ORDINANCE 10-06 – Approved

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[ Code of Ordinances ]
ORDINANCE 10-06 – Approved

ORDINANCE NO. 10-06 – Approved

AN ORDINANCE OF THE TOWN OF INDIALANTIC, BREVARD COUNTY, FLORIDA, AMENDING CHAPTER 2 RELATING TO PENSION PLAN FOR POLICE OFFICERS AND FIREFIGHTERS;  PROVIDING A SEVERABILITY/ INTERPRETATION CLAUSE; PROVIDING FOR THE REPEAL OF CERTAIN INCONSISTENT ORDINANCES AND RESOLUTIONS; AND PROVIDING FOR AN EFFECTIVE DATE.

WHEREAS, modifications are required by the enactment of federal and state law; and

WHEREAS,  Council desires to maintain the pension program consistent with legal requirements; and

WHEREAS, changes have been requested by the Police/Fire Pension Board of Trustees,

NOW, THEREFORE, BE IT ENACTED by the Town Council of the Town of Indialantic, Brevard County, Florida, that;

SECTION 1. That Sec. 2-226 of the Code of Ordinances of Indialantic, Florida is hereby amended to read:

Sec. 2-226.  Definitions.

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Credited service means the total number of years and completed months of continuous service with the town as an employee. Credited service shall not be deemed to be interrupted by and mem­bers shall receive benefit credit for periods during which the member is on an authorized leave of absence. Members shall not receive credit for service for which accumulated contributions have been refunded, provided, however, members who have received a refund may receive up to 5 years of such benefit credit if they redeposit to the Fund an amount representing up to 5 years of refunded accumulated contributions, along with interest at the rate of 8.0% per annum from the date of the refund to the date of redeposit. The time spent in the military service shall be governed according to Section 175.032(5), Florida Statutes, for firefighters, and Section 185.02(5) and (6), Florida Statutes, for police officers.  Effective January 1, 2007, members who die or become disabled while serving on active duty military service which intervenes the member’s employment shall be entitled to the rights of this section even though such member was not re-employed by the Town.  Members who die or become disabled while on active duty military service shall be treated as though re-employed the day before the Member became disabled or dies, was credited with the service they would have been entitled to under this section, and then either died a non-duty death while employed or became disabled from a non-duty disability.

Earnings means total cash remuneration paid to a police officer or firefighter for employment services rendered to the town.  Beginning with earnings after December 31, 2008, and pursuant to Internal Revenue Code Section 414(u)(7), the definition of earnings includes amounts paid by the Town as differential wages to members who are absent from employment while in qualified military service.

SECTION 2. That Sec. 2-227 of the Code of Ordinances of Indialantic, Florida is hereby amended to read:

Sec. 2‑227. Membership.

(c) Change in designation of beneficiary.

(1)             A member may from time to time change his or her designated beneficiary by written notice to the board upon forms provided by the board. Upon such change the rights of all previously designated beneficiaries to receive any benefits under the system shall cease.

(2)             If a retired member has elected an option with a joint pensioner or beneficiary and his or her retirement income benefits have commenced, he or she may thereafter change the designated joint pensioner or beneficiary up to twice in accordance with Florida Statutes 175.333 and 185.341 without the approval of the board of trustee or the current joint annuitant or beneficiary.  The retired member is not required to provide proof of the good health of the joint annuitant or beneficiary being removed, and the joint annuitant or beneficiary being removed need not be living. Any retired member who desires to change his or her joint annuitant or beneficiary shall file with the board of trustees a notarized notice of such change.  Upon receipt of a completed change of joint annuitant form or such other notice, the board of trustees shall adjust the retired member’s monthly benefit by the application of actuarial tables and calculations developed to ensure that the benefit paid is the actuarial equivalent of the present value of the retried member’s current benefit and there is no impact to the Plan.  No retired member’s current benefit shall be increased as a result of the change of beneficiary.  The retired member shall be responsible for the cost of the recalculation of the benefit by the actuary.

SECTION 3. That Sec. 2-228 of the Code of Ordinances of Indialantic, Florida is hereby amended to read:

Sec. 2‑228. Benefit amounts and eligibility.

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(2)        Exclusions. A member will be considered totally disabled if, in the opinion of the board, he or she is wholly prevented from rendering useful and efficient service as an employee, and a member will be considered permanently disabled if, in the opinion of the board of trustees, such member is likely to remain so disabled continuously and permanently from a cause other than is specified below:

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c.   Injury or disease sustained by the member while serving in any armed forces. This exclusion does not affect members who have become disabled as a result of intervening military service under the federal Heroes Earnings Assistance and Relief Tax Act of 2008 (H.R. 6081; P.L. 110-245);

SECTION 4. That Sec. 2-229 of the Code of Ordinances of Indialantic, Florida is hereby amended to read:

Sec. 2‑229. Optional forms of benefits.

(a) Each member entitled to an early, normal or delayed retirement benefit or a disability benefit shall have the right at any time prior to the date on which benefit payments begin to elect to have his or her benefit payable under any of the options hereinafter set forth in lieu of the benefits provided herein, and to revoke any such elections and make a new election at any time prior to the actual commencement of payments. The value of payable optional benefits shall be actuarially equivalent to the value of benefits otherwise payable, and present value of payments to the retiring member must be at least equal to fifty percent (50%) of the total present value of payments to the retiring member and his or her beneficiary. The member shall make such an election by written request to the board, such request being retained in the board’s files.

(b)   If a retired member has elected an option with a joint pensioner or beneficiary and his or her retirement income benefits have commenced, he or she may thereafter change the designated joint pensioner or beneficiary up to twice in accordance with Florida Statutes §175.333 and §185.341 without the approval of the board of trustees or the current joint annuitant or beneficiary. The retired member is not required to provide proof of the good health of the joint annuitant or beneficiary being removed, and the joint annuitant or beneficiary being removed need not be living. Any retired member who desires to change his or her joint annuitant or beneficiary shall file with the board of trustees a notarized notice of such change. Upon receipt of a completed change of joint annuitant form or such other notice, the board of trustees shall adjust the retired member’s monthly benefit by the application of actuarial tables and calculations developed to ensure that the benefit paid is the actuarial equivalent of the present value of the member’s current benefit and there is no impact to the Plan. No retired member’s current benefit shall be increased as a result of the change of beneficiary. The retired member shall be responsible for the cost of the recalculation of the benefit by the actuary.

SECTION 5. That Sec. 2-232 of the Code of Ordinances of Indialantic, Florida is hereby amended to read:

Sec. 2‑232. Finances and fund management.

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(e)       The board of trustees shall have the following investment powers and authority;

(2)   The fund may be invested and reinvested in such securities or property, real or personal, wherever situated and of whatever kind, as shall be approved by the board of trustees, including but not limited to stocks, common or preferred, and bonds, and other evidences of indebtedness or ownership. The board of trustees is authorized to transfer from time to time to a common, collective, or pooled trust fund maintained by any bank which meets the requirements of Chapter 280, Florida Statutes, all of such part of the trust fund hereunder as the board of trustees may deem advisable, and such part or all of the trust fund so transferred shall be subject to all of the terms and provisions of such common, collective, or pooled trust fund which contemplates the commingling for investment  purposes of such  trust assets with  assets of other trusts.   The Board of Trustees may invest up to 10 percent of the plan assets in foreign securities as regulated by Sections 175.071(1)(b)(4)b. and 185.06(1)(b)4b., Florida Statutes. The board of trustees is also authorized to withdraw from such common, collective, or pooled trust fund, from time to time, all or such part of the trust fund as the board of trustees may deem advisable;

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(g)            Notwithstanding anything else in this subsection and as provided in Florida Statutes §215.473, the board of trustees must identify and publicly report any direct or indirect holdings it may have in any scrutinized company; as defined in that section. Beginning January 1, 2010, the Board must proceed to sell, redeem, divest, or withdraw all publicly traded securities it may have directly in that company. The divestiture of any such security must be completed by September 10, 2010. The board and its named officers or investment advisors may not be deemed to have breached their fiduciary duty in any action taken to dispose of any such security, and the board shall have satisfactorily discharged the fiduciary duties of loyalty, prudence, and sole and exclusive benefit to the participants of the pension fund and their beneficiaries if the actions it takes are consistent with the duties imposed by Florida Statutes §215.473, as provided for in Florida Statutes 175.071(8) and 185.06(7) and the manner of the disposition, if any, is reasonable as to the means chosen. For purposes of determining which companies are scrutinized companies, the Board may utilize the list of scrutinized companies as developed by the Florida State Board of Administration. No person may bring any civil, criminal, or administrative action against the board of trustees or any employee, officer, director, or advisor of such pension fund based upon the divestiture of any security pursuant to this subsection.

SECTION 6. That Sec. of the Code of Ordinances of Indialantic, Florida is hereby amended to read:

Sec. 2‑233. Repeal or termination of system.

(a)    This division establishing the system and fund, and subsequent ordinances pertaining to said system and fund, may be modified, terminated or amended in whole or in part; provided that if this [division] or any subsequent ordinance shall be amended or repealed in its application to any person benefiting hereunder, the amount of benefits which at the time of any such alteration, amendment or repeal shall have accrued to the member or beneficiary shall not be affected thereby, except to the extent that the assets of the fund may be determined to be inadequate.

(b)   If this division shall be repealed, or if contributions to the system are discontinued, the board shall continue to administer the system in accordance with the provisions of this division, for the sole benefit of the then members, any beneficiaries then receiving retirement allowances, and any future person entitled to receive benefits under one of the options provided for in this division who are designated by any of said members. In the event of repeal, or if contributions to the system are discontinued, there shall be full vesting (one hundred (100) percent) of benefits accrued to date of repeal and the assets of the system shall be allocated in an equitable manner to provide benefits on a proportionate basis to the persons so entitled to benefits in accordance with the provisions thereof.

(c)    The following shall be the order of priority for purposes of allocating the assets of the system upon repeal of this division or if contributions to the system are discontinued:

(1)      Members already retired under the early, normal or delayed retirement or disability provisions of the system and those eligible for such retirement or disability provisions of the system and those eligible for such retirement, active or deceased, but not actually retired, and their beneficiaries, in proportion to and to the extent of the then actuarially determined present value of the benefits payable less amounts received. If any funds remain, then

(2)      Members who are fully vested under the provisions of this system, and their beneficiaries, in the same manner as in subsection (1) above. If any funds remain, then

(3)  Other members with accumulated contributions in the same manner as in subsection (1) above. If any funds remain, then

(4)  To all other members and their beneficiaries in the same manner as subsection (1) but based upon credited service and average monthly earnings as of the date of termination of the system.

The allocation of the fund provided for in this subsection may, as decided by the board be carried out through the purchase of insurance company contracts to provide the benefits determined in accordance with this subsection. The fund may be distributed in one sum to the persons entitled to said benefits or the distribution may be carried out in such other equitable manner as the board may direct. The trust may be continued in existence for purposes of subsequent distributions.

(d)   After all the vested accrued benefits provided hereunder have been paid and after all otherliabilities have been satisfied, including a return to the State of Florida of funds required under Chapters 185 and 175, Florida Statutes, then and only then shall any remaining funds revert to the general fund of the town.

(a)    Upon termination of the plan by the Town for any reason, or because of a transfer, merger, or consolidation of governmental units, services, or functions as provided in chapter 121, or upon written notice to the board of trustees by the Town that contributions under the plan are being permanently discontinued, the rights of all employees to benefits accrued to the date of such termination or discontinuance and the amounts credited to the employees’ accounts are nonforfeitable. The fund shall be distributed in accordance with the following procedures:

(1)        The board of trustees shall determine the date of distribution and the asset value required to fund all the nonforfeitable benefits, after taking into account the expenses of such distribution. The board shall inform the Town if additional assets are required, in which event the Town shall continue to financially support the plan until all nonforfeitable benefits have been funded.

(2)        The board of trustees shall determine the method of distribution of the asset value, whether distribution shall be by payment in cash, by the maintenance of another or substituted trust fund, by the purchase of insured annuities, or otherwise, for each police officer and firefighter entitled to benefits under the plan, as specified in subsection (3).

(3)        The board of trustees shall distribute the asset value as of the date of termination in the manner set forth in this subsection, on the basis that the amount required to provide any given retirement income is the actuarially computed single-sum value of such retirement income, except that if the method of distribution determined under subsection (2) involves the purchase of an insured annuity, the amount required to provide the given retirement income is the single premium payable for such annuity. The actuarial single-sum value may not be less than the employee’s accumulated contributions to the plan, with interest if provided by the plan, less the value of any plan benefits previously paid to the employee.

(4)        If there is asset value remaining after the full distribution specified in subsection (3), and after payment of any expenses incurred with such distribution, such excess shall be returned to the Town, less return to the state of the state’s contributions, provided that, if the excess is less than the total contributions made by the Town and the state to date of termination of the plan, such excess shall be divided proportionately to the total contributions made by the Town and the state.

(5)        The board of trustees shall distribute, in accordance with the manner of distribution determined under subsection (2), the amounts determined under subsection (3).

SECTION 7. That Sec. of the Code of Ordinances of Indialantic, Florida is hereby amended to read:

Sec. 2‑234. Miscellaneous.

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(c)       Nonassignability. No benefit provided for herein shall be assignable or subject to garnishment for debt or for other legal process.  However, the Board shall honor an income deduction order for alimony or child support in accordance with rules and procedures adopted by the Board.

SECTION 8. Severability/Interpretation Clause

(a) In the event that any term, provision, clause, sentence or section of this Ordinance shall be held by a court of competent jurisdiction to be partially or wholly unenforceable or invalid for any reason whatsoever, any such invalidity, illegality, or unenforceability shall not affect any of the other or remaining terms, provisions, clauses, sentences, or sections of this Ordinance, and this Ordinance shall be read and/or applied as if the invalid, illegal, or unenforceable term, provision, clause, sentence, or section did not exist.

(b) In interpreting the provisions of this Ordinance, the following rules and

symbols shall apply:

(1) Words underlined are additions to existing text.

(2) Words stricken through are deletions from existing text.

(3) Asterisks (* * *) indicate a deletion from the Ordinance of text existing in the Code of Ordinances. It is intended that the text in the Code of Ordinances denoted by the asterisks and not set forth in this Ordinance shall remain unchanged from the language existing prior to adoption of this Ordinance.

SECTION 9. Ordinances and Resolutions in Conflict. All ordinances or resolutions or parts thereof that may be determined to be in conflict herewith are hereby repealed.

SECTION 10. Effective Date. This Ordinance shall become effective immediately upon adoption.

PASSED by the Town Council of the Town of Indialantic on first reading the ____ day of ___________, 2010, and ADOPTED by the Town Council of the Town of Indialantic, Florida on final reading on the _______ day of ______________, 2010.

TOWN OF INDIALANTIC

________________________

David Berkman

Mayor

ATTEST:             ____________________________

Laura Eaton, CMC

Town Clerk