HomeMy WebLinkAboutO-1981-268 it
ORDINANCE NO. 268
AN ORDINANCE OF THE CI?Y OF DANIA, FLORIDA, ENACTING INTO
LAW AN AMENDED RETIREMEiiY PLAN AND TRUST FOR GENERAL EMPLOYEES;
PROVIDING FOR THE FUNDING AND FINANCING OF THE FUND; PROVIDING
FOR THE ESTABLISHMENT OF A BOARD OF TRUSTEES; REPEALING ALL
ORDINANCES OR PARTS OF ORDINANCES AND ALL RESOLUTIONS OR PARTS
OF RESOLUTIONS IN CONFLICT HEREWITH; AND PROVIDING FOR AN
a EFFECTIVE DATE.
1 WHEREAS, the City of Dania presently has a Retirement Plan and Trust Fund
for its General Employees, originally adopted in 1969, and
WHEREAS, the City Commission is desirous of restating and amending the
ed, substituting therefore a complete and
present Plan and Trust, as amend
Amended Retirement Plan and Trust to be known as the City of Dania Retirement
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i Plan and Trust for its General Employees, and
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WHEREAS, the City Commission is desirous of adopting the Amended Retire-
ment Plan and Trust as herein set forth.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
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1 DANIA, FLORIDA:
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SECTION 1. That the following Amended Retirement Plan and Trust be and the
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same is hereby approved and adopted.
SECTION 2. DEFINITIONS - As used herein, unless otherwise defined or required
by the context, the following words and phrases shall have the meaning
indicated:
{ A. City - means City of Dania, Florida.
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B. City Commission - means the City Commission of the City of Dania, Florida.
C. Ordinance - means this written instrument setting forth the provisions of
the Amended Retirement Plan and Trust.
D. Plan - means the City of Dania Amended Retirement Plan as contained
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herein and all amendments thereto.
E. Trust - means the Trust established as part of the Plan.
F. Board - means the Board of Trustees , which shall administer and manage
the Plan herein provided and serve as Trustee of the Fund.
j G. Employee - means any person other than a Police Officer or Firefinhter
classified as a full time employee by the City whose customary employ-
an 20 hours in a week and more than six months
ment by the City is more th
jin a calendar year.
H. Member - means an Employee who fulfills the prescribed participation
i requirements.
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I. Credited Service. - means uninterrupted service (expressed as years and
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completed months), from the date a Member last entered employment, until
the date his employment shall be terminated by death, disability, retire
? ment, resignation, or discharge, subject, however, to Section 3, Para-
graph D of this Ordinance; provided, however, the Credited Service of any
Member shall not be deemed to be interrupted by reason of:
I. Paid vacation
l 2. Any authorized leave of absence
3. Time spent in military service for the United States provided he re-
enters the service of the City within the statutory period during
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j which his reemployment is guaranteed or within 60 days following
release or discharge, if later.
No Member shall be entitled to Credited Service during or by reason
of absence due to authorized leaves of absence of military service;
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j however, a Member shall retain Credited Service accrued prior to any
i such absence. All Members similarly situated in similar circum-
stances shall be treated alike pursuant to uniform non-discriminatory
rules and policies established by the Board of Trustees.
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J. Earnings - means a Member's basic rate of pay from the City, exclusive of
all overtime pay, bonuses and any other extraordinary compensation.
K. Average Monthly Earnings - means 1/12th of the arithmetic average of
jannual earnings during the last year of employment plus two additional
j years as selected by the Member out of the last ten years preceding his
actual retirement or termination date; provided that if a Member shall
have been employed for fewer than three years, such average shall be
taken only over the period of his actual employment.
L. Beneficiary - means the person or persons entitled to receive benefits
hereunder at the death of a Member who has or have been designated in
JJ writing by the Member and filed with the Board. If no such designation
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is in effect at the time of death of the Member, or if no person so desig-
nated is living at that time, or if no designated alternate or contingent
beneficiary is living at such time, the Beneficiary shall be the Member's
estate.
M. Prior Plan - means the Pension Plan for General Employees of the City of
Dania, initially established July 1, 1969, and in effect up to the
Effective Date of this Amended Retirement Plan as set forth in this
Ordinance.
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N. Spouse - shall mean the lawful wife or husband of a Member.
0. Amended Plan Effective Date - means June 23 1981.
P. Plan Year - means the twelve month period commencing on January 1st of
each year.
Q. Accumulated Contributions - means the total of a Member's contributions
made to the Trust as herein provided, plus interest if any, granted by
the Board from time to time.
SECTION 3. MEMBERSHIP
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i A. Conditions of Eligibility
1. All Employees already covered under the City's Prior Plan on the
Amended Plan Effective Date shall automatically continue participa-
tion under the Amended Plan and Trust without any further action being
required, except for completing the Application for Membership
described in Paragraph B below.
2. All Employees not covered by the Prior Plan on the Amended Plan
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Effective Date shall be eligible for membership as of the Amended
Plan Effective Date upon meeting the requirements set forth in
Paragraph B below.
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3. All Employees hired after the Amended Plan Effective Date shall be
eligible for membership as of their respective dates of full time
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-- employment upon meeting the requirements set forth in Paragraph B
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below.
4. In no event may any Employee whose date of employment is later than
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his 55th birthday become a Member of the Plan.
5. Membership in the Plan shall be mandatory as a condition of employ-
ment with the City; provided, however, that any person who is an
Employee on the Amended Plan Effective Date but who is not already
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a Member of the Prior Plan may elect not to enter the Plan in which
1 case he shall be forever barred from future membership in the Plan.
! The election by such Employee must be made within 90 days after the
Amended Plan Effective Date.
B. Application for Membership - Each Employee eligible for membership shall
complete an application within 40 days after his date of employment or, j
if later, after the date he first becomes eligible, the form of which
shall cover the following points, as well as such other points or items
as may be prescribed by the Board:
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1. Acceptance of the terms and conditions of the Plan and Trust, and
2. Designation of a Beneficiary or Beneficiaries, and
3. Agreement to make Employee contributions during period of Membership,
and
4. Provision of acceptable evidence of his date of birth.
C. Change in Designation of Beneficiary - A Member may from time to time
change his designated Beneficiary by a written notice upon forms provided
j by the Board, signed by the Member and witnessed. Upon such change, the
rights of all previously designated Beneficiaries to receive any benefit
under the Plan shall cease. All such forms shall be filed promptly with
the Board.
D. Regarding Prior Credited Service
1. For Members of the Prior Plan as of the Amended Plan Effective Date
{ who have made contributions since first eligible for Prior Plan
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coverage, no repurchase or buy back of past service is or will be
required; Credited Service as regards such Employees shall be granted
from date of employment.
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2. For Members of the Prior Plan as of the Amended Plan Effective Date
who have not made contributions since first eligible for Prior Plan
coverage, service credit will be allowed only for those years during
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which such employees made contributions. Provided, however, such
employees and any other employees who did not make contributions
during any prior year when eligible to do so shall be allowed the
right or option of repurchasing or buying back those years for which
no contributions were made. The amount which must be paid by any
such employee for this purpose shall be equal to the amount which he
would have contributed had he been covered by the Prior Plan since
he was first eligible plus interest on such amount at a rate or rates
determined by the Board. Any such "buy backs" shall cause Credited
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Service to be granted from the employee' s date of employment. Such
"buy back" arrangements and conditions shall be as prescribed by the
Board, acting on a uniform and non-discriminatory basis. The buy
back election by such employees must be made within 90 days after the
Amended Plan Effective Date. I
3. In no event will buy back of service be required for any year or J
period prior to July 1, 1969.
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SECTION 4. RETIREMENT DATES AND BENEFITS
A. Normal Retirement Date
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1. A Member may retire on the first day of the month coincident with or
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next following that date on which such Member attains age 60 and
completes ten years of Credited Service; provided, however, any
Member of the Prior Plan on the Amended Plan Effective Date who is
age 58 or older on such date may retire at age 60 or older regardless
of his length of Credited Service.
2. In no event shall a Member retire on a date later than age 70 unless
the Board extends such Member's retirement date by written authori-
zation, on a year-to-year basis.
B. Normal Retirement Benefit
1. For Those Who Were Not Members of the Prior Plan
(a) Amount - The monthly retirement benefit shall be an amount
determined as follows:
2% of Average Monthly Earnings
" times
Credited Service
(b) Normal Form of Benefit - A Member retiring hereunder on his
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Normal Retirement Date shall receive a monthly benefit which
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shall commence on his Normal Retirement Date and be continued
thereafter during his lifetime but for ten years certain in any
event. In the event of the death of the retiree prior to the
completion of ten years, the monthly payments due for the
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remainder of such ten year period shall be paid to such retiree's
i designated beneficiary.
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j 2. For Those Who Were Members of the Prior Plan
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(a) Amount - For purposes of the Plan, those who were Members of the
Prior Plan shall be entitled to the greater of the following
benefits:
The benefit determined as set forth in Paragraph B-1 (a) of
this Section 4, which reads as follows :
2% of Average Monthly Earnings
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times
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Credited Service f
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or in lieu thereof, if greater, the benefit determined for I
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the entire period of Credited Service (subject to Section 2,
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Paragraph D) , per the Prior Plan benefit formula, as follows:
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20% of the first $400 of Average Monthly Earnings plus 47%
of the excess of such earnings over $400, with the total
reduced proportionately if Credited Service is less than
15 years; in addition 1% of Average Monthly Earnings for
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each year of Credited Service in excess of 15 years.
(b) Normal Form of Benefit - The benefit shall be payable on the same
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basis and in the same manner as set forth in Paragraph B-1 (b) of
this Section 4.
C. Early Retirement Date - A Member may retire on the first day of the month
coincident with or next following the attainment of age 50 and the com-
pletion of ten years of Credited Service, or on the first day of any
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month thereafter.
-.. ; D. Early Retirement Benefit - A Member retiring hereunder on his Early Retire-
ment Date may receive either a deferred or an immediate monthly retirement
benefit as follows:
3 1. A deferred monthly retirement benefit which shall commence on his
Normal Retirement Date and shall be continued on the first day of
3 each month thereafter during his lifetime. The amount of benefit
shall be determined and paid in the same manner as for retirement at
his Normal Retirement Date except that Average Monthly Earnings and
Credited Service shall be determined as of his Early Retirement Date,
or,
2. An immediate monthly retirement benefit which shall commence on his
Early Retirement Date and shall be continued on the first day of
each month thereafter during his lifetime. The benefit payable
shall be as determined for Normal Retirement, but reduced by 0.51,
for each month by which the starting date of the benefit precedes
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the Normal Retirement Date, unless the benefit payable is deter-
mined per the Prior Plan benefit formula in which event the benefit
shall be reduced by 0.61/ for each of the first 60 months and by 0.3%
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for each of the next 60 months by which the benefit commencement
date precedes the Normal Retirement Date.
3. If an Early Retirement Benefit is computed according to the Prior
Plan formula, first the computation is made as though it were a
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Normal Retirement Benefit, then the result is multiplied by a frac-
tion the numerator of which is Credited Service at the Early Retire-
ment Date and the denominator of which is the Credited Service
which would have been completed at the Normal Retirement Date.
E. Delayed Retirement Date - The Delayed Retirement Date shall be that date
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j following Normal Retirement Date on which a Member actually retires . In
no event shall a Member retire later than age 70, unless the Board extends
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such Member's retirement date by written authorization on a year-to-year
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basis.
F. Delayed Retirement Benefit - A Member retiring hereunder at his Delayed
Retirement Date shall receive a monthly retirement benefit which shall
{ commence on the first day of the month coincident with or next following
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{ such Delayed Retirement Date. The amount of each such monthly retire-
ment benefit shall be determined in the same manner as for Normal Retire-
ment except that Average Monthly Earnings and Credited Service shall be
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determined as of the Member's actual retirement date. The benefit shall
be paid on the same basis and in the same manner as is set forth in
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Paragraph B-1 (b) of this Section 4.
j G. Applicable Benefit Formula - The benefit formula applicable in all cases
of retirement, whether Normal , Early or Delayed, shall be that in effect
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j on the Member's employment termination date, subject to provisions in
Section 4-B-2 (a) regarding the greater benefit payable as between the
regular Plan benefit formula and the Prior Plan benefit formula.
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SECTION 5. DEATH BENEFITS
A. Death Prior to Retirement - In the event of death prior to actual retire-
ment under this Plan, there shall be a death benefit payable as respects
a Member or former Member who is eligible for an Early, Normal or Delayed
Retirement benefit, but who dies before commencement of benefit payments.
It shall be assumed that such deceased Member had retired immediately
preceding his date of death, and a benefit shall be paid on a joint and
survivor annuity basis as provided in Section 9-Option 1, the percentage
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basis to be as determined by the Board. In the event of the death of a
Member who is not eligible for a retirement benefit, his Accumulated
Contributions shall be payable to his designated Beneficiary.
B. Death After Retirement - No benefit shall be paid upon the death of a
Retiree except such benefits as result by reason of the normal form of
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benefit (Ten Years Certain & Life Annuity) or the use of a pre-retirement
selection of an Option providing a survivor benefit pursuant to Section
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9 herein.
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SECTION 6. TERMINATION BENEFITS
A. Subject to the provisions in Paragraph B below as respects Members with
five Years Credited Service under the Prior Plan, all rights to benefits
under this Plan shall cease upon a Member's termination of employment,
other than by reason of Early, Normal , or Delayed Retirement (at which
time Members are 100% vested) ; however, all Members shall acquire a
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j vested right to their accrued benefits pursuant to the following Vesting
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Schedule:
j VESTING SCHEDULE
Completed Years of Credited Cumulative Vested Non-Forfeitable
Service with the City Interest in the Accrued Benefit
j Less than 10
0%
10 or more 100%
{ Provided, any Member not eligible for an Early, Normal or Delayed Retire-
ment Benefit but who has a vested interest at time of termination shall
receive such benefit commencing at his regular Normal Retirement Date;
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j provided however, a Member may elect to receive his deferred benefit
upon attaining age 50, or any date thereafter, the benefit in such case
"4F to be actuarially reduced as for Early Retirement. Provided further,
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in lieu of all other benefits under this Amended Plan, a terminated
Member whether or not vested, may elect to receive in a lump sum
immediately on termination of employment payment of an amount equal to
his Accumulated Contributions.
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i B. Any Member with five Years Credited Service under the Prior Plan may,
upon termination of employment, be entitled to the same rights as those
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of a vested Member as provided in Paragraph A above.
SECTION 7. DISABILITY BENEFITS
II I A. Eligibility Period - The eligibility requirements for Service Incurred
and Non-Service Incurred Disability Benefits for all Members shall be as
follows:
Non-Service Incurred - Eligible from entry date as a Member of the Plan.
Service Incurred - Eligible from entry date as a Member of the Plan.
B. Definition of Disability - An illness, injury, disease or disability
which:
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(I) Permanently incapacitates a Member physically or mentally from his
regular and continuous duty as an Employee for a period of six
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3 months or more, and
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(2) Qualifies the Member for Social Security disability benefits.
C. Non-Service Incurred Disability Benefit and Duration - Any Member other-
wise eligible as stated above who becomes entitled to a Non-Service
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i Incurred Disability shall receive from the Fund a monthly Disability
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benefit equal to his Accrued Benefit, determined as of the last day he
was actively at work for the City. Disability payments shall commence
on the first day of the seventh month following the date such Member
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became Totally and Permanently Disabled and shall continue until the
earlier of death, recovery from such disability or attainment of Normal
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Retirement Age. If the benefit ceases by reason of a Member attaining
jNormal Retirement Age, such Member shall be entitled to commence receiv-
ing the pension which would have been payable on his regular Normal
Retirement Date, but based on Credited Service and Earnings as of date
of disability.
D. Service Incurred Disability Benefit and Duration - Any Member otherwise
j eligible as stated above who receives a Service Incurred Disability
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(i .e. , disability as a result of an act occurring in the performance of
service to the City) , shall receive from the Fund in equal monthly in-
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stallments a monthly Disability benefit equal in amount to the difference
between 66 2/3% of his current base monthly salary as of the date he
became disabled and the sum of Social Security Primary Insurance Amount
(not including family benefits) and Workers' Compensation benefits
received by reason of such disability. As and when changes are made
with respect to cost of living adjustments in the amounts received by
the Member from Social Security or Workers ' Compensation, no adjustment
shall be made in the payments from the Retirement Fund.
Disability payments shall commence on the first day of the seventh month
following the date such Member became Totally and Permanently Disabled
and shall continue until the earlier of death or recover from such
disability.
E. Determination of Disability - No disability benefit shall be granted
except upon approval of and certification solely by the Board of Trustees.
Such approval of and certification shall include but not be limited to
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determination that such disability was Service or Non-Service Incurred
and that such Member has undergone medical examination by one or more
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I Medical Doctors designated by the Board of Trustees and that such disa-
bility has been substantiated by the Medical Doctor(s) to be total and
jpermanent. Any refusal by a Member to undergo such examination shall
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j result in denial of disability benefits.
F. Required Re-Examination of Disability Retirees - Any Service or Non-
Service Incurred Disability Retiree may be required to undergo a medical
re-examination periodically by the Board of Trustees in order to confirm
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the continued existence of the disability condition. Any refusal by a
Member to undergo such examination or re-examination shall result in a
termination of disability payments until such disability condition is
again medically substantiated to the satisfaction of the Board of
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Trustees.
G. Additional Provisions re Disability Retirees
Exclusions - Disability benefits shall not be payable in cases where the
disability arose as a result of the Member own willful intent or self-
inflicted injury, intoxication, or use of narcotics or other items con-
sidered to be dangerous drugs , or commission of a criminal act.
Recovery - In the event of recovery from disability as determined by the
Board, and re-employment by the City within 60 days of such recovery
date, the period of time while disabled shall be included as Credited
Service. In the event of recovery, but without such re-employment by
the City the Member's future benefits , if any, shall be determined as
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though he initially terminated employment on his date of disability.
SECTION 8. CONTRIBUTIONS
A. Member Contributions
1. Amount - Members of the Retirement Plan shall make regular contribu-
tions at a rate of 4 ', of Earnings. Member contributions shall be
deposited in the Fund on at least a monthly basis.
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2. Interest - Interest shall be credited annually to Member Contribu-
tions at a rate or rates to be determined by the Board from time to
time.
3. Guaranteed Refund - All benefits payable under this Plan are in lieu
of a refund of Accumulated Contributions. In any event, however,
each Member shall be guaranteed the payment of benefits on his behalf
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at least equal in total amount to his Accumulated Contributions plus
interest credited.
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4. Cessation of Member Contributions - Member contributions shall cease
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upon retirement, termination of employment or during periods of
absence from work due to disability.
B. City Contributions - So long as this Plan is in effect, the City shall
make annual contributions to the Trust Fund in an amount at least equal
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to the difference in each year as between the total of aggregate Member
contributions for the year and the total cost for the year as shown by
the most recent actuarial valuation and report for the Plan. The total
cost for any year shall be defined as the total of Normal Cost plus the
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additional amount sufficient to amortize the Unfunded Accrued Past
j Service Liability by the year 2000. City contributions shall be deposited
in the Fund on at least a quarterly basis. Should benefits in the Plan
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}� be increased at some future date by way of an amendment to this Ordinance,
the period of time over which the increase in the Unfunded Accrued Lia-
bility attributable to the amendment is to be amortized shall be governed
by laws of the State of Florida.
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SECTION 9. OPTIONAL FORMS OF BENEFIT PAYMENTS
Each Member entitled to a Normal , Early or Delayed Retirement Benefit shall
have the right at any time prior to the date on which benefit payments begin
a to elect to have the benefit payable under any one of the Options as herein-
Safter set forth in lieu of the benefits otherwise provided herein, and to
a revoke any such elections and make a new election at any time prior to the
a actual beginning of payments. The value of optional benefits shall be
actuarially equivalent to the value of benefits otherwise payable, and the
present value of payments to the retiring Member must be a least equal to
50% of the total present value of payments to the retiring Member and his
j Beneficiary. The Member shall make such an election by written request to
the Board, such request being retained in the Board's files.
OPTION 1 - Joint and Last Survivor Option
The Member may elect to receive a reduced benefit during his lifetime and
have such benefit (or a designated fraction thereof) continued after his
death to and during the lifetime of his designated Beneficiary. The elec-
tion of Option 1 shall be null and void if the designated Beneficiary dies J
before the Member's benefit payments commence.
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OPTION 2 - Straight Life Annuity Basis
The Member may elect to receive his benefit on a straight life annuity basis,
with benefit payments ceasing upon the Member's death.
OPTION 3 - Other
In lieu of the other optional forms enumerated in this Section, benefits may
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be paid in any form approved by the Board so long as actuarial equivalence
with the benefits otherwise payable is maintained. An interest only option
or an option providing guaranteed payments over a period in excess of 20
years or beyond age 85 may not be elected. The Board, in its sole discretion,
may make a lump sum distribution of any monthly payment with a present value
not exceeding $3,000.
SECTION 10. FINANCES AND FUND MANAGEMENT
A. Establishment and Operation of Trust Fund
1. As part of the Plan there is hereby established a Trust Fund, into
which shall be deposited all of the contributions and assets what-
soever attributable to the Plan, except for such assets as may be
deposited for investment with an insurance company, money manager,
or other entity duly charged with the safekeeping and investment of
Fund assets.
2. The supervision of the Fund (and assets thereof) and the responsi-
bility for custodianship shall be vested in the Board. Payment of
benefits and disbursements from the Fund shall be made by the dis-
bursing agent on authorization from the Board.
3. The Board may hire and appoint such persons, agents or entities
(including corporate fiduciaries) as in its discretion may be
required or advisable to the performance of custodial and investment
duties hereunder. The Board may enter into agency, investment
advisory and custodial agreements as it deems appropriate.
4. All funds and securities of the Plan may be commingled in the Fund,
provided that accurate records are maintained at all times reflecting
the financial composition of the Fund, including accurate accounts
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and entries as regards the following:
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(a) Receipts and disbursements , and
(b) Benefit payments, and
(c) All monies, funds and assets whatsoever attributable to contri-
butions and deposits from the City, and
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(d) All interest, dividends and gains (or losses) whatsoever, and
(e) Such other entries as may be properly required so as to reflect
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{ a clear and complete financial report of the Fund.
i 5. For the purpose of funding benefits provided for herein, the Board
may enter into a Group Annuity Contract of the Deposit Administration
type, Separate Investment Account Contract or other similar arrange-
ment with a legal reserve life insurance company licensed to do
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business in the State of Florida. In such event the Board may make
or cause to be made periodic payments to the insurance company. The
investment of assets may be undertaken wholly or partially through
j an insurance company, or wholly or partially through the Trust Fund,
or a combination arrangement. Further, the Board may establish
j arrangements with an insurance carrier handling Fund investments for
{ the payment of benefits directly by the insurance carrier to retirees
and beneficiaries entitled to benefits. The Board expressly reserves
3a the right to change the method of funding at any time at its own
election and without the consent of any person or organization of
any kind.
6. It shall be impossible, at any time prior to the satisfaction of all
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liabilities with respect to covered Employees and their Beneficiaries
' under the Trust, for any part of the principal or income of the Trust
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to be used for, or diverted to, purposes other than for the exclu-
I sive benefit of the Employees or their Beneficiaries, except for
usual and customary charges and expenses associated with the opera-
tion and management of the Plan and Fund.
SECTION 11. BOARD OF TRUSTEES -- PLAN ADMINISTRATION
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1. The Board of Trustees shall serve as Trustee of the Trust created as part
of the Plan. The Board shall be vested with full legal title to the
Trust and assets thereof.
ii 2. The Board of Trustees shall be the Plan Administrator and as such shall
1 be charged with the general administration and responsibility for the
proper operation of the Retirement Plan and Trust and for making effec-
tive the provisions of this Ordinance. The Board of Trustees shall con-
sist of five persons as follows:
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(a) One member of the Commission as selected by the Commission, and .
(b) Two regularly employed Employees of the City, upon the election by €
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a majority of the regularly employed Employees of the City, and
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(c) Two residents of the City, to be selected by the City Commission.
' The Commissioner shall serve on the Board at the will of the
Commission. Upon termination of his term as Commissioner or upon
resignation or removal of the Commissioner from the Board, the
i Commission shall select another Commissioner to serve on the Board,
The two Employees serving as trustees for the Prior Plan
immediately preceding the Amended Plan Effective Date shall serve
as the initial Employee members of the Board. Each of these two
members shall serve for a period of two years from the Amended Plan
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Effective Date. At the end of this two year period, an election
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shall be held by the Employees who are Members at that time in order
to elect two successor Employee members to the Board. The Employee
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i receiving the greatest number of votes shall serve for a period of
three years and the Employee receiving the second greatest number
of votes shall serve for a period of two years. There-after each
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elected Employee member of the Board shall serve for a period of
three years. Upon the termination of employment of an Employee Y a
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member or upon the resignation or removal of such member from the
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a Board, an election shall be held by the Employees who are Members
�1 at that time in order to elect another Employee to complete the
remainder of the unexpired term.
The two resident members serving as trustees for the Prior Plan
immediately preceding the Amended Plan Effective Date shall serve
as the initial resident members of the Board. Each of these two
members shall serve for a period of one year from the Amended Plan
Effective Date. At the end of this one year period, the Commission
shall appoint two successor resident members to the Board. One
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such resident shall serve for a period of two years and the other
1 resident shall serve for a period of one year, as determined by the
Commission. Thereafter, each appointed resident member of the
Board shall serve for a period of two years. Upon the relocation
of a resident member out of the City or upon the resignation or
removal of such member from the Board, the Commission shall appoint
another resident to complete the remainder of the unexpired term. II 1
The Employee and resident members may succeed themselves in J
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office. The Board shall elect one of its members to be the chair-
man and another to be the secretary of the Board, the term of office
being two years for each position. The secretary shall keep a
i complete minute book of the proceedings of the Board. The Trustees
shall not receive any compensation as such but may be reimbursed
for reasonable expenses which they may incur in their positions as
trustees.
3. A member may be removed from the Board if he is absent from two consecu-
tive Board meetings without good reason, as determined by at least three
other members of the Board. Upon such removal , the unexpired term of
office shall be filled as described in the preceding Paragraph 2 of this
Section 11.
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4. Each Trustee shall be entitled to one vote on matters and items of busi-
ness presented to the Board. Three affirmative votes shall be necessary
1 for a decision by the Trustees at any meeting of the Board. The Chair-
man shall have the right to one vote only. Three members shall consti-
tute a quorum.
5. Subject to the limitations of this Ordinance, the Board of Trustees shall
from time to time establish uniform, non-discriminatory rules and regu-
lations for the administration of funds created by this Ordinance and
for transaction of its business.
6. The Board of Trustees shall engage such actuarial and other services as
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shall be required for purposes of the Plan and Trust. The compensation
of all persons engaged by the Board of Trustees and all other expenses
of the Board necessary for the operation of the Retirement Plan and
Trust shall be paid from the Fund at such rates and in such amounts as
the Board of Trustees shall agree. Funds may be disbursed by the City
Finance Department or other disbursing agent as determined by the Board,
but only upon written authorization by the Board of Trustees.
7. The duties and responsibilities of the Board of Trustees shall include,
but not necessarily be limited to, the following:
(a) To construe the provisions of the Plan and Trust and determine all
questions arising thereunder.
(b) To determine or have determined and certified the amount of all
retirement allowances or other benefits hereunder.
(c) To receive and process all applications for participation and J
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benefits and, where necessary, conduct hearings thereon.
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(d) To authorize all payments whatsoever from the Fund, and to notify
i the disbursing agent, in writing, or approve benefit payments an
other expenditures arising through operation of the Plan.
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(e) To make recommendations to the City Commission regarding changes
in the provisions of the Plan and Trust.
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(f) To review reports of and have meetings with the custodian and
I investment agent(s) or advisor; to require written reports from the
custodian on Fund assets and transactions on a semi-annual or more
frequent basis if deemed advisable by the Board; to require
written and oral reports from the investment agent or advisor on at
i
least a semi-annual basis, such reports to reflect Trust Fund
j investment performance, investment recommendations and overall
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review of Fund investment policies.
(g) To determine or have determined that the Retirement Plan complies
at all times with the provisions of Florida law both substantively
and in operation, and including the following:
j (1) Have prepared annually and distributed to all Members a plan
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description and a summary of pertinent updated financial and
i actuarial information.
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-- (2) Assure that City contributions are deposited into the Trust
j Fund at least quarterly and that Member contributions are
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deposited at least monthly.
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(3) Assure that all regular and special actuarial reports are filed
1
with the Florida Division of Retirement within 60 days of
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receipt.
(4) Have actuarial valuations performed on a regular basis. Have
special actuarial work performed in advance so as to determine
costs of any Plan changes or amendments prior to their adoption.
(5) Establish a uniform procedure for prompt review and re-hearing
of all claims by Members or Beneficiaries.
(h) To maintain a minute book containing the minutes and records of the
proceedings and meetings of the Board.
SECTION 12. BOARD OF TRUSTEES -- INVESTMENT AUTHORITY E
The Board of Trustees shall have the following investment powers and authority:
1. The Board of Trustees shall be vested with full legal title to said Fund,
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subject, however, and in any event to the authority and power of the City
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Commission to amend or terminate this Trust, provided that no Amendment
or Trust Fund termination shall ever result in a diversion of Fund assets
except for the benefit of Members and Beneficiaries, nor the use of any
Fund assets except for the payment of regular expenses and benefits under
the Plan.
2. All contributions from time to time paid into the Trust Fund, and the
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income thereof, without distinction between principal and income, shall
be held and administered by the Board or its Agent in the Fund and the
Board shall not be required to segregate or invest separately any portion
of the Fund.
3. The Fund may be invested and reinvested in such securities or property,
real or personal , however situated and of whatever kind, as shall be
approved by the Board of Trustees , including bot not limited to stocks,
common or preferred, and bonds, and other evidences of indebtedness or
,.� ownership although the same may not be of a character not permitted for
trustee's investment by the laws of the State of Florida.
4. The Board of Trustees may retain in cash and keep unproductive of income
such amount of the Fund as it may deem advisable, having regard for the
cash requirements of the Plan.
5. No person or entity shall be liable for the making, retention, or sale
of any investment or reinvestment made as herein provided, nor for any
loss or diminishment of the Fund, except that due to his or its own
negligence, willful misconduct or lack of good faith.
6. The Board may cause any investment in securities held by it 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 Trust Fund.
7. The Board is empowered, but is not required, to vote upon any stocks,
bonds, or securities of any corporation, association, or trust and to
' give general or specific proxies or powers of attorney with or without
power of substitution; to participate in mergers, reorganizations, recap-
italizations, consolidations and similar transactions with respect to
such securities ; to deposit such stock or other securities in any voting
trust of any protective or like committee or with the Trustees or with
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depositories designated thereby; to amortize or fail to amortize any part
or all of the premium or discount resulting from the acquisition or dis-
position of assets; and generally, to exercise any of the powers of an
owner with respect to stocks, bonds, or other investments, comprising
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the Fund which it may deem to be the best interest of the Fund to exer-
cise.
8. The Board shall not be required to make any inventory or appraisal or
report to any court, nor to secure any order of court for the exercise
of any power herein contained.
s
9. Where any action which the Board is required to take or any duty or func-
tion which it is required to perform either under the terms herein or
under the general law applicable to it as Trustee under this Ordinance,
can reasonably be taken or performed only after receipt by it from a
Member, the City or any other entity of specific information, certifica-
tion, direction or instructions, the Board shall be free of liability in
failing to take such action or perform such duty or function until such
information, certification, direction or instruction has been received
by it.
10. Any overpayments or underpayments from the Fund to a Member or Benefi-
ciary caused by errors of computation shall be adjusted with interest at
a rate per annum approved by the Board. Overpayments shall be charged
against payments next succeeding the correction. Underpayments shall be
made up from the Trust Fund.
i
11. The Board shall sustain no liability whatsoever for the sufficiency of
the Fund to meet the payments and benefits herein provided for.
12. In any application to or proceeding or action in the courts, only the
City and the Board shall be necessary parties, and no Member or other
person having an interest in the Fund shall be entitled to any notice or
service of process. Any judgment entered in such a proceeding or action
shall be conclusive upon all persons.
13. Any of the foregoing powers and functions reposed in the Board may be
performed or carried out by the Board through duly authorized Agents,
provided that the Board at all times requires of and reviews reports of
any such Agent; provided further, that legal title to said Fund shall
always remain in the Board of Trustees.
14. As set forth in Section 10-5, the Board may estalbish arrangements with
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an insurance carrier, by separate Investment Contract or other similar
arrangement, for the purpose of authorizing and delegating to the insur-
ance company the investment of all or a portion of Fund assets.
SECTION 13. FIDUCIARIES AND FIDUCIARY RESPONSIBILITY
i 1. Fiduciary - A- "fiduciary" shall be any person or entity who exercises any
i
discretionary authority or control regarding regular, ongoing management
or administration of the Plan or Plan assets, and any person or entity
who renders or who has authority or responsibility to render investment
advice.
2. Fiduciaries -- Standards of Responsibility - All fiduciaries shall dis-
charge their duties with respect to the Plan solely in the interest of
Members and Beneficiaries, and more particularly as follows:
(a) For the exclusive purpose of providing benefits to Members and their
' Beneficiaries, and defraying reasonable Plan administrative expenses;
and
(b) With the care, skill , prudence, and diligence under the circumstances
then prevailing that a prudent man acting in a like capacity and
familiar with such matters would use in the conduct of an enterprise
of a like character and with like aims; and
(c) By performing their duties in accordance with the documents and
instruments setting forth and governing the Amended Plan and Trust.
SECTION 14. REPEAL OR TERMINATION OF SYSTEM
1. This Ordinance setting forth the provisions of the Amended Plan and Trust
and subsequent Ordinances pertaining thereto, if any, may be modified,
terminated, or amended, in whole or in part solely by the City Commission,
i
provided that if this 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 a Member or Beneficiary shall not be
affected thereby, except to the extent that the assets of the Fund may
i
be determined to be inadequate.
{ 2. If this Ordinance shall be repealed, or if contributions to the Plan and
Trust are discontinued, the Board shall continue to administer the
i
1 Amended Plan and Trust in accordance with the provisions of this Ordi-
nance, for the sole benefit of the then Members, any Beneficiaries then (
receiving retirement allowances, and any future persons entitled to
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receive benefits under one of the Options provided for in this Ordinance
who are designated by any of said Members. In the event of repeal or
termination, or if contributions to the Plan are discontinued, there
shall be full vesting (100%) of benefits accrued to date of repeal and
the assets of the Plan and Trust shall be allocated in an equitable
j manner to provide benefits on a proportionate basis to the persons so
entitled to benefits in accordance with the provisions hereof, with
i
prior preference being directed towards the return of Accumulated
Contributions.
3. The following shall be the order of priority for purposes of allocating
the assets of the Trust upon repeal or termination of this Ordinance if
contributions to the Plan and Trust are discontinued.
(a) Accumulated Contributions of the Members, if any, less any benefits
received. If any funds remain, then
(b) Members already retired under the Normal , Delay and Early Retire-
ment provisions of the Plan and those eligible for Normal , Delayed
and Early Retirement but not actually retired, and their Benefi-
ciaries, in proportion to and to the extent of the then actuarially
determined present value of the benefits payable less amounts
received according to (a) above. If any funds remain, then
(c) All other Members and their Beneficiaries in the same manner as in
(b) but based upon Credited Service and Average Monthly Earnings
as of the date of termination of the Plan, and with any benefits
vested given precedence.
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
i
entitled to said benefits or the distributions may be carried out in
j such other equitable manner as the Board may direct. The Trust may be
jcontinued in existence for purposes of making subsequent distributions
i
j and invested and reinvested until full distribution of all assets has
been made.
J If, at any time during the first ten years after the Effective Date of
the Amended Plan, the Plan shall be terminated or the full current costs
of the Plan (consisting of the normal costs and interest on any accrued
. -20-
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liability) shall not have been met, anything in the Plan to the contrary
notwithstanding, City contributions which may be used for the benefit of
any one of the 25 highest paid Members in the Plan on the Effective Date,
whose anticipated annual retirement allowance provided by the City's
contribution at his Normal Retirement Date would exceed $1,500, shall
not exceed the greater of either (a) $20,000 or (b) an amount computed
by multiplying the smaller of $10,000 or twenty percentum of such
Employee's average annual earnings during his last five years of service
by the number of years of service since the Effective Date. In the event
that it shall hereafter be determined by statute, court decision, ruling
by the Internal Revenue Service, or otherwise, that the provisions of
this paragraph are not then necessary to qualify the Plan under the
Internal Revenue Code, this paragraph shall be ineffective without the
necessity of further amendment of this Ordinance.
After all the vested and accrued benefits provided hereunder have been
�i
paid and after all other liabilities have been satisfied, then and only
then shall any remaining funds revert to the general fund of the City.
SECTION 15. MISCELLANEOUS
1. Discharged Members - Members entitled to a pension shall not forfeit the
same upon dismissal from employment, but shall be retired as herein
described.
2. Non-Assignability - No benefit provided for herein shall be assignable
or subject to garnishment for debt or for other legal process.
3. Pension Validity - The Board of Trustees shall have the power to examine
into the facts upon which any pension shall hereafter be granted or
obtained erroneously, fraudulently, or illegally for any reason. Said
Board is empowered to purge the pension rolls of any person heretofore
granted a pension under prior or existing law or hereafter granted under
this Ordinance if the same is found to be erroneous, fraudulent or ille-
gal for any reason; and to reclassify any pensioner who has heretofore
under prior or existing law or City Retirement Plan or who shall here-
after under this Ordinance be erroneously, improperly or illegally
classified.
' 4. Incompetents - If any Member or Beneficiary is a minor or is, in the I
judgment of the Board, otherwise incapable of personally receiving and
giving a valid receipt for any payment due him under the Plan, the Board
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j
may, unless and until claims shall have been made by a duly appointed
i
guardian or committee of such person, make such payment or any part there-
of to such person's Spouse, children or other person deemed by the Board
to have incurred expenses or assumed responsibility for the expenses of
such person. Any payment so made shall be a complete discharge of any
liability under the Plan for such payment.
j 5. Claims Procedure for Participants and Beneficiaries Upon Denial of Claim
(a) Any Member or Beneficiary whose application or claim for benefits
has been denied shall receive from the Board a written notice set-
ting forth the specific reasons for such denial , the reasons there-
in to be clearly and fully explained so as to afford such Member or
Beneficiary a clear understanding of the decision rendered.
(b) Any Member or Beneficiary whose application or claim for benefits
has been denied shall have the right to a re-hearing and a fair and
full review by the Board regarding the facts, circumstances and
information pertaining to the claim and the reasons for denial of
such claim.
5. Re-Employment -- Cessation of Benefit Payments - If a pensioner is re-
employed by the City, his retirement benefit payments shall cease with
the last payment due prior to his re-employment. Retirement benefit
payments shall again become payable on the first day of the month
following subsequent terminations of employment.
7. Guaranteed Return of Benefits From Prior Plan to Those Eligible Thereafter
All benefits payable under this Amended Plan and Trust are in lieu of
any rights or benefits under the Prior Plan for General Employees. In
any event, however, each Member entitled to any benefits under the Prior
Plan shall be guaranteed the payment of benefits on his behalf at least
equal in value to the value of benefits arising or existing by reason
of participation in the Prior Plan for Employees.
Specific authority is hereby granted to codify and incorporate this
Ordinance in the existing Code of Ordinances of the City of Dania. All
Ordinances or parts of Ordinances and all resolutions or parts of reso-
lutions in conflict herewith be and the same are hereby repealed to the
i
extent of such conflict. This Ordinance shall take effect immediately
upon final passage by the City Commission and shall be published as
required by law, but shall apply as of
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That should any section or provision of this Ordinance or any portion
;111 thereof, any paragraph, sentence or word be declared by a court of
i
i competent jurisdiction to be invalid, such decision shall not affect
the validity of the remainder hereof as a whole or part thereof other
i
than the part to be declared invalid.
PASSED and ADOPTED on First Reading on the 9-th day of June
1981.
PASSED and ADOPTED on Second and Final Reading on" fob day of
June 198E L
Z I
MAYOR-COMMISSIONER
I
ATTEST:
x4 GZZJ:�' --z.
CITY CLERK-A DITORc
APPROVED FOR FORM AND CORRECTIVENESS
By
Frank er, City ttorney
1
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A
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NOTICE OF N Ashr 5 N • '
BEFORE UTY..F O.D..
4 ( CITY OF OANIA.FLORIDA.
REGARDING THE ADOPTION
OF APROVOSED ORDINANCE-?
,I/• NOTICE IS NEREBY GIVEN
HOLLYWOOD SUN-TATTLER I3. t /emmµ„p of lne•
Gb or Dania. Fbrlea. 06 June^�
P1, oil.VI I'IS D.m, a of See^ �
InerreNer°S Ile menel maY BA"•
111,1, is City
coy a NEIIC heA"i
NO In Init C. Cemmnrb^ 0 "Ll•
of Ine Danl` Gh NNI, 100 wan"
Established as The Hollywood Sun January 4, 1935 Doll` Bear^ Sys. Dohi FIOn• '
1do. to Ciii ipu the OroOOSCI S,
Woolen on serOrW re0dM0 N an v
prdNncr enelNd: 'it
HOLLYWOOD, BROWARD COUNTY, FLORIDA AN ORIONANCE OF THE CAM(
OF DANIA. FLORIDA. ENACT•:I
ING INTO LAW AN AMENDED[( I
RETIREMENT PLAN AND N:
TRUST FOR GENERAL Ehh!
PLOYEES: PROVIDING FOR
THE FUNDING AND FINANC-
ING OF THE FUND: PROVID•'.
ING FOR. THE ESTA M'. j
STATE OF FLORIDA LISHMENL OF A BOARD OP-
TRUSTEES: REPEALING ALL'-
COUNTY OF BROWARD ORDINANCES OR PARTS OPy''
OPDINANCES AND ALL RESOD"
LUTIONS OR PARTS OF RE5 >�'
Before the undersigned authority personally appeared. D Bob ll -i LOng . • • • • • • LUnons IN CONFLICT EROW
/. n r-���o Ail E AND PROVIDING GOIW:'
Ad�6xt�S�og• rlYoCtOr , ANEFFECTVEOATE, w.:
who on oath says he is 4 S P� A m0v 1 Imq vmOnw l In*-
lance is W hie in Inr 00'¢e d In>-,
of the HOLLYWOOD SUN-TATTLER, a daily newspaper published at Hollywood Gry Derr.City H.R. ImW.Dm.."..
is Beach Bird. Danro. Ft.. Fly,
Tor be InfoMtO OY IT, WWIO^.
in Broward County, Florida; that the attached copy of advertisement, being pp„nRnmmN.auronw,A -.,.,
Im Pevee Dpluef m0Y O ..o.
Notice Of, Hearing • . . . . . . . . . . . . . . . . . . . . . . N ue 0roro0a m r bR nM aen.l
here .dn rnoe[1 ro Inr Prr?
a WSW.
. . . . . An, MnT .M e�roed tR 005-.
in the matter of . .City •o£ •Dania• • • • • • • • • • • • . . . • ' City enr «l. sr InAc
Glv Commiuwn N Inr 6W ORn.I
in the . . .Dania. City. Hall . . . . . . . ., ## ##t Dania. Fl . 11 .Per, ohs,
moot,rey"I'm 01 InH mertm0„
Ile aroceshshim OM I., Su[R:
was published in said newspaper in the issues of . JLUl@. 15 0. .1981. . . . . . . . . pp, pip,his,need 10 this".HIM.
A velpohm,,Fwd d IN.t(aee°Tv
• ingt is mode. eh.rn record iT
. . . . . . . . . . . . . . . . . . ,load the InemMr old eame^ca,'
. . Ueon whits the &PHIN is 1R M.
Afftant further says that the said HOLLYWOOD SUN-TATTLER is a newspaper published at WI1t wane,Mwuun
Hollywood in said Broward Count Florida,and that the said newspaper has heretofore been conhnu- C.I,C,...
Dusty ppublished in said Broward County,Florida,each week and has been entered as second class mat- I S.T JVne 15.ION(E.SI)
ter at fhe post office in Hollywood in sand County,E•lor, a,for a pperiod of one year next preceding the
first pubticatwn of the attached copy of advertisement and affiant fart er says that he has neither tir
paid nor promised any person,firm or corporation any�dTSt pot rebate, ommisswn or refund for the
purpose of securing this advertisement for publics/tii th ai(/newsy er.
Sworn to and subscribed fore me
Fla
.- this ,.'day of ...)......
�A.D 19
" •"'�-'J'•• •-1•I•NOTARY PUBLIC
(SEALJ
NOTARY PUBLIC STATE OF FLORIDA AT LARGE
MY C0%i MISSION EXPIRES MAR 31 1985
DOND'D FHR:GS�t?�I- INS. UNDERWRITERS
"Jltltiyttes 6enter of 111c outE1'r
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