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HomeMy WebLinkAboutO-132 - Adoption of Police and Fire Pension PlanORDINANCE NO. 132 AN ORDINANCE OF THE CITY OF DANIA, FLORIDA ENACTING INTO LAW AN AMENDED PENSION PLAN FOR POLICE OFFICERS AND REGULAR FULL-TIME FIREMEN: PROVIDING FOR AN ORDERLY TRANSFER OF FUNDS TO THE NEW FUND: PROVIDING FOR THE ESTABLISHMENT OF A NEW BOARD OF TRUSTEES: PROVIDING FOR A BUY-BACK OF CREDITED SERVICE FOR MEMBERS NOT UNDER TIME PRIOR PLANS; PROVIDING A SAVING CLAUSE: REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Dania presently provides pension plans and related benefits for City Police and Firefighters which are of major importance as fringe benefits of City employment; and, WHEREAS, the City Commission is desirous of updating the Policemen's Retirement Fund and the Firemen's Retirement Fund; and, WHEREAS, the City Commission is desirous of having one pension system to be known as -the City of Dania Police and Fire- fighters Retirement System for its Policemen and Firefighters; and, WHEREAS, the City Commission, the City Administration, the Trustees of the Policemen's Retirement Fund and the Trustees of the Firemen's Retirement Fund upon extensive examination of the present Plans and the proposed City of Dania Police and Firefighters Retirement System are desirous of adopting the pro- posed Retirement System; and, WHEREAS, the proposed Retirement System preserves all benefits accrued to date under the present Trust Funds, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DANIA, FLORIDA, AS FOLLOWS: SECTION 1. That Ordinances Number 542, 543, 547 and 548 of the City of Dania are hereby rescinded and repealed. SECTION 2. That this Ordinance Number 132 be adopted in place thereto read as follows: Section 1. DEFINITIONS. As used herein, unless other- wise defined or required by the context, the following words and phrases shall have the meaning indicated: 1. City means 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 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., or regular full-time Firemen as defined on the Effective Date -1- f' 7 I in Section 175.032, Chapter 175 F.S.A., but shall exclude all civilian members of the Police and Fire Departments. 7. Member means an Employee who fulfills the pres- $• Continuous Service cribed participation requirements. means for those who 9• Earnings Membes of the prior Policemen's orsFiremen'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, resig- nation, or discharge, but in no event beyond attainment of the Member's Normal Retirement Date; rovided 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 cir- cumstances shall be treated alike pursuant to uniform, non-discrim- inatory rules. b. Any service, voluntary or involuntary in the Armed Forces of the United States, provided the Member is legally entitled to re-employment under the provisions of the Universal Training and Service Act, and any amendments thereto, or any law applicable to such re-employment, and provided further, that said Member shall apply for re-employment within three (3) months following termination of such service. However, provided further, no credit for benefit eligibility or computation Purposes under the System shall be allowed for any such period of leave of absence or military 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 exclud- ing 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. means total cash compensation paid to a Member, but excluding unscheduled overtime. -2- i E. 7 r 400 10. Average Monthly Earnings means 1/24th of the arithmetic average of Earnings for the 12 months immed- iately preceding the first to occur] of the Normal Retirement Date, attainment of the maximum seventy-five percent (75%) benefit level, or termination of a Member and for any other consecutive prior 12 month period, as selected by the Member. Provided however, Members may elect to make partial additional contributions as provided hereunder in order to have Average Monthly Earnings determined as of 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 other- wise specifically designated under this Ordinance, 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 atthe 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. Souse 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 Ordinance and System become effective. Section 2. 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 evid- ence 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 disability benefits here- under, as related to such pre-existing condition. However, Members who 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 Para- graph 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, non-discriminatory basis, with all Employees in similar situations being treated alike. 2. Application for Membership Each eligible Employee shall complete an application form covering the following points, as well as such other items points or 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 a six percent (6ti} 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 agree- ment to make such additional contributions as re- quired 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 purposed of disability, however, an Employee shall be considered a Member and eligible for benefits hereunder only upon completion of all medical examination require- ments 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 non -Membership. 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 percent (5%) 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 be may made immediately on a 7 single lump sum basis, or over 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 elig- ibility for, or amount of, benefits under the Prior Policemen's or Firemen's Retirement Fund, as carried forward for minimum benefit guarantees hereunder. 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 Of rights all previously designated Beneficiaries to receive any benefit under the System shall cease. Section 3. BENEFIT AMOUNTS AND ELIGIBILITY 1. Normal Retirement Date a. A Member's Normal Retirement Date shall be the first day of the month coincident with or next following the attainment of his fifty-fifth (55th) birthday and the completion of -twenty (20) years of Continuous Service; or for those who were also Members of the prior Policemen's or Firemen's Retirement Fund immediately preceding the Effective Date of this System, the attainment of the sixtieth (60th) birthday and ten (10) years of Continuous Service; but in no event beyond the sixty-second (62nd) birthday. Except as herein Member may retire on his Normal vRetirementLate or on the first day of any month thereafter. Each Member shall become 100% vested in his accrued benefit on his Normal Retirement Date. b. Members may remain in employment as Employees after age fifty-five (55) and until the sixty-second (62nd) birthday, at which time retirement d shall be compulsory. Provided, however, that upon the request of the City Manager, the Board, at its discretion, but on a uniform non-discriminatory basis, cause may the benefits of a Member who has passed his fifty-fifth (55th) birthday to be frozen in amount, with no additional Member contributions to be required, if in the Board's judgment and based upon proper medical examination the Member, due is to age, no longer physically or mentally able to satis- factorily perform all of the duties of his position. Such a Member shall be considered to have his reached normal Retirement Date even if he has less than twenty (20) years of Continuous Service, and benefits shall commence immediately upon the Member's termin- ation with the City. Members to whom this is provision applied shall not be considered to be disabled. I 1 _5_ i t, I i a. Duration A Member retiring hereunder on or after hisNormal Retirement Date shall receive a monthly benefit which shall commence on his retirement date and be continued thereafter during his lifetime, ceasing upon death. Other Optional forms of payment providing death benefits shall also be available as specified herein. b. Amount The monthly retirement benefit shall equal two and one-half percent (21�%) of Average Monthly Earnings, for each year of Continuous Service prior to the Member's Normal Retirement- Date, subject in any event to a maximum of seventy-five percent (75%) 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 have 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) Year 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. 3. Disability a. Service Incurred Any Member who receives a service connected injury, disease or disability, which injury, disease or disability permanently incapac- itates him, physically or mentally from his regular and continuous duties as a Firefighter or Police Officer, shall receive in equal monthly installments an amount to fourty percent (40%) of his Average Monthly Earnings in effect as of the date of dis- ability. The benefit shall be paid until the earlier of recovery from disability as determined by the Board, or death. An Optional form of benefit, pro- viding death benefits, may be elected. b. Non -Service Incurred Any member with one (1) year of Continuous Service who receives a non -service connected injury, disease or disability, and which injury, disease or disability permanently incap- acitates him physically or mentally from gainful employment shall receive in equal monthly install- ments an amount equal to thirty percent (30$) of his Average Monthly Earnings in effect as of the date of disability. Optional forms of benefit shall not be available, and the benefit shall be payable only until the earliest of commencement of Social Security disability benefits, recovery as determined by the Board, or death. In order to be eligible to receive this benefit, the dis- abled Member must submit proof satisfactory to the Board that he has applied for Social Security disability benefits. !' I 4 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. Benefit Offsets The Service Incurred disability benefits described herein shall be reduced or offset by the regular monthly amounts, whether paid periodically or as a lump sum, to which the disabled Member is entitled under Workman's Com- pensation or any other City financed disability or salary continuation program other than Social Security. e. 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 com- mission of a criminal act. f. Recovery In the event of recovery from disability as determined by the Board, and immediate re-em- ployment by the City as an Employee, the period of time while disabled shall be included as Contin- uous Service. In the event of recovery, but with- out immediate re-employment as an Employee, the Member's future benefits shall be determined as though he initially terminated employment on his date of disability. Pre -Retirement Death a. Service Incurred A death benefit shall be payable on behalf of any Member who dies as a direct result of an occurence arising in the performance of service, as follows: 1. To the Spouse, until the earlier of death or remarriage, a monthly benefit equal to forty percent (40%) of the Member's Average Monthly Earnings 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 (73A ) 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 non -student child's pension shall terminate on the earlier of death, marriage or the attainment of age 18; the pensior of a child who is a student shall terminate on the earlier of death, marriage, or the attainment of age 22. Legally adopted children shall be eligible the same as natural children. -7- 07 7 7 7 Upon remarriage or death of the spouse, the seven and one-half percent (7'%) 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 deter- mined by the Board of Trustees. b. Non -Service Incurred If any Member shall die while in active service as an Employee of the City of Dania, but from causes not attributable to active duty or service, a death benefit shall be payable as follows: 1. With less than one (1) year of Continuous Service -None. 2. With one (1) or more years of Continuous Service - (i) To the Spouse until remarriage or death, a monthly benefit equal to thirty-five percent (35%) of the Member's Average Monthly Earnings, plus To the child 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 Spouse and children of fifty percent (50%) of Average Monthly Earnings and thirty-five percent (35%) after remarriage or death of the Spouse. 5. Vesting If a Member terminates his employment with the Police or Fire Departments, either voluntarily or by lawful dis- charge, and is not eligible .for any other benefits under this System, he shall be entitled to -the following: a. With less than ten (10) years of Continuous Service Refund of Accumulated Contributions. b. With ten (10) or more years of Continuous Service - 1. The pension benefit accrued to his date of termination, payable commencing at his other- wise earliest Normal 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 City as a Police Officer or Firefighter terminated, but who remains with or was previously employed by the City in some other capacity so that his total period of employment with the City is ten (10) 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 Retire- ment Date, in accordance with the provisions of this System. For purposes of determining Normal Retirement Date under �J this Vesting provision. Continuous Service shall include all continuous employment with the City as an Employee as herein defined as well as the period of time subsequent E F 7 r to termination as an actively employed and 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. Forfeitures arising from terminations of employment shall serve only to reduce future City contributions. Section 4. OPTIONAL FORMS OF BENEFITS Each Member entitled to a Normal, Service -Incurred 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 herein- after set forth in lieu o o f the benefits otherwise provided herein, and trevoke 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 percent (50%) 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 beingretained in the Board's files. OPTION 1 - Joint and Last Survivor Option lifetime and have The Member may elect to receive th a benefit during his thereof) continuedsafterehisldea(or a designatand ed fraction lifetime of his Spouse or a relative other thanghise Spouse. the designatedtBeneficio Beneficiary ifdiI shall bethe null and void benefit payments commence. OPTION 2 - 10 Years Certain and Life Thereafter The Member may elect to receive a benefit with 120 monthly payments guaranteed. If, after payments commence, the Member, should die before said 120 monthly payments are made, payments are then continued to his designated Beneficiary until 120 payments in all have been made, at which time benefits cease. After expiration of the 120 monthly payments guaranteed, remaining lifetime. should the retired Member be then alive, payments shall be continued during his 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. Section 5. CONTRIBUTIONS 1. Member Contributions a. Amount. Members of the Retirement System shall make regular contributions to the Fund at a rate equal to six percent (6%) of their respective Earnings. b• Duration. Contributions shall be deducted from said Eart nii gs before the same are paid, until the Member has reached his Normal Retirement Date or the maximum seventy-five percent (75%) retirement benefit level, whichever occurs first. -9- i C. Extended Contributions. A Member whose contributions would otherwise cease as specified in "b" above, and whose benefits would therefore be fixed in amount as of that date regardless of future changes in Earnings, may elect to continue making contributions but only based upon 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 Con- tributions at the rate of four percent (4%) 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 percent (4%) of each Member's Accumulated Contributions as of the most recent prior interest crediting date. e. Guaranteed Refund. All benefits payable under this System are in lieu of a refund of Accumulated Con- tributions. In any event, however, each Member shall be guaranteed the payment of benefits on his behalf at least equal in total amount to his Accum- ulated Contributions. 2. State Contributions "i Any monies received or receivable by reason of laws of the State of Florida, for the express purpose of funding and paying for retirement benefits for Police and Firemen of the City shall be deposited in the Trust Fund comprising part of this System. 3. City Contributions So long as this System is in effect, the City shall make an annual contribution 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 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 over a forty (40) year period commencing with the fiscal year in which the Effective Date of this System occurs. 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. Section 6. ADMINISTRATION 1. The general administration and responsibility for the proper operation of the Retirement System and for making effective the provisions of this Ordinance are hereby vested in a Board of Trustees consisting of nine (9) persons as follows: J I I r a. The Mayor of the City of Dania; b. The Fire Chief; I C. The Police Chief; d. Two Employee members of the Fire Department to be elected as hereinafter provided; e- Two Employee members of the Police Department to be elected as hereinafter provided; and f. Two public members to be elected by the other members of the Board of Trustees and approved by the City Commission. 2. The term of office of each elected Trustee shall be two (2) years. The Trustees under the prior Retirement Funds immediately preceding the Effective Date of this System shall continue in office as Trustees hereunder for the duration of their original terms. 3. The elective Employee Trustees 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 Ordinance 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 writ advance of said meetten notice ten days in ing. The candidate receiving the highest number of votes for each office shall be declared elected and shall take office immediately upon commence- ment of the term of office for which elected or as soon thereafter as he shall shall be held not more thanthirty (30) therefor. An election than ten (10) days y (30) and not less y prior to the commencement of the terms for which Trustees are to be elected. The Board shall establish and administer the election procedure for each election. The Board of Trustees shall meet, organize, and elect one of their members as Vice Chairman and one member as Secretary, within ten days.after the new Employee Trustees are elected and duly qualified. The Mayor shall. serve as Chairman. 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. 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. 6. Each Trustee shall, within ten (10) days after his appointment or election, take an oath of office beforeR 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 know- ingly 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 affirmative votes shall be necessary for a decision by the Trustees at any meeting of the Board. The Chair- man shall have the right to one vote only. i 1 8. Subject to the limitations of this Ordinance, the Board of Trustees shall from time to time establish uniform rules and regulations for the administration of funds created by this Ordinance and for transactions of its business, including provisions for expulsion due to non-attendance 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. Any elected Trustee who neglects the duties of his office, as determined by the Board, may be removed by seven concurring votes among the Board of Trustees. 11. 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 y� 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 foll- owed 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 particip- ation 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 Ordinance. Section 7. 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 L _12- l- r- contributions and assets whatsoever attributable to the System, including the assets of the two 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 with Trust powers for the purpose of serving as Custodian of the Fuundand all assets eposited the Fund shall be promptly and continually therewith. In order to fulfill its investment res- ponsibilities as set forth herein, the Board shall be required to retain the services of the Custodian Bank, an investment adviser registered under Invest- ment Advisors Act of 1940, an insurance company, or a combination of these, for purposes of investment decisions and management. Svestment broadagugde- shall have full discretion, within any lines 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 comming- led 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. 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. 5. The Board of Trustees shall have the following investment powers and authority: a. The Board of Trustees shall be vested with full leal ect ingany tevent itle ttosthe authorityaid Fund, ] however, and power of the -13- i f City Commission to amend or terminate this Trust, I 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 expen- ses and benefits under this System. All contri- butions 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. 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 reinvest- ment 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 Trust 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 design- ated thereby; to amortize or fail to amortize any part or all of the premium or discount result- ing 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 excecise. g. The Board shall not be required to make any invent- ory or appraisal or report to any court, nor to secure any order of court for the exercise of any power herein contained. I l -14- i i h. Where any action which the Board is required to function which it is required take or any duty or aseTrustee in or under to either under the perform toterms the general law applicable reasonably be taken or under this Ordinance, can only after receipt by it from a Member specific inform- performed the City or any other entity of direction or instructions, ation, certification, be free of liability in failing the Board shall to take such action or perform such duty or certification, function until such information, has been received by it. direction or instruction i. Any overpayments or underpayments from the Fund by errors of to a Member or Beneficiary caused with interest at computation shall be adjusted approved by the Board. Over- a rate per annum payment shall be charged against payments next Underpayments shall succeeding the correction. Trust Fund. be made up from the The Board shall sustain no liability whatsoever j, the Fund to meet the paY- for the sufficiency of benefits herein provided for. ments and k. In any application -to or proceeding or action City and the Board shall in the courts, only the be necessary parties, and no Member or other in the Fund shallbe person having an interest notice of servicToceeor ding entitled to any or Any judgment entered in such a P persons. all p action shall be conclusive upon in Any of the foregoing powers and functions rep�hedBoard a out by 6. the Board may be performed or crried duly authorized Agents, provided that the supervision through Board at all times maintain continuous Agent; provided further, over the acts of any such to said Fund shall always remain in ,. that legal title the Board of Trustees. ion 8. REPEAL OR TERMINATION OF SYSTE M Sect This Ordinance establishing the System and Fund, and to said System and 1. ces pertaining subsequent Ordinanor amended, in terminated, Fund, may be modified, sub - in part; provided that if this or any repealed in its whole or hole t Ordinance shall be amended or benefiting hereunder, the application to any person of benefits which at the time of any such have accrued amount alteration, amendment, or repeal shall Beneficiary shall not be affected the to the Member or assets of except thereby, inadequate tetoined to be be rm Fund may repealed, or if contributions 2. If this ordinance shall be discontinued, the Board shall con- 'the to the System are to administer the System in accordance with for the sole benefit tinue provisions of this Ordinance, any Beneficiaries then receiving of the then Members, retirement allowances, and any future persons entitled of the optionsapy provided to receive benefits under one are designated by for in this Ordinance who ns In the event of repealhe�eltbe full Members. shall to the System are discontinued,of shall be allocated in assets of theefits systemaccrued and t provide benefits on a proport- and the equitable manner to an i 7 3. A ionate basis to the persons so entitled to benefitior s in accordance with the provisions hereof, with p preference being directed towards the return of Accumulated Contributions. The following shall be the order of priority for upo purposes of allocating the assets of the System then repeal of this ordinance or if contrSystem are discontinued. s a. The Accumulated Contributions of the proportion Members sto andtoes any benefits received, P P the extent of the then amountof Accumulated Member Contributions. If any funds then b. Members already retired under dertthe Normal Retirement provisions of the Sy for tually retired, and Normal Retirement but notrocortion to and to the l their Beneficiaries, Prop extent of the then actuarially determined determined present amounts value of the benefits payable above. If any funds received according to ""' remain, then C. Members retired under the disability provisions of this System and their Beneficiarief anyfundsin themain, same manner as in babove. then d. All other Members and their Beneficiaupon ies in the us same manner as rb Earnings as of the Service and Average Monthly date of termination of the System, and with any benefits vested given precedence. The allocation of the Fund provided for in this sub-_ section 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 qutable distribution may be carraedeC{t 1TheuTrusthmaych ebe1con- manner as the Board may tinued in existence for purposes of subsequent distri- butions. any time during the first ten years after the If, on Effective Date shallb Dfethe terminatedsorethecfullhcurrent the Systemstem (consisting of the normal costs costs the System accrued liability) shall not have and :interest rest on any stem to the contrary been met, anything in the Sy be used notwithstanding, City contributions wnty-five (25) for the benefit of any one of the twenty - highest paid Employees of the City on the Effective Date, whose anticipated cannualuretirement alltons at hisowance provided by the City shall not exceed Retirement Date would exceed $1.,500, the greater of either (a) $20,000 or (b) anamount computed by multiplying the smaller of $10,000 tweor nty percentum of such Employee's average annual is last five years of service by earnings during h the number of years of service since the Effective 't shall hereafter be Date. In the event that i ruling by the determined by statute, court decision, g , that Commissioner of Internal paragraph are notevenue, or erwi thenenecessary the provisions of this p j� i -16- 0 WA to qualify the System under the Internal Revenue Code, this p aragraP�l Shall be ineffective without the necessity of further amendment of this Ordiprovided nd accrued be,a11 th, liabil- After all the vested aid and after all then shall 4 have been P then and only fund of hereunder been satisfied, the general ities have funds revert to any remaining the City- Section designate Section 9• � d The Board of Trustees threea(3) PhYsi Medical Board e composed °f, and/or D'O''s' 1• Ord to to either M.D. s a Medical B ass upon all medical cians, but 13-an edfor and P rovisions of who shall arra under the P state- uired ate all essential examinations all investig or on behalf of a ordinance, shall made by for dis- or certi.ficateswth an application writing ments connection ort in Member In and shall rep ability or retirement ees its conclusions and t to the Board of Trust all matters referred to i such services shall be determined recommendations upon The payment for by the Board of Trustees* erasion Members entitled to a P same upon dismissal from the Members described. 2. Dischar ed M herein shall not forfeit the Department, but shall be retired as No benefit proviarnishmented for rfor Non-Assi nabil ein ble or subject to g 3• a assig rocess• shall b for other legal P debt or shall have The Board () Trustees which any Pension Vali_di_ the facts upon under, 4 r to examine into been granted the Powe_ heretofore hereafter be pension shall law, or shallOr any prior or existing fraudulently, re reason. Said Board is emp°Wered granted or obtained erroneously+ dis he illegally for any, any Person,law or to purge the pension rolls of existing granted a pension under prior rd fraudulent or illegal for hereafter granted under this Ordinance if the same hereafter' to be erroneous, any pensioner who has is and to reclassifYexisting law or who any reason; and any prior or e erroneously, hevtofore under this Ordinance b shall hereafter eillegally classified. improp If any Member or Beneficiary is 5• Ineo-y is in the judgment of the Board, a valid sonally receiving and giving minor or iS, under the System, the incapable of per due him receipt for any payment claims shall have been Board may, unless and until art thereof e by a duly appointed guardian or committee of ment or any P sudch person, make sPaY or other person to such person"s Spouse, children erases or deemed by for the expenses of such the Board to have incurred expenses onsibilitso made shall be a complete assumed resp a ment System for person• Any P Y liability under the Y disc harge of any such Payment. coverage under B_ Social Security In the event that wit Social Security should be termina'{em�wa11 retirement j to Members of this Retirement Ys ce and medicalb pr�fits thus terminatedovided this System. shall be L forth -17- mom SECTION 3 That upon the transfer of the assets from the Trustees of the Policemen's Retirement Fund and the Trustees of the Firemen's Retirement Fund to the Dania Police and Fire- fighter's Retirement System, the Board of Trustees of the Policemen's Retirement Fund and the Board of Trustees of the Firemen's Retirement Fund are dissolved. SECTION 4 Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordin- ances of the City of Dania. SECTION 5 All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 6 This Ordinance shall take effect immediately upon final passage by the City Commission and shall be pub- lished as required by law, but shall apply as of March 1, 1977. SECTION 7 That should any section or provision of this Ordinance or any portion thereof, any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part to be declared invalid. PASSED AND ADOPTED on first reading on the (�i� day ( of 1977. /PASSED AND OPTED on second reading on the ��'.,L- day of1977. Mayor, ATTEST: City Clerk Approved: City Attorney 1 I i j t -J i !