Fort Walton Beach Ordinance — 2175--Amend COO Sec 2.09.03 Police Pension Benefits — reading text

1READING DATE irm Ist gr Ae1 ORDINANCE 2175 2nd fraoa,,,- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, AMENDING THE CITY OF FORT WALTON BEACH POLICE OFFICERS' RETIREMENT FUND; AMENDING SECTION 2. 09. 03 PERTAINING TO BENEFIT AMOUNTS AND ELIGIBILITY; AMENDING THE SECTION PERTAINING TO PRE- RETIRMENT DEATH; 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, 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 Police Officers' Retirement 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; SECTION 1: 5) of the Police Officers' Retirement Fund is That section 2. 09. 03( f)( hereby amended as follows: f) Benefit Amounts and Eligibility. 5) 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 (70'/ 2) three ( 731 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 2: That section 2. 09.03( g)( 2) e of the Police Officers' Retirement Fund is hereby amended and shall read as follows: g) Pre-Retirement Death.  2) Deceased Members Vested or Eligible for Retirement with Spouse as Beneficiary. This subsection ( 2) applies only when the member' s spouse is the sole designated beneficiary. The spouse beneficiary of any member who dies and who, at the date of their death was vested or eligible for early or normal retirement, shall be entitled to a benefit as follows: e. Notwithstanding anything contained in this section to the contrary, in any event, distributions to the spouse beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the member died, or by a date selected pursuant to the above provisions in this section that must be on or before December 31 of the calendar year in which the member would have attained age 2) three ( 73), provided the member had not seventy and one half( 701/ already attained age 72 by December 31, 2022. SECTION 3: That section 2. 09. 03( j)( 5) e of the Police Officers' Retirement Fund is hereby amended and shall read as follows: j) 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 one half( 70'/ 2) three ( 73), provided the member had not already attained age 72 by December 3L 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 4: That sections 2. 09.03( p)( 2) a and 2. 09. 03( p)( 2) b. 1 of the Police Officers' Retirement Fund are hereby amended and shall read as follows:  p) 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 and one half ( 70 1/ 2) 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. 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: 1. 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 ( 70 1/2) three ( 73), provided the member had not already attained age 72 by December 31, 2022, if later, as the surviving spouse elects. SECTION 5: 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 6: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 7: 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 8: That this Ordinance shall become effective upon its adoption on second reading by City Council and signature by the Mayor.  illirT Adopted: - 3— cnu c , c2 TS 1 Z.oA..5 Nic Allegretto, May, Pro Tern Attest: Approved as to gal rm and sufficiency for the City of . rt : lton Beach, only. Kim M. aures, City Clerk Jeffrey Burns ity 7 orney Additions are underlined; : - - ':•.. :. - - „- OAS Wa , ti rI. t .' 1 Pm I FOSTER & FOSTER ACTUARIES AND CONSULTANTS October 19, 2023 VIA EMAIL Board of Trustees City of Fort Walton Beach Polis Officers' Pension Board Re: City of Fort Walton Beach Police Officers' Retirement Fund Dear Board: We have reviewed the proposed Ordinance amending multiple sections pertaining to the distribution of benefits, which changes the required distribution age from 70. 5 to 73 for those that had not reached age 72 by December 31, 2022. We have determined that the adoption of this change will have no impact on the assumptions used in determining the funding requirements of the program. Because the above changes do not result in an immediate change in the valuation results, it is our opinion that a formal Actuarial Impact Statement is not required in support of its adoption. However, since the Division of Retirement must be aware of the current provisions of all public pension programs, it is recommended that you send a copy of this letter and a copy of the fully executed Ordinance to each of the following offices: Mr. Keith Brinkman Mr. Steve Bardin Bureau of Local Retirement Systems Municipal Police and Fire Division of Retirement Pension Trust Funds P. O. Box 9000 Division of Retirement Tallahassee, FL 32315- 9000 P. O. Box 3010 Tallahassee, FL 32315- 3010 If you have any questions, please let me know. Sincerely, Jose h L. Griffin, ASA, EA, MAAA cc: Stu Kaufman, Board Attorney 13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 ( 239) 433- 5500 Fax( 239) 481- 0634 www.foster-foster.com  K. ,,_ „.... 1 I:. pichk, KALI MAN IINSIN I. V' INSl) y Writer' s E- mail: Seanti RobertDKlausner.com January 6, 2025 Via E-Mail: council(a,fwb.org; citymanagerfwb.org; jpetersAfwb.org Mr. Jeff Peters, City Manager City of Fort Walton Beach 107 Miracle Strip Parkway SW Fort Walton Beach, Florida 32548