Fort Walton Beach Ordinance — 1817 Amend General Employees Pension - Close Plan to New Members — reading text

READING DATE 1st 2nd ORDINANCE NO. 1817 AN ORDINANCE OF THE CITY OF FORT WALTON BEACH, FLORIDA, RELATING TO THE GENERAL EMPLOYEES' RETIREMENT PLAN; AMENDING SECTION 17- 11, CLOSING THE PLAN TO NEW MEMBERS EFFECTNE JANUARY 1, 2010; AMENDING SECTION 17- 11.1, REVISING THE DEFINITION OF EMPLOYEE; AMENDING SECTION 17- 12, DISCONTINUING CONTRIBUTIONS FOR MEMBERS WHO TRANSFER TO THE DEFINED CONTRIBUTION PLAN; AMENDING SECTION 17- 17 TO PROVIDE FOR A REFUND OF CONTRIBUTIONS TO MEMBERS TRANSFERRING TO THE DEFINED CONTRIBUTION PLAN; AMENDING SECTION 17- 20. 1 TO PROVIDE FOR TRANSFERS INTO THE DEFINED CONTRIBUTION PLAN; 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 general employees of the City of Fort Walton Beach; and WHEREAS, the City Council of the City of Fort Walton Beach has determined that it is advisable and appropriate to create a Dermed Contribution Retirement Plan for general employees of the City of Fort Walton Beach, effective January 1, 2010; and WHEREAS, the City Council of the City of Fort Walton Beach has determined that it is advisable and appropriate to close the General Employees' Retirement Plan to new members effective December 31, 2009, and require general employees hired on or after January 1, 2010 to participate in the Defined Contribution Plan; and WHEREAS, the City Council of the City of Fort Walton Beach has determined it advisable and appropriate to allow general employees who are members of the General Employees' Retirement Plan to voluntarily elect to participate in the Defined Contributions Plan, and WHEREAS, to implement the foregoing changes to the City' s retirement program, it is necessary to amend the General Employees' Retirement Plan. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA: Section 1. Section 17 -11 of the City of Fort Walton Beach General Employees' Retirement Plan is hereby amended to read as follows: Sec. 17- 11. Creation of fund: closure of fund to new members effective December 31. 2009. 1) The City of Fort Walton Beach has established and maintains the General Employees' Retirement Fund to provide retirement benefits to participating employees of the City of Fort Walton Beach. The Retirement Fund was created effective January 1, 1966 as part of the City of Fort Walton Beach General Employees' Retirement Plan, and the Plan has been subsequently amended and restated. This plan, as most recently restated effective upon the adoption of Ordinance No. 1526, and as may be amended in the future, provides for the operation and administration of the Fund. 2) The General Employees' Retirement Fund and Plan will be closed to new members effective December 3L 2009. All loyees hired on or after January L 2010 will em1;) become members of the Defined Contribution Plan as established by Resolution 2009- 45. Employees who are members of this Retirement Plan on December 31 ~2009 may~ on or before January 31~ 2010~ elect to transfer to the Defined Contribution plan as follows. Members who are not fully or Dartially vested in this plan on December 31 ~ 2009 may elect to transfer to the Defined Contribution Plan and transfer their member contributions directly to the Defined Contribution Plan. Such non-vested members who elect to join the DerIDed Contribution Plan and transfer their member contributions to the Defined Contribution Plan will not be eligible to receive a benefit from this Plan. Members who are fully or partially vested in this Plan who elect to ioin the Defined Contribution Plan must maintain their member contributions in this Plan upon ioining the Defined Contribution and shall receive a deferred vested benefit from this Plan Plan.. based on their vested interest in this Plan and credited service and final average monthly earnings as of the date they ioin the DerIDed Contribution Plan~in accordance with sec. 17- 17( 2). Section 2. Section 17- 11. 1 of the City of Fort Walton Beach General Employees' Retirement Plan is hereby amended to read as follows: Sec. 17- 11. 1. Dermitions A pronoun in the masculine gender shall be construed as including the feminine gender throughout this Plan unless the context clearly indicates otherwise. For the purposes of this Plan, the following definitions shall apply: Ord. 1817 Page 2 of7 12) DEFINED CONTRIBUTION PLAN means the retirement plan established pursuant to Resolution 2009- 45 in which general employees hired on or after January L 2010 are required to ate and general employees hired prior to January 1~ 2010 may elect to partici1;) ate. Dartici{> DISABILITY means any physical or mental condition that, in the opinion of the committee, totally and permanently prevents a member from performing substantially all of the requirements of any job for which he may be suited by reason of education, training or experience, either with the City of Fort Walton Beach or any other employer. DISABILITY RETIREMENT means the retirement of a member of this Plan based upon a finding of total and permanent disability under the provisions of section 17- 15. 2 of this Plan. EARLY RETIREMENT means retirement at any time coincident with or following the attainment of age fifty-two ( 52) and 100% vesting under the Plan. EMPLOYEE means a regular, full-time City employee who is on the active employment rolls, except as otherwise provided below. The term employee shall also include the city manager and finance director upon their written election to participate in the Plan, but shall not include: city council members, police officers other than the chief of police, aml- and any employee hired or rehired on or after January L 2010. rrrefighters.. EMPLOYER CONTRIBUTIONS means contributions made by the City to this pension fund, as provided under section 17- 12 of this Plan. FIREFIGHTER means any person employed as a City firefighter who is certified as a firefighter as a condition of employment in accordance with the provisions of Florida Statute 633.35, and whose duty it is to extinguish fires, to protect life, and to protect property . FINAL AVERAGE MONTHL Y EARNINGS means a member' s monthly compensation averaged over the highest five ( 5) years out of the last fifteen ( 15) years of employment prior to retirement. FULL Y VESTED means a member with ten ( 10) or more years of credited service, or a member specified in Sec. 17 -15( 2) who has attained a 100% vested percentage. Ord. 1817 Page 3 of7  FUND means the City of Fort Walton Beach General Employees' Retirement Fund. INVESTMENT means the utilization of assets of this Plan as provided under section 17- 12. 1 to preserve the corpus and produce an increase in value through interest, capital gains, discounts or any other form of income consistent with the investment policy. MEMBER means any employee who is a participant in this Plan in accordance with Sec. 17- 13. MEMBER CONTRIBUTIONS means contributions made by a member or previous member of this Plan as required under section 17- 12, including any accumulated interest as may be provided under this Plan. MILITARY SERVICE means active military service in any of the military forces of the United States or the United States Merchant Marine, excluding military reserve or national guard service unless called to full time active service. PLAN means the " General Employees' Retirement Plan," established by this document, known prior to December 11, 1979 as " General Employees' Pension and Retirement Fund Program", as it may be amended from time to time. POLICE OFFICER means any person employed full time by the City who is certified or required to be certified as a law enforcement officer in compliance with Florida Statute 943. 1395, who is vested with authority to bear arms and make arrests, and whose primary responsibility is the prevention and detection of crime or the enforcement of the penal, criminal, traffic or highway laws of the state. This definition includes all certified supervisory and command personnel whose duties include, in whole or in part, the supervision, training, guidance, and management responsibility of full-time law enforcement officers, part-time law enforcement officers, or auxiliary law enforcement officers, but does not include part- time law enforcement officers or auxiliary law enforcement officers as the same are defined in Florida Statutes 943.10( 6) and 943.10( 8), respectively. RETIREE means any former member who is receiving benefits under this Plan. 29) RETIREMENT means separation from City emDloyment with receipt of benefits under this Plan. Ord. 1817 Page 4 of7  30) RETIREMENT BENEFITS means any amount payable to a retiree, contingent annuitant or beneficiary in accordance with the provisions of this Plan. TREASURER means the City rIDance director who shall serve as treasurer of this fund. TRUSTEES means the City Council and any successor City Council as it shall change from time to time through election of new members. Section 3. Section 17- 12 of the City of Fort Walton Beach General Employees' Retirement Plan is hereby amended to read as follows: Sec. 17- 12. Members and employer contributions. 1) Participating members shall contribute to the Plan as follows: d) A member' s contributions to the Plan shall cease upon termination of employment, retirement, attaining forty ( 40) years of credited service, ef-electing a normal retirement benefit option in accordance with section 17- 15( 3)(b) and attaining the maximum benefit percentage provided under that option; or upon commencement of participation in the Defined Contribution Plan. Section 4. Section 17- 17 of the City