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HomeMy WebLinkAboutO-2014-001 GE Pension IRS Compliance ORDINANCE NO. 2014-001 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AMENDING THE CITY OF DANIA BEACH CODE OF ORDINANCES TO PROVIDE FOR COMPLIANCE WITH THE INTERNAL REVENUE CODE RELATING TO THE CITY OF DANIA BEACH GENERAL EMPLOYEES' RETIREMENT PLAN ("PLAN"); PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, recent changes to federal laws and regulations require that various amendments be made to the Plan in order to maintain its status as a qualified Plan under Section 401(a)of the Internal Revenue Code; and WHEREAS, an amendment to the City of Dania Beach Code of Ordinances is necessary to permit such new obligations and conditions; and WHEREAS, the Trustees of the City of Dania Beach General Employees' Retirement Plan have requested and approved such an amendment as being in the best interests of the participants and beneficiaries, as well as improving the administration of the Plan;and WHEREAS the CityCommission has received reviewed and considered an actuarial , impact statement describing the actual impact of the amendments provided for in this Ordinance; NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH,FLORIDA: Section 1. That the above recitals are true and correct and incorporated into this Ordinance by this reference. Section 2. That Sec. 18-29.3 of the Dania Beach Code of Ordinances is amended to read as follows: 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 while performing USERRA-qualified active military service. In the case of a Member who dies on or after January 1, 2007 while performing "Qualified Military Service" under Title 38, United States Code, Chapter 43, Uniformed Services Employment and Reemployment Rights Act ("USERRA") within the meaning of Section 414(u) of the Internal Revenue Code, any "additional benefits" (as defined by Section 401(a)37) of the Internal Revenue Code) provided under the Plan that are contingent Won a Member's termination of employment due to death, shall be determined as though the Member had resumed employment immediately prior to his or her death. With respect to any such "additional benefits", for vesting_purposes only, credit shall be given for the period of the Member's absence from covered employment during "Qualified Military Service." (c) 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 of this Chapter. (d) Option o bene ciary 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 or her designated beneficiary will have the option to either leave his or her 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 pursuant to Section 18-29.7, or to take an actuarially reduced benefit at the deceased employee's time of death. Section 3. That if any clause, section, sentence or phrase of this Ordinance is for any reason held unconstitutional or invalid by a court of competent jurisdiction, the holding shall not affect the validity of the remaining portions of this Ordinance. Section 4. That all ordinances or parts of ordinances, resolutions or parts of resolutions in conflict with this Ordinance, are repealed to the extent of such conflict. 2 ORDINANCE#2014-001 Section 5. That this Ordinance shall be in full force and effective immediately upon its passage and adoption. PASSED on first reading on January 14, 2014. PASSED AND ADOPTED on second reading on J2A �WB. 014. ATTEST: LOUISE STILSON, CMC DUKE, III CITY CLERK APPROVED AS TO ORM AND CORRECTNESS 1 J. THOMA4 J. SB O01 CITY ATTORNEY 3 ORDINANCE#2014-001