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HomeMy WebLinkAboutO-1969-541 a I s j ORDINANCE NO. J� y { i AN ORDINANCE ESTABLISHING AND ADOPTING AN ACTUARIALLY SOUND RETIREMENT AND PENSION PLAN FOR ALL EMPLOYEES OF THE CITY OF DANIA, FLORIDA, AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING THAT THIS ORDINANCE SHALL BE IN FORCE I AND TAKE EFFECT IMMEDIATELY UPON ITS FINAL PASSAGE AND ADOPTION. r I WHEREAS, under the provisions of Chapter 25768, 1949 � I Special Acts of Florida, the City of Dania, Florida, has power j and authority to provide for life and/or disability insurance J for all of its employees and/or agents and/or officers on a ..,. group insurance plan approved by the City Commission and to pay e { i I I such portions of the premium or premiums thereon as said City I Commission may determine; and to establish and create by ordi- nance a pension, annuity and retirement system for any and all I j groups of officers or employees employed by said City ; and i WHEREAS, the City Commission feels that an actuarially i I sound retirement and pension plan or system combined with death i benefits should be established adopted and p put into effect, in � addition to social security benefits and any other benefits. k a 9 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION g OF THE CITY OF DANIA, FLORIDA: J� f Section 1. - That the City Commission does determine that the City of Dania should establish and adopt an actuarially sound retirement and pension plan or system available to all employees, officers, and agents of the City of Dania. t Section 2 . - That there is herein enacted a "City of - 1 - a t Dania Employees ' Pension Plan", reading and being as follows : CITY OF DANIA EMPLOYEES ' PENSION PLAN ARTICLE I . i i � Purpose Paragraph 1. 11. 1 The purpose of this plan is to establish the terms and conditions under which re- tirement, death and other benefits will be provided to employees of the City of Dania, Florida. In order to provide the I funds with which these benefits may be paid and purchased, the City is entering into a trust agreement under which a trust fund will be established. ARTICLE II . i Administration Paragraph 2 .1 The Mayor shall recommend and the City Commission shall appoint a pension com- mittee of five persons for the purpose of administering this plan. Such members will be the trustees . The members of the committee shall hold office at the pleasure of the City Commission. Paragraph 2 .22 .2 Other than the duties, powers and respon- sibilities imposed on the trustee under the trust agreement, the pension committee shall have complete control of the admini- stration of the plan subject to the terms and conditions of the trust agreement and this plan. It may adopt such rules with the approval of the City Commission as it may deem necessary for the proper admini- stration of the plan and shall have final j responsibility in all other matters in- volving the interpretation and implemen- tation of the plan. Paragraph 2 .32 ,3 The members of the pension committee shall ` be free from all liability for any action I taken or omitted in carrying out their iduties of administering the plan, except ; that resulting from their own willful j misconduct. j ARTICLE III. i Definitions i - 2 - t r , , t j . I I i I Paragraph 3.1 "Employer" or "City" shall mean the City of Dania, Florida. I Paragraph 3 .2 "Plan" shall mean the City of Dania Employ- ees ' Pension Plan as set forth in this instrument and the trust agreement. lParagraph 3 .3 "Effective Date" of the revised Plan shall mean July 1, 1969. jParagraph 3 .4 "Anniversary Date" shall mean July 1, 1970, and each July ist thereafter. j Paragraph 3.5 "Plan Year" means the period of one year commencing on any July 1st and ending !1 immediately prior to the next July 1st. Paragraph 3 .63 .6 "Employee" shall mean any person regularly employed by the City whose customary employ- ment is more than twenty (20) hours in a week and more than six (6) months in a calendar 1 year, excluding policemen and firemen. 1 Paragraph 3.73.7 "Participant" shall mean any employee of the Employer who has met all of the require- ments for participation in this Plan as hereinafter defined and who has made appli- cation to become a participant of the Plan as hereinafter provided. i Paragraph 3 .83 .8 "Pension" shall mean the monthly amount of lifetime retirement annuity to which a „ participant shall be entitled upon attain- ing his normal retirement date as provided herein. f I ! Paragraph 3 .93 .9 "Insurance Company" shall mean any insur- ance company licensed in the State of Florida. I i Paragraph 3 .103 .10 "Group Life Contract" shall mean a group j life contract applied for by the Employer E covering all participants in the Plan and ` issued by the insurance company. Paragraph 3.113.11 "Trustee" shall mean the individuals appointed by the Mayor and approved by the I City Commission. Paragraph 3.12 "Trust Agreement" shall mean the agreement f between the Employer and the Trustee re- C ferred to in Paragraph 1.1 above. I Paragraph 3.13 "Continuous Service" shall mean uninter- rupted service with the Employer from the I date of last employment of a Participant, (f I3 � C I �dd i whether or not commenced before the Effec- tive Date, to the date to which the period of Continuous Service is being computed in accordance with uniform rules established by the Pension Committee, except in the case of any present employee whose total service prior to the effective date shall be con- sidered continuous service. Paragraph 3 .14 "Monthly Salary" shall mean the amount paid or payable monthly as regular salary to a participant not including bonuses, overtime pay, or other extra compensation, provided that if a participant is paid on a weekly salary basis, his monthly earnings shall be l4-1/3 times his basic weekly salary and if a participant is paid on the basis of an hourly wage rate, his monthly earnings shall be 173- 1/3 times his basic hourly rate. Paragraph 3 .15 "Accumulated Contributions" as of any date shall mean the total of a participant' s con- tributions made to the trust in accordance with Paragraph 13.1 as of such date. !f Paragraph 3 .16 "Accumulated Contributions With Interest" as of any date shall mean the total of a participant ' s contributions made to the Trust in accordance with Paragraph 13.1 plus accumulated interest at 3-3/4% per annum compounded annually for the number of completed months from the ends of the respective plan years in which the respec- tive contributions were made up to such date. � ARTICLE IV. Eligibility for Participation i Paragraph 4. 1 Each present employee will become a Parti- cipant in this Plan as of the effective date, provided such employee has met the following requirements at such time: i (i) He has completed one full year of Continuous Service and is at least age 25 provided age at employment was under 51. j (ii) He files with the Pension Com- mittee within thirty (30) days of receipt the written appli- cation provided by the Committee . f Such application shall provide that the participant agrees to abide by f - 4 1 rr r hY kZ 1+ u 4 { I the provisions of the Plan and to make contributions as re- i quired by Paragraph 13 . 1. Paragraph 4.2 All other present employees and employees whose Continuous Service commences after the effective date shall become partici- pants in the Plan on the anniversary date coinciding with or next following com- pletion of the foregoing requirements. j Paragraph 4.3 The application for participation by any present employee shall be voluntary. Each employee entering service after the effec- tive date, shall as a condition of employ- ment, become a participant on the date when first eligible. No participant may with- draw from the Plan so long as he remains in the employ of the City. f Paragraph 4.4 Any present employee who, when first eli- gible, does not become a participant, may elect to become a participant as of any I subsequent anniversary date prior to his 51st birthday. All benefits for such a participant shall be reduced by multiplying such benefit by a fraction the numerator of which is the number of full years re- maining until his normal retirement date had he become a participant when first eligible. I ARTICLE V. I Normal Retirement Date Paragraph 5 .1 The normal retirement date of each employee shall be the first day of the month follow- ing his 65th birthday. j i ARTICLE VI . Early Retirement i Paragraph 6 .1 With the approval of the Pension Committee, a Participant who has completed ten (10) if 3 years Continuous Service with the Employer may retire at any time within the ten-year i period immediately preceding his normal I retirement date. The amount of retirement annuity due at early retirement date shall be equal to such participant' s earned I pension (as defined in Paragraph 8.3) as of such early retirement date reduced by 5% for each full year by which such date - 5 - t i i I precedes such participant's normal retire- ment date. Fractional years shall be calculated to the nearest month. ARTICLE VII. Later Retirement Paragraph 7.1 With the approval of the Pension Committee, a Participant may retire at a date later than his normal retirement date. Payment of such participant ' s retirement annuity will be deferred until his actual retirement date jand will be the same amount as would have been paid at his normal retirement date. I ARTICLE VIII. i Amount of Pension Paragraph 8.1 The amount of pension payable to a partici- pant who retires on or after his normal retirement date shall be an amount equal to 20% of the first $400.00 of monthly earnings plus 50% in excess of $400.00 of monthly earnings, provided the participant has at least 15 years of service, otherwise his benefit will be reduced proportionately, plus 1% of his average monthly earnings for each year in excess of 15 years . The average monthly earnings shall be the aver- age of the monthly salary he received during the five (5) calendar years immediately pre- ceding retirement. i ARTICLE IX. Normal Form of Pensions f Paragraph 9.1 Payment of pensions in the normal form shall commence on the participant' s actual retire- ment date, if he is then living, and shall be payable monthly thereafter during his lifetime terminating with the last payment preceding the death of such Participant provided, however, that if the death of the Participant shall occur after the first such monthly payment and before one hundred twenty (120) guaranteed payments have been made, the commuted value of the remaining guaranteed I payments as determined under the group annuity s contract will be paid to the beneficiary authorized to receive such lump sum payment. Paragraph 9.2 A participant may elect in lieu of the normal - 6 - ail 3 �3 4 f s F7 form of pension any optional form of pension payments available under the terms of the Plan. ARTICLE X. jDeath Benefits Paragraph 10.1 As of the date an employee becomes a parti- cipant under this plan, life insurance shall be provided on his life under the terms of the group term life insurance contract. ARTICLE XI. I Disability Benefits i Paragraph 11. 1 A participant in the Plan will become eli- gible for a disability benefit upon a finding � j by the Pension Committee that he has become j permanently and totally disabled. Such ` benefit shall be equal to such participant' s earned pension as of the date disability commenced. i Paragraph 11.2 Payment of such benefit shall be in such form and shall commence at such times as is desig- nated by the Pension Committee acting in the best interest of such participant. i ARTICLE XII . i Termination of. Employment Paragraph 12 .1 A participant whose employment with the Employer is terminated prior to his normal retirement date and who has less than ten years of service at date of termination of employment shall receive a lump sum payment equal to the total of his Accumulated Con- tributions with interest. i Paragraph 12 .2 A participant whose employment with the Employer is terminated prior to his normal j retirement and who has more than ten years of service at date of termination of employ- f ment may elect to receive either the lump sum payment described under Paragraph 12 . 1 i above, or his normal annuity form, the first t monthly payment becoming due on his normal retirement date. The amount of such retire- C ment annuity shall be a percentage of his earned pension as of date of termination of employment as determined by the following schedule: - 7 - : 1 �,-0''�X$TabG9e:wnau'Y:.W s i �.,. .r . ...... _ . •aat� ytiy d y r Percentage of Earned Years of Service Pension Vested 10 50/ ears o Y 11 years 55% 12 years 60% 13 years 65% f 14 years 70% i 15 years 75% i S I 16 years 80% 17 years 85% j18 years 90% 11 t 19 years 95% f 20 years 100% I ARTICLE XIII , Cost of the Plan Paragraph 13 . 1 Each participant shall contribute each month during which he is a participant in the Plan 2% of the first $400.00 of monthly earnings I plus 5% in excess of $400.00 of monthly j earnings . Such contribution shall be de- I ducted from the participant 's pay and trans- j mitted to the Trustee by the City. Paragraph 13 .2 The City will contribute to the trust the remaining amount necessary to provide the benefits to which the participants are entitled under the Plan. ARTICLE XIV. Assignment of Benefits I i Paragraph 14.1 No assignment of any rights or benefits arising under the Plan will be permitted or recognized, nor shall any such rights or benefits be subject to attachment or other legal or equitable processes. 1 i III - 8 - t ` Y L r t I ARTICLE XV. Amendments and Termination Paragraph 15 .1 Although the City intends to continue this Plan indefinitely, it reserves the right at any time to amend or terminate the Plan in the manner and subject to the restric- tions provided in the trust agreement. Paragraph 15 .2 In the event of final termination of the Plan, the Pension Committee shall instruct I the Trustee to: I (a) Allocate the assets of the trust after I � making provision for expenses as pro- vided in the trust agreement, to the extent sufficient to purchase retire- ment annuities under the terms of the group contract for participants in the following order of precedence. In all cases, the amount of retirement annuity so purchased for any participant shall be limited to such participant 's earned pension as of date of termination of the Plan. (i) To purchase retirement annuities for all participants who have reached their normal retirement dates but without reference to the order in which they shall have reached their normal re- tirement dates . j i (ii) To purchase retirement annuities commencing at normal retirment date for all participants age 55 or over who have cgmpleted ten (10) years Continuous Service but without reference to the order in which they shall reach their normal retirement dates. j (iii) To purchase retirement annuities commencing at normal retirement date for all other participants j not included under (i) and (ii) above but without reference to the order in which they shall reach their normal retirement dates . i i (b) If the remaining assets of the Trust are not sufficient to purchase the - 9 - i . •• ••«q!iYYi4^M'ir.\A'f C+.Y#.Fiu'i::.i.v..Hx...., VVAnv'F` r. 5 I t I I 77 i I retirement annuities to which all participants of a class are entitled, such assets shall be applied in a manner so as to provide all partici- pants of such class retirement annui- ties equal to an amount which, when iadded to the retirement annuities made available under (a) above, will form a uniform percentage of such participant 's earned pension as of date of termination of the Plan. III Section 3 . - That the City Commission deems it advis- able to enter into a written contract with an insurance company to supply such pensions and death and disability benefits, in 1 I ! accordance with the provisions of the Plan established and 1 adopted by this ordinance. I i Section 4. - That all ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed to the extent of such conflict. Section 5 . - That this ordinance shall be in force and I take effect immediately upon its final passage and adoption. PASSED AND ADOPTED on First Reading on the 7 711 day ' I j of a % ej, `/ 1969. f I I PASSED AND ADOPTED on Second Reading on the 0? day of r 1969. 1 t a 1 PASSED AND ADOPTED on Third Reading on the day of 1969. Mayor-Commissioner Attest: City Clerk;Au for _ 10 - �"