HomeMy WebLinkAbout2024 05 06 Informational 201 Winter Springs Pension InformationINFORMATIONAL AGENDA ITEM 201
CITY COMMISSION AGENDA | MAY 6, 2024 REGULAR MEETING
TITLE
City of Winter Springs Pension Information
SUMMARY
At the March 25th 2024 City Commission meeting it was requested that the
Commission discuss the City's pension plan. To assist in the facilitation of future
dialogue staff compiled publicly available pension information for employers in
Seminole County for the Commission to review. Staff is requesting that any follow up
questions regarding this information be sent to the City Clerk by May 17th 2024. Staff
will answer the questions received and schedule a regular item at a future commission
meeting.
FUNDING SOURCE
RECOMMENDATION
Staff is recommending The City Commission review the information attached to this
item.
9
R E T I R E M E N T
B E N E F I T
C O M P A R I S O N
R E T I R E M E N T
B E N E F I T
C O M P A R I S O N
10
T H I S C O M P A R I S O N I N C L U D E S T H E F O L L O W I N G
B E N E F I T S A N D I N F O R M A T I O N .
D E F I N E D C O N T R I B U T I O N
E M P L O Y E R C O N T R I B U T I O N
E M P L O Y E R M A T C H I N G C O N T R I B U T I O N
F L O R I D A R E T I R E M E N T S Y S T E M (F R S ) E M P L O Y E E C O N T R I B U T I O N
D E F I N E D B E N E F I T
P L A N M A N A G E M E N T
D E F I N E D B E N E F I T M U L T I P L I E R
E M P L O Y E E C O N T R I B U T I O N
M A X I M U M A C C R U E D B E N E F I T
A N N U A L P E N S I O N A B L E O V E R T I M E
C O S T O F L I V I N G B E N E F I T
D E F E R R E D R E T I R E M E N T O P T I O N P L A N "D R O P "
N O R M A L R E T I R E M E N T A G E A N D Y E A R S O F S E R V I C E R E Q U I R E D
E A R L Y R E T I R E M E N T A G E A N D Y E A R S O F S E R V I C E R E Q U I R E D
E A R L Y R E T I R E M E N T R E D U C T I O N R U L E S
T H I S R E P O R T I S A C O M P R E H E N S I V E
C O M P A R I S O N O F R E T I R E M E N T
B E N E F I T S W I T H I N S E M I N O L E C O U N T Y .
T H I S R E P O R T I S A C O M P R E H E N S I V E
C O M P A R I S O N O F R E T I R E M E N T
B E N E F I T S W I T H I N S E M I N O L E C O U N T Y .
11
0
5
10
15
20
Winter SpringsAltamonte SpringsCasselberryLake MaryLongwoodOviedoSanford / Seminole CountySanford / Seminole CountyD E F I N E D C O N T R I B U T I O NDEFINED C O N T R I B U T I O N
T H E P E R C E N T A G E O F P A Y T H E E M P L O Y E R
C O N T R I B U T E S I N A D D I T I O N A L T O W H A T T H E
E M P L O Y E R W I L L M A T C H W I T H E M P L O Y E E
C O N T R I B U T I O N .
5 %
1 0 %1 0 %
2 .5 %
4 %
1 0 %
5 %
1 0 %
2 .5 %
E M P L O Y E R C O N T R I B U T I O N
E M P L O Y E R M A T C H I N G C O N T R I B U T I O N
E M P L O Y E E R E Q U I R E D C O N T R I B U T I O N
3 %
3 %
1 6 %
8 .3 %
F R S
R E G U L A R
C L A S S
F R S
S P E C I A L
R I S K
C L A S S
12
Plan
Management
Defined
Benefit
Multiplier
Employee
Contribution
Maximum
Accrued
Benefit
Annual
Pensionable
Overtime
Hours
Winter
Springs City 3%5%90%150
Winter
Springs City 2.5%5%90%150
Altamonte
Springs City 3%3%100%300
Casselberry City 3%3%100%300
Lake Mary City 3.2%5%100%300
Longwood F.S.S. 185 3%1%99%300
Oviedo City 3%6%100%300
Sanford FRS 3%3%100%300
Seminole
County FRS 3%3%100%300
FRS FRS 1.60%3%100%300
T H I S R E P O R T I S A C O M P R E H E N S I V E C O M P A R I S O N O F
P E N S I O N P L A N B E N E F I T S W I T H I N S E M I N O L E C O U N T Y .
T H I S R E P O R T I S A C O M P R E H E N S I V E C O M P A R I S O N O F
P E N S I O N P L A N B E N E F I T S W I T H I N S E M I N O L E C O U N T Y .
D E F I N E D B E N E F I TDEFINED B E N E F I T
(Special Risk Employee)
(Regular Class /
General Employee)
(Special Risk Employee)
(General Employee )* Closed Plan
(Special Risk Employee)
(Special Risk Employee)
(Special Risk Employee)
(Special Risk Employee)
(Special Risk Employee)
(Special Risk Employee)
13
Annual Cost of
Living Benefit
(COLA)
DROP
Program
Winter Springs 0%No
Altamonte Springs 3%No
Casselberry 3% after 5 years No
Lake Mary 0%Yes - 5 years
Longwood 0%No - **DRAGO
Oviedo 0%Yes - 5 years
Sanford *3%Yes - 8 years
Seminole County *3%Yes - 8 years
FRS - Regular Class *3%Yes - 8 years
T H E D E F E R R E D R E T I R E M E N T O P T I O N P L A N (“D R O P ”) I S A
V O L U N T A R Y P R O G R A M T H A T A L L O W S E M P L O Y E E S T O H A V E
T H E I R M O N T H L Y P E N S I O N B E N E F I T D E P O S I T E D I N A N
I N T E R E S T -B E A R I N G A C C O U N T W H I L E T H E Y C O N T I N U E T O
W O R K I N T H E I R C U R R E N T D E P A R T M E N T A N D R E C E I V E T H E I R
S A L A R Y A N D B E N E F I T S A S A N A C T I V E E M P L O Y E E .
D E F I N E D B E N E F I TDEFINED B E N E F I T
** - DRAGO - Defined Retirement Accumulation Group Obligation Fund
* - only applies to years of service prior to 2011
14
Normal Retirement
Age / Years of Service
Early Retirement
Age / Years of
Service
Annual actuarial
reduction if
collected before
Normal Retirement
Winter Springs 65 / 10 55 / 15 years
6.5% -7.5% reduction per
year
(actuarial calculation)
Altamonte
Springs
55 / 6 or
25 years regardless of age Any Age / 6 years 3% reduction per year
Casselberry 55 / 10 or 52 / 20 Any Age / 6 years 3% first 5 years, then 5%
each additional year
Lake Mary 55 / 5 or
20 years regardless of age 50 / 5 years 3% reduction per year
Longwood 50 / 5 or
25 years regardless of age None N/A
Oviedo 55 / 10 or
25 years regardless of age 45 / 10 years 3% reduction per year
Sanford 55 / 8 or
25 years regardless of age
Any Age / 8 years 5% reduction per year
Seminole
County
55 / 8 or
25 years regardless of age
Any Age / 8 years 5% reduction per year
FRS - Regular
Class
65 / 8 or
33 years regardless of age
Any Age / 8 years 5% reduction per year
N O R M A L A N D E A R L Y R E T I R E M E N T A G E A N D Y E A R S O F
S E R V I C E R E Q U I R E D
N O R M A L A N D E A R L Y R E T I R E M E N T A G E A N D Y E A R S O F
S E R V I C E R E Q U I R E D
D E F I N E D B E N E F I TDEFINED B E N E F I T
15
The Altamonte Springs Retirement System
General Employees’
Defined Benefit Pension Plan
Member Handbook
for General Employees
December 2022 Edition
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TABLE OF CONTENTS
Introduction .................................................................................................................................... 3
Basic Plan Information .................................................................................................................... 5
Board of Trustees ............................................................................................................................ 6
Membership.................................................................................................................................... 6
Contributions .................................................................................................................................. 6
Beneficiary Designation .................................................................................................................. 7
Vesting ............................................................................................................................................ 8
Terminating Employment Before Retirement ................................................................................ 8
Your Retirement Benefit ............................................................................................................... 10
Other Benefits Not Provided by this Pension Plan ....................................................................... 12
Retiring from the City ................................................................................................................... 13
Retirement Benefit Options .......................................................................................................... 14
Disability Benefits ......................................................................................................................... 15
Divorce or Legal Separation: Qualified Domestic Relations Order ............................................... 16
Survivor Benefits ........................................................................................................................... 17
Other Survivor Benefits Not Provided by this Pension Plan ......................................................... 18
After Retirement ........................................................................................................................... 18
Forfeiture of Benefits .................................................................................................................... 19
Claims Procedures ........................................................................................................................ 21
General Information ..................................................................................................................... 21
Financial and Actuarial Information ............................................................................................. 23
Glossary of Terms ......................................................................................................................... 24
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INTRODUCTION
Upon hiring, all full time City employees are automatically enrolled in one of the primary
employee pension plans offered by the City. The various primary retirement plans include:
Primary Retirement Plans
The Florida Retirement System (FRS)
Includes all full-time employees hired prior to January
1, 1996.
The Altamonte Springs Police
Officers’ Defined Benefit Pension
Plan
Includes all full-time Police Officers hired on or after
January 1, 1996.
The Altamonte Springs General
Employees’ Defined Benefit Pension
Plan
Includes full-time employees other than Police
Officers hired on or after January 1, 1996
The Altamonte Springs General
Employees’ Defined Contribution
Investment Plan
Includes General Employees who have elected to move
from the General Employees’ Pension Plan to the
General Employees Investment Plan. This is an
investment plan. Participants make their own
investment decisions. This plan is not available to
Police Officers.
For pension purposes full-time employees carry one of several classifications. These include:
Police Officer
Sworn Police Officers employed by the City as Police Officers
General Employee
All full-time employees other than Police Officers further classified as either –
Regular Employee.
General Employees other than Senior Management
Senior Management.
Department Directors, City Manager, and Elected Officials.
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In addition to the primary retirement plans the City offers supplementary retirement plans to
full-time employees. These include:
Supplemental Retirement Plans
Executive Employees Investment
Pension Plan
Includes department directors, deputy directors, and
certain other designated positions. This is an
investment plan funded with contributions from the
City. Employee contributions are neither required to
allowed. Participants make their own investment
decisions.
The Police Officers’ Share Plan Includes all full-time Police Officers who are members
of the Police Officers’ Defined Benefit Pension Plan.
This is an investment plan funded with contributions
from the City. Employee contributions are neither
required nor allowed. Participants make their own
investment decisions.
The Altamonte Springs Deferred
Compensation Pension Plan (Sec 457
Plan)
This plan is voluntary and open to all full-time
employees. It is funded with pre-tax employee
contributions. The City does not may any
contributions to this plan. Participants make their
own investment decisions. See page 13 for additional
information on this plan.
This Summary Plan Description is for General Employees enrolled in the Altamonte Springs
General Employees’ Defined Benefit Pension Plan. There are separate summary plan
descriptions for the other plans. This guide explains your retirement plan - its benefits and
policies, and your rights as a member of the City of Altamonte Springs General Employees’
Pension Plan. Membership in the Pension Plan is an important benefit provided to you by the
City.
This guide is a basic employee handbook and is intended to be a reference for you. Inside you
will find explanations of certain provisions of your Pension Plan. You are encouraged to study
these provisions in order to become familiar with the benefits provided by the Plan.
This guide is only a brief explanation of the Plan. As much as possible, this guide has been written
in nontechnical terms, avoiding the formal language of retirement laws and rules. However, if
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there are any conflicts between this document and the ordinances of the City of Altamonte
Springs, State law, or Federal law, the ordinances, State laws, and Federal laws will govern. A copy
of the ordinances governing the Plan can be obtained from the City Clerk. If you have questions
about a particular item or issue, please contact the City’s Human Resources Department.
BASIC PLAN INFORMATION
Name of Plan The Altamonte Springs General Employees’ Pension Plan (the Plan).
Type of Plan The Plan is a defined benefit plan, qualified under section 401(a) of the
Internal Revenue Code.
Administration The Plan is administered by the Altamonte Springs General Employees’
Pension Plan Board of Trustees (Code Ch.2-16.03).
Service of Legal Process The City Manager is the person designated for service of legal process.
The contact information is:
City Manager, City of Altamonte Springs
225 Newburyport Avenue
Altamonte Springs, FL 32701
Provisions of Law The Plan was established in 1995 and is operated pursuant to
applicable law including but not limited to the United States Internal
Revenue Code, Chapter 112, Florida Statues, City Code of Ordinances
(“Code”), Chapter 2, Article II, Division 1, and certain other City
ordinances and resolutions.
Funding The Plan is contributory meaning contributions are paid by both the
members and the City. However, only those employees hired on or
after January 1, 2012, are required to make contributions to the Plan
(Code Ch. 2-16.05).
Plan Year The plan year is October 1st through September 30th.
Employment Rights Not
Implied
Membership in the Plan does not give you the right to be retained in
the employ of the City, nor does it give you a right or claim to any
benefit you have not accrued under the terms of the Plan.
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BOARD OF TRUSTEES
The City of Altamonte Springs General Employees' Pension Plan is a defined benefit pension plan
administered by the City Commission acting as the Board of Trustees. The Board meets once
every three months usually in City Hall. The dates, times and locations of these meetings are
publicly posted. The meetings are open to the public. (Code Ch. 2-16.03).
MEMBERSHIP
Membership in the Plan
Each full-time employee hired on or after January 1, 1996, and not classified as a sworn City Police
Officer becomes a Plan Member as a condition of employment (Code Ch. 2-16.02(1)).
Optional Retirement Program
The Altamonte Springs General Employees Investment Plan is the defined contribution plan
alternative to the Altamonte Springs General Employee’s Defined Benefit Pension Plan, and is
available to all General Employees not in the Florida Retirement System.
Any member in the General Employees’ Defined Benefit Plan can, at any time prior to retirement
or otherwise leaving employment with the City, choose to opt out of the Defined Benefit Plan
and join the General Employees’ Investment Plan. If you choose this option the City will transfer
from the defined benefit Plan to the Investment Plan an amount of money equal to the present
value of your accumulated benefit obligation under the Defined Benefit Plan. The Investment
Plan is contributory for ALL participants regardless of when hired. ALL members are required to
contribute one-percent (1%) of compensation to the Plan. The decision to transfer from the
Defined Benefit program to the Investment Plan is irrevocable. You cannot go back again. (Code
Ch. 2-16.02(5)).
For more information on the Investment Plan contact the Human Resources Department.
CONTRIBUTIONS
The Plan is an employee contributory plan. This means some employees are required to
contribute to the Plan.
General Employees hired prior to January 1, 2012 are not required to contribute to the Plan.
General Employees hired on or after January 1, 2012 are required to contribute one percent (1%)
of compensation to the Plan. Your Member contributions are “picked up” by the City in
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accordance with sec. 414(h) of the Internal Revenue Code, which means those contributions are
considered employer contributions for tax purposes, but your pay is reduced by an amount equal
to the Member contribution amount. This allows your employee contributions to be made pre-
tax. Use of these funds is restricted for the sole purpose of funding the Plan (Code Ch. 2-16.05).
The City contributes to the Plan an amount equal to the normal cost of the Plan and an amount
required to fund any actuarial deficiency shown by the most recent actuarial valuation. The City
is ultimately responsible for contributing sufficient funds to ensure the Plan remains adequately
funded.
Refund of Contributions
You may request a refund of contributions you made to the Plan if you terminate all employment
with the City. Your refund will not include contributions made by or from any source other than
yourself and will not include any interest. If your employee contributions are refunded, you
waive the right to a future benefit under the Plan, and you lose any accrued pension benefits
forever. Further information can be obtained from the City’s Human Resources Department (Code
Ch. 2-16.09(1)).
BENEFICIARY DESIGNATION
Before You Retire
A beneficiary is a person or persons named by you to receive any pension benefits due if you die
before retirement. When you started work you should have filled out a form naming one or more
beneficiaries to receive any pension benefits due if you die before retirement. You may name any
person or persons you choose as beneficiary (Code Ch. 2-16.12).
While employed by the City, you may change the beneficiary at any time by completing a new
designation of beneficiary form. This is important to remember if your designated beneficiary
dies or your marital or family status changes. A Member’s divorce decree or will has no bearing
on how Member survivor benefits are paid. Any benefits due upon your death are paid only to
the designated beneficiaries or to your estate if you have not named a beneficiary or your
designated beneficiary has died.
When You Retire
When you retire you will be asked to rename a beneficiary and to choose a retirement option on
your application for retirement. Retirement options are explained later in this document under
the section titled “RETIRING FROM THE CITY” (Code Ch. 2-16.10(2)).
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If you choose option 1 or 2, you may name a beneficiary as described above.
If you choose option 3, you must name as your beneficiary a person who qualifies as a joint
annuitant.
After You Retire
If you retire under option 1 or 2, you may change your designated beneficiary at any time. If you
choose option 3 you may change your joint annuitant only two times after your retirement
benefit has started, and only if the joint pensioner is still living at the time of the change. When
you change your joint annuitant, the monthly benefit you receive will be adjusted based on your
current age and the age of your new joint annuitant (Code Ch. 2-16.09(2) & (3)).
VESTING
Being vested means you are eligible to receive a current or future retirement benefit. You vest in
the Plan upon the completion of six years of creditable service. Once you vest, you are eligible
for a future benefit when you leave employment with the City and apply for your retirement
benefit. Being vested does not entitle you to a disability benefit based on a disability that occurs
after you terminate employment (Code Ch. 2-16.01(26)).
You will lose your vested rights if:
You forfeit your benefits as described under the section titled “FORFEITURE OF BENEFITS”
(Code Ch. 2-16.20).
You receive a refund of your member contributions (Code Ch. 2-16.09 (1)).
TERMINATING EMPLOYMENT BEFORE RETIREMENT
When you terminate your employment as a general employee before retiring, you have some
decisions to make. Your available options will vary depending upon your vesting status at the
time of your termination (Code Ch. 2-16.09).
Before You Are Vested
If you terminate your employment with the City prior to being vested, retirement is not an option.
However, you can:
Request and receive a refund of your member contributions, without interest, forfeiting all
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future benefits, or
Leave your member contributions on deposit with the Plan. The service credit is not lost and
will be combined with any additional service credit you may earn for covered employment in
the future.
If you are not re-employed by the City as a General Employee within five (5) years of
termination, your member contributions will automatically be returned to you and you will
lose any accrued pension benefits forever.
After You Are Vested
If you are vested when you terminate your employment with the City, you can:
Request and receive a refund of your member contributions, or
Leave your member contributions on deposit with the Plan. The service credit is not lost and
will be combined with any additional service credit you may earn for covered employment in
the future, or
Retire. Depending on your age, you could take a normal retirement or early retirement
immediately or you could defer your retirement until a future date of your choice:
If you qualify for normal retirement, you are entitled to an unreduced monthly
retirement benefit determined in the same manner as for normal retirement and based
on your Credited Service, Average Final Compensation and the benefit accrual rate as of
your date of termination.
If you choose to retire early (before reaching your normal retirement date) your benefit
will be reduced based upon your age at retirement.
To avoid or minimize benefit reduction for early retirement, you could choose to
postpone your retirement. If you defer retirement, the amount of your benefit will be
calculated using your age at the time you begin receiving retirement benefits.
If you do not make a retirement decision, your retirement benefits must begin by April 1 of the
calendar year immediately after you reach age seventy and one-half (70 ½), or, upon reaching
your normal retirement date, whichever occurs first, the Plan will begin paying retirement
benefits to you under benefit option 1. Once payments begin, you cannot change this option.
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YOUR RETIREMENT BENEFIT
Retirement Benefit Formula
The monthly pension benefit payment you receive when you retire depends on your Average
Final Compensation, Age, Percentage Value, Years of Creditable Service, and the benefit payment
option you select. The formula for calculating the normal monthly retirement benefit is as follows
(Code Ch. 2-16.06(2)(b)):
First, calculate the normal annual retirement benefit like this:
Average
Final
Compensation
times Percentage
Value times
Years of
Creditable
Service
equals Normal Annual
Retirement Benefit
Then calculate the normal monthly retirement benefit by dividing the normal annual retirement
benefit by 12 like this:
Normal Annual
Retirement Benefit divided by 12 equals Normal Monthly
Retirement Benefit
Average Final Compensation is the average annual compensation of the five best years of
the last ten years of Creditable Service prior to retirement. Compensation includes regular
earnings, overtime pay of up to 300 hours annually, vacation pay, and sick pay. Compensation
does not include payments for bonuses, clothing, meal, telephone (cell phone) allowance,
mileage, or vehicle allowances, or lump sum payments of any vacation or sick leave that was
accrued on or after July 1, 2011. For General Employees hired prior to July 1, 2011,
compensation includes payments for unused annual leave at termination not to exceed the
lesser of the amount of leave accrued as of June 30, 2011, or 500 hours (Code Ch. 2-16.01(3)).
Percentage Value is the value you receive for each year of your Creditable Service.
Regular Employees
For regular employees this value is 1.6%. However, if at the time of retirement, you have
more than 30 years of Creditable Service or you are older than 62 then the applicable
benefit rate is as follows (Code Ch. 2-16.06(2)):
• Age 63 or at least 31 years of creditable service the rate for all years is 1.63%
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• Age 64 or at least 32 years of creditable service the rate for all years is 1.65%
• With at least 33 or more years of creditable service the rate for all years is 1.685%
Senior Management Employees
For senior management employees this value is 2% for all years of creditable service as a
senior management employee.
Creditable Service is your total number of years and fractional parts of years of service you
worked in a covered position with the City (Code Ch. 2-16.01(10)).
Coordination of Benefits. If you transfer from the Altamonte Springs Police Officers’ Pension
Plan to this plan, or from this plan to the Altamonte Springs Police Officers’ Pension Plan, due
to a change in employment status your pension status is subject to the following rules:
Date of Transfer.
The date of transfer shall be the date when the change in employment occurs.
Calculation of Benefits.
Your total retirement benefits will consist of a combination of the following:
• Benefits payable by the previous plan
Your accumulated contributions remain funds of the previous plan. If you were
vested in the previous plan at the date of transfer your retirement benefit from the
previous plan will be calculated by using the benefit multiplier and your salary as of
the date of transfer. This benefit will commence on your normal retirement date
pursuant to this plan. You are not eligible for any other benefits from the previous
plan. If you were not vested in the previous plan prior to transfer, you are not eligible
for a benefit from the previous plan.
• Transfer from this plan
If you become eligible for membership in the Altamonte Springs Police Officer’s
Pension Plan because of a change in status, the rules regarding your pension status
following the transfer are as described above.
Other Types of Creditable Service. In addition to the service credit you earn for current work,
you may be able to claim credit for certain other types of service to increase your benefits.
To receive extra service credit, you may be required to pay additional retirement
contributions. Other types of qualified creditable service include the following:
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Qualified Military Service Credit.
A military leave-of-absence occurs when you leave your City General Employee position
for the purpose of voluntary or involuntary service in the armed forces of United States.
If you return to City employment as General Employee within one year of release from
active military service, you may receive credit for up to five years of such active military
service. You must pay to the plan the employee contributions missed during your
absence.
Workers’ Compensation Credit.
You may claim up to two years of creditable service for periods you receive temporary
Workers’ Compensation payments if you return to City employment as a General
Employee for at least 30 days or you retire on a disability.
Leave-of-Absence Without Pay Credit.
A leave-of-absence without pay is a period when you are on an approved leave from work
without pay, and plan to return to work after your leave. You may claim up to two years
of such time as creditable service if you have at least 10 years of creditable service, the
leave was approved, in writing, in advance, by both the City and the Board of Trustees,
you return to work as a City General Employee immediately upon termination of the
leave-of-absence and remain employed for at least 30 days, and you pay into the Pension
Trust Fund the full amount of both the City and employee contributions, based on your
total monthly compensation in effect for the pay period immediately preceding the
period of authorized leave of absence, with interest, for the period of creditable service
claimed.
OTHER BENEFITS NOT PROVIDED BY THIS PENSION PLAN
Social Security Coverage
As a City employee you are automatically covered for Social Security and Medicare. Your pension
plan benefits provided through the General Employees’ Pension Plan are not offset (reduced) by
Social Security benefits you receive. Social Security contributions are automatically deducted
from your salary and matched by the City.
Although Social Security coverage is a part of your overall benefit package, the City has no control
over your Social Security or Medicare benefit payments. Information on Social Security or
Medicare benefits can be obtained from the local Social Security office or call the toll-free
number, 1-800-772-1213, or visit their website at www.ssa.gov.
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Deferred Compensation Program
In addition to the pension benefits provided by the Pension Plan, as a City employee you have
the opportunity to participate in the City’s deferred compensation program operated under
Section 457 of the Internal Revenue Code. This program provides you the opportunity to build
tax-deferred retirement savings separate and distinct from the Pension Plan.
You can elect to defer a portion of your regular compensation on a pre-tax basis through payroll
deduction. This pre-tax advantage allows you to defer federal income taxes on the amount you
invest, as well as earnings on your investments, until you withdraw your money from the
program, usually during retirement when you may be in a lower tax bracket. The amounts you
withdraw from your deferred compensation account are in addition to pension plan benefits or
any other benefits you may receive.
This program is completely voluntary with deposits into your deferred compensation account
made solely by you. Your pension plan benefits provided through the Pension Plan are not
affected in any way by your participation in the deferred compensation program. Further
information can be obtained from the City’s Human Resources Department.
RETIRING FROM THE CITY
Normal Retirement
Your normal retirement date is the time you are first eligible to receive a retirement benefit
without a reduction of the benefits because of your age. You qualify for normal retirement at the
earlier of (Code Ch. 2-16.06(1)):
The attainment of age 62 and the completion of 6 years of Creditable Service, or,
The completion of 30 years of Creditable Service, regardless of age.
Early Retirement
If you are vested but have not reached your normal retirement date or age, you can take early
retirement. The amount of the retirement benefit will be reduced by five percent (5%) for each
year (five-twelfths (5/12) of one (1) percent for each month) the commencement of retirement
benefits precedes your normal retirement date (age 62 with at least 6 years of creditable service,
or, 30 years of creditable service regardless of age). For example, if you were to retire after 25
years of creditable service, 5 years before the full 30 years of service necessary for normal
retirement, your monthly pension benefit would be reduced by 25% (5 years X 5% = 25%) (Code
Ch. 2-16.06(4) & (5)).
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RETIREMENT BENEFIT OPTIONS
Upon retirement, before you can begin receiving your pension benefits, you must choose one of
the three benefit options, or methods of payment, described below. Once you cash or deposit a
benefit payment your option selection cannot be changed. Option 1 is the normal retirement
option. Options 2 and 3 are adjusted to be actuarially equal to Option 1.
Option 1 Life Only (normal retirement option)
This option provides a monthly pension benefit for so long as you live. Upon your
death no further benefits will be paid. This is considered the normal retirement option
(Code Ch. 2-16.06(3)).
Option 2 10 Years Certain and Life Thereafter
Like Option 1, this option provides a monthly pension benefit to you for so long as you
live. However, if you die within 10 years after your effective retirement date, your
beneficiary will receive a monthly benefit payment in the same amount as you were
receiving for the balance of the 10-year period. No further benefits are then payable.
If you die 10 or more years after payment of your benefits commenced, no benefits
will be payable to your beneficiary. Because of the 10 year guarantee the Option 2
monthly benefit is less than the Option 1 benefit (Code Ch. 2-16.10(1)(a)).
Option 3 Joint Annuitant
This option provides a reduced monthly pension benefit to you while both you and
your joint annuitant are living. Upon the death of you or your joint annuitant, the
monthly pension benefit payment to the survivor will be adjusted to 100%, 75%, 66
2/3% or 50% of the amount you were receiving while you both were living. At the time
you retire, you must choose the adjustment percentage. No further benefits are
payable after both you and your joint annuitant are deceased (Code Ch. 2-16.10(1)(b)).
Option 4 Social Security Option
If you retire from the City before Social Security benefits are payable you may choose
to receive an increased retirement benefit from this Plan until such time as Social
Security benefits shall be assumed to commence and a reduced benefit thereafter in
order to provide, to the extent possible, a more level retirement allowance. (Code Ch.
2-16.10(1)(c)).
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DISABILITY BENEFITS
Regular Disability Benefits
You are eligible for regular (not-in-line-of-duty) disability benefits if you have completed at least
8 years of creditable service. Your disability must be total and permanent and the injury or illness
causing the disability must have occurred before you terminate employment with the City. The
minimum regular disability retirement benefit paid under Option 1 is 25% of your average final
compensation. Your actual earned benefit, based on your years of service, will be used if it is
higher than the minimum of 25% (Code Ch. 2-16.08).
In-Line-of-Duty Disability Benefits
You are eligible for in-line-of-duty disability benefits beginning on your first day of covered
employment, regardless of length of service. An in-line-of-duty disability must be total and
permanent and, in the opinion of the Board, directly caused by an injury or illness that happens
in the performance of duties required by your job. The minimum in-line-of-duty disability
retirement benefit paid under Option 1 is 42% of your final average compensation. Your actual
earned benefit, based on your years of service, will be used if it is higher than the minimum of
42% (Code Ch. 2-16.08(3)).
Conditions Disqualifying Disability Benefits
You may not claim, nor will you receive, disability pension benefits if the disability is the result of
any of the following (Code Ch. 2-16.08(2)).
Excessive or habitual use of any drugs, intoxicants or narcotics.
Injury or disease sustained while willfully and illegally participating in fights, riots or civil
insurrections.
Injury or disease sustained while committing a crime.
Intentional, self-inflicted injury.
Injury or disease sustained while serving in any branch of the armed forces.
Injury or disease sustained after your employment as a General Employee of the City has
been terminated.
Willful, wanton or intentional misconduct or gross negligence.
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False, misleading or fraudulent statements made to obtain retirement benefits.
Injury or disease sustained while you were working for anyone other than the City and arising
out of such employment.
A condition pre-existing your membership in the Plan.
Optional Disability Benefits
In addition to the disability benefits provided by this Plan, the City provides all City employees
the opportunity to purchase additional disability insurance through payroll deduction at group
rates. The City offers both short-term and long-term disability options. Short-term covers
temporary disabilities lasting less than 6 months. Long-term covers long-term or permanent
disabilities lasting 6 months or more. These policies pay income directly to you in the event you
become disabled as defined by the insurance policies. However, disability benefits provided by
these optional disability insurance programs may be affected by the disability benefits provided
by the Plan. Disability benefits provided by the Pension Plan are not offset or reduced by benefits
you may receive from these optional disability insurance programs. Further information on these
optional disability insurance programs can be obtained from the City’s Human Resources
Department.
Other Disability Benefits
If you become disabled you may be eligible for benefits through Florida’s Workers Compensation
Program and/or the Federal Social Security Administration. However, these programs are
administered separately from the Pension Plan. For questions relating to workers compensation
please refer to the Florida Department of Financial Services, Division of Workers Compensation.
For questions relating to Social Security please refer to the Social Security Administration.
DIVORCE OR LEGAL SEPARATION: QUALIFIED DOMESTIC RELATIONS ORDER
The Board will comply with a qualified domestic relations order (QDRO), a legal order resulting
from a divorce or legal separation that gives the divorced spouse or other dependent their share
of an asset, such as a pension or retirement plan benefit. The Plan does not write the QDRO. This
must be done by you or your attorney. You must submit the domestic relations order to the Board
of Trustees. The Board shall determine the qualified status of the order and notify the member
and each alternate payee, in writing, of its determination.
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SURVIVOR BENEFITS
Regular Survivor Benefits
If you die other than in the line of duty with less than 6 years of creditable service the Plan will
refund 100% of your accumulated Member contributions to your named beneficiary. Other than
that there are no pension benefits available to your survivors.
If death occurs after you have completed 6 years of creditable service, your beneficiary, who is
your spouse, dependent child or any person receiving at least 50% of his or her support from you,
may choose one of the following benefits:
A refund of your Member contributions, without interest; or
An immediate or deferred lifetime monthly benefit calculated as if you had retired on the
date of death and chosen the 100% joint and survivor benefit option (Option 3). The benefit
will be adjusted for early retirement if you were not of normal retirement age at the time of
your death (Code Ch. 2-16.07(2)).
If your beneficiary does not qualify as a joint annuitant, he or she is entitled only to a refund of
your Member contributions. No monthly benefit would be payable.
If you die while performing Qualified Military Service your beneficiaries are entitled to any
benefits you would have been entitled to had you resumed employment and then died while
employed.
In Line of Duty Survivor Benefits
If you die in the line of duty your spouse is entitled to a lifetime monthly benefit equal to one-
half of your last monthly salary or your spouse may elect to receive an immediate or deferred
lifetime monthly benefit calculated as if you had retired on the date of death and chosen the
100% joint and survivor benefit option (Option 3). The benefit will be adjusted for early
retirement if you were not of normal retirement age at the time of your death.
Your spouse can receive these benefits regardless of your length of service and even if you named
someone else as your beneficiary. If you leave no surviving spouse or if your spouse should die,
the benefit will be paid on behalf of your dependent children until the youngest child reaches 18
years of age or marries, whichever comes first. These survivor benefits supersede any other
distribution that might have been provided by your designation of beneficiary (Code Ch. 2-16.07(1)).
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OTHER SURVIVOR BENEFITS NOT PROVIDED BY THIS PENSION PLAN
Life Insurance
In addition to the pension benefits provided by the Plan, if you die while actively employed by
the City as a General Employee, your survivors may be entitled to other death benefits. The City,
at its expense, provides life insurance for every full-time employee.
If you die while employed by the City this policy will provide a single death benefit to survivors
equal to your annual salary. If you die from an accident this amount is doubled.
If you die from an accident while on the job there is an additional survivor benefit payable to your
survivors.
In addition to the preceding, you may purchase, at your expense, additional life insurance
coverage at group rates through payroll deduction. Further information on this City program can
be obtained from the City’s Human Resources Department.
AFTER RETIREMENT
Cost-of-Living Increase
Retirees receive an annual 3% cost-of-living increase effective with the benefit payment for
October of each year. The first cost-of-living increase will be a prorated amount if you have not
been retired for one full year (Code Ch. 2-16.11).
Retiree Health Insurance Coverage
The City offers retirees, at the retirees’ expense, the option of continuing to participate in the
City’s employee group health insurance plan. The premium cost of health insurance offered to
retirees is the same as that paid by the City for each active employee. Retirees are required to
purchase Medicare parts A and B upon reaching eligibility year (Ch. 112.0801, Florida Statutes).
Employment or Re-employment with the City
You can be employed by any employer other than the City without affecting your pension benefits
(Code Ch. 2-16.09(7)).
The Plan allows you to be re-employed by the City in any capacity at the sole discretion and option
of the City. However, you:
must meet the Plan’s definition of termination,
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must have been terminated for at least a year, and
cannot participate in any City funded pension plan while you are re-employed by the City.
Pension benefit payments to you will be suspended so long as you are re-employed by the City.
Re-employed retirees are not eligible for Plan disability benefits.
FORFEITURE OF BENEFITS
Specific Offenses
If you are convicted of any one or more of the following offenses committed prior to retirement,
or your employment with the City is terminated because you admitted to commission, aid or
abetment of the following offenses, the Board is required by law to forfeit your rights to any
benefits under this Plan, except for the return of your accumulated Member contributions as of
the date of termination. Specific offenses are as follows (Code Ch. 2-16.20(1) and sec. 112.3173, Florida
Statutes):
Committing, aiding or abetting of an embezzlement of public funds;
Committing, aiding or abetting of any theft by a public officer or employee from employer;
Bribery in connection with the employment of a public officer or employee;
Any felony specified in Chapter 838, Florida Statutes except ss. 838.15 and 838.16;
The committing of an impeachable offense;
The committing of any felony by a public officer or employee who willfully, and with intent
to defraud the public or public agency for which he or she acts or in which he or she is
employed, of the right to receive the faithful performance of his or her duty as a public officer
or employee, realizes or obtains or attempts to obtain a profit, gain, or advantage for himself
or herself or for some other person through use or attempted use of the power, rights,
privileges, duties or position of his or her public office of employment position.
The committing on or after October 1, 2008, of any felony defined in section 800.04, Florida
Statutes, against a victim younger than 16 years of age, or any felony defined in chapter 794
against a victim younger than 18 years of age, by a public officer or employee through the
use or attempted use of power, rights, privileges, duties, or position of his or her public office
or employment position.
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“Conviction” and “convicted” mean an adjudication of guilt by a court of competent jurisdiction;
a plea of guilty or of nolo contendere; or a jury verdict of guilty when adjudication of guilt is
withheld and the accused is placed on probation.
Fraud
Any Member or Beneficiary convicted of willfully and knowingly making, or causing to be made,
or assisting, conspiring with, or urging another to make, or cause to be made, any false,
fraudulent, or misleading oral or written statement or withholding or concealing material
information to obtain a benefit available under the Plan may, in the discretion of the Board, be
required to forfeit the right to receive any or all benefits to which the person would otherwise be
entitled under the Plan. Note: if the conviction for fraud qualifies as a conviction for a “specified
offense” under sec. 112.3173, Florida Statutes, which was committed prior to retirement, the
Board has no discretion, and forfeiture is required by law. For purposes of this paragraph,
“conviction” means a determination of guilt that is the result of a plea or trial, regardless of
whether adjudication is withheld (Code Ch. 2-16.20(2)).
Strikes
Any Member who, prior to retirement, is adjudged by a court of competent jurisdiction to have
violated any state law against strikes by public employees, or who has been found guilty by such
court of violating any state law prohibiting strikes by public employee, shall forfeit all rights and
benefits under this chapter, except the return of his or her accumulated contributions, without
interest, as of the date of the conviction (Code Ch. 2-16.20(3)).
Beneficiary Forfeiture of Benefits
Any beneficiary who by a verdict of a jury or by the court trying the case without a jury is found
guilty, or who has entered a plea of guilty or nolo contendere, of unlawfully and intentionally
killing or procuring the death of the Member forfeits all rights to the deceased Member’s benefits
under this Plan, and the benefits will be paid as if such beneficiary had predeceased the decedent
(Code Ch. 2-16.20(4)).
Right to Hearing
Prior to forfeiture, the Board shall give notice and hold a hearing in accordance with Chapter 120,
Florida Statutes for the purpose of determining whether the individual’s rights and privileges
under the Plan are required to be forfeited. If the Board determines such rights and privileges are
required to be forfeited, the Board shall order such rights and privileges forfeited. The Member
has the right to have an attorney present.
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Withholding of Benefits
Benefits will not be paid pending final resolution of such charges against a Member or Beneficiary
if the resolution of such charges could require the forfeiture of benefits as provided in this section
(Code Ch. 2-16.20(7)).
Return of Benefits
Any Member whose rights to a pension are forfeited who has received any benefits from the Plan
shall be required to pay back to the Trust Fund the amount of benefits received in excess of the
member’s accumulated contributions. The Board may implement all legal action necessary to
recover such funds (Code Ch. 2-16.20(8)).
CLAIMS PROCEDURES
Pension benefits are not automatic, you must file a claim to receive any benefits. Contact the
City’s Human Resources Department to begin the process. The Human Resources Department
will provide you with an Application for Service Retirement package. In this package you will find
the forms that must be completed along with information designed to help you make your
retirement benefit decisions. You can submit your claim up to six months prior to your desired
retirement date. Contact Human Resources at least 90 days before you plan to retire. You can
change the information on the application before it is processed. However, once you have cashed
or deposited your first retirement payment you cannot make any changes.
If your claim for benefits is denied, you have the right to appeal this decision directly to the Board
of Trustees. Again, contact the Human Resources Department and let them know you want to
appeal. They will pass this on to the Board of Trustees. The Board will schedule a date for your
appeal hearing. The Board’s decision is final.
GENERAL INFORMATION
Applicable Law
The Plan is governed by federal, state and local laws including, but not limited to, the following:
United States Internal Revenue Code and amendments thereto.
Miscellaneous other Federal laws and regulations.
Part 1, Chapter 112, Florida Statutes, “Conditions of Employment; retirement; travel
expenses.”
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Part VII, Chapter 112, Florida Statutes, "Actuarial Soundness of Retirement Systems".
Miscellaneous other State statutes, laws, and regulations,
Chapter 2, Article II, Division 1 of the Code of Ordinances of the City of Altamonte Springs.
Other ordinances, resolutions and policies of the City of Altamonte Springs.
Administrative rules and regulations adopted by Board of Trustees
Plan Year and Plan Records
The Plan year begins on October 1st of each year and ends on September 30th of the following
year. All records of the Plan are maintained on the basis of the Plan year.
Assignment, Execution or Attachment
Except for qualified domestic relations orders issued by a court of competent jurisdiction
pursuant to section 222.21, Florida Statutes, income deduction orders as provided in section
61.1301, Florida Statutes or as otherwise provided by law, your retirement benefits and
accumulated contributions accrued under this Plan are not subject to execution, attachment,
garnishment or any other legal process and are not assignable.
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FINANCIAL AND ACTUARIAL INFORMATION
The Plan is audited annually. An annual financial report is included in the City’s Annual
Comprehensive Financial Report. A separate actuarial report on the solvency and actuarial
soundness of the Plan is prepared annually. Copies of either or both of these reports are available
from the City’s Finance Department. The following is selected financial and actuarial information.
FINANCIAL INFORMATION Fiscal Year *
2020 2021 2022
Additions
Contributions
Investment income
$ 1.57
4.22
$ 1.59
6.21
$ 1.59
(6.05)
$ 5.79 $ 7.80 $ (4.46)
Deletions
Benefit payments
Expenses
$ 0.59
0.04
$ 0.84
0.03
$ 0.91
0.04
$ 0.63 $ 0.87 $ 0.95
Increase in net position
Net position
Beginning of year
$ 5.16
30.80
$ 6.93
35.96
$ (5.41)
42.89
End of year
$ 35.96
$ 42.89
$ 37.48
Plan investments
Market value at September 30th
U.S. treasuries
Corporate bonds
Common stocks
$ 0.10
10.72
25.03
$ 1.06
12.21
29.62
$ 1.10
11.34
25.00
$ 35.85 $ 42.89 $ 37.44
*NOTE: Dollar figures are in millions.
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ACTUARIAL INFORMATION
At September 30th
Fiscal Year *
2020 2021 2022
Funding progress
Plan fiduciary net position
Total plan pension liability
$ 35.96
(29.20)
$ 42.89
(31.92)
$ 37.49
(36.26)
Unfunded actuarial accrued asset (liability)
Percentage funded
$ 6.76
123%
$ 10.97
134%
$ 1.23
103%
Employer contributions
Actuarially determined contribution
Contribution in relation to the actuarially
determined contribution
$ 1.37
(1.52)
$ 1.42
(1.53)
$ 1.56
(1.54)
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
$ (0.15)
$ 12.39
12.2%
$ (0.11)
$ 12.91
11.9%
$ (0.02)
$ 13.53
11.4%
Plan membership
Active
Retirees and beneficiaries
Vested terminated and limited members
272
70
99
268
76
88
268
74
66
*NOTE: Dollar figures are in millions.
GLOSSARY OF TERMS
The following is a list of terms and definitions which may be helpful in understanding your General
Pension Plan benefits.
Average Final Compensation is the average annual compensation of the five best years of the
last ten years of creditable service (Code Ch. 2-16.01(3)).
Beneficiary is the person or persons you designate to receive any benefits which may be payable
upon your death (Code Ch. 2-16.01(4)).
Creditable Service is the aggregate number of years you work as a General Employee and may
include other types of qualified service periods (Code Ch. 2-16.01(10)).
Early Retirement Age or Date is the age or date when, after you have been vested, you choose
to receive a retirement benefit which is reduced because you have not reached normal
retirement age (Code Ch. 2-16.06(4)).
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Joint Annuitant or Pensioner means a person designated by the Member to receive with the
Member a retirement income of a modified monthly amount, payable to the Member during the
joint lifetime of the member and the joint annuitant, and following the death of either of them,
100 percent, 75 percent, 66 2/3 percent, or, 50 percent of such monthly amount payable to the
survivor for the lifetime of the survivor. Not further benefits shall be paid following the death of
the survivor.
To qualify as a joint annuitant, the beneficiary must be (Code Ch. 2-16.01(16)):
Spouse of the Member, or
Members natural or adopted child who is either under age 25, or physically or mentally
disabled and incapable of self-support, regardless of age, or
any person under the age of 25 for whom the Member is the legal guardian and who is
financially dependent on the Member for no less than one-half of his or her support, or
any person, age 25 or older, who is financially dependent on you for no less than one-half of
his or her support, and is your parent, grandparent, or a person for whom you are the legal
guardian.
Normal Retirement Age or Date is the age or date when you first become eligible to retire,
without a reduction of benefits, by being vested and reaching age 62 or completing 30 years of
creditable service regardless of age (Code Ch. 2-16.06(1)).
Termination occurs when you end all employment with the City.
Vested or Vesting is the guarantee that you will receive a future benefit after you work a certain
number of years. You are vested after completing 6 years of creditable service (Code Ch. 2-16.01(26)).
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41
The Altamonte Springs Retirement System
General Employees’
Defined Contribution
Investment Plan
Member Handbook
for Employees
December 2022 Edition
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TABLE OF CONTENTS
Introduction ........................................................................................................................................ 3
Basic Plan Information ........................................................................................................................ 5
Membership........................................................................................................................................ 6
Contributions ...................................................................................................................................... 6
Beneficiary Designation ...................................................................................................................... 7
Vesting ................................................................................................................................................ 7
Investment Funds ............................................................................................................................... 7
Distributions from the Investment Plan ............................................................................................. 8
Determining Present Value ............................................................................................................... 10
Other Benefits Not Provided by this Pension Plan ........................................................................... 10
Survivor Benefits ............................................................................................................................... 11
Disability ........................................................................................................................................... 12
After Retirement ............................................................................................................................... 12
Situations Affecting Your Benefits .................................................................................................... 12
Forfeiture of Benefits ........................................................................................................................ 13
General Information ......................................................................................................................... 15
Glossary of Terms ............................................................................................................................. 15
Exhibit A – Investment Options ........................................................................................................ 18
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INTRODUCTION
Upon hiring, all full time City employees are automatically enrolled or are eligible to enroll in one
of the employee pension plans offered by the City. The various primary retirement plans include:
Primary Retirement Plans
The Florida Retirement System (FRS)
Includes all full-time employees hired prior to January 1,
1996.
The Altamonte Springs Police
Officers’ Defined Benefit Pension
Plan
Includes all full-time Police Officers hired on or after
January 1, 1996.
The Altamonte Springs General
Employees’ Defined Benefit Pension
Plan
Includes full-time employees other than Police Officers
hired on or after January 1, 1996
The Altamonte Springs General
Employees’ Defined Contribution
Investment Plan
Includes General Employees who have elected to move
from the General Employees’ Pension Plan to the
General Employees Investment Plan. This is an
investment plan. Participants make their own
investment decisions. This plan is not available to Police
Officers.
For pension purposes full-time employees carry one of several classifications. These include:
Police Officer
Sworn Police Officers employed by the City as Police Officers
General Employee
All full-time employees other than Police Officers further classified as either –
Regular Employee.
General Employees other than Senior Management
Senior Management.
Department Directors, City Manager, and Elected Officials.
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In addition to the primary retirement plans the City offers supplementary retirement plans to full-
time employees. These include:
Supplemental Retirement Plans
Executive Employees Investment
Pension Plan
Includes department directors, deputy directors, and
certain other designated positions. This is an
investment plan funded with contributions from the
City. Employee contributions are neither required to
allowed. Participants make their own investment
decisions.
The Police Officers’ Share Plan Includes all full-time Police Officers who are members
of the Police Officers’ Defined Benefit Pension Plan. This
is an investment plan funded with contributions from
the City. Employee contributions are neither required
nor allowed. Participants make their own investment
decisions.
The Altamonte Springs Deferred
Compensation Pension Plan (Sec 457
Plan)
This plan is voluntary and open to all full-time
employees. It is funded with pre-tax employee
contributions. The City does not may any contributions
to this plan. Participants make their own investment
decisions. See page 11 for additional information on this
plan.
This Summary Plan Description is for employees enrolled in the Altamonte Springs General
Employees’ Defined Contribution Investment Plan. There are separate summary plan descriptions
for the Florida Retirement System, Altamonte Springs General Employees’ Pension Plan and the
Altamonte Springs Police Officers’ Pension Plan. This guide explains your retirement plan - its
benefits and policies, and your rights as a member of the City of Altamonte Springs General
Employees’ Defined Contribution Investment Plan. Membership in the Plan is an important fringe
benefit provided to you by the City.
The Investment Plan is a defined contribution retirement plan qualified under Section 401(a) of the
Internal Revenue Code. This means that employee and employer contributions are made to each
member’s account under the Plan. The term “defined contribution” for the Investment Plan means
that contributions are defined (in the General Employees’ Pension Plan the benefit is defined).
Contributions from you and the City are deposited in an account established for you under the
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Investment Plan. Your benefits are based on the total value of your account at distribution. This
amount is based on contributions, plus earnings on those contributions, less fees and charges.
This guide is a basic employee handbook and is intended to be a reference for you. Inside you will
find explanations of certain provisions of your pension plan. You are encouraged to study these
provisions in order to become familiar with the benefits provided by the Plan.
This document is only a brief explanation of the Plan. If there are any conflicts between this
document and the ordinances of the City of Altamonte Springs, the ordinances will govern. A copy
of the ordinances governing the Plan can be obtained from the City Clerk. A copy of the Plan and
Trust Documents can be obtained from the Human Resources Department. If you have questions
about a particular item or issue, please contact the City’s Human Resources Department.
BASIC PLAN INFORMATION
Name of Plan The Altamonte Springs General Employees’ Investment Plan (the Plan).
Type of Plan The Plan is a defined contribution plan, qualified under section 401(a)
of the Internal Revenue Code.
Administration The Plan is administered by the City of Altamonte Springs, through its
agent, MissionSquare Retirement (formerly ICMA Retirement
Corporation). The MissionSquare plan number is 10-6450.
Service of Legal Process The City Manager is the person designated for service of legal process.
The contact information is:
City Manager
City of Altamonte Springs
225 Newburyport Avenue
Altamonte Springs, FL 32701
Provisions of Law The Plan was established in 2011 and is operated pursuant to City
ordinances and resolutions, Florida Law, and the U.S Federal Income
Tax Code.
Funding The Plan is contributory; contributions to the Plan are made by
members and the City.
Plan Year The plan year is October 1st through September 30th.
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Employment Rights Not
Implied
Membership in the Plan does not give you the right to be retained in
the employ of the City, nor does it give you a right or claim to any
benefit you have not accrued under the terms of the Plan.
MEMBERSHIP
Membership in the Plan
Membership in the Investment Plan is optional. All full-time employees hired on or after January
1, 1996, and not classified as a sworn City Police Officer are automatically enrolled in the Altamonte
Springs General Employees’ Pension Plan, a defined benefit plan, upon hiring. Members of the
defined benefit plan can then choose to move to the Investment Plan.
The Altamonte Springs General Employees’ Investment Plan is the defined contribution plan
alternative to the Altamonte Springs General Employees’ Defined Benefit Pension Plan available to
all General Employees not in the Florida Retirement System.
Any member of the General Employees’ Defined Benefit Pension Plan can choose, at any time prior
to retirement or leaving employment with the City, to opt out of the Defined Benefit Plan and join
the Investment Plan. If you choose this option the City will transfer from the Defined Benefit Plan
to the Investment Plan an amount of money equal to the present value of your accumulated benefit
obligation under the Defined Benefit Plan.
IMPORTANT NOTE! The decision to transfer from the Defined Benefit program to the Investment
Plan is irrevocable. You cannot go back again!
CONTRIBUTIONS
Your account is funded by contributions from both the City and you along with investment earnings
(if any) less expenses. All employees in the Investment Plan are required to contribute, via payroll
deduction, one percent (1%) of compensation to the Plan. All contributions are deposited directly
into your individual investment account within the Plan.
Contribution Rates
The contribution rates for employees, the City, and in total are as follows:
Paid by
Employee Paid by City Total Deposit to
your Account
Regular employees 1% 10% 11%
Senior management 1% 12% 13%
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Contributions are Pre-tax
Pre-tax contributions are not subject to current federal income taxation until withdrawn. For tax
purposes, the full amount of your pre-tax contribution is deducted from your gross income. This
results in a decrease in your current taxable income.
Required employee contributions are treated for tax purposes as employer-paid employee
contributions (commonly called an employer pick-up) under Internal Revenue Code section
414(h)(2).
BENEFICIARY DESIGNATION
As a member of the Investment Plan you are required to designate a beneficiary upon enrollment
in the Plan. If you do not name a beneficiary or if your beneficiary has died, any benefits will be paid
according to Florida law.
You may change your beneficiary at any time. If your designated beneficiary dies it is important for
you to submit a new beneficiary designation to be sure your account is distributed as you wish in
the event of your death.
VESTING
Vesting refers to the years of creditable service to the City you must complete before you are
entitled to pension benefits. For the Investment Plan you are fully vested from the first day you join
the Plan.
INVESTMENT FUNDS
MissionSquare Retirement (formerly ICMA-RC), the Plan administrator, offers a wide variety of
investment options, including equity and fixed-income funds that span the risk-return spectrum.
The City’s investment advisors have reviewed the various funds offered by MissionSquare
Retirement and, working with MissionSquare Retirement and City staff, have developed a
comprehensive list of funds for our members, offering the lowest costs and best returns. All of the
current investment options are shown on Exhibit A attached at the end of this handbook. The list is
revised from time to time for various reasons. The most recent and complete list can be found on-
line at the MissionSquare Retirement website, (www.missionsquareretirement.org). The plan
number is 10-6450.
Investment Tools and Assistance
In addition to online calculators and educational articles, MissionSquare Retirement offers Guided
Pathways®, a comprehensive suite of investment advisory and account management services. This
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program offers three levels of service designed to direct you to the appropriate level of assistance,
based on how involved you want to be in your retirement investing decisions.
Asset Class Guidance offers you a recommendation on how to divide your retirement account
among asset classes.
Fund Advice offers you a recommendation of specific funds in which to invest (an additional
fee applies for this service).
Managed Accounts offers ongoing professional management of your retirement plan assets,
based on your personal and financial situation. Additional fees apply. Managed Accounts may
not be suitable for all investors. Please contact the MissionSquare Retirement Guided
Pathways® team or our MissionSquare representative and fully read the MissionSquare
Retirement Guided Pathways® Fund Advice and Managed Accounts Investment Advisory
Agreement prior to enrolling in Managed Accounts to determine if this service is right for you.
DISTRIBUTIONS FROM THE INVESTMENT PLAN
In general, you are eligible to withdraw vested assets from the Plan upon separation from service
(either voluntary or otherwise), disability or retirement. While employed you may request in-
service withdrawals after you reach age 62. Your beneficiary becomes eligible to receive benefits
from the Plan in the event of your death.
MissionSquare Retirement’s 401 Money Purchase Plan Benefit Withdrawal Packet fully details the
information you will need to withdraw vested assets. All necessary forms are provided in the
packet. You may obtain a copy from the City’s Human Resources Department or by contacting
MissionSquare Retirement’s Investor Services at 800-669-7400.
Distribution Options
The Plan, through MissionSquare Retirement (plan administrator), offers a variety of options to
meet your retirement needs. You may receive payment as:
Partial or full lump-sum distribution.
Installment payments (monthly, quarterly, semi-annually, or annually) until your assets are
fully distributed. In addition, an annual automatic cost-of-living adjustment (COLA) may be
elected with this option.
Guaranteed lifetime income solutions to help make your money last. There are two options
which may be available to you and are subject to an insurer’s claims-paying ability. These are:
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A Guaranteed Income Fund – this is an annuity that can also protect lifetime income from
market downtowns and allows access to the market value at any time (withdrawals in
excess of the guaranteed amounts do reduce guaranteed benefits). Guarantees are
provided in exchange for additional fees1. The fund is generally more appropriate for
investors who are within 10 to 15 years of retirement or already retired.
An Immediate Annuity – MissionSquare Retirement on your behalf transfers a lump-sum
payment from your account to an insurance company, not affiliated with MissionSquare
Retirement or the City, in exchange for a fixed lifetime payout2.
Rollover to another plan or an IRA.
1 Variable annuities are long-term vehicles designed for retirement purposes and contain underlying
investments subject to investment risk, included possible loss of principal.
2 MissionSquare Retirement partners with select insurance companies that make annuities available
through the Income for Life Annuity program. Participating insurance companies compensate ICMA-
RC for providing administrative services in support of the Income for Life Annuity program. The fee
is at an annual rate of 80 basis points (0.80%) of the purchase amount of the annuity for a period of
five years. Please consult Income for Life Annuity Program: Immediate Annuities for Retirement
Income, prior to purchasing an annuity. You may also obtain a copy by calling ICMA-RC Investor
Services at 800-669-7400.
Emergency Withdrawals Not Permitted
The Investment Plan is a retirement plan and does not permit distributions by members due to
hardships, unforeseeable emergencies, loans, medical expenses, educational expenses, the
purchase of a principal residence, payments necessary to prevent eviction or foreclosure on a
member’s principal residence, or for any other reason prior to termination of employment with the
City.
Required Minimum Distributions
You may leave your assets in the Plan if your vested balance exceeds the minimum amount. You
may also transfer all or part of and “eligible rollover distribution” to another employer’s retirement
plan (401 qualified plan, 457 deferred compensation plan, or 403(b) tax sheltered annuity plan) as
long as that plan accepts rollovers, or an IRA (if eligible to consolidate in a Roth IRA, any amounts
transferred would be subject to tax up-front, but future earnings could be tax free).
Eligible rollover distributions are generally all distributions unless they are: (1) regular, periodic
payments over long periods, such as life expectancy or 10 years or more or (2) required minimum
payments made to participants age 70½ or older. Your employee after-tax contributions can also
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be rolled to another 401 qualified plan, 403(b) plan, or an IRA (these after-tax amounts may not be
rolled over to a 457 deferred compensation plan).
De Minimis Distributions
If your total vested account balance at termination is less than $1,000 it will be paid to you as soon
as possible. You do not have the option of keeping your assets in your account but you may choose
to roll over the balance as described above.
Income Taxes on Distributions
Pre-tax contributions and all earnings are subject to federal income taxes when withdrawn.
Generally, taxable funds withdrawn before age 59½ are subject to an IRS tax penalty of 10 percent,
in addition to ordinary income taxes. There are exceptions, including withdrawals taken from plans
attributable to employers from which you separated from service in the year you turned age 55 or
later. ICMA-RC does not withhold any portion of your payment to cover the IRS 10 percent penalty.
You are responsible for calculating and paying it when you file your annual tax return.
MissionSquare Retirement does not assess a penalty for any distribution for which you are eligible,
regardless of age or length of plan participation.
DETERMINING PRESENT VALUE
If you have years of creditable service in the City’s General Employees’ Defined Benefit Pension Plan
and elect to join the Investment Plan, a present value calculation will be performed by the City’s
actuary to determine your Accumulated Benefit Obligation (ABO). The actuary will calculate the
present value of your accumulated benefit obligation. The actuary then projects the total yearly
benefits to be collected during retirement over your expected lifetime. This stream of increasing
annual payments is converted to a single lump sum – a “present value” (value in today’s dollars) -
using an actuarial conversion factor. Please note that the conversion factor will increase monthly
until you reach your normal retirement date and will decrease for each month after the normal
retirement date.
OTHER BENEFITS NOT PROVIDED BY THIS PENSION PLAN
Social Security Coverage
As a City employee you are automatically covered for Social Security and Medicare. Your pension
plan benefits provided through the General Employees’ Pension Plan are not offset (reduced) by
Social Security benefits you receive. Social Security contributions are automatically deducted from
your salary and matched by the City.
Although Social Security coverage is a part of your overall benefit package, the City has no control
over your Social Security or Medicare benefit payments. Information on Social Security or Medicare
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benefits can be obtained from the local Social Security office or call the toll-free number, 1-800-
772-1213, or visit their website at www.ssa.gov
Deferred Compensation Program
In addition to the pension benefits provided by the Pension Plan, as a City employee you have the
opportunity to participate in the City’s deferred compensation program operated under Section
457 of the Internal Revenue Code. This program provides you the opportunity to build a retirement
savings separate and distinct from the Pension Plan and reduce your current taxable income.
You can elect to defer a portion of your compensation on a pre-tax basis through payroll deduction.
This pre-tax advantage allows you to defer federal income taxes on the amount you invest, as well
as earnings on your investments, until you withdraw your money from the program, usually during
retirement when you may be in a lower tax bracket. The amounts you withdraw from your deferred
compensation account are in addition to pension plan benefits or any other benefits you may
receive.
This program is completely voluntary with deposits into your deferred compensation account made
solely by you. Your pension plan benefits provided through the City’s Pension Plans are not affected
in any way by your participation in the deferred compensation program. Further information can
be obtained from the City’s Human Resources Department.
SURVIVOR BENEFITS
From the Pension Plan
In the event of your death your eligible beneficiary receives your funds. You are considered 100%
vested at the date of death regardless of years of service. Under the Investment Plan there are no
separate death benefits if you die in the line of duty as provided in the Defined Benefit Pension
Plan.
Other Survivor Benefits
In addition to the pension benefits provided by the Plan, if you die while actively employed by the
City as a General Employee, your survivors may be entitled to other death benefits.
The City, at its expense, provides life insurance for every full-time employee. If you die while
employed by the City this policy will provide a single death benefit to survivors equal to your annual
salary. If you die from an accident this amount is doubled.
If you die from an accident while on the job there is an additional survivor benefit payable to your
survivors.
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In addition to the preceding, you may purchase, at your expense, additional life insurance coverage
at group rates through payroll deduction. Further information on this City program can be obtained
from the City’s Human Resources Department.
DISABILITY
In the event of permanent and total disability prior to retirement age, you become 100 percent
vested in your account balance and may withdraw your funds without penalty at any time. Unlike
the Defined Benefit Plan, this is the Investment Plan’s only special consideration to members who
become disabled. If you become disabled you may be entitled to benefits through other programs.
Be advised that other than 100 percent vesting, the Investment Plan does not provide any other
disability benefits regardless of whether you become disabled on or off the job.
You are urged to seriously consider purchasing disability insurance. The City offers this coverage to
you at group rates, available through payroll deduction. Contact the City Human Resources
Department for more information.
AFTER RETIREMENT
Health Insurance Coverage
The City offers retirees, at the retirees’ expense, the option of continuing to participate in the City’s
group health insurance plan for active employees. The premium cost of health insurance offered to
retirees is the same as that paid by the City for each active employee.
SITUATIONS AFFECTING YOUR BENEFITS
The Investment Plan is designed to provide you with income for your retirement. However, some
situations could affect your benefits:
If it is determined by the City or the Investment Plan Administrator that you are not eligible to
participate in the Investment Plan.
If you terminated employment before becoming vested in the Investment Plan, you will not
receive any benefits from the plan other than the receipt of your employee contributions
contributed while you were a member of the Investment Plan.
If you do not apply for payments from the Investment Plan before stated deadlines, or if you
do not provide the information requested by the Investment Plan Administrator (the City or
one of its contracted partners), your payments may be delayed; or
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If your mailing address on file with the Investment Plan Administrator is incorrect, payments
from the Investment Plan may be delayed. Additionally, you may not receive statements of
your Investment Plan account balance or other important notices.
If you receive an invalid distribution from your Investment Plan account or violate the
reemployment after retirement provisions of the Investment Plan, you will be required to
repay the amount received to the Investment Plan within 90 days. Failure to do so could lead
to your being declared retired from the Investment Plan, or at the option of the City, to
administrative or legal action. In lieu of repaying the invalid distribution, you may terminate
all employment with the City.
FORFEITURE OF RETIREMENT BENEFITS
Specific Offenses
If you are convicted of any of the following offenses committed prior to retirement, or your
employment with the City is terminated because you admitted to commission, aid or abetment of
the following offenses, you forfeit all rights to any pension benefits under this Plan, except for the
return of your accumulated personal contributions as of the date of termination. Specific offenses
are as follows:
Committing, aiding or abetting of an embezzlement of public funds;
Committing, aiding or abetting of any theft by a public officer or employee from employer;
Bribery in connection with the employment of a public officer or employee;
Any felony specified in Chapter 838, Florida Statutes except ss. 838.15 and 838.16;
The committing of an impeachable offense;
The committing of any felony by a public officer or employee who willfully, and with intent to
defraud the public or public agency for which he or she acts or in which he or she is employed,
of the right to receive the faithful performance of his or her duty as a public officer or
employee, realizes or obtains or attempts to obtain a profit, gain, or advantage for himself or
herself or for some other person through use or attempted use of the power, rights, privileges,
duties or position of his or her public office of employment position.
The committing on or after October 1, 2008, of any felony defined in section 800.04, Florida
Statutes, against a victim younger than 16 years of age, or any felony defined in chapter 794
against a victim younger than 18 years of age, by a public officer or employee through the use
or attempted use of power, rights, privileges, duties, or position of his or her public office or
employment position;
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Fraud
Any Member or Beneficiary who is convicted of willfully and knowingly making, or causing to be
made, or to assisting, conspiring with, or urging another to make, or cause to be made, any false,
fraudulent, or misleading oral or written statement or withholding or concealing material
information to obtain a benefit available under the Plan may, in the discretion of the Board, be
required to forfeit the right to receive any or all benefits to which the person would otherwise be
entitled under the Plan. For purposes of this paragraph, “conviction” means a determination of guilt
that is the result of a plea or trial, regardless of whether adjudication is withheld.
Strikes
Any Member who, prior to retirement, is adjudged by a court of competent jurisdiction to have
violated any state law against strikes by public employees, or who has been found guilty by such
court of violating any state law prohibiting strikes by public employee, shall forfeit all rights and
benefits under this chapter, except the return of his or her accumulated contributions, without
interest, as of the date of the conviction.
Beneficiary Forfeiture of Benefits
Any beneficiary who by a verdict of a jury or by the court trying the case without a jury is found
guilty, or who has entered a plea of guilty or nolo contendere, of unlawfully and intentionally killing
or procuring the death of the Member forfeits all rights to the deceased Member’s benefits under
this Plan, and the benefits will be paid as if such beneficiary had predeceased the decedent.
Conviction Defined
Conviction shall be defined as an adjudication of guilt by a court of competent jurisdiction; a plea
of guilty or a nolo contendere; a jury verdict of guilty when adjudication of guilt is withheld and the
accused is placed on probation; or a conviction by the Senate of an impeachable offense.
Court Defined
Court shall be defined as any state or federal court of competent jurisdiction which is exercising is
jurisdiction to consider a proceeding involving the alleged commission of a specified offense. Prior
to forfeiture, the Board shall hold a hearing on which notice shall be given to the Member whose
benefits are being considered for forfeiture. Said Member shall be afforded the right to have an
attorney present. No formal rules of evidence shall apply, but the Member shall be afforded a full
opportunity to present his or her case against forfeiture.
Withholding of Benefits
Benefits will not be paid pending final resolution of such charges against a Member or Beneficiary
if the resolution of such charges could require the forfeiture of benefits as provided in this section.
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GENERAL INFORMATION
Assignment, Execution, or Attachment
The benefits payable to you under the Investment Plan, and any contributions accumulated under
the Plan, are not subject to assignment, execution, attachment, or any legal process, except for a
Qualified Domestic Relations Order (QDRO) issued by a court of competent jurisdiction, income
deduction orders as provided in s. 61.1301, Florida Statutes, and federal income tax levies. Note
that federal income tax levies will only be honored if you are eligible for a distribution.
If you divorce or legally separate, the Investment Plan may be required to follow the provisions of
a QDRO that assigns part or all of your Investment Plan account to a former spouse or for the
support of your dependents.
The Investment Plan Administrator determines whether a court order is a QDRO. You can obtain
QDRO information from the Investment Plan Administrator. Model language is available to assist in
the drafting of a QDRO that meets the requirements of federal law and the Plan’s provisions.
The Investment Plan Administrator will send you a notice if the Plan receives a court order that
could affect your Investment Plan account.
Errors and Incorrect or Incomplete Data
Errors may sometimes occur in determining benefits provided by the Investment Plan. This could
be due to incorrect or incomplete data or for other reasons. If such an error is discovered, the
Investment Plan Administrator and your employer reserve the right to correct it at any time,
including after you terminate employment or take a distribution of your account balance. If you
receive an overpayment as a result of an error, you will be notified of the amount and will be
required to repay it. If you have an underpayment you will receive an additional payment from the
Investment Plan Administrator.
Employment Rights in the Investment Plan
Participation in the Investment Plan or any contributions to the Investment Plan on your behalf, or
any other part of Investment Plan operation or administration does not give you the right to
continued employment.
GLOSSARY
The following terms are defined as used in connection with the General Employees’ Investment
Plan and in this brochure. In an effort to make these provisions easy to understand, nontechnical
language has been used as much as possible. Questions of interpretation will be governed by City
ordinances, State Law, and Federal Law.
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Beneficiary: The joint annuitant or any other person, organization, estate, or trust fund you
designate to receive a retirement benefit that may be payable when you die.
Benefit: Any payment (lump sum or periodic) to you, a retiree, or a beneficiary, based partially or
entirely on employer contributions.
Contributions: The percentage of your gross monthly salary that you and the City contribute to
your account in the General Employees’ Investment Plan.
Creditable service: A member receives one month of service credit for each month in which any
salary is paid for work performed.
Date of participation: The date you become a plan member.
Defined contribution plan: A type of retirement plan as defined under Section 401(a) of the Internal
Revenue Code, which defines the amount of contributions which are made for an employee and
that amount is generally related to an employee’s salary.
Eligible employee: An employee or elected official who is a member of or is eligible for membership
in the Investment Plan.
Eligible rollovers: A direct plan transfer from an eligible retirement plan to the Investment Plan.
Fiscal Year: A 12-month period beginning October 1 and ending on September 30.
Employee: Any person receiving salary payments for work performed in a regularly established
position and employed in a covered position.
Plan year: The period of time beginning October 1 and ending on the following September 30, both
dates inclusive.
Reemployment: This term means employment after retirement by the City.
Salary: Regular payment of compensation by the City to an employee for work performed, including
certain overtime payments.
Retiree: Under the Investment Plan, this means a former member of the Plan who has terminated
employment and has taken a distribution of benefits from the plan, except for a mandatory
distribution of a de minimus account balance or a federally mandated Required Minimum
Distribution.
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Retirement: Under the Investment Plan, this term means the point at which you are vested, have
terminated all covered employment, and have taken a distribution from the Plan.
Termination: This refers to the termination of employment, which occurs when you end all
employment with the City.
Vest, Vested or Vesting: These terms refer to the guarantee of a benefit under the General
Employees’ Investment Plan. You are vested in the plan from the first day of employment with the
City.
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EXHIBIT A – INVESTMENT OPTIONS for Plan:
The following funds are offered by the Plan to Participants. Please note this list is updated from
time to time. This list is accurate as of November 2020.
Fund Option Ticker Style Objective Peer Group Benchmark
DOMESTIC EQUITY FUNDS
Vanguard 500 Index
Admiral VFIAX 500 Index IM US Large Cap Core
Equity (MF) Median S&P 500 Index
MFS Growth MFEKX Large Cap
Growth
IM US Large Cap Growth
Equity (MF) Median Russell 1000 Growth Index
JP Morgan Equity Income
Fund OIEJX Large Cap Value IM US Large Cap Value
Equity (MF) Median Russell 1000 Value Index
Touchstone Mid Cap
Growth Fund R6 TFGRX Mid Cap Growth IM US Mid Cap Growth
Equity (MF) Median Russell Midcap Growth Index
Virtus Ceredex Mid Cap
Value FBVZX Mid Cap Value IM US Mid Cap Value
Equity (MF) Median Russell Midcap Value Index
Conestoga Small Growth CCALX Small Cap Growth IM US Small Cap Growth
Equity (MF) Median Russell 2000 Growth Index
Wells Fargo Special Small
Cap Value R6 ESPRX Small Cap Value IM US Small Cap Value
Equity (MF) Median Russell 2000 Value Index
Vanguard Extended
Market Index VEXAX Small / Mid Cap IM US SMID Cap Core
Equity (MF) Median Russell 2500 Index
INTERNATIONAL / GLOBAL EQUITY FUNDS
American Funds
Europacific Growth RGRGX International
Equity
IM International Equity
(MF) Median MSCI ACWI ex USA Index
Fixed Income / Stable Value Funds
VT PLUS Fund PLUS Fixed Interest IM US GIC/Stable Value
(SA+CF) Median
B of A Merrill Lynch 3-month US
T Bill
Metropolitan West Total
Bond Fund MWTSX Fixed Income IM US Board Market Core
Fixed Income (MF)
Barclays U.S. Aggregate Bond
Index
Balanced / Target Date* Funds
Vanguard Retirement
Income Fund VTINX Target Date IM Mixed-Asset Target
2010 (MF) Median
Dow Jones Global Target 2010
Index
Vanguard Target
Retirement 2025 * VTTVX Target Date IM Mixed-Asset Target
2025 (MF) Median
Dow Jones Global Target 2025
Index
Vanguard Target
Retirement 2030 * VTHRX Target Date IM Mixed-Asset Target
2030 (MF) Median
Dow Jones Global Target 2030
Index
Vanguard Target
Retirement 2035 * VTTHX Target Date IM Mixed-Asset Target
2035 (MF) Median
Dow Jones Global Target 2035
Index
Vanguard Target
Retirement 2040 * VFORX Target Date IM Mixed-Asset Target
2040 (MF) Median
Dow Jones Global Target 2040
Index
Vanguard Target
Retirement 2045 * VTRIVX Target Date IM Mixed-Asset Target
2045 (MF) Median
Dow Jones Global Target 2045
Index
Vanguard Target
Retirement 2050 * VFIFX Target Date IM Mixed-Asset Target
2050 (MF) Median
Dow Jones Global Target 2050
Index
Vanguard Target
Retirement 2055 * VFFVX Target Date IM Mixed-Asset Target
2055 (MF) Median
Dow Jones Global Target 2055
Index
Vanguard Target
Retirement 2060 * VTTSX Target Date IM Mixed-Asset Target
2060 (MF) Median
Dow Jones Global Target 2060
Index
Continued next page.
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Fund Option Ticker Style Objective Peer Group Benchmark
Vanguard LifeStrategy
Cons. Growth VSCGX Risk Based /
Balanced
IM Mixed Asset Target
Alloc Cons. (MF)
Dow Jones US Moderately
Conservative Index
Vanguard LifeStrategy
Mod. Growth VSMGX Risk Based /
Balanced
IM Mixed Asset Target
Alloc Growth (MF) Dow Jones US Aggressive Index
Vanguard LifeStrategy
Growth VASGX Risk Based /
Balanced
IM Mixed Asset Target
Alloc Growth (MF) Dow Jones US Aggressive Index
*Plan QDIA
Specialty
DFA Real Estate Securities DFREX Real Estate IM Real Estate Sector (MF) Dow Jones U.S. REIT Index
Note: This is list is effective as of November 2020, but is subject to change periodically. Please see
the MissionSquare Retirement website to view the latest list of investment options.
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S:\FI\pensions\EMPLOYEE RETIREMENT GUIDES - ALL ASRS PLANS\MOST CURRENT VERSION\Investment Plan Handbook (Aug 2022).docx
61
The Altamonte Springs Retirement System
GENERAL EMPLOYEES’
PENSION PLAN
A Retirement Guide
for Regular Employees
October 2016 Edition
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TABLE OF CONTENTS
Introduction ................................................................................................. 3
Basic Plan Information ................................................................................... 4
Board of Trustees .......................................................................................... 5
Membership ................................................................................................. 5
Contributions ................................................................................................ 6
Beneficiary Designation .................................................................................. 6
Vesting ........................................................................................................ 7
Terminating Employment Before Retirement ..................................................... 7
Your Retirement Benefit ................................................................................. 8
Retiring from the City .................................................................................. 10
Disability Benefits ....................................................................................... 11
Survivor Benefits ........................................................................................ 13
After Retirement ......................................................................................... 14
Forfeiture of Benefits ................................................................................... 15
Claims Procedures ....................................................................................... 17
General Information .................................................................................... 17
Financial and Actuarial Information ................................................................ 19
Glossary of Terms ....................................................................................... 20
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INTRODUCTION
Upon hiring, all full time City employees (and elected officials upon election) are
automatically enrolled in one of the employee pension plans offered by the City. These
include:
The Florida Retirement System (FRS) – Includes all full-time employees hired prior
to January 1, 1996.
The Altamonte Springs Police Officers Pension Plan – Includes all full-time Police
Officers hired on or after January 1, 1996.
The Altamonte Springs General Employees’ Pension Plan – Includes full-time
employees other than Police Officers hired on or after January 1, 1996
The Altamonte Springs Employees Investment Plan – Includes General Employees
who have elected to move from the General Employees’ Pension Plan to the
Employees Investment Plan.
For pension purposes full-time employees carry one of several classifications. These
include:
Police Officer - Sworn Police Officers
General Employee - all full time employees other than Police Officers further
classified as either –
Regular Employee - General Employees other than Senior Management
Senior Management – Department Directors, City Manager, and Elected
Officials.
This Summary Plan Description is for Regular Employees enrolled in the Altamonte
Springs General Employees’ Defined Benefit Pension Plan. There are separate
summary plan descriptions for the Florida Retirement System, Altamonte Springs
Police Officers’ Pension Plan and the Altamonte Springs Employee Investment Plan.
This guide explains your retirement plan - its benefits and policies, and your rights as
a member of the City of Altamonte Springs General Employees’ Pension Plan.
Membership in the Pension Plan is an important benefit provided to you by the City.
This guide is a basic employee handbook and is intended to be a reference for you.
Inside you will find explanations of certain provisions of your Pension Plan. You are
encouraged to study these provisions in order to become familiar with the benefits
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provided by the Plan.
This document is only a brief explanation of the Plan. If there are any conflicts
between this document and the ordinances of the City of Altamonte Springs, the
ordinances will govern. A copy of the ordinances governing the Plan can be obtained
from the City Clerk. If you have questions about a particular item or issue, please
contact the City’s Human Resources Department.
BASIC PLAN INFORMATION
Name of Plan The Altamonte Springs General Employees’ Pension Plan (the
Plan).
Type of Plan The Plan is a defined benefit plan, qualified under section 401(a)
of the Internal Revenue Code.
Administration The Plan is administered by the Altamonte Springs General
Employees’ Pension Plan Board of Trustees (Code Ch. 2-16.03).
Service of
Legal Process
The City Manager is the person designated for service of legal
process. The contact information is:
City Manager
City of Altamonte Springs
225 Newburyport Avenue
Altamonte Springs, FL 32701
Provisions
of Law
The Plan was established in 1995 and is operated pursuant to
Chapter 112, Florida Statues, City Code of Ordinances (“Code”),
Chapter 2, Article II, Division 1, and certain other City ordinances
and resolutions.
Funding The Plan is contributory meaning contributions come from both
the City and employees. However, only those employees hired on
or after January 1, 2012, are required to make contributions to
the Plan (Code Ch. 2-16.05).
Plan Year The plan year is October 1st through September 30th.
Employment
Rights Not
Implied
Membership in the Plan does not give you the right to be retained
in the employ of the City, nor does it give you a right or claim to
any benefit you have not accrued under the terms of the Plan.
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BOARD OF TRUSTEES
The City of Altamonte Springs General Employees' Pension Plan is a defined benefit
pension plan administered by the City Commission acting as the Board of Trustees
(Code Ch. 2-16.03).
MEMBERSHIP
Membership in the Plan
Each full-time employee hired on or after January 1, 1996, and not classified as a
sworn City Police Officer becomes a Plan Member as a condition of employment (Code
Ch. 2-16.02(1)).
Optional Retirement Program
The Altamonte Springs Employees Investment Plan is the defined contribution
plan alternative to the Altamonte Springs General Employee’s Defined Benefit Pension
Plan available to all General Employees not in the Florida Retirement System.
Any member of the Defined Benefit plan can, at any time prior to retirement or
otherwise leaving employment with the City, chose to opt out of the Defined Benefit
Plan and join the Investment Plan. If you chose this option the City will transfer from
the Defined Benefit Plan to the Investment Plan an amount of money equal to the
present value of your accumulated benefit obligation under the Plan. The Investment
Plan is contributory for ALL participants regardless of when hired. ALL members are
required to contribute one-percent (1%) of compensation to the Plan. The decision
to transfer from the Defined Benefit program to the Investment Plan is
irrevocable. You cannot go back again. (Code Ch. 2-16.02(5)).
For more information on the Investment Plan contact the Human Resources
Department.
Social Security Coverage
As a City employee you are automatically covered for Social Security and Medicare.
Your pension plan benefits provided through the General Employees’ Pension Plan are
not offset (reduced) by Social Security benefits you receive. Social Security
contributions are automatically deducted from your salary and matched by the City.
Although Social Security coverage is a part of your overall benefit package, the City
has no control over your Social Security or Medicare benefit payments. Information
on Social Security or Medicare benefits can be obtained from the local Social Security
office or call the toll-free number, 1-800-772-1213, or visit their website at
www.ssa.gov.
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Deferred Compensation Program
In addition to the pension benefits provided by the Pension Plan, as a City employee
you have the opportunity to participate in the City’s deferred compensation program
operated under Section 457 of the Internal Revenue Code This program provides you
the opportunity to build a retirement savings separate and distinct from the Pension
Plan and reduce your current taxes.
You can elect to defer a portion of your compensation on a pre-tax basis through
payroll deduction. This pre-tax advantage allows you to defer federal income taxes
on the amount you invest, as well as earnings on your investments, until you withdraw
your money from the program, usually during retirement when you may be in a lower
tax bracket. The amounts you withdraw from your deferred compensation account
are in addition to pension plan benefits or any other benefits you may receive.
This program is completely voluntary with deposits into your deferred compensation
account made solely by you. Your pension plan benefits provided through the General
Employees’ Pension Plan are not affected in any way by your participation in the
deferred compensation program. Further information can be obtained from the City’s
Human Resources Department.
CONTRIBUTIONS
The Plan is an employee contributory plan. This means some employees are required
to contribute to the Plan except for purchased creditable service.
General Employees hired prior to January 1, 2012 are not required to contribute to
the Plan. General Employees hired on or after January 1, 2012 are required to
contribute one percent (1%) of compensation to the Plan. Use of these funds is
restricted for the sole purpose of funding the Plan (Code Ch. 2-16.05).
Refund of Contributions
You may request a refund of contributions you made to the Plan if you terminate all
employment with the City. Your refund will not include contributions made by or from
any source other than yourself and will not include any interest. If your employee
contributions are refunded you lose any accrued pension benefits forever
(Code Ch. 2-16.09(1)).
BENEFICIARY DESIGNATION
Before You Retire
When you started work you should have filled out a form naming one or more
beneficiaries to receive any pension benefits due if you die before retirement. You
may name any person or persons you choose as beneficiary (Code Ch. 2-16.12). You
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may change the beneficiary at any time by completing a new designation of beneficiary
form. This is important to remember if your designated beneficiary dies or your
martial or family status changes. A Member’s divorce decree or will has no bearing
on how Member survivor’s benefits are paid. Any benefits due upon your death are
paid only to the designated beneficiaries or to your estate if you have not named a
beneficiary or your designated beneficiary has died.
When You Retire
When you retire you will be asked to rename a beneficiary and to choose a retirement
option on your application for retirement. Retirement options are explained later in
this document under the section titled “RETIRING FROM THE CITY” (Code Ch. 2-16.10(2)).
If you choose option 1 or 2 you may name a beneficiary as described above.
If you choose option 3 or 4 you must name as your beneficiary a person who
qualifies as a joint annuitant.
After You Retire
If you retire under option 1 or 2 you may change your designated beneficiary at any
time. If you choose option 3 or 4 you may change your joint annuitant only two times
after your retirement benefit has started. When you change your joint annuitant, the
monthly benefit you receive will be adjusted based on your current age and the age
of your new joint annuitant (Code Ch. 2-16.09(2) & (3)).
VESTING
Being vested means you are eligible to receive a current or future retirement benefit.
You vest in the Plan upon the completion of six years of creditable service. Once you
vest, you are eligible for a future benefit when you leave employment with the City
and apply for your retirement benefit. Being vested does not entitle you to a disability
benefit based on a disability that occurs after you terminate employment (Code Ch. 2-
16.01(26)).
You will lose your vested rights if:
You forfeit your benefits as described under the section titled “FORFEITURE OF
BENEFITS” (Code Ch. 2-16.20).
You receive a refund of your personal retirement contribution (Code Ch. 2-16.09 (1)).
TERMINATING EMPLOYMENT BEFORE RETIREMENT
Whenever you terminate your covered employment before retiring, you have some
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decisions to make. Your available options will vary depending upon your vesting
status at the time of your termination (Code Ch. 2-16.09).
Before You Are Vested
If you terminate your employment with the City prior to being vested, retirement is
not an option. However, you can:
Receive a refund of your personal contributions, or
Leave your personal contributions on deposit with the Plan. The service credit is
not lost and will be combined with any additional service credit you may earn for
covered employment in the future.
After You Are Vested
If you are vested when you terminate your employment with the City, you can:
Receive a refund of your personal contributions, or
Leave your personal contributions on deposit with the Plan. The service credit is
not lost and will be combined with any additional service credit you may earn for
covered employment in the future, or
Retire. Depending on your age, you could take a normal retirement or early
retirement or you could defer your retirement until a future date of your choice:
If you qualify for normal retirement, your unreduced benefit will be based on
all years of creditable service which you either earned or purchased.
If you chose to retire early (before reaching your normal retirement date) your
benefit will be reduced based upon your age at retirement.
To avoid or minimize benefit reduction for early retirement, you could choose
to postpone your retirement. If you defer retirement, the amount of your
benefit will be calculated using your age at the time you begin receiving
retirement benefits.
YOUR RETIREMENT BENEFIT
Retirement Benefit Formula
The monthly pension benefit payment you receive when you retire depends on your
Average Final Compensation, age, Percentage Value, years of Creditable Service, and
the benefit payment option you select. The formula for calculating the normal annual
retirement benefit is as follows (Code Ch. 2-16.06(2)(b)):
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First, calculate the normal annual retirement benefit like this –
Average
Final
Compensation
times Percentage
Value times
Years of
Creditable
Service
equals Normal Annual
Retirement Benefit
Then calculate the normal monthly retirement benefit by dividing the normal annual
retirement benefit by 12 like this –
Normal Annual
Retirement Benefit divided by 12 equals Normal Monthly
Retirement Benefit
Average Final Compensation is the average annual compensation of the five
best years of Creditable Service prior to retirement. Compensation includes
regular earnings, overtime pay of up to 300 hours annually, vacation pay, and sick
pay. Compensation does not include payments for bonuses, clothing, meal,
mileage, telephone (cell phone) allowance, mileage, or vehicle allowances. For
General Employees hired prior to July 1, 2011, compensation includes payments
for unused annual leave at termination not to exceed the lesser of the amount of
leave accrued as of June 30, 2011, or 500 hours(Code Ch. 2-16.01(3)).
Percentage Value is the value you receive for each year of your Creditable
Service. This value is 1.6%. However, if at the time of retirement you have more
than 30 years of Creditable Service or are older than 62 years of age, then the
applicable rate is as follows (Code Ch. 2-16.06(2)):
Age 63 or 31 years of creditable service 1.63%
Age 64 or 32 years of creditable service 1.65%
Age 65 or older or 33 or more years 1.685%
Creditable Service is your total number of years and fractional parts of years of
service you worked in a covered position with the City (Code Ch. 2-16.01(10)):
Other Types of Creditable Service. In addition to the service credit you earn
for current work, you may be able to claim credit for certain other types of service
to increase your benefits. To receive extra service credit, you may be required to
pay additional retirement contributions. Other types of qualified creditable service
include the following:
Military Leave-of-Absence Credit - A military leave-of-absence occurs when you
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leave your City General Employee position to serve in the United States
military. If you return to City employment as General Employee within one
year of release from active military service, you may receive credit for up to
five years of such active military service.
Workers’ Compensation Credit - You may claim up to two years of creditable
service for periods you receive temporary Workers’ Compensation payments if
you return to City employment as a General Employee for at least 30 days or
you retire on a disability.
Leave-of-Absence Without Pay Credit - A leave-of-absence without pay is a
period when you are on an approved leave from work without pay, and plan to
return to work after your leave. You may claim up to two years of such time
as creditable service if you have at least 10 years of creditable service, the
leave was approved, in writing, in advance, by both the City and the Board of
Trustees, you return to work as a City General Employee immediately upon
termination of the leave-of-absence and remain employed for at least 30 days,
and you pay into the Pension Trust Fund the full amount of both the City and
employee contributions, with interest, for the period of creditable service
claimed.
RETIRING FROM THE CITY
Normal Retirement
Your normal retirement date is the time you are first eligible to receive a retirement
benefit without a reduction of the benefits because of your age. You qualify for normal
retirement at the earlier of (Code Ch. 2-16.06(1)):
The attainment of age 62 and the completion of 6 years of Credited Service, or,
The completion of 30 years of Credited Service, regardless of age.
Early Retirement
If you are vested but have not reached your normal retirement date or age you can
take early retirement. The amount of the retirement benefit will be reduced by five
percent (5%) for each year the commencement of retirement benefits precedes your
normal retirement date (age 62 with at least 6 years of creditable service, or, 30 years
of creditable service regardless of age). For example, if you were to retire after 25
years of creditable service, 5 years before the full 30 years of service necessary for
normal retirement, your monthly pension benefit would be reduced by 25% (5 years
X 5% = 25%) (Code Ch. 2-16.06(4) & (5)).
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Retirement Benefit Options
Upon retirement, before you can begin receiving your pension benefits, you must
choose one of the four benefit options, or methods of payment, described below. Once
you cash or deposit a benefit payment your option selection cannot be changed.
Option 1 is considered the normal retirement option. Options 2, 3, and 4 are adjusted
to be actuarially equal to Option 1.
Option 1 Life Only. This option provides a monthly pension benefit for so long as
you live. Upon your death no further benefits will be paid. This is
considered the normal retirement option (Code Ch. 2-16.06(3)).
Option 2 10 Years Certain and Life Thereafter. Like Option 1, this option provides
a monthly pension benefit to you for so long as you live. However, if
you die within 10 years after your effective retirement date, your
beneficiary will receive a monthly benefit payment in the same amount
as you were receiving for the balance of the 10 year period. No further
benefits are then payable. Because of the 10 year guarantee the Option
2 monthly benefit is less than the Option 1 benefit (Code Ch. 2-16.10(1)(a)).
Option 3 Joint Annuitant. This option provides a reduced monthly pension benefit
to you while both you and your joint annuitant are living. Upon the
death of either you or your joint annuitant, the monthly pension benefit
payment to the survivor will be adjusted to 100%, 75%, 66 2/3% or
50% of the amount you were receiving while you both were living. At
the time you retire, you must choose the adjustment percentage. No
further benefits are payable after both you and your joint annuitant are
deceased (Code Ch. 2-16.10(1)(b)).
Option 4 Social Security Option. This option is designed to provide a more level
retirement allowance throughout your retirement period. If you retire
prior to the time at which Social Security benefits are payable, you may
elect to receive an increased retirement benefit until such time as Social
Security benefits shall be assumed to commence and a reduced benefit
thereafter. Upon your death no further pension benefits are payable
(Code Ch. 2-16.10(1)(c)).
DISABILITY BENEFITS
Regular Disability Benefits
You are eligible for regular disability benefits if you have completed at least 8 years
of creditable service. Your disability must be total and permanent and the injury or
illness causing the disability must have occurred before you terminate employment
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with the City. The minimum regular disability retirement benefit paid under Option 1
is 25% of your average final compensation. Your actual earned benefit, based on your
years of service, will be used if it is higher than the minimum of 25% (Code Ch. 2-16.08).
In-Line-of-Duty Disability Benefits
You are eligible for in-line-of-duty disability benefits beginning on your first day of
covered employment, regardless of length of service. An in-line-of-duty disability
must be total and permanent and caused by injury or illness that happens in the
performance of duties required by your job. The minimum in-line-of-duty disability
retirement benefit paid under Option 1 is 42% of your final average compensation.
Your actual earned benefit, based on your years of service, will be used if it is higher
than the minimum of 42% (Code Ch. 2-16.08(3)).
Conditions Disqualifying Disability Benefits
You may not claim, nor will you receive, disability pension benefits if the disability is
the result of (Code Ch. 2-16.08(2)):
Excessive or habitual use of any drugs, intoxicants or narcotics.
Injury of disease sustained while willfully and illegally participating in fights, riots
or civil insurrections.
Injury or disease sustained while committing a crime.
Injury or disease sustained while serving in any branch of the Armed Forces.
Injury or disease sustained after your employment as a General Employee of the
City has been terminated.
Willful, wanton or intentional misconduct or gross negligence.
False, misleading or fraudulent statements made to obtain retirement benefits.
Injury or disease sustained while you were working for anyone other than the City
and arising out of such employment.
A condition pre-existing your membership in the Plan.
Intentional, self-inflicted injury.
Optional Disability Benefits
In addition to the disability benefits provided by this Plan, the City provides all City
employees the opportunity to purchase additional disability insurance through payroll
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deduction at group rates. The City offers both short-term and long-term disability
options. Short-term covers temporary disabilities lasting less than 6 months. Long-
term covers long-term or permanent disabilities lasting 6 months or more. These
policies pay income directly to you in the event you become disabled as defined by
the insurance policies. Disability benefits provided by the Pension Plan are not offset
or reduced by benefits you may receive from these optional disability insurance
programs. Further information on these optional disability insurance programs can
be obtained from the City’s Human Resources Department.
SURVIVOR BENEFITS
Regular Survivor Benefits
If you die other than in the line of duty with less than 6 years of creditable service the
Plan will refund 100% of your accumulated Member contributions. Other than that
there are no pension benefits available to your survivors.
If death occurs after you have completed 6 years of creditable service, your
beneficiary, who is your spouse, dependent child or any person receiving at least 50%
of his or her support from you, is entitled to an immediate or deferred lifetime monthly
benefit calculated as if you had retired on the date of death and chosen the 100%
joint and survivor benefit option (Option 3). The benefit will be adjusted for early
retirement if you were not of normal retirement age at the time of your death (Code
Ch. 2-16.07(2)).
If your beneficiary does not qualify as a joint annuitant no monthly benefit would be
payable.
In Line of Duty Survivor Benefits
If you die in the line of duty your spouse is entitled to a lifetime monthly benefit equal
to one-half of your last monthly salary or your spouse may elect to receive an
immediate or deferred lifetime monthly benefit calculated as if you had retired on the
date of death and chosen the 100% joint and survivor benefit option (Option 3). The
benefit will be adjusted for early retirement if you were not of normal retirement age
at the time of your death. Your spouse can receive these benefits regardless of your
length of service and even if you named someone else as your beneficiary. If you
leave no surviving spouse or if your spouse should die, the benefit will be paid on
behalf of your dependent children until the youngest child reaches 18 years of age or
marries, whichever comes first. These survivor benefits supersede any other
distribution that might have been provided by your designation of beneficiary (Code Ch.
2-16.07(1)).
Other Survivor Benefits
In addition to the pension benefits provided by the Plan, if you die while actively
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employed by the City as a General Employee, your survivors may be entitled to other
death benefits. The City, at its expense, provides life insurance for every full-time
employee.
If you die while employed by the City this policy will provide a single death benefit to
survivors equal to your annual salary. If you die from an accident this amount is
doubled.
If you die from an accident while on the job there is an additional survivor benefit of
$70,100 payable to your survivors. This amount is subject to periodic adjustment.
In addition to the preceding, you may purchase, at your expense, additional life
insurance coverage at group rates through payroll deduction. Further information on
this City program can be obtained from the City’s Human Resources Department.
AFTER RETIREMENT
Cost-of-Living Increase
Retirees receive an annual 3% cost-of-living increase on October first of each year.
The first cost-of-living increase will be a prorated amount if you have not been retired
for one full year (Code Ch. 2-16.11).
Health Insurance Coverage
The City offers retirees, at the retirees’ expense, the option of continuing to participate
in the City’s group health insurance plan for active employees. The premium cost of
health insurance offered to retirees is the same as that paid by the City for each active
employee.
Employment or Re-employment with the City
You can be employed by any employer other than the City without affecting your
pension benefits (Code Ch. 2-16.09(7)).
The Plan allows you to be re-employed by the City in any capacity at the sole discretion
and option of the City. However, you:
must meet the Plan’s definition of termination,
must have been terminated for at least a year, and
cannot participate in any City funded pension plan while you are re-employed by
the City.
Pension benefit payments to you will be suspended so long as you are re-employed
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by the City. Re-employed retirees are not eligible for Plan disability benefits.
FORFEITURE OF BENEFITS
Specific Offenses
If you are convicted of any of the following offenses committed prior to retirement, or
your employment with the City is terminated because you admitted to commission,
aid or abetment of the following offenses, you forfeit all rights to any pension benefits
under this Plan, except for the return of your accumulated personal contributions as
of the date of termination. Specific offenses are as follows (Code Ch. 2-16.20(1)):
Committing, aiding or abetting of an embezzlement of public funds;
Committing, aiding or abetting of any theft by a public officer or employee from
employer;
Bribery in connection with the employment of a public officer or employee;
Any felony specified in Chapter 838, Florida Statutes except ss. 838.15 and
838.16;
The committing of an impeachable offense;
The committing of any felony by a public officer or employee who willfully, and
with intent to defraud the public or public agency for which he or she acts or in
which he or she is employed, of the right to receive the faithful performance of his
or her duty as a public officer or employee, realizes or obtains or attempts to
obtain a profit, gain, or advantage for himself or herself or for some other person
through use or attempted use of the power, rights, privileges, duties or position of
his or her public office of employment position.
The committing on or after October 1, 2008, of any felony defined in section
800.04, Florida Statutes, against a victim younger than 16 years of age, or any
felony defined in chapter 794 against a victim younger than 18 years of age, by a
public officer or employee through the use or attempted use of power, rights,
privileges, duties, or position of his or her public office or employment position;
Fraud
Any Member or Beneficiary convicted of willfully and knowingly making, or causing to
be made, or to assisting, conspiring with, or urging another to make, or cause to be
made, any false, fraudulent, or misleading oral or written statement or withholding or
concealing material information to obtain a benefit available under the Plan may, in
the discretion of the Board, be required to forfeit the right to receive any or all benefits
to which the person would otherwise be entitled under the Plan. For purposes of this
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paragraph, “conviction” means a determination of guilt that is the result of a plea or
trial, regardless of whether adjudication is withheld (Code Ch. 2-16.20(2)).
Strikes
Any Member who, prior to retirement, is adjudged by a court of competent jurisdiction
to have violated any state law against strikes by public employees, or who has been
found guilty by such court of violating any state law prohibiting strikes by public
employee, shall forfeit all rights and benefits under this chapter, except the return of
his or her accumulated contributions, without interest, as of the date of the conviction
(Code Ch. 2-16.20(3)).
Beneficiary Forfeiture of Benefits
Any beneficiary who by a verdict of a jury or by the court trying the case without a
jury is found guilty, or who has entered a plea of guilty or nolo contendere, of
unlawfully and intentionally killing or procuring the death of the Member forfeits all
rights to the deceased Member’s benefits under this Plan, and the benefits will be paid
as if such beneficiary had predeceased the decedent (Code Ch. 2-16.20(4)).
Conviction Defined
Conviction shall be defined as an adjudication of guilt by a court of competent
jurisdiction; a plea of guilty or a nolo contendere; a jury verdict of guilty when
adjudication of guilt is withheld and the accused is placed on probation; or a conviction
by the Senate of an impeachable offense (Code Ch. 2-16.20(5)).
Court Defined
Court shall be defined as any state or federal court of competent jurisdiction which is
exercising is jurisdiction to consider a proceeding involving the alleged commission of
a specified offense. Prior to forfeiture, the Board shall hold a hearing on which notice
shall be given to the Member whose benefits are being considered for forfeiture. Said
Member shall be afforded the right to have an attorney present. No formal rules of
evidence shall apply, but the Member shall be afforded a full opportunity to present
his or her case against forfeiture (Code Ch. 2-16.20(6)).
Withholding of Benefits
Benefits will not be paid pending final resolution of such charges against a Member or
Beneficiary if the resolution of such charges could require the forfeiture of benefits as
provided in this section (Code Ch. 2-16.20(7)).
Return of Benefits
Any Member who has received benefits from the Plan after Member’s rights were
forfeited shall be required to pay back to the Trust Fund the amount of benefits
received. The Board may implement all legal action necessary to recover such funds
(Code Ch. 2-16.20(8)).
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CLAIMS PROCEDURES
Pension benefits are not automatic, you have to file a claim to receive any benefits.
This begins with you. Contact the City’s Human Resources Department (HR) to begin
the process. The Human Resources Department will provide you with an Application
for Service Retirement package. In this package you will find the forms that must be
completed along with information designed to help you make your retirement benefit
decisions. You can submit your claim up to six months prior to your desired retirement
date. We suggest you contact Human Resources at least 90 days before you plan to
retire. You can change the information on the application before it is processed.
However, once you have cashed or deposited your first retirement payment you
cannot make any changes.
If your claim for benefits is denied, you have the right to appeal this decision directly
to the Board of Trustees. Again, contact the Human Resources Department and let
them know you want to appeal. They will pass this on to the Board of Trustees. The
Board will decide to schedule a date for your appeal hearing. The Board’s decision is
final.
GENERAL INFORMATION
Applicable Law
The Plan is governed by federal, state and local laws including, but not limited to, the
following:
United States Internal Revenue Code and amendments thereto.
The federal Employee Retirement Income Security Act (ERISA) of 1974 and
amendments thereto.
Part VIII, Chapter 112, Florida Statutes, "Actuarial Soundness of Retirement
Systems".
Chapter 2, Article II, Division 1 of the Code of Ordinances of the City of Altamonte
Springs.
Other ordinances, resolutions and policies of the City of Altamonte Springs.
Administrative rules and regulations adopted by Board of Trustees
Plan Year and Plan Records
The Plan year begins on October 1st of each year and ends on September 30th of the
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following year. All records of the Plan are maintained on the basis of the Plan year.
Assignment, Execution or Attachment
Except as otherwise provided by law, your retirement benefits and accumulated
contributions accrued under this Plan are not subject to execution, attachment,
garnishment or any other legal process and are not assignable.
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FINANCIAL AND ACTUARIAL INFORMATION
The Plan is audited annually. An annual financial report is included in the City’s
Comprehensive Annual Financial Report. A separate actuarial report on the solvency
and actuarial soundness of the Plan is prepared annually. Copies of either or both of
these reports are available from the City’s Finance Department. The following is
selected financial and actuarial information.
Fiscal Year *
2014 2015
FINANCIAL INFORMATION
Plant net position
Restricted for pensions as of September 30th 17.04$ 16.98$
Plan investments
Market value as of September 30th
U.S. treasuries 0.09$ 0.09$
Corporate bonds 0.73 -
Mutual funds 4.51 5.63
Common stocks 11.65 11.20
Total investments 16.98$ 16.92$
Increase in net position
For the year ended September 30th 2.84$ (0.06)$
ACTUARIAL INFORMATION at September 30th
Funding progress
Plan fiduciary net position 17.04$ 16.98$
Total plan pension liabliity 15.43 17.79
Unfunded actuarial accrued liability 1.61$ (0.81)$
Precentage funded 110% 95%
Employer contributions
Actuarially determined contribution 1.06$ 1.15$
Contribution in relation to the
actuarially determined contribution 1.11 1.20
Contribution defiency (excess) (0.05)$ (0.05)$
Covered payroll 9.02$ 9.81$
Contributions as a percentage
of covered payroll 12.3% 12.2%
Plan membership
Active 219 242
Retirees and beneficiaries 30 35
Vested terminated and limited members 62 65
* Note: Dollar figures are in millions.
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GLOSSARY OF TERMS
The following is a list of terms and definitions which may be helpful in understanding
your pension benefits.
Average Final Compensation is the average annual compensation of the five best
years of creditable service (Code Ch. 2-16.01(3)).
Beneficiary is the person or persons you designate to receive any benefits which may
be payable upon your death (Code Ch. 2-16.01(4)).
Creditable Service is the aggregate number of years you work as a General
Employee and may include other types of qualified service periods (Code Ch. 2-16.01(10)).
Early Retirement Age or Date is the age or date when, after you have been vested,
you choose to receive a retirement benefit which is reduced because you have not
reached normal retirement age (Code Ch. 2-16.06(4)).
Joint Annuitant or Pensioner means a beneficiary who is eligible to receive
continuing benefits upon your death either benefit options 3 or 4. To qualify as a joint
annuitant, your beneficiary must be (Code Ch. 2-16.01(16)):
your spouse, or
your natural or adopted child who is either under age 25, or physically or mentally
disabled and incapable of self-support, regardless of age, or
any person under the age of 25 for whom you are the legal guardian and who is
financially dependent on you for no less than one-half of his or her support, or
any person, age 25 or older, who is financially dependent on you for no less than
one-half of his or her support, and is your parent, grandparent, or a person for
whom you are the legal guardian.
Normal Retirement Age or Date is the age or date when you first become eligible
to retire, without a reduction of benefits, by being vested and reaching age 62 or
completing 30 years of creditable service regardless of age (Code Ch. 2-16.06(1)).
Termination occurs when you end all employment with the City.
Vested or Vesting is the guarantee that you will receive future benefit after you work
a certain number of years. You are vested after completing 6 years of creditable
service (Code Ch. 2-16.01(26)).
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NOTES
S:\FI\pensions\DEFINED BENEFIT\GENERAL EMPLOYEES\Forms and Publications\Handbooks\General Employees\Gen. Emp. Handbook - 2016 (final).docx
82
The Altamonte Springs Retirement System
POLICE OFFICERS’
PENSION PLAN
A Retirement Guide
for Police Officers
October 2016 Edition
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TABLE OF CONTENTS
Introduction .......................................................................................... 3
Basic Plan Information ............................................................................ 4
Board of Trustees ................................................................................... 5
Membership .......................................................................................... 5
Contributions ......................................................................................... 6
Beneficiary Designation ........................................................................... 7
Vesting ................................................................................................. 7
Terminating Employment ........................................................................ 8
Your Retirement Benefit .......................................................................... 8
Retiring from the City ............................................................................. 10
Disability Benefits .................................................................................. 11
Survivor Benefits ................................................................................... 13
Share Plan ............................................................................................ 15
After Retirement .................................................................................... 16
Forfeiture of Benefits .............................................................................. 16
General Information ............................................................................... 18
Financial and Actuarial Information ........................................................... 19
Glossary of Terms .................................................................................. 20
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INTRODUCTION
Upon hiring, all full time City employees are automatically enrolled in one of the
employee pension plans offered by the City. These include:
The Florida Retirement System (FRS) – Includes all full-time employees hired prior
to January 1, 1996.
The Altamonte Springs Police Officers’ Pension Plan – Includes all full-time Police
Officers hired on or after January 1, 1996.
The Altamonte Springs General Employees’ Pension Plan – Includes full-time
employees other than Police Officers hired on or after January 1, 1996
The Altamonte Springs Employees’ Investment Plan – Includes General Employees
who have elected to move from the General Employees’ Pension Plan to the
Employees Investment Plan. This plan is not available to Police Officers.
For pension purposes full-time employees carry one of several classifications. These
include:
Police Officer - Sworn Police Officers
General Employee - all full time employees other than Police Officers further
classified as either –
Regular Employee - General Employees other than Senior Management
Senior Management – Department Directors, City Manager, and Elected
Officials.
This Summary Plan Description is for employees enrolled in the Altamonte Springs
Police Officers’ Pension Plan. There are separate summary plan descriptions for
the Florida Retirement System, Altamonte Springs General Employee’s Defined Benefit
Pension Plan and the Altamonte Springs Employee Investment Plan. This guide
explains your retirement plan - its benefits and policies, and your rights as a member
of the City of Altamonte Springs Police Officers' Pension Plan. Membership in the
Pension Plan is an important benefit provided to you by the City.
This guide is a basic employee handbook intended to be a reference for you. Inside
you will find explanations of certain provisions of your Pension Plan. You are
encouraged to study these provisions to familiarize yourself with the benefits provided
by the Plan.
This handbook is only a brief explanation of the Plan. If there are any conflicts
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between this handbook and the ordinances of the City of Altamonte Springs, the
ordinances will govern. A copy of the ordinances governing the Plan can be obtained
from the City Clerk. If you have questions about a particular item or issue, please
contact the City’s Human Resources Department.
BASIC PLAN INFORMATION
Name of Plan The Altamonte Springs Police Officers’ Pension Plan (the Plan).
Type of Plan The Plan is a defined benefit plan, qualified under section 401(a)
of the Internal Revenue Code.
Administration The Plan is administered by the Altamonte Springs Police
Officers’ Pension Plan Board of Trustees (Code Ch. 2-42.03).
Service of
Legal Process
The Board Chairman is designated for service of legal process.
The contact information is:
Board Chairman, Altamonte Springs Police Officers Pension Plan
225 Newburyport Avenue
Altamonte Springs, FL 32701
Provisions
of Law
The Plan was established in 1995 and is operated pursuant to
applicable law including but not limited to the United States
Internal Revenue Code, Chapters 112 and 185, Florida
Statutes, City Code of Ordinances (“Code”), Chapter 2, Article
II, Division 4, and other City ordinances and resolutions.
Funding The Plan is contributory; contributions are made by members
and the City (Code 2-42.05).
Plan Year The plan year is October 1st through September 30th. Plan
records are maintained on a Plan Year basis (Code 2-42.01(20)).
Employment
Rights Not
Implied
Membership in the Plan does not give you the right to be
retained in the employ of the City, nor does it give you a right
or claim to any benefit you have not accrued under the terms
of the Plan.
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BOARD OF TRUSTEES
The City of Altamonte Springs Police Officers' Pension Plan is administered by a Board
of Trustees. The Board consists of five Trustees, two of whom are legal residents of
the City appointed by the City Commission, two of whom are Members of the Plan
(Police Officers elected by other Police Officers who are Members of the Plan), and a
fifth Trustee who is chosen by a majority of the first four Trustees and appointed by
the City Commission. Each Trustee serves a four year term.
The Board meets once every three months usually in City Hall. The dates, times and
locations of these meetings are publicly posted. The meetings are open to the public.
The names and contact address of the Trustees are listed below. The Chairman of the
Board of Trustees is designated as agent for the service of legal process.
Board of Trustees
Elected Board Members
Daniel L. Smutz, Chairman
225 Newburyport Avenue
Altamonte Springs, FL 32701
Steven F. Deloach, Jr.
225 Newburyport Avenue
Altamonte Springs, FL 32701
Board Members Appointed by the City Commission
James Perry, Secretary
225 Newburyport Avenue
Altamonte Springs, FL 32701
Vacant
5th Member
Charles Stansel
225 Newburyport Avenue
Altamonte Springs, FL 32701
MEMBERSHIP
Membership in the Plan
Each full-time sworn City Police Officer hired on or after January 1, 1996, becomes a
Plan Member as a condition of employment (Code 2-42.02).
Social Security Coverage
As a City employee you are automatically covered for Social Security and Medicare.
Your pension plan benefits provided through the Police Officers’ Pension Plan are not
offset (reduced) by Social Security benefits you receive. Social Security contributions
are automatically deducted from your salary and matched by the City. Although Social
Security coverage is a part of your overall benefit package, the City has no control
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over your Social Security or Medicare benefits. Information on Social Security or
Medicare benefits can be obtained from the local Social Security office or call the toll-
free number, 1-800-772-1213, or visit their website at www.ssa.gov.
Deferred Compensation Program
In addition to the pension benefits provided by the Pension Plan, as a City employee
you have the opportunity to participate in the City’s deferred compensation program
operated under Section 457 of the Internal Revenue Code. This program provides you
the opportunity to build tax-deferred retirement savings separate and distinct from
the Pension Plan.
You can elect to defer a portion of your compensation on a pre-tax basis through
payroll deduction. This pre-tax advantage allows you to defer federal income taxes
on the amount you invest, as well as on earnings on your investments, until you
withdraw your money from the program, usually during retirement when you may be
in a lower tax bracket. The amounts you withdraw from your deferred compensation
account are in addition to pension plan benefits or any other benefits you may receive.
This program is completely voluntary with deposits into your deferred compensation
account made solely by you. Your pension plan benefits provided through the Pension
Plan are not affected in any way by your participation in the deferred compensation
program. Further information can be obtained from the City’s Human Resources
Department.
CONTRIBUTIONS
The Plan is an employee contributory plan. This means you are required to contribute
to the Plan. One percent (1%) of your compensation is deducted from payroll and
paid into the Plan. Use of these contributions is restricted for the sole purpose of
funding the Plan. Other contributions come from the State and the City. The City is
ultimately responsible for contributing sufficient funds to ensure the Plan remains
adequately funded (Code 2-42.05).
Refund of Contributions
You may request a refund of contributions you made to the Plan if you terminate all
employment with the City. Your refund will not include contributions made by or from
any source other than yourself nor will your refund include any interest. Further
information can be obtained from the City’s Human Resources Department (Code 2-
42.10(1)).
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BENEFICIARY DESIGNATION
Before You Retire
A beneficiary is a person or persons named by you to receive any pension benefits
due if die before retirement. When you started work you should have filled out a form
naming one or more beneficiaries. You may name any person or persons you choose
as beneficiary (Code 2-42.13(1)).
You may change the beneficiary at any time by completing a new designation of
beneficiary form. This is important to remember if your designated beneficiary dies
or your marital or family status changes. A Member’s will or divorce decree has no
bearing on how Member survivor’s benefits are paid. Any benefits due upon your
death are paid only to the designated beneficiaries or to your estate if you have not
named a beneficiary or if your designated beneficiary has died (Code 2-42.21).
When You Retire
When you retire you will be asked to rename a beneficiary and to choose a retirement
option on your application for retirement. Retirement options are explained later under
the section titled “RETIRING FROM THE CITY”.
If you choose option 1, 2, or 4 you may name a beneficiary as described above.
If you choose option 3 you must name a person as your joint pensioner
Please refer to the Plan for more details and restrictions on this subject (Code 2-42.11).
After You Retire
If you retire under option 1, 2, or 4 you may change your designated beneficiary at
any time. If you choose option 3 you may change your joint pensioner only two times
after your retirement benefit has started. When you change your joint pensioner, the
monthly benefit you receive will be adjusted based on your current age and the age
of your new joint pensioner annuitant (Code 2-42.11(2)).
VESTING
Being vested means you are eligible to receive a current or future retirement benefit.
You vest in the Plan upon the completion of six years of creditable service. Once you
vest, you are eligible for a future benefit when you leave employment with the City
and apply for your retirement benefit. Being vested does not entitle you to a disability
benefit based on a disability that occurs after you terminate employment (Code 2-
42.10(2)).
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You will lose your vested rights if:
You forfeit your benefits as described in the section “Forfeiture of Benefits”, (Code
2-42.22) or
You receive a refund of your personal employee retirement contributions (Code 2-
42.10(4)).
TERMINATING EMPLOYMENT
Before You Are Vested
If you terminate your employment with the City prior to being vested, you can:
Receive a refund of your personal contributions, or
Leave your personal contributions on deposit with the Plan for a period of up to 5
years and retain all service credit you earned in the event you return to
employment with the City as a Police Officer (Code 2-42.10(1)).
After You Are Vested
If you terminate your employment with the City after you are vested, you can:
Receive a refund of your personal contributions (Code 2-42.10(4)), or
Leave your personal contributions on deposit with the Plan for a period of up to 5
years and retain all service credit you earned in the event you return to
employment with the City as a Police Officer (Code 2-42.10(2)), or
Retire. Depending on your age, you can take a normal or early retirement or defer
your retirement until a future date of your choice. If you defer your retirement,
the amount of your benefit will be calculated using your age at the time you begin
receiving benefits (Code 2-42.10(2)).
If you return to employment with the City as a Police Officer within 5 years of
termination and you have not received a refund of your personal contributions you
will retain all of your earlier creditable service.
YOUR RETIREMENT BENEFIT
Retirement Benefit Formula
Your pension benefit will be paid to you monthly. The amount of the monthly pension
benefit payment you receive when you retire depends on your Average Final
Compensation, age, Percentage Value, years of Creditable Service, and the benefit
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payment option you select. The formula for calculating the normal monthly retirement
benefit is a two-step process illustrated as follows:
First, calculate the normal annual retirement benefit like this –
Average
Final
Compensation
times Percentage
Value times
Years of
Creditable
Service
equals Normal Annual
Retirement Benefit
Then calculate the normal monthly retirement benefit by dividing the normal annual
retirement benefit by 12 like this –
Normal Annual
Retirement Benefit divided by 12 equals Normal Monthly
Retirement Benefit
Average Final Compensation is the average annual compensation of the five
best of the last ten years of Creditable Service prior to retirement. Certain
payments are not included in compensation. These are lump sum payments for
accrued leave, clothing, meal, mileage, telephone, or vehicle allowances, and
overtime in excess of 300 hours per year (Code 2-42.01(4)).
Percentage Value is the value you receive for each year of your Creditable
Service. This amount is 3% (Code 2-42.01(18)).
Creditable Service is your total number of years and fractional parts of years of
service as a City Police Officer with Member contributions (Code 2-42.01(11)).
Other Types of Creditable Service
In addition to the service credit you earn for current work, you may claim credit
for certain other types of service to increase your benefits. To receive extra service
credit, you may be required to pay additional retirement contributions. Other
types of qualified creditable service include the following:
Qualified Military Service. Qualified Military Service occurs when you leave
your Police Officer position to serve in the United States military. If you return
to employment with the City as a Police Officer within one year of release from
active military service, you may receive credit for up to five years of such active
military service (Code 2-42.01(11)(c)).
Workers’ Compensation Credit. You may claim up to two years of creditable
service for periods you receive temporary Workers’ Compensation payments if
you return to employment as a Police Officer for at least 30 days or you retire
on a disability (Code 2-42.01(11)(f)).
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Leave-of-Absence Without Pay Credit. A leave-of-absence without pay is a
period when you are on approved leave from work without pay and plan to
return to work after your leave. You may claim up to 2 years of such time as
creditable service if you have at least 10 years of creditable service, the leave
was approved in writing, in advance, by the City and the Board of Trustees,
you return to work as a Police Officer immediately upon termination of the
leave-of-absence and remain employed for at least 30 days, and you pay into
the Pension Trust Fund the full amount of both the City and employee
contributions, with interest, for the period of creditable service claimed (Code
2-42.01(11)(d)).
Suspension Without Pay Credit. If you are suspended without pay and later
reinstated, you may purchase creditable service for up to two years. You must
return to active employment as a Police Officer for at least 30 days and pay
the Pension Trust Fund the full amount of both City and employee
contributions, with interest, for the period of creditable service claimed (Code
2-42.01(11)(e)).
RETIRING FROM THE CITY
Normal Retirement
Your normal retirement date is the time you are first eligible to receive a retirement
benefit without a reduction of the benefits because of your age. You qualify for normal
retirement at the earlier of (Code 2-42.06(1)):
The attainment of age 55 and the completion of 6 years of Credited Service, or
The completion of 25 years of Credited Service, regardless of age.
Early Retirement
If you have at least 6 years of Credited Service but have not reached your normal
retirement date you can take early retirement. The amount of the retirement benefit
will be reduced by one-quarter of one percent (0.25%) for each month the
commencement of retirement benefits precedes your normal retirement date (age 55
with at least 6 years of creditable service, or, 25 years of creditable service, regardless
of age). For example, if you decide to retire early, after say 20 years of creditable
service, 5 years before your full 25 years of creditable service necessary for normal
retirement, your monthly pension benefit would be reduced by 15% (60 months X
0.25% = 15%) (Code 2-42.06(4)).
Retirement Benefit Options
When you retire and before you can begin receiving your pension benefits, you must
choose one of the four benefit options, or methods of payment, described below. Once
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you cash or deposit your first benefit payment your option selection cannot be
changed.
Option 1 is considered the Normal Benefit Option. Options 2, 3, and 4 are adjusted
to be actuarially equal to Option 1. Generally, Option 2 will provide the highest
monthly benefit since no benefits are payable after you die. For options 1 and 3 the
monthly benefit is usually lower because the total benefits are expected to be paid for
a longer period of time to you and your beneficiary. Under each option the total of
dollar value of benefits is actuarially equal to what you alone are expected to receive
under Option 1.
Option 1 10 Years Certain and Life Thereafter - This option provides a monthly
pension benefit to you for so long as you live. If you die within 10 years
after your effective retirement date, your beneficiary will receive a
monthly benefit payment in the same amount as you were receiving for
the balance of the 10 year period. No further benefits are then payable.
This is considered the normal retirement option (Code 2-42.06(2)).
Option 2 Life Only - This option provides a monthly pension benefit which is
larger than the Option 1 benefit but is only payable for so long as you
live. Upon your death no further benefits will be paid (Code 2-42.11(1)(a)).
Option 3 Joint Annuitant - This option provides a reduced monthly pension
benefit to you while both you and your joint annuitant are living. Upon
the death of either you or your joint annuitant, the monthly pension
benefit payment to the survivor will be adjusted to 100%, 75%, 66
2/3% or 50% of the amount you were receiving while you both were
living. At the time you retire, you must choose the adjustment
percentage. No further benefits are payable after both you and your
joint annuitant are deceased (Code 2-42.11(1)(b)).
Option 4 Partial Lump Sum – This option allows you to take a portion of your
pension benefits in a lump sum at retirement with the balance paid as
a reduced lifetime monthly pension benefit paid as described in Options
1, 2, or 3. (Code 2-42.11(1)(d)).
DISABILITY BENEFITS
Regular Disability Benefits
You are eligible for regular disability benefits if you have completed at least 8 years
of creditable service. Your disability must be total and permanent and the injury or
illness causing the disability must have occurred before you terminate employment
with the City. The minimum regular disability retirement benefit paid under Option 1
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is 25% of your average final compensation. Your actual earned benefit, based on your
years of service, will be used if it is higher than the minimum of 25% (Code 2-42.09(5)).
In-Line-of-Duty Disability Benefits
You are eligible for in-line-of-duty disability benefits beginning on your first day of
covered employment, regardless of length of service. An in-line-of-duty disability
must be total and permanent and caused by injury or illness that happens in the
performance of duties required by your job. The minimum in-line-of-duty disability
retirement benefit paid under Option 1 is 65% of your final average compensation.
Your actual earned benefit, based on your years of service, will be used if it is higher
than the minimum of 65% (Code 2-42.09(4)).
Presumptions
You may be entitled to a presumption that the disability was incurred in the line of
duty if the disability was due to tuberculosis, heart disease, hypertension, hepatitis,
or, meningococcal meningitis pursuant to the provisions of sections 112.18 and
112.181, Florida Statutes (Code 2-42.09(3)).
Optional Disability Benefits Coverage
In addition to the disability benefits provided by the Pension Plan, the City provides
all City employees the opportunity to purchase additional disability insurance through
payroll deduction at group rates. The City offers both short-term and long-term
disability options. Short-term covers temporary disabilities lasting less than six
months. Long-term covers long-term or permanent disabilities lasting longer than six
months. These policies pay income directly to you in the event you become disabled
as defined by the insurance policies. Disability benefits provided by the Pension Plan
are not offset or reduced by benefits you may receive from these optional disability
insurance programs. However, disability benefits provided by these optional disability
insurance programs may be affected by the disability benefits provided by the Plan.
Further information on these optional disability insurance programs can be obtained
from the City’s Human Resources Department.
Other Disability Benefits
If you become disabled you may be eligible for benefits through Florida’s Workers
Compensation Program and/or the Federal Social Security Administration. However,
these programs are administered separately from the Pension Plan. For questions
relating to workers compensation please refer to the Florida Department of Financial
Services, Division of Workers Compensation. For questions relating to Social Security
please refer to the Social Security Administration.
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SURVIVOR BENEFITS
Regular Survivor Benefits
If you die with less than 6 years of creditable service your beneficiary will receive a
refund of your personal contributions (Code 2-42.08(2)(a)).
If death occurs after you have completed 6 years of creditable service, a beneficiary,
who is your spouse, dependent child or any person receiving at least 50% of his or
her support from you, may choose one of the following benefits:
A refund of your personal contributions; or
An immediate or deferred lifetime monthly benefit calculated as if you had retired
on the date of death and chosen the 100% joint and survivor benefit option (Option
3). The benefit will be adjusted for early retirement if you were not of normal
retirement age at the time of your death (Code 2-42.08(2)(b)).
If your beneficiary does not qualify as a joint annuitant, he or she is entitled only to a
refund of your personal contributions. No monthly benefit would be payable (Code 2-
42.08(2)(b)).
In-Line-of-Duty Survivor Benefits
If you die in the line of duty your spouse may elect one of the following two benefit
options.
A lifetime monthly benefit equal to seventy five percent (75%) your average
monthly salary. This benefit continues so long as your spouse is alive, regardless
of his or her future marital status, or,
If you were vested the surviving spouse can elect to receive a monthly benefit
computed as if you retired on the date of death and elected the 100% joint and
survivor optional form of benefit (Option 3).
If your surviving spouse dies the monthly payments paid to your spouse will be
paid for the use and benefit of your natural or adopted child or children under 24
years of age and unmarried. These payments will continue until the 24th birthday
of the youngest child.
If there is no surviving spouse the monthly benefit described above will be paid
for the use and benefit of your natural or adopted child or children under the age
of 24.
If there is neither a surviving spouse or children but there is a surviving parent or
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grandparent or any person age 24 or older for whom you are the legal guardian
and for whom you provide at least one-half of the financial support then the
survivor benefits describe above shall be paid for the use and benefit of such
survivor(s). (Code 2-42.08(1)).
Presumptions
Your survivors may be entitled to a presumption that your death was incurred in the
line of duty if the death was due to tuberculosis, heart disease, hypertension,
hepatitis, or, meningococcal meningitis pursuant to the provisions of sections 112.18
and 112.181, Florida Statutes (Code 2-42.09(3)).
Other Survivor Benefits
In addition to the pension benefits provided by the Plan, if you die while actively
employed by the City as a Police Officer, your survivors may be entitled to other death
benefits. These include:
Basic Life Insurance Coverage. The City, at its expense, provides basic life and
accidental death and dismemberment insurance for every full-time employee. If
you die while employed by the City this policy will provide a single death benefit
to survivors equal to your annual salary. If your death was the result of an
accident, the benefit is two times your annual salary. In addition you may
purchase, at your own expense, additional life insurance coverage at group rates
through payroll deduction.
Additional AD&D Insurance Coverage – Death in Line of Duty. In addition to the
basic life and accidental death and dismemberment insurance the City, at its
expense, provides additional accidental death and dismemberment insurance
coverage for every full-time employee. If you die in an accident while you are on
duty the single benefit to your survivor(s) is $70,700. If your death occurs while
you are in fresh pursuit, responding to an emergency, responding to a traffic
accident, or enforcing a traffic law the death benefit is increased to $141,400. If,
while in the line of duty, you are unlawfully and intentionally killed or die from the
result of such unlawful and intentional act, the death benefit is increased to
$270,680. This policy also provides benefits for dismemberment occurring in the
line of duty, such as the loss of hand(s), feet, speech and hearing, sight and
finger(s). Please note the stated dollar values were the amount in effect as of
October 1, 2015. They are subject to change (Ch. 112.19, Florida Statutes).
Further information on these City programs can be obtained from the City’s Human
Resources Department.
Survivor’s Health Insurance Premium Benefit
If a police officer is killed in the line of duty as the result of an act of violence inflicted
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by another person while engaged in the performance of law enforcement duties or as
a result of an assault against the officer under riot conditions the City will pay the
entire premium for the officer’s surviving spouse until remarried, and for each
dependent child of the of the officer until the child reaches the age of majority or until
the calendar year in which the child reaches the age 25 if:
At the time of the officer’s death the child is dependent on the officer for support;
and
The surviving child continues to be dependent for support, or the surviving child is
a full-time or part-time student and is dependent for support.
There are limitations to this benefit. Please refer to Chapter 112.19, Florida Statutes
for more information.
Survivor’s Education Waiver
If a police officer is accidentally killed as specified in Chapter 112.19(2)(b), Florida
Statutes, or is unlawfully and intentionally killed as specified in Chapter 112.19(2)(c),
Florida Statute, the State of Florida will waive certain educational expenses that the
child or spouse of the deceased officer incurs while obtaining a career certificate, an
undergraduate education, or a postgraduate education. There are limitations to this
benefit. Please refer to Chapter 112.19(3), Florida Statutes for more information.
Public Safety Officers’ Benefits Act
In addition to the survivor benefits described above, the Federal government, through
the Public Safety Officers’ Benefits Act, provides a death benefit to eligible survivors
of police officers who die as the direct and proximate result of a traumatic injury
sustained in the line of duty. The current benefit amount is $339,881 for deaths
occurring on or after October 1, 2015. The amount of the benefit is adjusted on
October 1st of each year to reflect the percentage change in the consumer price index.
Further information on this federal program can be obtained from the U.S. Department
of Justice at their website www.psob.gov .
SHARE PLAN
In addition to regular pension benefits, the Plan provides special benefits to vested
members through the Share Plan, a defined contribution component of the Plan. An
individual investment account will be established for you when you become vested.
Each year a portion of additional premium tax revenues are deposited into your
individual investment account.
These accounts are self-directed. This means you decide how to invest these funds.
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An account will be established for you when you become vested. At that time you
receive individual account information.
When you terminate you will be given the option of receiving the balance in your
individual investment account in cash, less applicable income taxes, or you may elect
to roll it over into another tax deferred account like an IRA. Further information on
the Share Plan can be obtained from the City’s Human Resources Department (Code 2-
42.07).
AFTER RETIREMENT
Cost-of-Living Increase
Retirees receive an annual 3% cost-of-living increase in October of each year. The
first cost-of-living increase will be a prorated amount if you have been retired for less
than one full year (Code 2-42.12).
Retiree Health Insurance Coverage
The City offers retirees, at the retirees’ expense, the option of continuing to participate
in the City’s employee group health insurance plan. The premium cost of health
insurance offered to retirees is the same as that paid by the City for each active
employee. Retirees are required to purchase Medicare parts A and B upon reaching
eligibility year (Ch. 112.0801, Florida Statutes).
FORFEITURE OF BENEFITS
Specific Offenses
If you are convicted of any of the following offenses committed prior to retirement, or
your employment with the City is terminated because you admitted to commission,
aid or abetment of any of the following offenses, you forfeit all rights to any pension
benefits under this Plan, except for the return of your accumulated personal
contributions as of the date of termination. Specific offenses are as follows (Code 2-
42.22(1)):
Committing, aiding or abetting of an embezzlement of public funds;
Committing, aiding or abetting of any theft by a public officer or employee from
employer;
Bribery in connection with the employment of a public officer or employee;
Any felony specified in Chapter 838 (Bribery; Misuse of Public Funds), Florida
Statutes except ss. 838.15 and 838.16.
The committing of an impeachable offense;
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The committing of any felony by a public officer or employee who willfully, and
with intent to defraud the public or public agency for which he or she acts or in
which he or she is employed, of the right to receive the faithful performance of his
or her duty as a public officer or employee, realizes or obtains or attempts to
obtain a profit, gain, or advantage for himself or herself or for some other person
through use or attempted use of the power, rights, privileges, duties or position of
his or her public office of employment position;
The committing on or after October 1, 2008, of any felony defined in Section
800.04, Florida Statutes, against a victim younger than 16 years of age, or any
felony defined in Chapter 794, Florida Statutes, against a victim younger than 18
years of age, by a public officer or employee through the use or attempted use of
power, rights, privileges, duties, or position of his or her public office or
employment position.
Fraud
Any Member or Beneficiary who is convicted of willfully and knowingly making, or
causing to be made, or to assisting, conspiring with, or urging another to make, or
cause to be made, any false, fraudulent, or misleading oral or written statement or
withholding or concealing material information to obtain a benefit available under the
Plan may, in the discretion of the Board, be required to forfeit the right to receive any
or all benefits to which the person would otherwise be entitled under the Plan. For
purposes of this paragraph, “conviction” means a determination of guilt that is the
result of a plea or trial, regardless of whether adjudication is withheld (Code 2-42.22(2)).
Strikes
Any Member who, prior to retirement, is adjudged by a court of competent jurisdiction
to have violated any state law against strikes by public employees, or who has been
found guilty by such court of violating any state law prohibiting strikes by public
employee, shall forfeit all rights and benefits under this chapter, except the return of
his or her accumulated contributions, without interest, as of the date of the conviction
(Code 2-42.22(3)).
Beneficiary Forfeiture of Benefits
Any beneficiary who by a verdict of a jury or by the court trying the case without a
jury is found guilty, or who has entered a plea of guilty or nolo contendere, of
unlawfully and intentionally killing or procuring the death of the Member forfeits all
rights to the deceased Member’s benefits under this Plan, and the benefits will be paid
as if such beneficiary had predeceased the decedent (Code 2-42.22(4)).
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GENERAL INFORMATION
Applicable Law
The Plan is governed by federal, state and local laws including, but not limited to, the
following:
United States Internal Revenue Code and amendments thereto.
The federal Employee Retirement Income Security Act (ERISA) of 1974 and
amendments thereto.
Miscellaneous other Federal laws and regulations.
Chapter 185, Florida Statutes, "Municipal Police Pensions".
Part VIII, Chapter 112, Florida Statutes, "Public Officers and Employees; General
Provisions".
Miscellaneous other State statutes and regulations.
Chapter 2, Article II, Division 4 of the Code of Ordinances of the City of Altamonte
Springs.
Other ordinances, resolutions and policies of the City of Altamonte Springs.
Administrative rules and regulations adopted by the Board of Trustees.
Plan Year and Plan Records
The Plan year begins on October 1st of each year and ends on September 30th of the
following year. All records of the Plan are maintained on the basis of the Plan year
(Code 2-42.01(20)).
Assignment, Execution or Attachment
Except as otherwise provided by law, your retirement benefits and accumulated
contributions accrued under this Plan are not subject to execution, attachment,
garnishment or any other legal process and are not assignable.
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FINANCIAL AND ACTUARIAL INFORMATION
The Plan is audited annually. The annual financial report is included in the City’s
Comprehensive Annual Financial Report. A separate actuarial report on the solvency
and actuarial soundness of the Plan is prepared annually. Copies of either or both of
these reports are available from the City’s Finance Department. The following is
selected financial and actuarial information.
Fiscal Year *
2014 2015
FINANCIAL INFORMATION
Plan net position
Restricted for pensions as of September 30th 13.57$ 13.87$
Plan investments
Market value as of September 30th
U.S. treasuries 0.06$ 0.06$
Corporate bonds 0.72 0.20
Mutual funds 3.85 5.04
Common stocks 8.31 8.53
Total investments 12.94$ 13.83$
Increase in net position
For the year ended September 30th 2.51$ 0.30$
ACTUARIAL INFORMATION at September 30th
Funding progress
Plan fiduciary net position 12.60$ 12.90$
Total plan pension liabliity 13.36 15.90
Unfunded actuarial accrued liability (0.76)$ (3.00)$
Precentage funded 94% 81%
Employer contributions
Actuarially determined contribution 1.00$ 1.04$
Contribution in relation to the
actuarially determined contribution 1.01 0.98
Contribution defiency (excess) (0.01)$ 0.06$
Covered payroll 4.37$ 4.74$
Contributions as a percentage
of covered payroll 23.1% 20.7%
Plan membership
Active 72 79
Retirees and beneficiaries 1 1
Vested terminated and limited members 9 13
* Note: Dollar figures are in millions.
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GLOSSARY OF TERMs
The following is a list of terms and definitions which may be helpful in understanding
your pension benefits (Code 2-42.01).
Average Final Monthly Compensation is one-twelfth (1/12) of the average annual
compensation of the five best years of the last ten years of creditable service.
Beneficiary is the person or persons you designate to receive any benefits which may
be payable upon your death.
Compensation is the total amount paid by the City to a Police Officer for services
and includes regular earnings and overtime for up to 300 hours per year.
Compensation excludes payments for accrued vacation or sick leave, clothing, meal,
telephone, or vehicle allowances. Compensation also excludes payments for extra
duty or special detail work performed on behalf of a second party employer.
Creditable Service is the aggregate number of years you work as a City Police Officer
and may include other types of qualified service periods.
Early Retirement Age or Date is the age or date when, after you have vested, you
choose to receive a retirement benefit which is reduced because you have not reached
normal retirement age or date.
Joint Annuitant or Pensioner means a person you choose to receive continuing
benefits under either benefit options 3 or 4 upon your death.
Normal Retirement Age or Date is the age or date when you first become eligible
to retire, without a reduction of benefits, by being vested and reaching age 55 or
completing 25 years of creditable service regardless of age.
Termination occurs when you end all employment with the City.
Vested or Vesting is the guarantee that you will receive future benefit after you work
a certain number of years. You are vested after completing 6 years of creditable
service.
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NOTES
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The Altamonte Springs Retirement System
POLICE OFFICERS’
SHARE PLAN
A Retirement Guide
for Police Officers
October 2016 Edition
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TABLE OF CONTENTS
Introduction .................................................................................................. 3
Plan Information ............................................................................................ 4
Membership .................................................................................................. 5
Contributions ................................................................................................. 5
Beneficiary Designation ................................................................................... 5
Vesting ......................................................................................................... 5
Investment Funds .......................................................................................... 6
Distributions from the Share Plan ..................................................................... 6
Survivor Benefits ........................................................................................... 8
Disability ...................................................................................................... 8
Situations Affecting Your Benefits ..................................................................... 8
Forfeiture of Benefits ...................................................................................... 9
General Information ....................................................................................... 11
Glossary of Terms .......................................................................................... 11
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INTRODUCTION
When hired, all full time City employees (and elected officials upon election) are
automatically enrolled in one of the employee pension plans offered by the City. These
include:
The Florida Retirement System (FRS) – Includes all full-time employees hired prior
to January 1, 1996.
The Altamonte Springs Police Officers’ Pension Plan – Includes all full-time Police
Officers hired on or after January 1, 1996.
The Altamonte Springs General Employees’ Pension Plan – Includes full-time
employees other than Police Officers hired on or after January 1, 1996
The Altamonte Springs Employees’ Investment Plan – Includes General Employees
who have elected to move from the General Employees’ Pension Plan to the
Employees Investment Plan.
For pension purposes full-time employees carry one of several classifications. These
include:
Police Officer - Sworn Police Officers
General Employee - all full time employees other than Police Officers further
classified as either –
Regular Employee - General Employees other than Senior Management
Senior Management – Department Directors, City Manager, and Elected Officials.
Police Officers who are members of the Altamonte Springs Police Officers’ Pension Plan
are eligible to participate in the Altamonte Springs Police Officers’ Share Plan. This
Summary Plan Description is for employees enrolled in the Altamonte Springs Police
Officers’ Share Plan. The benefits offered through the Share Plan are in addition to
the benefits provided by the Altamonte Springs Police Officers’ Pension Plan.
There are separate summary plan descriptions for the other plans within the Altamonte
Springs Retirement System. This guide explains the Share Plan - its benefits and
policies, and your rights as a member of the City of Altamonte Springs Police Officers’
Share Plan. Membership in the Plan is an important fringe benefit provided to you by
the City.
The Share Plan is a defined contribution retirement plan qualified under Section 401(a)
of the Internal Revenue Code. This means that employer contributions are made to each
member’s account under the Plan. The term “defined contribution” for the Share Plan
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means that contributions are defined (in the Police Officers’ Pension Plan the benefit is
defined). Contributions from the City are deposited in an account established for you
under the Share Plan. Your benefits are based on the total value of your account at
distribution. This amount is based on contributions, plus earnings (if any) on those
contributions, less fees and charges.
This guide is a basic employee handbook and is intended to be a reference for you.
Inside you will find explanations of certain provisions of the share plan. You are
encouraged to study these provisions in order to become familiar with the benefits
provided by the Share Plan.
This document is only a brief explanation of the Share Plan. If there are any conflicts
between this document and the ordinances of the City of Altamonte Springs, the
ordinances will govern. A copy of the ordinances governing the Plan can be obtained
from the City Clerk. A copy of the Plan and Trust Documents can be obtained from the
Human Resources Department. If you have questions about a particular item or issue,
please contact the City’s Human Resources Department.
BASIC PLAN INFORMATION
Name of Plan The Altamonte Springs Police Officers’ Share Plan (the Plan).
Type of Plan The Plan is a defined contribution plan, qualified under section
401(a) of the Internal Revenue Code.
Administration The Plan is administered by the City of Altamonte Springs
thorough it’s agent, the ICMA Retirement Corporation (“ICMA-
RC”).
Service of
Legal Process
The City Manager is the person designated for service of legal
process. The contact information is:
City Manager
City of Altamonte Springs
225 Newburyport Avenue
Altamonte Springs, FL 32701
Provisions
of Law
The Plan was established in 2015 and is operated pursuant to
City ordinances and resolutions, Florida Law, and the U.S
Federal Income Tax Code.
Funding The Plan is non-contributory; contributions to the Plan are made
by the City.
Plan Year The plan year is October 1st through September 30th.
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Employment
Rights Not
Implied
Membership in the Plan does not give you the right to be
retained in the employ of the City, nor does it give you a right
or claim to any benefit you have not accrued under the terms of
the Plan.
MEMBERSHIP
All full-time sworn City Police Officers who are members of the Police Officers’ Pension
Plan are eligible to participate in the Share Plan. However, enrollment is not automatic,
you must complete enrollment forms with your investment elections and beneficiary
designation. You make these choices as part of the enrollment process.
CONTRIBUTIONS
Your Share Plan account is funded by annual contributions from the City and with
investment earnings (if any). The contributions the City makes to your Share Plan
account are considered deferred compensation and as such are not subject to current
federal income taxation. Neither the City's contributions nor the investment earnings
on your account are taxable until you make withdrawals from your Share Plan account.
Withdrawals from your Share Plan account are taxable at the time of the withdrawal at
your then current tax rate.
BENEFICIARY DESIGNATION
As a member of the Share Plan you are required to designate a beneficiary upon
enrollment in the Plan. If you do not name a beneficiary or if your beneficiary has died,
any benefits will be paid according to Florida law.
You may change your beneficiary at any time. If your designated beneficiary dies it is
important for you to submit a new beneficiary designation to be sure your account is
distributed as you wish in case of your death.
VESTING
Vesting refers to the years of creditable service
as an Altamonte Springs Police Officer you must
complete before you are entitled to pension
benefits. For the Share Plan you must complete
at least one year of creditable service before you
have any vested rights. You are fully vested in
the Share Plan after six years of creditable
service as an Altamonte Springs Police Officer.
You are partially vested for shorter periods of
service as shown in the vesting schedule.
Period of
service completed
Percent
vested
Less than 1 year Zero
One year 15%
Two years 30%
Three years 45%
Four years 60%
Five years 75%
Six or more years 100%
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INVESTMENT FUNDS
ICMA-RC, the Plan administrator, offers a wide variety of investment options, including
equity and fixed-income funds that span the risk-return spectrum. The City’s
investment advisors have reviewed the various funds offered by ICMA-RC and, working
with ICMA-RC and City staff, have developed a comprehensive list of funds for our
members, offering the lowest costs and best returns. The complete list can be found
on-line at the ICMA-RC website, www.icmarc.org. The plan number is 10-8495.
Investment Tools and Assistance
In addition to online calculators and educational articles, ICMA-RC offers Guided
Pathways®, a comprehensive suite of investment advisory and account management
services. This program offers three levels of service designed to direct you to the
appropriate level of assistance, based on how involved you want to be in your retirement
investing decisions.
Asset Class Guidance offers you a recommendation on how to divide your
retirement account among asset classes.
Fund Advice offers you a recommendation of specific funds in which to invest (an
additional fee applies for this service).
Managed Accounts offers you ongoing professional management of your
retirement plan assets, based on your personal and financial situation. Additional
fees apply. Managed Accounts may not be suitable for all investors. Please contact the ICMA-
RC Guided Pathways® team or our ICMA-RC representative and fully read the IMCA-RC Guided
Pathways® Fund Advice and Managed Accounts Investment Advisory Agreement prior to
enrolling in Managed Accounts to determine if this service is right for you.
DISTRIBUTIONS FROM THE SHARE PLAN
In general, you are eligible to withdraw vested assets from the Share Plan upon
separation from service with the City (either voluntary or otherwise), disability or
retirement. While employed you may request in-service withdrawals after you reach
age 59½. Your beneficiary is eligible to receive benefits from the Plan in the event of
your death.
Distributions (benefits) from your share account are not automatic. You, or your
beneficiary, must apply for them. ICMA-RC’s 401 Governmental Profit Sharing Plan
Benefit Withdrawal Packet fully details the information you will need to withdraw vested
assets. All necessary forms are provided in the packet. You may obtain a copy form the
City’s Human Resources Department or by contacting ICMA-RC’s Investor Services at
800-669-7400.
Distribution Options
The Plan, through ICMA-RC (plan administrator), offers a variety of options to meet
your needs. You may receive payment as:
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Partial or full lump-sum distribution.
Installment payments (monthly, quarterly, semi-annually, or annually) until your
assets are fully distributed. In addition, an annual automatic cost-of-living
adjustment (COLA) may be elected with this option.
Guaranteed lifetime income solutions to help make your money last. There are two
options which may be available to you and are subject to an insurer’s claims-paying
ability. These are:
A Guaranteed Income Fund – this is an annuity that can also protect lifetime
income from market downtowns and allows access to the market value at any
time (withdrawals in excess of the guaranteed amounts do reduce guaranteed
benefits). Guarantees are provided in exchange for additional fees1. The fund
is generally more appropriate for investors who are within 10 to 15 years of
retirement or already retired.
An Immediate Annuity – ICMA-RC on your behalf transfers a lump-sum
payment from your account to an insurance company, not affiliated with ICMA-
RC or the City, in exchange for a fixed lifetime payout2.
Rollover to another plan or an IRA.
1 Variable annuities are long-term vehicles designed for retirement purposes and contain underlying
investments subject to investment risk, included possible loss of principal.
2 TINCMA-RC partners with select insurance companies that make annuities available through the Income for
Life Annuity program. Participating insurance companies compensate ICMA-RC for providing administrative
services in support of the Income for Life Annuity program. The fee is at an annual rate of 80 basis points
(0.80%) of the purchase amount of the annuity for a period of five years. Please consult Income for Life
Annuity Program: Immediate Annuities for Retirement Income, prior to purchasing an annuity. You may also
obtain a copy by calling ICMA-RC Investor Services at 800-669-7400.
Emergency Withdrawals Not Permitted
The Share Plan is a retirement plan and does not permit distributions by members due
to hardships, unforeseeable emergencies, loans, medical expenses, educational
expenses, the purchase of a principal residence, payments necessary to prevent eviction
or foreclosure on an member’s principal residence, or for any other reason prior to
termination of employment with the City.
Required Minimum Distributions
You may leave your assets in the Plan if your vested balance exceeds the minimum
amount. You may also transfer all or part of and “eligible rollover distribution” to
another employer’s retirement plan (401 qualified plan, 457 deferred compensation
plan, or 403(b) tax sheltered annuity plan) as long as that plan accepts rollovers, or an
IRA (if eligible to consolidate in a Roth IRA, any amounts transferred would be subject to tax up-
front, but future earnings could be tax free).
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Eligible rollover distributions are generally all distributions unless they are: (1) regular,
periodic payments over long periods, such as life expectancy or 10 years or more or (2)
required minimum payments made to participants age 70½ or older. Your employee
after-tax contributions can also be rolled to another 401 qualified plan, 403(b) plan, or
an IRA (these after-tax amounts may not be rolled over to a 457 deferred compensation
plan).
De Minimis Distributions
If your total vested account balance at termination is less than $1,000 it will be paid to
you as soon as possible. You do not have the option of keeping your assets in your
account but you may choose to roll over the balance as described above.
Income Taxes on Distributions
Pre-tax contributions and all earnings are subject to federal income taxes when
withdrawn. Generally, taxable funds withdrawn before age 59½ are subject to an IRS
tax penalty of 10 percent, in addition to ordinary income taxes. There are exceptions,
including withdrawals taken from plans attributable to employers from which you
separated from service in the year you turned age 55 or later. ICMA-RC does not
withhold any portion of your payment to cover the IRS 10 percent penalty. You are
responsible for calculating and paying it when you file your annual tax return.
ICMA-RC does not assess a penalty for any distribution for which you are eligible,
regardless of age or length of plan participation.
SURVIVOR BENEFITS
In the event of your death your eligible beneficiary receives your funds. Under the
Share Plan there are no separate death benefits if you die in the line of duty as provided
in the Defined Benefit Pension Plan.
DISABILITY
The Share Plan does not provide any disability benefits regardless of whether you
become disabled on or off the job. You are urged to seriously consider purchasing
disability insurance. The City offers this coverage to you at group rates. Contact the City
Human Resources Department for more information.
SITUATIONS AFFECTING YOUR BENEFITS
The Share Plan is designed to provide you with income for your retirement. However,
some situations could affect your benefits:
If it is determined by the City or the Share Plan Administrator that you are not
eligible to participate in the Share Plan.
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If you do not apply for payments from the Share Plan before stated deadlines, or if
you do not provide the information requested by the Share Plan Administrator (the
City or one of its contracted partners), your payments may be delayed; or
If your mailing address on file with the Share Plan Administrator is incorrect,
payments from the Share Plan may be delayed. Additionally, you may not receive
statements of your Share Plan account balance or other important notices.
If you receive an invalid distribution from your Share Plan account you will be
required to repay the amount received to the Share Plan within 90 days. Failure to
do so could lead to your being declared retired from the Share Plan, or at the option
of the City, to administrative or legal action. In lieu of repaying the invalid
distribution, you may terminate all employment with the City.
FORFEITURE OF RETIREMENT BENEFITS
Specific Offenses
If you are convicted of any of the following offenses committed prior to retirement, or
your employment with the City is terminated because you admitted to commission, aid
or abetment of the following offenses, you forfeit all rights to any pension benefits under
this Plan, except for the return of your accumulated personal contributions as of the
date of termination. Specific offenses from Ch. 112.3137(2)(e), Florida Statutes, are
as follows:
Committing, aiding or abetting of an embezzlement of public funds;
Committing, aiding or abetting of any theft by a public officer or employee from
employer;
Bribery in connection with the employment of a public officer or employee;
Any felony specified in Chapter 838, Florida Statutes except ss. 838.15 and 838.16;
The committing of an impeachable offense;
The committing of any felony by a public officer or employee who willfully, and with
intent to defraud the public or public agency for which he or she acts or in which he
or she is employed, of the right to receive the faithful performance of his or her
duty as a public officer or employee, realizes or obtains or attempts to obtain a
profit, gain, or advantage for himself or herself or for some other person through
use or attempted use of the power, rights, privileges, duties or position of his or
her public office of employment position.
The committing on or after October 1, 2008, of any felony defined in section 800.04,
Florida Statutes, against a victim younger than 16 years of age, or any felony
defined in chapter 794 against a victim younger than 18 years of age, by a public
officer or employee through the use or attempted use of power, rights, privileges,
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duties, or position of his or her public office or employment position;
Fraud
Any Member or Beneficiary who is convicted of willfully and knowingly making, or
causing to be made, or to assisting, conspiring with, or urging another to make, or cause
to be made, any false, fraudulent, or misleading oral or written statement or withholding
or concealing material information to obtain a benefit available under the Plan may, in
the discretion of the Board, be required to forfeit the right to receive any or all benefits
to which the person would otherwise be entitled under the Plan. For purposes of this
paragraph, “conviction” means a determination of guilt that is the result of a plea or
trial, regardless of whether adjudication is withheld (see Ch. 185.185, Florida Statutes).
Strikes
Any Member who, prior to retirement, is adjudged by a court of competent jurisdiction
to have violated any state law against strikes by public employees, or who has been
found guilty by such court of violating any state law prohibiting strikes by public
employee, shall forfeit all rights and benefits under this chapter, except the return of
his or her accumulated contributions, without interest, as of the date of the conviction.
Beneficiary Forfeiture of Benefits
Any beneficiary who by a verdict of a jury or by the court trying the case without a jury
is found guilty, or who has entered a plea of guilty or nolo contendere, of unlawfully and
intentionally killing or procuring the death of the Member forfeits all rights to the
deceased Member’s benefits under this Plan, and the benefits will be paid as if such
beneficiary had predeceased the decedent.
Conviction Defined
Conviction shall be defined as an adjudication of guilt by a court of competent
jurisdiction; a plea of guilty or a nolo contendere; a jury verdict of guilty when
adjudication of guilt is withheld and the accused is placed on probation; or a conviction
by the Senate of an impeachable offense.
Court Defined
Court shall be defined as any state or federal court of competent jurisdiction which is
exercising is jurisdiction to consider a proceeding involving the alleged commission of a
specified offense. Prior to forfeiture, the Board shall hold a hearing on which notice shall
be given to the Member whose benefits are being considered for forfeiture. Said Member
shall be afforded the right to have an attorney present. No formal rules of evidence shall
apply, but the Member shall be afforded a full opportunity to present his or her case
against forfeiture.
Withholding of Benefits
Benefits will not be paid pending final resolution of such charges against a Member or
Beneficiary if the resolution of such charges could require the forfeiture of benefits as
provided in this section.
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GENERAL INFORMATION
Assignment, Execution, or Attachment
The benefits payable to you under the Share Plan, and any contributions accumulated
under the Plan, are not subject to assignment, execution, attachment, or any legal
process, except for a Qualified Domestic Relations Order (QDRO) issued by a court of
competent jurisdiction, income deduction orders as provided in s. 61.1301, Florida
Statutes, and federal income tax levies. Note that federal income tax levies will only be
honored if you are eligible for a distribution.
If you divorce or legally separate, the Share Plan may be required to follow the
provisions of a QDRO that assigns part or all of your Share Plan account to a former
spouse or for the support of your dependents.
The Share Plan Administrator determines whether a court order is a QDRO. You can
obtain QDRO information from the Share Plan Administrator. Model language is available
to assist in the drafting of a QDRO that meets the requirements of federal law and the
Plan’s provisions.
The Share Plan Administrator will send you a notice if the Plan receives a court order
that could affect your Share Plan account.
Errors and Incorrect or Incomplete Data
Errors may sometimes occur in determining benefits provided by the Share Plan. This
could be due to incorrect or incomplete data or for other reasons. If such an error is
discovered, the Share Plan Administrator and your employer reserve the right to correct
it at any time, including after you terminate employment or take a distribution of your
account balance. If you receive an overpayment as a result of an error, you will be
notified of the amount and will be required to repay it. If you have an underpayment
you will receive an additional payment from the Share Plan Administrator.
Employment Rights in the Share Plan
Participation in the Share Plan or any contributions to the Share Plan on your behalf, or
any other part of Share Plan operation or administration does not give you the right to
continued employment.
GLOSSARY
The following terms are defined as used in connection with the Share Plan and in this
brochure. In an effort to make these provisions easy to understand, nontechnical
language has been used as much as possible. Questions of interpretation will be
governed by City ordinances, State Law, and Federal Law.
Beneficiary: The joint annuitant or any other person, organization, estate, or trust fund
you designate to receive a retirement benefit that may be payable when you die.
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Benefit: Any payment (lump sum or periodic) to you, a retiree, or a beneficiary, based
partially or entirely on employer contributions.
Contributions: The percentage of your gross monthly salary that you and the City
contribute to your account in the Share Plan.
Creditable service: A member receives one month of service credit for each month in
which any salary is paid for work performed.
Date of participation: The date you become a plan member.
Defined contribution plan: A type of retirement plan as defined under Section 401(a)
of the Internal Revenue Code, which defines the amount of contributions which are
made for an employee and that amount is generally related to an employee’s salary.
Eligible employee: An employee or elected official who is a member of or is eligible
for membership in the Share Plan.
Eligible rollovers: A direct plan transfer from an eligible retirement plan to the Share
Plan.
Fiscal Year: A 12-month period beginning October 1 and ending on September 30.
Employee: Any person receiving salary payments for work performed in a regularly
established position and employed in a covered position.
Plan year: The period of time beginning October 1 and ending on the following
September 30, both dates inclusive.
Reemployment: This term means employment after separation from the City.
Salary: Regular payment of compensation by the City to an employee for work
performed, including certain overtime payments.
Retiree: Under the Share Plan, this means a former member of the Plan who has
terminated employment and has taken a distribution of benefits from the plan, except
for a mandatory distribution of a de minimus account balance or a federally mandated
Required Minimum Distribution.
Retirement: Under the Share Plan, this term means the point at which you are vested,
have terminated all covered employment, and have taken a distribution from the Plan.
Termination: This refers to the termination of employment, which occurs when you
end all employment with the City.
Vest, Vested or Vesting: These terms refer to the guarantee of a benefit under the
Share Plan after you work one year for the City and earn creditable service in a regularly
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established position with the City. You will be vested in the Share Plan after you
complete one year of service.
Year of service or work year: The period of time you are required to work to receive
a full year of creditable service.
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FLORIDA RETIREMENT SYSTEM PENSION PLAN
SUMMARY PLAN DESCRIPTION
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SUMMARY PLAN DESCRIPTION FLORIDA RETIREMENT SYSTEM PENSION PLAN
REVISED JULY 2022 PAGE 1
SUMMARY PLAN DESCRIPTION
The following summary is a brief description of the Florida Retirement System Pension Plan as of July 1, 2022. Questions of
interpretation shall be determined from Chapter 121, Florida Statutes, and Chapter 60S of the Florida Administrative Code.
Florida Retirement System membership and benefits are established and changed by the Florida Legislature.
Creation
The Florida Retirement System (FRS) was created Dec. 1, 1970, with the consolidation of the Teachers’ Retirement System, the
State and County Officers and Employees’ Retirement System, and the Highway Patrol Pension Fund. In 1972, the Judicial
Retirement System was consolidated with the FRS. In 2007, the Institute of Food and Agricultural Sciences Supplemental
Retirement Program was consolidated under the Regular Class of the FRS as a closed group. The system was created to provide
a program offering retirement, disability, and survivor benefits for participating public employees. Social Security coverage is also
required for all members.
Membership
Membership in the FRS is specified by law for full-time and part-time employees working in regularly established positions for
state agencies, county governments, district school boards, state universities, and state community colleges or for cities,
independent special districts, metropolitan planning districts, and public charter schools that make an irrevocable election to
participate. Certain members, including elected officials and local government senior managers, may elect not to participate in
the FRS. Members of the Senior Management Service Class (SMSC) may elect to withdraw from the FRS altogether.
Members of the Elected Officers’ Class (EOC) may elect to participate in the SMSC in lieu of the EOC or to withdraw from the
FRS altogether.
FRS retirees initially reemployed on or after July 1, 2010, through June 30, 2017, may not participate in the FRS or any other
state-administered retirement system. Effective July 1, 2017, retirees of specified defined contribution plans1 employed in a
regularly established position are eligible to be enrolled as renewed members of the defined contribution2 plan covering the
position held except the Senior Management Service Optional Annuity Program (SMSOAP) that is closed to new members
while FRS Pension Plan retirees remain ineligible for renewed membership.
The following members may elect to participate in various optional retirement programs instead of the FRS Pension Plan:
Most Pension Plan members (including renewed members initially enrolled prior to July 1, 2010) and State
Community College System Optional Retirement Program participants3 may elect to participate in the FRS Investment
Plan.
Senior Management Service Class members who are state employees (including state-level EOC members who
choose to participate in the SMSC) may elect to participate in the SMSOAP if SMSOAP membership was established
prior to July 1, 2017, and the member has not retired from the SMSOAP. Non-state SMSC members may elect to opt
out of the system altogether. Assistant state attorneys, assistant public defenders, assistant attorneys general, and
assistant statewide prosecutors are state SMSC members who cannot participate in the SMSOAP.
State University System faculty, executive service employees, and administrative and professional employees who
are not eligible for career service participate in the State University System Optional Retirement Program (SUSORP)
unless they fail to sign a contract with a provider company within 90 days of being hired into the SUSORP eligible
position. Faculty at colleges of a state university that has a faculty practice plan are mandatory SUSORP members.
State Community College System faculty and certain administrators whose positions are covered by the Regular Class
may elect to participate in a State Community College System Optional Retirement Program if the college offers an
optional retirement program.
Classes of Membership
Regular Class — This class consists of FRS members who do not qualify for membership in the Special Risk, Special Risk
Administrative Support, Elected Officers’, or Senior Management Service classes.
Special Risk Class — This class consists of FRS members who meet the criteria to qualify for this class according to Florida
law and rules and who are employed as one of the following:
Law enforcement officers;
1 Retirees of the following defined contribution plans are eligible to be enrolled as a renewed member if employed in a regularly established
position on or after July 1, 2017: Senior Management Service Optional Annuity Program (SMSOAP), State University System Optional
Retirement Program (SUSORP), the State Community College System Optional Retirement Program (SCCSORP), and the
FRS Investment Plan.
2 Defined contribution plan retirees initially enrolled on or after July 1, 2017, may be enrolled in the SUSORP, SCCSORP, or the
FRS Investment Plan depending upon the retirement plan covering the position held. The SMSOAP was closed to new members effective
July 1, 2017.
3 Excludes renewed members of the SCCSORP who become initially enrolled on or after July 1, 2017.
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Firefighters, fire prevention and firefighter training positions, and aerial firefighting surveillance pilots for the
Department of Agriculture and Consumer Services;
Correctional officers and community-based correctional probation officers;
Paramedics or emergency medical technicians whose primary duty and responsibility includes on-the-scene
emergency medical care and who are employed with a licensed Advance Life Support or Basic Life Support
employer;
Professional health care workers in specified positions within the Department of Corrections or the Department of
Children and Family Services who spend at least 75 percent of their time performing duties that involve contact with
patients or inmates in a correctional or forensic facility or institution; or
Forensic employees employed by a law enforcement agency or medical examiner’s office.
Special Risk Administrative Support Class — This class consists of certain former Special Risk Class members who are
transferred or reassigned to a non-special risk law enforcement, firefighting, correctional, or emergency services administrative
support position within an FRS special risk-employing agency and meet the criteria set forth in Florida law.
Elected Officers’ Class — This class consists of members who hold specified elective offices in either state or local
government:
State officers include the following: Governor, Lieutenant Governor, Cabinet Officer, Legislator, Supreme Court
Justice, district court of appeal judge, circuit judge, county court judge, state attorney, and public defender.
County officers include the following: sheriff, tax collector, property appraiser, supervisor of elections, school board
member, school board superintendent4, clerk of circuit court, county commissioner, and other elected officials with
countywide authority.
City or special district officers include the following: elected officials in cities and special districts that have chosen to
place their elected officials in the EOC instead of the Regular Class during the six-month window periods offered
in 1997, 2001, 2009, or at the time of joining the FRS on or after Jan. 1, 2010.
Senior Management Service Class — This class consists of members in the following positions:
The Senior Management Service of the State Personnel System;
Community college presidents;
Appointed school board superintendents;
County and city managers;
Selected managerial staff of the Legislature;
The Auditor General and managerial staff;
The Executive Director of the Ethics Commission;
The State University System Executive Service and university presidents;
Selected managerial staff of the State Board of Administration;
Judges of compensation claims;
Selected managerial staff with the judicial branch;
Capital collateral regional counsels and assistant capital collateral regional counsels;
Assistant state attorneys;
Assistant public defenders;
Assistant statewide prosecutors and assistant attorneys general;
Elected officials who chose to join the SMSC in lieu of the EOC;
Nonelective managerial positions designated for SMSC membership by local government agencies;
Chief Deputy Court Administrator;
Adjutant General, Assistant Adjutant General-Army, Assistant Adjutant General-Air, State Quartermaster, Director of
Human Resources, Director of Legislative Affairs, Inspector General, Executive Officer, and selected managerial staff
of the Department of Military Affairs;
County health department directors and administrators of the Department of Health; and
Criminal conflict and civil regional counsels and each district’s assistant regional counsel chief, administrative
director, and chief investigator.
4 The school superintendent is an appointed position by the school board in 26 of the 67 counties in Florida.
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Contributions
Effective July 1, 2002, the Florida Legislature established a uniform contribution rate system for the FRS, covering both the
Pension Plan and the Investment Plan. Effective July 1, 2011, FRS members are required to make employee contributions in
addition to employer contributions to establish service credit for work performed in a regularly established position. The total
uniform contribution rates by membership class for Fiscal Year 2022-23- are as follows:
Class
Employee
Contribution
Rate
Employer
Contribution
Rate*
Total
Contribution
Rate
Regular 3.00% 11.91% 14.91%
Special Risk 3.00% 27.83% 30.83%
Special Risk Administrative Support 3.00% 38.65% 41.65%
Elected Officers’
Judges 3.00% 43.77% 46.77%
Governor, Lieutenant Governor, Cabinet, Legislators,
State Attorneys, and Public Defenders 3.00% 67.79% 70.79%
Elected County, City, and Special District Officials 3.00% 57.00% 60.00%
Senior Management Service 3.00% 31.57% 34.57%
Deferred Retirement Option Program N/A 18.60% 18.60%
*These rates include the 1.66 percent contribution for the Retiree Health Insurance Subsidy, the assessment of
0.06 percent for administration of the FRS Investment Plan and the administration of the MyFRS Financial Guidance
Program for both plans, and an unfunded actuarial liability contribution determined by membership class.
Any member who terminates employment with an FRS employer may receive a refund without interest of any retirement
employee contributions personally made to the system (and lose the associated retirement credit for both their FRS and
Health Insurance Subsidy benefits) or may leave these personal contributions in the system and keep all creditable service
earned through the date of termination.
Creditable Service
Members receive one month of service credit for each month in which any salary is reported for work performed up to their
work period during the plan year. Members may also purchase additional credit to increase their retirement benefits under the
FRS Pension Plan. Credit may be purchased for past service, prior service (including refunded service credit), specified
wartime military service (up to four years) for members enrolled prior to Jan. 1, 1987, approved military leaves of absence,
approved leaves of absence (up to two years), out-of-state public service (including federal service), non-FRS public service,
and non-public service in certain schools or colleges in Florida (up to five years total, including both in-state and out-of-state
service) and for periods of disability retirement after recovery from the disability and return to covered employment. To
purchase this service credit, members must meet certain requirements. Only the purchase of past service, approved military
leaves of absence, and prior service may be included in the creditable years of service needed to vest (see Vesting). All other
types of service credit purchases become creditable service only after a member is vested based on the member’s other
service.
Vesting
Since July 1, 2001, and through June 30, 2011, the FRS Pension Plan has provided for vesting of service retirement benefits
after six years of creditable service. Members not actively working in a position covered by the FRS on July 1, 2001, must
return to covered employment for up to one work year to be eligible to vest with less service than was required under the law
in effect before July 1, 2001. Members initially enrolled on or after July 1, 2011, vest after eight years of creditable service.
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Service Retirement
Members become eligible for normal retirement or unreduced retirement based on their age and/or service when they first
meet one of the minimum requirements listed in the following section. Early retirement or reduced retirement may be taken
after a member is vested and within 20 years of normal retirement age; however, there is a 5 percent benefit reduction for
each year remaining from a member’s retirement age to normal retirement age.
Normal retirement requirements for members initially enrolled before July 1, 2011
Regular Class, Elected Officers’ Class, and Senior Management Service Class
Vested with six years of service and age 62;
The age after 62 that the member becomes vested; or
30 years of service, regardless of age before age 62.
Special Risk Class
Vested with six years of special risk service and age 55;
The age after 55 that the member becomes vested;
25 years of service consisting of both special risk service and up to four years of wartime military
service and age 52;
25 years of special risk service, regardless of age before age 55; or
30 years of any creditable service, regardless of age before age 62.
Special Risk Administrative Support Class
Special Risk Class normal retirement requirements apply to service in this class if a member has at
least six years of Special Risk Class service; otherwise, Regular Class requirements apply.
Normal retirement requirements for members initially enrolled on or after July 1, 2011
Regular Class, Elected Officers’ Class, and Senior Management Service Class
Vested with eight years of service and age 65;
The age after 65 that the member becomes vested; or
33 years of service, regardless of age before age 65.
Special Risk Class
Vested with eight years of special risk service and age 60;
The age after 60 that the member becomes vested;
30 years of special risk service, regardless of age before age 60; or
33 years of any creditable service, regardless of age before age 65.
Special Risk Administrative Support Class
Special Risk Class normal retirement requirements apply to service in this class if a member has at
least eight years of Special Risk Class service; otherwise, Regular Class requirements apply.
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Benefit Calculation
Service retirement benefits are computed based on age and/or years of service, average final compensation, and service
credit. Credit for each year of service is expressed as a percentage of the average final compensation.
For members initially enrolled before July 1, 2011, the average final compensation is the average of the five highest
fiscal years’ earnings.
For members initially enrolled on or after July 1, 2011, the average final compensation is the average of the eight
highest fiscal years’ earnings.
The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on
the retirement plan and/or class to which the member belonged when the service credit was earned. The chart below shows
the percentage value for each year of service credit earned.
RETIREMENT PLAN % VALUE (per year of service)
Florida Retirement System
Regular Class members initially enrolled before July 1, 2011
Retirement up to age 62 or up to 30 years of service ................................................................1.60%
Retirement at age 63 or with 31 years of service .......................................................................1.63%
Retirement at age 64 or with 32 years of service .......................................................................1.65%
Retirement at age 65 or with 33 years of service .......................................................................1.68%
Regular Class members initially enrolled on or after July 1, 2011
Retirement up to age 65 or up to 33 years of service ................................................................1.60%
Retirement at age 66 or with 34 years of service .......................................................................1.63%
Retirement at age 67 or with 35 years of service .......................................................................1.65%
Retirement at age 68 or with 36 years of service .......................................................................1.68%
Special Risk Class
Service from Dec. 1, 1970, through Sept. 30, 1974 ...................................................................2.00%
Service on and after Oct. 1, 1974 ..............................................................................................3.00%
Special Risk Administrative Support Class members initially enrolled before July 1, 2011
(With six or more years of special risk service, the service in this class counts toward special risk normal
retirement; otherwise, Regular Class requirements apply.)
Retirement up to age 55; or up to 25 total years of special risk service;
or at age 52 with 25 years (if total service includes wartime military service) .....................1.60%
Retirement at age 56; or with 26 total years of special risk service;
or at age 53 with 26 years (if total service includes wartime military service) .....................1.63%
Retirement at age 57; or with 27 total years of special risk service;
or at age 54 with 27 years (if total service includes wartime military service) .....................1.65%
Retirement at age 58; or with 28 total years of special risk service;
or at age 55 with 28 years (if total service includes wartime military service) .....................1.68%
Special Risk Administrative Support Class members initially enrolled on or after July 1, 2011
(With eight or more years of special risk service, the service in this class counts toward special risk normal
retirement; otherwise, Regular Class requirements apply.)
Retirement up to age 60; or up to 30 total years of special risk service .....................................1.60%
Retirement at age 61; or with 31 total years of special risk service ...........................................1.63%
Retirement at age 62; or with 32 total years of special risk service ...........................................1.65%
Retirement at age 63; or with 33 total years of special risk service ...........................................1.68%
Elected Officers’ Class
Service as Supreme Court Justice, district court of appeal judge,
circuit court judge, or county court judge ............................................................................3.33%
Service as Governor, Lieutenant Governor, Cabinet Officer, Legislator, state attorney,
public defender, elected county officer, or elected official of a city or special
district that chose EOC membership for its elected officials ...............................................3.00%
Senior Management Service Class ...................................................................................................2.00%
Teachers’ Retirement System
Plan E ...............................................................................................................................................2.00%
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There are three steps in computing an annual retirement benefit:
Step 1 — Determine the member’s retirement plan(s) and class(es) of membership, years of creditable service in each, and
the total percentage value earned.
Step 2 — Calculate the member’s average final compensation.
Step 3 — Multiply the figures obtained in Steps 1 and 2 to determine the member’s annual normal retirement benefit. (If the
member elects to retire early, the annual benefit will be reduced by 5 percent for each year remaining before the
member would have reached normal retirement age. The annual benefit may also be reduced if the member chooses
a benefit option that provides a continuing benefit to a beneficiary.)
Benefit Options
Members must select one of the four benefit options at retirement:
Option 1 — Provides a lifetime monthly benefit payment to the member. Option 1 does not provide a continuing benefit to a
beneficiary. Upon the member’s death, the monthly benefit will stop and the beneficiary will be entitled to receive
only a refund of contributions paid by the member, if any, which exceed the amount the member received in
benefits. To provide a beneficiary with a continuing benefit after the member’s death, one of the other three
options should be selected.
Option 2 — Provides a reduced lifetime monthly benefit payment to the member. If the member dies 10 years or more after
retirement, no benefits are payable to the beneficiary. However, if the member dies within 10 years (120 months)
of the effective retirement date, the beneficiary will receive a monthly benefit payment in the same amount the
member was receiving for the balance of the 120-month period (including any period of DROP participation). No
further benefits are then payable.
Option 3 — Provides a reduced lifetime monthly benefit payment to the member and a continuing lifetime benefit to the
surviving joint annuitant. No further benefits are payable after both the member and the joint annuitant die. Upon
the member’s death,
The benefit payment to the surviving joint annuitant will be the same amount the member was receiving if
the joint annuitant is the spouse, parent, grandparent, or someone age 25 or older for whom the member is
the legal guardian;
If the member’s joint annuitant is the natural or legally adopted child (or someone for whom the member is
the legal guardian) who is under age 25 at the time of the member’s death, the joint annuitant will receive a
benefit payment in the amount of the member’s Option 1 benefit until he or she reaches age 25; or
If the member’s joint annuitant is the natural or legally adopted child (or person for whom the member is the
legal guardian) who is physically or mentally disabled and incapable of self-support at the time of the
member’s death, regardless of age, the member’s joint annuitant will receive a benefit payment in the
amount of the member’s Option 1 benefit until he or she is no longer disabled.
Option 4 — Provides an adjusted monthly benefit payment to the member while both the member and the joint annuitant are
living and a reduced continuing lifetime monthly benefit to the survivor upon the death of either the member or
the joint annuitant. No further Option 4 benefits are payable after both the member and the joint annuitant die.
If the member’s joint annuitant dies first, the member’s benefit will be reduced to two-thirds of the monthly benefit
paid when both were living.
If the member dies first:
The benefit payment to the member’s surviving joint annuitant will be equal to two-thirds of the monthly
benefit paid when both were living if the joint annuitant is the member’s spouse, parent, grandparent, or
someone age 25 or older for whom the member is the legal guardian;
If the member’s joint annuitant is the natural or legally adopted child (or person for whom the member is the
legal guardian) who is under age 25 at the time of the member’s death, the joint annuitant will receive a
benefit payment in the amount of the member’s Option 1 benefit until he or she reaches age 25; or
If the member’s joint annuitant is the natural or legally adopted child (or person for whom the member is the
legal guardian) who is physically or mentally disabled and incapable of self-support at the time of the
member’s death, regardless of age, the joint annuitant will receive a benefit payment in the amount of the
member’s Option 1 benefit until he or she is no longer disabled.
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Deferred Retirement Option Program (DROP)
DROP is available under the FRS Pension Plan when the member first reaches eligibility for normal retirement. DROP allows
a member to effectively retire by ceasing earning additional service credit while deferring termination and continuing
employment for up to 60 months. While a member is in DROP, the retirement benefits accumulate in the FRS Trust Fund
(benefit calculated as of the DROP effective date and increased by a cost-of-living adjustment each July; see Cost-of-Living
Adjustments for additional information) and earn monthly interest equivalent to an annual rate of 1.30 percent5.
The election to participate in DROP must be made within 12 months of the member’s normal retirement date, unless the
member is eligible to defer the election. To participate for the maximum DROP period, the member must enter DROP upon
first reaching eligibility for normal retirement or upon reaching an eligible deferral date as described below:
A Special Risk Class member initially enrolled in the FRS before July 1, 2011, who reaches the normal retirement
date based upon years of service before reaching age 52 may defer DROP entry up to age 52 and still participate for
60 months. Also, a member of the Special Risk Administrative Support Class who has at least the number of years of
Special Risk Class service required to be vested and reaches the normal retirement date based upon years of service
before reaching age 52 may defer DROP entry up to age 52 and still participate for 60 months.
A Special Risk Class member initially enrolled in the FRS on or after July 1, 2011, who reaches the normal retirement
date based upon years of service before reaching age 55 may defer DROP entry up to age 55 and still participate for
60 months. Also, a member of the Special Risk Administrative Support Class who has at least the number of years of
Special Risk Class service required to be vested and reaches the normal retirement date based upon years of service
before reaching age 55 may defer DROP entry up to age 55 and still participate for 60 months.
A member of the Regular Class, EOC, or the SMSC initially enrolled in the FRS before July 1, 2011, who reaches the
normal retirement date before reaching age 57 may defer DROP entry until age 57 and still participate for 60 months.
A member of the Special Risk Administrative Support Class who does not have the number of years of Special Risk
Class service required to be vested would be subject to these deferral requirements.
A member of the Regular Class, EOC, or the SMSC initially enrolled in the FRS on or after July 1, 2011, who reaches
the normal retirement date before reaching age 60 may defer DROP entry until age 60 and still participate for
60 months. A member of the Special Risk Administrative Support Class who does not have the number of years of
Special Risk Class service required to be vested would be subject to these deferral requirements.
A member who reaches the normal retirement date during a term of office may defer DROP election until the next
succeeding term in that office and still participate for up to 60 months or until the end of that succeeding term,
whichever is less.
A member who is employed as K-12 instructional personnel as defined in section 1012.01(2), Florida Statutes, may
elect to participate in DROP at any time after reaching the normal retirement date and still participate for 60 months.
Upon a member’s termination, the DROP account is paid out as a lump-sum payment, a rollover to a plan allowed under the
Internal Revenue Code, or a combination of a partial lump-sum payment and rollover. Monthly benefits are paid to the member
in the amount as calculated upon entry into DROP, plus cost-of-living adjustments for intervening years.
In most cases, the DROP participant must cease employment after a maximum of 60 months in DROP, must satisfy the
termination requirement for retirement, and must comply with applicable reemployment limitation thereafter. However, certain
exceptions apply:
Effective July 1, 2002, a DROP participant who holds an elective office may end DROP participation and postpone
compliance with the termination requirement and reemployment limitation until no longer holding the elective office
(including consecutive terms in the same office). For the period between the end of DROP participation and
termination, no retirement credit is earned and the member’s DROP accumulation accrues no additional monthly
benefits. If DROP participation began before July 1, 2010, the member’s DROP accumulation continues to earn
interest after participation ends and before termination. If DROP participation begins on or after July 1, 2010, the
DROP accumulation does not earn interest during the period after DROP participation ends and termination. DROP
participants must terminate all employment with and cease providing paid or unpaid services to all FRS participating
employers to be eligible to receive the DROP accumulation.
Effective July 1, 2022, a DROP participant who meets the criteria in section 121.0515(3)(a) as a law enforcement
officer may extend DROP participation for up to 36-calendar months beyond the initial 60-calendar month period, if
the DROP participant in an eligible law enforcement position is participating in DROP as of July 1, 2022, or begins
DROP participation by June 30, 2028. The DROP participant must remain in an eligible law enforcement officer
position for the entire period of extended DROP participation.
K-12 instructional personnel employed with a district school board, the Florida School for the Deaf and the Blind, or a
developmental research school of a state university may be allowed to extend their DROP participation for up to an
5 DROP participants with an effective DROP begin date before July 1, 2011, earn monthly interest equivalent to an annual rate of
6.50 percent.
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additional 36 months beyond their initial 60-month DROP participation period. To qualify for the extension, the DROP
participant must receive authorization from the employer and be approved by the division. If authorized to extend
DROP participation, a participant must remain employed in an eligible position during the period of DROP extension.
Effective July 1, 2018, K-12 instructional personnel who are authorized to extend DROP participation
beyond the 60-month period must have a termination date that is the last month of the school year. If on
July 1, 2018, the member’s DROP participation has already been extended for the maximum 36 months and
the extension period concludes before the end of the school year, the member’s DROP participation may be
extended through the last month of the same school year. The employer is required to notify the Division of
Retirement when these eligible personnel have their termination date changed to comply with this provision.
Effective July 1, 2018, K-12 administrative personnel as defined in section 1012.01(3), Florida Statutes, who have a
DROP termination date on or after July 1, 2018, may be authorized to extend their DROP participation beyond the
initial 60 calendar month period if their termination date is before the end of the school year. Such administrative
personnel may have their DROP participation extended until the last month of the same school year. The employer is
required to notify the Division of Retirement when these eligible personnel have their termination date changed to
comply with this provision.
Disability Benefits
There are two types of disability retirements available under the FRS: in-line-of-duty disability retirement and regular disability
retirement. To qualify for either type of disability retirement, members must be totally and permanently disabled to the extent
that they are unable to work in any job or provide a service to any employer. Disability retirees may be subject to a periodic
reexamination requirement.
In-line-of-duty disability benefits are available to members from their first day of employment. The minimum Option 1 benefit
for in-line-of-duty disability retirement is 42 percent of their average final compensation for all members except those in the
Special Risk Class, who receive a minimum Option 1 in-line-of-duty disability benefit of 65 percent of their average final
compensation.
To be eligible for regular disability retirement, members must complete eight years of creditable service. The minimum
Option 1 benefit under regular disability retirement is 25 percent of their average final compensation for all classes. If a
disabled member’s service benefit would be higher than the minimum disability benefit, the member may elect to receive the
higher benefit.
Survivor Benefits
If an active member who is not a Special Risk Class member dies in the line of duty, the spouse will receive a lifetime monthly
benefit equal to one-half of the member’s base monthly salary at death. If the spouse dies or there is no spouse, the benefit
will continue to be paid on behalf of the member’s dependent children until the youngest child reaches age 18 or is married, if
earlier.
If an active member who is a Special Risk Class member dies in the line of duty6, the spouse will receive a lifetime monthly
benefit equal to 100 percent of the member’s base monthly salary at death. If the spouse dies or there is no spouse, the
benefit will be paid on behalf of the member’s dependent children until the youngest child reaches age 18 or is married, if
earlier. Survivor benefits being paid on behalf of the member’s dependent children may be extended up to age 25 if the child is
unmarried and a full-time student.
If an active member dies before becoming vested and the death was not suffered in the line of duty, the designated beneficiary
will receive a refund of any member-paid retirement contributions 7. However, if the active member dies within one year of
vesting, the member’s joint annuitant may purchase enough service credit to vest the deceased member and receive monthly
benefits by using the deceased member’s accumulated leave on an hour-by-hour basis or paying for the member’s eligible
in-state or out-of-state service.
If the member was vested at death, the beneficiary may receive a refund of any contributions that may have been paid by the
member7 or, if the beneficiary qualifies as a joint annuitant, a lifetime monthly benefit calculated as though the member had
retired the month following the date of death and had chosen Option 3. If the joint annuitant is the member’s child or other
dependent for whom the member has guardianship who is under age 25, the joint annuitant will receive the member’s
maximum benefit until age 25 or, if disabled, until he or she is no longer disabled. A deceased member’s joint annuitant may
6 Effective July 1, 2016, the in-line-of-duty death benefits payable to survivors of Special Risk Class members increased from 50 percent of
base salary to 100 percent of base salary with retroactive eligibility to July 1, 2013, for benefit payments beginning on or after July 1, 2016.
Effective July 1, 2017, the in-line-of-duty death benefits payable to survivors of Special Risk Class members had retroactive eligibility
extended from July 1, 2013, to July 1, 2002, for benefit payments beginning on or after July 1, 2017.
7 The employee contributions included in the Investment Plan account balance and other employee funds, if required, that are transferred as
part of the second election to establish Pension Plan membership are not refundable to the employee or the employer.
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buy any service credit that could have been claimed by the member at the time of death if the member’s termination of
employment was due to death.
Termination Requirement
(1st – 6th calendar months of retirement)
Retirees must meet the definition of termination by terminating all employment relationships with any FRS participating
employer for the first six calendar months of retirement or the first six calendar months after DROP termination date. This
includes providing any service, whether paid or unpaid, to any FRS participating employer, even if that service is provided
through a third-party arrangement.
If the retiree does not meet the definition of termination, the retirement will be voided. The employer and the retiree are jointly
and severally liable to repay all benefits received, including a DROP payout, if the retiree returns to work during this
six-calendar month period.
Voiding retirement applies even if the position held is not covered by the FRS but is with an FRS employer. This restriction
also applies to employment with the same employer if the agency withdrew from the FRS effective Jan. 1, 1996, for newly
hired employees.
Reemployment Limitation
(7th – 12th calendar months of retirement)
After the definition of termination is met by not being employed by or providing a service (paid or unpaid) to an FRS
participating employer during the first six calendar months of retirement or the first six calendar months after DROP
termination date, there is a limitation to providing services (paid or unpaid) to FRS employers. During the seventh through
twelfth calendar months of retirement the retiree may not receive a retirement benefit while also receiving salary or providing
a service to an FRS employer in the same month. This limitation applies even if the position held is not covered by the FRS
but is with an FRS employer.
If the retiree chooses to provide any services, whether paid or unpaid, to FRS participating employers during this
reemployment limitation period, the retiree must inform the division so that retirement benefits can be suspended during the
remainder of the first 12 calendar months of retirement. The retiree and the employing agency are jointly and severally liable
for repaying any retirement benefits received while working during this period. Suspended retirement benefits for the months
employed by an FRS employer during the reemployment limitation period will never be received by the retiree.
Beginning the 13th calendar month of retirement, there are no limitations on receiving a retirement benefit while providing
services to an FRS employer after being retired for 12 calendar months.
Other Reemployment Considerations
(7th – 12th calendar months of retirement)
There is one exception to the reemployment limitation after retirement. If the retiree is a retired law enforcement officer, the
retiree may be reemployed as a school resource officer by an employer that participates in the FRS during the seventh
through twelfth calendar months after the effective retirement date or after the DROP termination date and receive both a
salary and retirement benefits in the same month.
If a retiree is reemployed with a participating employer, the retiree will be required to sign a statement that the reemployment
does not violate these provisions.
Beginning the 13th calendar month of the service retirement or after the DROP termination date, retirees may be employed by
or provide services to FRS participating employers without affecting their FRS benefits.
Any time after a service retirement or after the DROP termination date, retirees may be employed by a private employer or any
public employer not participating in the FRS without affecting their FRS benefits as long as they are not providing paid or
unpaid services to FRS participating employers.
Contact the Division of Retirement toll-free at 844-377-1888 or 850-907-6500 with any questions about the termination
requirement or reemployment limitation.
Renewed Membership
FRS Pension Plan retirees who are initially reemployed on or after July 1, 2010, are not eligible for renewed membership.
FRS Pension Plan retirees who are initially reemployed in regularly established positions before July 1, 2010, will have
renewed membership in the Regular Class, the SMSC, or the EOC and will earn credit toward a second-career benefit based
on requirements for their class of membership until they retire again. Having a break in service or not being employed on
July 1, 2010, does not change a renewed member’s status. Once retirees have established renewed membership in the
system, they will have the same opportunities as similarly situated newly hired members of that membership class to elect to
participate in alternative defined contribution retirement programs instead of the FRS. Renewed members are subject to the
same vesting requirements and other limitations as those that apply to other active members. However, renewed members are
not eligible to participate in the Special Risk Class, participate in DROP, or to retire under disability retirement provisions.
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Cost-of-Living Adjustment
The benefits received by retirees and beneficiaries are increased by a cost-of-living adjustment (COLA) each July based on
their June benefit amount (excluding the Retiree Health Insurance Subsidy benefit). For retirees who have been retired for less
than 12 months on July 1, the first COLA increase is prorated. The COLA applies to all continuing monthly retirement benefits
paid under the FRS Pension Plan (i.e., normal and early service retirement benefits, disability retirement benefits, survivor
benefits, and DROP benefits accruing in the FRS Trust Fund for DROP participants. The COLA for retirements or DROP
participation effective before Aug. 1, 2011, is 3 percent per year. The COLA formula for retirees with an effective retirement
date or DROP begin date on or after Aug. 1, 2011, is calculated by dividing the pre-July 2011 service credit by the total service
credit at retirement and multiplying by 3 percent. Each Pension Plan member with an effective retirement date of Aug. 1, 2011,
or after will have an individual COLA factor for retirement. FRS Pension Plan members initially enrolled on or after
July 1, 2011, will not have a COLA after retirement.
Appeals Procedure
Whenever the division makes a decision that will reduce, suspend, or terminate a member’s retirement benefits, the member
may petition the division for a hearing. Section 28-106.201, Florida Administrative Code, outlines the requirements for filing a
petition. After the division reviews the petition, the Department of Management Services (department) may ask a hearing
officer from the Division of Administrative Hearings to conduct the hearing, or, in some cases, the department may conduct the
hearing. If the outcome of the hearing is not in the member’s favor, the member will be informed of the time period during
which the member can appeal the decision to the District Court of Appeal.
Forfeiture of Benefits
If, before retirement, a member commits a felony specified by law and is found guilty of or enters a plea of no contest to such
crime, or if employment was terminated as a result of an admission of committing, aiding, or abetting a specified crime, the
member’s retirement rights and benefits will be forfeited (except for a refund of personal retirement contributions, if any). The
forfeiture of benefits provision applies in the case of any job-related felony offense as outlined below:
Committing, aiding, or abetting an embezzlement of public funds or any grand theft from the employer;
Committing bribery in connection with employment;
Committing any other felony specified in Chapter 838, Florida Statutes, (bribery and misuse of public office), except
sections 838.15 and 838.16, Florida Statutes (commercial bribes);
Committing any felony with intent to defraud the public or the employer of the right to receive the faithful performance
of duty or receiving or attempting to receive profit or advantage for the member or another person using the
member’s position; or
Committing an impeachable offense (applies to elected officials only); or
Committing certain felony offenses against a minor through the use or attempted use of rights, privileges, duties, or
position of public employment or office.
In addition to the crimes stated above, if a court of competent jurisdiction finds the member guilty of violating any state law
against strikes by public employees, the member's benefits will be forfeited.
If the member's designated beneficiary is found guilty of intentionally killing or procuring the death of the member, the
beneficiary forfeits all rights to retirement benefits. Any benefits payable would then be paid as if the beneficiary died before
the member.
The Clerk of the Court, the Secretary of the Senate, or the employer, as appropriate, must notify the Commission on Ethics if
the member is found guilty or if the member is impeached or terminated prior to retirement as a result of any of the above
offenses. The Commission on Ethics will notify the division. The member's benefits will be suspended subject to a hearing held
by a hearing officer of the Division of Administrative Hearings. The hearing officer’s decision may be appealed to the District
Court of Appeal. (See section 112.3173, Florida Statutes, and Article II, section 8, of the Florida Constitution for more
information.)
Assignment, Execution, or Attachment
Retirement benefits and accumulated contributions accrued under the FRS Pension Plan are not subject to assignment,
execution, attachment, or any other legal process, except for Qualified Domestic Relations Orders, certain income deduction
orders, (see section 61.1301, Florida Statutes), and federal income tax levies.
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174
CITY OF LAKE MARY POLICE OFFICERS' RETIREMENT SYSTEM
SUMMARY PLAN DESCRIPTION
November [enter date], 2023
IS YOUR BENEFICIARY FORM CURRENT? IN THE EVENT YOU DIE, YOUR BENEFIT OR
CONTRIBUTIONS WILL BE DISTRIBUTED TO THE PERSON OR PERSONS DESIGNATED BY
NAME ON THE BENEFICIARY FORM ON FILE WITH THE PENSION PLAN. NO PROVISION IN
YOUR LAST WILL AND TESTAMENT WILL CHANGE THIS SELECTION. PLEASE BE SURE THAT
YOUR BENEFICIARY FORM DESIGNATES THE PERSON OR PERSONS YOU INTEND TO
RECEIVE YOUR BENEFITS AND THAT YOU REVIEW THIS CHOICE IN THE EVENT OF A MAJOR
LIFE CHANGE SUCH AS A DIVORCE OR THE DEATH OF YOUR BENEFICIARY.
175
CITY OF LAKE MARY POLICE OFFICERS' RETIREMENT SYSTEM
SUMMARY PLAN DESCRIPTION
INTRODUCTION
The Board of Trustees of the City of Lake Mary Police Officers' Retirement System
is pleased to present this booklet which briefly explains the provisions of your Police Officers'
Pension Plan. As a participant in the Fund, you are included in a program of benefits to
help you meet your financial needs at retirement, or in the event of disability or death.
This booklet can assist you in preparing for your retirement and financial future. If
you need further information on any of the topics presented in this booklet, please contact
any member of the Board of Trustees. They will either answer questions you might have
to help you understand your benefits or otherwise get you an answer to your questions. We
urge you to read and understand this booklet in order to become familiar with the benefits
of the plan and how they contribute to your financial security and how they will enrich your
retirement years.
The information presented is only a summary of the pension plan ("Plan") as
provided in the ordinances of the City of Lake Mary. If there are any conflicts between the
information in this booklet and the ordinances of the City of Lake Mary, the ordinances
shall govern. The provisions of this Summary Plan Description shall not constitute a
contract between the Member and the Board of Trustees. The plan shall be administered
in accordance with state and federal law, notwithstanding any provisions in this booklet
or ordinances to the contrary. A copy of the ordinance establishing the Plan can be
obtained from the City Clerk's office, which is located at 100 N. Country Club Road, Lake
Mary, Florida 32795-0700. For questions regarding the plan, or to obtain copies, please
contact your plan administrator: Mr. Scott Baur, Pension Resource Center, 4360
Northlake Blvd., Suite 206, Palm Beach Gardens, FL 33410. His phone number is (561)
624-3277.
Chairman, Board of Trustees
City of Lake Mary Police Officers' Retirement
System
Date
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1. BOARD OF TRUSTEES AND PLAN ADMINISTRATION
A. Administration.
(1) The City of Lake Mary Police Officers' Retirement System is
a defined benefit pension plan administered by a Board of
Trustees which acts as the administrator of the Plan. The
Board consists of 5 Trustees, 2 of whom shall be legal
residents of the City who are appointed by the City
Commission, 2 of whom are Members of the System who are
elected by a majority of the Police Officers who are Members
of the System and a fifth Trustee who is chosen by a majority
of the first 4 Trustees. Each Trustee serves a 2-year term.
(2) DROP participants can be elected as but not vote for elected
trustees.
B. The names and addresses of the current Trustees and the Plan
Administrator are attached to this Summary Plan Description as Exhibit "A". The
Chairman of the Board is designated as agent for the service of legal process.
2. ELIGIBILITY FOR PLAN MEMBERSHIP
Each person employed by the City Police Department as a full-time Police
Officer becomes a member of the System as a condition of his employment. All Police
Officers are therefore eligible for plan benefits as provided for in the plan document and
by applicable law.
3. PLAN BENEFITS
All claims for benefits under the System shall be made in writing to the
Board. It is your responsibility to contact the plan and make a written application for
benefits when you are eligible to start receiving your benefit at your normal or early
retirement date. You should file your application for benefits with the plan administrator
at least 45 days prior to the date that benefits are to commence. Benefit payments shall
begin only after a written application is filed and payments shall not be made retroactive
to your original eligibility date should you delay in applying for benefits.
A. Normal Retirement Eligibility. You are eligible for retirement upon the
attainment of age 55 and the completion of 5 years of credited service or the completion
of 20 years of credited service, regardless of age.
Retirees are required to begin to receive benefits once they have retired or
reached a certain age for required minimum distributions. For individuals who attain age
72 after December 31, 2022, and age 73 before January 1, 2033, the applicable age is
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73. For individuals who attain age 74 after December 31, 2032, the applicable age is 75.
B. Amount of Normal Retirement Benefits. The amount of the normal
retirement benefit is based on your credited service and average final compensation:
"Credited Service" is generally your period of employment as a Police
Officer in the Police Department measured in years and parts of years. Credited service
will include credit for up to five years for a break in employment for military service,
pursuant to conditions provided for under state or federal law, provided that you are
reemployed within 1 year of discharge under honorable conditions. Additional credited
service time may also be available (See subsection K. below).
"Average Final Compensation" is 1/12 of your average salary of the 5 best
years of the last 10 years of credited service prior to your termination, retirement or death.
A year is defined as 12 consecutive months.
"Salary" is the total compensation for services rendered to the City as a
Police Officer reportable on your W-2 forms plus all tax deferred, tax sheltered or tax-
exempt items of income derived from elective employee payroll deductions or salary
reductions. For service earned after July 1, 2011, Salary shall not include more than 300
hours of overtime per calendar year and shall also not include payments for accrued
unused sick or annual leave. Provided however, in any event, payments for overtime in
excess of300 hours per year or accrued unused sick or annual leave accrued as of July
1, 2011 and attributable to service earned prior to July 1, 2011, may still be included in
Salary for pension purposes even if the payment is not actually made until on or after July
1, 2011. In any event, with respect to unused sick leave and unused annual leave accrued
prior to July 1, 2011, the balance of the unused sick leave and unused annual leave
accrued and unused upon July 1, 2011 will be deemed the frozen amounts. These frozen
amounts cannot be increased and any annual leave or sick time taken after July 1, 2011
will reduce the applicable frozen amount. Any remaining balance of these initial frozen
amounts that are paid out upon termination of employment with the City of Lake Mary
shall be made at the then current rate of pay and will be used in the pension credit
calculation. Any annual leave or sick time accrued after July 1, 2011 and unused at the
time of termination of employment with the City of Lake Mary will be paid out at the then
current rate of pay, but will not be used in the pension credit calculation.
The normal retirement benefit is calculated by multiplying 3.2% times years
of credited service times your average final compensation: (3.2% x CS x AFC= normal
retirement benefit).
Normal and early retirement payments will commence on the first day of the
month coincident with or next following your last day of employment. Early retirees may
defer the commencement of benefits. The benefit is paid to you for your life, but you or
your beneficiary shall receive at least 120 monthly benefit payments in any event. In order
to ensure that you receive timely commencement of benefits, an application for normal or
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early retirement benefits must be submitted to the Plan Administrator at least 45 days
prior to your expected retirement date.
Each vested Plan Member shall be entitled, at the Fund's expense, to
receive two actuarial studies (one preliminary and one final) to estimate his or her
retirement benefits. Any additional studies shall be provided only at the Member's
expense.
C. Early Retirement. You are eligible for early retirement upon the
attainment of age 50 and the completion of 5 years of credited service.
D. Amount of Early Retirement Benefits. The amount of the early
retirement benefit is calculated in the same manner as for normal retirement and is
available as follows:
(1) Beginning on the date on which you would have qualified for
normal retirement; or
(2) Beginning immediately upon retirement, but if beginning
immediately, the amount of the monthly benefit is reduced by
3% for each year by which the commencement of benefits
precedes your normal retirement date.
E. Pension Enhancement Benefit. Effective October 1, 2021, vested
members shall be eligible for a pension enhancement benefit that shall consist of one (1)
annual payment in the amount of $2,520.00 payable to eligible members on December
15th of each calendar year. The pension enhancement benefit is available no sooner than
the attainment of age 50, or anytime thereafter, and shall continue to be payable until the
member reaches age 68.
F. Supplemental Benefit - Share Plan. Pursuant to Florida law, there
has been a separate member "share account" created for each member of the plan. This
supplemental benefit may or may not be funded and thus, you may or may not receive a
retirement benefit from the share plan. If the share plan is funded, at retirement,
termination (vested), disability or death, there shall be an additional benefit paid to you.
The share plan is funded solely with state premium tax money and the funding that is
received for this Share Plan is allocated to your share account based on a formula which
gives you an allocation based on your years of credited service. Your share account
receives its proportionate share of the income or loss on the assets in the plan.
G. Optional Forms of Retirement. In lieu of the amount and form of
retirement income payable under normal and early retirement, you may elect to receive
a retirement benefit in a different form so long as the form you elect is of equal actuarial
value as the normal benefit. The optional forms of benefits which are available are:
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(1) A retirement income of a monthly amount payable to you for
your lifetime only.
(2) A retirement income of a modified monthly amount, payable
to you during your lifetime and following your death, 100%,
75%, 66 2/3% or 50% of such monthly amount payable to a
joint pensioner for his lifetime.
(3) If you retire prior to the time at which social security benefits
are payable, you may elect to receive an increased retirement
benefit until such time as social security benefits shall be
assumed to commence and a reduced benefit thereafter in
order to provide, to as great an extent as possible, a more
level retirement allowance during the entire period of
retirement.
(4) If you do not participate in the DROP, you may also elect to
receive an initial lump sum payment equal to 10%, 15%, 20%
or 25% of your accrued benefit with the remaining 90% 85%,
80% or 75%, respectively, payable in a form selected by you
and provided for in (1), (2) or (3) above or in the normal form
(10 years certain and life).
(5) Deferred Retirement Option Plan (DROP).
(a) If you become eligible for normal retirement, and are
still employed by the City as a Police Officer, you have
the option of "retiring" from the pension plan but
continuing your employment as a Police Officer for an
additional 5 years. An election to participate in the
DROP constitutes an irrevocable election to resign
from the service of the City not later than 5 years from
the commencement of DROP participation. You must
request, in writing, to enter the DROP.
(b) Upon entering the DROP, your retirement benefit is
immediately calculated and each monthly benefit
payment is deposited into your DROP account. Your
account earns an investment return equal to the net
investment return realized by the System for that
quarter. You could experience losses as well as gains.
(c) At the time of termination of employment at the end of
the DROP period, you will receive your account
balance in a lump sum and you will also begin receiving
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your monthly retirement benefit. You may rollover your
balance to another qualified pension vehicle.
(d) Once you enter the DROP, you are no longer eligible
for disability or pre-retirement death benefits, nor do
you accrue any additional credited service. Your
retirement benefit is fixed as of your entry date. You
pay no member contributions to the plan once you
enter the DROP.
(e) Participation in the DROP is not a guarantee of
employment and DROP participants shall be subject to
the same employment standards and policies that are
applicable to employees who are not DROP
participants.
(f) Additional information about the DROP can be obtained from the Board.
H. Disability Retirement. You are considered disabled when you
become totally and permanently unable to perform useful and efficient service as a Police
Officer. A written application is made to the Board for a disability pension and the Board
receives evidence of the disability and decides whether or not the pension is to be
granted. If the pension is granted, the benefit amount shall be:
(1) If the injury or disease is service connected, a monthly
pension equal to the greater of:
(a) 50% of your yearly salary with no regard to years of
credited service; or
(b) An amount equal to 3.2% of your average final
compensation multiplied by your total number of years
of credited service.
(2) If the injury or disease is not service connected, a monthly
pension equal to 3.2% of your average final compensation
times your years of credited service. This non-service
connected benefit is only available if you have at least 5 years
of credited service. If you have less than 5 years of credited
service, you will receive a return of your accumulated
contributions.
Eligibility for disability benefits. Subject to (4) below, you must be an active
member of the plan on the date the Board determines your entitlement to a disability
benefit.
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(1) Terminated persons, either vested or non-vested, are not
eligible for disability benefits.
(2) If you voluntarily terminate your employment either before or
after filing an application for disability benefits, you are not
eligible for disability benefits.
(3) If you are terminated by the City for any reason other than for
medical reasons, either before or after you file an application
for disability benefits, you are not eligible for disability
benefits.
(4) The only exception to (1) above is:
(a) If you are terminated by the City for medical reasons
and you have already applied for disability benefits
before the medical termination, or;
(b) If you are terminated by the City for medical reasons
and you apply within 30 days after your medical
termination date.
If either (4)(a), or (4)(b) above applies, your application will be
processed and fully considered by the board.
Your disability benefit terminates upon the earlier of death, with 120
payments guaranteed, or recovery. You may, however, select a "life only" or "joint and
survivor" optional form of benefit as described above under "Optional Forms of
Retirement".
Any condition or impairment of health caused by hypertension or heart
disease resulting in death or total and permanent disability is presumed to have been
suffered in the line of duty unless the contrary is shown by competent evidence; provided
that you have successfully passed a physical examination on entering into service and
there is no evidence of the condition at that time.
For conditions diagnosed on or after January 1, 1996, if you suffer a
condition or impairment of health that is caused by hepatitis, meningococcal meningitis,
or tuberculosis, which results in total and permanent disability, it shall be presumed that
the disability is in the line of duty, unless the contrary is shown by competent evidence as
provided for in Section 112.181, Florida Statutes, provided that the statutory conditions
have been met.
To receive disability benefits, you must establish to the satisfaction of the
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Board, that such disability was not occasioned primarily by:
(1) Excessive or habitual use of any drugs, intoxicants or
narcotics.
(2) Injury or disease sustained while willfully and illegally
participating in fights, riots or civil insurrections or while
committing a crime.
(3) Injury or disease sustained while serving in any branch of the
Armed Forces.
(4) Injury or disease sustained after your employment as a Police
Officer with the City of Lake Mary shall have terminated.
(5) Injury or disease sustained while working for anyone other
than the City and arising out of such employment.
As a disabled pensioner, you are subject to periodic medical examinations
as directed by the Board to determine whether a disability continues. You may also be
required to submit statements from your doctor, at your expense, confirming that your
disability continues.
I. Death Before Retirement. If you die prior to retirement from the
Police Department, your beneficiary shall receive the following benefit:
(1) Prior to Vesting or Eligibility for Retirement. If you were not
receiving monthly benefits or were not yet vested (5 years of
service) or eligible for early or normal retirement, your
beneficiary shall receive a refund of 100% of your
accumulated contributions.
(2) Deceased Members Vested or Eligible for Retirement. If you
die and, at the date of your death were vested or eligible for
early or normal retirement, the payment shall be as follows:
(a) In-Line of Duty Death Benefit. If you were vested and
die as a direct result of the performance of your duty as
a Police Officer, your spouse (or dependent children)
shall receive a benefit equal to the greater of 10% of
your yearly salary for life, or the actuarial equivalent of
the accrued early or normal retirement benefit. Any
benefit being paid to your dependent child shall cease
when your dependent child reaches age 18.
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(b) Not-In-Line of Duty Benefit. If you were vested and die
not as a direct result of the performance of your duty
as a Police Officer, your spouse shall receive the
actuarial equivalent of the accrued early or normal
retirement benefit.
J. Termination of Employment and Vesting. If your employment is
terminated, either voluntarily or involuntarily, the following benefits are payable:
(1) If you have less than 5 years of credited service upon
termination, you shall be entitled to a refund of the money you
have contributed or you may leave it deposited with the Fund.
(2) If you have 5 or more years of credited service upon
termination, you shall be entitled to a monthly retirement
benefit. The benefit shall be determined in the same manner
as for normal or early retirement and shall be based upon your
credited service, average final compensation and the benefit
accrual rate as of the date of termination. The benefit shall be
payable to you starting at your otherwise normal or early
retirement date, determined as if you had remained
employed, provided you do not elect to withdraw your
contributions and provided you survive to your otherwise
normal or early retirement date. If you do not withdraw your
accumulated contributions and do not survive to your
otherwise normal or early retirement date, your designated
beneficiary shall be entitled to a benefit as provided herein for
a deceased member, vested or eligible for retirement under
Death Before Retirement.
The Internal Revenue Code provides that certain eligible lump sum
distributions from the pension plan may be directly rolled over into qualified individual
retirement accounts, annuities or certain other pension plans. A 20% withholding shall be
required on taxable portions of such lump sum distributions not directly transferred to a
new custodian.
K. Reemployment After Retirement. If you retire under normal or early
retirement and wish to be reemployed by the city, you should be aware that your ability
to continue to receive your pension benefit upon reemployment may be restricted.
L. Additional Credited Service. In addition to credited service actually
earned in the employment of the Police Department, you may also receive credited
service as follows:
(1) "Buy-Back" for Prior Police Service. The years or fractional
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parts of years that you previously served as a Police Officer
with the City of Lake Mary during a period of previous
employment and for which period accumulated contributions
were withdrawn from the Fund shall be added to your years
of credited service provided that within the first 90 days of your
reemployment you pay into the Plan the withdrawn
contributions with interest. If, after 90 days from your
reemployment you have failed to purchase credited service
pursuant to the previous paragraph or if you served as a full-
time paid Police Officer for any other municipal, county or
state law enforcement agency in the State of Florida, you will
receive credited service only if:
(a) You contribute to the Fund a sum equal to:
(i) the amount that you would have contributed to
the Plan, based on your salary and the member
contribution rate in effect at the time that the
credited service is requested, had you been a
member of the Plan for the years or fractional
parts of years for which you are requesting
credit, plus
(ii) an additional amount to be determined by the
Board's actuary so that there is no cost to the
Plan in giving you the additional years of
credited service, plus
(iii) the amount charged by the actuary for
determining the amount you must contribute.
(b) Multiple requests to purchase credited service
pursuant to this section may be made any time prior to
retirement.
(c) Payment of the required amount shall be made within
6 months of your request for credit and shall be made
in one lump sum payment upon receipt of which
credited service shall be given.
(d) The maximum combined credit under this subsection
for service other than with the City of Lake Mary and
for prior military service pursuant to subsection (3)
below shall be 5 years of credited service and shall
count for all purposes, except vesting and eligibility for
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not-in-line of duty disability benefits. There shall be no
maximum purchase of credit for prior service with the
City of Lake Mary and such credit shall count for all
purposes, including vesting.
(e) In no event, however, may credited service be
purchased pursuant to this subsection for prior service
with any other municipal, county or state law
enforcement department, if such prior service forms or
will form the basis of a retirement benefit or pension
from a different employer's retirement system or plan.
(f) In addition to service as a Police Officer in this State,
credit may be purchased in the same manner as
provided above for federal, other state, county or
municipal service if the prior service is recognized by
the Criminal Justice Standards and Training
Commission within the Department of Law
Enforcement, as provided under Chapter 943, Florida
Statutes, or you provide proof to the Board that such
service is equivalent to the service required to meet the
definition of a Police Officer.
(2) "Buy-Back" of Time Lost Due to Absences Authorized by the
Family and Medical Leave Act. If you are absent on unpaid
leave under the Family & Medical Leave Act, you may
purchase lost credited service by making an actuarially
determined contribution to the Plan, such that there is no cost
to the Plan in allowing such credited service, within strict time
periods provided for in the plan document.
(3) "Buy-Back" for Military Service Prior to Employment. The
years or fractional parts of years that you serve or have served
on active duty in the military service of the Armed Forces of
the United States, the United States Merchant Marine or the
United States Coast Guard, voluntarily or involuntarily and
honorably or under honorable conditions, prior to first and
initial employment with the City Police Department shall be
added to your years of credited service provided that:
(a) You contribute to the Fund a sum equal to:
(i) the amount that you would have contributed to
the Plan, based on your salary and the member
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contribution rate in effect at the time that the
credited service is requested, had you been a
member of the Plan for the years or fractional
parts of years for which you are requesting
credit plus
(ii) an additional amount to be determined by the
Board's actuary so that there is no cost to the
Plan in giving you the additional years of
credited service. plus
(iii) the amount charged by the actuary for
determining the amount you must contribute.
(b) Multiple requests to purchase credited service
pursuant to this section may be made any time prior to
retirement.
(c) Payment of the required amount shall be made within
6 months of your request for credit, but not later than
your retirement date, and shall be made in one lump
sum payment upon receipt of which credited service
shall be given.
(d) The maximum combined credit under this subsection
and subsection (1) above (for service other than with
the City) shall be 5 years and shall count for all
purposes except vesting and eligibility for not-in -line of
duty disability benefits.
(4) Rollovers or Transfers of Funds to Purchase Service. In the
event you are eligible to purchase additional credited service
as provided above, you may be eligible to rollover or transfer
funds from another retirement program in which you
participate (traditional IRA, deferred compensation plan
maintained by a government employer (457 plan), 401k plan,
profit sharing plan, defined benefit plan, money purchase
plan, annuity plan or tax-sheltered annuity) in order to pay all
or part of the cost of purchasing such additional credited
service.
M. Contributions and Funding. The City is paying the portion of the cost
of the pension plan over and above your contributions and all or a portion of the amounts
received from the state insurance rebates, pursuant to a mutual consent agreement
between the City and the plan membership. Effective October 1, 2021, you contribute 6%
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of your salary to the Fund. Your contribution will be excluded from your gross income for
withholding purposes so you will realize income tax benefits.
N. Maximum Benefits. In no event will the annual benefits paid from this
System exceed $265,000 annually, subject to certain cost of living adjustments and
actuarial reductions, under certain circumstances, prior to age 62 as set forth in Section
415 of the Internal Revenue Code.
If you began participation for the first time on and after January 1, 1980, you
cannot receive a benefit in excess of 100% of your average final compensation. If you
began participation prior to this date, you are not subject to the 100% limitation.
O. Forfeiture of Pension. If you are convicted of the certain crimes listed
in the plan document committed prior to retirement, or if your employment is terminated
by reason of your admitted commission, aid or abetment of these crimes, you shall forfeit
all rights and benefits under the System, except for the return of your contributions as of
the date of your termination.
P. Conviction and Forfeiture; False, Misleading or Fraudulent
Statements. It is unlawful for you to willfully and knowingly make, or cause to be made,
or to assist, conspire with, or urge another to make, or cause to be made, any false,
fraudulent, or misleading oral or written statement or withhold or conceal material
information to obtain any benefit from the Plan.
If you violate the previous paragraph, you commit a misdemeanor of the
first degree, punishable as provided in Section 775.082 or Section 775.083, Florida
Statutes.
In addition to any applicable criminal penalty, upon conviction for a violation
described above, you or your beneficiary may, in the discretion of the Board, be required
to forfeit the right to receive any or all benefits to which you would otherwise be entitled
under the Plan. For purposes of this subsection, "conviction" means a determination of
guilt that is the result of a plea or trial, regardless of whether adjudication is withheld.
Q. Claims Procedure Before the Board. You may request, in writing,
that the Board review any claim for benefits under the System. The Board will review
the case and enter a decision as it deems proper within not more than 270 days from
the date of the receipt of such written request, or in the case of a disability claim, from
receipt of a medical release and completed interrogatories. The time period may be
extended if you agree to the extension.
The Board's decision on your claim will be contained in an order which will
be in writing and will include:
(1) The specific reasons for the Board's action;
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(2) A description of any additional information that the Board feels
is necessary for you to perfect your claim;
(3) An explanation of the review procedure next open to you
which includes a formal evidentiary hearing.
4. NON-FORFEITURE OF PENSION BENEFITS
A. Liquidation of Pension Fund Assets. In the event of repeal, or if
contributions to the Fund are discontinued by the City, there will be a full vesting of
benefits accrued to date of repeal.
B. Interest of Members in Pension Fund. At no time prior to the
satisfaction of all liabilities under the System shall any assets of the System be used for
any purpose other than for the Police Officers' exclusive benefit. In any event, your
contributions to the System are non-forfeitable.
5. VESTING OF BENEFITS
Your retirement benefits are vested after 5 years of credited service.
6. APPLICABLE LAW
The System is governed by certain federal, state and local laws, including,
but not limited to the following:
A. Internal Revenue Code and amendments thereto.
B. Chapter 185, Florida Statutes, "Municipal Police Officers' Retirement
Trust Funds".
C. Part VII, Chapter 112, Florida Statutes, "Actuarial Soundness of
Retirement Systems".
D. Ordinances of the City of Lake Mary.
E. Administrative rules and regulations adopted by the Board of
Trustees.
7. PLAN YEAR AND PLAN RECORDS
The plan year begins on October 1 of each year and ends on September
30 of the following year. All records of the System are maintained on the basis of the plan
year.
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8. APPLICABLE PROVISIONS OF COLLECTIVE BARGAINING
AGREEMENTS
There is no collective bargaining agreement between the Police Officers
and the City.
9. FINANCIAL AND ACTUARIAL INFORMATION
A. A report of pertinent financial and actuarial information on the
solvency and actuarial soundness of the System is attached as
Exhibit "B".
B. A copy of the detailed accounting report of the plan's expenses for
the previous fiscal year is available for review upon request to the
Plan Administrator.
C. A copy of the administrative expense budget for the plan, for each
fiscal year is available for review upon request to the Plan
Administrator.
10. DIVORCE OR DISSOLUTION OF MARRIAGE
Federal and state law provides certain restrictions regarding the payment
of your pension benefits in the event of your divorce or dissolution of marriage.
Immediately upon your involvement in such a legal proceeding, you should provide a
member of the Board with the name and address of your attorney or your name and
address if you have no attorney. The Board's attorney will then provide you or your
attorney with information concerning the legal restrictions regarding your pension
benefits. In addition, a copy of any proposed order must be submitted to the Board prior
to entry by the court. Failure to do so may require you to pay any expenses incurred by
the Board in correcting an improper court order.
11. EX-SPOUSES AS BENEFICIARY OR JOINT PENSIONER
The Florida Legislature has adopted Section 732.703, Florida Statutes. This
law nullifies the designation of your ex-spouse as a Beneficiary or Joint Annuitant/ Joint
Pensioner on your pension plan retirement benefits. This law went into effect on July 1,
2012.
After July 1, 2012, if you want your ex-spouse to be a beneficiary or joint
annuitant/joint pensioner for your plan benefit, you will have to make that designation
AFTER the dissolution of marriage. If you currently have an ex-spouse as a beneficiary
or joint annuitant/joint pensioner, and want to keep this designation, you will have to
designate the ex-spouse again after July 1, 2012.
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To reconfirm your current beneficiary, or to designate a new beneficiary,
complete a new Designation of Beneficiary Form (PF-3).
To reconfirm your current joint annuitant/joint pensioner, or to designate a
new joint annuitant/joint pensioner (if authorized by the current plan provisions), indicate
such change on a Change or Confirmation of Designated Joint Annuitant or Joint
Pensioner Form (PF-25). If necessary, the plan administrator will submit the new form to
the actuary of the plan for recalculation of your benefit. There may be a charge to you to
make this change.
To obtain either of the above forms, or if you have any questions, please
contact your plan administrator.
12. EXCLUSION OF HEALTH INSURANCE PREMIUMS FROM INCOME.
When you retire because of disability or have worked to the date you are
immediately eligible for normal retirement (not early retirement), you can elect to exclude
from income, distributions made from your benefit that are used to pay the premiums for
accident or health insurance or long-term care insurance. The premium can be for
coverage for you, your spouse, or dependents. The distribution can be made directly from
the plan to the insurance provider using pension form PF-22 which authorizes the
distribution. (This form may be obtained from your plan administrator) You can exclude
from income the smaller of the amount of the insurance premiums or $3,000.00. You can
only make this election for amounts that would otherwise be included in your income.
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EXHIBIT "A"
BOARD OF TRUSTEES
The names and addresses of the members of the Board of Trustees are:
Chairman: Joseph Alberts
Lake Mary Police Officers' Retirement System
165 E. Crystal Lake Avenue Lake Mary, Florida 32746
Secretary: Louis DiPaolo
Lake Mary Police Officers' Retirement System
165 E. Crystal Lake Avenue
Lake Mary, Florida 32746
Trustee: George Duryea
Lake Mary Police Officers' Retirement System
165 E. Crystal Lake Avenue
Lake Mary, Florida 32746
Trustee: Matthew Schaefer
Lake Mary Police Officers' Retirement System 165 E. Crystal Lake Avenue
Lake Mary, Florida 32746
Trustee: Richard Fess
Lake Mary Police Officers' Retirement System
165 E. Crystal Lake Avenue
Lake Mary, Florida 32746
PLAN ADMINISTRATOR:
Scott Baur
4360 Northlake Blvd.
Suite 206
Palm Beach Gardens, FL 33410
Business: 561-624-3277
E-mail: scott@resourcecenters.com
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EXHIBIT B
PLAN ACTUARIAL INFORMATION
193
ORDINANCE NO.11-1980
AN ORDINANCE OF THE CITY OF LONGWOOD,
AMENDING AND RESTATING ORDINANCE NO. 03-1671,
AS SUBSEQUENTLY AMENDED; BY RESTATING THE
CITY OF LONGWOOD POLICE OFFICERS' AND
FIREFIGHTERS' PENSION TRUST FUND; PROVIDING
FOR DEFINITIONS; PROVIDING FOR MEMBERSHIP;
PROVIDING FOR A BOARD OF TRUSTEES; PROVIDING
FOR FINANCES AND FUND MANAGEMENT;
PROVIDING FOR CONTRIBUTIONS; PROVIDING FOR
BENEFIT AMOUNTS AND ELIGIBILITY; PROVIDING
FOR PRE-RETIREMENT DEATH BENEFITS; PROVIDING
FOR DISABILITY BENEFITS; PROVIDING FOR VESTING
OF BENEFITS; PROVIDING OPTIONAL FORMS OF
BENEFITS; PROVIDING FOR BENEFICIARIES;
PROVIDING CLAIM§ PROCEDURES; PROVIDING FOR
REPORTS TO THE DIVISION OF RETIREMENT;
PROVIDING FOR A ROSTER OF RETIREES; PROVIDING
FOR A MAXIMUM PENSION LIMITATION; PROVIDING
FOR DISTRIBUTION OF BENEFITS; PROVIDING
MISCELLANEOUS PROVISIONS; PROVIDING FOR
REPEAL OR TERMINATION OF THE SYSTEM;
PROVIDING FOR DOMESTIC RELATIONS ORDERS;
RETIREE DIRECTED PAYMENTS; EXEMPTION FROM
EXECUTION AND NON-ASSIGNABILITY; PROVIDING
FOR PENSION VALIDITY; PROVIDING FOR
FORFEITURE OF PENSION UNDER CERTAIN
CIRCUMSTANCES; PROVIDING FOR CONVICTION AND
FORFEITURE, FALSE, MISLEADING OR FRAUDULENT
STATEMENTS; PROVIDING FOR INDEMNIFICATION
AND DEFENSE OF CLAIMS; PROVIDING FOR DIRECT
TRANSFER§ OF ELIGIBLE ROLLOVER
DISTRIBUTIONS; PROVIDING FOR PURCHASE OF
CREDIT FOR MILITARY SERVICE PRIOR TO
EMPLOYMENT; PROVIDING FOR THE PURCHASE OF
CREDITED SERVICE FOR ABSENCES PURSUANT TO
THE FAMILY AND MEDICAL LEAVE ACT; PROVIDING
FOR THE PURCHASE OF CREDITED SERVICE FOR
PRIOR POLICE OR FIRE SERVICE; PROVIDING FOR A
DEFINED RETIREMENT ACCUMULATION GROUP
OBLIGATION FUND; PROVIDING FOR
CODIFICATION; PROVIDING FOR SEVERABILITY OF
PROVISIONS; REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Longwood Police Officers and Firefighters are presently
provided pension and certain other benefits under the Florida Municipal Pension Trust Fund ,
adopted by Ordinance of the City of Longwood and;
WHEREAS, the City Commission desires to clarify and restate the provisions of the
Police Officers' and Firefighters' Pension Trust Fund to consolidate all prior Ordinances and
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Code provisions and to incorporate Federal law and the applicable provisions of Chapters 17 5
and 185, Florida Statutes ;
NOW9 THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF LONGWOOD , FLORIDA;
SECTION 1: That an Ordinance of the City of Longwood , amending and restating
Ordinance No . 03 -1671, as subsequently an1ended, is hereby amended and restated as set forth in
the document designated CITY OF LONGWOOD POLICE OFFICERS' AND FIREFIGHTERS '
PENSION TRUST FUND, attached hereto and made a pmi hereof.
SECTION 2 : Specific authority is hereby granted to codify and incorporate this
Ordinance in the existing Code of Ordinances of the City of Longwood.
SECTION 3: Repeal of Prior Inconsistent Ordinances and Reso lutions. All Ordinances
or pmis of Ordinances in conflict herewith be and the same are hereby repealed.
SECTION 4: Severability. If any section, subsection, sentence, clause , phras e of this
ordinance , or the pmiicular application thereof shall be held invalid by any comi, administrative
agency , or other body with appropriate jurisdiction, the remaining section, subsection, sentences,
clauses , or phrases under application shall not be affected thereby.
SECTION 5 : Effective Date . That this Ordinance shall become effective upon its
adoption.
FIRST READING: Fe-6-ru,a r-21 (p
1
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SECOND READING: Fe...b i'vt & Sj'. ;;:;..,o , -z_.o [;7.__-
PASSED AND ADOPTED THIS ~offe-DAY OF FEBRUARY, 2012.
ATTEST: CITY OF LONGWOOD, FLORIDA
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CITY OF LONGWOOD
POLICE OFFICER§' AND FIREFIGHTER§' PENSION TRU§T FUND
SECTION 1. DEFINITIONS.
1. As used herein , unless otherwise defined or required by the context, the following
words and phrases shall have the meaning indicated:
Accumulated Contributions means a Member's own contributions without interest. For
those Members who purchase Credited Service with interest or at no cost to the System, any
payment representing the amount attributable to Member contributions based on the applicable
Member contribution rate, and any payment representing interest and any required actuarially
calculated payments for the purchase of such Credited Service, shall be included in Accumulated
Contributions .
Actuarial Equivalent means a benefit or amount of equal value, based upon the RP 2000
Combined Healthy Mortality Table and an interest rate of seven and one-half percent (7 .5%) per
annum. This definition may only be amended by the City pursuant to the recommendation of the
Board using assumptions adopted by the Board with the advice of the plan's actuary, such that
actuarial assumptions are not subject to City discretion.
Average Final Compensation means one -twelfth (1/12) of the average Salary of the three
(3) best years of the last ten (10) years of Credited Service prior to Retirement, termination, or
death, or the career average as a full -time Police Officer or Firefighter, whichever is greater. A
year shall be twelve (12) consecutive months.
Beneficiary means the person or persons entitled to receive benefits hereunder at the
death of a Member who has or have been designated in writing by the Member and filed with the
Board. If no such designation is in effect, or if no person so designated is living, at the time of
death of the Member, the Beneficiary shall be the estate of the Member.
Board means the Board of Trustees, which shall administer and manage the System
herein provided and serve as trustees of the Fund.
City means City of City of Longwood, Florida .
Code means the Internal Revenue Code of 1986, as amended from time to time.
Credited Service means the total number of years and fractional parts of years of service
as a Police Officer or Firefighter with Member contributions, when required, omitting
intervening years or fractional parts of years when such Member was not employed by the City
as a Police Officer or Firefighter. A Member may voluntarily leave his Accumulated Contribu-
tions in the Fund for a period of five (5) years after leaving the employ of the Police or Fire
Department pending the possibility of being reemployed as a Police Officer or Firefighter, with-
out losing credit for the time that he was a Member of the System. If a vested Member leaves
the employ of the Police or Fire Depaiiment, his Accumulated Contributions will be returned
only upon his written request. If a Member who is not vested is not reemployed as a Police
Officer or Firefighter with the Police or Fire Department within five (5) years, his Accumulated
Contributions, if one thousand dollars ($1,000.00) or less, shall be returned. If a Member who
is not vested is not reemployed within five (5) years, his Accumulated Contributions, if more
than one -thousand dollars ($1 ,000.00), will be returned only upon the written request of the
Member and upon completion of a written election to re ce ive a cash lump sum or to rollover the
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lump sum amount on forms designated by the Board. Upon return of a Member's Accumulated
Contributions, all of his rights and benefits under the System are forfeited and terminated.
Upon any reemployment, a Police Officer or Firefighter shall not receive credit for the years and
fractional parts of years of service for which he has withdrawn his Accumulated Contributions
from the Fund, unless the Police Officer or Firefighter repays into the Fund the contributions he
has withdrawn, with interest, as determined by the Board, within ninety (90) days after his
reemployment.
The years or fractional parts of a year that a Member performs "Qualified Military
Service" consisting of voluntary or involuntary "service in the uniformed services" as defined in
the Uniformed Services Employment and Reemployment Rights Act (USERRA) (P.L.103-353),
after separation from employment as a Police Officer or Firefighter with the City, shall be added
to his years of Credited Service for all purposes, including vesting, provided that:
A. The Member is entitled to reemployment under the provisions of
USERRA.
B. The Member returns to his employment as a Police Officer or Firefighter
within one (1) year from the earlier of the date of his military discharge or
his release from active service, unless otherwise required by USERRA.
C. The maximum credit for military service pursuant to this paragraph shall
be five (5) years.
D. This paragraph is intended to satisfy the mmnnum requirements of
USERRA. To the extent that this paragraph does not meet the minimum
standards of USERRA, as it may be amended from time to time, the
minimum standards shall apply.
In the event a Member dies on or after January 1, 2007, while performing USERRA
Qualified Military Service, the beneficiaries of the Member are entitled to any benefits ( other
than benefit accruals relating to the period of qualified military service) as if the Member had
resumed employment and then died while employed.
Firefighter means an actively employed full-time person employed by the City, including
his initial probationary employment period, who is certified as a Firefighter as a condition of
employment in accordance with the provisions of §633.35, Florida Statutes, and whose duty it is
to extinguish fires, to protect life and to protect prope1ty. The term includes all ce1tified,
supervisory, and command personnel whose duties include, in whole or in part, the supervision,
training, guidance, and management responsibilities of full-time Firefighters, pa1t-time
firefighters, or auxiliary firefighters but does not include part-tin1e firefighters or auxiliary
firefighters
Fund means the trust fund established herein as part of the System.
Member means an actively employed Police Officer or Firefighter who fulfills the
prescribed membership requirements. Benefit improvements which, in the past, have been
provided for by amendments to the System adopted by City ordinance, and any benefit
improvements which might be made in the future shall apply prospectively and shall not apply to
Members who terminate employment or who retire prior to the effective date of any ordinance
adopting such benefit improvements, unless such ordinance specifically provides to the contrary.
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Plan Year means the twelve (12) month period beginning October 1 and ending
September 30 of the following year.
Police Officer means an actively employed full -time person, employed by the City,
including his initial probationary employment period, who is certified as a Police Officer as a
condition of employment in accordance with the provisions of §943.1395, Florida Statutes, who
is vested with authority to bear arms and make arrests, and whose primary responsibility is the
prevention and detection ofcrime or the enforcement of the penal, traffic, or highway laws of the
State of Florida.
Retiree means a Member who has entered Retirement status.
Retirement means a Member's separation from City employment with eligibility for
immediate receipt of benefits under the System.
Salary means:
A. For Police Officer Members -the total compensation for services rendered
to the City as a Police Officer reportable on the Member's W-2 form plus
all tax deferred, tax sheltered, or tax exempt items of income derived from
elective employee payroll deductions or salary reductions, but excluding
lump sum payments of accrued unused sick or ammal leave and excluding
payments for extra duty or special detail work performed on behalf of a
second party employer.
B. For Firefighter Members -the total compensation for services rendered to
the City as a Firefighter repmtable on the Member's W-2 form plus all tax
deferred, tax sheltered, or tax exempt items of income derived from
elective employee payroll deductions or salary reductions, but excluding
lump sum payments of accrued unused sick or annual leave. Where, as
in the case of a volunteer Firefighter, compensation is derived from actual
services rendered, salary shall be the total cash compensation received
yearly for such services, prorated on a monthly basis, (as defined in Ch.
175 .032, Florida Statutes.
With respect to both Police Officer and Firefighter Members, for service earned
after the date that a collective bargaining agreement is entered into after July 1,
2011 (the "effective date"), Salary shall not include more than three hundred
(300) hours of ove1time per fiscal year and shall also not include payments for
accrued unused sick or annual leave. Provided however, in any event, payments
for overtime in excess of three hundred (300) hours per year accrued as of the
effective date and attributable to service earned prior to the effective date, may
still be included in Salary for pension purposes even if the payment is not actually
made until on or after the effective date. Additional hours worked pursuant to
the Fair Labor Standards Act (FLSA) shall not be deemed to be overtime.
Compensation in excess of the limitations set fmth in Section 401(a)(l 7) of the
Code as of the first day of the Plan Year shall be disregarded for any purpose,
including employee contributions or any benefit calculations. The annual
compensation of each member taken into account in determining benefits or
employee contributions for any Plan Year beginning on or after January 1, 2002,
may not exceed $200 ,000, as adjusted for cost-of-living increases in accordance
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with Code Section 401(a)(l 7)(B). Compensation means compensation during
the fiscal year. The cost-of-living adjustment in effect for a calendar year
applies to annual compensation for the determination period that begins with or
within such calendar year. If the determination period consists of fewer than 12
months, the annual compensation limit is an amount equal to the otherwise
applicable annual compensation limit multiplied by a fraction, the numerator of
which is the number of months in the sho1t determination period, and the
denominator of which is 12. If the compensation for any prior determination
period is taken into account in determining a Member's contributions or benefits
for the current Plan Year, the compensation for such prior determination period is
subject to the applicable annual compensation limit in effect for that prior period.
The limitation on compensation for an "eligible employee" shall not be less than
the amount which was allowed to be taken into account hereunder as in effect on
July 1, 1993. "Eligible employee " is an individual who was a Member before
the first Plan Year beginning after December 31, 1995.
Spouse means the lawful wife or husband of a Member or Retiree at the time benefits
become payable.
System means the City of City of Longwood Police Officers' and Firefighters' Pension
Trust Fund as contained herein and all amendments thereto.
2. Masculine Gender.
The masculine gender, where used herein, unless the context specifically requires
othe1wise, shall include both the feminine and masculine genders.
SECTION 2. MEMBERSHIP.
1. Conditions of Eligibility.
All Police Officers or Firefighters as of January 1, 1996, and all future new Police
Officer or Firefighters, shall become Members of this System as a condition of employment.
The current Police Chief and current Fire Chief are not Members of the system.
2. Police or Fire Chief Opt-Out.
Notwithstanding the previous subsection, any future new Police Chief or Fire
Chief may, within the first sixty (60) days of employment as Police Chief or Fire Chief, notify
the board and the City, in writing, of his election to not be a member of the system. In the event
of any such election, he shall be barred from future membership in the system and any
contributions made after employment and prior to opting out shall be refunded. Thereafter,
contributions to the plan in accordance with Section 5., shall not be required, he shall not be
eligible to be elected as a member trustee on the board or vote for a member trustee and shall not
be eligible for any other benefits from the plan.
3. Designation of Beneficiary.
Each Police Officer or Firefighter shall complete a form prescribed by the Board
designating a Beneficiary or Beneficiaries.
SECT ION 3. BOARD OF TRUSTEE§.
1. The sole and exclusive administration of and responsibility for the proper
operation of the System and for making e ffective the provisions of this ordinance is hereby
vested in a Board of Trustees. The Board is here by designated as the plan administrator. The
Board shall consist of fiv e (5) Trustee s, two (2) of whom, unless otherwis e prohibited by law,
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shall be legal residents of the City, who shall be appointed by the City of Longwood City
Commission, and two (2) of whom shall be Members of the Syste m, one (1) of whom shall be a
Police Officer Member and one (1) of whom shall be a Firefighter Member, who shall be elected
by a majority of the Police Officers or Firefighters, respectively, who are Members of the
System. The fifth Trustee shall be chosen by a majority of the previous four (4) Trustees as
provided for herein , and such person's name shall be submitted to the City of Longwood City
Commission. Upon receipt of the fifth person's name , the City of Longwood City
Commission shall , as a ministerial duty, appoint such person to the Board of Trustees as its fifth
Trustee. The fifth Trustee shall have the same rights as each of the other four (4) Trustees
appointed or elected as herein provided and shall serve a four ( 4) year term unless he sooner
vacates the office. Each resident Trustee shall serve as Trustee for a p eriod of four ( 4) years,
unless he sooner vacates the offic e or is sooner replaced by the City of Longwood City
Commission at whose pleasure he shall serve. Each Member Trustee shall serve as Trustee for
a period of four (4) years, unless he sooner leaves the employment of the City as a Police Officer
or Firefighter or otherwise vacates his office as Trustee, whereupon a successor shall be chosen
in the same manner as the departing Trustee. Each Trustee may succeed himself in office.
The Board shall establish and administer the nominating and election procedure s for each
election. The Board shall meet at least quarterly each year. The Board shall be a legal entity
with, in addition to other powers and responsibilities contained herein, the power to bring and
defe nd lawsuits of every kind , nature, and description.
2. The Trustees shall, by a majority vote, elect a Chairman and a Secretary. The
Secretary of the Board shall keep a complete minute book of the actions , proceedings, or
hearings of the Board. The Trustees shall not receive any compensation as such, but may
receive expenses and per diem as provided by law.
3. Each Trustee shall be entitled to one (1) vote on the Board. Three (3)
affirmative votes shall be necessary for any decision by the Trustees at any meeting of the Board.
A Trustee shall abstain from voting as the result of a conflict of interest and shall comply with
the provisions of Section 112.3143, Florida Statutes.
4. The Board shall engage such actuarial, accounting , legal, and other services as
shall be required to transact the business of the System. The compensation of all persons
engaged by the Board and all other expenses of the Board necessary for the operation of the
System shall be paid from the Fund at such rates and in such amounts as the Board shall agree.
In the event the Board chooses to use the City's legal counsel, actuary or other professional,
technical or other advisors , it shall do so only under terms and conditions acceptable to the
Board.
5. The duties and responsibilities of the Board shall include , but not necessarily be
limited to, the following:
A. To construe the provisions of the System and determine all questions
arising thereunder.
B. To determine all questions relating to eligibility and membership.
C. To determine and certify the amount of all retirement allowances or other
benefits hereunder.
D. To establish uniform rules and procedures to be followed for adminis-
trative purposes, benefit applications and all matters requir ed to administer
the Syste m.
E. To distribute to Memb ers, at regular intervals, information conce rning the
System.
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F . To receive and process all applications for benefits.
G. To authorize all payments whatsoever from the Fund, and to notify the
disbursing agent, in writing, of approved benefit payments and other
expenditures arising through operation of the System and Fund.
H. To have perfonned actuarial studies and valuations, at least as often as
required by law, and make recommendations regarding any and all
changes in the provisions of the System.
I. To perform such other duties as are required to prudently administer the
System.
SECTION 4. FINANCES AND FUND MANAGEMENT.
Establishment and Operation of Fund.
1. As part of the System, there is hereby established the Fund, into which shall be
deposited all of the contributions and assets whatsoever attributable to the System, including the
assets of the prior Police Officers' and Firefighters' Pension Trust Fund.
2. The actual custody and supervision of the Fund (and assets thereof) shall be
vested in the Board. Payment of benefits and disbursements from the Fund shall be made by
the disbursing agent but only upon written authorization from the Board.
3. All funds of the Police Officers' and Firefighters ' Pension Trust Fund may be
deposited by the Board with the Finance Director of the City, acting in a ministerial capacity
only, who shall be liable in the same manner and to the same extent as he is liable for the safe -
keeping of funds for the City. However, any funds so deposited with the Finance Director of
the City shall be kept in a separate fund by the Finance Director or clearly identified as such
funds of the Police Officers ' and Firefighters' Pension Trust Fund . In lieu thereof, the Board
shall deposit the funds of the Police Officers' and Firefighters' Pension Trust Fund in a
qualified public depository as defined in §280 .02, Florida Statutes, which depository with regard
to such funds shall conform to and be bound by all of the provisions of Chapter 280, Florida
Statutes. In order to fulfill its investment responsibilities as set forth herein, the Board may
retain the services of a custodian bank, an investment advisor registered under the Investment
Advisors Act of 1940 or otherwise exempt from such required registration, an insurance
company, or a combination of these, for the purposes of investment decisions and management.
Such investment manager shall have discretion, subject to any guidelines as prescribed by the
Board, in the investment of all Fund assets.
4 . All funds and securities of the System may be commingled in the Fund, provided
that accurate records are maintained at all times reflecting the financial composition of the Fund,
including accurate current accounts and entries as regards the following:
A. Current amounts of Accumulated Contributions of Members on both an
individual and aggregate account basis, and
B. Receipts and disbursements, and
C. Benefit payments, and
D. Current amounts clearly reflecting all monies, funds and assets whatsoever
attributable to contributions and deposits from the City, and
E . All int er e st, divid ends and gains ( or loss es) whatso ever , and
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F. Such other entries as may be properly required so as to reflect a clear and
complete financial repo1t of the Fund.
5. An audit shall be performed annually by a certified public accountant for the most
recent fiscal year of the System showing a detailed listing of assets and a statement of all income
and disbursements during the year. Such income and disbursements must be reconciled with
the assets at the beginning and end of the year. Such repott shall reflect a complete evaluation
of assets on both a cost and market basis, as well as other items normally included in a certified
audit.
6. The Board shall have the following investment powers and authority:
A. The Board shall be vested with full legal title to said Fund, subject,
however, and in any event to the authority and power of the City of
Longwood City Commission to amend or terminate this Fund, provided
that no amendment or Fund termination shall ever result in the use of any
assets of this Fund except for the payment of regular expenses and benefits
under this System, except as otherwise provided herein. All contribu-
tions from time to time paid into the Fund, and the income thereof,
without distinction between principal and income, shall be held and
administered by the Board or its agent in the Fund and the Board shall not
be required to segregate or invest separately any pottion of the Fund .
B. All monies paid into or held in the Fund shall be invested and reinvested
by t he Board and the investment of all or any part of such funds shall be
subject to the following:
(1) Notwithstand ing any li mitation provided for in Chapter 185 or
175, Florida Statutes to the contrary (unless such limitation
may not be amended by local ordinance) or any limitation in prior
city ordinances to the contrary, all monies paid into or held in the
Fund may be invested and reinvested in such securities, investment
vehicles or property wherever situated and of whatever kind, as
shall be approved by the Board, including but not limited to
common or preferred stocks, bonds, and other evidences of
indebtedness or ownership. In no event, however, shall more
than twenty-five percent (25%) of the assets of the Fund at market
value be invested in foreign securities.
(2) The Board shall develop and adopt a written investment policy
statement setting fo1th permissible types of investments, goals and
objectives of investments and setting quality and quantity
limitations on investments in accordance with the
recommendations of its investment consultants. The investment
policy statement shall be reviewed by the Board at least annually.
(3) In addition, the Board may, upon recommendation by the Board's
investment consultant, make investments in group trusts meeting
the requirements of Internal Revenue Service Revenue Ruling
81-100 or successor rulings or guidance of similar import, and
while any po1tion of the assets of the Fund are invested in such a
group trust, such group trust is itself adopted as a pmt of the
System or plan.
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C. At least once every three (3) years, and more often as determined by the
Board, the Board shall retain a professionally qualified independent
consultant, as defin ed in Section 175.071 or 18 5 .06 , Florida Statutes, to
evaluate the performance of all current investment managers and make
recommendations regarding the retention of all such investment manag ers.
These recommendations shall be considered by the Board at its next
regularly scheduled meeting.
D. The Board may retain in cash and keep unproductive of income such
amount of the Fund as it may deem advisable, having regard for the cash
r equirements of the Sys tem.
E. Neithe r the Board nor any Trustee shall be liable for the making, retention
or sale of any investment or reinvestment made as herein provided, nor for
any loss or diminishment of the Fund, except that due to his or its own
negligence, willful misconduct or lack of good faith .
F. The Board may cause any investme nt in securities held by it to be
registered in or transferred into its name as Trustee or into the name of
such nominee as it may direct, or it may retain them umegistered and in
form permitting transferability, but the books and records shall at all times
show that all investments are part of the Fund.
G. The Board is empowered, but is not required , to vote upon any stocks,
bonds, or securities of any corporation, association, or trust and to give
general or specific proxies or powers of attorney with or without power of
substitution; to participate in mergers, reorganizations, recapitalizations,
consolidations, and similar transactions with respect to such securities; to
deposit such stock or other securities in any voting trust or any protective
or like committee with the Trustees or with depositories designated
thereby; to amo1tize or fail to amortize any part or all of the premium or
discount resulting from the acquisition or disposition of assets; and gener-
ally to exercise any of the powers of an owner with respect to stocks ,
bonds, or other investments comprising the Fund which it may deem to be
to the best interest of the Fund to exercise.
H. The Board shall not be required to make any inventory or appraisal or
rep01t to any court, nor to secure any order of court for the exercise of any
power contained herein.
I. Where any action which the Board is required to take or any duty or
function which it is required to perform either under the terms herein or
under the general law applicable to it as Trustee under this ordinance, can
reasonably be taken or performed only after receipt by it from a Member,
the City, or any other entity, of specific information, ce1tification,
direction or instructions, the Board shall be free of liability in failing to
take such action or perform such duty or function until such information,
ce1tification, direction or instruction has been received by it.
J. Any overpayments or underpayments from the Fund to a Member, Retiree
or Beneficiary caus ed by errors of computation shall be adjusted with
int erest at a rat e per amrnm approved by the Board in such a manner that
the Actuarial E quiva lent of the benefit to which the Member, Retiree or
Beneficiary was correctly ent itl ed, shall be paid. Overpayments shall be
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charged against payments next succeeding the correction or collected in
another mam1er if prudent. Underpayments shall be made up from the
Fund in a prudent manner.
K. The Board shall sustain no liability whatsoever for the sufficiency of the
Fund to meet the payments and benefits provided for herein.
L. In any application to or proceeding or action in the comts, only the Board
shall be a necessary party, and no Member or other person having an
interest in the Fund shall be entitled to any notice or service of process.
Any judgment entered in such a proceeding or action shall be conclusive
upon all persons.
M. Any of the foregoing powers and functions reposed in the Board may be
performed or carried out by the Board through duly authorized agents,
provided that the Board at all times maintains continuous supervision over
the acts of any such agent; provided further, that legal title to said Fund
shall always remain in the Board.
SECTION 5. CONTRIBUTION§.
1. Member Contributions.
A. Amount. Each Member of the System shall be required to make regular
contributions to the Fund in the amount of one percent (1 %) of his Salary.
Member contributions withheld by the City on behalf of the Member shall
be deposited with the Board immediately after each pay period. The
contributions made by each Member to the Fund shall be designated as
employer contributions pursuant to §414(h) of the Code. Such designa-
tion is contingent upon the contributions being excluded from the
Members' gross income for Federal Income Tax purposes. For all other
purposes of the System, such contributions shall be considered to be
Member contributions.
B. Method. Such contributions shall be made by payroll deduction.
2. State Contributions.
Any monies received or receivable by reason of laws of the State of Florida, for
the express purpose of funding and paying for retirement benefits for Police Officer or
Firefighters of the City shall be deposited in the Fund comprising part of this System
immediately and under no circumstances more than five (5) days after receipt by the City.
3. City Contributions.
So long as this System is in effect, the City shall make quarterly contributions to
the Fund in an amount equal to the required City contribution, as shown by the applicable
actuarial valuation of the System.
Private donations, gifts and contributions may be deposited to the Fund, but such
deposits must be accounted for separately and kept on a segregated bookkeeping basis. Funds
arising from these sources may be used only for additional benefits for Members, as determined
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by the Board, and may not be used to reduce what would have otherw ise been required C ity
contributions.
SECTION 6. BENEFIT AMOUNTS AND ELIGIBILITY.
1. Normal Retirement Date.
A Member's normal retirement date shall be the first day of the month coincident
with, or next following the earlier of the attainment of age fifty (50) and five (5) years of
Credited Service, or attainment of twenty-five (25) years of Credited Service, regardless of age.
A Member may retire on his normal retirement date or on the first day of any month thereafter,
and each Member shall become one hundred p ercent (100%) vested in his accrued benefit on the
Member's normal retirement date. Normal retirement under the System is Retirement from
employment with the City on or after the normal retirement date.
2. Normal Retirement Benefit.
A Member retiring hereunder on or after his normal retirement date shall receive a
monthly benefit which shall commence on the first day of the month coincident with or next
fo !lowing his Retirement and be continued thereafter during Member's lifetime, ceasing upon
death, but with one hundred twenty (120) monthly payments guaranteed in any event. The
monthly retirement benefit shall equal three percent (3%) of Average Final Compensation, for
each year of Credited Service.
3. Required Distribution Date.
The Member's benefit under this Se ction 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 (70½) or the calendar year in which the
Member terminates employment with the City.
SECTION 7 . PRE-RETIREMENT DEATH.
1. Prior to Vesting or Eligibility for Retirement.
The Beneficiary of a deceased Member who was not receiving monthly benefits
or who was not yet vested or eligible for normal retirement shall receive a refund of one hundred
percent (100%) of the Member's Accumulated Contributions plus an immediate $50,000.00 lump
sum payment.
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 his death
was vested or eligible for normal retirement, shall be entitled to a benefit as follows:
A. If the Member was vested, but not eligible for normal retirement, the
Spouse Beneficiary shall receive a benefit payable for ten (10) years,
beginning on the date that the deceased Member would have been eligible
for normal retirement. The benefit shall be calculated as for normal
retirement based on the dece ased Member's Credited Service and Average
Final Compensation as of the date of his death. The Spouse Beneficiary
may also elect to receiv e an actuarially redu ced immediate benefit,
payable for ten (10) yea rs.
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3.
B. If the dece ased Member was e ligible for no1mal retirement , the Sp ouse
Beneficiary shall receiv e a benefit payable for ten (10) years, beginning on
the first day of the month following the Member's death. The benefit
shall be calculated as for normal retirement based on the deceased
Member's Credited Service and Average Final Compensation as of the
date of his death.
C. A Spouse Beneficiary may not elect an optional form of benefit, except as
provided above , however, the Board may elect to make a lump sum
payment pursuant to Section 10 , subsection 7.
D. A Spouse Beneficiary may, in lieu of any benefit provided for in A or B
above , elect to receive a refund of the dece ased Member's Accumulated
Contributions.
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 70½.
F. If the surviving Spouse Beneficiary commences receiving a benefit under
subsection A or B above, but dies before all payments are made, the
actuarial value of the remaining benefit will be paid to the Spouse
Beneficiary's estate in a lump sum.
Deceased Members Vested or Eligible for Retirement with Non-Sp ouse
Beneficiary.
This subsection applies only when the Member's Spouse is not the Beneficiary or
is not the sole designated Beneficiary, but there is a surviving Beneficiary. The Beneficiary of
any Member who dies and who, at the date of his death was vested or eligible for normal
retirement, shall be entitled to a benefit as follows:
A. If the Member was vested, but not eligible for normal retirement, the
Beneficiary will receive a benefit payable for ten (10) years. The benefit
will begin by December 31 of the calendar year immediately following the
calendar year in which the Member died. The benefit will be calculated
as for normal retirement based on the deceased Member's Credited Service
and Average Final Compensation and actuarially reduced to reflect the
commencement of benefits prior to the normal retirement date .
B . If the deceased Member was eligible for normal retirement, the
Beneficiary will receive a benefit payable for ten (10) years, beginning on
the first day of the month following the Member's death. The benefit
will be calculated as for normal retirement based on the deceased
Member's Credited Service and Average Final Compensation as of the
date of his death.
C. A Beneficiary may not elect an optional form of benefit, however the
Board may elect to make a lump sum payment pursuant to Section 10 ,
subsection 7.
D. A Beneficiary, may, in li eu of any benefit provided for in A or B above,
e lect to r ece ive a refu nd of the deceased Member's Accumulated
Co ntrib utions .
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E. If a surviving Beneficiary commences receiving a bene fit unde r subsection
A or B above, but dies before all payments are mad e, the actuarial valu e of
the remaining benefit will be paid to the surviving Beneficiary's e state by
December 31 of the calendar year of the Benefic iary's death in a lump
sum.
F. If there is no surviving Beneficiary as of the Member's death, and the
es tate is to receive the benefits, the actuarial equivalent of the Member's
entire interest must be distributed by December 31 of the calendar year
containing the fifth annive rsary of the Member's d e ath.
G. The Uniform Lifetime Table in Treasury Regulations § l.401(a)(9)-9 shall
determine the payment period for the calendar year bene fits commence, if
necessary to satisfy the regulations.
4. In addition to the benefits provided for in paragraphs 2 and 3, the b e neficiary of a
dec eased M e mber shall receive an immediate $50,000.00 lump sum payment.
SECTION 8. DISABILITY.
1. Disability Benefits In-L ine of Duty.
Any Member who shall become totally and permanently disable d to the extent
that he is unable, by r e ason of a m e dically determinable physical or mental impairment, to r ender
useful and efficient service as a Police Officer or Firefighter, which disability was directly
caused by the performance of his duty as a Police Offic er or Firefighter, shall, upon establishing
the same to the satisfaction of the Board, be entitled to a monthly pension equal to two percent
(2%) of his Average Final Compensation multiplied by the total years of Credited Service, but in
any event the minimum amount paid to the Member shall be fifty percent (50%) of the Average
Final Compensation of the Member. Terminated persons, either vested or non-vested, are not
eligible for disability benefits, except that those terminated by the City for medical reasons may
apply for a disability within thirty (30) days after termination.
2. In-Line of Duty Presumptions.
A. Presumption. Any condition or impairment of health of a Member
caused by hypertension or hea1t disease shall be presumed to have been
suffered in line of duty unless the contrary is shown by competent
evidence, provided that such Member shall have succes sfully passed a
physical examination upon entering into such service, including cardio-
gram for Police Officer Member, which examination failed to reveal any
evidence of such condition; and provided fmther , that such presumption
shall not apply to benefits payable or granted in a policy of life insurance
or disability insurance.
B. Additional Presumption. The presumption provided for in this paragraph
B shall apply only to those conditions described in this paragraph B that
are diagnosed on or after January 1, 1996.
(1) Definitions. As used in this subsection 2 .B., the following
definitions apply:
(a) "Body fluids" m eans blood and body fluids c ontaining
visible blood and other body fluids to which univ e rsal
precautions for prevention of o ccupational transmission of
blood-borne pathogens, as establish ed by the Centers fo r
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Disease C ontrol, apply. For purposes of potential
transmi s sion of meningo co cca l menin gitis or tuberculosis,
the t erm "body fluids" includes respiratory, salivary, and
sinus fluids , including droplets , sputum, and saliva,
mucous, and other fluids tlu·ough which infectious airborne
organisms can be transmitted between persons.
(b) "Emergency rescue or public safety Member" means any
Member employed full time by the City as a fir efig hte r,
paramedic , e mergency medical technician, law enforce-
ment officer, or conectional officer who, in the course of
employment, runs a high risk of occ upational exposure to
hepatitis, meningococcal me ningitis , or tuberculosis and
who is not employed elsewhere in a similar capacity.
However, the term "emergency rescue or public safety
Member" does not include any person e mploye d by a
public hospital lic ensed und er Chapter 395, Florida
Statutes, or any person employed by a subsidiary thereof
(c) "Hepatitis" means hepatitis A, hepatitis B, hepatitis non-A,
hepatitis non-B, hepatitis C, or any other strain of hepatitis
generally recognized by the medi ca l conununity.
( d) "High risk of occupational exp osure" means that risk that is
incurred because a person subject to the provisions of this
subsection, in performing the basic duties associated with
his employment:
1. Provides emergency medical treatment in a
non-health-care setting where there is a potential for
transfer of body fluids between persons;
11. At the site of an accident, fir e, or other rescue or
public safety operation, or in an emergency resc ue
or public safety vehicle, handles body fluids in or
out of containers or works with or otherwise
handles nee dles or other sharp instruments exposed
to body fluids;
m . Engages in the pursuit, apprehension, and arr es t of
law violators or suspected law violators and, in
performing such duties, may be exposed to body
fluids; or
1v. Is responsible for the custody, and physical restraint
when necessary, of prisoners or inmates within a
prison, jail, or other criminal detention facility ,
while on work detail outside the facility, or while
being transported and, in performing such duties,
may be exposed to body fluids.
( e) "Occupational exposure," in the case of hepatitis,
menin goco cca l meningiti s, or tuberculosis, m eans an
exposure that occurs during the performance of job duties
that may place a worker at r isk of infection.
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(2) Presumption. Any emergency rescue or public safety Member
who suffers a condition or impairment of health that is caused by
hepatitis, meningococcal meningitis, or tuberculosis , that requires
medical treatment, and that results in total or partial disability or
death shall be presumed to have a disability suffered in the line of
duty, unless the contrary is shown by competent evidence;
however, in order to be entitled to the presumption, the Member
must, by written affidavit as provided in Section 92.50, Florida
Statutes, verify by written declaration that, to the best of his
knowledge and belief:
(a) In the case of a medical condition caused by or derived
from hepatitis, he has not:
1. Been exposed, through transfer of bodily fluids, to
any person known to have sickness or medical
conditions derived from hepatitis , outside the scope
of his employment;
11. Had a transfusion of blood or blood components,
other than a transfusion arising out of an accident or
injury happening in connection with his present
employment, or received any blood products for the
treatment of a coagulation disorder since last
undergoing medical tests for hepatitis, which tests
failed to indicate the presence of hepatitis;
111. Engaged in unsafe sexual practices or other
high-risk behavior, as identified by the Centers for
Disease Control or the Surgeon General of the
United States or had sexual relations with a person
known to him to have engaged in such unsafe
sexual practices or other high-risk behavior; or
1v. Used intravenous drugs not prescribed by a
physician.
(b) In the case of meningococcal meningitis, in the ten (10)
days immediately preceding diagnosis he was not exposed,
outside the scope of his employment, to any person known
to have meningococcal meningitis or known to be an
asymptomatic carrier of the disease.
( c) In the case of tuberculosis, in the period of time since the
Member's last negative tuberculosis skin test, he has not
been exposed, outside the scope of his employment, to any
person known by him to have tuberculosis.
(3) Immunization. Whenever any standard, medically recognized
vaccine or other form of immunization or prophylaxis exists for the
prevention of a communicable disease for which a presumption is
granted under this Section, if medically indicated in the given
circumstances pursuant to immunization policies established by the
Advisory Committee on Immunization Practices of the U.S. Public
Health Service, an emergency rescue or public safety Member may
be required by the City to undergo the immunization or
prophylaxis unless the Member's physician dete1mines in writing
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that the immunization or other prophylaxis would pose a
significant risk to the Member's health. Absent such written
declaration, failure or refosal by an emergency rescue or public
safety Member to undergo such immunization or prophylaxis
disqualifies the Member from the benefits of the presumption.
(4) Record of Exposures. The City shall maintain a record of any
known or reasonably suspected exposure of an emergency rescue
or public safety Member in its employ to the disease described in
this Section and shall immediately notify the Member of such
exposure. An emergency rescue or public safety Member shall
file an incident or accident report with the City of each instance of
known or suspected occupational exposure to hepatitis infection,
meningococcal meningitis, or tuberculosis.
(5) Required medical tests; preemployment physical. In order to be
entitled to the presumption provided by this Section:
(a) An emergency rescue or public safety Member must, prior
to diagnosis, have undergone standard, medically accept-
able tests for evidence of the communicable disease for
which the presumption is sought, or evidence of medical
conditions derived therefrom, which tests fail to indicate
the presence of infection. This paragraph does not apply
in the case of meningococcal meningitis.
(b) On or after June 15, 1995, an emergency rescue or public
safety Member may be required to undergo a
preemployment physical examination that tests for and fails
to reveal any evidence of hepatitis or tuberculosis.
3. Disability Benefits Not-in-Line of Duty.
Any Member with ten (10) years or more Credited Service who shall become
totally and permanently disabled to the extent that he is unable, by reason of a medically deter-
minable physical or mental impairment, to render usefol and efficient service as a Police Officer
or Firefighter, which disability is not directly caused by the performance of his duties as a Police
Officer or Firefighter shall, upon establishing the same to the satisfaction of the Board, be
entitled to a monthly pension equal to two percent (2%) of his Average Final Compensation
multiplied by the total years of Credited Service, but in any event, the minimum amount paid to
the Member shall be twenty-five (25%). Terminated persons, either vested or non-vested, are
not eligible for disability benefits, except that those terminated by the City for medical reasons
may apply for a disability within thirty (30) days after tennination.
4. Conditions Disqualifying Disability Benefits.
Each Member who is claiming disability benefits shall establish, to the
satisfaction of the Board, that such disability was not occasioned primarily by:
A. Excessive or habitual use of any drugs, intoxicants or narcotics.
B. Injury or disease sustained while willfully and illegally participating in
fights, riots or civil insurrections or while committing a crime.
C. Injury or diseas e sustaine d while serving in any branch of the Armed
Force s .
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D. Injury or disease sustained by the Member after his employment as a
Police Officer or Firefighter with the City of City of Longwood shall
have terminated.
E. For Police Officer Members, injury or disease sustained by the Member
while working for anyone other than the City and arising out of such
employment.
5. Physical Examination Requirement.
A Member shall not become eligible for disability benefits until and unless he
undergoes a physical examination by a qualified physician or physicians and/or surgeon or
surgeons, who shall be selected by the Board for that purpose. The Board shall not select the
Member's treating physician or surgeon for this purpose except in an unusual case where the
Board determines that it would be reasonable and prudent to do so.
Any Retiree receiving disability benefits under provisions of this ordinance may
be required by the Board to submit sworn statements of his condition accompanied by a
physician's statement (provided at the Retiree's expense) to the Board annually and may be
required by the Board to undergo additional periodic re-examinations by a qualified physician or
physicians and/or surgeon or surgeons who shall be selected by the Board, to determine if such
disability has ceased to exist. If the Board finds that the Retiree is no longer permanently and
totally disabled to the extent that he is unable to render useful and efficient service as a Police
Officer or Firefighter, the Board shall recommend to the City that the Retiree be returned to
performance of duty as a Police Officer or Firefighter, and the Retiree so returned shall enjoy the
same rights that he had at the time he was placed upon pension. In the event the Retiree so
ordered to return shall refuse to comply with the order within thirty (30) days from the issuance
thereof, he shall forfeit the right to his pension.
The cost of the physical examination and/or re -examination of the Member
claiming or the Retiree receiving disability benefits shall be borne by the Fund. All other
reasonable costs as determined by the Board incident to the physical examination, such as, but
not limited to, transportation, meals and hotel accommodations, shall be borne by the Fund.
If the Retiree recovers from disability and reenters the service of the City as a
Police Officer or Firefighter, his service will be deemed to have been continuous, but the period
beginning with the first month for which he received a disability retirement income payment and
ending with the date he reentered the service of the City will not be considered as Credited
Service for the purposes of the System.
The Board shall have the power and authority to make the final decisions
regarding all disability claims.
6. Disability Payments.
The monthly benefit to which a Member is entitled in the event of the Member's
disability retirement shall be payable on the first day of the first month after the Board deter-
mines such entitlement. However, the monthly retirement income shall be payable as of the
date the Board determined such entitlement, and any p01tion due for a partial month shall be paid
together with the first payment. The last payment will be:
A. If the Retir ee recovers from the disability, the payment due next preceding
the date of such recovery, or
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B. If the Retiree dies without recovering from disability, the payment due
next preceding his death or the 120th monthly payment, whichever is later.
Provided, however, the disability Retiree may select, at any time prior to the date
on which benefit payments begin, an optional form of benefit payment as described in Section
10, subsection l.A. or l.B., which shall be the Actuarial Equivalent of the normal form of
benefit.
7. Workers' Compensation.
When a Retiree is receiving a disability pension and workers' compensation
benefits pursuant to Florida Statute Chapter 440, for the same disability, and the total monthly
benefits received from both exceed one hundred percent (100%) of the Member's average
monthly wage, as defined in Chapter 440, Florida Statutes, the disability pension benefit shall be
reduced so that the total monthly amount received by the Retiree does not exceed one hundred
percent (100%) of such average monthly wage. The amount of any lump sum workers'
compensation payment shall be converted to an equivalent monthly benefit payable for ten (10)
Years Certain by dividing the lump sum amount by 83.9692. Notwithstanding the foregoing, in
no event shall the disability pension benefit be reduced below the greater of forty-two percent
(42%) of Average Final Compensation or two percent (2%) of Average Final Compensation
times years of Credited Service .
SECTION 9. VESTING.
If a Member terminates his employment as a Police Officer or Firefighter, either
voluntarily or by discharge, and is not eligible for any other benefits under this System, the
Member shall be entitled to the following:
1. If the Member has less than five (5) years Credited Service upon termination, the
Member shall be entitled to a refund of his Accumulated Contributions or the Member may leave
it deposited with the Fund.
2. If the Member has five (5) or more years of Credited Service upon termination,
the Member shall be entitled to a monthly retirement benefit, determined in the same manner as
for normal retirement and based upon the Member's Credited Service, Average Final
Compensation and the benefit accrual rate as of the date of termination, payable to him
commencing at the Member's otherwise normal retirement date, determined based upon his
actual years of Credited Service, provided he does not elect to withdraw his Accumulated
Contributions and provided the Member survives to his otherwise normal retirement date. If
the Member does not withdraw his Accumulated Contributions and does not survive to his
otherwise normal retirement date, his designated Beneficiary shall be entitled to a benefit as
provided herein for a deceased Member, vested or eligible for Retirement under Pre-Retirement
Death.
SECTION 10. OPTIONAL FORMS OF BENEFITS.
1. In lieu of the amount and form of retirement income payable in the event of
normal retirement as specified herein, a Member, upon written request to the Board, may elect to
receive a retirement income or benefit of equivalent actuarial value payable in accordance with
one (1) of the following options:
A. A retirement income of a monthly amount payable to the Retiree for his
lifetime only.
B. A retirement income of a modified monthly amount, payable to the
Retiree during the lifetime of the Retiree and following the death of the
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Retiree, one hundred percent (100%), seventy-five percent (75%),
sixty-six and two -thirds percent (66 2/3%) or fifty percent (50%) of such
monthly amount payable to a joint pensioner for his lifetime. Except
where the Retiree's joint pensioner is his spouse, the payments to the joint
pensioner as a percentage of the payments to the Retiree shall not exceed
the applicable percentage provided for in the applicable table in the
Treasury regulations. (See Q & A -2 of l.401(a)(9)-6)
C. If a Member retires prior to the time at which social security benefits are
payable, he may elect to receive an increased retirement benefit until such
time as social security benefits shall be assumed to commence and a
reduced benefit thereafter in order to provide, to as great an extent as
possible, a more level retirement allowance during the entire period of
Retirement. The amounts payable shall be as recommended by the
actuaries for the System, based upon the social security law in effect at the
time of the Member's Retirement.
2. The Member, upon electing any option of this Section, will designate the joint
pensioner (subsection l.B. above) or Beneficiary ( or Beneficiaries) to receive the benefit, if any,
payable under the System in the event of Member's death, and will have the power to change
such designation from time to time. Such designation will name a joint pensioner or one (1) or
more primary Beneficiaries where applicable. A Member may change his Beneficiary at any
time. If a Member has elected an option with a joint pensioner and Member's retirement
income benefits have commenced, Member may thereafter change his designated Beneficiary at
any time, but may only change his joint pensioner twice. Subject to the restriction in the
previous sentence, a Member may substitute a new joint pensioner for a deceased joint
pensioner. In the absence of proof of good health of the joint pensioner being replaced, the
actuary will assume that the joint pensioner has deceased for purposes of calculating the new
payment.
3. The consent of a Member's or Retiree's joint pensioner or Beneficiary to any such
change shall not be required. The rights of all previously-designated Beneficiaries to receive
benefits under the System shall thereupon cease.
4. Upon change of a Retiree's joint pensioner in accordance with this Section, the
amount of the retirement income payable to the Retiree shall be actuarially redetermined to take
into account the age of the former joint pensioner, the new joint pensioner and the Retiree and to
ensure that the benefit paid is the Actuarial Equivalent of the present value of the Retiree's
then-current benefit at the time of the change. Any such Retiree shall pay the actuarial
recalculation expenses. Each request for a change will be made in writing on a form prepared
by the Board and on completion will be filed with the Board. In the event that no designated
Beneficiary survives the Retiree, such benefits as are payable in the event of the death of the
Retiree subsequent to his Retirement shall be paid as provided in Section 11.
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:
A If a Member dies prior to his normal retirement date retirement date,
whichever first occurs, no retirement benefit will be payable under the
option to any person, but the benefits, if any, will be determined under
Section 7 .
B. If the designated Beneficiary ( or Beneficiaries) or joint pensioner dies
before the Member's Retirement under the System, the option elected will
be canceled automatically and a retirement income of the normal form and
amount will be payable to the M ember upon his Retirement as if the
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election had not been made, unless a new election is made in accordance
with the provisions of this Section or a new Beneficiary is des ignated by
the Member prior to his Retirement.
C. If both the Retiree and the Beneficiary (or Beneficiaries) designated by
Member or Retiree die before the full payment has been effected under
any option providing for payments for a period ce1tain and life thereafter,
made pursuant to the provisions of subsection 1, the Board may, in its
discretion, direct that the commuted value of the remaining payments be
paid in a lump sum and in accordance with Section 11.
D. If a Member continues beyond his normal retirement dat e pursuant to the
provisions of Section 6, subsection 1, and dies prior to his actual retire -
ment and while an option made pursuant to the provisions of this Section
is in effect, monthly retirement income payments will be made, or a retire -
ment benefit will be paid, under the option to a Beneficiary ( or
Beneficiaries) designated by the Member in the amount or amounts
computed as if the Member had retired und er the option on the date on
which his death occurred.
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
(70½) or the calendar year in which the Member terminates employment
with the City.
6. A Retiree may not change his retirement option after the date of cashing or
depositing his first retirement check.
7. Notwithstanding anything herein to the contrary, the Board in its discretion, may
elect to make a lump sum payment to a Member or a Member's Beneficiary in the event that the
total commuted value of the monthly income payments to be paid do not exceed one thousand
dollars ($1,000). Any such payment made to any person pursuant to the power and discretion
conferred upon the Board by the preceding sentence shall operate as a complete discharge of all
obligations under the System with regard to such Member and shall not be subject to review by
anyone, but shall be final, binding and conclusive on all persons.
SECTION 11. BENEFICIARIES.
1. Each Member or Retiree may, on a form provided for that purpose, signed and
filed with the Board, designate a Beneficiary ( or Beneficiaries) to receive the benefit, if any,
which may be payable in the event of his death . Each designation may be revoked or changed
by such Member or Retiree by signing and filing with the Board a new
designation-of-beneficiary form. Upon such change, the rights of all previously designated
Beneficiaries to receive any benefits under the System shall cease.
2. If a deceased Member or Retiree failed to name a Beneficiary in the manner
prescribed in subsection 1, or if the Beneficiary (or Beneficiaries) named by a deceased Member
or Retiree predeceases the Member or Retiree, the death benefit, if any, which may be payable
under the System with respect to such deceased Member or Retiree, shall be paid to the estate of
the Member or Retiree and the Board , in its discretion, may direct that the commuted value of
the remaining monthly income benefits be paid in a lump sum.
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3. Any payment made to any person pursuant to this Section shall op erat e as a
complet e discharge of all obligations under the System with re gard to the deceas ed M e mber and
any other persons with rights und er the Syst em and shall not be subj ect to rev iew by anyone but
shall be final , binding and conclusive on all p ersons ever inter ested h ereund er.
SECTION 12. CLAIM§ PROCED URE§.
1. The Board shall e stablish administrative claims procedures to b e utilize d in
pro cessing written requests ("claims"), on matt ers which affe ct the substantial rights of any
person ("Claimant"), including Members , R etiree s, Beneficiari es, or any person affect ed by a
dec ision of the Board.
2 . The Board shall have the power to subpo ena and require the attendance of
witnesse s and the production of documents for dis covery prior to and at any proceedings
provide d for in the Board's claims procedure s . The Claimant may request in writing the
issuance of subpo enas by the Board . A reasonable fee may be charged for the issuance of any
subpoenas not to exceed the fe e s set forth in Florida Statutes.
SE CTION 13 . REPO RT§ T O DIVISION OF RETIREMENT.
Each year and no lat er than March 15th, the Board shall file an Annual Report with the
Division of Retirement containing the do cuments and information required by Se ction 17 5 .2 61
or 18 5 .2 21 , Florida Statutes.
SE CTION 14 . RO STER OF RETIRE E§.
The Secretary of the Board shall k eep a record of all p ersons enjoying a pension under
the provisions of this ordinance in which it shall be noted the time when the pension is allowed
and when the same shall cease to be paid. Additionally, the Secretary shall keep a record of all
Members in such a mam1er as to show the name, address , date of employment and date of
termination of employment.
SE CTION 15. MAXIMUM PEN SIO N.
1. Basic Limitation.
Notwithstanding any other provisions of this System to the contrary, the Member
contributions paid to , and retirement benefits paid from, the System shall be limited to such
extent as may be necessary to conform to the requirements of Code Section 415 for a qualifie d
retirement plan. Before January 1, 1995, a plan member may not receive an annual benefit that
exceeds the limits specified in Code Section 415(b), subject to the applicable adjustments in that
section. On and after January 1, 1995, a plan m ember may not receive an annual benefit that
exceeds the dollar amount specified in Code Section 415(b)(l)(A) ($160,000), subject to the
applicable adjustments in Code Section 415(b) and subject to any additional limits that may be
specified in this System. For purposes of this Section, "limitation y e ar" shall be the calendar
year.
2. Adjustments to Basic Limitation for Form of Benefit.
If the form of benefit without regard to any benefit in creas e featur e is not a
straight life annuity, then the Code Se ction 415(b) limit applicable at the annuity starting date is
r edu ce d to an actuarially equivale nt amount ( det ermine d usin g the assumptions sp ecified in
Treasur y Regulation Section l.41 5(b)-l(c)(2)(ii)) that takes into a cc ount t he death b enefits und er
the form of b e n e fit.
3 . Benefit s N ot Ta ken into Account .
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For purposes of this Section, the following benefits shall not be taken into ac count
in applying thes e limits:
A. Any ancillary benefit which is not directly related to retirement income
benefits;
B. Any other benefit not required under §415(b)(2) of the Code and
Regulations thereunder to be taken into account for purposes of the
limitation of Code Section 415(b)(l).
4. COLA Effect.
Effective on and after January 1, 2 003, for purposes of applying the limits under
Code Section 415(b) (the "Limit"), the following will apply:
A. A Member's applicable limit will be applied to the Member's annual
benefit in the Member's first calendar year of benefit payments without
regard to any automatic cost of living adjustments ;
B. thereafter, in any subsequent calendar year, a Member's annual benefit,
including any automatic cost of living increases, shall be tested under the
then applicable benefit limit including any adjustment to the Code Section
415(b )(1 )(A) dollar limit under Code Section 415( d), and the regulations
thereunder; but
C. in no event shall a Member's benefit payable under the System in any
calendar year be greater than the limit applicable at the annuity staiiing
date, as increased in subsequent years pursuant to Code Section 415( d)
and the regulations thereunder.
Unless otherwise specified in the System, for purposes of applying the limits
under Code Section 415(b), a Member's applicable limit will be applied taking into consideration
cost of living increases as required by Section 415(b) of the Code and applicable Treasury
Regulations.
5. Other Adjustments in Limitations.
A. In the event the Member's retirement benefits become payable before age
sixty-two (62), the limit prescribed by this Section shall be reduced in
accordance with regulations issued by the Secretary of the Treasury
pursuant to the provisions of Code Section 415(b) of the Code, so that
such limit (as so reduced) equals an annual straight life benefit (when such
retirement income benefit begins) which is equivalent to a one hundred
sixty thousand dollar ($160,000) annual benefit beginning at age sixty-two
(62).
B. In the event the Member's benefit is based on at least fifteen (15) years of
Credited Service as a full -time employee of the police or fire depmiment
of the City, the adjustments provided for in A. above shall not apply.
C. The reductions provided for in A. above shall not be applicable to
disability benefits pursuant to Section 8, or pre-retirement d e ath benefits
paid pursuant to Section 7.
D. In the event the Memb er's retirement benefit b ecomes payable after age
sixty-five (6 5), for purposes of determining whether this benefit meets the
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6.
limit set fo1ih in subsection 1 herein, such benefit shall be adjusted so that
it is actuarially equivalent to the benefit beginning at age sixty-five (65).
This adjustment shall be made in accordance with regulations promulgated
by the Secretary of the Treasury or his delegate.
Less than Ten (10) Years of Service.
The maximum retirement benefits payable under this Section to any Member who
has completed less than ten (10) years of Credited Service with the City shall be the amount
determined under subsection 1 of this Section multiplied by a fraction, the numerator of which is
the number of the Member's years of Credited Service and the denominator of which is ten (10).
The reduction provided by this subsection cannot reduce the maximum benefit below 10%.
The reduction provided for in this subsection shall not be applicable to disability benefits paid
pursuant to Section 8, or pre-retirement death benefits paid pursuant to Section 7.
7. Participation in Other Defined Benefit Plans.
The limit of this Section with respect to any Member who at any time has been a
member in any other defined benefit plan as defined in Code Section 414(j) maintained by the
City shall apply as if the total benefits payable under all City defined benefit plans in which the
Member has been a member were payable from one plan.
8. Ten Thousand Dollar ($10,000) Limit.
Notwithstanding the foregoing, the retirement benefit payable with respect to a
Member shall be deemed not to exceed the limit set fo1th in this Section if the benefits payable,
with respect to such Member under this System and under all other qualified defined benefit
pension plans to which the City contributes, do not exceed ten thousand dollars ($10,000) for the
applicable Plan Year and for any prior Plan Year and the City has not any time maintained a
qualified defined contribution plan in which the Member participated.
9. Reduction of Benefits.
Reduction of benefits and/or contributions to all plans, where required, shall be
accomplished by first reducing the Member's benefit under any defined benefit plans in which
Member participated, such reduction to be made first with respect to the plan in which Member
most recently accrued benefits and thereafter in such priority as shall be determined by the Board
and the plan administrator of such other plans, and next, by reducing or allocating excess
forfeitures for defined contribution plans in which the Member participated, such reduction to be
made first with respect to the plan in which Member most recently accrued benefits and
thereafter in such priority as shall be established by the Board and the plan administrator for such
other plans provided, however, that necessary reductions may be made in a different manner and
priority pursuant to the agreement of the Board and the plan administrator of all other plans
covering such Member
10. Service Credit Purchase Limits.
A. Effective for permissive service credit contributions made in limitation
years beginning after December 31, 1997, if a Member makes one or more
contributions to purchase permissive service credit under the System, as
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allowed in Section 26 and 27, then the requirements of this Section will be
treated as met only if:
(1) the requirements of Code Section 4 l 5(b) are met, determined by
treating the accrued benefit derived from all such contribution s as
an annual benefit for purposes of Code Section 415(b), or
(2) the requirements of Code Section 415(c) are met, determined by
treating all such contributions as annual additions for purposes of
Code Section 415(c).
(3) For purposes of applying subparagraph (1), the System will not fail
to meet the reduced limit under Code Section 415(b)(2)(c) solely
by reason of this subparagraph (3), and for purposes of applying
subparagraph (2) the System will not fail to meet the percentage
limitation under Section 415( c )(1 )(B) of the Code solely by reason
of this subparagraph (3).
B. For purposes of this subsection the term "permissive service credit " means
service cred it-
( l) recognized by the System for purposes of ca lculating a Member's
benefit under the plan,
(2) which such Member has not received under the plan, and
(3) which such Member may receive only by making a voluntary
additional contribution, in an amount determined und er the
System, which does not exceed the amount necessary to fund the
benefit attributable to such service credit.
Effective for permissive service credit contributions made in limitation
years beginning after December 31, 1997, such term may, if otherwise
provided by the System, include service credit for periods for which there
is no performance of service, and, notwithstanding claus e B.(2), may
include service credited in order to provide an increased benefit for service
credit which a Member is receiving under the System.
C. For purposes of applying the limits in this subsection 10., only and for no
other purpose, the definition of compensation where applicable will be
compensation actually paid or made available during a calendar year,
except as noted below and as permitted by Treasury Regulations Section
1.415( c )-2, or successor regulations. Unless another definition of
compensation that is permitted by Treasury Regulations Section
1.415( c )-2, or successor regulation, is specified by the System,
compensation will be defined as wages within the meaning of Code
Section 3401(a) and all other payments of compensation to an employee
by an employer for which the emp lo yer is required to furnish the
employee a written statement under Code Sections 604l(d), 6051(a)(3)
and 6052 and will be determined without regard to any rules under Code
Section 3401(a) that limit the remuneration included in wages based on
the nature or location of the employment or the services performed (such
as the exception for agricultural labor in Code Section 3401(a)(2).
(1) However, for calendar years beginning after December 31, 1997,
compensation will also include amounts that would otherwise be
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included in compensation but for an election under Code Sections
125(a), 402(e)(3), 402(h)(l)(B), 402(k), or 457(b). For calendar
years beginning after December 31, 2000, compensation will also
include any elective amounts that are not includible in the gross
income of the employee by reason of Code Section 132(f)(4).
(2) For limitation years beginning on and after January 1, 2007,
compensation for the calendar year will also include compensation
paid by the later of 2½ months after an employee's severance from
employment or the end of the calendar year that includes the date
of the employee's severance from employment if:
(a) the payment is regular compensation for services during the
employee's regular working hours, or compensation for
services outside the employee's regular working hours
(such as overtime or shift differential), commissions,
bonuses or other similar payments, and, absent a severance
from employment, the payments would have been paid to
the employee while the employee continued in employment
with the employer; or
(b) the payment is for unused accrued bona fide sick, vacation
or other leave that the employee would have been able to
use if employment had continued.
(3) Back pay, within the meaning of Treasury Regulations
Section 1.415( c )-2(g)(8), shall be treated as compensation for the
limitation year to which the back pay relates to the extent the back
pay represents wages and compensation that would otherwise be
included under this definition.
D. Notwithstanding any other provision of law to the contrary, the Board may
modify a request by a Member to make a contribution to the System if the
amount of the contribution would exceed the limits provided in Code
Section 415 by using the following methods:
(1) If the law requires a lump sum payment for the purchase of service
credit, the Board may establish a periodic payment deduction plan
for the Member to avoid a contribution in excess of the limits
under Code Sections 415(c) or 415(n).
(2) If payment pursuant to subparagraph (1) will not avoid a
contribution in excess of the limits imposed by Code Section
415(c), the Board may either reduce the Member's contribution to
an amount within the limits of that section or refuse the Member's
contribution.
11. Additional Limitation on Pension Benefits.
Notwithstanding anything herein to the contrary:
A. The normal retirement benefit or pension payable to a Retiree who
becomes a Member of the System and who has not previously participated
in such System, on or after January 1, 1980, shall not exceed one hundred
percent (100%) of his Average Final Compensation. However, nothing
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contained in this Sect ion shall apply to supplemental retirement benefits or
to pension incr ea ses attributable to cost-of-living incr eas es or adjustments.
B. No Member of the System shall be allowed to receive a retirement bene fit
or pension which is in part or in whole based upon any service with
respect to which the Member is ah-eady receiving, or will rece iv e in the
futur e, a retirement benefit or pension from a different employer's
retirement system or plan. This r estriction does not apply to social
security benefits or federal benefits under Chapter 67 , Title 10, U.S. Code .
§ECTION 16. MINIMUM DISTRIBUTION OF BENEFITS.
1. General Rules
A. Effec tive Date. Effective as of January 1, 1989, the Plan will pay all
benefits in accordance with a good faith interpretation of the requirements
of Code Section 401(a)(9) and the regulations in effect und er that section,
as applicable to a governmental plan within the meaning of Code Section
414(d). Effective on and after January 1, 2 003, the Plan is also subject to
the specific provisions contained in this Section. The provisions of this
Section will apply for purposes of determining required minimum
distributions for calendar years beginning with the 2 003 calendar year.
B. Precedenc e. The requirements of this Section will take prece denc e over
any inconsistent provisions of the Plan.
C . TEFRA Section 242(b)(2) Elections. Notwithstanding the other
provisions of this Section other than this subsection l.C., distributions
may be made under a designation made before January 1, 1984, in
accordance with Section 242(b)(2) of the Tax Equity and Fiscal
Responsibility Act (TEFRA) and the provisions of the plan that related to
Section 242(b)(2) ofTEFRA.
2. Time and Manner of Distribution
A. Required Beginning Date. The Member's entire int erest will be
distributed, or begin to be distributed, to the Member no later than the
Member's required beginning date which shall not be lat er 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 ½) or the calendar year in
which the Member terminates employment with the City.
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 so le designated
beneficiary, then distributions to the surviving spouse will begin by
December 31 of the calendar y ear 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 attaine d age 70 ½, if lat er, as the surviving spouse e lects.
(2) If the Member's surviving spouse is not the Member's sole
designated beneficiary, then, distributions to the designated
beneficiary w ill begin by December 3 1 of the calenda r year
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3 .
C.
immediately following the c alendar year in which the Member
died .
(3) If there is no designated beneficiary as of September 30 of the year
following the year of the Member's death, the Member's entire
interest will be distributed by December 31 of the calendar year
containing the fifth anniversary of the Member's death.
( 4) If the Member's surviving spouse is the Member's sole designated
beneficiary and the surviving spouse dies after the Member but
before distributions to the surviving spouse begin , this subsection
2.B., other than subsection 2.B.(1), will apply as if the surviving
spouse were the Member.
For purposes of this subsection 2 .B., distributions are considered to
begin on the Member's required beginning date or, if subsection
2.B.( 4) applies, the date of distributions are required to begin to the
surviving spouse under subsection 2 .B.(1). If annuity payments
irrevocably commence to the Member before the Member's
required beginning date ( or to the Member's surviving spouse
before the date distributions are required to begin to the surviving
spouse under subsection 2.B.(1)), the date distributions are
considered to begin is the date distributions actually commence.
Death After Distributions Begin. If the Member dies after the required
distribution of benefits has begun, the remaining portion of the Member's
interest must be distributed at least as rapidly as under the method of
distribution before the Member's death.
D. Form of Distribution. Unless the Member's interest is distributed in the
form of an annuity purchased from an insurance company or in a single
sum on or before the required beginning date , as of the first distribution
calendar year distributions will be made in accordance with this Section.
If the Member's interest is distributed in the form of an annuity purchased
from an insurance company, distributions thereunder will be made in
accordance with the requirements of Section 401(a)(9) of the Code and
Treasury regulations. Any part of the Member's interest which is in the
form of an individual account described in Section 414(k) of the Code will
be distributed in a manner satisfying the requirements of Section 401(a)(9)
of the Code and Treasury regulations that apply to individual accounts.
Determination of Amount to be Distributed Each Year
A. General Requirements. If the Member's interest is paid in the form of
annuity distributions under the Plan, payments under the annuity will
satisfy the following requirements:
(1) The annuity distributions will be paid in periodic payments made
at intervals not longer than one year.
(2) The Member's entire interest must be distributed pursuant to
Section 6, Section 7, Section 9, or Section 10 (as applicable) and in
any event over a period equal to or less than the M e mb er's life or
the liv e s of the M ember and a designated benefic iary, or over a
period not extending beyond the life expectanc y of the Member or
of the Member and a d es ignated beneficiary. The life expectanc y
of the Member, the Member's spouse, or the Member's benefic iar y
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may not be recalculated after the initial determination for purposes
of determining benefits.
B. Amount Required to be Distributed by Required Beginning Date. The
amount that must be distributed on or before the Member's required
beginning date ( or, if the Member dies before distributions begin , the date
distributions are required to begin under Section 7 ) is the payment that is
required for one payment interval. The second payment need not be
made until the end of the next payment interval even if that payment
interval ends in the next calendar year. Payment intervals are the periods
for which payments are received, e.g., monthly. All of the Member's
benefit accruals as of the last day of the first distribution calendar year will
be included in the calculation of the amount of the annuity payments for
payment intervals ending on or after the Member's required beginning
date.
C. Additional Accruals After First Distribution Calendar Year. Any
additional benefits accruing to the Member in a calendar year after the first
distribution calendar year will be distributed beginning with the first
payment interval ending in the calendar year immediately following the
calendar year in which such amount accrues.
4. General Distribution Rules .
A. The amount of an annuity paid to a Member's beneficiary may not exceed
the maximum determined under the incidental death benefit requirement
of Code Section 401(a)(9)(G), and effective for any annuity commencing
on or after January 1, 2008, the minimum distribution incidental benefit
rule under Treasury Regulation Section 1.40l(a)(9)-6, Q&A-2.
B. The death and disability benefits provided by the Plan are limited by the
incidental benefit rule set forth in Code Section 401(a)(9)(G) and Treasmy
Regulation Section 1.401-1 (b )( 1 )(I) or any successor regulation thereto.
As a result, the total death or disability benefits payable may not exceed
25% of the cost for all of the Members' benefits received from the
retirement system.
5. Definitions
A. Designated Beneficiary. The individual who is designated as the
beneficiary under the Plan and is the designated beneficiary under Section
40l(a)(9) of the Code and Section 1.401(a)(9)-1, Q&A-4, of the Treasury
regulations .
B. Distribution Calendar Year. A calendar year for which a minimum
distribution is required. For distributions beginning before the Member's
death, the first distribution calendar year is the calendar year immediately
preceding the calendar year which contains the Member's required
beginning date. For distributions beginning after the Member's death, the
first distribution calendar year is the calendar year in which distributions
are required to begin pursuant to Section 7.
§ECTION 17. Ml§CELLANEOU§ PROVl§][ON§.
1. Interest of Members in System.
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All assets of the Fund are he ld in trust, and at no time prior to the satisfaction of
all liabilities under the System with respect to Retirees and Members and their Spouses or
Beneficiaries, shall any part of the corpus or income of the Fund be us ed for or diverted to any
purpose other than for their exc lusive benefit.
2 . No Reduction of Accrued Benefits.
No amendment or ordinance shall be adopted by the City Commission of the City
of City of Longwood which shall have the e ffect of reducing the then vested accrued benefits
of Members or a Member's Beneficiaries .
3. Qualification of System.
It is intended that the System will constitute a qualified public pension plan und er
the applicable provisions of the Code for a qualified plan under Code Sec tion 401(a) and a
governmental plan under Code Section 414(d), as now in effect or hereafter amended. Any
modification or amendment of the System may be made retroactively, if neces sary or
appropriate, to qualify or maintain the Sys t em as a Plan meeting the require ments of the
applicable provisions of the Code as now in effect or hereafter amend ed , or any other applicable
provisions of the U.S . federal tax laws, as now in effect or hereafter amended or adopted, and the
regulations issued thereund er.
4. Us e of Forfeitures.
Forfeitures arising from t erminations of service of Members shall serve only to
reduce future City contributions.
5. Prohibited Transactions.
Effective as of January 1, 1989, a Board may not engage in a transaction
prohibited by Code Section 503(b).
6. USERRA.
Effective December 12 , 1994 , notwithstanding any other provision of this System,
contributions, benefits and service credit with respect to qualified military service are governed
by Code Section 414(u) and the Uniformed Services Employment and Reemployment Rights Act
of 1994, as amended. To the extent that the definition of "Credited Service" sets forth
contribution requirements that are more favorable to the Member than the minimum compliance
requirements, the more favorable provisions shall app ly.
7. Vesting .
A. Member will be 100% vested in all benefits upon attainment of the Plan's
age and service requirements for the Plan's normal retirem ent benefit; and
B. A Member will be 100% vested in all accrued benefits, to the extent
funded, if the Plan is t er minated or experiences a complete discontinuance
of employer contributions.
8 . Electronic Forms.
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223
In those circumstances where a written election or consent is not r e quired by the
Plan or the Code, an oral, electronic, or telephonic form in lieu of or in addition to a written form
may be prescribed by the Board. However, where applicable, the Board shall comply with
Treas. Reg. § l.401(a)-21.
9. Compliance with Chapter 175 or 185, Florida Statutes.
It is intended that the System will continue to qualify for funding under Section
175.101 or 185.08, Florida Statutes. Accordingly, unless otherwise required by law, any
provision of the System which violates the requirements of Chapter 175 or 185, Florida Statutes,
as amended from time to time, shall be superseded by and administered in accordance with the
requirements of such chapter.
§ECTION 18 . REPEAL OR TERMINATION OF SY§TEM.
1. This ordinance establishing the System and Fund, and subsequent ordinances
pertaining to said System and Fund, may be modified , terminated, or amended, in whole or in
part; provided that if this or any subsequent ordinance shall be amended or repealed in its
application to any person benefitting hereunder, the amount of benefits which at the time of any
such alteration, amendment, or repeal shall have accrued to the Member or Beneficiary shall not
be affected thereby.
2. If this ordinance shall be repealed, or if contributions to the System are
discontinued or if there is a transfer, merger or consolidation of government units, services or
functions as provided in Chapter 121, Florida Statutes, the Board shall continue to administer the
System in accordance with the provisions of this ordinance, for the sole benefit of the then
Members, any Beneficiaries then receiving retirement allowances, and any future persons
entitled to receive benefits under one of the options provided for in this ordinance who are
designated by any of said Members. In the event of repeal, discontinuance of contributions, or
transfer, merger or consolidation of government units, services or functions, there shall be foll
vesting ( 100%) of benefits accrued to date of repeal and such benefits shall be nonforfeitable.
3. The fund shall be distributed in accordance with the following procedures:
A. The Board shall determine the date of distribution and the asset value
required to fund all the nonforfeitable benefits after taking into account the
expenses of such distribution. The Board shall inform the City if
additional assets are required, in which event the City shall continue to
financially support the Plan until all nonforfeitable benefits have been
funded.
B. The Board shall determine the method of distribution of the asset value,
whether distribution shall be by payment in cash, by the maintenance of
another or substituted trust fund, by the purchase of insured annuities, or
otherwise, for each Police Officer or Firefighter entitled to benefits under
the plan as specified in subsection C.
C. The Board shall distribute the asset value as of the date of termination in
the manner set forth in this subsection, on the basis that the amount
required to provide any given retirement income is the actuarially
computed single-sum value of such retirement income, except that if the
method of distribution determined under subsection B. involves the
purchase of an insured annuity, the amount required to provide the given
retirement income is the single premium payable for such annuity. The
actuarial single -sum valu e may not be less than the Police Officer 's or
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Firefighter's Accumulated Contributions to the Plan, with interest if
provided by the Plan, less the value of any plan benefits previously paid to
the Police Officer or Firefighter.
D. If there is asset value remaining after the full distribution specified in
subsection C., and after the payment of any expenses incurred with such
distribution, such excess shall be returned to the City, less return to the
State of the State's contributions, provided that, if the excess is less than
the total contributions made by the City and the State to date of
termination of the Plan, such excess shall be divided propo1iionately to the
total contributions made by the City and the State.
E. The Board shall distribute, in accordance with subsection B., the amounts
determined under subsection C.
If, after twenty-four (24) months after the date the Plan terminated or the date the Board
received written notice that the contributions thereunder were being permanently discontinued,
the City or the Board of the Fund affected has not complied with all the provisions in this
Section, the Florida Depa1iment of Management Services will effect the termination of the Fund
in accordance with this Section.
§ECTION 19. DOMESTIC RELATION§ ORDERS; RETIREE DIRECTED
PAYMENT§; EXEMPTION FROM EXECUTION AND NON-A§§IGNABILITY.
1. Domestic Relations Orders.
A. Prior to the entry of any domestic relations order which affects or purp01is
to affect the System's responsibility in connection with the payment of
benefits of a Retiree, the Member or Retiree shall submit the proposed
order to the Board for review to determine whether the System may
legally honor the order.
B. If a domestic relations order is not submitted to the Board for review prior
to entry of the order, and the System is ordered to take action that it may
not legally take, and the System expends administrative or legal fees in
resolving the matter, the Member or Retiree who submits such an order
will be required to reimburse the System for its expenses in connection
with the order.
2. Retiree Directed Payments.
The Board may, upon written request by a Retiree or by a dependent, when
authorized by a Retiree or the Retiree's Beneficiary, authorize the System to withhold from the
monthly retirement payment those funds that are necessary to pay for the benefits being received
through the City, to pay the certified bargaining agent of the City, to make payment to
insurance companies for insurance premiums as permitted by Chapters 175 and 185, Florida
Statutes and to make any payments for child support or alimony.
3. Exemption from Execution, Non-Assignability.
Except as otherwise provided by law, the pensions, annuities, or any other
benefits accrued or accruing to any person under the provisions of this ordinance/resolution and
the Accumulated Contributions and the cash securities in the Fund created under this
ordinance/resolution are hereby exempted from any state, county or municipal tax and shall not
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be subject to execution , attaclunent, garnislunent or any legal process whatsoever and shall be
unassignable.
SECTION 20. PENSION VALIDITY.
The Board shall have the power to examine into the facts upon which any pension shall
heretofore have been granted under any prior or existing law, or shall hereafter be granted or
obtained erroneously, fraudulently or illegally for any reason. The Board is empowered to
purge the pension rolls or correct the pension amount of any person heretofore granted a pension
under prior or existing law or any person hereafter granted a pension under this ordinance if the
same is found to be erroneous, fraudulent or illegal for any reason; and to reclassify any person
who has heretofore under any prior or existing law been or who shall hereafter under this
ordinance be erroneously, improperly or illegally classified. Any overpayments or
underpayments shall be corrected and paid or repaid in a reasonable manner determined by the
Board.
SECTION 21. FORFEITURE OF PENSION.
1. Any Member who is convicted of the following offenses committed prior to
Retirement, or whose employment is terminated by reason of his admitted commission, aid or
abetment of the following specified offenses, shall forfeit all rights and benefits under this
System, except for the return of his accumulated contributions as of the date of termination.
Specified offenses are as follows:
A. The committing, aiding or abetting of an embezzlement of public funds;
B. The committing, aiding or abetting of any theft by a public officer or
employee from employer;
C. Bribery in connection with the employment of a public officer or
employee;
D. Any felony specified in Chapter 838, Florida Statutes;
E. The committing of an impeachable offense;
F. The conunitting of any felony by a public officer or employee who
willfully and with intent to defraud the public or the public agency, for
which he acts or in which he is employed, of the right to receive the
faithful performance of his duty as a public officer or employee, realizes
or obtains or attempts to obtain a profit, gain, or advantage for himself or
for some other person tlu·ough the use or attempted use of the power,
rights, privileges, duties or position of his public office or employment
position; or
G. The conunitting on or after October 1, 2008, of any felony defined in
Section 800.04, Florida Statutes, against a victim younger than sixteen
(16) years of age, or any felony defined in Chapter 794, Florida Statutes,
against a victim younger than eighteen (18) years of age, by a public
officer or employee tlu·ough the use or attempted use of power, rights ,
privileges, duties, or position of his or her public offic e or employment
position.
2. Conviction shall be defined as an adjudication of guilt by a court of competent
jurisdiction; a plea of guilty or a nolo contendere ; a jury verdict of guilty when adjudication of
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guilt is withheld and the accused is placed on probation; or a conviction by the Se nat e of an
impeachable offense.
3. Comt shall be defmed as any state or federal comt of competent jurisdiction
which is exercising its jurisdiction to consider a proceeding involving the alleged commission of
a specified offense. Prior to forfeiture, the Board shall hold a hearing on which notice shall be
given to the Member whose benefits are being considered for forfeitur e. Sa id Member shall be
afforded the right to have an attorney present. No formal rules of evidence shall apply, but the
Member shall be afforded a full opportunity to present his case against forfeiture.
4. Any Member who has received benefits from the System in excess of his
Accumulated Contributions after Member's rights were forfeited shall be required to pay back to
the Fund the amount of the benefits received in excess of his Accumulated Contributions. The
Board may implement all legal action necessary to recover such funds.
§ECTION 22. CONVICTION AND FORFEITURE; FALSE, MISLEADING OR
FRAUDULENT STATEMENTS.
1. It is unlawful for a person to willfully and knowingly make, or cause to be made,
or to assist , conspire with, or urge another to make, or cause to be made , any false, fraudulent , or
misleading oral or written statement or withhold or conceal material information to obtain any
benefit from the System.
2. A person who violates subsection 1 commits a misdemeanor of the first degree,
punishable as provided in Section 775.082 or Section 775.083, Florida Statutes.
3. In addition to any applicable criminal penalty, upon conviction for a violation
described in subsection 1, a Member or Beneficiary of the System may, in the discretion of the
Board, be required to forfeit the right to receive any or all benefits to which the person would
otherwise be entitled under the System. For purposes of this subsection, "conviction" means a
determination of guilt that is the result of a plea or trial, regardless of whether adjudication is
withheld.
§ECTION 23 . INDEMNIFICATION.
1. To the extent not covered by insurance contracts in force from time to time, the
City shall indemnify, defend and hold harmless members of the Board from all personal liability
for damages and costs, including court costs and attorneys' fees, arising out of claims, suits,
litigation, or threat of same, herein referred to as "claims", against these individuals because of
acts or circumstances connected with or arising out of their official duty as members of the
Board. The City reserves the right, in its sole discretion, to settle or not settle the claim at any
time, and to appeal or to not appeal from any adverse judgment or ruling, and in either event will
indemnify, defend and hold harmless any members of the Board from the judgment, execution,
or levy thereon.
2. This Section shall not be construed so as to relieve any insurance company or
other entity liable to defend the claim or liable for payment of the judgment or claim, from any
liability, nor does this Section waive any provision of law affording the City immunity from any
suit in whole or part, or waive any other substantive or procedural rights the City may have.
3. This Section shall not apply nor shall the City be responsible in any manner to
defend or pay for claims arising out of acts or omissions of members of the Board which
constitute felonies or gross malfeasance or gross misfeasance in office.
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SECTION2~. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER
DISTRIBUTIONS; ELIMINATION OF MANDATORY
DISTRIBUTIONS.
1. Rollover Distributions.
A. General.
This Section applies to distributions mad e on or after January 1, 2 00 2.
Notwithstanding any provision of the Syst em to the contrary that would
otherwise limit a distributee1s e lection under this Section , a distributee
may elect, at the time and in the manner prescribed by the Board, to hav e
any portion of an eligible rollover distribution paid directly to an eligible
r etirement plan specified by the distributee in a direct rollover.
B. Definitions.
(1) Eligible Rollov er Distribution: An e li g ible rollov er distribution is
any distribution of all or any portion of the balanc e to the credit of
the distributee, except that an eligible rollov er distribution does not
include: any distribution that is one of a series of substant ially
equal periodic payments (not less frequ ently than annually) made
for the life ( or life expectancy) of the distributee or the joint lives
( or joint life expectancies ) of the distributee and the distributee1s
designated Beneficiary, or for a specified p eriod of ten (10) years
or more; any distribution to the extent such distribution is r equired
under section 401(a)(9) of the Code and the pmtion of any
distribution that is not includible in gross income. Effective
January 1, 2002, any po1tion of any distribution which would be
includible in gross income as after-tax employee contributions will
be an eligible rollover distribution if the distribution is made to an
individual retirement account described in section 408(a); to an
individual r etirement annuity described in section 408(b ); to a
qualified defined contribution plan described in section 401(a) or
403(a) that agrees to separately account for amounts so transferre d
(and earnings thereon), including separately accounting for the
po1tion of such distribution which is includible in gross income
and the pmtion of such distribution which is not so includible; or
on or aft er January 1, 2007, to a qualifi ed defined benefit plan
described in Code Section 401(a) or to an annuity contract
described in Code Section 403(b), that agre es to separately account
for amounts so transferred (and earnings th ereon), including
separately accounting for the po1tion of the distribution that is
includible in gross income and the portion of the distribution that is
not so includible.
(2) Eligible R etirement Plan: An eligible retirement plan is an
individual retirement account described in section 408(a) of the
Code; an individual retirement annuity described in section 408(b)
of the Code; an ammity plan described in section 403(a) of the
Code; effective January 1, 2 002 , an eligible deferre d compensation
plan described in section 457(b) of the Co de which is maintained
by an e ligible emplo ye r describ e d in sectio n 457 (e)(l)(A ) of the
Code and whic h agrees to separately acco unt for amounts
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transferred into such plan from this plan; effective January 1, 2002,
an annuity contract described in section 403(b) of the Code; a
qualified trust described in section 401(a) of the Code; or effectiv e
January 1, 2008, a Roth IRA described in Section 408A of the
Code, that accepts the distributee 's eligible rollover distribution.
This definition shall apply in the case of an eligible rollover
distribution to the surviving Spouse.
(3) Distributee: A distributee includes an employee or former
employee. It also includes the employee's or former employee's
surviving spouse and the employee's or former employee's spouse
or former spouse. Effective January 1, 2007, it fmther includes a
nonspouse beneficiary who is a designated beneficiary as defined
by Code Section 401(a)(9)(E). However, a nonspouse beneficiary
may rollover the distribution only to an individual retirement
account or individual retirement annuity established for the
purpose of receiving the distribution and the account or annuity
will be treated as an "inherited" individual retirement account or
annuity
(4) Direct Rollover: A direct rollover is a payment by the plan to the
eligible retirement plan specified by the distributee.
2. Rollovers or Transfers into the Fund.
On or after January 1, 2002, the System will accept, solely for the purpose of
purchasing Credited Service as provided herein, permissible Member requested transfers of
funds from other retirement or pension plans, Member rollover cash contributions and/or direct
cash rollovers of distributions made on or after January 1, 2002, as follows:
3.
A. Transfers and Direct Rollovers or Member Rollover Contributions from
Other Plans. The System will accept either a direct rollover of an eligible
rollover distribution or a Member contribution of an eligible rollover
distribution from a qualified plan described in section 401(a) or 403(a) of
the Code, from an annuity contract described in section 403(b) of the Code
or 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. The System
will also accept legally permissible Member requested transfers of funds
from other retirement or pension plans .
B. Member Rollover Contributions from IRAs . The system will accept a
Member rollover contribution of the portion of a distribution from an
individual retirement account or annuity described in section 408(a) or
408(b) of the Code that is eligible to be rolled over.
Elimination of Mandatory Distributions .
Notwithstanding any other provision herein to the contrary, in the event this Plan
provides for a mandatory (involuntary) cash distribution from the Plan not otherwise required by
law, for an amount in excess of one-thousand dollars ($1,000.00), such distribution shall be made
from the Plan only upon written request of the Member and completion by the Member of a
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written election on forms designat ed by the Board, to e ither receive a cash lump sum or to
rollover the lump sum amount.
SECTION 25. FAMILY AND MEDICAL LEAVE ACT.
The fractional parts of the twelve (12) month period ending each March 1 that a M ember
is on leave without pay from the City pursuant to the Family and Medical Leave Act (FMLA)
shall be added to his Credited Service provided that:
1. The Member contributes to the Fund the sum that he would have contributed,
based on his Salary and the Member contribution rate in effect at the time that the Credited
Service is requested, had he been a Member of the System for the years or fractional parts of
years for which he is requesting credit plus amounts actuarially determin e d such that the
crediting of service does not result in any cost to the Fund plus payment of costs for all
professional services rendered to the Board in connection with the purchase of years of Credited
Service .
2. The request for Credited Service for FMLA leave time for the twelve (12) month
period prior to each March 1 and payment of professional fees shall be made on or be fore March
31.
3. Payment by the Member of the required amount shall be made on or before April
30 for the preceding twelve (12) month period ending March 1 and shall be made in one (1) lump
sum payment upon receipt of which Credited Service shall be issued.
4.
vesting.
Credited Service purchased pursuant to this Section shall not count toward
SECTION 26 . MILITARY SERVICE PRIOR TO EMPLOYMENT.
The time that a Police Officer or Firefighter serves or has served on active duty in the
military service of the Armed Forces of the United States, the United States Merchant Marine or
the United States Coast Guard, voluntarily or involuntarily and honorably or under honorable
conditions, prior to first and initial employment with the City Police Department or Fire
Department shall be added to his years of Credited Service provided that :
1. The Member contributes to the Fund the sum that he would have contributed,
based on his Salary and the Member contribution rate in effect at the time that the Credited
Service is requested, had he been a Member of the System for the time for which he is requesting
credit plus amounts actuarially determined such that the crediting of service does not result in
any cost to the Fund plus payment of costs for all professional services rendered to the Board in
connection with the purchase of years of Credited Service .
2. Multiple requests to purchase Credited Service pursuant to this Section may be
made at any time prior to Retirement.
3. Payment by the Member of the required amount shall be made within six (6)
months of his request for credit, but not later than the retirement date, and shall be made in one
(1) lump sum payment upon receipt of which Credited Service shall be given.
4. The maximum credit under this Section, when combined with Credited Se rvice
purchased for prior police or firefighter service with an employer other than the City of
Longwood shall be five (5) years.
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5. Credited Service purchased pursuant to this Section shall count for all purposes,
except vesting and eligibility for not-in-line of duty disability benefits.
SECTION 27. PRIOR POLICE OR FIRE SERVICE.
Unless otherwise prohibited by law, and except as provided for in Section 1, the time that
a Member previously served as a full-time Police Officer or Firefighter with the City during a
period of previous employment and for which p eriod Accumulated Contributions were
withdrawn from the Fund, or the time that a Member served as a Police Officer for any other
municipal, county or state law enforcement department or as a Firefighter for any other
municipal, county, state or special district fire department in the State of Florida shall be added
to his years of Credited Service provided that:
1. The Member contributes to the Fund the sum that he would have contributed,
based on his Salary and the Member contribution rate in effect at the time that the
Credited Service is requested, had he been a Member of the System for the time
for which he is requesting credit plus amounts actuarially determined such that the
crediting of service does not result in any cost to the Fund plus payment of costs
for all professional services rendered to the Board in connection with the purchase
of years of Credited Service.
2. Multiple requests to purchase Credited Service pursuant to this Section may be
made at any time prior to R etirement.
3. Payment by the Member of the required amount shall be made within six (6)
months of his request for credit, but not later than the retirement date, and shall be
made in one (1) lump sum payment upon receipt of which Credited Service shall
be given.
4. The maximum credit under this Section for service other than with the City of
Longwood when combined with Credited Service purchased for Military Service
Prior to Employment shall be five (5) years of Credited Service and shall count
for all purposes, except vesting and eligibility for not-in-line of duty disability
benefits. There shall be no maximum purchase of credit for prior service with
the City of Longwood and such credit shall count for all purposes, including
vesting.
5. In no event, however, may Credited Service be purchased pursuant to this Section
for prior service with any other municipal, county or state law enforcement
department or special district fire department, if such prior service forms or will
form the basis of a retirement benefit or pension from a different employer's
retirement system or plan as set fo1th in Section 15, subsection 1 l.B.
6 . For purposes of determining credit for prior service as a Firefighter as provided
for in this Section, in addition to service as a Firefighter in this State, credit may
be given for federal, other state, county, or municipal service if the prior service is
recognized by the Division of State Fire Marshal, as provided under Chapter 633 ,
Florida Statutes, or the Firefighter provides proof to the Board that his service is
equivalent to the service required to meet the definition of a Firefighter under
Section 1.
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7. For purposes of determining credit for prior service as a Police Officer as
provided for in this Section, in addition to service as a Police Officer in this State ,
credit may be given for federal, other state, county, or municipal service if the
prior service is recognized by the Criminal Justice Standards and Training
Commission within the Department of Law Enforcement, as provided under
Chapter 943, Florida Statutes, or the Police Officer provides proof to the Board
that such service is equivalent to the service required to meet the definition of a
Police Officer under Section 1.
SECTION 28. REEMPLOYMENT AFTER RETIREMENT.
1. Any Retiree who is retired under this System, except for disability retirement as
previously provided for, may be reemployed by any public or private employer, except the City,
and may receive compensation from that employment without limiting or restricting in any way
the retirement benefits payable under this System. Reemployment by the City shall be subject
to the limitations set forth in this Section.
2. After Normal Retirement. Any Retiree who is retired under normal retirement
pursuant to this System and who is reemployed as a Police Officer or Firefighter after that
Retirement and, by virtue of that reemployment, is eligible to paiticipate in this System, shall
upon being reemployed discontinue receipt of benefits. Upon reemployment, the Retiree
shall be deemed to be fully vested and the additional Credited Service accrued during the
subsequent employment period shall be used in computing a second benefit amount attributable
to the subsequent employment period, which benefit amount shall be added to the benefit
determined upon the initial retirement to determine the total benefit payable upon final
Retirement. Calculations of benefits upon Retirement shall be based upon the benefit accrual
rate, Average Final Compensation, and Credited Service as of that date and the retirement benefit
amount for any subsequent employment period shall be based upon the benefit accrual rate,
Average Final Compensation (based only on the subsequent employment period), and Credited
Service as of the date of subsequent retirement The amount of any death or disability benefit
received as a result of a subsequent period of employment shall be reduced by the amount of
accrued benefit eligible to be paid for a prior period of employment. The optional form of
benefit and any joint pensioner selected upon initial retirement shall not be subject to change
upon subsequent retirement except as otherwise provided herein, but the Member may select a
different optional form and joint pensioner applicable to the subsequent retirement benefit.
3. Any Retiree who is retired under normal retirement pursuant to this System and
who is reemployed by the City after that Retirement and, by virtue of that reemployment is
ineligible to participate in this System, shall, during the period of such reemployment, continue
receipt of benefits during any subsequent employment period.
4. Reemployment of Terminated Vested Persons. Reemployed terminated vested
persons shall not be subject to the provisions of this Section until such time as they begin to
actually receive benefits. Upon receipt of benefits, terminated vested persons shall be treated as
normal Retirees for purposes of applying the provisions of this Section and their status as a
normal Retiree shall be determined by the date they elect to begin to receive their benefit.
SECTION 29. DEFINED RETIREMENT ACCUMULATION GROUP
OBLIGATION FUND (DRAGO).
A Member's normal retirement benefit shall be supplemented at the time of Retirement
with the amount attributable to the Member in the Defined Retirement Accumulation Group
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Obligation Fund ("Obligation"). To be eligible for this supplementary normal retirement
benefit, a Member must have reached normal retirement age (minimum of (i) age 50 and 10
years of Credited Service, or (ii) 25 years of Credited Service) in the active service of the City as
a Police Officer or Firefighter. In order to compute a Member's Obligation benefit upon
Retirement, at the end of each Plan Year, the number of years of Credited Service (including
fractional parts) will be determined for the Members as a whole. In the year a Member who is
eligible for an Obligation supplemental retirement benefit terminates service due to normal
retirement, a calculation of his Credited Service shall be determined as of the beginning of the
Plan Year. The retiring Member's Obligation supplementary retirement benefit shall be
determined by dividing the Member's Credited Service as of the beginning of his final Plan Year
of employment so calculated, by the total number of years of Credited Service for all plan
Members as calculated for the end of the prior Plan Year, and multiplying the resulting fraction
by the amount which is in the Obligation Fund at the beginning of the Plan Year of the Member's
final year of employment. However, notwithstanding anything to the contrary, the Member's
supplemental retirement benefit shall not be more than 2.5 multiplied by the Member's annual
normal retirement benefit based on the normal form.
The Obligation supplemental retirement benefit shall be funded by the St ate premium tax
monies in excess of the base amount as defined in Florida Law 99 -01 and increased by the cost
of plan amendments enacted after January 1, 1998 (constituting the "Obligation Fund") annually.
The value of the Obligation as of October 1, 2002 shall be $302,812.00, which is equal to the
value of the cumulative balance of additional premium tax revenues that are remaining to be
used to provide future minimum or "extra benefit" improvements. The Obligation contributions
received for each Plan Year shall be allocated interest at the interest rate specified in the most
recent actuarial valuation of the Plan. The value of the Obligation Fund will be determined at
the end of each Plan Year and the determination of the value for the previous year will be used to
calculate supplemental retirement benefits for any Member eligible for such benefits for the
following Plan Year. A Member's Obligation benefit shall be paid in a lump sum as soon as
practicable following the Member's Retirement, subject to Section 24 ., Direct Transfers of
Eligible Rollover Distributions; Elimination of Mandatory Distributions .
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CITY OF LONGWOOD POLICE OFFICERS' AND FIREFIGHTERS'
PENSION TRUST FUND
SUMMARY PLAN DESCRIPTION
November 1, 2018
IS YOUR BENEFICIARY FORM CURRENT? IN THE EVENT YOU D~ YOUR BENEFIT OR
CONTRIBUTIONS WILL BE DISTRIBUTED TO THE PERSON OR PERSONS D~IGNATED BY
NAME ON THE BENEFICIARY FORM ON FILE WITH THE PENSION PLAN. NO PROVISION IN
YOUR LAST WILL AND ~TAMENI WILL CHANGE TillS SEI.JOC:TION. PLEASE BE SURE THAT
YOUR BENEFICIARY FORM D~IGNA~ THE PERSON OR PEBSONS YOU INTEND TO RECEIVE
YOUR BENEFITS AND THAT YOU REVIEW TillS CHOICE IN THE EVENT OF A MAJOR LIFE
CHANGESUCHAS ADIVORCEOR THEDFATHOFYOURBENEFICIARY.
234
CITY OF LONGWOOD POLICE OFFICERS' AND FIREFIGHTERS'
PENSION TRUST FUND
SUMMARY PLAN DESCRIPTION
INTRODUCTION
The Board of Trustees of the City of Longwood Police Officers' and Firefighters' Pension
Trust Flllld is pleased to present this booklet which briefly explains the provisions of your Police
Officers' and Firefighters' Pension Plan As a participant in the plan, you are included in a program
ofbene:fits to help you meet your financial needs at retirement, or in the event of disability or death.
This booklet can assist you in preparing for your retirement and financial future. If you need
firrther information on any of the topics presented in this booklet, please contact any member of the
Board of Trustees. They will either answer questions you might have to help you tu1derstand your
benefits or otherwise get you an answer to your questions. We urge you to read and llllderstand this
booklet in order to become fumiliar with the benefits ofthe plan and how they contribute to your
financial security and how they will enrich your retirement years.
The infOrmation presented is on1y a summary of the pension plan (''Plan'') as provided in the
ordinances of the City of Longwood. If there are any conflicts between the information in this
booklet and the ordinances of the City of Longwood, the ordinances shall go vern. The provisions
of this Summary Plan Description shall not constitute a contract between the Member and the Board
of Trustees. The Plan shall be administered in accordance with state and federal law,
notwithstanding any provisions in this booklet or ordinances to the contrary. A copy of the
ordinance establishing the Plan can be obtained from the City Clerk's office, which is located at 175
W. Warren Avenue, Longwood, Florida 32750.
" 11 Date
Chairman, Board of Trustees, City of
Longwood Police Officers' and Firefighters'
Pension Trust Ftu1d
235
1. BOARD OF TRUSTEES AND PLAN ADMINISTRATION
A. Administration. The City of Longwood Police Officers' and Firefighters'
Pension Trust Fund is a defined benefit pension plan administered by a Board of Trustees which acts
as the administrator of the plan. The Board consists of 5 Trustees, 2 of whom shall be legal residents
of the City who are appointed by the City Corrnnission, 2 ofwhom are members of the System (one
of whom shall be a Police Officer member and one of whom shall be a firefighter member, who are
elected by a majority of the Police Officers or Firefighters, respectively, who are members of the
system) and a fifth Trustee who is chosen by a majority of the first 4 Trustees. Each Trustee serves
a 4 year term
B. The names and addresses of the current Trustees and the Plan Administrator
are attached to this Smnmary Plan Description as Exhibit "A". The Chairman of the Board is
designated as agent for the service oflegal process.
2. ELIGffiiLITYFOR PLAN MEMBERSIDP
Each person employed by the City Police or Fire Department as a :full-time Police
Officer or Firefighter becomes a member of the plan as a condition of his employment All Police
Officers and Firefighters are therefore eligtble for plan benefits as provided for in the plan document
and by applicable law. However, a new employee who is hired as the Police Chief or the Fire Chief
may, upon employment as Police Chief or Fire Chie~ notify the Board and the City, in writing, of
his election to not be a member of the system
3. PLAN BENEFITS
All claimS fur benefits under the plan shall be 'made in writing to the Board. It is your
responsibility to contact the plan and make a written application for benefits when you are eligible
to start receiving your benefit at your normal or early retirement date. You should ffie your
application fur benefits with the plan administrator at least 45 days prior to the date that benefits are
to commence. Benefit payments shall begin only after a written application is ffied and payments
shall not be made retroactive to your original eligil)ility date shollld you delay in applying for
benefits.
A. Normal Retirement Eligibility. You are eligtble for retirement upon the
attainment of age 50 and the completion of5 years of credited service, or the attainment of25 years
of credited service, regardless of age.
B. Amount ofN ormal Retirement Benefits. The amount of the normal retirement
benefit is based on your credited service and average final compensation:
"Credited Service" is generally your period of employment as a Police Officer
or Firefighter in the Police or Fire Department measured in years and parts of years. Credited service
will include credit for up to five years fur a break in employment for military service, pursuant to
conditions provided for under state or federal law, provided that you are reemployed within 1 year
of discha.rge under honorable conditions. Additional credited service time may also be available (See
subsection I. below).
"Average Final Compensation" is 1/12 of your average salary of~ 3 best
years of the last 10 years of credited service prior to your termination, retirement or death, or your
career average as a :full-time Police Officer or Firefighter, whichever is greater. A year is defined
as 12 consecutive months.
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"Salary" is:
(1) For Police Officer Members -the total compensation for services
rendered to the City as a Police Officer reportable on your W-2 form
plus all tax deferred, tax sheltered, or tax exempt items of income
derived from elective employee payroll deductions or salary
reductions, but excluding hnnp stun payments of accrued mused sick
or. annual leave and excluding payments for extra duty or special
detail work perfurmed on behalf of a second party employer.
(2) For Firefighter Members -the total compensation-for services
rendered to the City as a Firefighter reportable on your W-2 form plus
all tax deferred, tax sheltered, or tax exempt items of income derwed.
from elective employee payroll deductions or salary reductions, but
excluding lump stun payments of accrued mused sick or annual
leave. Where, as in the case of a vohmteer Firefighter, compensation
is derived from actual services rendered, salary shall be the total cash
compensation received yearly for such services, prorated on a
monthly basis, as defined inCh. 175.032, Florida Statutes.
With respect to both Police Officer and Firefighter Members, for
service earned after the date that a collective bargaining agreement is entered
into after July 1, 2011 (the "effective date''), Salary shall not include more
than 300 hours of overtime per fiscal year and shall also not include payments
:for accrued mused sick or annual leave. Provided however, in any event,
payments for overtime in excess of 300 hours per year accrued as of the
effective date and attributable to service earned prior to the effective date,
may still be included in Salary for pension purposes even if the payment is
not actually made mtil on or after the effective date. Additional hours
worked pursuant to the Fair Labor Standards Act (FLSA) shall not be deemed
to be overtime.
The normal retirement benefit is calculated by multiplying 3% times years of
credited service times your average final compensation: (3% x CS x AFC = normal retirement
benefit).
Normal retirement payments will commence on the first day of the month
coincident with or next fOllowing youi last day of employment. The benefit is paid to you for your
life, but you or your beneficiary shall receive at least 120 monthly benefit payments in any event.
Each vested Plan Member shall be entitled, at the Fmd's expense, to receive
two actuarial studies (one preliminary and one finaQ to estimate his or her retirement benefits. Any
additional studies shall be provided only at the Member's expense.
E. Defined Retirement Accumulation Group Obligation (DRAGO) Fund. In
addition to the benefits provided above, the plan provides for a supplemental benefit as fOllows:
(1) Your normal retirement· benefit shall be supplemented at the time of
retirement with the amomt attnbutable to you in the Defined
Retirement Accumulation Group Obligation Fmd ("Obligation''). To
be eligible for this supplementary normal retirement benefit, you must
have reached normal retirement age (minirrnnn of (I) age 50 and 5
years of credited service, qr (ii) 25 years of credited service) in the
active service of the City as a Police Officer or Firefighter. In order
to compute your Obligation benefit upon retirement, at the end of
each plan year, the number of years of credited service (including
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237
:fractional parts) will be determined for the Members as a whole. In
the year you are eligtble for an Obligation supplemental retirement
benefit and terminate yom service due to normal retirement, a
calculation of yom credited service shall be determined as of the
beginning of the. plan year. Your Obligation supplementary
retirement benefit shall be determined by dividing yom credited
service as of the beginning of yom final plan year of employment so
calculated, by the total number of years of credited service for all plan
members as calculated fur the end of the prior plan year, and
multiplying the resulting fraction by the amount which is in the
Obligation Fund at the beginning of the plan year of yom final year
of employment. However, notwithstanding anything to the contrary,
yom supplemental retirement benefit shall not be more than 2.5
multiplied by yom annual normal retirement benefit based on the
normal form.
(2) The Obligation supplemental retirement benefit shall be fimded by
the State premium tax monies in excess of the base amount as defined
in Florida Law 99-01 and increased by the cost of plan amendments
enacted after January 1, 1998 (constituting the ''Obligation Fund')
annually. The Obligation contributions received for each plan year
shall be allocated interest at the interest rate specified in the most
recent actuarial valuation of the ·Plan The value of the Obligation
Fund will be determined at the end of each plan year and the
determination of the value fur the previous year will be used to
calculate supplemental retirement benefits for any Member eligtble
for such benefits for the fullowing plan year. Yom Obligation benefit
shall be paid in a lump sum as soon as practicable fuDowing yom
Retirement, subject to subsection 24., Direct Transfers of Eligible
Rollover Distributions; Elimination of Mandatory Distributions, of
the pension-plan document.
D. Optional Forms of Retirement. In lieu of the amount and form of retirement
income payable under normal retirement, you may elect to receive a retirement benefit in a d:iffurent
form so long as the form you elect is of equal actuarial value as the normal benefit. The optional
forms ofbenefits which are available are:
(1) A retirement income of a monthly amount payable to you for yom
lifetime only.
(2) A retirement income of a modified monthly amount, payable to you
dming yom lifetime and following yom death, 100%, 75%, 66 2/3%
or 50% of such monthly amount payable to a joint pensioner for his
lifetime.
(3) If you retire prior to the time at which social secmity benefits are
payable, you may elect to receive an increased retirement benefit until
such time as social secmity benefits shall be assumed to commence
and a reduced benefit thereafter in order to provide, to as great an
extent as possible, a more level retirement allowance dming the entire
period of retirement.
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238
E. Disability Retirement. You are considered disabled when you become totally
and permanently unable to perform useful and efficient service as a Police Officer or Firefighter.
A written application is made to the Board for a disability pension and the Board receives evidence
of the disability and decides whether or not the pension is to be granted. If the pension is granted,
the benefit amount shall be: ·
(1) If the injury or disease is service connected, a benefit equal to 2% of
your average final compensation multiplied by the total years of
credited service, but in any event, the minimum amount paid to you
shall be 50% of your Average Final Compensation
(2) If the injury or disease is not service connected, a benefit equal to 2%
of your average final compensation multiplied by the total years of
credited service, but in any event, the minimum amount paid to you
shall be 25% ofyour Average Final Compensation This non-service
connected benefit is qnly available if you have at least 10 years of
credited service.
Eligibility for disability benefits. Subject to (4) below, you must be an active
member of the plan on the date the Board determines your entitlement to a disability benefit.
(1)
(2)
(3)
(4)
Terminated persons, either vested or non-vested, are not eligible for
disability benefits.
If you vohmtarily terminate your employment either before or after
filing an application for disability benefits, you are not eligible for
disability benefits.
If you are terminated by the City for any reason other than for medical
reasons, either before or after you file an application for disability
benefits, you are not eligible for disability benefits.
The only exception to (1) above is:
(a) If you are terminated by the City for medical reasons and you
have already applied for disability benefits befure the medical
termination, or;
(b) If you are terminated by the City fur medical reasons and you
apply within 30 days after your medical termination date.
If either (4)(a), or (4)(b) above applies, your application will be
processed and :fully considered by the board.
Your disability benefit terminates upon the earlier of death, with 120 payments
guaranteed, or recovery. You may, however, select a ''life only" or 'joint and survivor" optional
form ofbenefit as descnbed above under "Optional Forms ofRetirement".
Your benefit will be reduced if you receive workers' compensation benefits
and your combined benefit exceeds 100% ofyour final salary. The pension benefit will be reduced
so that the total does not exceed 100%, except that the pension benefit shall not be reduced below
the greater of 42% of average final compensation or 2% of average final compensation times years
of credited service.
Any condition or impairment of health caused by hypertension or heart disease
resulting in death or total and pennanent disabilitY. is presumed to have been suffered in the line of
duty unless the contrary is shown by competent eVIdence; provided that you have success:fully passed
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239
a physical examination on entering into service, including cardiogram for Police Officer members,
and there is no evidence of the condition at that time.
For conditions diagnosed on or after January 1, 1996, if you suffer a condition
or impairment of health that is caused by hepatitis, :rreningococcal meningitis, or tuberculosis, which
results in total and permanent disability, it shall be presmned that the disability is in the line of duty,
unless the contrary is shown by competent evidence as provided for in Section 112.181, Florida
Statutes; provided that the statutory conditions have been :rret.
To receive disability benefits, you must establish to the satisfuction of the
Board, that such disability was not occasioned primarily by:
(1) Excessive or habitual use of any drugs, intoxicants or narcotics.
(2) Injury or disease sustained while willfully and illegally participating
in fights, riots or civil insurrections or while committing a crime.
(3) Injury or disease sustained while serving in any branch of the Armed
Forces.
(4) ~ury or disease sustained after your employment as a Police Officer
or Fire fighter with the City ofLongwood shall have terminated.
(5) For Police Officer members, rryury or disease sustained while
working for anyone other than the City and arising out of such
employ:rrent.
As a disabled pensioner, you are subject to periodic medical examinations as
directed by the Board to determine whether a disability continues. You may also be required to
submit state:rrents from your doctor, at your expense, confirming that your disability continues.
F. Death Before Retire:rrent. If you die prior to retirement from the Police or Fire
Department, your beneficiary shall receive the following benefit:
(1) Prior to Vesting or Eligibility for Retirement. If you were not
receiving monthly benefits or were not yet vested or eligible for
normal retirement, your beneficiary shall receive a refund of 100% of
your accumulated contnbutions, plus an irrnnediate $50,000.00 hnnp
smn payment.
(2) Deceased Members Vested or Eligrble for Retirement with Spouse as
Beneficiary. If you die and, at the date of your death were vested or
eligible for normal retirement, your spouse beneficiary shall be
entitled-to a benefit as follows: _
(a) If you were vested, but not eligible for normal retire:rrerit,
your spouse beneficiary shall receive a benefit payable for 10
years, beginning on the date that you would have been eligible
for normal retirement. The benefit shall be calculated as for
normal retirement based on your credited service and average
final compensation as of the date of your death. Your spouse
beneficiary may also elect to receive an actuarially reduced
irrnnediate benefit, payable for 10 years.
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240
(b) If you were eligible fur normal retirement, your spouse
beneficiary shall receive a benefit payable for 10 years,
beginning on the first day of the month following your death.
The benefit shall be calculated as for normal retirement based
on your credited service and average final compensation as of
the date of your death.
(c) Your spouse beneficiary may not elect an optional form of
benefit, however, the Board may elect to make a lump sum
payment if the total value of the benefit does not exceed
$1,000.00
(d) Your spouse beneficiary may, in lieu of any benefit provided
for in (a) or (b) above, elect to receive a refund of your
accumulated contributions.·
(e) If your spouse beneficiary commences receiving a benefit
under (a) or (b) above, but dies before all payments are made,
the actuarial value of the remaining benefit shall be paid to
the estate of the spouse beneficiary in a lump sum
(3) Deceased Members Vested or Elig~b le for Retirement with Non-
Spouse Beneficiary. If your beneficiary is not your spouse, the
benefits payable to your non-spouse beneficiary are the same as those
to a spouse beneficiary, however, the date of commencement of those
benefits may be required to be earlier, with the resulting reduction in
the amount.
(4) In addition to the benefits provided for in paragraphs (2) and (3)
above, your beneficiary shall receive an immediate $50,000.00 lump
sum payment. ·
G. Termination ofEmployment and Vesting. Ifyour employment is terminated,
either voluntarily or involuntarily, the following benefits are payable:
( 1) If you have less than 5 years of credited service upon termination, you
shall be entitled to a refimd of the money you have contributed or you
may leave it deposited with the plan.
(2) Ifyouhave 5 or more years ofcredited service upon termination, you
shall be entitled to a monthly retirement benefit. The benefit shall be
determined in the same manner as for normal retirement and shall be
based upon your credited service, average final compensation and the
benefit accrual rate as of the date of termination The benefit shall be
payable to you starting at your otherwise normal retirement date,
determined based upon your actual years of Credited Service,
provided you do not elect to withdraw your contributions and
provided you survive to your otherwise normal retirement date. If
you do not withdraw your accumulated contributions and do not
survive to your otherwise normal retirement date, your designated
beneficiary shall be entitled to a benefit as provided herein for a
deceased member, vested or eligible for retirement under Death
Before Retirement.
-The Internal Revenue Code provides that certain eligible lump sum
distributions from the pension plan may be directly rolled over into qualified individual retirement
accounts, annuities or certain other pension plans. A 20% withholding shall be required on taxable
portions of such lump sum distributions not directly transferred to a new custodian
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241
H. Reemployment After Retirement. If you retire under normal retirement and
wish to be reemployed by the city, you should be aware that your ability to continue to receive your
pension benefit upon reemployment may be restricted. While the plan may be pennitted to make
benefit payments to you if you are reemployed, in this event you may be subject to a 10% tax
penalty, which penalty may continue lllltil you attain age 59 ~. whether or not you continue to be
employed by the City. ·
I. Additional Credited Service. In addition to credited service actually earned
in the employment of the Police or Fire Department, you may also receive credited service as
fullows:
(1) 'Buy-Back" for Prior Police or Fire Service. The years or fractional
parts of years that you previously served as a Police Officer or
Firefighter with the City of Longwood during a period of previous
employment and fur which period accumu1ated contributions were
withdrawn from the plan shall be added to your years of credited
service provided that within the first 90 days of your reemployment
you pay into the plan the withdrawn contributions with interest. ·
It: after 90 days from your reemployment you have failed to purchase
credited service pursuant to the previous _paragraph or if you served
as a full-time paid Police Officer for any other municipa~ collllty or
state law enforcement department or as a Firefighter fur any other
municipa~ county, state or special district fire department, in the State
ofFlorida , you will receive credited service only if
(a) You contribute to the plan a sum equal to:
(i) the amollllt that you would have contributed to the
plan, based on your salary and the member.
contribution rate in effect at the time that the credited
service is requested, had you been a member of the
plan fOr the years or fractional parts of years fur which
you are requesting credit, plus
(n) an additional amollllt to be detennined by the Board's
actuary so that there is no cost to the plan in giving
you the additional years of credited service, plus
(ill) the amollllt charged by the actuary fur detennining the
amollllt you rrrust contnbute.
(b) Multiple requests to purchase credited service may be made
at any time prior to retirement.
(c) Payment of the required amollllt shall be made within 6
months of your request fur credit, but not later than your
retirement date, and shall be made in one 1mnp sum payment
upon receipt of which credited service shall be given
(d) The maximmn credit llllder this subsection for service other
than with the City of Longwood, when coinbined with
credited service purchased for Military Service Prior to
Employment shall be 5 years of credited service and shall
count fur all pmposes, except vesting and eliglbility for not-
in-line of duty disability bene·fits. There shall be no
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242
(2)
(3)
maximum purchase of credit for prior service with the City of
Longwood and such credit shall count for all purposes,
including vesting.
(e) In no event, however, may credited service be purchased
pursuant to this sub section for prior service with any other
municipa~ county or state Jaw enforcement department or
special district fire department, if such prior service forms or
will form the basis of a retirement benefit or pension from a
different employer's retirement system or plan
(f) In addition to service as a Firefighter in this State, credit may
be purchased in the same manner as provided above for
federal, other state, county or municipal service if the prior
service is recognized by the Division of State Fire. Marsha~ as
provided under Chapter 633, Florida Statutes, or you provide
proof to the Board that such service is equivalent to the
service required to meet the definition of a Firefighter ..
(g) In addition to service as a Police Officer in this State, credit
may be purchased in the same manner as provided above for
federa~ other state, county or municipal service if the prior
service is recognized by the Criminal Justice Standards and
Training Commission within the Department of Law
Enforcement, as provided under Chapter 943, Florida
Statutes, or you provide proof to the Board that such service
is equivalent to the service required to meet the definition of
a Police Officer. ·
"Buy-Back" ofTime Lost Due to Absences Authorized by the Family
and Medical Leave Act. If you are absent on unpaid leave under the
Family & Medical Leave Act, you may purchase lost credited service
by making an actuarially determined contribution to the plan, such
that there is no cost to the plan in allowing such credited service,
within strict time periods provided for in the plan document.
''Buy-Back" for Military Service Prior to Employment. The years or
fractional parts of years that you serve or have served on active duty
in the military service ofthe Armed Forces ofthe United States, the
United States Merchant Marine or the United States Coast Guard,
voluntarily or involuntarily and honorably or under honorable
conditions, prior to first and initial employment with the City Police
or Fire Department shall be added to your years of credited service
provided that:
(a) You contribute to the plan a sum equal to:
(i) the amount that you would have contributed to the
plan, based on your salary and the member
contribution rate in effect at the time that the credited
service is requested, had you been a member of the
plan for the years or fractional parts of years for which
you are requesting credit, plus
(ii) an additional amount to be determined by the Board's
actuary so that there is no cost to the plan in giving
you the additional years of credited service, plus
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243
(4)
(b)
(c)
(d)
(fu) the ammmt charged by the actuary fur determining the
amount you must contribute.
Multiple requests to purchase credited service may be-made
at any time prior to retirement.
Payment of the required amount shall be made within 6
months of your request for credit, but not later than your
retirement date, and shall be made in one lump sum payment
upon receipt of which credited service shall be given
The maximum credit under this subsection, when combined
with credited service purchased fur prior police officer or
:firefighter service with an employer other than the City of
Longwood shall be 5 years and shall count fur all pmposes
except vesting and eligibility for not-in-line of duty disability
benefits.
Rollovers or Transfers ofFunds to Purchase Service. In the event you
are eligible to purchase additional credited service as provided above,
you may be eligible to rollover or transfer fimds from another
retirement program in which you participate (traditional IRA,
deferred compensation plan maintained by a government employer
457 plan, 40lk plan, profit sharing plan, defined benefit plan, money
purchase plan, annuity plan or tax sheltered annuity) in order to pay
all or part of the cost of purchasing such additional credited service.
J. Contributions and Funding. The City is paying the portion of the cost of the
pension plan over and above your contributions and all or a portion of the amounts received from
the state insurance rebates, pursuant to a mutual consent agreement between the City and the Unions.
You contribute 1% of your salary to the plan Your contribution will be excluded from your gross
income fur withholding pmposes so you will realize income tax benefits.
K. Maximum Benefits. In no event will the annual benefits paid from this plan
exceed $220,000 annually, subject to certain cost of living adjustments and actuarial reductions,
under certain circumstances, prior to age 62 as set forth in Section 415 of the Internal Revenue Code.
I
Ifyou began participation for the first time on and after January 1, 1980, you
cannot receive a benefit in excess of 100% of your average final compensation If you began
participation prior to this date, you are not subject to the 1 00% limitation
L. Forfeiture ofPension If you are convicted of the certain crimes listed in the
plan docmnent committed prior to retirement, or if your employment is terminated by reason of your
admitted commission, aid or abetment of these crimes, you shall forfeit all rights and benefits under
the plan, except fur the return of your contributions as of the date of your termination
M. Conviction and Forfeiture; False, Misleading or Fraudulent Statements. It
is unlawful for you to willfulo/ and knowingly make, or cause to be made, or to assist, conspire with,
or urge another to make, or cause to be made, any·fulse, fraudulent, or misleading oral or written
statement or withhold or conceal material infOrmation to obtain any benefit from the plan
If you violate the previous paragraph, you commit a misdemeanor of the first
degree, punishable as provided in Section 775.082 or Section 775.083, Florida Statutes.
In addition to any applicable criminal penahy, upon conviction for a violation
descnbed above, you or your beneficiary may, in the discretion of the Board, be required to furfeit
the right to receive any or all benefits to which you would otherwise be entitled under the plan For
10
244
purposes of this subsection, "conviction" means a detennination of guilt that is .the result of a plea
or tria~ regardless of whether adjudication is withheld.
N. Claims Procedure Before the Board. You may request, in writing, that the
Board review any claim fur benefits tmder the plan The Board will review the case and enter a
decision as it deems proper within not more than 180 days from the date of the receipt of such
written request, or in the case of a disability claim, from receipt of a medical release and completed
interrogatories. The time period may be extended if you agree to the extension
The Board's decision on your claim will be contained in an order which will
be in writing and will include:
(1)
(2)
(3)
The specific reasons for the Board's action;
A description of any additional infOrmation that the Board feels is
necessary for you to perfect your claim;
An explanation of the review procedure next open to you which
includes a formal evidentiary heamg.
4. NON-FORFEITURE OF PENSION BENEFITS
A. Liquidation ofPension Ftmd Assets. In the event ofrepea~ or if contributions
to the plan are discontinued by the City, there will be a :full vesting ofbenefits accrued to date of
repeal
B. Interest of Members in Pension Fund. At no time prior to the satisfuction of
all liabilities tmder the plan shall any assets of the plan be used for any purpose other than for the
Police Officers and Firefighters' exclusive benefit. In any event, your contributions to the plan are
non-forfeitable.
5. VESTING OF BENEFITS
Your retirement benefits are vested after 5 years of credited service.
6. APPLICABLE LAW
The plan is governed by certain federal, state and local laws, including, but not
limited to the following:
A.
B.
c.
D.
E.
Internal Revenue Code and amendments thereto.
Chapters 175 and 185, Florida Statutes, 'Municipal Police Officers' and
Firefighters' Retirement Trust Ftmds".
Part VII, Chapter 112, Florida Statutes, "Actuarial Sotmdness of Retirement
Systems".
Ordinances of the City ofLongwood.
Administrative rules and regulations adopted by the Board of Trustees.
7. PLAN YEAR AND PLAN RECORDS
The plan year begins on October 1 of each year and ends on September 30 of the
following year. All records of the plan are maintained on the basis of the plan year.
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245
8. APPLICABLE PROVISIONS OF COLLECTIVE BARGAINING
AGREEMENTS
There are cUrrent collectiVe bargaining agreements between the City and the Police
Officers and Firefighters. Pension benefits are bargainable.
9. FINANCIAL AND ACTUARIAL INFORMATION
A. A report of pertinent financial and actuarial information on the solvency and
actuarial smmdness of the plan is attached as Exhibit 'B".
B. A copy of the detailed accmmting report of the plan's expenses fur the
previous fiscal year is available for review upon request to the Plan
Administrator. ·
C. A copy of the administrative expense budget for the plan, fur each fiscal year
is available for review upon request to the Plan Administrator.
10. DIVORCE OR DISSOLUTION OF MARRIAGE
Federal and state law provides certain restrictions regarding the payment of your
pension benefits in the event of your divorce or dissolution of marriage. Immediately upon your
involvement in such a legal proceeding, you should provide a member of the Board with the name
and address of your attorney or your name and address if you have no attorney. The Board's attorney
will then provide you or your attorney with infurrnation concerning the legal restrictions regarding
your pension benefits. . In addition, a copy of any proposed order must be submitted to the Board
prior to entry by the court. Faihrre to do so may require you to pay any expenses incurred by the
Board in correcting an improper court order. ·
11. EX-SPOUSES AS BENEFICIARY OR JOINT PENSIONER
The Florida Legislature has adopted Section 732.703, Florida Statutes. This law
nullifies the designation ofyour ex-spouse as a Beneficiary or Joint Annuitant I Joint Pensioner on
yourpensionplanretirementbenefits. This law went into effectonJuly 1, 2012.
After July 1, 2012, if you want your ex-spouse to be a beneficiary or joint
annuitant/joint pensioner fur your plan benefit, you will have to make that designation AFTER the
dissolution of marriage. If you currently have an ex-spouse as a beneficiary or joint annuitant/joint
pensioner, and want to keep this designation, you will have to designate the ex-spouse again after
July 1, 2012.
To reconfirm your current beneficiary, or to designate a new beneficiary, complete
a new Designation ofBeneficiary Form (PF-3).
To reconfirm your current joint annuitant/joint pensioner, or to designate a new joint
annuitant/joint pensioner (if authorized by the current plan provisions), indicate such change on a
Change or Confirmation of Designated Joint Anmritant or Joint Pensioner Form (PF-25). If
necessary, the plan administrator will submit the new furm to the actuary of the plan for recalculation
of your benefit. There may be a charge to you to make this change. .
To obtain either of the above furms, or if you have any questions, please contact your
plan administrator.
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12. EXCLUSION OF HEALTH INSURANCE PREMIUMS FROM INCOME.
When you retire because of disability or have worked to the date you are immediately
eligible for normal retirement (not early retirement), you can elect to exclude from income,
distributions made from your benefit that are used to pay the premiums for accident or health
insurance or long-term care insurance. The premitnn can be for coverage for you, your spouse, or
dependents. The distribution must Q.e made directly from the plan to the insurance provider using
pension form PF-22 wlrich authorizes the distribution (This form may be obtained from your plan
administrator) You can exclude from income th~ smaller of the ammmt of the insurance premitnns
or $3,000.00. You can only make this election for ammmts that would otherwise be included in your
income.
dmllongwoodlpfl08-21-18.spd
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247
EXIITBIT II A II
BOARD OF TRUSTEES.
The names and addresses ofthe members ofthe Board.ofTrustees are:
Chairman: Gregory J. Vanatta
Vice-
175 W. WarrenAvenue
Longwood,FL 32750
Chairman: Robert Redditt
175 W. WarrenAvenue
Longwood,FL 32750
Secretary: Robert Gibson
175 W. WarrenAvenue
Longwood,FL 32750
• Member: Kevin Little
175 W. WarrenAvenue
Longwood,FL 32750
Member: Johnnie Richardson
175 W.-WarrenAvenue
• Longwood, FL 32750
PLAN ADMINISTRATOR
Ms. Michelle Longo, CMC
City Clerk, City ofLongwood
Longwood Police Officers' and
Firefighters' Penion Trust Fund
175 W. WarrenAve.
Longwood, FL 327 50-4106
Business: 407-260-3446
mlongo@longwoodfl.org
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248
EXHIBIT B
City/Di~trict Name: Longwood
Current actuarial valuation date: 10/1/2015
Employee group(s) covered: ·· Pollee And Fire
Date prepared: 2/13/20.18
Number of plan participants: 91 GASB 67 Reporting
Actuarial Value of Plan Assets (AVA): $9,649,781 Discount Rate 9.08%
Actuarial Accrued Liability (AAL): $9,740,434 Total Pension Liability 6,795,670
Unfunded Accrued Liability (UAL):
Market Value of Plan Assets · 9,968,473.
$90,653 Net Pension Liability -3,172,803
Market Value of Plan Assets (MVA): $11,919,195 GASB 67 Funded Ratio 146.69%
MVA Funded Ratio (5-year history): Averages for all phms with 2015
currentactuarial valuation da_te
Current valuation 122.37%
1 yearprior 110.27%
2 years prior 108.12%
3 years prior 101.49%
4 years prior . 82.33%
Rate of Actuarial Value, Actual (2015 Plan Year) ··0,10%
Return: Market Value, Actual -0.08%
Assumed 7.00%
Funding requirement as percentage of payroll:· 21.85%•
Percentage ofpayroll contributed by employee: 1.00%
Benefit Formula Description:
· AFC Averaging Period (years):
3.00% X AFC X SC
3
Employees covered by Social Security? ·. Yes
Additional aCtuarial disclosures required by sectiori ·112.664, Florida Statutes:
Years
Market assets
Florida Value of Net sustain ..
Statute Discount Pension ·Plan Perision benefit
Chapter. Rate Liability Assets Liability payments
112.664(1 )(a) 9.08% 7,374,284: 9,649,781 -2,275,497 34.65
112.664(1.)(b) 7.08% 9,985,045 9,649,781' 335,264 24.30·.
. Valuation Basis 9.08% N/A N/A N/A 24.28
. . .
87.00%· *
88.76% *
83.76% *
81.15% *
69.97% *
5.62%
-0.01%
7.33%
.46.83% ..•.
5.8.9% **
Total . Total
Dollar· %of Pay
Contribution Contribution . . .
129,005 4.36
715,711 24.17
669,852 22.62
. Link to annual financial statements: https:I/Www.rol.frs.state.fl.us/forms/LOC5340436PDF1 0012015N1.pdf · ·
· *Adjusted by excluding plans from average whose Funded Ratios were not within two standard deviations from the mean
**Excludes plans with zero payroll
(For expianation ofterms, see glossary on page Z) ·
249
·.Actuarial Summai'Y Fact Sheet-Glossai'Y of Terms
Actuarial Value. of Plan Assets (AVA): Assets calculated under an asset valuation method smoothing the effects of
volatility in market value of assets. Used to determine employer contribution.
Actuarial Accrued Liability (AAL):
Unfunded Accrued Liability (UAL):
Portion ofPresent Value of Fully Projected Benefrts attributable to service
credit earned as of the current actuarial valuation date.
The difference between the actuarial accrued liability and the actuarial value
of assets accumulated to finance the obligation. ·
Market Val~e of Plan Assets (MVA): The fair market value of assets, including DROP accounts.
MVA Funded Ratio: Market Value of Plan Assets divided byActuarial Accrued Liability (GASB)
·Rate of Return (Assumed):
Funding requirement as
percentage of payroll:
·AFC:
SC:
Florida Statute Chapter:
Discount Rate:.
Total Pension Liability:
Net Pension Liability:
Years assets sustain benefit
payments:
Total Dollar Contribution:
Total% of Pay Contribution:
Annual financial statements:
. Assumed long-term rate of return on the pension fund assets.
Total R-equired Contribution (employer and employee) diyided by total
payroll of active participants
Average Final Compensation or some variant of compensation
(e.g., AME [Average Monthly Earnings], FAC .[Final Average
Compensation], FMC [Final Monthly Compensation] etc.)·
Service Credit
Section .112.664 ... Glossai'Y of Terms ·
112.664(1)(a)-uses mortality tables used in either otthe two most recently
published FRS valuation reports; with projection scale for mortality
improvement
112.664(1)(b)-uses same mortality assumption as 112.664(1)(a) but using
an assumed discount rate equal to 200 basis points (2.00%) less than
plan's .assumed rate of return.
Valuation Basis ... uses all the assumptions in the plan's valuation as of the
current actuarial valuation date; · · ·
Rate used to discount the liabilities: Typically the same as assumed rate of ·
return on assets. ·
Actuarial Accrued Liability measured using the appropriate assumptions as .
specified above and the Traditional Individual Entry Age Normal Cost
Total Pension Liability.minus Market Value of Plan Assets.
·Assuming no· future contributions from any source, the number of years the
market value of assets will sustain payment of expected retirement
benefits. The nL,Jmber of years will vary based ori the Florida Statute
Chapter assumption.
Required contribution from all sources (i.e., employee and sponsor).
Contribution_ will vary based on the Florida Statute Chapter assumption.
Total DollarContribution divided by total payroll of active participants
A report issued which covers a local government retirement system or plan .
to satisfy the financial reporting requirements of section 112.664(1), F.S.
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Page 1 of 3
RETIREMENT PLAN AND TRUST FOR THE FIREFIGHTERS AND POLICE OFFICERS OF
THE CITY OF LONGWOOD
SUMMARY PLAN DESCRIPTION
Plan Trustee
Florida Municipal Pension Trust Fund
Plan Administrator
Florida Municipal Pension Trust Fund
P.O. Box 1757
Tallahassee, FL 32302-1757
Plan
Plan representing the Chapter 175 Municipal Firefighters and Chapter 185 Municipal Police Officers
Pension Trust Fund
Effective Date
January 1, 1996
Plan Year
Twelve (12) month commencing on October 1st and ending September 30th.
Eligibility
All full-time firefighters and police officers when hired shall become a participant after the effective date.
Salary
Total cash remuneration, excluding overtime in excess of 300 hours per year after the effective date of
the first collective bargaining agreement that comes into effect after June 30, 2011, excluding payments
for extra duty or special detail work performed on behalf of a second party employer, and excluding lump
sum payments for accrued annual leave and sick leave; annual compensation in excess of $200,000 (as
indexed) is excluded in accordance with IRC s401(a)(17).
Credited Service
Total number of years and fractional parts of years of service as a Participant during which the Participant
made required contributions to the Plan omitting intervening years of fractional parts of years when such
Participant is not employed by the Employer.
Final Monthly Compensation
One-twelfth of the average salary of the three (3) best years of the last ten (10) years of credited service
prior to retirement, termination, or death, or the career average as fulltime Police Officer or Firefighter,
whichever is greater.
Purchase of Prior Service
Any time prior to retirement a participant can buy back past service for full-time services served as a
Police Officer or Firefighter with the City or any other Municipal, county or state law enforcement
department or special fire district in the State of Florida. Military service can also be purchased.
Normal Retirement Date
The first day of the month coincident with, or next following attainment of age 50 and 5 years of service or
earlier attainment of 25 years of service.
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Page 2 of 3
Normal Retirement Benefit
The Monthly retirement benefit shall be equal to the number of years of credited service multiplied by 3%
and multiplied by final monthly compensation.
Normal Form of Benefit
The normal form of benefit is a ten (10) year certain and life annuity.
Termination of Service Benefit
If a member terminates before completing 5 years of credited service all contributions are returned. After
the completion of 5 years of credited service, any member who elects to leave their contributions in the
fund will receive their accrued benefit at their normal retirement date.
Disability - (On-Duty)
Firefighter - A member deemed to be totally and permanently disabled from service connected injury or
disease will receive the greater of monthly pension equal to 50% of average monthly salary at the time of
disability or an amount equal to the accrued retirement benefit, but calculated with a 2% accrual rate.
Police Officer - A member deemed to be totally and permanently disabled from service connected injury
or disease will receive the greater of monthly pension equal to 50% of average monthly compensation as
of his disability retirement date or an amount equal to the accrued retirement benefit, but calculated with a
2% accrual rate.
Disability - (Off-Duty)
Firefighter - After ten years of service, a member deemed to be totally and permanently disabled from
non-service connected injury or disease will receive the greater of monthly pension equal to 25% of
average monthly salary at the time of disability or an amount equal to the accrued retirement benefit, but
calculated with a 2% accrual rate.
Police Officer - After ten years of service, a member deemed to be totally and permanently disabled from
non-service connected injury or disease will receive the greater of monthly pension equal to 25% of
average monthly salary at the time of disability or an amount equal to the accrued retirement benefit, but
calculated with a 2% accrual rate.
Death Benefit prior to Vesting
If a member dies prior to retirement and he is not vested, his beneficiary shall receive a refund of one
hundred percent (100%) of the members accumulated contributions. Additionally, a Lump Sum benefit of
$50,000.00 will be paid to the member’s beneficiary.
Death Benefit after Vesting
If a member dies prior to retirement and he is vested, his beneficiary shall receive a benefit payable for 10
years otherwise payable to the member. Additionally, a Lump Sum benefit of $50,000.00 will be paid to
the member’s beneficiary.
Employee Contributions
All participants contribute 1% of his salary.
Financial and Actuarial Information
Financial and Actuarial Information can be found at
http://www.dms.myflorida.com/human_resource_support/retirement/local_retirement_plans/local_retireme
nt_section/actuarial_summary_fact_sheets
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Page 3 of 3
Forfeiture of Pension
1. Any Member who is convicted of the following offenses committed prior to Retirement, or whose
employment is terminated by reason of his admitted commission, aid or abetment of the following
specified offenses, shall forfeit all rights and benefits under this System except for the return of
his accumulate contributions as of the date of termination. Specified offenses are as follow:
A. The committing, aiding or abetting of an embezzlement of public funds;
B. The committing, aiding or abetting of any theft by a public officer or employee from employer;
C. Bribery in connection with the employment of a public officer or employee;
D. Any felony specified in Chapter 838, Florida Statutes;
E. The committing of an impeachable offense;
F. The committing of any felony by a public officer or employee who willfully and with intent to
defraud the public or the public agency, for which he acts or in which he is employed, of the
right to receive the faithful performance of his duty as a public officer or employee, realizes or
obtains or attempts to obtain a profit, gain, or advantage for himself or for some other person
though the use or attempted use of the power, rights, privileges, duties or position of his
public office or employment position; or
G. The committing on or after October 1, 2008, of any felony defined in Section 800.04, Florida
Statutes, against a victim younger than sixteen (16) years of age, or any felony defined in
Chapter 794, Florida Statues, against a victim younger than eighteen (18) years of age, by a
public officer or employee through the use or attempted use of power, rights, privileges,
duties, or position of his or her public office or employment position.
2. Conviction shall be defined as an adjudication of guilt by a court of competent jurisdiction; a plea
of guilty or a nolo contendere; a jury verdict of guilty when adjudication of guilt is withheld and the
accused is places on probation; or a conviction by the Senate of an impeachable offense.
3. Court shall be defined as any state or federal court of competent jurisdiction which is exercising
its jurisdiction to consider a proceeding involving the alleged commission of a specified offense.
Prior to forfeiture, the Board shall hold a hearing on which notice shall be given to the Member
whose benefits are being considered for forfeiture. Said Member shall be afforded the right to
have an attorney present. No formal rules of evidence shall apply, but the Member shall be
afforded a full opportunity to present his case against forfeiture.
4. Any Member who has received benefits from the System in excess of his Accumulated
Contributions after member’s rights were forfeited shall be required to pay back the Fund the
amount of the benefits received in excess of his Accumulated Contributions. The Board may
implement all legal action necessary to recover such funds.
Conviction and Forfeiture: False, Misleading or Fraudulent Statements
1. It is unlawful for a person to willfully and knowingly make, or cause to be made, or to assist,
conspire with, or urge another to make, or cause to be made, any false, fraudulent, or misleading
oral or written statement to withhold or conceal material information to obtain any benefit from the
System.
2. A person who violates subsection1 commits a misdemeanor of the first degree, punishable as
provided in Section 775.082 or Section 775.083, Florida Statutes.
3. In addition to any applicable criminal penalty, upon conviction for a violation described in
subsection1, a Member or Beneficiary of the System may, in the discretion of the Board, be
required to forfeit the right to receive any or all benefits to which the person would otherwise be
entitled under the System. For purposes of the subsection, “conviction” means a determination of
guilt that is the result of a plea or trail, regardless of whether adjudication is withheld.
This summary was designed only to give you a brief description of the benefits
provided and does not include all the provisions or exclusions in the Plan
Document. Employees should not rely on this information in making retirement
decisions. If this outline disagrees with the Plan Document in any way, the Plan
Document will govern.
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00996298-1
SUMMARY PLAN DESCRIPTION
City of Winter Springs Retirement Plan
Winter Springs, Florida
Revised May 1, 2018
Prepared by:
James Linn, Esq.
Glenn Thomas, Esq.
Lewis, Longman, & Walker, P.A.
315 S. Calhoun St, Suite 830
Tallahassee, Florida 32301
(850) 222-5702
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00996298-1 ii
TABLE OF CONTENTS
(1) General ...........................................................................................................................1
(2) Identification of Plan ......................................................................................................1
(3) Type of Plan ...................................................................................................................1
(4) Plan Administrator .........................................................................................................1
(5) Trustee/Trust Fund .........................................................................................................1
(6) Hours of Service ............................................................................................................2
(7) Eligibility to Participate .................................................................................................3
(8) Employer’s Contribution ...............................................................................................3
(10) Normal Retirement Pension ...........................................................................................3
(11) Accrued Benefit .............................................................................................................5
(12) Vesting ...........................................................................................................................5
(13) When you Receive Your Accrued Benefit Under the Plan ............................................6
(14) Optional Forms of Payment. ..........................................................................................8
(15) Forfeiture of Certain Benefits ......................................................................................10
(16) Required Distributions .................................................................................................10
(17) Special Options After You Reach Normal Retirement Age ........................................11
(18) Death and Disability Benefits ......................................................................................11
(20) Claims Procedure .........................................................................................................12
(21) Retired Participant, Separated Participant with Vested Benefit, Beneficiary
Receiving .....................................................................................................................12
(22) Federal Income Taxation of Benefits Paid ...................................................................13
(23) Obtaining Additional Plan Information .......................................................................13
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00996298-1
SUMMARY PLAN DESCRIPTION
(1) General. The legal name, address and Federal employer identification number (“EIN”) of
the Employer are:
City of Winter Springs
1126 East State Road 434
Winter Springs, FL 32708
EIN 59-1026364
The Employer has established this retirement plan (“Plan”) to supplement your income upon
retirement. In addition to the retirement benefits, the Plan may provide benefits in the event of
your death or your termination of employment prior to Normal Retirement Age. If after reading
the summary you have any questions, please ask the Plan Administrator. We emphasize this
summary is a highlight of the more important provisions of the Plan. If there is a conflict between
a statement in the summary plan description and the Plan, the terms of the Plan control.
(2) Identification of Plan. The Plan is known as:
The City of Winter Springs Retirement Plan
The Plan year is the period on which the Plan maintains its records: October 1 through September
30.
(3) Type of Plan. The Plan is a defined benefit pension plan. Under this type of plan, a
participant who retires after reaching the Normal Retirement Date will receive a monthly pension
based on a formula that reflects years of service, average compensation and a benefit multiplier.
Section (10) explains the benefit formula.
(4) Plan Administrator. The Employer is the Plan Administrator. The Employer’s telep hone
number is (407) 327-1800. You may contact the City Manager or the Human Resource
Coordinator at the Employer’s address. The Plan Administrator is responsible for providing you
and other participants information regarding your rights and benefits under the Plan.
The name of the person designated as agent for the service of legal process upon the Plan is:
Kevin Smith
City Manager
City of Winter Springs
1126 East State Road 434
Winter Springs, FL 32708
(5) Trustee/Trust Fund. The Employer has appointed a Retirement Committee to act as
Trustee and assist in the administration of the Plan. The Retirement Committee has the
responsibility for making certain discretionary determinations under the Plan, and approving all
distribution and benefit payments from the trust fund to participants and beneficiaries. The
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00996298-1 2
Retirement Committee consists of the members of the Board of Trustees. The members of the
Retirement Committee may change from time to time. The names of the current members of the
Retirement Committee are listed on an Appendix at the end of this summary plan description.
The Board of Trustees’ address is:
The Board of Trustees of the City of
Winter Springs Retirement Plan
1126 East State Road 434
Winter Springs, FL 32708
(6) Hours of Service. The Plan and this summary plan description include references to hours
of service. For example, to advance on the vesting schedule, the Plan requires you to complete a
minimum number of hours of service during the plan year. The section covering vesting explains
this aspect of the Plan. However, hours of service has the same meaning for all purposes of the
Plan.
The Plan utilizes the “actual” method for crediting hours of service. Under the actual method, you
will receive credit for each hour for which the Employer pays you, directly or indirectly, or for
which you are entitled to payment, for the performance of your employment duties. You also will
receive credit for certain hours during which you do not work if the Employer pays you for those
hours, such as paid vacation. You will further receive credit for certain unpaid leaves of absence
authorized by the Employer under a uniform, nondiscriminatory policy under which the Employer
specifically credits hours of service for such unpaid leaves of absence.
If an employee’s absence from employment is due to maternity or paternity leave, the employee
will receive credit for unpaid hours of service related to his leave, not to exceed 501 hours. The
Plan administrator will credit these hours of service to the first period during which the employee
otherwise would incur a 1-year break in service as a result of the unpaid absence.
You can also purchase up to five years of service credit in increments of 12 months, to be used
only for the purpose of determining the amount of the Member’s benefit. The purchased service
will not count towards any vesting requirements. See Plan Administrator for details.
A Member who performs “Qualified Military Service” will receive credited service for all
purposes, including vesting, for the years or parts of a year the member performed such service.
“Qualified Military Service” includes voluntary or involuntary service in the armed forces of the
United States after separation from employment with the City, to perform training or service. To
receive credit, the following legal requirements apply, according to the Uniformed Services
Employment and Reemployment Rights Act (USERRA):
The Employee must return to his employment with the City within one (1) year after
military discharge or release from active service.
The Employee is entitled to reemployment under the provisions of USERRA.
The Employee must contribute the amount he or she would have contributed if employment
would have continued during the period he was absent due to Qualified Military Service.
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00996298-1 3
Contributions must be made by the earlier of a period equal to three (3) times the period of
absence or five (5) years.
The maximum amount of credited service for military service is five (5) years.
If an Employee dies on or after January 1, 2007 while performing Qualified Military
Service, the Employee’s beneficiaries are entitled to any benefits the Employee would have
been entitled to had he or she resumed employment and then died while employed.
(7) Eligibility to Participate. You do not have to complete any form for entry into the Plan.
Unless you are excluded, you will become a Participant on the first day of the month immediately
following 30 days from your first day of employment. Employees hired after October 1, 2011 who
are not employed as a police officer or forensic professional are excluded from participation in the
Plan. Those employees will participate in the City’s defined contribution plan.
Other excluded employees include those whose customary weekly employment is less than 32
hours. A participant who becomes an excluded employee does not accrue benefits attributable to
the period he is excluded, but will receive credit for vesting. An excluded employee who is not a
plan participant but becomes eligible will become a participant immediately upon satisfaction of
eligibility conditions, and years of service during the period the employee was excluded will be
credited for vesting.
If you are employed as a police officer or forensic professional and you terminate employment
after becoming a Participant in the Plan and later return to employment, you will re-enter the Plan
on your re-employment date. If you are a participant of this Plan who is not employed as a police
officer or forensic professional and you terminate employment, upon reemployment you will not
participate in this Plan. You will participate in the City’s defined contribution plan. Also, if you
are a police officer or forensic professional and you terminate employment after satisfying the
Plan’s eligibility conditions but before actually becoming a participant in the Plan, you will
become a participant in the Plan on the later of your scheduled entry date or your reemployment
date.
A police officer or forensic professional who was hired on or after December 1, 2017 can elect to
opt out of participation in this Plan and enroll in the City’s defined contribution plan instead. An
election to participate in the defined contribution plan is final. Once the choice is made it cannot
be reversed. The election must be made in writing on a form that will be provided by the City. If
no election is made, police officers and forensic professionals will participate in this Plan.
(8) Employer’s Contribution. For each plan year, the Employer must contribute to the Trust
an amount the Plan’s actuary determines is necessary to fund retirement benefits under the Plan.
(9) Employee’s Contribution. Employees contribute 5% of compensation to the retirement
plan. Employee contributions are “picked up” by the City (i.e., they are deducted from the
employee’s pay and paid to the retirement plan in pre-tax dollars).
(10) Normal Retirement Pension. The Plan defines the Normal Retirement Pension as an
amount payable every year in the normal form of annuity starting at your Normal Retirement Date
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00996298-1 4
(age 65). Also, a member with 30 years of credited service who is determined to be disabled will
also be eligible for a Normal Retirement Pension. The “normal form of annuity” is a life annuity,
meaning an annuity that makes payments during your lifetime.
The amount payable under the Normal Retirement Pension for participants who are not employed
as police officers, firefighters or forensic professionals, is 3% of Average Compensation (as
defined below) multiplied by Years of Accrual Service for service earned before October 1, 2011
and 2.5% of your Average Compensation multiplied by Years of Accrual Service earned on and
after October 1, 2011. The amount payable under the Normal Retirement Pension for police
officers, firefighters and forensic professionals is 3% of Average Compensation multiplied by all
Years of Accrual Service.
Your pension will be adjusted for any distribution in accordance with Article 5 of the Plan. The
maximum number of Years of Accrual Service taken into account in the normal retirement pension
is 30. See the illustration below for an example of the calculation of your Normal Retirement
Pension.
Your average compensation is the average of the highest 5 consecutive plan years of Compensation
out of the 10 plan years immediately preceding termination of employment. However, your final
Average Compensation will not be less than your Average Compensation computed as of
September 30, 2011. A compensation period is the 12-month period ending on the last day of the
plan year. If you have less than 5 years of employment with the Employer, your average
compensation is the average over your entire employment period.
The Plan defines compensation, as it applies to compensation earned prior to October 10, 2011, to
mean all the compensation the Employer pays you for your services. Your regular salary or wages,
any overtime, any commissions or any bonuses are part of your compensation under the Plan.
Compensation earned on and after October 10, 2011 includes base salary, up to 150 hours of
overtime earned in a plan year.In addition, the maximum annual salary incentive is included in
compensation for police officers. All other forms of compensation are excluded.
Your Normal Retirement Pension may be subject to a maximum limitation provided by the Internal
Revenue Code. The Internal Revenue Service annually announces any adjustment to the
maximum limitation.
Example of calculation of Normal Retirement Pension.
Example 1: For Members who are not employed as a police officer or forensic professional:
Assume you reach the Normal Retirement Date and retire on October 1, 2018, your average Final
Compensation at retirement is $30,000 and you have 30 Years of Accrual Service at your Normal
Retirement Date credited as follows: 23 years of service prior to October 1, 2011 and 7 years of
service on or after October 1, 2011. Under these circumstances, your annual Normal Retirement
Pension, payable in the form of a life annuity, would be $25,950, computed as follows:
Credited Serviced Prior to October 1, 2011:
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00996298-1 5
$ 30,000 (your average compensation)
x 3.0% (the Plan’s annual accrual percentage)
x 23 (your Years of Accrual Service)
$ 20,700 (your annual Normal Retirement Pension for service before
10/01/11)
Credited Serviced on or after October 1, 2011:
$ 30,000 (your average compensation)
x 2.5% (the Plan’s annual accrual percentage)
x 7 (your Years of Accrual Service)
$ 5,250 (your annual Normal Retirement Pension for service after
10/01/2011)
Total annual Normal Retirement Pension under this Example: $25,950
Example 2: For Members who are employed as a police officer or forensic professional.
Assume you reach the Normal Retirement Date and retire on October 1, 2018, your average
compensation at retirement is $30,000 and you have 30 Years of Accrual Service at your Normal
Retirement Date. Under these circumstances, your annual Normal Retirement Pension, payable in
the form of a life annuity, would be $27,000, computed as follows:
$30,000 (your average compensation)
x 3.0% (the Plan’s annual accrual percentage)
x 30 (your Years of Accrual Service)
$27,000 (your annual Normal Retirement Pension)
As indicated above, the above examples assume you begin receiving benefit payments on your
Normal Retirement Date in the normal form of annuity (i.e., a life annuity). However, as explained
in Section (13), you may begin commencement of benefit payments after your Normal Retirement
Date and as explained in Section (14), you may elect to have your benefits paid in a form other
than a life annuity. Under either of these circumstances, the amount of benefits calculated in the
above Examples will change.
(11) Accrued Benefit. If you qualify for a Pension from the Plan, the Plan Administrator will
calculate that Pension from your Accrued Benefit. Your Accrued Benefit is the portion of the
Normal Retirement Pension you have earned under the Plan. The portion of the Normal
Retirement Pension you have earned depends upon your period of service credited by the Plan.
The Plan refers to this period of service as your Years of Accrual Service. You will receive credit
for a Year of Accrual Service for each plan year (including plan years prior to the adoption of the
Plan) in which you receive credit for at least 1,000 hours of service.
(12) Vesting. When the Plan pays you your benefits, you will receive only your Vested Accrued
Benefit. Your Vested Accrued Benefit is the portion of your Accrued Benefit in which you have
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00996298-1 6
earned a vested right (ownership) under the Plan’s vesting schedule. The Plan will determine your
Vested Accrued Benefit according to the following schedules:
Vesting schedule prior to October 1, 2011
Years of Service Nonforfeitable Percentage
Less than 3 None
3 20%
4 40%
5 60%
6 80%
7 or more 100%
Vesting schedule effective October 1, 2011
Years of Service Nonforfeitable Percentage
Less than 7 None
7 or more 100%
A year of vesting service means each plan year (including plan years prior to the adoption of the
Plan) in which you complete 1000 hours of service, except years of service prior to age 18.
However, if you incur a vesting break in service (as defined below), you will lose credit for your
prior years of vesting service, unless you complete a subsequent year of vesting service. Further,
if you are 0% vested and you incur 5 consecutive vesting breaks in service, you lose credit for your
prior years of vesting service.
Members are always 100% vested in their contributions. Following termination of employment
Members are entitled to receive a return of Member contributions to the money purchase plan that
were made before October 1, 2000. The contributions of vested members that are made on or after
October 1, 2000 will not be refunded upon termination—those contributions will be included in
the Member’s deferred vested benefit, which is payable at normal retirement. The contributions
made by members who are not eligible for a deferred vested benefit will be refunded to the member
upon request following termination of employment.
(13) When you Receive Your Accrued Benefit Under the Plan. When you receive your
Accrued Benefit depends on when you terminate your employment with the Employer and the
circumstances of your termination. The following paragraphs explain the different types of
Pensions under the Plan. A reference to the “lump sum value” of your Pension means the single
sum determined by the Plan to equal the actuarial value of your Accrued Benefit payable at your
Normal Retirement Date (or at your current age, if later). The Plan specifies actuarial assumptions
for this purpose. The actuarial assumptions consider your life expectancy, the number of years
remaining to your Normal Retirement Date and a reasonable rate of return expected on Plan
investments.
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00996298-1 7
(a) Normal Retirement Pension. The Plan refers to your Pension as a Normal
Retirement Pension if you terminate employment with the Employer after reaching your
Normal Retirement Date. Payment of your Normal Retirement Pension begins as soon as
possible after you terminate employment with the Employer. If you begin payments after
your Normal Retirement Date, the Plan increases the amount of your Pension because at
an older age a person is expected to live for a shorter period. The increased payment will
equal the actuarial value of the Pension the Plan would have paid you at your Normal
Retirement Date. The Plan’s actuary will calculate these adjustments to the Pension based
on the actuarial assumptions stated in the Plan.
(b) Deferred Vested Pension. The Plan refers to your Pension as a Deferred Vested
Pension if you terminate employment with the Employer before reaching your Normal
Retirement Date or before your eligibility for an Early Retirement Pension. See Section
(16) for further information on distributions. If you begin payments after your Normal
Retirement Date, the Plan increases the amount of your Pension because at an older age a
person is expected to live for a shorter period. The increased payment will equal the
actuarial value of the Pension the Plan would have paid you at your Normal Retirement
Date. The Plan’s actuary will calculate these adjustments to the Pension based on the
actuarial assumptions stated in the Plan.
(c) Early Retirement Pension. If you were a Plan member on September 30, 2011 and
you are at least age 55 and you had completed at least 10 Years of Accrual Service, or if
you have completed at least 25 Years of Accrual Service (regardless of your age), you are
eligible for an Early Retirement Pension. If you were hired after September 30, 2011 and
you are at least 55 years of age and you have completed at least 15 Years of Accrual Service
or if you have completed 25 Years of Accrual Service (regardless of your age), you are
eligible for an Early Retirement Pension. The Plan commences payment of your Early
Retirement Pension as soon as possible after you become eligible for the Early Retirement
Pension (and subsequent to your termination of employment). You may elect to postpone
payment of your Early Retirement pension to the first day of any month subsequent to your
termination of employment. Any postponement of distributions is subject to the
distribution requirements of Section (16).
Your Early Retirement Pension is a subsidized benefit. If you begin payments after age
55, your Early Retirement Benefit is not reduced because of commencement of benefit
payments prior to your Normal Retirement Date. Thus, your benefit payment amounts
after age 55 would be the same as if you commenced benefit payments at your Normal
Retirement Date. However, if you commence your Early Retirement Pension payments
prior to age 55, the Plan reduces the amount of your Pension to the actuarial equivalent of
your Early Retirement Pension commencing at age 55. If you delay the commencement of
your Early Retirement Pension to after your Normal Retirement Date, the Plan will increase
the amount of your Pension. The Plan’s actuary will calculate these adjustments to the
Pension based on the actuarial assumptions stated in the Plan. If you were a member of
the Plan on September 30, 2011 and have credit for at least 10 Years of Accrual Service,
but less than 15 Years of Accrual Service, the actuary will determine the amount of your
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Early Retirement Pension benefit by adding the amount of your Accrued Benefit earned as
of September 30, 2011 without reduction for early commencement, to the amount of your
Accrued Benefit earned after September 30, 2011 with actuarial reduction for early
commencement.
If the present value of your early retirement benefit is $1,000 or less, you will receive your
entire benefit in one lump sum payment once you are eligible for an early retirement
benefit. If the present value of your early retirement benefit is greater than $1,000 but does
not exceed $3,500, you can request that your benefit be paid in a lump sum, to be paid
when you are eligible for an early retirement benefit. If you don’t request a lump sum
payment, your early retirement benefit will be paid in accordance with the Plan’s Early
Retirement Pension provisions. The one-time lump sum payment represents the entire
benefit to which you are entitled under the Plan. Once you receive a lump sum payment of
your early retirement benefit, you will not receive any future payments from the Plan.
When you elect to begin receiving a pension, the Plan Administrator will provide you a form
explaining your election rights. You will have at least 30 days to make your election. Your
Pension may not actually commence on the date you elect. The Plan has an administratively
reasonable period of time to make payment following your election. If you fail to make an election,
the Plan will commence payment under the “Required Distribution” rules described in Section
(16).
(14) Optional Forms of Payment. Unless you elect another form of benefit before your benefit
payments begin, you will receive a Qualified Joint and Survivor Annuity. This is an actuarially
adjusted benefit that provides a reduced monthly Pension for your lifetime plus a survivor Pension
for your spouse (if your spouse is living at your death) equal to 50% of your lifetime monthly
Pension. If you are not married when your Pension commences, the Qualified Joint and Survivor
Annuity is a life annuity, meaning a monthly Pension for your lifetime with no survivor Pension
continuing after your death.
Since the Qualified Joint and Survivor Annuity pays a benefit for two lifetimes if a participant is
married, the Plan reduces the amount of the monthly Pension payable to a married participant.
This reduction makes the actuarial value of the Qualified Joint and Survivor Annuity for a married
participant equal to the actuarial value of a life annuity for an unmarried participant.
Instead of the Qualified Joint and Survivor Annuity, you may elect any of the following payment
options.
(a) Life annuity. A life annuity is a monthly payment for your lifetime. If you are
unmarried, the Qualified Joint and Survivor Annuity already is a life annuity. If you are
married, the life annuity option would increase your monthly lifetime Pension since this
option makes payments only for your life and not also for your spouse’s life.
(b) Joint and Survivor annuity. If you are married, you may use this option to elect a
survivor Pension equal to 100% instead of 50% of your lifetime Pension under the
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Qualified Joint and Survivor Annuity. Since the 100% survivor Pension is more costly,
the Plan would reduce the amount of your monthly lifetime Pension to make the value of
this option equal to the value of your normal Qualified Joint and Survivor Annuity. If you
are unmarried, you may use this option to provide a survivor Pension to your beneficiary
equal to 50%, 75% or 100% of your lifetime Pension. The Plan would adjust the amount
of an unmarried participant’s monthly lifetime Pension to make the actuarial value of this
option equal to the actuarial value of a life annuity.
(c) Life annuity with guaranteed payment. This option pays a monthly lifetime
Pension, but guarantees a minimum number of payments. The minimum number of
payments may not exceed your life expectancy or the joint life expectancy of you and your
beneficiary. If you die before the minimum payment period, your beneficiary receives the
remaining payments. The Plan would adjust the amount of the monthly lifetime Pension
to make the actuarial value of this option equal to the actuarial value of a life annuity.
(d) Installments. This option makes payments over a fixed period of time equal to your life
expectancy or the joint life expectancy of you and your beneficiary. The Plan would limit the
annual amount of the fixed period payments so the actuarial value is the same as the actuarial value
of a life annuity.
Any Member may from time to time designate, in writing, any person or persons, as beneficiary.
The Retirement Committee will prescribe the form for the written designation of Beneficiary and,
upon the Member's filing the form with the Retirement Committee, the form effectively revokes
all designations filed prior to that date by the same Member. In the absence of spousal consent to
the Member's Beneficiary designation, any waiver of the qualified joint and survivor annuity or of
the preretirement survivor annuity is not valid.
If a Member fails to name a Beneficiary in accordance with Section 11.01, or if the Beneficiary
named by a Member predeceases him, then the Trustee will pay the death benefit in accordance
with Article 5 in the following order of priority to:
(a) The Member's surviving spouse;
(b) The Member's surviving children, including adopted children, in equal shares;
(c) The Member's surviving parents, in equal shares; or
(d) The legal representative of the Member's estate.
If the Beneficiary does not predecease the Member, but dies prior to distribution of his share of
the Member's entire death benefit, the remaining death benefit will be paid to the Beneficiary's
estate unless the Member's Beneficiary designation provides otherwise.
If you are married, you may not elect an optional form of payment instead of the Qualified Joint
and Survivor Annuity unless your spouse consents in writing. The Plan Administrator will provide
you a form-explaining the Qualified Joint and Survivor Annuity, your election rights for optional
forms of payment and your spouse’s consent rights. You will have at least 30 days to make your
election.
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(15) Forfeiture of Certain Benefits. If you are not 100% vested in your Accrued Benefit, and
you receive payment of your entire Vested Accrued Benefit, the Plan forfeits your Non-vested
Accrued Benefit. If you return to employment with the Employer, you may restore your forfeited
benefit by repaying the full amount of your distribution plus interest. You must make the
repayment no later than 5 years after your reemployment date or you lose your right to restore the
forfeited benefit. You also lose your right to restore the forfeited benefit if you incur 5 consecutive
vesting breaks in service as a result of your termination of employment with the Employer. The
interest rate on your payment depends on an interest rate index published by the Internal Revenue
Service. Upon your reemployment with the Employer, you may request the Plan Administrator to
explain your repayment option.
Pension benefits may also be forfeited because of a violation of law in connection with your
employment with the City. Section 112.3173 Florida Statute governs the forfeiture of pension
benefits of public officers and employees who are convicted of certain specified offenses. Any
public employee who is “convicted” of a specified offense committed prior to retirement, or whose
office or employment is terminated by reason of his or her admitted commission, aid, or abetment
of a specified offense, must forfeit all rights and benefits under a public retirement system of which
he or she is a member, except for the return of his or her accumulated contributions as of the date
of termination. “Convicted” includes an adjudication of guilt; a plea of guilty or of nolo
contendere (no contest); a jury verdict of guilty when adjudication of guilt is withheld and the
accused is placed on probation; or a conviction by the Senate of an impeachable offense.
Your pension benefits may still be forfeited even without an actual conviction if you are terminated
from employment as the result of your admission of a specified offense. Benefits to members who
have retired from employment are still subject to forfeiture if the specified offense is committed
prior to retirement. If you are retired and receiving pension benefits which are later forfeited, you
will be required to repay any benefits you have already received.
A "specified offense" for purposes of the Florida law includes: (i) embezzlement of public funds;
(ii) theft by a public officer or employee from his or her employer; (iii) bribery in connection with
employment; (iv) certain felonies involving bribery or misuse of public office; (v) committing an
impeachable offense; (vi) commission of a felony to obtain profit or advantage through the use of
a public office or employment; and (vii) commission of lewd or lascivious offenses against certain
victims by a public officer or employee through the use of his or her public office or employment.
(16) Required Distributions. If you are not still employed with the Employer when you reach
your Normal Retirement Age, the Plan must commence payment of your Pension no later than 60
days after the close of the plan year in which you attain Normal Retirement Age, unless you elect
a later commencement date. If you have attained Normal Retirement Age when you terminate
employment with the Employer, the 60-day period runs from the close of the plan year in which
you terminate employment.
The law, with limited exceptions, also requires you to commence payment of your Normal
Retirement Pension, if you have not already done so, after you reach age 70 ½, unless you are still
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employed with the Employer at that time. You must start payment by April 1 of the calendar year
following the calendar year you reach age 70 ½ or in which you retire (whichever occurs later).
(17) Special Options After You Reach Normal Retirement Age. The Plan does not include
any special options merely because you continue working for the Employer after your Normal
Retirement Age.
(18) Death and Disability Benefits. Whether the Plan pays a benefit after your death depends
on whether your death occurs before or after your Pension commences.
If your death occurs after your Pension commences, your beneficiary will receive a death benefit
only if payments continue after your death under the form of distribution you are receiving. See
the explanation in Section (14) of the different forms of payment.
If your death occurs before your Pension commences, the Plan provides a death benefit to your
beneficiary equal to the value of your Accrued Benefit. If you are married, the Plan will pay your
death benefit to your surviving spouse in the form of a Preretirement Survivor Annuity, which is
a life annuity payable to your surviving spouse. However, unless you elected otherwise (and your
spouse consented to such election), your spouse may elect to receive payment in any optional form
of payment described in Section (14) (other than any type of joint and survivor annuity). However,
if the lump sum value of the Preretirement Survivor Annuity is $1,000 or less, the Plan will pay
your surviving spouse a single sum equal to that lump sum value. If the lump sum value of the
Preretirement Survivor Annuity is greater than $1,000 but less than $3,500, the Plan will pay your
surviving spouse a single sum equal to that lump sum value only if you elected such option in
writing. The Preretirement Survivor Annuity benefit does not apply if you and your surviving
spouse have not been married during the one-year period ending on your date of death.
With the spouse’s consent, you may elect not to have this death benefit payable under the Plan.
The Plan Administrator will provide you information explaining the Preretirement Survivor
Annuity and your election rights.
If the Preretirement Survivor Annuity does not apply, the Plan permits your designated beneficiary
to receive the death benefit under any optional form of payment described in Section (14) (other
than any type of joint and survivor annuity), unless the participant elected otherwise. In general,
death benefits under the Plan will commence as soon as administratively practicable after the
participant’s death.
Generally, the Plan must distribute the death benefit by the end of the 5th calendar year following
your death. However, as indicated above, a designated beneficiary may receive distributions over
a period not exceeding his life expectancy, but only if benefit payments commence within one year
of the participant’s death. A designated beneficiary is an individual designated by you as your
beneficiary. The Plan Administrator will provide you with the appropriate form for naming a
beneficiary.
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The Plan does not provide disability benefits. If you suffer from a physical or mental condition
which prevents you from performing your job duties you may be eligible for disability benefits
under the City's long term disability program.
(19) Amendment and Termination of the Plan. The Employer has the right to amend the
Plan in any manner, or terminate the Plan entirely. If the Employer terminates the Plan, you would
receive benefits under the Plan based on your Accrued Benefit as of the date of Plan termination.
Termination of the Plan could occur before you reach Normal Retirement Age. If the Employer
terminates the Plan, your Accrued Benefit becomes 100% vested.
The fact the Employer has established this Plan does not confer any right to future employment
with the Employer. You also may not assign your interest in the Plan to another person or use
your Plan interest as collateral for a loan from a commercial lender.
(20) Claims Procedure. You generally need not file a formal claim with the Plan Admi nistrator
in order to receive your benefits under the Plan. When an event occurs which entitles you to a
payment of your benefits under the Plan, or if an election of a benefit is required, the Plan
Administrator will notify you. However, if you disagree with the Plan Administrator’s
determination of the amount of your benefits under the Plan or with any other decision the Plan
Administrator may make regarding your interest in the Plan, the Plan contains the appeal procedure
you should follow.
In brief, if you or your beneficiary believe a benefit calculation is incorrect, you or your beneficiary
may file with the Retirement Committee a written claim for benefits. The Plan Administrator will
notify you in writing within 60 days if your claim for benefits has been denied, setting forth specific
reasons for the denial and referring you or your beneficiary to the pertinent provisions of the Plan
supporting the Plan Administrator’s decision. If you or your beneficiary disagrees with the Plan
Administrator, you or your beneficiary, or a duly authorized representative, must appeal the
adverse determination in writing to the Retirement Committee within 75 days after the receipt of
the notice of denial of benefits. If you or your beneficiary fails to appeal a denial within the 75-
day period, the Plan Administrator’s determination will be final and binding.
If you or you beneficiary appeals to the Retirement Committee, you or your beneficiary, or a duly
authorized representative, must submit the issues and comments you or your beneficiary feels are
pertinent to permit the Retirement Committee to re-examine all facts and make a final
determination with respect to the denial. The Retirement Committee, in most cases, will make a
decision within 60 days of a request on appeal unless special circumstances would make rendering
a decision within the 60-day period unfeasible. In any event the Retirement Committee must renter
a decision within 120 days after its receipt of a request for review.
(21) Retired Participant, Separated Participant with Vested Benefit, Beneficiary
Receiving Benefits. If you are a retired participant or beneficiary receiving benefits, you are
entitled to the benefits that were in effect on the date your City employment terminated. The
benefits you presently are receiving will continue in the same amount and for the same period
provided in the form of payment selected at the time you retired. If you are a separated participant
with a Vested Accrued Benefit, you may obtain a statement of the dollar amount of your Vested
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Accrued Benefit upon request of the Plan Administrator. There is no Plan provision which
reduces, changes, terminates, forfeits, or suspends the benefits of a retired participant or of a
beneficiary receiving benefits, or a separated participant’s Vested Accrued Benefit, except as
explained in Section (19).
(22) Federal Income Taxation of Benefits Paid. Retirement benefits that you receive upon
reaching your Early or Normal Retirement Date are generally reported as taxable income. The
Federal tax laws permit you to defer Federal income taxation of certain distributions by making a
“rollover” contribution to your own individual retirement account. In general, the only type of
distribution available under the plan that qualifies for “rollover” treatment is a lump sum
distribution, which is only available under very limited circumstances. Income tax withholding
rules apply to some distributions you do not rollover directly to an individual retirement account
or to another plan. At the time you receive a distribution, you also will receive a notice discussing
withholding requirements and the options available to you. We emphasize you should consult
your own tax adviser with respect to the proper method of reporting any distribution you receive
from the Plan.
(23) Obtaining Additional Plan Information.
Any member of the Plan or a beneficiary can examine copies of the plan description, this Plan and
Trust, financial documents of the Plan or any other document related to the Plan and its
administration during reasonable business hours. A reasonable fee may be charged to the
requesting person for copies.
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APPENDIX
Retirement Committee / Board of Trustees
Chairperson David Withee
Vice-Chairperson Robin Paris
Board Member Stephen Krohn
Board Member Barbara Watkins
Vacancy
This page revised May 17, 2018.
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Required Financial Information
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ACKNOWLEDGMENT OF RECEIPT OF
SUMMARY PLAN DESCRIPTION OF THE
City of Winter Springs Retirement Plan
For
Employees of the City of Winter Springs, Florida
I hereby acknowledge receipt of a copy of the Summary Plan Description (“SPD”) on the
above plan. I received a copy of the SPD on the date indicated below.
Dated:
Social Security Number Participant’s Name – Printed
Signature of Participant
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