HomeMy WebLinkAboutO-2009-010 OPEB Trust ORDINANCE NO. 2009-010
AN ORDINANCE OF THE CITY OF DANIA BEACH, FLORIDA, PROVIDING
FOR THE ESTABLISHMENT OF AN OTHER POST-EMPLOYMENT
BENEFIT TRUST FOR CITY EMPLOYEES; AUTHORIZING THE CITY TO
JOIN AS A PARTY THE FLORIDA MUNICIPAL PENSION TRUST FUND
MASTER TRUST AGREEMENT AND THE PARTICIPATION OF THAT
TRUST IN THE OTHER POST-EMPLOYMENT BENEFIT PLAN TRUST
UNDER THE FLORIDA MUNICIPAL PENSION TRUST FUND; PROVIDING
FOR CONFLICTS; PROVIDING FOR SEVERABILITY; FURTHER,
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Dania Beach, Florida has provided post-
employment benefits to the City's employees (referred to as "Participants"); attached as Exhibit
"A"• and
WHEREAS,the City Commission, under the provisions of the laws of the State of Florida,
is authorized to establish an Other Post-Employment Benefit ("OPEB") Trust to provide for
specified post-employment benefits for Participants; and
WHEREAS, it is the intent of the City Commission to establish such an OPEB Trust for
the exclusive benefit of Participants; and
WHEREAS, it is the further intent of the City Commission to authorize the participation of
the OPEB Trust in the Other Post-Employment Benefit Plan Trust under the Florida Municipal
Pension Trust Fund Master Trust Agreement;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH,FLORIDA:
Section 1. An Other Post-Employment Benefit ("OPEB") Trust to provide for the
above specified post-employment benefits of Participants of the City of Dania Beach, Florida is
established, effective July 28, 2009. The OPEB Trust shall be for the exclusive benefit of
Participants.
Section 2. The City Commission expressly (i) authorizes joining the Florida Municipal
Pension Trust Fund Master Trust Agreement as a party through a Trust Joinder Agreement, (ii)
authorizes the participation of the OPEB Trust in the Other Post-Employment Benefit Plan Trust
under the Florida Municipal Pension Trust Fund Master Trust Agreement, and (iii) authorizes the
administration of the OPEB Trust, and the investment of assets of the OPEB Trust, within the
procedures, policies and methods outlined in the Florida Municipal Pension Trust Fund's Master
Trust Agreement,Investment Policy and Trust Joinder Agreement.
Section 3. The City Commission authorizes the proper City officials to execute such
documents and agreements as are required for joining as a party the Florida Municipal Pension
Trust Fund Master Trust Agreement and for participation in the Other Post-Employment Benefit
Plan Trust under the Florida Municipal Pension Trust Fund Master Trust Agreement.
Section 4. That all ordinances or parts of ordinances and all resolutions or parts of
resolutions in conflict with the provisions of this Ordinance are repealed.
Section 5. That if any section, clause, sentence or phrase of this Ordinance is for any
reason held invalid or unconstitutional by a court of competent jurisdiction the holding shall not
affect the validity of the remaining portions of this Ordinance.
Section 6. That this Ordinance shall take effect immediately at the time of its passage
and adoption.
PASSED on first reading on June 23,2009.
PASSED AND ADOPTED on second reading on July 28, 2009.
CITY OF DANIA BEACH, FLORIDA
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ATTEST:
LOUISE STILSON, CMC
CITY CLERK ' AM
APPROVED AS TOWORM AND CORRECTNESS:
THO SJ RO
CITY ATT RNE
2 ORDINANCE#2009-010
EXHIBIT "A"
Chapter 18 PENSIONS AND RETIREMENT*
*Cross references: Requirements for city employment, § 2-26 et seq.
Art. I. In General, §§ 18-1--18-11
Art. II. Social Security, §§ 18-12--18-28
Art. III. Employees' Retirement Plan and Trust, §§ 18-29--18-39
Art. IV. Policemen and Firemen, §§ 18-40--18-49
ARTICLE I. IN GENERAL
Sec. 18-1. Participation in group insurance--Retirees.
All retired city officials and employees are authorized to enter into such agreements as are
necessary to provide that retired officials, employees or both of the city may participate in the
group medical, hospitalization, and life insurance plan of the city, provided that one-third ( 1/3)
of the cost of any such continued participation in any such group insurance plan shall be paid by
the retired employee. However, retired employees and employee beneficiaries receiving benefits
from any city retirement plan and trust shall be eligible for an annual health insurance subsidy as
provided in subsections 18-29.2(k) and 18-42(10) herein; and provided further, however, that the
city will pay health insurance premiums of federally required "COBRA" (Consolidated Omnibus
Budget Reconciliation Act of 1986) coverage on behalf of surviving member beneficiaries of a
deceased general employee for a maximum of six (6) months after the date of death of the retiree.
Such survivors are eligible for continued group health coverage in accordance with COBRA
legislation. Premiums for such coverage will be made by the city for the first six (6) months
following the death of the covered retiree; thereafter, the cost of COBRA coverage will be the
responsibility of the survivor. Retired city officials and employees not receiving benefits from
any city retirement plan and trust shall be eligible to participate in the city's group insurance plan
at their own expense.
"Vested terminated" or "terminated vested" employees are eligible for continued health care
insurance coverage under cobra, under the same rules as all employees whose City employment
is terminated under any circumstance other than retirement. "Vested terminated" or "terminated
vested" employees become retirees when they begin collecting retirement benefits. At that time,
they are offered the option to rejoin the city health plan as a retiree on the same basis and subject
to the same terms and conditions provided to anyone retiring at that time.
(Ord. No. 130, § 1, 2-22-77; Ord. No. 12-89, § 1, 1-24-89; Ord. No. 2000-040, § 1, 9-26-00; Ord.
No. 2006-007, § 2, 3-28-06; Ord. No. 2006-016, § 1, 5-9-06; Ord. No. 2007-024, § 1, 10-23-07)
Sec. 18-2. City commission members; option to participate in city health insurance program.
Each member of the city commission of the City of Dania Beach is hereby granted the option to
participate in the city's health insurance program, such participation to be subject to the same
terms, provisions and conditions of the program afforded to city employees.
(Ord. No. 8-90, § 1, 2-13-90; Ord. No. 2003-03, § 1, 2-12-03; Ord. No. 2003-027, § 1, 7-8-03)
Editor's note: Ord. No. 8-90 § 1 adopted Feb. 13 1990 did not specifically amend the Code;
� P P Y
hence,inclusion herein as § 18-2 was at the discretion of the editor.
Secs. 18-3--18-11. Reserved.
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EXHIBIT "A"
ARTICLE II. SOCIAL SECURITY
Sec. 18-12. Policy declared.
It is hereby declared to be the policy and purpose of the city to extend, effective as of January 1,
1955, to the employees and officials thereof, not excluded by law, nor excepted herein, and
whether employed in connection with a governmental or proprietary function, the benefits of the
system of old-age and survivor's insurance as authorized by the Federal Social Security Act and
amendments thereto, including Public Law 374 of 81st Congress, and by chapter 650, Florida
Statutes 1951, as amended; and to cover by such plan all services which constitute employment
as defined in section 650.02 of said chapter 650, performed in the employ of said city by
employees thereof.
(Code 1971, § 21-1)
Sec. 18-13. Agreements authorized.
The mayor and city auditor and clerk are hereby authorized and directed to execute all necessary
agreements and amendments thereto with the Florida Industrial Commission, a state agency or its
successor, for the purpose of extending the benefits provided by said system of old-age and
survivor's insurance to the employees and officials of this city as provided in section 18-12,
which agreements shall provide for such methods of administration of the plan by the city are
found by the state agency to be necessary for the proper and efficient administration thereof, and
shall be effective with respect to services in employment covered by such agreement performed
after the first day of January, A.D. 1955.
(Code 1971, § 21-2)
Sec. 18-14. Employees' contributions.
Withholdings from salaries, wages or other compensation of employees and officials for the
purpose provided in section 18-12, are hereby authorized to be made, and shall be made, in the
amounts and at such times as may be required by applicable state or federal laws or regulations,
and shall be paid over to the state agency designated by said laws or regulations to receive such
amounts.
(Code 1971, § 21-3)
Sec. 18-15. Contributions by city.
There shall be appropriated from available funds, derived from the general fund, such amounts,
at such times, as may be required to pay promptly the contributions and assessments required of
the city by applicable state or federal laws or agency at the times and in the manner provided by
law and regulations.
(Code 1971, § 21-4)
Sec. 18-16. Records and reports.
The city shall keep such records and make such reports as may be required by applicable state or
federal laws or regulations, and shall adhere to the regulations of the state agency.
(Code 1971, § 21-5)
Sec. 18-17. Adoption of terms of act.
The city does hereby adopt the terms, conditions, requirements, reservations, benefits, privileges
and other conditions thereunto appertaining, of Title II of the Social Security Act as amended by
Public Law No. 734, 81st Congress, for and on behalf of all the officers and employees thereof
and of its departments and agencies, save and except any of such officers and employees now
covered or authorized to be covered by any retirement system provided by law, and further
4 ORDINANCE#2009-010
EXHIBIT "A"
excepting any official or employee who occupies any position, office or employment not
authorized to be covered by applicable state or federal laws or regulations.
(Code 1971, § 21-6)
Sec. 18-18. Custodian of funds.
The city auditor and clerk is hereby designated the custodian of all sums withheld from the
compensation of officers and employees and of the appropriated funds for the contributions of
the city, and the city auditor and clerk is hereby made the withholding and reporting agent and
charged with the duty of maintaining personnel records for the purposes of this article.
(Code 1971, § 21-7)
Secs. 18-19--18-28. Reserved.
ARTICLE III. EMPLOYEES' RETIREMENT PLAN AND TRUST*
*Editor's note: Ord.No. 268, § 1, enacted June 9, 1981, adopted the amended retirement plan and
trust. Ord. No. 268 did not specifically amend the Code; therefore codification as §§ 18-29--18-
29.13 was at the discretion of the editor. The former employee's pension plan derived from Ord.
No. 541, enacted Aug. 4, 1969, and the following amendatory legislation:
TABLE INSET:
Ord. No. Date
75 8- 4-75
127 2-22-77
128 2-22-77
145 5-24-77
TABLE INSET:
Ord. No. Date
162 12-13-77
204 1-23-79
243 9- 9-80
Sec. 18-29. 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 Beach, Florida.
(b) City commission means the city commission of the City of Dania Beach, 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 Beach amended retirement plan as contained 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.
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EXHIBIT "A"
(g) Employee means any person other than a police officer or firefighter classified as a
regular full-time employee by the city.
(h) Member means an employee or elected public official who fulfills the prescribed
participation requirements.
(i) Credited service means uninterrupted service (expressed as years and completed months)
from the date a member last entered employment or entered office as an elected public official
until the date his employment or term of office shall be terminated by reason of death, disability,
retirement, resignation or discharge, subject, however, to subsection 18-29.1(d) herein; provided,
however, the credited service of any member shall not be deemed to be interrupted by reason of:
(1) Paid vacation.
(2) Any authorized leave of absence.
(3) Time spent in military service for the United States provided he or she reenters the
service of the city within the later of the statutory period during which his or her reemployment is
guaranteed, in accordance with the Uniformed Services Employment and Reemployment Rights
Act (USERRA) or within sixty (60) days following release or discharge.
All members similarly situated in similar circumstances shall be treated alike pursuant to uniform
nondiscriminatory rules and policies established by the board of trustees.
0) Earnings means a member's basic rate of pay from the city, exclusive of all overtime pay,
bonuses, travel or expense allowances and any other extraordinary compensation. Earnings shall
include a member's longevity pay. This provision shall not apply to any member whose
employment termination date precedes April 8, 1986.
(k) Average monthly earnings means one-twelfth ( 1/12) of the arithmetic average of annual
earnings during the last year of employment plus two (2) additional years as selected by the
member out of the last ten (10) years preceding his actual retirement or termination date;
provided that if a member shall have been employed for fewer than three (3) years, such average
shall be taken only over the period of his actual employment.
(1) Beneficiary means the person or persons entitled to receive benefits hereunder at the
death of a member who has or have been designated in writing by the member and filed with the
board. If no such designation is in effect at the time of death of the member, or if no person so
designated 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 Beach,
initially established July 1, 1969, and in effect up to the effective date of this amended retirement
plan as set forth in this article.
(n) Spouse shall mean the lawful wife or husband of a member.
(o) Amended plan effective date means June 23, 1981.
(p) Plan year means the twelve-month period commencing on October 1 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.
(r) Elected public official means any person elected to the office of city commissioner or
mayor of the City of Dania Beach.
(s) Actuarial equivalence or actuarially equivalent means that any benefit payable under the
terms of this plan in a form other than the normal form of benefit shall have the same actuarial
present value on the date payment commences as the normal form of benefit. For purposes of
establishing the actuarial present value of any form of payment, other than a lump sum
6 ORDINANCE#2009-010
EXHIBIT "A"
distribution, all future payment shall be discounted for interest and morality by using seven (7)
percent interest and the 1983 group annuity morality table for males, with ages set ahead five (5)
years in the case of disability retirees. In the case of a lump sum distribution, the actuarial present
value shall be determined on the basis of the same mortality rates as just described and the
Pension Benefit Guaranty Corporation's interest rates for terminating single employer plans
which rates are in effect (a) ninety (90) days prior to the member's date of termination if
distribution is made within six (6) months of such date of termination, or (b) ninety (90) days
prior to the distribution date if distribution is made later than six (6) months after the member's
date of termination.
(t) Retiree means a person who was formerly a city employee and who is eligible to be paid a
retirement benefit from the general employees' retirement plan and trust or the City of Dania
Police and Firefighters Retirement System; provided, however, that the refund of accumulated
contributions with or without interest, as provided in this chapter, is not a "retirement benefit."
(u) To retire, in all its forms, means the act of becoming a retiree.
(v) Vested terminated or terminated vested means and refers to a person who was formerly a
member of the general employees' retirement plan and trust or the City of Dania Beach Police
and Firefighters Retirement System but who separated from employment by (or, in the case of an
elected public official, separated from office with) the city after obtaining a vested right to a
retirement benefit, but prior to becoming eligible to be paid such retirement benefit and who is
not yet eligible to be paid such retirement benefit from the general employees' retirement plan
and trust or City of Dania Beach Police and Firefighters Retirement System; provided, however,
that the refund of accumulated contributions with or without interest, as provided in this chapter,
is not a "retirement benefit."
(Ord. No. 268, § 2, 6-23-81; Ord. No. 20-84, §§ 1-4, 9-11-84; Ord. No. 30-84, § 1, 12-11-84;
Ord. No. 17-86, § 1, 4-8-86; Ord. No. 20-94, § 1, 12-13-94; Ord. No. 10-95, § 1, 10-10-95; Ord.
No. 2006-006, § 1, 2-28-06; Ord. No. 2007-024, § 2, 10-23-07)
Sec. 18-29.1. Membership.
(a) Conditions of eligibility.
(1) All employees already covered under the city's prior plan on the amended plan effective
date shall automatically continue participation under the amended plan and trust without any
further action being required, except for completing the application for membership described in
subsection(b) of this section.
(2) All employees not covered by the prior plan on the amended plan effective date shall be
eligible for membership as of the amended plan effective date upon meeting the requirements set
forth in subsection(b) of this section.
(3) All employees hired after the amended plan effective date shall be eligible for
membership as of their respective dates of full-time employment upon meeting the requirements
set forth in subsection (b) of this section.
(4) Effective September 1, 1973, all present employees, and all employees hired on or before
February 28, 2006, as a condition of continued employment by the city shall become members of
the system whether or not they have completed one year of continuous employment.
Any employee hired on or after March 1, 2006, shall be ineligible for membership in the plan and
shall become a member of the Florida Retirement System.
(5) a. For any employee hired on or before February 28, 2006, membership in the plan
shall be mandatoiy as a condition of employment with the city; provided, however, (i) that any
7 ORDINANCE#2009-010
EXHIBIT "A"
person who is an employee on the amended plan effective date but who is not already a member
of the prior plan may elect not to enter the plan in which case he shall not be eligible for any of
the benefits provided by this plan; and (ii) that any employees who were excluded from the plan
because of age at the time of their original employment but who subsequent thereto have become
eligible and qualified to participate and be a member of the plan may elect not to participate in
the plan, in which case they shall not be eligible for any of the benefits provided by this plan.
Such an employee shall have the right to become a member of the plan at a later date and receive
credited service pursuant to subsection (d)below.
Membership in the plan shall be optional for persons appointed to the positions of city manager
and city attorney. As an alternative to membership in the plan, the city manager, the city attorney
or both may elect to have funds equal to the amount that would otherwise be contributed to the
plan by the city on their behalf, either deposited into a deferred compensation plan of their choice
or paid to them as additional compensation.
b. Any employee hired on or before February 28, 2006, shall have the option to elect in
writing to either remain in the city plan or to join the Florida Retirement System on March 1,
2006 (the "election notice"). Further, any employee electing to join the Florida Retirement
System shall designate one (1) of the following choices on the election notice:
(i) The employee's contributions shall remain in the city plan and the employee will retain
any vested membership credit in the city's plan. The employee will be ineligible to purchase past
service credit in the Florida Retirement System to the extent that the employee retains vested
membership credit in the city's plan.
(ii) The employee is withdrawing all of the employee's contributions, with interest, from the
city's plan and the employee is not retaining any vested membership credit with the city plan.
Subject to the rules of the Florida Retirement System, the employee may be eligible to purchase
past service credit in the Florida Retirement System utilizing the employee's contributions. Any
employee who fails to submit an election notice to the city within the timeframe established by
the city manager is deemed to have elected to become a member of the Florida Retirement
System.
(6) a. Each elected public official in office on October 1, 1984, may elect not to become
a member of the plan, in which case he shall be forever barred from future membership in the
plan. This election by such elected public officials must be made by December 31, 1984. Any
such elected public official who elects to enter the plan and who could have been a member of
the prior plan (which was in effect up to June 23, 1981) but declined to join said prior plan shall
have the option of buying back his service prior to October 1, 1984. The amount and terms of
this buy back shall be according to subsection (d)(2). In the absence of this buy back, service
credit for such elected public officials shall commence on October 1, 1984. Any elected public
official in office October 1, 1984, who was not eligible for membership in the prior plan shall
receive service credit prior to October 1, 1984, without the requirement of buying back such
previous service.
b. Any elected official elected on or before February 28, 2006, shall have the option to elect
in writing to either remain in the city plan or to join the Florida Retirement System on March 1,
2006 (the "election notice"). Further, any elected official electing to join the Florida Retirement
System shall designate one of the following choices on the election notice:
(i) The elected official's contributions shall remain in the city plan and the elected official
will retain any vested membership credit in the city's plan. The elected official will be ineligible
8 ORDINANCE#2009-010
EXHIBIT "A"
to purchase past service credit in the Florida Retirement System to the extent that the elected
official retains vested membership credit in the city's plan.
(ii) The elected official is withdrawing all of the elected official's contributions, with interest,
from the city's plan and the elected official is not retaining any vested membership credit with the
city plan. Subject to the rules of the Florida Retirement System, the elected official may be
eligible to purchase past service credit in the Florida Retirement System utilizing the elected
official's contributions.
Any elected official who fails to submit an election notice to the city within the timeframe
established by the city manager, is deemed to have elected to become a member of the Florida
Retirement System.
C. In no event may an elected public official whose initial term in office begins later than his
fifty-fifth birthday become a member of the plan.
d. Any elected official elected on or before February 28, 2006, shall have the option to elect
in writing to either remain in the city plan or to join the Florida Retirement System on March 1,
2006, (the "election notice"). Further, any elected official electing to join the Florida Retirement
System shall designate one (1) of the following choices on the election notice:
(i) The elected official's contributions shall remain in the city plan and the elected official
will retain any vested membership credit in the city's plan. The elected official will be ineligible
to purchase past service credit in the Florida Retirement System to the extent that the elected
official retains vested membership credit in the city's plan.
(ii) The elected official is withdrawing all of the elected official's contributions, with interest,
from the city's plan and the elected official is not retaining any vested membership credit with the
city plan. Subject to the rules of the Florida Retirement System, the elected official may be
eligible to purchase past service credit in the Florida Retirement System utilizing the elected
official's contributions.
Any elected official who fails to submit an election notice to the city within the timeframe
established by the city manager, is deemed to have elected to become a member of the Florida
Retirement System.
e. Any elected public official whose initial term in office begins on or after March 1, 2006,
shall become a member of the Florida Retirement System unless in accordance with the rules of
the Florida Retirement System, as amended from time to time, the elected official is permitted to
opt out of membership in the Florida Retirement System.
(b) Application for membership. Each person eligible for membership shall complete an
application within forty (40) days after his date of employment or, 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:
(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 the 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 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.
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EXHIBIT "A"
(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 coverage, no repurchase or buy back of past
service is or will be required; credited service as regards such employee shall be granted from
date of employment.
(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 which such employee 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 would have contributed had he been covered by the
prior plan since he was first eligible plus interest on such amount at a rate equal to the plan's
current actuarially assumed rate of investment return. Payments must be made in full prior to the
member's retirement. Any such "buy backs" shall cause credited 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 nondiscriminatory basis. The buy-back election
by such employees must be made by June 30, 1993. Notwithstanding anything herein to the
contrary, any elected official of the city who, subsequent to his terms of office as such elected
official, becomes a regular employee of the city, shall be given credit for retirement purposes that
is equal to the number of years served as such elected official upon the payment by such
employee of the amount which he or she would have contributed had he or she been covered by
the plan during the said years of service, plus interest on such amount at a rate equal to the plans
current actuarially assumed rate of investment return. Payment must be made in full prior to the
member's retirement.
(3) In no event will buy back of service be required for any year or period prior to July 1,
1969.
(e) Purchase of credits for military service. The years or fractional parts of years that a
participant serves or has served fulltime active duty in the military service of the armed forces of
the United States, voluntary or involuntary, prior to first or initial employment with the city, shall
be added to his or her years of credited service, provided that:
(1) The participant did not receive a dishonorable discharge from the armed forces.
(2) The participant did not receive credited service for the time spent in the armed forces
from any other private, governmental or military retirement or pension system.
(3) The participant contributes to the fund the full actuarial cost of all service credits
purchased. Provided that as permitted by federal law pretax trustee-to-trustee transfer of amounts
in a participant's deferred compensation account (Internal Revenue Code section 457) for the
purchase of such service credits shall be allowed in accordance with subsection(4) below.
(4) The purchase of credited service under this section by a participant shall be made prior to
the participant making an election to participate in the DROP and shall be paid in full prior to the
participant's retirement date or conclusion of participation in the deferred retirement option plan
(DROP), whichever occurs last, and in accordance with all terms, rules, procedures or regulations
established by the board of trustees.
(5) The maximum credit which may be purchased by a participant for any military service in
the armed forces of the United States under this section shall be four(4) years.
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EXHIBIT "A"
(6) All credited service purchased pursuant to this section shall count toward vesting.
(f) Prior to making an election to participate in the DROP, a member may purchase or buy
back any portion of prior service with the city for which no credited service has been granted,
provided that he or she pays the full actuarial cost thereof by payment of increased contributions,
a lump sum payment or a diversion of his or her payments from the DROP, or any contribution
thereof. The member's payment must be completed prior to the normal retirement date or
conclusion of participation in the DROP, whichever occurs last.
(Ord. No. 268, § 3, 6-23-81; Ord. No. 20-84, §§ 5, 6, 9-11-84; Ord. No. 14-85, § 1, 5-14-85; Ord.
No. 43-88, § 1, 8-23-88; Ord. No. 41-89, § 1, 9-12-89; Ord. No. 04-93, §§ 1, 2, 3-10-93; Ord.
No. 23-93, § 2, 11-9-93; Ord. No. 19-96, §§ 1, 2, 12-17-96; Ord. No. 2002-043, § 1, 9-24-02;
Ord. No. 2004-027, § 1, 9-14-04; Ord. No. 2006-006, § 2, 2-28-06; Ord. No. 2006-016, § 2, 5-9-
06)
Sec. 18-29.2. Retirement dates and benefits.
(a) Normal retirement date. A member may retire on the first day of the month coincident
with or next following that date on which such member attains age sixty (60) and completes ten
(10) years of credited service; provided, however, any member of the prior plan on the amended
plan effective date who is age fifty-eight (58) or older on such date may retire at age sixty (60) or
older regardless of his or her length of credited service. Commencing on April 8, 1986, each
member's normal retirement date shall be the first day of the month coincident with or next
following the later of the member's fifty-fifth birthday or the date he or she completes ten (10)
years of credited service as an employee or eight (8) years of credited services as an elected
public official. This provision shall not apply to any member whose employment termination
date precedes April 8, 1986. Commencing on October 1, 2000, each member's normal retirement
date shall be the first day of the month coincident with or next following the date on which the
member attains either age fifty-five (55) and eight (8) years of credited service or attains age fifty
(50) and completes twenty-five (25) years of credited service as an employee. This provision
shall not apply to any member whose employment termination date precedes October 1, 2000.
Commencing retroactive to January 24, 2006, each member's normal retirement date shall be the
first day of the month coincident with or next following the date of which the member attains
either age fifty-five (55) and six (6) years of credited service or attains age fifty (50) and
completes twenty-five (25)years of credited service as an employee.
(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:
Two and one-half(2 1/2)percent of average monthly earnings
x
Credited service
For members who retire on or after January 1, 1999, the monthly retirement benefit shall be an
amount determined as follows:
Three (3)percent of average monthly earnings
x
Credited service
11 ORDINANCE#2009-010
EXHIBIT "A"
b. Normal form of benefit. A member retiring hereunder on his normal retirement date shall
receive a monthly benefit which shall commence on his normal retirement date and be continued
thereafter during his lifetime but for ten (10) years certain in any event. In the event of the death
of the retiree prior to the completion of ten (10) years, the monthly payments due for the
remainder of such ten-year period shall be paid to such retiree's designated beneficiary.
(2) For those who were members of the prior plan:
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 subsection 18-29.3(b)(1)(a), which reads as follows:
Two percent (2%) of average monthly earnings;cxc;Credited service
or in lieu thereof, if greater, the benefit determined for the entire period of credited service
(subject to subsection 18-29(d)),per the prior plan benefit formula, as follows:
Twenty percent (20%) of the first four hundred dollars ($400.00) of average monthly earnings
plus forty-seven percent (47%) of the excess of such earnings over four hundred dollars
($400.00), with the total reduced proportionately if credited service is less than fifteen (15)years;
in addition one percent (1%) of average monthly earnings for each year of credited service in
excess of fifteen(15)years.
b. Normal form of benefit. The benefit shall be payable on the same basis and in the same
manner as set forth in subsection 18-29.2(b)(1)(b).
(c) Early retirement date. A member may retire on the first day of the month coincident with
or next following the attainment of age fifty(50) and the completion of ten (10) years of credited
service as an employee or eight (8) years of credited service as an elected public official, or on
the first day of any month thereafter.
(d) Early retirement benefit. A member retiring hereunder on his early retirement date may
receive either a deferred or an immediate monthly retirement benefit as follows:
(1) A deferred monthly retirement benefit which shall commence on his normal retirement
date and shall be continued on the first day of 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 0.5% for each
month by which the starting date of the benefit precedes the normal retirement date, unless the
benefit payable is determined per the prior plan benefit formula in which event the benefit shall
be reduced by 0.6% for each of the first sixty (60) months and by 0.3% for each of the next sixty
(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 normal retirement benefit, then the result is multiplied
by a fraction the number of which is credited service at the early retirement 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 following normal
retirement date on which a member actually retires.
12 ORDINANCE#2009-010
EXHIBIT "A"
(f) Delayed retirement benefit. A member retiring hereunder at his delayed retirement date
shall receive a monthly benefit which shall commence on the first day of the month coincident
with or next following such delayed retirement date. The amount of each such monthly
retirement benefit shall be determined in the same manner as for normal retirement except that
average monthly earnings and credited service shall be 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 subsection 18-29.2(b)(1)(b).
(g) Applicable benefit formula. The benefit formula applicable in all cases of retirement,
whether normal, early or delayed, shall be that in effect on the member's employment termination
date, subject to provisions in subsection 18-29.2(b)(2)(a) regarding the greater benefit payable as
between the regular plan benefit formula and the prior plan benefit formula.
(h) Limitation on benefits. In no event may a member's annual benefit exceed the lesser of:
(1) Ninety thousand dollars ($90,000.00) (adjusted for cost of living in accordance with
Internal Revenue Code (IRC) section 415(d), but only for the year in which such adjustment is
effective), or
(2) One hundred percent (100%) of the average annual compensation for the member's three
(3) highest paid consecutive years; however, benefits of up to ten thousand dollars ($10,000.00) a
year can be paid without regard to the one hundred percent (100%) limitation if the total
retirement benefits payable to a member under all defined benefit plans (as defined in IRC
section 1410) maintained by the city for the present and any prior year do not exceed ten
thousand dollars ($10,000.00) and the city has not at any time maintained a defined contribution
plan (as defined in IRC section 414(i)) in which the employee was a member.
If the member has less than ten (10) years of service with the city (as defined in IRC section
415(b)(5) and as modified by IRC section 415(b)(6)(13)), the applicable limitation in paragraph
(1) or paragraph (2) of this subsection shall be reduced by multiplying such limitation by a
fraction, not to exceed one. The numerator of such fraction shall be the number of years, or part
thereof, of service with the city;the denominator shall be ten (10) years.
For purposes of this subsection, the "annual benefit" means a benefit payable annually in the
form of a straight life annuity with no ancillary or incidental benefits and with no member or
rollover contributions. To the extent that ancillary benefits are provided, the limits set forth in
paragraphs (1) and (2) above will be reduced actuarially, using an interest rate assumption equal
to the greater of five (5) percent or the interest rate used in the most recent annual actuarial
valuation, to reflect such ancillary benefits.
If distribution of retirement benefits begins before age sixty-two (62), the dollar limitation as
described in paragraph (1) shall be reduced actuarially using an interest rate assumption equal to
the greater of five (5) percent or the interest rate used in the most recent annual actuarial
valuation; however, retirement benefits shall not be reduced below seventy-five thousand dollars
($75,000.00) if payment of benefits begins at or after age fifty-five (55) and not below the
actuarial equivalent of seventy-five thousand dollars ($75,000.00) if payment of benefits begins
before age fifty-five (55). If retirement benefits begin after age sixty-five (65), the dollar
limitation of paragraph(1) shall be increased actuarially using an interest assumption equal to the
lesser of five (5) percent or the interest rate used in the most recent annual actuarial valuation.
For purposes of this subsection, the "'average annual compensation for a member's three (3)
highest paid consecutive years" shall mean the member's greatest aggregate compensation during
13 ORDINANCE#2009-010
EXHIBIT "A"
the period of three (3) consecutive years in which the individual was an active member of the
plan.
(i) Distributions in plan years beginning after December 31, 1984. Commencing with the
first plan year beginning after December 31, 1984, the entire interest of a member shall either be
distributed to him not later than April 1 of the calendar year in which he attains age seventy and
one-half(70 1/2) or the calendar year in which he retires, whichever is later. In the alternative,
distribution shall commence no later than the above specified commencement date and be
distributable over a period of time not exceeding the limitations hereinafter set forth.
(1) Distributions to a member shall not extend beyond the life of the member or the lives of
the member and his designated beneficiary, or over a period not extending beyond the life
expectancy of the member or the life expectancy of the member and his designated beneficiary.
(2) If distribution has commenced to a member, and such member dies before receiving his
entire interest, the remainder of such interest shall be distributed over a period at least as rapidly
as under the method of distribution in effect prior to such member's death (e.g., remainder of
period certain basis).
(3) Any method of distribution selected and made in writing by a member prior to January 1,
1984, and which is in compliance with plan provisions prior to said date, shall be permitted
hereunder even though not in accordance with the above provisions as applied to plan years
beginning after December 31, 1983.
0) Annual cost of living adjustments. The monthly retirement benefits payable to all
participants retired as of April 1 of each year, commencing on April 1, 2001, shall be adjusted,
pursuant to procedures, methods and actuarial assumptions established by the board of trustees,
based upon the actuarial gain realized for the prior fiscal year ending as of September 30 and
based upon the percentage of such gain which is attributable to retirees as a percentage of the
total number of participants in the fund. All retired participants shall receive an equal percentage
of adjustment to their respective level of retirement benefits which shall in no event exceed the
percentage increase set forth in the Bureau of Labor Statistics consumer Price Index, Urban
Consumers, All Cities, (CPI-U) for the preceding calendar year. If there was no actuarial gain for
the prior fiscal year, then there shall be no cost of living adjustment the following April 1.
(k) Effective June 1, 2001, all member retirees and member beneficiaries receiving benefits
from the employees' retirement plan and trust shall be eligible, as provided for and limited by
section 18-1 herein, for an annual health insurance subsidy computed as follows. Seventy-five
(75) percent of the prior year's actuarial gain allocable to members, member retirees and member
beneficiaries remaining after the application of subsection 0) shall be defined as the "available
actuarial gain." The available actuarial gain for each fiscal year shall be calculated prior to the
following June 1 and shall be paid during the following month of October to the City of Dania
Beach. Such payment is to be utilized per capita to subsidize up to one (1) year's payments for
retiree health insurance due from each member retiree and member beneficiary who receives
benefits from the plan, which payments shall be one-third ( 1/3) of the premium cost for such
insurance as provided in section 18-1 herein. Should the available actuarial gain not be fully
expended by this health insurance subsidy, then the balance of the actuarial gain shall be paid to
the City of Dania Beach to subsidize the City of Dania Beach's cost of providing one (1) year of
retiree health insurance to such member retirees and beneficiaries, which cost shall be two-thirds
( 2/3) of the premium cost for such insurance as provided in section 18-1 herein. Premium costs
shall be determined in accordance with F.S. y 112.0801. Should the available actuarial gain nct
14 ORDINANCE 42009-0]0
EXHIBIT "A"
be fully expended by this subsidy to the city, then the balance, together with any unexpended
available actuarial gain from prior years, shall be accrued by the plan in a "future benefit reserve
account" which shall be used only to pay the full cost of additional future benefits to the plan's
member retirees and beneficiaries, the determination and payment of which are hereby delegated
by the city commission to the board of trustees in its sole discretion. Deferred retirement option
program (DROP) participants shall receive credit for any such future benefits paid while
participating in the DROP but not for the health insurance subsidy.
(Ord. No. 268, § 4, 6-23-81; Ord. No. 30-84, §§ 2-4, 12-11-84; Ord. No. 17-86, § 2, 4-8-86;
Ord. No. 23-93, § 1, 11-9-93; Ord. No. 10-94, § 1, 8-9-94; Ord. No. 03-96, § 1, 3-26-96; Ord.
No. 22-98, § 1, 12-8-98; Ord. No. 2000-039, §§ 1, 2, 9-26-00; Ord. No. 2001-006, § 1, 2-27-01;
Ord. No. 2001-027, § 1, 9-25-01; Ord. No. 2006-006, § 3, 2-28-06; Ord. No. 2006-007, § 3, 3-
28-06)
Sec. 18-29.3. Death benefits.
(a) Death prior to retirement. In the event of death prior to actual retirement 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 has retired immediately preceding his
date of death, and a benefit shall be paid on a joint and survivor annuity basis as provided in
section 18-29.7, Option 1, the percentage 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 benefit (ten (10) years certain and life annuity)
or the use of a preretirement selection of an option providing a survivor benefit pursuant to
section 18-29.7 herein.
(c) [Option of beneficiary to keep benefits in the plan.] In the event of the death of a member
who is not eligible for retirement benefits, but who has completed eight (8) or more years of
credited service with the city on or after the effective date of this ordinance, his designated
beneficiary will have the option to either leave his accumulated contributions in the plan until the
time of the deceased employee's normal retirement date and receive benefits as stated in Option
1. Joint and "one hundred (100) percent", last survivor option, section 18-29.7; or to take an
actuarially reduced benefit at the deceased employee's time of death.
(Ord. No. 268, § 5, 6-23-81; Ord. No. 66-88, § 1, 11-22-88, Ord. No. 1-91, § 1, 1-8-91; Ord. No.
2002-043, § 2, 9-24-02)
Sec. 18-29.4. Termination benefits.
(a) Subject to the provisions in subsection (b) below with respect to members with five (5)
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 one hundred (100) percent vested). All members shall
acquire a vested right to their accrued benefits pursuant to the following vesting schedule:
TABLE INSET:
Vesting Schedule
Completed years of credited service with the city Cumulative vested nonforfeitable interest in
15 ORDINANCE#2009-010
EXHIBIT "A"
the accrued benefit
Less than 6 0%
6 or more 100%
Any member not eligible for an early, normal or delayed retirement benefit who has a vested
interest at time of termination shall receive such benefit commencing at a normal retirement date,
which shall be age fifty-five (55) for members who have less than twenty-five (25) years of
credited service as an employee and age fifty (50) for members who have twenty-five (25) or
more years of credited service as an employee. However, a member may elect to receive a
deferred benefit upon attaining age fifty (50), or any date thereafter, the benefit in such case to be
actuarially reduced as for early retirement. In lieu of all other benefits under this amended plan, a
terminated vested member may elect to receive in a lump sum immediately on termination of
employment payment of an amount equal to his or her accumulated contributions.
(b) Any member with five (5) years' credited service under the prior plan may, upon
termination of employment, be entitled to the same rights as those of a vested member as
provided in subsection(a) above.
(Ord. No. 268, § 6, 6-23-81; Ord. No. 2001-006, § 2, 2-27-01; Ord. No. 2001-027, § 2, 9-25-01;
Ord. No. 2006-006, § 4, 2-28-06)
Sec. 18-29.5. Disability benefits.
(a) Eligibility period. The eligibility requirements for service incurred and nonservice
incurred disability benefits for all members shall be as follows:
(1) Nonservice incurred: Eligible from entry date as a member of the plan.
(2) Service incurred: Eligible from entry date as a member of the plan.
(b) Definition of disability. An illness, injury, disease or disability which:
(1) Permanently incapacitates a member physically or mentally from his regular and
continuous duty as an employee for a period of six (6) months or more, and
(2) Qualifies the member for Social Security disability benefits.
(c) Nonservice incurred disability benefit and duration. Any member otherwise eligible as
stated above who becomes entitled to a nonservice incurred disability shall receive from the fund
a monthly disability benefit equal to this 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 became totally and permanently disabled and shall
continue until the earlier of death, recovery from such disability or attainment of normal
retirement age. If the benefit ceases by reason of a member attaining normal retirement age, such
member shall be entitled to commence receiving 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 eligible as stated
above who receives a service incurred disability (i.e., disability as a result of an act occuring in
the performance of service to the city), shall receive from the fund in equal monthly installments
a monthly disability benefit equal in amount to the difference between sixty-six and two-thirds
(66 2/3) percent 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 Worker's
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
16 ORDINANCE 42009-010
EXHIBIT "A"
Security or Worker's 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 become totally and permanently disabled and shall continue
until the eariler 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 determination that such disability was service or nonservice incurred and
that such member has undergone medical examination by one or more medical doctors
designated by the board of trustees and that such disability has been substantiated by the medical
doctor(s) to be total and permanent. Any refusal by a member to undergo such examination shall
result in denial of disability benefits.
(f) Required reexamination of disability retirees. Any service or nonservice incurred
disability retiree may be required to undergo a medical reexamination periodically by the board
of trustees in order to confirm the continued existence of the disability condition. Any refusal by
a member to undergo such examination or reexamination shall result in a termination of
disability payments until such disability condition is again medically substantiated to the
satisfaction of the board of trustees.
(g) Additional provisions re disability retirees.
(1) Exclusions: Disability benefits shall not be payable in cases where the disability arose as
a result of the member's own willful intent or self-inflicted injury, intoxication, or use of
narcotics or other items considered to be dangerous drugs, or commission of a criminal act.
(2) Recovery: In the event of recovery from disability as determined by the board, and
reemployment by the city within sixty (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
reemployment by the city the member's future benefits, if any, shall be determined as though he
initially terminated employment on his date of disability.
(Ord. No. 268, § 7, 6-23-81)
Sec. 18-29.6. Contributions.
(a) Member contributions.
(1) Amount: Members of the retirement plan shall make regular contributions at a rate of
eleven and sixty-six one hundredths (11.66) percent of earnings. Effective October 1, 1999
members shall regularly contribute an additional eight and eight one-hundredths (8.08) percent
for a total rate of nineteen and seventy-four one-hundredths (19.74) percent of earnings to the
retirement plan. Member contributions shall be deposited in the fund on at least a monthly basis.
(2) Interest: Interest shall be credited annually to member contributions 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 at least annually equal in total amount to his accumulated contributions
plus interest credited.
(4) Duration: Contributions shall be deducted from said earnings before the same are paid
and together with those member contributions which are "picked up" and paid by the city, shall
continue until the member has reached his actual retirement date or his termination date
whichever occurs basis. Effective as of October 1, 1996, three and sixty-six one-hundredths
(3.66) percent of the member's earnings shall be deducted from the member's earnings. The
17 ORDINANCE#2009-010
EXHIBIT "A"
remaining eight (8) percent of member's earnings shall be paid and assumed by the city as
member contributions, as the result of a five (5) percent reduction of each member's earnings as
of October 1, 1987, together with a three (3) percent reduction of each member's earnings which
is scheduled to become effective as of October 1, 1996. These reductions of member earnings
were implemented in lieu of a five-percent wage increase which was scheduled to become
effective as of October 1, 1987, and in lieu of a three-percent wage increase which is scheduled
to become effective as of October 1, 1996. Effective October 1, 1999 an additional eight and
eight one-hundredths (8.08) percent of the member's earnings, for a total of sixteen and eight
one-hundredths (16.08) percent of each member's earnings, shall be paid and assumed by the city
as member contributions, as the result of a eight and eight one-hundreds (8.08) percent reduction
of each member's earnings. This reduction of member earnings was implemented in lieu of an
eight and eight one-hundredths (8.08) percent wage increase. No member subject to such
agreement shall have the option of choosing to receive the contributed amounts directly instead
of having them paid by the city directly to the plan. All such member contributions by the city
shall be deemed and considered as part of the member's accumulated contributions and subject to
all provisions of this plan pertaining to accumulated contributions of members. The intent of this
language is to comply with section 414(h)(2) of the Internal Revenue Code.
(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 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 additional amount sufficient to amortize the
unfunded accrued past 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 be increased at some future date
by way of an amendment to this article, the period of time over which the increase in the
unfunded accrued liability attributable to the amendment is to be amortized shall be governed by
laws of the state.
(Ord. No. 268, § 8, 6-23-81; Ord. No. 30-84, § 5, 12-11-84; Ord. No. 17-86, § 3, 4-8-86; Ord.
No. 03-96, §§ 2, 3, 3-26-96; Ord. No. 22-98, §§ 2, 3, 12-8-98)
Sec. 18-29.7. 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, to elect to have the benefit payable under
any one of the options as hereinafter set forth in lieu of the benefits otherwise provided herein,
and to revoke any such elections and make a new election at any time prior to the 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
at least equal to fifty (50) percent 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.
Option 1 Joint and last survivor option: The member may elect to receive a reduced benefit
during his or her lifetime and having such benefit (or a designated fraction thereof) continued
after his or her death to and during the lifetime of his or her designated beneficiary. The election
of Option 1 shall be null and void if the designated beneficiary dies before the member's benefit
payments commence.
18 ORDINANCE#2009-010
EXHIBIT "A"
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 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 twenty (20) years or beyond age eighty-five (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 three thousand dollars ($3,000.00).
Option 4 Deferred retirement option plan: A member may enter into the deferred retirement
option plan (DROP) on the first day of any month following the date upon which the member
reaches normal retirement date or early retirement date. A member will no longer be required to
make contributions to the plan or, at the member's option may be permitted to make reduced
contributions to the plan, and the member's retirement benefits will accrue to the member's
benefit through a separate fund administered by the board of trustees. Members electing to
participate in the DROP plan whose contributions to the retirement system are either
discontinued or reduced shall receive a return of any contributions made into the retirement
system on their behalf after the commencement of their participation in the DROP plan or, at the
member's option, said contributions shall be deposited into a separate fund administered by the
board of trustees. The DROP plan shall be administered by the board of trustees in such a way as
to not increase the city's contributions to the retirement system. Members electing to enter the
DROP plan after March 1, 2006, shall submit with their application to enter the plan an
irrevocable letter of resignation of employment to be effective no later than five (5) years from
the date of entry into the DROP. Termination of employment may occur sooner but in no event
later than the effective date of the letter of resignation.
Eligible rollover distributions: If the recipient of any eligible rollover distribution, as that term is
defined in section 402(f)(2)(A) of the Internal Revenue Code, including any lump sum payments
of retirement benefits or deferred compensation accounts (Internal Revenue Service Code section
457), lump sum refunds of member contributions, and lump sum returns of member contributions
which were picked up by the city, elects to have such distribution paid directly to an eligible
retirement plan or individual retirement account (IRA), and specifies the eligible retirement plan
or IRA to which such distribution is to be paid (in such form and at such time as the board of
trustees may prescribe), then the distribution will be made in the form of a direct trustee-to-
trustee transfer to the specified eligible retirement plan or IRA.
(Ord. No. 268, § 9, 6-23-81; Ord. No. 04-93, § 4, 3-10-93; Ord. No. 20-94, § 2, 12-13-94; Ord.
No. 2002-043, § 3, 9-24-02; Ord. No. 2006-007, § 1, 3-28-06)
Sec. 18-29.8. Finances and fund management.
Establishment and operation of trust fund:
(1) As a part of the plan there is hereby established a trust fund, into which shall be deposited
all of the contributions and assets whatsoever 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 responsibility for custodianship
shall be vested in the board. Payment of benefits and disbursements from the fund shall be made
by the disbursing agent on authorization from the board.
19 ORDINANCE 42009-010
EXHIBIT "A"
(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 and entries as regards the following:
a. Receipts and disbursements;
b. Benefit payments;
C. All monies, funds and assets whatsoever to contributions and deposits from the city;
d. All interest, dividends and gains (or losses)whatsoever; and
e. Such other entries as may be properly required so as to reflect a clear and complete
financial report of the fund.
(5) For the purposes 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 arrangement with a legal reserve life insurance company that holds a business tax receipt
to do 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 an insurance company, or wholly or partially through the trust fund, or a
combination arrangement. Further, the board may establish 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 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 liabilities with respect to
covered employees and their beneficiaries under the trust, for any part of the principal or income
of the trust to be used for, or diverted to, purposes other than for the exclusive benefit of the
employees or their beneficiaries, except for usual and customary charges and expenses associated
with the operation and management of the plan and fund.
(Ord. No. 268, § 10, 6-23-81; Ord. No. 2007-004, § 3, 3-27-07)
Sec. 18-29.9. Board of trustees--Plan administration.
(a) 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.
(b) The board of trustees shall be the plan administrator and as such shall be charged with the
general administration and responsibility for the proper operation of the retirement plan and trust
and for making effective the provisions of this article. The board of trustees shall consist of five
(5)persons as follows:
(1) One member of the commission as selected by the commission, and
(2) Two (2) employees of the city, regularly employed members of this retirement system or
former members of this retirement system who are receiving a monthly retirement benefit
hereunder,upon the election by a majority of the regularly employed employees of the city, and
(3) Two (2) 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 commission shall select another commissioner to serve on the board.
20 ORDINANCE#2009-010
EXHIBIT "A"
The two (2) 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
(2) members shall serve for a period of two (2) years from the amended plan effective date. At
the end of this two-year period, an election shall be held by the employees who are members at
that time in order to elect two (2) successor employee members to the board. The employee
receiving the greatest number of votes shall serve for a period of three (3) years and the employee
receiving the second greatest number of votes shall serve for a period of two (2)years. Thereafter
each elected employee member of the board shall serve for a period of three (3) years. Upon the
resignation or removal of such member from the board, an election shall be held by the
employees who are members at that time in order to elect another employee to complete the
remainder of the unexpired term. Upon the termination of an employee member who is entitled
to or is receiving a monthly retirement benefit hereunder, such employee shall be allowed to
complete the unexpired portion of his or her current term.
The two (2) 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 (2) 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 (2) successor resident
members to the board. One such resident shall serve for a period of two (2) years and the other
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 (2) 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.
The employee and resident members may succeed themselves in office. The board shall elect one
of its members to be the chairman and another to be the secretary of the board, the term of office
being two (2) years for each position. The secretary shall keep a complete minute book of the
proceedings of the board. The trustees shall not receive any compensation as such but may be
reimbursed for unreasonable expenses which they may incur in their positions as trustees.
(c) A member may be removed from the board if he is absent from two (2) consecutive board
meetings without good reason, as determined by at least three (3) other members of the board.
Upon such removal, the unexpired term of office shall be filled as described in subsection (b) of
this section.
(d) Each trustee shall be entitled to one vote on matters and items of business presented to
the board. Three (3) affirmative votes shall be necessary for a decision by the trustees at any
meeting of the board. The chairman shall have the right to one vote only. Three (3) members
shall constitute a quorum.
(e) Subject to the limitations of this article, the board of trustees shall from time to time
establish uniform, nondiscriminatory rules and regulations for the administration of funds created
by this article and for transaction of its business.
(f) The board of trustees shall engage such actuarial and other services as 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.
21 ORDINANCE#2009-010
EXHIBIT "A"
(g) The duties and responsibilities of the board of trustees shall include, but not necessarily
be limited to, the following:
(1) To construe the provisions of the plan and trust and determine all questions arising
thereunder.
(2) To determine or have determined and certified the amount of all retirement allowances or
other benefits hereunder.
(3) To receive and process all applications for participation and benefits and, where
necessary, conduct hearings thereon.
(4) To authorize all payments whatsoever from the fund, and to notify the disbursing agent,
in writing, or approve benefit payments and other expenditures arising through operation of the
plan.
(5) To make recommendations to the city commission regarding changes in the provisions of
the plan and trust.
(6) To review reports of and have meetings with the custodian and investment agent(s) or
advisor; to require written reports from the custodian on fund assets and transactions on a
semiannual or more frequent basis if deemed advisable by the board; to require written and oral
reports from the investment agent or advisor on at least a semiannual basis, such reports to reflect
trust fund investment performance, investment recommendations and overall review of fund
investment policies.
(7) To determine or have determined that the retirement plan complies at all times with the
provisions of Florida law both substantially and in operation, and including the following:
a. Have prepared annually and distributed to all members a plan description and a summary
of pertinent updated financial and actuarial information.
b. Assure that city contributions are deposited into the trust fund at least quarterly and that
member contributions are deposited at least monthly.
C. Assure that all regular and special actuarial reports are filed with the Florida division of
retirement within sixty (60) days of receipt.
d. 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.
e. Establish a uniform procedure for prompt review and rehearing of all claims by members
or beneficiaries.
(8) To maintain a minute book containing the minutes and records of the proceedings and
meetings of the board.
(Ord. No. 268, § 11, 6-23-81; Ord. No. 18-98, § 1, 10-13-98)
Sec. 18-29.10. Same--Investment authority.
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, subject, however,
and in any event to the authority and power of the city 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 income thereof,
without distinction between principal and income, shall be held and administered by the board or
22 ORDINANCE#2009-010
EXHIBIT "A"
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
but 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 case 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,
recapitalizations, 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 depositories designated thereby; to amortize or fail to amortize any part
or all of the premium or discount resulting from the acquisition or disposition of assets; and
generally, to exercise any of the powers of an owner with respect to stocks, bonds, or other
investments, comprising the fund which it may deem to be the best interest of the fund to
exercise.
(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.
(9) Where any action which the board is required to take or any duty or function which it is
required to perform either under the terms herein or under the general law applicable to it as
trustee under this article, can reasonably be taken or performed only after receipt by it from a
member, the city or any other entity of specific information, certification, 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 beneficiary 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.
(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.
23 ORDINANCE#2009-010
EXHIBIT "A"
(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 subsection 18-29.8(5), the board may establish arrangements with an
insurance carrier, by separate investment contract or other similar arrangement, for the purpose of
authorizing and delegating to the insurance company the investment of all or a portion of fund
assets.
(Ord. No. 268, § 12, 6-23-81)
Sec. 18-29.11. Fiduciaries and fiduciary responsibility.
(a) Fiduciary. A "fiduciary" shall be any person or entity who exercises any discretionary
authority or control regarding regular, on-going 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.
(b) Fiduciaries' standards of responsibility. All fiduciaries shall discharge their duties with
respect to the plan solely in the interest of members and beneficiaries, and more particularly as
follows:
(1) For the exclusive purpose of providing benefits to members and their beneficiaries, and
defraying reasonable plan administrative expenses; and
(2) 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
(3) By performing their duties in accordance with the documents and instruments setting
forth and governing the amended plan and trust.
(Ord. No. 268, § 13, 6-23-81)
Sec. 18-29.12. Repeal or termination of system.
(a) This article 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, 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 be
determined to be inadequate.
(b) If this article shall be repealed, or if contributions to the plan and trust are discontinued,
the board shall continue to administer the amended plan and trust in accordance with the
provisions of this article, for the sole benefit of the then members, any beneficiaries then
receiving retirement allowances, and any future persons entitled to receive benefits under one of
the options provided for in this article 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 manner to provide benefits on a proportionate basis to the persons so
entitled to benefits in accordance with the provisions hereof, with prior preference being directed
towards the return of accumulated contributions.
24 ORDINANCE#2009-010
EXHIBIT "A"
(c) The following shall be the order of priority for purposes of allocating the assets of the
trust upon repeal or termination of this article if contributions to the plan and trust are
discontinued:
(1) Accumulated contributions of the members, if any, less any benefits received. If any
funds remain, then
(2) Members already retired under the normal, delay and early retirement provisions of the
plan and those eligible for normal, delayed and early retirement 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 according to paragraph (1) above. If any funds
remain, then
(3) All other members and their beneficiaries in the same manner as in paragraph (2) 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 entitled to said benefits or the distributions may be carried out in such other equitable
manner as the board may direct. The trust may be continued in existence for purposes of making
subsequent distributions and invested and reinvested until full distribution of all assets has been
made.
If, at any time during the first ten (10) 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 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 twenty-
five (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 one thousand five hundred dollars ($1,500.00), shall not exceed the greater of either (a)
twenty thousand dollars ($20,000.00) or (b) an amount computed by multiplying the smaller of
ten thousand dollars ($10,000.00) or twenty (20) per centum of such employee's average annual
earnings during his last five (5) 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 subsection 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 article.
After all the vested and accrued benefits provided hereunder have been 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.
(Ord. No. 268, § 14, 6-23-81)
Sec. 18-29.13. Miscellaneous provisions.
(a) Discarded members. Members entitled to a pension shall not forfeit the same upon
dismissal from employment, but shall be retired as herein described.
(b) Nonassignability. No benefit provided for herein shall be assignable or subject to
garnishment for debt or for other legal process. However, should an income deduction order
issued pursuant to Section 61.1301 of the Florida Statutes cause the plan to incur additional
25 ORDINANCE#2009-010
EXHIBIT "A"
expenses in complying with said order, the plan shall abide by the income deduction order and
the additional expenses shall be deducted from the member's benefit checks.
(c) 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 article if
the same is found to be erroneous, fraudulent or illegal for any reason; and to reclassify any
pensioner who has heretofore under prior or existing law or city retirement plan or who shall
hereafter under this article be erroneously, improperly or illegally classified.
(d) Incompetents. If any member or beneficiary is a minor or is, in the judgment of the board,
otherwise incapable of personally receiving and giving a valid receipt for any payment due him
under the plan, the board may, unless and until claims shall have been made by a duly appointed
guardian or committee of such person, make such payment or any part thereof 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.
(e) Claims procedure for participants and beneficiaries upon denial of claim.
(1) Any member or beneficiary whose application or claim for benefits has been denied shall
receive from the board a written notice setting forth the specific reasons for such denial, the
reasons therein to be clearly and fully explained so as to afford such member or beneficiary a
clear understanding of the decision rendered.
(2) Any member or beneficiary whose application or claim for benefits has been denied shall
have the right to a rehearing 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.
(3) Reemployment, cessation of benefit payments. If a pensioner is reemployed by the city,
his retirement benefit payments shall cease with the last payment due prior to his reemployment.
Retirement benefit payments shall again become payable on the first day of the month following
subsequent terminations of employment.
[f]
(g) 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.
(h) Elected public officials: Provisions applicable. Except as otherwise provided herein, the
provisions of this plan shall apply to elected public officials in the same manner as such
provisions apply to other members; provided, however, the monthly retirement benefit payable to
any elected public official who has served for twenty (20) or more years as an elected public
official for the city, in accordance with Chapter 112.048, Florida Statutes, shall be the greater of
the benefit provided by this plan or the benefit authorized and provided for under Chapter
112.048, Florida Statutes.
(Ord. No. 268, § 15, 6-23-81; Ord. No. 20-84, § 7, 9-11-84; Ord. No. 24-85, § 1, 7-23-85; Ord.
No. 04-93, § 3, 3-10-93)
Secs. 18-30--18-39. Reserved.
ARTICLE IV. POLICEMEN AND FIREMEN"
26 ORDINANCE#2009-010
EXHIBIT "A"
*Cross references: Insurance premium taxes, § 23-31 et seq.
Sec. 18-40. Definitions.
As used herein, unless otherwise defined or required by the context, the following words and
phrases shall have the meaning indicated:
(1) CITY means the City of Dania, Florida.
(2) AGREEMENT means this written instrument setting forth the provisions of the
retirement system.
(3) SYSTEM means the City of Dania Police and Firefighters Retirement System as
contained herein and all amendments thereto.
(4) FUND means the trust fund established herein as part of the system.
(5) BOARD means the board of trustees, which shall administer and manage the system
herein provided and serve as trustee of the fund.
(6) [EMPLOYEE shall mean:]
(a) All actively employed employees of the city as of March 1, 1977, or later classified as
full-time sworn police officers, as defined on the effective date in Section 185.02, Chapter 185,
F.S.A.
(b) All actively employed employees of the city as of March 1, 1977, or later classified as
regular full-time fire fighters as defined on the effective date in Section 175.032, Chapter 175,
F.S.A.
(c) All actively employed employees of the Sheriff of Broward County, also known as the
Broward Sheriffs Office, classified as deputy sheriffs or law enforcement officers who were
initially employed by the sheriff on October 1, 1988, pursuant to the service agreement between
the city and the sheriff approved by the city commission Resolution No. 35-88, who were
members of this system on September 30, 1988, and who elected, on or before December 1,
1988, to remain as members of this system.
(d) All civilian employees of the fire and police departments and the sheriffs office shall be
excluded from this definition.
(7) MEMBER means an employee who fulfills the prescribed participation requirements.
Provided that the fire chief and police chief may elect not to participate in this plan by submitting
written notice to the board of trustees.
(8) CONTINUOUS SERVICE means for those who were also members of the prior
policemen's or firemen's retirement funds during the entire period in which eligible to do so,
uninterrupted service (expressed as years and completed months), from the date he last entered
employment as an employee, including the initial period of probationary employment, until the
date his employment shall be terminated by death, disability, retirement, resignation, or
discharge, but in no event beyond attainment of the member's normal retirement date; provided
however, the continuous service of any member shall not be deemed to be interrupted by:
(a) Any authorized leave of absence or vacation provided that all members similarly situated
in similar circumstances shall be treated alike pursuant to uniform, nondiscriminatory rules.
(b) Any service, voluntary or involuntary in the Armed Forces of the United States, provided
the member is legally entitled to reemployment under the provisions of the Uniformed Services
Employment and Reemployment Rights Act (USERRA), anc any amendments thereto, or any
27 ORDINANCE#2009-010
EXHIBIT "A"
law applicable to such reemployment, and provided further, that said member shall apply for
reemployment within the time periods provided in USERRA, Section 185.02(5)(d)3, of the
Florida Statutes, or any law applicable to such reemployment, following termination of such
service.
For those who were not members of either of the prior retirement funds at all times while
eligible, continuous service shall be the same as above, except excluding periods of time prior to
March 1, 1977, during and for which contributions were not made to one of said funds. Provided
further, such excluded service may be re-established as continuous service in accordance with
procedures set forth hereunder.
(9) EARNINGS means total cash compensation paid to a member for salary (including
incentive pay) and longevity in accordance with state law as follows:
Firefighter compensation or salary means the fixed monthly remuneration paid a firefighter,
where remuneration is based on actual services rendered, and includes annual payment for
unused leave, any salary reduction, deferred compensation, or tax sheltered annuity authorized by
the city and the Internal Revenue Code.
Police officer compensation or salary means the fixed monthly total remuneration paid a police
officer, including overtime up to three hundred (300) hours per police officer per calendar year,
where remuneration is based on actual services rendered, and includes any salary reduction,
deferred compensation, or tax sheltered annuity authorized by the city and the Internal Revenue
Code, excluding any payments for extra duty or special detail work performed on behalf of a
second-party employer.
(10) AVERAGE MONTHLY EARNINGS means one twenty-fourth ( 1/24) of the arithmetic
average of earnings for the highest consecutive twenty-four-month period preceding the
member's date of termination or the date when the member accrues the benefit level of seventy-
five (75) percent for police participants and eighty-five (85) percent for firefighter participants.
Provided however, each member who has accrued the benefit level of seventy-five (75) percent
for police participants and eighty-five (85) percent for firefighter participants may elect to make
partial additional contributions as provided hereunder in order to have average monthly earnings
determined as of his actual retirement or termination date.
(11) BENEFICIARY means the spouse and/or children where so provided hereunder, or where
the spouse and/or children are not otherwise specifically designated under this article, the person
or persons entitled to receive benefits hereunder at the death of a member who has or have been
designated in writing by the member and filed with the board. If no such designation is in effect
at the time of death of the member, or if no person so designated is living at that time, the
beneficiary shall be the estate of the member.
(12) ACCUMULATED CONTRIBUTIONS means a member's own contributions plus
interest.
(13) SPOUSE shall mean the lawful wife or husband of a member at time of pre-retirement,
death or retirement.
(14) EFFECTIVE DATE means March 1, 1977, the date on which this article and system
becomes effective.
(15) SHERIFF means the sheriff of Broward County and the Broward Sheriffs Office.
(16) ACTUARIAL EQUIVALENCE or ACTUARIALLY EQUIVALENT shall mean that any
benefit payable under the terms of this system in a form other than the normal form of benefit
shall have the same actuarial present value on the date payment commences as the normal form
28 ORDINANCE#2009-010
EXHIBIT "A"
of benefit. For purposes of establishing the actuarial present value of any form of payment, other
than a lump sum distribution, all future payments shall be discounted for interest and mortality by
using seven (7) percent interest and the 1983 Group Annuity Mortality Table for Males, with
ages set ahead five years in the case of disability retirees. In the case of a lump sum distribution,
the actuarial present value shall be determined on the basis of the same mortality rates as just
described and the Pension Benefit Guaranty Corporation's interest rates for terminating single
employer plans which rates are in effect: (a) ninety (90) days prior to the member's date of
termination if distribution is made within six (6) months of such date of termination, or(b) ninety
(90) days prior to the distribution date if distribution is made later than six (6) months after the
member's date of termination.
(17) PLAN YEAR or LIMITATION YEAR means each twelve-month period ending on
September 30.
(18) HIGHLY COMPENSATED EMPLOYEE means an employee described in IRC Section
414(q) and the Regulations thereunder, and generally means an employee who performed service
for the city during the "determination year" and is one or more of the following groups:
(a) Employees who at any time during the "determination year" or "look-back year" were five
(5)percent owners of the city.
(b) Employees who received "415 Compensation" during the "look-back year" from the city
in excess of seventy-five thousand dollars ($75,000.00).
(c) Employees who received "415 Compensation" during the "look-back year" from the city
in excess of fifty thousand dollars ($50,000.00) and were in the "top paid group" of employees
for the plan year.
(d) Employees who during the "look-back year" were officers of the city (as that term is
defined within the meaning of the Regulations under IRC Section 416) and received "415
Compensation" during the "look-back year" from the city greater than fifty (50) percent of the
limit in effect under IRC Section 415(b)(1)(A) for any such plan year. The number of officers
shall be limited to the lesser of(i) fifty (50) employees; or (ii) the greater of three (3) employees
or ten (10) percent of all employees. If the city does not have at least one officer whose annual
"415 Compensation" is in excess of fifty (50) percent of the IRC Section 415(b)(1)(A) limit, then
the highest paid officer of the city will be treated as a highly compensated employee.
(e) Employees who are in the group consisting of the one hundred (100) employees paid the
greatest "415 Compensation" during the "determination year" and are also described in (b), (c) or
(d) above when these paragraphs are modified to substitute "determination year" for "look-back
year".
The "determination year" shall be the plan year for which testing is being performed, and the
"look-back year" shall be the immediately preceding twelve-month period.
"Top paid group" means the top twenty (20) percent of employees who performed services for
the city during the applicable year ranked according to the amount of "415 Compensation"
received from the city during such year. For the purpose of determining the number of active
employees in any year, the following employees shall be excluded; however, such employees
shall still be considered for the purpose of identifying the particular employees in the "top paid
group":
1. Employees with less than six (6) months of service;
2. Employees who normally work less than seventeen and one-half(17 1/2)hours per week.
3. Employees who normally work less than six (6) months during a year; and
29 ORDINANCE 92009-010
EXHIBIT "A"
4. Employees who have not yet attained age twenty-one (21).
The foregoing exclusions set forth in this section shall be applied on a uniform and consistent
basis for all purposes for which the IRC Section 414(q) definition is applicable.
"Family member" means, with respect to an affected participant, such participant's spouse, such
participant's lineal descendants and ascendants and their spouses, all as described in IRC Section
414(q)(6)(B).
(19) RETIREE means a person who was formerly a city employee and who is eligible to be
paid a retirement benefit from the general employees' retirement plan and trust or the City of
Dania Beach Police and Firefighters Retirement System; provided, however, that the refund of
accumulated contributions with or without interest, as provided in this chapter, is not a
"retirement benefit."
(20) TO RETIRE, in all its forms, means the act of becoming a retiree.
(21) VESTED TERMINATED or TERMINATED VESTED means and refers to a person
who was formerly a member of the general employees' retirement plan and trust or the City of
Dania Beach Police and Firefighters Retirement System but who separated from employment by
(or, in the case of an elected public official, separated from office with) the city after obtaining a
vested right to a retirement benefit, but prior to becoming eligible to be paid such retirement
benefit and who is not yet eligible to be paid such retirement benefit from the general employees'
retirement plan and trust or City of Dania Beach Police and Firefighters Retirement System;
provided, however, that the refund of accumulated contributions with or without interest, as
provided in this chapter, is not a "retirement benefit."
(Ord. No. 132, § 1, 2-22-77; Ord. No. 56-85, § 1, 11-26-85; Ord. No. 72-88, §§ 1, 2, 11-22-88;
Ord. No. 4-91, §§ 1, 2, 2-13-91; Ord. No. 05-94, § 7, 4-26-94; Ord. No. 21-98, § 6, 11-24-98;
Ord. No. 2000-024, §§ 1-4, 6-27-00; Ord. No. 2006-005, § 2, 2-28-06; Ord. No. 2007-024, § 2,
10-23-07)
Sec. 18-41. Membership.
(1) CONDITIONS OF ELIGIBILITY.
(a) All employees as of the effective date, and all future new employees, shall become
members of this system as a condition of employment.
(b) All eligible employees, both as of the effective date as well as future new employees,
shall be required to complete a medical examination as prescribed by the board. Based upon
medical evidence of a pre-existing adverse health condition, resulting from the prescribed
examination or other records or medical history, the board may declare any member ineligible for
disabilitybenefits hereunder, as relayed to such pre-existing condition. However, members who
Y P g
were also members of the prior policemen's or firemen's retirement fund immediately preceding
the effective date of this system, and who are ruled ineligible for disability benefits arising from
specified pre-existing conditions, shall in the event of actual disability due to such specified
condition receive the benefit which would have been payable under such prior funds.
A member may be declared ineligible for disability only at the time of the board's acceptance of
the application for membership, subject only to subsection (9) of section 4, hereof,* and such
declaration shall be recorded on the member's otherwise approved application, a copy of which
shall be provided to the member. Each declaration must also be reflected in the minutes of the
meeting of the board at which such declaration was formally adopted or established by the board.
The procedures followed, and rulings made, regarding this matter shall be on a uniform,
nondiscriminatory basis, with all employees in similar situations being treated alike.
30 ORDINANCE#2009-010
EXHIBIT "A"
*Editor's note: Ordinance No. 132, comprising this article, contained no § 4(9). Section 4 of said
ordinance is now set out in § 18-43.
(2) APPLICATION FOR MEMBERSHIP. Each eligible employee shall complete an
application form covering the following points, as well as such other points or items as may be
prescribed by the board:
(a) Acceptance of the terms and conditions of the retirement system, including an initialing
of any declaration of ineligibility for disability benefits, and
(b) Designation of a beneficiary or beneficiaries, and,
(c) Authorization of the applicable payroll deduction payable to the system, and
(d) For members as of March 1, 1977, who were not members of the prior policemen's or
firemen's retirement funds at all times while eligible, a request for, or rejection of, inclusion of
such prior service in continuous service, with an agreement to make such additional contributions
as required hereunder.
(e) A certified statement as to the employee's medical history.
For purposes of member contributions and for all benefits hereunder other than disability
benefits, the application for membership shall be considered to have been in effect from date of
employment, even though officially accepted and approved by the board at a later date. For
purposes of disability, however, an employee shall be considered a member and eligible for
benefits hereunder only upon completion of all medical examination requirements and upon
subsequent approval and formal acceptance of the application for membership by the board.
(3) BUY-BACK OF PRIOR SERVICE.
(a) Members as of March 1, 1977, who were not members of the prior policemen's retirement
fund or firemen's retirement fund at all times while so eligible, may have included in continuous
service the period of time since last becoming an employee which would otherwise be excluded
because of prior nonmembership. In order to receive credit for such service, a member must
deposit to this fund an amount equal as of March 1, 1977, to five (5) percent of his basic salary,
but excluding overtime, bonuses, or other extra compensation, received as an employee, but
while not contributing to the prior policemen's or firemen's retirement fund, since July 1, 1969.
This required deposit may be made immediately on a single lump-sum basis, or other a period
not to exceed four (4)years under terms and conditions established by the board. In the event that
benefits should become payable hereunder to a member, or to his beneficiary, prior to the time
that this required deposit has been made in full, required payments to the fund shall be completed
by off-setting the amount yet due against benefit payments until the remaining balance due is
paid in full.
(b) The exercise of this election to buy-back prior service shall have no effect on a member's
eligibility for, or amount of, benefits under the prior policemen's or firemen's retirement fund, as
carried forward for minimum benefit guarantees hereunder.
(c) Purchase of credits for military service. The years or fractional parts of years that a
participant serves or has served fulltime active duty in the military service of the Armed Forces
of the United States, voluntarily or involuntarily, prior to first or initial employment with the city,
shall be added to his or her years of credited service,provided that:
1. The participant did not receive a dishonorable discharge from the Armed Forces.
31 ORDINANCE#2009-010
EXHIBIT "A"
2. The participant did not receive credited service for the time spent in the Armed Forces
from any other private, governmental or military retirement or pension system.
3. The participant contributes to the fund the full actuarial cost of all service credits
purchased in accordance with applicable state and federal laws.
4. The purchase of credited service under this section by a participant shall be paid in full
prior to the participant's retirement date, and in accordance with all terms, rules, procedures or
regulations established by the board of trustees and applicable state and federal laws.
5. The maximum credit which may be purchased by a participant for any military service in
the Armed Forces of the United States under this section shall be five (5) years in accordance
with applicable state and federal laws.
6. All credited service purchased pursuant to this section shall count toward vesting.
(d) Purchase or credits for voluntary fire fighter service. The years or fractional parts of years
that a participant serves or has served as a volunteer fire fighter with the City of Dania, Florida
Fire Department, shall be added to his or her years of credited service, provided that:
1. The participant did not receive credited service for the time spent volunteering as a fire
fighter in the City of Dania, Florida Fire Department from any other private or governmental
retirement or pension system.
2. The maximum credit which may be granted to a participant for any volunteer service in
the City of Dania, Florida Fire Department under this section shall be four(4) years.
3. All credited service granted pursuant to this section shall count toward vesting. However,
the grant of credited service for periods of time spent as a volunteer fire fighter in the City of
Dania, Florida Fire Department shall not be used to exceed twenty-five (25) years of credited
service.
(4) CHANGE IN DESIGNATION OF BENEFICIARY. A member may from time to time
change his 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
benefit under the system shall cease.
(Ord. No. 132, § 2, 2-22-77; Ord. No. 20-85, § 5, 6-25-85; Ord. No. 18-90, § 3, 3-27-90; Ord.
No. 29-91, § 3, 9-10-91; Ord. No. 05-94, § 6, 4-26-94; Ord. No. 2000-024, § 5, 6-27-00)
Sec. 18-42. Benefit amounts and eligibility.
(1) NORMAL RETIREMENT DATE.
(a) A firefighter member's normal retirement date shall be coincident with or next following
the earlier of when he both attains his fifty-fifth birthday and completes eight (8) years of
continuous service or completes twenty-five (25) years of continuous service. Except as provided
herein, a member may retire on his normal retirement date or on the first day of any month
thereafter. Each member shall become one hundred (100) percent vested in his accrued
retirement benefit on his normal retirement date.
(b) A police member's normal retirement date shall be coincident with or next following the
earlier of when he both attains his fifty-fifth birthday and completes ten (10) years of continuous
service or completes twenty-five (25) years of continuous service. Except as provided herein, a
member may retire on his normal retirement date or on the first day of any month thereafter. Each
member shall become one hundred (100) percent vested in his accrued retirement benefit on his
normal retirement date.
(c) A member who has completed ten (10) or more years of continuous service may elect a
normal retirement date which is four (4) years earlier than otherwise provided for pursuant to
32 ORDINANCE#2009-010
EXHIBIT "A"
subsections (a) and(b) above, provided that the member pays the full actuarial cost thereof by his
or her payment of increased contributions, a lump sum payment or a diversion of his or her
payments from the deferred retirement option plan (DROP), or any combination thereof. The
member's payment must be completed prior to the normal retirement date or conclusion of
participation in the DROP, whichever occurs last. The number of earlier retirement years, when
combined with any credits purchased by a member pursuant to section 18-41(3)(c) or (d), shall
not exceed four(4).
(2) NORMAL RETIREMENT BENEFIT.
(a) Duration. A member retiring hereunder on or after the member's normal retirement date
shall receive a monthly benefit, which shall commence on the member's retirement date and be
continued thereafter as follows:
(i) Firefighter members: For ten (10) years certain and during the member's lifetime
thereafter.
(ii) Police officer members: For ten (10) years certain and during the member's lifetime
thereafter.
Other optional forms of payment providing death benefits shall also be available as specified
herein.
(b) Amount. The monthly retirement benefit for firefighter members retiring before October
1, 1989, and for police officers, deputy sheriffs and law enforcement members who retire before
October 1, 1991, shall equal two and one-half(2.5) percent of average monthly earnings for each
of the first thirty (30) years of continuous service and two (2.0) percent of average monthly
earnings for each year of continuous service in excess of thirty-seven and one-half(37.5) years,
subject in any event to a maximum of one hundred (100) percent of average monthly earnings.
The monthly retirement benefit for firefighter members retiring on or after October 1, 1989, and
for police officers, deputy sheriff and law enforcement members retiring on or after October 1,
1991, shall equal three (3.0) percent of average monthly earnings for each of the first twenty-five
(25) years of continuous service and two (2.0) percent of average monthly earnings for each year
of continuous service in excess of thirty-seven and one-half(37.5)years, subject in any event to a
maximum of one hundred (100) percent of average monthly earnings. The monthly retirement
benefit for firefighter members retiring on or after January 1, 1999, shall equal three (3) percent
of average monthly earnings for each of the first fifteen (15) years of continuous service and four
(4) percent of average monthly earnings for the each of the next ten (10) years of continuous
service and two (2) percent of average monthly earnings for each year of continuous service in
excess of thirty-seven and one-half (37.5) years subject in any event to a maximum of one
hundred (100)percent of average monthly earnings.
(c) Minimum benefit. For members who were also members of the prior policemen's or
firemen's retirement fund immediately preceding the effective date of this system, the normal
retirement benefit payable hereunder shall not be less in value than the actuarial equivalent of the
benefit which would have otherwise been payable under those prior funds, taking into
consideration the benefit formula, the definition of average monthly earnings, the normal
retirement age of sixty (60) and ten (10) years of continuous service, and the normal form of
benefit (fifteen (15) years certain and life), thereunder. Provided further, such members who
attain their fifty-fifth birthday and have ten (10) years of continuous service may elect to retire at
anytime thereafter and receive the benefit which would have been payable under the prior funds,
in lieu of any other benefits provided under this system.
33 ORDINANCE#2009-010
EXHIBIT "A"
(d) A police member who has completed ten (10) or more years of continuous service may
elect to receive a benefit equal to three (3) percent of average monthly earnings for up to four (4)
years of credited service. A firefighter member who has completed ten (10) years of continuous
service may elect to receive a benefit equal to three (3) percent of average monthly earnings for
up to four (4) years of credited service. The member shall pay the full actuarial cost of such
increased benefits. The member's payment must be completed prior to the normal retirement date
or conclusion of participation in the DROP,whichever occurs last.
(3) DISABILITY.
(a) Service incurred. Any member who receives a service-connected injury, disease or
disability, which injury, disease or disability permanently incapacitates the member, physically or
mentally from the member's regular and continuous duties as a firefighter or police officer shall
receive a monthly disability benefit equal to the greater of the member's accrued retirement
benefit or sixty-eight (68) percent of the member's average monthly earnings in effect as of the
date of disability for a disabled firefighter and the greater of the member's accrued retirement
benefit or sixty (60) percent of the member's average monthly earnings in effect as of the date of
disability for a disabled police officer. The disability shall be paid until recovery from disability
or if the member does not recover, death. An optional form of benefit, providing death benefits,
may be elected.
(b) Nonservice incurred. Any member with one (1) year of continuous service who receives a
nonservice connected injury, disease or disability, and which injury, disease or disability
permanently incapacitates him physically or mentally from gainful employment shall receive in
equal monthly installments a benefit of not less than the member's accrued retirement benefit or
twenty-five (25)percent of his/her average monthly earnings, as follows:
(1) With at least one year but less than two (2) years of continuous service: Forty percent
(40%) of the member's average monthly earnings in effect as of the date of disability.
(2) With at least two (2) years but less than three (3) years of continuous service: Forty-five
percent(45%) of the member's average monthly earnings in effect as of the date of disability.
(3) With at least three (3) years but less than four (4) years of continuous service: Fifty
percent(50%) of the member's average monthly earnings in effect as of the date of disability.
(4) With at least four (4) years but less than five (5) years of continuous service: Fifty-five
percent (55%) of the member's average monthly earnings in effect as of the date of disability.
(5) With five (5) or more years of continuous service: Sixty percent (60%) of the member's
average monthly earnings in effect as of the date of disability.
The benefit shall be payable only until recovery as determined by the board or ten (10) years
certain and death thereafter for firefighter members or death for police officer members.
(c) Determination of disability. All questions relating to eligibility for initial payment or
continuance of disability benefits shall be determined by the board of trustees, taking into
consideration the recommendations of the medical board, and based upon the methods and
procedures established by the board of trustees.
(d) Exclusions. Disability benefits shall not be payable in cases where the disability arose as
a result of the member's own willful intent or self-inflicted injury, intoxication, or use of
narcotics or other items considered to be dangerous drugs, or commission of a criminal act.
(e) Recovery. The board of trustees may require periodic examinations of members receiving
disability benefits. In the event of recovery from disability as determined by the board after such
a periodic examination, and reemployment by the city or sheriff as an employee, the period of
34 ORDINANCE#2009-010
EXHIBIT "A"
time while disabled shall not be included as continuous service. In the event of recovery, but
without reemployment as an employee, the member's future benefit shall be determined as
though the member initially terminated employment on the date of disability.
(4) PRERETIREMENT DEATH.
(a) Service incurred. A death benefit shall be payable on behalf of any member who dies as a
direct result of an occurrence arising in the performance of service, as follows:
(1) To the designated beneficiary, refund of the member's contributions or a monthly benefit,
for life, equal to the benefits otherwise payable to the member at early or normal retirement age
but not less than forty percent (40%) of the member's accrued benefit or average monthly
earnings, whichever is greater, plus,
(2) For each unmarried child until he or she shall have reached the age of eighteen (18) years,
and for each unmarried child from age eighteen (18) until age twenty-two (22) who is a full-time
student in a fully accredited high school, college or university, there shall be paid in equal
monthly installments, an amount equal to seven and one-half percent (7 1/2%) of the average
monthly earnings subject to an overall limitation of a total of seventy-five percent (75%) of
average monthly earnings for the spouse and children combined. The nonstudent child's pension
shall terminate on the earlier of death, marriage or the attainment of age eighteen (18); the
pension of a child who is a student shall terminate on the earlier of death, marriage or the
attainment of age twenty-two (22). Legally adopted children shall be eligible the same as natural
children.
Upon death of the designated beneficiary, the seven and one-half percent (7 1/2%) child
allowance shall be increased to fifteen percent (15%) for each child, not to exceed a combined
total of fifty percent (50%) of the member's average monthly earnings. The trusteeship and
disbursements of the pension to any child or children shall be determined by the board of
trustees.
(b) Nonservice incurred. If any member shall die while in active service as an employee of
the City of Dania or sheriff, but from causes not attributable to active duty or service, a death
benefit shall be payable as follows:
(1) With less than one year of continuous service--Refund of member's contributions.
(2) With one or more years of continuous service:
(i) To the designated beneficiary until death, a monthly benefit equal to the benefits
otherwise payable to the member at early or normal retirement age but not less than thirty-five
percent (35%) of the member's average monthly earnings,plus
(ii) To the designated beneficiary or children of such deceased member, the same benefits as
are payable by reason of service incurred death, subject however, to a maximum combined
limitation of monthly payments to the designated beneficiary and children of fifty percent (50%)
of average monthly earnings and thirty-five percent (35%) after death of the designated
beneficiary.
(c) Vested members:
(1) If a member with eight (8) or more years of continuous service should die while
employed by the city prior to reaching normal retirement age, the designated beneficiary shall
receive the benefit provided in paragraph (a) or (b) above until death. On the first day of the
month after the member would have reached normal retirement age and thereafter, the designated
beneficiary shall receive the greater of the benefit provided by paragraphs (a) or(b) above, or the
vested survivor benefit provided by paragraph (3), below.
35 ORDINANCE#2009-010 {
_ I
EXHIBIT "A"
(2) If a member with eight (8) or more years of continuous service has not withdrawn the
member's contributions from the fund and should die after terminating employment with the city
but before reaching normal retirement age, the designated beneficiary shall be entitled to any and
all benefits otherwise payable to the member at the member's early or normal retirement date or
may elect to receive the benefit provided in paragraph (3) below, payable on the first day of the
month after the member would have reached normal retirement age.
(3) Vested service benefit: On the first day of the month after the member would have
reached normal retirement age,the designated beneficiary shall receive monthly payments for life
equal to the same pension benefit that would have been payable to the designated beneficiary if
the member had survived to normal retirement age, had retired with a fifty (50) percent joint and
survivor annuity with service credits only for years of actual service, and had died on the first day
of the month after reaching normal retirement age.
(4) Vested members working past normal retirement age: The amount of the survivor benefit
for the designated beneficiary of a member who dies after reaching normal retirement age but
before receiving any other benefits from the system, shall be the greater of any of the benefits
provided by section 18-42(a), (b), (c)(1), or (c)(2) above, or the following, as elected by the
designated beneficiary,
(i) A one hundred (100) percent joint and survivor pension continuing for the life of the
designated beneficiary in the amount which the member would have received had the member
retired on the date of the member's death (having received payment for all earned wages and
unused accrued leave) having elected a one hundred (100) percent joint and survivor benefit, or
(ii) A ten-year certain and life thereafter pension continuing only for ten (10) years after the
member's death in the amount which the member would have received had the member retired on
the date of the member's death (having received payment for all unearned wages and unused
accrued leave) having elected a ten-year certain and life thereafter benefit.
(5) VESTING. If a member terminates his employment with the police or fire departments or
sheriff, either voluntarily or by lawful discharge, and is not eligible for any other benefits under
this system, he shall be entitled to the following:
(a) With less than eight (8) years of continuous service--Refund of accumulated
contributions.
(b) With eight (8) or more years of continuous service:
(1) The pension benefit accrued to his date of termination, payable commencing at his
otherwise earliest normal retirement date or, his early retirement date, provided he does not elect
to withdraw his accumulated contributions, and provided he survives to that normal retirement
date, or
(2) Refund of accumulated contributions.
Any member of this system who, for whatever reason, has his employment with the sheriff or city
as a police officer or firefighter terminated, but who remains with or was previously employed by
the city or sheriff in some other capacity so that his total period of employment with the city or
sheriff, or both combined, is eight (8) years or more, shall have all benefits accrued under this
system preserved, provided he does not elect to withdraw his accumulated contributions. Such
accrued benefits shall be payable at his otherwise normal retirement date, in accordance with the
provisions of this system. For purposes of determining normal retirement date under this vesting
provision, continuous service shall include all continuous employment as an employee as herein
defined as well as the period of time subsequent to termination as an actively employed and
36 ORDINANCE#2009-010
EXHIBIT "A"
contributing member of this system; provided further, however, that benefits shall not be payable
under this system during any period of continued employment by the city or the sheriff.
Forfeitures arising from terminations of employment shall serve only to reduce future city
contributions.
(6) COST OF LIVING ADJUSTMENTS.
(a) Annual cost of living adjustments. The monthly retirement benefits payable to all
participants retired as of April 1 of each year, commencing on April 1, 1995, shall be adjusted,
pursuant to procedures, methods and actuarial assumptions established by the board of trustees,
based upon the actuarial gain realized for the prior fiscal year ending as of September 30 and
based upon the percentage of such gain which is attributable to retirees as a percentage of the
total number of participants in the fund. All retired participants shall receive an equal percentage
of adjustment to their respective level of retirement benefits which shall in no event exceed the
percentage increase set forth in the Bureau of Labor Statistics Consumer Price Index, Urban
Consumers, All Cities, (CPI-U) for the preceding calendar year. If there was no actuarial gain for
the prior fiscal year,then there shall be no cost of living adjustment the following April 1 st.
(7) In no event may a member's annual benefit exceed the lesser of:
(a) Ninety thousand dollars ($90,000.00) (adjusted for cost of living in accordance with
Internal Revenue Code (IRC) Section 415(d), but only for the year in which such adjustment is
effective); or
(b) One hundred (100) percent of the average annual compensation for the member's three (3)
highest paid consecutive years; however, benefits of up to ten thousand dollars ($10,000.00) a
year can be paid without regard to the one hundred (100) percent limitation if the total retirement
benefits payable to a member under all defined benefit plans (as defined in IRC Section 1410))
maintained by the employer for the present and any prior year do not exceed ten thousand dollars
($10,000.00) and the employer has not at any time maintained a defined contribution plan (as
defined in IRC Section 414(i)) in which the employee was a member.
If the member has less than ten (10) years of service with the employer (as defined in IRC
Section 415(b)(5) and as modified by IRC Section 415(b)(6)(D)), the applicable limitation in
paragraph (a) or paragraph (b) of this subsection shall be reduced by multiplying such limitation
by a fraction, not to exceed one. The numerator of such fraction shall be the number of years, or
part thereof, of service with the employer; the denominator shall be ten (10) years.
For purposes of this subsection, the "annual benefit" means a benefit payable annually in the
form of a straight life annuity with no ancillary or incidental benefits and with no member or
rollover contributions. To the extent that ancillary benefits are provided, the limits set forth in
paragraphs (a) and (b) above will be reduced actuarially, using an interest rate assumption equal
to the greater of five (5) percent or the interest rate used in the most recent annual actuarial
valuation, to reflect such ancillary benefits.
If distribution of retirement benefits begins before age sixty-two (62), the dollar limitation as
described in paragraph (a) shall be reduced actuarially using an interest rate assumption equal to
the greater of five (5) percent or the interest rate used in the most recent annual actuarial
valuation; however, retirement benefits shall not be reduced below seventy-five thousand dollars
($75,000.00) if payment of benefits begins at or after age fifty-five (55) and not below the
actuarial equivalent of seventy-five thousand dollars ($75,000.00) if payment of benefits begins
before age fifty-five (55). If retirement benefits begin after age sixty-five (65), the dollar
37 ORDMANCE#2009-010
EXHIBIT "A"
limitation of paragraph (a) shall be increased actuarially using an interest assumption equal to the
lesser of five (5) percent or the interest rate used in the most recent annual actuarial valuation.
For purposes of this subsection, the "average annual compensation for a member's three (3)
highest paid consecutive years" shall mean the member's greatest aggregate compensation during
the period of three (3) consecutive years in which the individual was an active member of the
plan.
Defined contribution plan limits of IRC Section 415(c) and regulations thereunder, and combined
plan limits of IRC Section 415(e) and regulations thereunder, are hereby incorporated by
reference to the extent that such provisions may apply to this plan.
If, as a result of this allocation of forfeitures, a reasonable error in estimating a member's
compensation or other facts and circumstances to which regulation 1.415-6(b)(6) shall be
applicable, the annual additions under this plan would cause the maximum annual additions to bd
exceeded for any member, the administrator shall (1) return any employee contributions credited
for the "limitation year" to the extent that the return would reduce the excess amount in the
member's accounts; (2) hold any "excess amount" remaining after the return of any employee
contributions in a "Section 415 suspense account"; (3) use the "Section 415 suspense account" in
the next limitation year (and succeeding limitation years if necessary) to reduce employer
contributions for that member if that member is covered by the plan as of the end of the
limitation year, or (4) reduce employer contributions to the plan for such limitation year by the
amount of the "Section 415 suspense account" allocated and reallocated during such "limitation
year.,,
For purposes of this section, "excess amount" for any member for a limitation year shall mean the
excess, if any, of(1) the annual additions which would be credited to his account under the terms
of the plan without regard to the limitations of IRC Section 415 or (2) the maximum annual
additions determined pursuant to the previous paragraph.
For purposes of this section, "Section 415 suspense account" shall mean an unallocated account
equal to the sum of"excess amounts" for all members in the plan during the limitation year. The
"Section 415 suspense account" shall not share in any earnings or losses of the fund.
(8) EARLY RETIREMENT BENEFIT.
(a) Early retirement date. A member's early retirement date shall be the first day of the month
coincident with or next following the earlier of when the member completes twenty (20) years of
continuous service or both attains fifty (50) years of age and completes eight (8) years of
continuous service.
(b) Early retirement benefit. A member retiring hereunder on or after his early retirement date
but before his normal retirement date shall receive the monthly benefit level provided in section
18-42(2)(b) actuarially reduced to take into account the member's younger age and the earlier
commencement of retirement income payments provided that said reduction shall not exceed
three (3) percent for each year by which the member is younger than the normal retirement age
for said member on the effective date of his or her early retirement. The early retirement benefit
shall commence on his early retirement date and be continued thereafter during his lifetime,
ceasing upon death. Other optional forms of payment providing survivor benefits shall also be
available as specified herein.
(9) DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS.
(a) General. This subsection applies to distributions made on or after January 1, 1993.
Notwithstanding any provision of the plan to the contrary that would otherwise limit a
38 ORDINANCE 42009-010
EXHIBIT "A"
distributee's election under this subsection, a distributee may elect, at the time and in the manner
prescribed by the board, to have any portion of an eligible rollover distribution paid directly to an
eligible retirement plan specified by the distributee in a direct rollover.
(b) Definitions.
1. Eligible rollover distribution: An eligible rollover distribution is any distribution of all or
any portion of the balance to the credit of the distributee, except that an eligible rollover
distribution does not include: any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for the life (or life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period of ten (10) years or more; any distribution to the
extent such distribution is required under Section 401(a)(9) of the Code; and the portion of any
distribution that is not includable in gross income.
2. Eligible retirement plan: An eligible retirement plan is an individual retirement account
described in Section 408(a) of the Code, an individual retirement annuity described in Section
408(b) of the Code, and annuity plan described in Section 403(a) of the Code, or a qualified trust
described in Section 401(a) of the Code that accepts the distributee's eligible rollover
distribution. However, in the case of an eligible rollover distribution to the surviving spouse, an
eligible retirement plan is an individual retirement account or individual retirement annuity.
3. Distributee: A distributee includes an employee or former employee. In addition, the
employee's or former employee's surviving spouse is a distributee with regard to the interest of
the spouse.
4. Direct rollover: A direct rollover is a payment by the plan to the eligible retirement plan
specified by the distributee.
(10) FUTURE BENEFIT RESERVE AND HEALTH INSURANCE SUBSIDY. All
firefighter retirees and firefighter survivors receiving benefits shall be eligible for an annual
health insurance subsidy computed as follows. Seventy-five (75) percent of the prior year's
actuarial gain allocable to firefighters, firefighter retirees and firefighter survivors remaining after
the application of section 18-42(6)(a) plus seventy-five (75) percent of any increase in the
percentage of covered payroll received by the city pursuant to Section 175.121, Florida Statutes,
over the amount received by the city in 1997 shall be defined as the "available actuarial gain."
The available actuarial gain for a fiscal year shall be calculated by the following June 1 and shall
be paid in the following October to the City of Dania Beach to be utilized per capita to subsidize
up to one (1) year's payments for retiree health insurance due from each firefighter retiree and
firefighter survivor who receives benefits from the system, which payments shall be one-third (
1/3) of the premium cost for such insurance. Should the available actuarial gain not be fully
expended by this health insurance subsidy, then the balance of actuarial gain shall be paid to the
City of Dania Beach to subsidize the City of Dania Beach's cost of providing one (1) year of
retiree health insurance to such firefighter retirees and survivors, which cost shall be two-thirds (
2/3) of the premium cost for such insurance. Premium costs shall be determined in accordance
with Section 112.0801, Florida Statutes. Should the available actuarial gain not be fully
expended by this subsidy to the city, then the balance, together with any unexpended available
actuarial gain from prior years, shall be accrued by the retirement system in a "future benefit
reserve account" which shall be used only to pay the full cost of additional future benefits to the
system's firefighter retirees and survivors, the determination and payment of which are hereby
delegated by he city commission to the board of trustees in its sole discretion. DROP
39 ORDINANCE#2009-010
EXHIBIT "A"
participants shall receive credit for any such future benefits paid while participating in the DROP
but not for the health insurance subsidy.
(11) SUPPLEMENTAL RETIREMENT BENEFIT: All police officer members, in addition
to all other benefits provided in this article, are to be provided an annual supplemental retirement
benefit. Entitlement to such supplemental retirement benefit shall be determined annually based
upon the receipt by the fund of any "additional premium tax revenues," as defined in F.S. §
185.35(1)(b). Payment of such supplemental retirement benefit shall be made annually to each
police officer member (defined for this subsection only as a retiree, survivor benefit recipient,
disability benefit recipient or vested terminated and DROP participant) no later than the first of
December after receipt of the "additional premium tax revenues" from the state, beginning with
the year 2005, provided that it has been confirmed in writing that the member is alive on such
date. The amount of such supplemental retirement benefit shall be equal to the quotient of the
total amount of all "additional premium tax revenues" received by the fund during that calendar
year (regardless of the year to which the revenues relate), divided by the number of members.
Such supplemental retirement benefit shall be added to the next monthly benefit payment or paid
separately as the trustees may from time to time decide.
(Ord. No. 132, § 3, 2-22-77; Ord. No. 153, §§ 1--3, 8-23-77; Ord. No. 215, § 1, 7-10-79; Ord.
No. 20-85, §§ 1-4, 6-25-85; Ord. No. 72-88, §§ 3--6, 11-22-88; Ord. No. 18-90, § 1, 3-27-90;
Ord. No. 4-91, §§ 3, 4, 2-13-91; Ord. No. 29-91, §§ 1, 5--7, 9-10-91; Ord. No. 31-91, §§ 1--3, 9-
11-91; Ord. No. 05-94, §§ 1, 2, 4, 8, 9, 11, 12, 4-26-94; Ord. No. 05-95, §§ 1, 2, 5-23-95; Ord.
No. 07-96, §§ 1, 2, 6-25-96; Ord. No. 21-98, §§ 1, 2, 11-24-98; Ord. No. 2000-024, §§ 6--10, 6-
27-00; Ord. No. 2002-008, §§ 1-4, 2-26-02; Ord. No. 2006-005, § 3,2-28-06)
Sec. 18-43. Optional forms of benefits.
(a) Each member entitled to a normal, service-connected disability, non-service-connected
disability, or vested retirement benefit, shall have the right at any time prior to the date on which
benefit payments begin to elect to have his benefit payable under any one of the options
hereinafter set forth in lieu of the benefits otherwise provided herein, and to revoke any such
elections and make a new election at any time prior to the 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 at least equal to fifty
(50) percent of the total present value of payments to the retiring member and his 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
modified benefit, which shall include but not be limited to the provisions of Sections 175.171
and 185.161, of the Florida Statutes, during the member's lifetime and have such benefit (or a
designated fraction thereof) continued after the member's death to and during the lifetime of the
member's designated joint pensioner or beneficiary. The election of Option 1 shall be null and
void if the designated beneficiary dies before the member's benefit payments commence.
OPTION 2--As follows:
Police officer members: 10 YEARS CERTAIN AND LIFE THEREAFTER. The member may
elect to receive a benefit with one hundred twenty (120) monthly payments guaranteed. If, after
payments commence, the member should die before said one hundred twenty (120) monthly
payments are made, payments are then continued to his designated beneficiary until one hundred
twenty (120) payment.; in all have been made, at which time benefits cease. After expiration of
40 ORDINANCE#2009-010
EXHIBIT "A"
the one hundred twenty (120) monthly payments guaranteed, should the retired member be then
alive,payments shall be continued during his remaining lifetime.
Firefighter members: MEMBER'S LIFETIME ONLY. The member may elect to receive an
increased benefit during the member's lifetime only.
OPTION 3--OTHER. In lieu of the other optional forms enumerated in this section, benefits may
be paid in any form approved by the board so long as actuarial equivalence with the benefits
otherwise payable is maintained.
(b) Deferred retirement option plan. A member may enter into the deferred retirement option
plan (DROP), which plan is to be created and administered by the board of trustees of the fund
on the first day of any month following the completion of at least twenty-five (25), but less than
thirty (30) years of credited service. The maximum duration of participation in the DROP shall
be the number of years which, when added to the number of years of all creditable service which
the member has in the Retirement System, equals a total of thirty-two (32) years, or for a
participant who is the head of a city department equals thirty-two and one-half(32 1/2) years. In
any case the total participation in the DROP shall not exceed seven (7) years or seven and one-
half(7.5) years for a department head, and participation will end if the employee resigns, dies or
is terminated for just cause.
A member may participate in the plan only once and after commencement in the DROP he or she
shall never have the right to be a contributing member of the retirement system again.
Upon the effective date of the commencement of participation in the deferred retirement option
plan, membership in the system shall terminate and neither the employee nor employer
contributions shall be payable.
The member contributions to the system, including those picked up by the city, shall cease and
instead of being paid to the system, shall be paid to the employee. For purposes of this section,
average monthly earnings and creditable service shall remain as they existed on the effective date
of commencement of participation in the DROP. The monthly retirement benefits that would
have been payable,had the member elected to cease employment and receive a service retirement
allowance, shall be credited to a deferred retirement option account.
The deferred retirement option plan account shall, unless a member elects a self-directed DROP,
earn interest at a rate set quarterly by the board of trustees. Such interest shall be equal to the
system's net rate of investment return for the year and shall be credited to each individual account
balance in the account on a quarterly basis.
Effective January 1, 1999, the DROP account shall not be subject to any fees, charges, etc., of
any kind for any purpose.
If a member or DROP participant elects a self-directed DROP, then the investments, any returns
thereon, and the fees for administering the self-directed DROP shall be in accordance with the
self-directed DROP options selected by the member or DROP participant. Neither the city, the
retirement system nor the system's Board of Trustees shall have any responsibility or liability for
any of the options selected by the member or DROP participant.
Members electing a self-directed DROP must do so by the following deadlines:
(a) For DROP participants as of December 31, 1999, who do not owe balances for military
service credit, early normal retirement date, or DROP loans: March 1, 2000.
(b) For DROP participants who owe balances for military service credit, early normal
retirement date or DROP loans: Thirty (30) days after payment of the balances due.
41 ORDINANCE#2009-010
EXHIBIT "A"
Upon termination of employment, a participant in the program shall receive, at his or her option,
a lump sum payment from the account equal to the payments to the account, plus earned interest,
or an annuity based upon his or her account, or the participant may elect any other method of
payment if approved by the board of trustees. The monthly benefits that were being paid into the
fund during the period of participation shall begin being paid to the retiree.
If a participant dies during the period of participation in the DROP, a lump sum payment equal to
his or her account balance shall be paid to the participant's named beneficiary or, if none, to his
or her estate; in addition, any survivor benefits selected by the participant shall be payable.
If employment is not terminated at the end of the period specified for participation in the DROP,
payments into the account shall cease and no further interest shall be earned or credited to the
individual account in the fund for the duration of employment. The amount in the DROP account
shall not be payable to the individual until he or she terminates employment.
If an employee dies after the period of participation in the plan but while still an employee, a
lump sum payment equal to his or her account balance shall be paid to the employee's named
beneficiary or, if none, to his or her estate, in addition, any survivor benefits selected by the
participant shall be payable.
A member will no longer be required to make contributions to the plan or, at his option, may be
permitted to make reduced contributions to the plan, and his retirement benefits will accrue to his
benefit through a separate fund administered by the board of trustees. Members electing to
participate in the DROP plan whose contributions to the retirement system are either
discontinued or reduced shall receive a return of any contributions made to the retirement system
on their behalf after the commencement of their participation in the DROP plan or, at the
member's option, said contributions shall be deposited into the separate fund administered by the
board of trustees. The DROP plan to be created and administered by the board of trustees must
be created and administered in such a way as to not increase the city's contributions to the
retirement system.
(Ord. No. 132, § 4, 2-22-77; Ord. No. 29-91, § 8, 9-10-91; Ord. No. 31-91, § 4, 9-11-91; Ord.
No. 05-94, § 3, 4-26-94; Ord. No. 21-98, § 4, 11-24-98; Ord. No. 2000-008, § 1,2-22-2000; Ord.
No. 2000-024, § 11, 6-27-00; Ord.No. 2002-008, §§ 5, 6, 2-26-02)
Sec. 18-44. Contributions.
(1) MEMBER CONTRIBUTIONS.
(a) Amount. All police members of the retirement system shall make regular contributions to
the fund at a rate equal to seven (7) percent of their respective earnings. All firefighter members
of the retirement system shall make regular contributions to the fund at the following rates based
upon their respective earnings:
Prior to October 1, 1989 . . . 7%
October 1, 1989 to September 30, 1990 . . . 8.82%
October 1, 1990 to September 30, 1991 . . . 13.42%
October 1, 1991 and thereafter . . . 18.14%
October 1, 1999 and thereafter . . . 24.6%
The increases in contributions commencing October 1, 1989, shall be used exclusively to fund
the increased cost of any increases in firefighter benefit levels adopted after that date and cannot
be used to fund the benefit levels in existence before October 1, 1989. For firefighter members
hired prior to October 1, 2001, two (2) percent of each employee's earnings shall be deducted
42 ORDINANCE#2009-010
EXHIBIT "A"
from the employee's earnings; for firefighter members hired after September 30, 2001, this
amount shall be six point four-six (6.46) percent. The remainder of the firefighter member
employee contributions shall be paid and assumed by the City of Dania Beach in lieu of payroll
deductions from firefighter members' earnings. For police members, all employee contributions
shall be paid and assumed by the City of Dania in lieu of payroll deductions from police
members' earnings provided that the total of such police employee contributions paid by the City
of Dania plus the employer contribution for police members made pursuant to section 18-44(3)
hereof shall not exceed the amount which the Sheriff of Broward County would have paid on
behalf of said police members had they elected to join the Florida Retirement System. Should the
total employer and employee contribution rate for police members for any year exceed the
prevailing contribution rate to the Florida Retirement System for that year, the difference shall be
paid by the police members by payroll deduction from each employee's Broward Sheriffs
Department earnings. The city and each police officer participant shall enter into a written
contract providing for their respective obligations and rights as provided herein. No members
shall have the option of choosing to receive the contributed amounts directly instead of having
them paid by the city directly to the system. All such employee contributions picked up by the
city shall be deemed and considered as part of the members' accumulated contributions and as
earnings for the purposes of calculating average monthly earnings. The employee contributions
picked up by the city shall be added to the members' earnings for the purpose of calculating
average monthly earnings; however, for firefighter members entering the DROP after December
31, 1998, this amount shall be twenty-two and six-tenths (22.6) percent of the amounts earned
after December 31, 1998. This city "pick up" of contributions is intended to comply with Section
414(h)(2) of the Internal Revenue Code, the employee contributions of police and firefighter
members shall be computed and accounted for separately. Such employee contributions shall be
deposited each pay period into the trust fund comprising part of this system.
(b) Duration. Contributions which are deducted from employee's earnings shall be deducted
from said earnings before the same are paid and together with those employee contributions
which are "picked up" and paid by the city shall continue until the member has reached his
normal retirement date or his maximum retirement benefit level, whichever occurs first, after
which the employee contributions shall cease and the picked up contributions shall be paid
directly to the employee as part of the employee's wages.
(c) Extended contributions. A member whose contributions would otherwise cease due to his
accrual of the benefit level of seventy-five (75) percent for police participants and eighty-five
(85) percent for firefighter participants and whose benefit would therefor be fixed in amount as
of that date regardless of future changes in earnings, may elect to continue making contributions,
but only based on future earnings increases arising from increases in the regular and overtime
rates of pay. Such election shall be irrevocable; for those so electing, average monthly earnings
shall be determined as of actual date of retirement, disability, death or other termination as an
employee.
(d) Interest. Interest shall be credited to member contributions at the rate of four (4) percent
per annum, on an annual interest crediting date to be established by the board. As of each such
date, the amount of interest to be credited shall equal four (4) percent of each member's
accumulated contributions as of the most recent prior crediting date.
43 ORDINANCE 92009-010
EXHIBIT "A"
(e) Guaranteed refund. All benefits payable under this system 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 at least equal in total amount to his accumulated contributions.
(2) STATE CONTRIBUTIONS. Any monies received by reason of laws of the State of
Florida, for the express purpose of funding and paying for retirement benefits for police officers
and firefighters of the city or sheriff shall be deposited immediately, and in no event more than
five (5) days after receipt thereof, into the trust fund comprising part of this system.
(3) EMPLOYER CONTRIBUTIONS. So long as this system is in effect, the city, on behalf
of members who are city employees, and the sheriff, on behalf of members who are sheriffs
employees, shall make an annual contribution, payable at least quarterly, to the trust fund in an
amount equal to the difference in each year as between the total of aggregate member
contributions for the year plus state contributions for the year and the total cost for the year as
shown by the most recent actuarial valuation and report for the system. The total costs for any
year shall be defined as the total or normal cost plus the additional amount sufficient to amortize
the unfunded accrued past service liability over a forty-year period commencing with the fiscal
year in which the effective date of this system occurs and over a thirty-year period for all
improvements to the system thereafter. The amount of the sheriffs contribution shall be subject
to the limitations of subsection (5) of this section. The employee contributions for police and
firefighter members shall be computed and accounted for separately for each group of members.
(4) OTHER. Private donations, gifts and contributions may be deposited to the fund, but such
deposits must be accounted for separately and kept on a segregated bookkeeping basis. Funds
arising from these sources may be used only for additional benefits for members, as determined
by the board, and may not be used to reduce what would have otherwise been required city
contributions.
(5) SHERIFF CONTRIBUTIONS. The member contributions on behalf of members
employed by the sheriff shall be paid on said members' behalf by the sheriff but shall be regarded
for all other purposes hereunder as "member contributions." The total member and employer
annual contributions paid to the system by the sheriff shall not exceed the amount of
contributions (including health insurance supplement contributions), expressed as a percent age
of wages, which were payable by the sheriff during the same annual period to the Florida
Retirement System on behalf of the sheriffs deputy sheriffs and law enforcement officers
covered by the Florida Retirement System. Should the maximum contributions paid to this
system by the sheriff be less than the amount required by subsection (3) hereof, the difference
shall be paid to by the trust fund by the city.
(6) The plan shall meet the nondiscrimination test set forth in IRC Section 401(m)(2)(A).
Applicable provisions of IRC Section 401(m) and regulations thereunder are hereby incorporated
by reference. In accordance with regulation 1.401(m)-1(e)(1)(i), the plan shall limit employee
contributions in a manner that prevents excess aggregate contributions from being made.
(Ord. No. 132, § 5, 2-22-77; Ord. No. 20-85, § 5, 6-25-88; Ord. No. 72-88, §§ 7--9, 11-22-88;
Ord. No. 18-90, § 2, 3-27-90; Ord. No. 03-91, § 1, 2-13-91; Ord. No. 04-91, §§ 5, 6, 2-13-91;
Ord. No. 29-91, §§ 2, 4, 9-10-91; Ord. No. 40-91, § 1, 11-26-91; Ord. No. 05-94, § 10, 4-26-94;
Ord. No. 21-98, §§ 3, 5, 11-24-98; Ord. No. 2000-024, §§ 12, 13, 6-27-00)
Sec. 18-45. Termination of contributions on retirement date.
(a) Firemen. A fireman's contributions to the plan shall cease upon his actual retirement date.
The provision shall be effective as of July 1, 1976.
44 ORDINANCE#2009-010
EXHIBIT "A"
(b) Policemen. A policeman's contributions to the plan shall cease upon his actual retirement
date. This provision shall be effective as of July 1, 1976.
(Ord. No. 129, § 1, 2-22-77; Ord. No. 131, § 1, 2-22-77)
Sec. 18-46. Administration.
(1) The general administration and responsibility for the proper operation of the retirement
system and for making effective the provisions of this article are hereby vested in a board of
trustees consisting of nine (9) persons as follows:
(a) Four (4) legal residents of the city appointed by the city commission;
(b) Two (2) active firefighters, or firefighters who are in the DROP, elected by a majority of
the firefighters who are members of the system, as hereinafter provided;
(c) Two (2) police officers, or police officers who are in the DROP, elected by a majority of
the police officers who are members of the system or a retired member when active police officer
membership falls below ten (10), elected by a majority of the police officers, active or refired
who are members of the system, as hereinafter provided; and
(d) A ninth person chosen by a majority of the previous eight (8) members of the board of
trustees. The name of the ninth period shall be submitted to the city commission which shall, as a
ministerial duty, appoint him to the board.
(2) Each resident member shall serve for a period of two (2) years, unless sooner replaced by
the city commission at whose pleasure he shall serve, and may succeed himself in office. Each
member elected by other members of the system shall serve for a period of two (2) years, unless
he sooner leaves the employment of the city as a firefighter or police officer, whereupon the city
commission shall choose his successor in the same manner as an original appointment. Each
firefighter and police officer member may succeed himself in office. The ninth member of the
board shall have the same rights as each of the other eight (8) members and may succeed himself
in office.
(3) The elective employee trustee shall be elected in the following manner, to wit: By vote of
all actively employed members of each of said respective departments who come within the
purview of this article at meetings to be held at places designated by the board, of which
meetings all qualified members entitled to vote shall be notified in person or by written notice ten
(10) days in advance of said meeting when the active police officer membership falls below ten
(10), both active and retired members shall be eligible to vote. The candidate receiving the
highest number of votes for each office shall be declared elected and shall take office
immediately upon commencement of the term of office for which elected or as soon thereafter as
he shall qualify therefor. An election shall be held not more than thirty (30) and not less than ten
(10) days prior to the commencement of the terms for which trustees are to be elected. However,
if there are no active or retired members remaining in the system or capable of serving, the
remaining board members may elect an individual to serve in the trustee position, who the city
commission shall, as a ministerial duty, appoint to the board of trustees.The board shall establish
and administer the election procedure for each election. The board shall by majority vote elect
from its members a chairman, vice chairman and a secretary. The secretary shall keep a complete
minute book of the actions, proceedings or hearings of the board. The board shall meet at least
once during each calendar quarter of each year. The secretary shall perform all duties as required
in Sections 175.071 and 185.06 of the Florida Statutes.
(4) If a vacancy occurs in the office of trustee, the vacancy shall be filled for the unexpired
term in the same manner as the office was previously filled.
45 ORDINANCE#2009-010
EXHIBIT "A"
(5) The trustees shall serve without compensation, but they may be reimbursed from the fund
for all necessary expenses which they may actually expend through service on the board in
accordance with Section 112.061, Florida Statutes.
(6) Each trustee shall, within ten (10) days after his appointment or election, take an oath of
office before the city clerk of the city, that so far as it develops upon him he will diligently and
honestly administer the affairs of the said board, and that he will not knowingly violate or
willingly permit to be violated any of the provisions of the law applicable to the retirement
system. Such oath shall be subscribed to by the members making it and certified by the said clerk
and filed in the office of the city clerk.
(7) Each trustee shall be entitled to one vote on the board. Five (5) affirmative votes shall be
necessary for a decision by the trustees at any meeting of the board. The chairman shall have the
right to one vote only.
(8) Subject to the limitations of this article, the board of trustees shall from time to time
establish uniform rules and regulations for the administration of funds created by this article and
for transactions of its business, including provisions for expulsion due to nonattendance of its
members which could result in a vacancy.
(9) The board of trustees shall engage such actuarial and other services as shall be required to
transact the business of the retirement system. 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
system shall be paid 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.
(10) The duties and responsibilities of the board of trustees shall include, but not necessarily
be limited by, the following:
(a) To construe the provisions of the system and determine all questions arising thereunder.
(b) To determine all questions relating to eligibility and participation.
(c) To determine and certify amount of all retirement allowances or other benefits hereunder.
(d) To establish uniform rules and procedures to be followed for administrative purposes,
benefit applications and all matters required to administer the system.
(e) To distribute at regular intervals to employees, information concerning the system.
(f) To receive and process all applications for participation and benefits.
(g) To authorize all payments whatsoever from the fund, and to notify the disbursing agent,
in writing, of approved benefit payments and other expenditures arising through operation of the
system and fund.
(h) To have performed actuarial studies and annual actuarial valuations, and make
recommendations regarding any and all changes in the provisions of the system.
(i) To perform such other duties as are specified in this article.
(11) The board of trustees shall engage such legal, investment monitoring, actuarial and other
professional services as shall be required to transact the business of the retirement system. The
compensation of all persons or first so engaged by the board of trustees shall be paid 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.
(12) The board of trustees shall purchase such errors and omissions, fiduciary liability,
worker's compensation, general liability, and other insurance coverage as shall be deemed
46 ORDINANCE#2009-010
EXHIBIT "A"
appropriate, in the trustees' sole discretion, to protect and insure the system, its assets and the
trustees. The premiums for all such insurance coverage shall be paid 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.
(Ord. No. 132, § 6, 2-22-77; Ord. No. 02-87, §§ 1-4, 1-27-87; Ord. No. 05-94, § 5, 4-26-94;
Ord. No. 2000-024, §§ 14-47, 6-27-00; Ord. No. 2002-038, §§ 1, 2, 8-27-02; Ord. No. 2004-
013, § 1, 4-13-04; Ord.No. 2008-006, § 1, 2-26-08)
Sec. 18-47. Finances and fund management; establishment and operation of fund.
(1) As part of the system there is hereby established the fund, into which shall be deposited
all of the contributions and assets whatsoever attributable to the system, including the assets of
the two (2)prior policemen's and firemen's retirement funds.
(2) The actual custody and supervision of the fund (and assets thereof) shall be vested in the
board of trustees. Payment of benefits and disbursements from the fund shall be made by the
disbursing agent on authorization from the board.
(3) The board shall be required to appoint a national or state bank or a federal or state savings
and loan association with trust powers for the purpose of serving as custodian of the fund and all
assets of the fund shall be promptly and continually deposited therewith. In order to fulfill its
investment responsibilities as set forth herein, the board shall be required to retain the services of
the custodian bank or savings and loan association, an investment advisor registered under
Investment Advisors Act of 1940, an insurance company, or a combination of these, for purposes
of investment decisions and management. Such investment manager shall have full discretion,
within any broad guidelines prescribed by the board and the city, in the investment of all fund
assets. General guidelines may be adopted by the board, but if so shall also be subject to approval
by resolution of the city commission; in the absence of commission approval, such guidelines
shall not be applicable.
(4) All funds and securities of the system may be commingled in the fund, provided that
accurate records are maintained at all times reflecting the financial composition of the fund,
including accurate current accounts and entries as regards the following:
(a) Current amounts of accumulated contributions of members on both an individual and
aggregate account basis, and
(b) Receipts and disbursements, and
(c) Benefit payments, and
(d) Current amounts clearly reflecting all monies, funds and assets whatsoever attributable to
contributions and deposits from the city, and
(e) All interest,dividends and gains (or losses) whatsoever, and
(f) Such other entries as may be properly required so as to reflect a clear and complete
financial report of the fund.
(5) An annual certified audit and report shall be performed by an accounting firm chosen by
the board. Such report shall reflect a complete valuation of assets on both a cost and marked
basis, as well as other items normally included in a certified audit.
(6) The board of trustees shall have the following investment powers and authority:
(a) The board of trustees shall be vested with full legal title to said fund, subject however,
and in any event to the authority and power of the city commission to amend or terminate this
47 ORMNANCE#2009-010
EXHIBIT "A"
trust, provided that no amendment or fund termination shall ever result in the use of any assets of
this fund except for the payment of regular expenses and benefits under this system. All
contributions from time to time paid into the fund, and the 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.
(b) Within the restrictions and requirements contained in Sections 175.071 and 185.06,
Florida Statutes, 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.
(c) 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 system.
(d) 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.
(e) The board shall cause any investment in securities held by it to be registered in or
transferred into its name as trustee or into the name of the custodian's nominee as it may direct,
or the custodians 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 trustee fund.
(f) 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,
recapitalizations, consolidations, and similar transactions with respect to such securities; to
deposit such stock or other securities in any voting trust or any protective or like committee or
with the trustees or with depositaries designated thereby; to amortize or fail to amortize any part
or all of the premium or discount resulting from the acquisition or disposition of assets; and
generally, to exercise any of the powers of an owner with respect to stocks, bonds or other
investments, comprising the fund which it may deem to be to the best interest of the fund to
exercise.
(g) 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.
(h) Where any action which the board is required to take or any duty or function which it is
required to perform either under the terms herein or under the general law applicable to it as
trustee under this article, can reasonably be taken or performed only after receipt by it from a
member, the city or any other entity of specific information, certification, 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.
(i) Any overpayments or underpayments from the fund to a member or beneficiary caused by
errors of computation shall be adjusted with interest at a rate per annum approved by the board.
Overpayment shall be charged against payments next succeeding the correction. Underpayments
shall be made up from the trust fund.
0) The board shall sustain no liability whatsoever for the sufficiency of the fund to meet the
payments and benefits herein provided for.
(k) 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
48 ORDINANCE#2009-010
EXHIBIT "A"
entitled to any notice of service or process. Any judgment entered in such a proceeding or action
shall be conclusive upon all persons.
(7) 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
maintain continuous supervision over the acts of any such agent; provided further, that legal title
to said fund shall always remain with the board of trustees.
(Ord. No. 132, § 7, 2-22-77; Ord. No. 175, § 1, 6-13-78; Ord. No. 198, § 1, 11-14-78; Ord. No.
57-88, § 1, 10-11-88; Ord. No. 2000-024, § 18, 6-27-00)
Sec. 18-48. Repeal, modification or termination of system.
(1) This article 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 article or any subsequent ordinance shall be amended or repealed in its application to
any member or beneficiary benefiting hereunder, the amount of benefits which at the time of any
such alteration, amendment, or repeal shall have accrued to such person shall not be affected
thereby, except as set forth herein.
(2) If this article shall be repealed, or upon written notice to the board by the city that
contributions to the system are discontinued, the board shall continue to administer the system in
accordance with the provisions of this article, for the sole benefit of the then members, any
beneficiaries then receiving retirement allowances, and any future persons entitled to receive
benefits under one of the options provided for in this article 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 (1000 percent of benefits accrued to date of repeal or discontinuance of
contributions and the fund shall be apportioned and distributed in accordance with the following
procedures:
(a) The board shall determine the date of distribution and the asset value to be distributed,
after taking into account the expenses of such distribution.
(b) The board shall determine the method of distribution of the asset value, that is, whether
distribution shall be by payment in cash, the maintenance of another or substituted trust fund, by
the purchase of insured annuities or otherwise, for each police officer and fireman entitled to
benefits under the system, as specified in(c)below.
(c) The board shall apportion the asset value as of the date of termination or discontinuance
of contributions in the manner set forth below, on the basis that the amount required to provide
any given retirement income shall mean the actuarially computed single-sum value of such
retirement income, except that if the method of distribution determined under (b) above involves
the purchase of an insured annuity, the amount required to provide the given retirement income
shall mean the single premium payable for such annuity.
(i) Apportionment shall first be made in respect of each retired police officer and fireman
receiving a retirement income hereunder on such date, each person receiving a retirement income
on such date on account of a retired (but since deceased) police officer or fireman, and each
police officer and fireman who has, by such date, become eligible for normal retirement but has
not yet retired, in the amount required to provide such retirement income, provided, that if such
asset value be less than the aggregate of such amounts such amounts shall be proportionately
reduced so that the aggregate of such reduced amounts will be equal to such asset value.
(ii) If there be any asset value remaining after the apportionment under subparagraph (i),
apportionment shall next be made in respect of each police officer and fireman in the service of
49 ORDINANCE#2009-010
EXHIBIT "A"
the city on such date who has completed at least ten (10) years of credited service and who has
contributed to this system or its predecessor, policemen's retirement fund or firemen's retirement
fund for at least ten (10) years and who is not entitled to an apportionment under subparagraph
(i), in the amount required to provide the actuarial equivalent of the accrued normal retirement
income, based on the police officers or fireman's credited service and earnings to such date, and
each former participant then entitled to a benefit under the provisions of section 18-42,paragraph
(5)(b), who has not, by such date, reached his normal retirement date, in the amount required to
provide the actuarial equivalent of the accrued normal retirement income to which he is entitled
under section 18-42, paragraph (5)(b)provided that, if such remaining asset value be less than the
aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately
reduced so that the aggregate of such reduced amounts will be equal to such remaining asset
value.
(iii) If there be an asset value after the apportionments under subparagraphs (i) and (ii)
apportionment shall lastly be made in respect of each police officer and fireman in the service of
the city on such date who is not entitled to an apportionment under subparagraphs (i) and (ii) in
the amount equal to his accumulated contributions to the plan to date of termination or
discontinuance of contributions, provided, that if such remaining asset value be less than the
aggregate of the amounts apportioned hereunder such latter amounts shall be proportionately
reduced so that the aggregate of such reduced amounts will be equal to such remaining asset
value.
(iv) In the event that there be asset value remaining after the full apportionment specified in
(i), (ii) and (iii), such excess shall be returned to the city, less return of state's contributions to the
state, provided that, if the excess is less than the total contributions made by the city and the state
to date of termination of the plan or discontinuance of contributions such excess shall be divided
proportionately to the total contributions made by the city and the state.
(v) The board shall distribute, in accordance with the manner of distribution determined
under paragraph (b) the amounts apportioned under (c).
If, at any time during the first ten (10) years after the effective date of the system as respects the
city, the system shall be terminated or the full current costs of the system (consisting of the
normal costs and interest on any accrued liability) shall not have been met, anything in the
system to the contrary notwithstanding, city contributions which may be used for the benefit of
any one of the twenty-five (25) highest paid employees of the city on the effective date, whose
anticipated annual retirement allowance provided by the city's contribution at his normal
retirement date would exceed one thousand five hundred dollars ($1,500.00), shall not exceed the
greater of either (a) twenty thousand dollars ($20,000.00) or (b) an amount computed by
multiplying the smaller of ten thousand dollars ($10,000.00) or twenty percent (20%) of such
employee's average annual earnings during his last five (5) years of service by the number of
years of service since the effective date. In the event that it shall hereafter be determined by
statutes, court decision ruling by the commissioner of internal revenue or otherwise, that the
provisions of this paragraph are not then necessary to qualify the system under the internal
revenue code, this paragraph shall be ineffective without the necessity of further amendment of
this article.
(Ord. No. 132, § 8,2-22-77; Ord. No. 185, § 1, 8-8-78)
Sec. 18-49. Miscellaneous.
50 ORDINANCE#2009-010
EXHIBIT "A"
(1) MEDICAL BOARD. The board of trustees shall designate a medical board to be
composed of no more than three (3) physicians, psychologists, psychiatrists or other medical or
rehabilitative professionals who shall arrange for and pass upon all medical examinations
required under the provisions of this article, shall investigate all essential statements or
certificates made by or on behalf of a member in connection with an application for disability or
retirement and shall report in writing to the board of trustees its conclusions and
recommendations upon all matters referred to it. The payment for such services shall be
determined by the board of trustees.
(2) DISCHARGED MEMBERS. Members entitled to a pension shall not forfeit the same
upon dismissal from the department, but shall be retired as herein described.
(3) NONASSIGNABILITY. No benefit provided for herein shall be assignable or subject to
garnishment for debt or other legal process except when (i) benefit recipients authorize payment
of the premium for health insurance and hospitalization insurance coverage which is made
available by the city to said beneficiaries pursuant to Florida Statutes, section 112.0801, or other
applicable laws; and (ii) when the recipient of any monthly benefit authorizes the board of
trustees to withhold from the monthly benefit those funds necessary to pay for the benefits being
received through the city or BSO, to pay the certified bargaining agent of the city or BSO, to
make any payments for child support or alimony or for all of the foregoing.
(4) PENSION VALIDITY. The board of trustees shall have the power to examine into the
facts upon which any pension shall heretofore have been granted under any prior or existing law,
or 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 article if the same is found to be
erroneous, fraudulent or illegal for any reason; and to reclassify any pensioner who has heretofore
under any prior or existing law or who shall hereafter under this article be erroneously,
improperly or illegally classified.
(5) INCOMPETENTS. If any member or beneficiary is a minor or is, in the judgment of the
board, otherwise incapable of personally receiving and giving a valid receipt for any payment due
him under the system, the board may, unless and until claims shall have been made by a duly
appointed guardian or committee of such person, make such payment or any part thereof 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 system for such payment.
(6) SOCIAL SECURITY. In the event that coverage under Social Security should be
terminated with regard to members of this retirement system, all retirement and medical benefits
thus terminated shall be henceforth provided under this system.
(7) COMPLIANCE WITH STATE LAW. Unless otherwise amended herein, chapters 175
and 185 of the Florida Statutes will govern the operation and administration of this pension
system.
(Ord. No. 132, § 9, 2-22-77; Ord. No. 30-88, § 1, 6-28-88; Ord. No. 2000-024, §§ 19--21, 6-27-
00; Ord. No. 2004-021, § 1, 8-10-04)
51 ORDINANCE#2009-010
TRUST JOINDER AGREEMENT
FOR OTHER POST-EMPLOYMENT BENEFIT PLAN TRUST UNDER
FLORIDA MUNICIPAL PENSION TRUST FUND
MASTER TRUST AGREEMENT
THIS IS A TRUST JOINDER AGREEMENT between the City Commission of the
City of Dania Beach, Florida (herein referred to as the "Participating Employer"), and the
Master Trustees of the Florida Municipal Pension Trust Fund (herein collectively
referred to as the "Master Trustee").
WITNESSETH:
WHEREAS, the Participating Employer is establishing or currently maintains a
post-employment benefit plan other than a pension plan for the sole and exclusive
benefit of its Participants (herein referred to as the 'other post-employment benefit
plan");
WHEREAS, the Participating Employer is authorized to vary the investment
procedures of the other post-employment benefit plan thereby permitting the assets of
the other post-employment benefit plan to be invested in accordance with the Master
Trust Agreement and the Investment Policy of the Florida Municipal Pension Trust Fund
(herein referred to as the "FMPTF"), and is further authorized to participate in the
FMPTF as a Participating Employer in accordance with the procedures, policies and
methods outlined in the FMPTF Master Trust Agreement;
WHEREAS, the FMPTF, in accordance with the FMPTF Master Trust
Agreement, provides a wide array of administrative, custodial and investment services
to the Participating Employers in the FMPTF;
WHEREAS, the Participating Employer intends to avail itself of the services
offered by FMPTF in connection with the other post-employment benefit plan; and
WHEREAS, the Participating Employer desires to submit this Trust Joinder
Agreement to the Master Trustee to become a Participating Employer in the FMPTF
and a party to the FMPTF Master Trust Agreement.
THEREFORE, in consideration of the mutual covenants and agreements flowing
to each of the parties hereto, it is agreed as follows:
1. Both parties to this Trust Joinder Agreement agree that the City Commission
of the City of Dania Beach, Florida is a Participating Employer as provided in
the FMPTF Master Trust Agreement and shall be a party to the FMPTF
Master Trust Agreement.
FMPTF OPEB Administration Trust Joinder Agreement 1 Amended September 2007
2. The Participating Employer shall attach a copy of its other post-employment
benefit plan document or otherwise provide a statement of benefits, plan
participants ("Participants") and all other information required for the proper
and efficient administration of the other post-employment benefit plan to the
Administrator designated by the Master Trustee.
3. The Master Trustee accepts the Participating Employer's other post-
employment benefit plan assets for investment in the Master Trust Fund and
shall hold the assets in trust for the exclusive benefit of Participants as
provided in the FMPTF Master Trust Agreement.
4. The Participating Employer shall cause the assets of the Participating
Employer's other post-employment benefit plan to be deposited into a
depository designated by the FMPTF.
5. The Participating Employer shall make timely contributions in accordance with
the provisions of the other post-employment benefit plan and shall deposit its
contributions and any contributions made by Participants into a depository
designated by the FMPTF.
6. Neither the Master Trustee nor the Administrator shall be under any duty to
determine whether the amount of any contribution is in accordance with the
provisions of the Participating Employer's other post-employment benefit plan
or to collect or enforce payment of any contribution.
7. Depending on the Participating Employer's other post-employment benefit
plan, the Master Trustee or the Administrator may require that the other post-
employment benefit plan be approved for actuarial soundness prior to
participation approval in the FMPTF Master Trust Agreement, as determined
by the Master Trustee or the Administrator.
8. No Participating Employer or Participant shall have any right, title or interest
in or to any specific assets of the Master Trust Fund but shall have an
undivided beneficial interest in the Master Trust Fund; however, there shall be
a specific accounting of assets allocable to each Participating Employer and
to each participating other post-employment benefit plan.
9. Neither the Master Trustee nor the Administrator guarantee the Other Post-
Employment Benefit Plan Trust from loss or depreciation or the payment of
any amount which may become due to any person under any Participating
Employer's other post-employment benefit plan.
10.In resolving any conflict among the provisions of the Other Post-Employment
Benefit Plan Trust and in resolving any other uncertainty as to the meaning or
intention of any provision of the Other Post-Employment Benefit Plan Trust,
the interpretation that (i) causes the Other Post-Employment Benefit Plan
FMPTF OPEB Administration Trust Joinder Agreement 2 Amended September 2007
Trust to be exempt from tax under Internal Revenue Code Sections 115 and
501(a), and (ii) causes the participating other post-employment benefit plan
and the Other Post-Employment Benefit Plan Trust to comply with all
applicable requirements of law shall prevail over any different interpretation,
as determined by the Master Trustee or the Administrator.
11.The Participating Employer shall timely remit, or timely approve the
remittance of, administrative fees as may be due under the FMPTF Master
Trust Agreement into a depository designated by the FMPTF. Administrative
fees are set by the Master Trustee in a fee schedule, subject to amendment,
which shall be provided to the Participating Employer.
12.The Participating Employer is responsible for making all decisions and
determinations under the other post-employment benefit plan. The
Participating Employer shall provide to the Administrator all relevant
Participant information, and shall promptly update all such information,
required under the other post-employment benefit plan. The Participating
Employer shall certify said information to be correct to the best of its
knowledge, and the FMPTF and the Administrator shall have the right to rely
on the accuracy of said information in performing their contractual
responsibilities.
13.The Participating Employer shall be responsible for providing the
Administrator, in a timely manner, all information concerning the termination
of any Participant (e.g., death, disability, retirement, resignation or dismissal).
If the reason for the termination is disability and the Participant is claiming
disability benefits, the Participating Employer shall be responsible for
ascertaining eligibility through procedures adopted by the Participating
Employer. The Participating Employer shall certify said information to be
correct to the best of its knowledge, and the FMPTF and the Administrator
shall have the right to rely on the accuracy of said information in performing
their contractual responsibilities.
14.The FMPTF shall provide administrative, custodial and investment services to
the Participating Employer in accordance with this Trust Joinder Agreement
relating to the other post-employment benefit plan and in accordance with the
FMPTF Master Trust Agreement.
15.The FMPTF, in accordance with the policies and procedures established by
the Master Trustee and the FMPTF Master Trust Agreement, shall
periodically report its activities to the Participating Employer on a timely basis.
16.The parties to this Trust Joinder Agreement agree to abide by and be bound
by the terms, duties, rights and obligations of the parties as set forth in the
FMPTF Master Trust Agreement, as may be amended by the Master Trustee,
which is attached hereto and is made a part of this Trust Joinder Agreement.
FMPTF OPEB Administration Trust Joinder Agreement 3 Amended September 2007
17.The Participating Employer elects to join the FMPTF Other Post-Employment
Benefit Plan Trust for:
Full service, including investment and administrative, other post-
employment benefit plan services.
X Investment only other post-employment benefit plan services.
18.The Participating Employer elects to have the other post-employment benefit
plan assets invested in accordance with the FMPTF Investment Policy with an
equity to fixed income ratio of:
X 50% Equities/ 50% Fixed Income
60% Equities/40% Fixed Income
70% Equities/ 30% Fixed Income
19. Either party may terminate this Trust Joinder Agreement by giving at least 60
days prior notice in writing to the other party. Any termination shall be
governed by the provisions of the FMPTF Master Trust Agreement and the
other post-employment benefit plan.
IN WITNESS WHEREOF, the Participating Employer has caused this Trust Joinder
Agreement to the Florida Municipal Pension Trust Fund Master Agreerr]ent to be
executed and the signature of its authorized officer affixed this day of
20
�ogFIRST QTy CITY COMMISSION OF THE CITY
OF DANIA BEACH, FLORIDA
By: 0__C4 �
1
Signature
Mayor Anne Castro
ATTEST:
Louise Stilson, CMC
City Clerk
APPROVED AS TO FORM AND CORRECTNESS:
Tho as Ansbro
City Attorney
FMPTF OPEB Administration Trust Joinder Agreement 4 Amended September 2007
ACCEPTANCE
FLORIDA MUNICIPAL PENSION TRUST FUND
By:
Secretary - Treasurer
FMPTF OPEB Administration Trust Joinder Agreement 5 Amended September 2007