Fort Walton Beach Ordinance — 2132--Amend COO Section 2.06 Firefighters Pension Fund — reading text

ORDINANCE 2132 M1. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, AMENDING THE CITY OF FORT WALTON BEACH MUNICIPAL FIREFIGHTERS' PENSION TRUST FUND; AMENDING THE SECTION PERTAINING TO BENEFIT AMOUNTS AND ELIGIBILITY; AMENDING THE SECTIONS PERTAINING TO PRE- RETIRMENT DEATH & DISABILITY TO INCORPORATE THE CONCLUSIVE CANCER PRESUMPTION ESTABLISHED BY SECTION 112. 1816, FLA. STAT., AND THE REBUTTABLE DISEASE PRESUMPTIONS UNDER SECTIONS 112. 18, 112. 181 AND 175. 231, FLA. STAT.; AMENDING THE SECTION PERTAINING TO OPTIONAL FORMS OF BENEFITS; AMENDING THE SECTION PERTAINING TO MINIMUM DISTRIBUTION OF BENEFITS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. 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; WHEREAS, after years of study, the National Institute for Occupational Safety and Health ( NIOSH) concluded that firefighters are at a higher risk of developing twenty-one enumerated types of cancer; WHEREAS, the Florida Legislature, in recognition of this elevated cancer risk, has created a conclusive duty -related cancer presumption; WHEREAS, Senate Bill 426 ( SB 426) amends Chapter 112, Florida Statutes, by creating Section 112. 1816, governing disability and death benefits for firefighters; WHEREAS, SB 426 governs all Firefighter Pension Plans in Florida; WHEREAS, the Board of Trustees of the City of Fort Walton Beach Firefighters' Trust Fund has prepared this ordinance to implement SB 426, effective July 1, 2019; 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 Municipal Firefighters' Pension Trust Fund to amend the Plan as set forth below to maintain compliance with the Internal Revenue Code and the Florida Statutes. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, AS FOLLOWS:  SECTION 1: That section 2. 06. 03( f)(6) of the Municipal Firefighters' Pension Trust Fund is hereby amended as follows: f)Benefit Amounts and Eligibility. 6) Required Distribution Date. The member's benefit under this section must begin to be distributed to the member no later than April 1 of the calendar year following the later of the calendar year in which the member attains age seventy and one half "^' =` three 73) provided the member had not alreadv attained age 72 by December 31. 2022. or the year in w SECTION 2: That section 2.06. 03( g)( 1) of the Municipal Firefighters' Pension Trust Fund is hereby amended and shall read as follows: g) Pre -Retirement Death. 1) Service Incurred. The beneficiary of a deceased member whose death was directly caused by the performance of their duty as a Firefighter shall receive the accrued benefit otherwise payable to the member equal to the monthly amount which would have been payable had the deceased member retired under early or normal retirement, or fifty percent ( 50%) of the member's average final compensation, whichever is greater. a. SECTION 3: That section 2. 06. 03( h)( 1) of the Municipal Firefighters' Pension Trust Fund is hereby amended and shall read as follows: h) Disability. 1) Disability Benefits On -Duty. Each member in the pension plan and who shall have become totally and permanently disabled while an active member of the Fort Walton Beach Fire Department to the extent that they are unable, by reason of a medically determinable physical or mental impairment, to render useful and  efficient service as a Firefighter which disability was directly caused by the performance of their duty as a Firefighter, shall, upon establishing the same to the satisfaction of the board, be entitled to a monthly pension equal to three percent 3%) of their average final compensation multiplied by the total years of credited service, but in no event shall the minimum amount paid to the member be less than fifty percent ( 50%) of the average final compensation of the member. Terminated persons, either vested or non -vested, are not eligible for disability benefits. Notwithstanding the previous sentence, if a member is terminated by the City for medical reasons, the terminated person may apply for a disability benefit if the application is filed with the board within thirty ( 30) days from the date of termination. If a timely application is received, it shall be processed and the terminated person shall be eligible to receive a disability benefit if the board otherwise determines that they are totally and permanently disabled as provided for above. a. 0 10 SECTION 4: That section 2. 06. 030)( 5) e of the Municipal Firefighters' Pension Trust Fund is hereby amended and shall read as follows:  0) Optional Forms of Benefits. 5) Retirement income payments shall be made under the option elected in accordance with the provisions of this section and shall be subject to the following limitations: e. The member' s benefit under this section must begin to be distributed to the member no later than April 1 of the calendar year following the later of the calendar year in which the member attains age seventy and ,...,, half ( 701,0 three ( 73), provided the member had not already attained age 72 by December 31, 2022, or the calendar year in which the member terminates employment with the City. 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. SECTION 5: That sections 2. 06. 03( q)( 2) a and 2. 06. 03( q)( 2) b. 1 of the Municipal Firefighters' Pension Trust Fund are hereby amended and shall read as follows: q) Minimum Distribution of Benefits. 2) Time and Manner of Distribution. a. Required Beginning Date. The member' s entire interest will be distributed, or begin to be distributed, to the member no later than the member's required beginning date which shall not be later than April 1 of the calendar year following the later of the calendar year in which the member attains age seventy Fi; qd sne 4; alf 70 4)three ( 73), provided the member had not already attained age 72 by December 31, 2022, or the calendar year in which the member terminates employment with the City. The Plan will make all future required minimum b. Death of Member Before Distributions Begin. If the member dies before distributions begin, the member's entire interest will be distributed, or begin to be distributed no later than as follows: If the member's surviving spouse is the member's 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 a date on or before December 31 of the calendar year in which the member would have attained age seventy and one half (?0 ' =` three ( 73), as the surviving spouse  SECTION 6: 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 7: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 8: 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 9: That this Ordinance shall become effective upon its adoption on second reading by City Council and signature by the Mayor. Adopted: San_uN,, naU 44-z a Richard A. Rynearson, Mayor Attest: Approved as to legal form and sufficiency for the Ci o o t Walton Beach, only. Kim M. ames, City Clerk Kimberly Romano Kopp, City Attorney Additions are underlined; ael@4io,,,, .,. e stwelwfi