Fort Walton Beach Ordinance — 1686 Amend General Employees Pension - Election to Participate — reading text

9- 21- 05 PROPOSED ORDINANCE AMENDING THE CITY OF FORT WALTON BEACH GENERAL EMPLOYEES' RETIREMENT PLAN 1st PURCHASE OF CREDITED SERVICE) 2nd ORDINANCE NO. 1686 AN ORDINANCE OF THE CITY OF FORT WALTON BEACH, FLORIDA, RELATING TO THE GENERAL EMPLOYEES' RETIREMENT PLAN; AMENDING SECTION 17- 13 TO PROVIDE FOR A ONE- TIME ELECTION TO PARTICIPATE IN THE PLAN FOR NONMEMBERS; AMENDING SECTION 17- 14 TO PROVIDE FOR THE PURCHASE OF SERVICE CREDIT FOR PAST SERVICE WITH THE CITY; AMENDING SECTION 17- 23 TO PROVIDE FOR THE DIRECT TRANSFER FROM ELIGillLE 457 PLAN TO PURCHASE PAST SERVICE; PROVIDING A SEVERABILITY CLAUSE; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Fort Walton Beach created the General Employees' Retirement Plan in 1966 to provide retirement benefits for participating employees of the City of Fort Walton Beach; and WHEREAS, the City Council of the City of Fort Walton Beach hereby determines it advisable and appropriate to amend the General Employees' Retirement Plan to provide a one- time election to participate in the General Employees' Retirement Plan for employees of the City of Fort Walton Beach hired prior to May 14, 1996 who previously elected not to participate; WHEREAS, the City Council of the City of Fort Walton Beach hereby determines it advisable and appropriate to amend the General Employees' Retirement Plan to provide for the purchase of credited service by members of the General Employees' Retirement Plan for past service with the City of Fort Walton Beach; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA: Section 1. Section 17- 13 of the City of Fort Walton Beach General Employees' Retirement Plan is hereby amended to read as follows: Sec. 17- 13. Participation in fund  5) Notwithstanding any provIsIon to the contrary. any employee who is not a member of the Plan on the effective date of this ordinance due to their personal choice not to loin when membership was offered. may loin the Plan with an option to purchase credited service pursuant to Sec. 1 7- 14 ( 7) of this Plan. An election to become a Plan member pursuant to this paragraph must be made in writing on or before February 28. 2006. Section 2. Section 17- 14 of the City of Fort Walton Beach General Employees' Retirement Plan is hereby amended to read as follows Sec. 17- 14. Credited service; military service. 7) A member may purchase credited service under the Plan. in years and fractional portions of a year up to four decimal points. for all or a portion of the period of full-time employment by the City in a position covered by the Plan during which the member did not participate in the Plan. as provided in this subsection. Credited service purchased pursuant to this subsection shall apply for purposes of benefit calculation and retirement eligibility. Such member must pay into the Plan the full actuarial cost of such service as determined by the Plan actuary. together with the full cost of any actuarial calculations required. A member may elect to purchase credited service pursuant to this subsection once per plan year. between February 1 and February 28. Payment for the purchase of credited service pursuant to this subsection may be made in lump sum or by a direct transfer or rollover of an eligible rollover distribution from an eligible plan. in accordance with Sec. 17- 23( 6) of the Plan. Payment for the purchase of credited service pursuant to this paragraph may be received no later than ninety ( 90) days after a member' s election to purchase credited service. After the expiration of ninety ( 90) days following a member' s election to purchase credited service. only such service for which payment has been received shall be credited. If no payment has been received within ninety ( 90) days of the member' s election to purchase credited service. said election shall be invalidated. Section 3. Section 17- 23 of the City of Fort Walton Beach General Employees' Retirement Plan is hereby amended to read as follows Sec. 17- 23. Direct transfers of eligible rollover distributions 6) Rollovers or Transfers into the Fund. On or after the effective date of this ordinance, the fund will accept either a direct rollover of an eligible rollover distribution or a member contribution of an eligible rollover distribution direct trustee-to- trustee transfer from an eligible plan under section 457( b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state, for the purpose of purchasing credited service as authorized under the Plan pursuant to section 17 13( 3). Section 4. That all ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 5. That if any section, subsection, sentence, clause, phrase of this ordinance or 2- Exhibit A, 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 6. That this Ordinance shall take effect immediately upon approval by Council and signature by the Mayor, except as otherwise specifically provided herein. ADOPTED~_ 10 J.lD((J MAYOR: ATTEST: a~ CITY CLERK Reviewed and approved as to form: CITY ATTORNEY Reviewed and approved as to legal sufficiency: U A J C- Linn nt Attorney Note: additions are underlined; deletions are stricken. DISPOBI'lION ' 3-  FWB General Employees' Retirement Plan Final Version 9/ 30/ 02 1 EXHIBIT A 2 3 CITY OF FORT WALTON BEACH 4 GENERAL EMPLOYEES' RETIREMENT PLAN 5 6 Sec. 17- 11. Creation of fund. 7 The City of Fort Walton Beach has established and maintains the General Employees' 8 Retirement Fund to provide retirement benefits to participating employees of the City of Fort 9 Walton Beach. The Retirement Fund was created effective January 1, 1966 as part of the City of 10 Fort Walton Beach General Employees' Retirement Plan, and the Plan has been subsequently 11 amended and restated. This Plan, as most recently restated effective upon the adoption of 12 Ordinance No. 1526, and as it may be amended in the future, provides for the operation and 13 administration of the Fund. 14 15 Sec. 17- 11. 1. Definitions A pronoun in the masculine gender shall be construed as including 16 the feminine gender throughout this Plan unless the context clearly indicates otherwise. For the shall apply: 17 purposes of this Plan, the following definitions 18 ( 1) ACCRUED BENEFIT means the earned retirement benefit through the current date as 19 credited under the provisions of this Plan. 20 ( 2) ACTUARIAL EQUIV ALENT means a benefit of equal value or equal cost, computed on 21 the basis of the 1983 Group Annuity Mortality Table and an interest rate of 8%. 22 ( 3) ADMINISTRATOR means the City finance director. 23 ( 4) BENEFICIARY means a person who is designated by a member to receive benefits 24 following the member' s death, in accordance with Sec. 17- 15.4 and Sec. 17- 16. 1. 25 ( 5) CITY means the City of Fort Walton Beach, Florida. 26 ( 6) COMMITTEE means the pension advisory committee. 27 ( 7) COMPENSATION means the basic monthly earnings of an employee expressed as a 28 monthly salary or wage calculated on the basic rate of pay and excluding all overtime extra or additional remuneration in any 29 pay, bonuses, commissions, fmal leave pay and 30 fonn. Page 1  FWB General Employees' Retirement Plan Final Version 9/ 30/ 02 31 ( 8) CONTINGENT ANNUITANT means that person designated by a member under this 32 Plan to receive a life income in the event of the member' s death after retirement under the 33 joint life and survivor alternate options. 34 ( 9) DATE OF EMPLOYMENT shall be the actual calendar date on which an employee, 35 under the definitions of this Plan, is entered on the active employment rolls of the City. 36 ( 10) DATE OF MEMBERSHIP means the date on which an employee commences 37 participation in the Plan. 38 ( 11) DEATH BENEFIT means any amounts paid a beneficiary by reason of the death of a 39 member of this Plan under section 17- 16. 2 of this Plan. 40 ( 12) DISABILITY means any physical or mental condition that, in the opInIon of the 41 committee, totally and pennanently prevents a member from perfonning substantially all 42 of the requirements of any job for which he may be suited by reason of education, 43 training or experience, either with the City of Fort Walton Beach or any other employer. 44 ( 13) DISABILITY RETIREMENT means the retirement of a member of this Plan based upon 45 a finding of total and permanent disability under the provisions of section 17- 15. 2 of this 46 Plan. 47 ( 14) EARLY RETIREMENT means retirement at any time coincident with or following the 48 0 vesting under the Plan. attainment of age fifty-two ( 52) and 1000/ 49 ( 15) EMPLOYEE means a regular, full-time City employee who is on the active employment 50 rolls, except as otherwise provided below. 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