t preGedinn fiGGal last date of
employment as a participant, 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 of service from his date of hire as a police officer.
8 Ordinance No. 8245-11
(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.
distribution date. The member's benefit
to the member no later than April 1 of the
or the
ana one-
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.
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.
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.
Sec. 2.480. Direct transfers of eligible rollover distributions; elimination of
mandatory distributions. {y?? 1
ection applies on OF after Tama y 1, 7nn'?
T?1
(I)This
Notwithstanding any PFGViGion of the system to the GentFaFy that would Gtherwise limit a
i i at the time and On the
manneF PFeSGFibed by the beaFd, to have any peFtion of an eligible FolloveF4.
(1) Rollover distributions.
This section applies to d
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.
9 Ordinance No. 8245-11
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); 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(aa)
of the Code: or effective January 1, 2008, a Roth IRA described in Section
408A of the Code, that accepts the distributee's eligible rollover distribution.
This definition shall apply in the case of an eligible rollover distribution to
the survivina spouse.
(If) uirecr ronover. H aireci roiiover is a payment py the plan to the
eligible retirement plan specified by the Distributee.
(c) Elimination of mandatory distributions.
Notwithstanding any other provision herein to the contrary in the event this
Plan provides for a mandatory (involuntary) cash distribution from the Plan not otherwise
required by law, for an amount in excess of one-thousand dollars ($1,000.00), such
distribution shall be made from the Plan only upon written request of the Member and
completion by the Member of a written election on forms designated by the Board to
either receive a cash lump sum or to rollover the lump sum amount.
Sec. 2.480.1. Forfeiture of pension.
10 Ordinance No. 8245-11
(a) The committing, aiding or abettinq 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 committina of anv felonv by a public officer or emplovee who
a
uaiic omcer or
er person
his public office or emplovment
ction 800.04, Florida Statutes, against a vict
ars of age, or any felony defined in Chi
ainst a victim vounaer than eiahteen (18) ve;
Sec. 2.480.2. Miscellaneous provisions.
at no time prior to the satisfaction of all liabilities under
retirees ana mempers ana tneir spouses or penericianes, snap any part or ine corpus or
11 Ordinance No. 8245-11
income of the fund be used for or diverted to any purpose other than for their exclusive
ition of system. It is intended that tl
m plan under the applicable provision,
on 401(a) and a aovernmental plan un
now in effect or nereatter amenaea. Any moamcation or amenament of the system may
be made retroactively, if necessary or appropriate, to qualify or maintain the system as a
plan meeting the requirements of the applicable provisions of the code as now in effect
or hereafter amended, or any other applicable provisions of the U.S. federal tax laws, as
now in effect or hereafter amended or adopted, and the regulations issued thereunder.
(c) Prohibited Transactions. Effective as of January 1, 1989, a board may not
engage in a transaction prohibited by Code Section 503(b).
to
Services Employment and Reemployment Rights Act of 1994, as amended. To the
extent that the definition of "credited service" sets forth contribution requirements that are
more favorable to the member than the minimum compliance requirements, the more
favorable provisions shall apply.
(e) Electronic forms. In those circumstances where a written election or
consent is not required by the plan or the Code, an oral, electronic, or telephonic form in
lieu of or in addition to a written form may be prescribed by the board. However, where
applicable. the board shall comDly with Treas. Rea. & 1.401(a)-21.
r to
and the system expends administrative or legal fees in resolving the matter, the member
or retiree who submits such an order will be required to reimburse the system for its
expenses in connection with the order.
(b) Exemation from execution. non-assianability. Except as otherwise
erson unaer
12 Ordinance No. 8245-11
Sec. 2.480.3. Domestic relations orders; Exemption from execution, non-
assignability.
(a) Domestic relations orders.
from
Sec. 2.480.4. 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 beneficiarv (or beneficiaries) named by a deceased
may be savable under the svstem with respect to such deceased member or retiree.
13 Ordinance No. 8245-11