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9858-26 Docusign Envelope ID:60B4ABC3-1420-4761-A9C8-032BDOC C94C5 ORDINANCE NO. 9858-26 AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA; AMENDING CHAPTER 2, ARTICLE V, DIVISION 3, EMPLOYEES' PENSION PLAN, AMENDING SECTION 2.063 QUALIFICATIONS AND APPOINTMENT OF MEMBERS; AMENDING SECTION 2.411 PURPOSE OF THE PLAN AND THE TRUST; AMENDING SECTION 2.412 DEFINITIONS; AMENDING SECTION 2.413 PLAN ADMINISTRATION; AMENDING SECTION 2.425 PENSION FUND RECORDS; PROVIDING FOR INCLUSION IN THE CODE; PROVIDING FOR SEVERABILITY; PROVIDING FOR A REPEALER; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Clearwater Employees' Pension Plan (the "Plan") governs the payment of retirement benefits for City employees; and WHEREAS, in 2024, the process to determine whether a plan member meets the criteria for awarding a disability pension was changed; and WHEREAS, the Pension Advisory Committee ("PAC") no longer determines whether a plan member is entitled to a disability retirement benefit; and WHEREAS, the duties of the PAC are now ministerial in nature and non- substantive; and WHEREAS, this Ordinance will eliminate the PAC, and the Pension Trustees will now perform these ministerial duties; and WHEREAS, this Ordinance will not impact pension benefits, employee contributions, or the actuarial soundness of the plan; and WHEREAS, the Plan's actuary has studied the cost of this Ordinance; and WHEREAS, the City of Clearwater (the "City") has determined that the adoption of this Ordinance to be in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA, THAT: Section 1: Section 2.063 of the Code of Ordinances of the City of Clearwater is hereby amended to read as follows: Sec. 2.063. — Qualifications and appointment of members. (1) In addition to other qualifications which may be specified for board membership, a person appointed to a board shall be a resident of the city at 1 Docusign Envelope ID:60B4ABC3-1420-4761-A9C8-032BDOC C94C5 the time of appointment and shall maintain residency within the city during the term of the appointment as a condition of eligibility to hold office. No employee of the city shall be appointed to membership on a board of the city. As exceptions to the requirements of this section: (a) The firefighters relief and pension fund (also known as the supplementary firefighters retirement fund) board of trustees shall be appointed or elected as provided in section 2.443. (b) The firefighters pension fund board of trustees shall be elected or, in the case of the mayor and chief of the fire department, assume office as provided in Section 5 of Article I of the Related Laws of the city, derived from Chapter 30658, Laws of Florida, Special Acts (1955), or as may be amended from time to time. (c) The gas fitter's examining board shall be appointed as provided in the Gas Code of the City of Clearwater, Florida, 1965, as adopted by Ordinance 1070 on December 6, 1965, or as may be amended from time to time. (d)T RSOGR adviseFy,�riftee sh-all—be elc�^tec- aspFey;Qed -eeetie� 2.394(d). (e)J�Q The police officers pension trust fund (also known as the supplementary police officers' retirement fund) board of trustees shall be appointed or elected as provided in section 2.473(1). 4)jpI The Brownfields Advisory Board shall be appointed as provided in section 2.241. {g) (f) The Clearwater Housing Authority shall be allowed to have members that are residents of Pinellas County who are employed within the city limits. This exception shall be limited to not more than two members serving concurrently. (h) (g) The persons appointed to the neighborhood and affordable housing advisory board need not be residents of the city as long as they meet the qualifications set forth in section 2.226(2), except that the person referenced in subsection 2.226(2)(f) must be a resident of the city. {+)(h) The public art and design board shall be appointed as provided in section 5-1102 of the Community Development Code. 4)(i) The Sister Cities Board shall be appointed as provided in section 2.251. 2 Docusign Envelope ID:60B4ABC3-1420-4761-A9C8-032BDOC C94C5 Section 2: Section 2.411 of the Code of Ordinances of the City of Clearwater is hereby amended to read as follows: Sec. 2.411. – Purpose of the plan and the trust. (a) Exclusive benefit. (1) 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 pension fund 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. (2) Notwithstanding the foregoing provisions of subparagraph (1), 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. The circumstances as to whether a mistake of fact has occurred shall be reviewed by the Fe^ci^^ ad icnr. :Rittee`%h ch-All ci lhmit -A 4niritto^ ron^mmoRd-ati^n t^ the trustees. nl^tl^ii+hc+R-2iJi129 the—ee ttee's The trustees shall have final authority as to the determination of a mistake of fact. (b) 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 trustees, the r--e- « or the principal or the income of the pension fund, 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. (c) Qualified plan. This plan and the assets comprising the pension fund are intended to qualify under the Internal Revenue Code as a tax-free employees' plan and trust, and the provisions of this plan should be interpreted accordingly. Section 3: Section 2.412 of the Code of Ordinances of the City of Clearwater is hereby amended to read as follows: Section 2.412. – Definitions. Gengn9ittee shall mean ^o^Si^^ adyiseFy mmittee dee bed in conti^R vrn-rn-rr ��„um�rrcarr-t- Gip ,�C�mTrrr cc-crc�C-Fl-oca�rra�ccro,� 3 Docusign Envelope ID:60B4ABC3-1420-4761-A9C8-032BDOC C94C5 Section 4: Section 2.413 of the Code of Ordinances of the City of Clearwater is hereby amended to read as follows: Section 2.413. — Plan Administration. (a) Administration of the plan. The trustees, in conjunction with the committee, shall control and manage the operation and administration of the plan as provided in this section. (b) Trustees. (1) The members of the city council of the employer, whether elected or appointed, shall serve as the trustees. The term of office of each trustee shall be consistent with his term of office as a member of the city council. (2) The finance director of the employer shall be the treasurer for the trustees and shall provide such bond as may be prescribed by the trustees. (3) Each trustee shall be entitled to one vote. Three affirmative votes shall be necessary for any decision by the trustees at a meeting of the trustees. A trustee shall have the right to recuse himself from voting as the result of a conflict of interest provided that the trustee states in writing the nature of the conflict. (4) The trustees shall not receive any compensation for service as a trustee, but may be reimbursed expenses as provided by law; provided, however, that the trustees may receive compensation for services as a member of the city council. (c) Powers and duties of trustees. The trustees shall have final authority and control over the administration of the plan herein embodied, with all powers necessary to enable them to carry out their duties in that respect. Not in limitation, but in amplification of the foregoing, the trustees shall have the power and discretion to interpret or construe this plan and to determine all questions that may arise as to the status and rights of the participants and others hereunder. The trustees shall be deemed the named fiduciary of the plan and shall discharge their responsibilities solely in the interest of the members and beneficiaries of the plan for the exclusive purpose of providing benefits to the members and their beneficiaries and to defray the reasonable expenses of the plan. The trustees shall exercise those fiduciary responsibilities with the care, skill, prudence and diligence that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a 4 Docusign Envelope ID:60B4ABC3-1420-4761-A9C8-032BDOC C94C5 similar character and with similar aims under the circumstances then prevailing. The trustees may: (1) Invest and reinvest the assets of the pension fund to the extent permitted by Florida law. Notwithstanding any provision to the contrary, direct investments, including real estate investments, in businesses or property located within the City of Clearwater shall be prohibited; (2) Maintain such records as are necessary for calculating and distributing retirement benefits; (3) Maintain such records as are necessary for financial accounting and reporting of retirement plan funds; (4) Maintain such records as are necessary for actuarial evaluation of the retirement plan, including investigations into the mortality, service and compensation experience of its members and beneficiaries; (5) Compile such other administrative or investment information as is necessary for the management of the retirement plan; (6) Process, certify and respond to all correspondence, bills and statements received by the retirement plan, as well as all applications submitted to the board for retirement benefits; (7) Establish and maintain communication with city departments and other agencies of government as is necessary for the management of the retirement plan, including preparing, filing and distributing such reports and information as are required by law to be prepared, filed or distributed on behalf of the retirement plan; (8) Determine all questions relating to, and process all applications for, eligibility, participation and benefits; (9) Distribute at regular intervals to employees a comprehensive summary plan description and periodic reports, not less than biennially, regarding the financial and actuarial status of the plan; (10) Retain and compensate such professional and technical expertise as is necessary to fulfill its fiduciary responsibilities; (11) Make recommendations regarding changes in the provisions of the plan; (12) Assure the prompt deposit of all member contributions, city contributions, and investment earnings; (13) Establish a uniform set of rules and regulations for the management of the trust; 5 Docusign Envelope ID:60B4ABC3-1420-4761-A9C8-032BDOC C94C5 (14) Take such other action as the trustees shall deem, in their sole and exclusive discretion, as being necessary for the efficient management of the plan; (15) Cause any pension fund investment in securities to be registered in or transferred into its name as trustee or into the name of such nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the pension fund; (16) Vote upon any stocks, bonds, or securities of any corporation, association, or trust comprising the pension fund, and give general or specific proxies or powers of attorney with or without power of substitution; participate in mergers, reorganizations, recapitalizations, consolidations, and similar transactions with respect to such securities; deposit such stock or other securities in any voting trust or any protective or like committee with the trustees or with depositories designated thereby; amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally exercise any of the powers of an owner with respect to stocks, bonds, or other investments comprising the pension fund which it may deem to be in the best interest of the pension fund to exercise; (17) Retain in cash and keep unproductive of income such amount of the pension fund as it may deem advisable, having regard for the cash requirements of the plan; and (18) Retain the services of a custodian bank, an investment advisor registered under Investment Advisors Act of 1940 or otherwise exempt from such required registration, an insurance company, trust company or a combination of these, for the purposes of investment decisions and management. Such investment manager shall have discretion, subject to any guidelines as prescribed by the trustees, in the investment of all pension fund assets. (19) Arrange for the necessary physicians to pass upon all medical examinations required under this plan. Such physicians shall report in writing to the trustees their conclusions and recommendations. (20) Investigate and determine the eligibility of participants for disability pension as provided in section 2.418. (dPension r r`"T, ittee- the Gity > . �, GleapNat r , shall be appeiRted by the 6 Docusign Envelope ID:60B4ABC3-1420-4761-A9C8-032BDOC C94C5 twe years. }ho nnmmi++®® 0 With tweef the Mernbe.ms te be iRitially ele-ruted fer twe years and the third member te be initial , be inmi Ilii P pper� in ed f9F nn y eaF u�� v nn'mrmrirt fnr theA-f theiFr®cn®ntriV�e terms. ruelmmittee member, 0 0 appei 0 0 Ing mclmhnrc shAll hAve +k- e;-,-+ tA rPr_­;P himself frem veting as A result ef A rnenflir_ ef interest owc rn and duties f eep4p t 0) Then mmi r rylI 4aye Psi rity f ® o 0 7 Docusign Envelope ID:60 134A B C3-1 420-4761-A9 C8-032 B DOC C94C5 P RP_G.P_iVe All appliGatiens fer be-Refits, 1-Inde-F this plan and deteRnine Ali f�ar_-As, th�at are ReGessary te establish the right ef an appliGant te benefits under the plaR, -A44 ite -4 e Fe g e he PFepatre- _-4-istribu— te the paFtiGiPP_rRU_-iP1G_4A4-_ti R atiR t t plaR. P_ Investogate and dP_tP_RM.iRe the eligibility ef paFtiGipaRtS fA-F dils-Abbility ------- as pFevided on seGtOOR 2.418. (2) The GGFnrnittee shall, frern time te time as it deern- I I I te, submit FeGGmFneRa_a1ti9Rs; t the tFustees as te F-H�IeS, PFE)GeduFes, feFms and geReFall admninilsttiratiVe PFGGeGJ'_1FP_S FP_kating te the FeSPGRSibilities ef the ruernmittee (3) Ne beRefitS er relief shall be previ ed te aRy paFtiGipaRt URder the plaR URIeSS_ the s�a.rne h�as been reviewed by the GGFFlMittP_e ;and a FeGGMrneRdatiGR PFGViG1P_d tG_ th9 4616tees. (4) The PeRSiGR adviseFy GE)Rq-;++---- 1 diSGhaFge theiF Fespepsibilities SGIely iR the iRterest ef the members and beRefiGiaries ef the plaR and, iR se deiRg, shall eXeFG16e i-."4w_-P_J'.aFy Fe6PGRs_;i_bilitiP_S_ I.A.4ith the GaFe, skill, pFudeprue_d diligeRGe th�at a pr6ident PeFSGR aGtiRg in a like GapaGity and familiar I.AVith �Sl,lruh Matte-Irs INA-1--ld 161se 114 thp r-Andur-t Af An enterprise nf A a siMilAr PhArAPtPr PAP] With RirnilAr AiMR UAP]Pr th9 -then prevailing. 4}� Conflict in terms. In the event of any conflict between the terms of this plan and any explanatory booklet or other material, this plan shall control. (0� Final authority. Except to the extent otherwise required by law or by this plan, the decision of the trustees in matters within their jurisdiction shall be final, binding and conclusive upon the employer, the committee, each employee and beneficiary, and every other interested or concerned person or party. khLfJ Appointment of advisors. The trustees may appoint such actuaries, accountants, professional investment counsel, legal counsel, specialists, third party pension administrators, and other persons that they deem necessary and desirable in connection with the administration of this plan or to assist them in the performance of their duties as trustees. The trustees are authorized to pay for such services from the pension fund. k4 LgJ Actuarial valuation,- actuarial standards. (1) At least once in each six-year period, the trustees shall cause an actuarial investigation to be made into the mortality, service and compensation experience of the members of the retirement plan. Taking into account the result of such investigation, the trustees shall adopt for the retirement plan such mortality, service and other tables as are necessary and proper. On the basis of these tables, an annual actuarial valuation of the assets and liabilities of the retirement plan shall be made. 8 Docusign Envelope ID:60 134A B C3-1 420-4761-A9 C8-032 B DOC C94C5 (2) Actuarial assumptions based on the six-year experience analysis may be modified by the trustees at such times as they deem appropriate. {4� Defense of actions,- trustee liability; indemnification. (1) The board is authorized to prosecute or defend actions, claims or proceedings of any nature or kind for the protection of the fund assets or for the protection of the board in the performance of its duties. (2) Neither the board nor any of its individual members shall have any personal liability for any action taken in good faith. The trustees individually and the board as a whole shall be entitled to the protections in F.S. § 768.28. The trustees shall also be authorized to purchase from the assets of the fund, errors and omission insurance to protect the trustees and staff in the performance of their duties. Such insurance shall not provide the individual trustees and staff with protection against a fiduciary's fraud, intentional misrepresentation, willful misconduct or gross negligence. (3) To the extent not covered by insurance contracts in force from time to time, the employer shall indemnify and hold harmless the trustees and the members of the committee from all personal liability for damages and costs, including court costs and attorneys' fees, arising out of claims, suits, litigation, or threat of same, herein referred to as "claims," against these individuals because of acts or circumstances connected with or arising out of their official duty as trustees or members of the committee. The employer reserves the right, in its sole discretion, to settle or not settle the claim at any time, and to appeal or to not appeal from any adverse judgment or ruling, and in either event will indemnify and hold harmless any trustees or members of the committee from the Judgment, execution, or levy thereon. (4) This section shall not be construed so as to relieve from liability any insurance company or other entity liable to defend the claim or liable for payment of the judgment or claim, nor does this paragraph waive any provision of law affording the employer immunity from any suit in whole or part, or waive any other substantive or procedural rights the employer may have. (5) This section shall not apply to, nor shall the employer be responsible in any manner to defend or pay for claims arising out of, acts or omissions of the trustees or members of the committee which constitute felonies or gross malfeasance or gross misfeasance in office. 9 Docusign Envelope ID:60B4ABC3-1420-4761-A9C8-032BDOC C94C5 Section 5: Section 2.425 of the Code of Ordinances of the City of Clearwater is hereby amended to read as follows- Sec. 2.425. — Pension fund records. The trustees andthe ensien adyic„FY GGFnM�it« shall keep a record of all of their proceedings which shall be maintained and open to public inspection in accordance with F.S. Chs. 119, and 286. Such records shall reflect a complete and comprehensive account of the discussions and actions taken by the trustees_. pensien adyiseFy nnmmitt®® Coding: Words in strikeout type are deletions from existing text. Words in underline type are additions. Section 6: It is the intention of the City Council, and it is hereby ordained that the provisions of this Ordinance shall become and be made a part of the Code of Ordinances of the City of Clearwater, that the sections of the Ordinance may be renumbered or relettered to accomplish such intentions; and that the word "Ordinance" shall be changed to "Section" or other appropriate word. Section 7: If any clause, section, or other part or application of this Ordinance shall be held in any court of competent jurisdiction to be unconstitutional or invalid, such unconstitutional or invalid part or application shall be considered as eliminated and shall not affect the validity of the remaining portions or applications which shall remain in full force and effect. Section 8: All ordinances or parts of ordinances, resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. Section 9: This Ordinance shall become effective immediately upon adoption, unless otherwise provided. PASSED ON FIRST READING December 4, 2025 PASSED ON SECOND AND FINAL January 15, 2026 READING AND ADOPTED Signed by: Bruce Rector Mayor 10 Docusign Envelope ID:60B4ABC3-1420-4761-A9C8-032BDOC C94C5 DS Approved as to form: Attest: DocuSigned by: QocuSigned by: PAV4 �9�e wain lR. �ae•ea��aFsaa€tt.�. a• �e� David Margolis Rosemarie Call City Attorney City Clerk 11