Fort Walton Beach Ordinance — 2124--Amend COO CH 2.07 The General Employees' Retirement Plan; Distribution of Benefits — reading text

READING DATE lst & 991 ORDINANCE 2124 2nd , o AN ORDINANCE OF THE CITY OF FORT WALTON BEACH AMENDING THE GENERAL EMPLOYEES' RETIREMENT PLAN; AMENDING THE SECTION PERTAINING TO THE DISTRIBUTION OF BENEFITS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. WHEREAS, administration of the City of Fort Walton Beach General Employees' Retirement Plan is presently vested in the City Council under Ordinances of the City of Fort Walton Beach; WHEREAS, changes to the Internal Revenue Code may happen quickly and frequently. There is a benefit in authorizing the Board to make appropriate changes to the Plan in order to maintain the Plan' s tax qualified status; WHEREAS, effective January 1, 2023, the Internal Revenue Code was amended by increasing the required minimum distribution age from 72 to 73; and, WHEREAS, the City of Fort Walton Beach City Council finds that it would be in the best interest of the citizens of the City and the members of the General Employees' Retirement Plan to amend the Plan as set forth below to maintain compliance with the Internal Revenue Code. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA: SECTION 1: That sections 2. 07.23( a)( 1) a and 2. 07. 23( a)( 2) a of the General Employees' Retirement Plan is hereby amended as follows: SECTION 2. 07. 23. Distribution of benefits. a) As of the Effective Date, this plan shall pay all benefits in accordance with a good faith interpretation of the requirements of Code Section 401( a)( 9) and the regulations promulgated thereunder, as applicable to a governmental plan as defined in Code Section 414( d). Notwithstanding any other provision of this plan to the contrary, a form of retirement income payable from this plan after the effective date of this ordinance, shall satisfy the following conditions: 1) If any retirement income is payable before the member's death, a. It shall either be distributed or commence to the member not later than April 1 of the calendar year following the later of the calendar year in which the member attains age seventy and ene ha4 f year-, three ( 70 -'h) (73), Provided the member had not already attained age 72 by December 31, 2022, or the calendar year in which they retire. The Plan will make all future required minimum distributions in compliance with the Prevailing age restrictions  and additional parameters set out in the Internal Revenue Code as amended from time to time. 2) If the member's death occurs before the distribution of their interest in the plan has commenced, their entire interest in the plan shall be distributed within five (5) years of their death, unless it is to be distributed in accordance with the following rules: a. If the member's surviving spouse is the sole designated beneficiary, then distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the member died, or by December 31 of the calendar year in which the Member would have attained age seventy and ene hal three ( tea) (73), provided the member had not SECTION 2: Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Fort Walton Beach. SECTION 3: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 4: if any section, subsection, sentence, clause, phrase of this ordinance, or the particular application thereof shall be held invalid by any court, administrative agency, or other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under application shall not be affected thereby. SECTION 5: This Ordinance shall take effect immediately upon adoption on second reading by City Council and signature of the Mayor. Adopted: IIAS Y' 1013 As''- e—a Richard A. Rynearson, Nfayor Attest: Ki . Barnes, City Cle. mey Additions are underlined;