Fort Walton Beach Council agenda — 02-22-11 regular — reading text

amended from time to time) in lieu of the current language in section 19; or eliminating this section in its entirety. Indemnification) (New) Section 25 The proposed new section would indemnify members of the pension board from personal liability connected with or arising out of their official duty as pension board members. Whether to indemnify individual pension board members is a policy decision by the City and is not required under federal or state law. Direct Transfers of Eligible Rollover Distributions; Elimination of Mandatory Distributions) Section 25 Section 25 Several changes are proposed for language regarding eligible rollover distributions. is revised to permit rollovers of after -tax contributions. This proposed change complies with current Code provisions and Treasury Regulations. The definition of Distributee incorporates a provision of the Pension Protection Act of 2006 allowing the rollover of plan assets of a deceased member to an IRA for a non -spousal beneficiary. Previously, the law had only permitted such rollovers to a spousal IRA. It should be noted that the law does not require the plan to offer rollovers to non -spouse beneficiaries; this change is permissive. See IRS Notice 2007 -7. However, we have no objection to incorporating the non -spousal beneficiary provision. Early Retirement Incentive) Section 26 Section 26 is deleted in its entirety due to outdated language. This change is appropriate. September 23, 2010 Page 7 Maximum Pension) Section 27 Section 27 is deleted in its entirety and the subject matter addressed under new Section 15. Deferred Retirement Option Plan) Section 28 Proposed language under subsection 2. E( 1) would include in a member' s salary, for purposes of determining accrued benefit, lump sum payments that " would have been included" as salary if the member was retiring rather than entering DROP. This revision is not required under federal or state law and is contrary to the language in the plan. " Salary" is defined under Section 1 as excluding unused accumulated sick leave pay and vacation pay received as a lump sum payment upon termination of employment for purposes of determining a member' s accrued benefit. Therefore, we recommend against this proposed revision. Other technical changes are proposed which would have no negative effect on the administration of the DROP and are recommended. Reemployment after retirement) (New) Section 28 A new section is created to provide for the treatment of retirees who are reemployed by the City. Under the proposed new section, the reemployment of retired firefighters would be treated as follows: Retirees may be hired by another employer without affecting their benefits. If a retiree is reemployed as a firefighter, benefits are discontinued and additional credited service is applied towards a second benefit. If a retiree retires under normal retirement and is rehired by the City as a member of another retirement system benefits are discontinued. If a retiree retires under early retirement and is hired by the City in any capacity, benefits are discontinued. The provisions of section 28 would also apply to retirees who participated in DROP and terminated employment at the conclusion of their DROP participation period. The proposed reemployment after retirement provisions in section 28 are not required to be included in the plan by state or federal law. In addition, if the City does not rehire a retired employee, this section has no effect on the plan. However, Internal Revenue Service ( IRS) guidelines prohibit distributions from a qualified pension plan to participants who are actively employed in a position with an employer covered by the plan. This prohibition specifically applies to members under the age of 59'/ 2 years who are re- employed after retirement without a bona fide break in service." The IRS may conclude that a retiree who is reemployed without an appropriate break in service may have never actually retired. In making such a determination, the IRS looks at whether an individual' s retirement is genuine or an attempt to gain favorable tax status. September 23, 2010 Page 8 If you have questions concerning any of the proposed changes outlined above, please call. c a c 0 N c as a T T T Ti N N O C Gi Q G a L d L d L_ u. L O CG t v ca a  Ci City Council of Fort Walton Beach CITY MANAGER f MEMORANDUM To: Robert T. Mearns, City Manager From: Carole Jones, Executive Assistant Date: February 22, 2011 Subject: Support of House Resolution 56 ATTACHMENTS: Request for Resolution & Sample( PDF) SIGNATURE BLOCK: Carole Jones Completed 02/ 14/ 20115: 00 PM Carole Jones Completed 02/ 14/ 2011 5: 00 PM City Manager Completed 02/ 15/ 20119: 30 AM City Council Pending  Resolution # ## # - Resolution supporting House Resolution 56 Whereas, the BP / Deepwater Horizon Oil Disaster greatly impacted every state fronting the Gulf of Mexico both environmentally and economically, and Whereas, the federal Clean Water Act demands a significant fine be levied against any entity that illegally discharges into a federal waterbody, and Whereas, the federal Clean Water Act prescribes that the fines go into the federal treasury, and Whereas, we fully support that 80% of those fines and fees be dedicated to the states impacted by this disaster to support environmental restoration, and Whereas, environmental restoration will enhance the Gulf by: Contributing to a healthy, productive and biologically diverse coastal and marine ecosystem that supports the seafood, recreation, tourism and other critical industries necessary for our constituents who live and work in the area; Provide thousands of new jobs and provide economic opportunities to our communities, particularly disadvantaged and distressed communities; Ensuring a resilient Gulf that is crucial to storm protection, fishing, recreation, seafood and tourism — the cornerstones of the Gulf culture and economy; and NOW THEREFORE, BE IT RESOLVED BY THE # ## OF THE # # ##OF [ State] supports House Resolution 56 that establishes 80% of the Clean Water Act fine monies come back to the impacted Gulf States for environmental restoration. ADOPTED this day of , 2011. Council President Date & Time Signed: Mayor Date & Time Signed:  Page 1 o 14. 1. .6 Carole Jones From: Robert Mearns Sent: Friday, February 11, 2011 9: 22 AM To: Carole Jones Subject: FW: CWA fines and resolution See below Robert T. Mearns City Manager Office of the City Manager City of Ft. Walton Beach, FL 850- 833 -9504 850- 833 -9640 (Fax) Please Note: Florida has a very broad public records law. Most written communication to or from the City of Fort Walton Beach officials are public records available to the public and media upon request. Your e -mail address and communications may therefore be subject to public disclosure. From: Mike Anderson Sent: Friday, February 11, 20119: 08 AM To: chasidy@emeraldcoastkeeper. org; Mike Holmes; joyce gillie gossom; Dennis Reeves; Mike Minich; Robert Nabors; C. H. " Bull" Rigdon; Dick Rynearson; Robert Mearns; Hayward Dykes; Helen Spencer Subject: RE: CWA fines and resolution Please put this item on our Feb 22 Council meeting agenda. Council then can make the decision to support or not. Thanks, Mike From: chasidy@emeraldcoastkeeper.org [ mailto: chasidy@emeraldcoastkeeper. org] Sent: Thu 2/ 10/ 201109: 17 PM To: Mike Anderson; Mike Holmes; joyce gillie gossom; Dennis Reeves; Mike Minich; Robert Nabors; C. H. Bull" Rigdon; Dick Rynearson Subject: CWA fines and resolution Greetings Mayor Anderson and Council members. I am sure you are all aware that Clean Water Act fines will soon be collected for th.e Deepwater Horizon gusher. These fines