HomeMy WebLinkAboutResolution 2007-20 Employee Benefit Plan
RESOLUTION NUMBER 2007-20
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
WINTER SPRINGS, FLORIDA, AMENDING THE DEFINED
BENEFIT PLAN AND TRUST FOR EMPLOYEES OF THE CITY
OF WINTER SPRINGS; AMENDING ARTICLE V, SECTION 5.02,
TO PROVIDE AN ALTERNATIVE NORMAL RETIREMENT
BENEFIT; PROVIDING FOR CONFLICTS; PROVIDING FOR
SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER
SPRINGS, FLORIDA:
Section 1.
Article V, Section 5.02, of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs is hereby amended to read as follows:
(A) Normal Retirement Pension.
(1) Benefit Formula.
(a) A Participant's normal retirement pension equals 2% of the
Participant's Average Compensation multiplied by his Years of Accrual Service
for service prior to October 1, 2000, and 3% of the Participant's Average
Compensation multiplied by his Years of Accrual Service for service on and after
October 1, 2000. Such pension will be adjusted for any distribution in accordance
with Section 8.05. The maximum number of Years of Accrual Service taken into
account in the normal retirement pension is 30, counting forward from the date of
initial participation to include any purchased past service.
(b) Notwithstanding any provision of subparagraph (a) to the contrary,
effective October 1, 2008, a Participant's normal retirement pension shall equal
3% of the Participant's Average Compensation multiplied by his Years of Accrual
Service for service prior to October 1, 2000; provided that such multiplier shall
increase by one-fourth of one percent (.25%) each year beginning October I,
2005, as follows:
Effective Date
Multiplier for Service
Prior to
October 1, 2000
October 1,2005
October 1,2006
October 1,2007
October 1,2008
2.25%
2.50%
2.75%
3.00%
(c) A Participant's normal retirement pension shall be calculated by
applying the multiplier for service prior to October 1, 2000 that is in effect on the
date of the Participant's separation from service.
(2) Average Compensation. Average Compensation is the average of the
Participant's Plan Compensation for the Averaging Period in the Participant's
Compensation History which results in the highest Average Compensation. A
Participant's Compensation History is the Participant's entire period of
employment with the Employer. The Averaging Period is 3 consecutive
Compensation periods (or the entire period of employment, if shorter). A
Compensation period is the 12-month period ending on the last day of the Plan
Year.
(B) Accrued Benefit. Subject to the Annual Benefit limitations of Article III, a
Participant's Accrued Benefit is the normal retirement pension accrued by the Participant
under the accrual formula provided in this paragraph (B).
(1) Method of Accrual. As of any date, a Participant's Accrued Benefit is his
normal retirement pension calculated as of the determination date, based on the
Years of Accrual Service credited as of such date.
(2) Year of Accrual Service. Years of Accrual Service are Years of Service as
determined under Section 8.06, including Years of Service completed prior to his
participation in the Plan. Any Employee who completed Years of Service prior to
the adoption of Resolution No. 2003-44 but did not make contributions to this
Trust Fund or to the Money Purchase Pension Plan shall be credited with Years of
Accrual Service upon payment of the Required Participant Contributions due
under this Plan and the required participant contributions due under the Money
Purchase Pension Plan for such service. Years of Accrual Service also include
"Years of Qualified Service". Y ears of Qualified Service means any or all years
of service performed by the Participant as an employee of the Government of the
United States, any State or political subdivision thereof or any agency or
instrumentality of any of the foregoing, other than the Employer, but only if all of
the following conditions are satisfied:
City of Winter Springs, Florida
Resolution 2007-20
Page 2 of4
(a) the Participant makes a voluntary contribution to the Plan, in an
amount necessary to fund the benefit attributable to such Years of
Qualified Service (as determined by the actuary for the Plan, utilizing the
actuarial definitions used for plan funding purposes) and which does not
exceed the amount necessary to fund the benefit attributable to such Years
of Qualified Service;
(b) the Participant makes the voluntary contribution described III
paragraph (a) above, in one lump sum payment to the Plan prior to
receiving credit for such Years of Qualified Service;
(c) the Participant's Accrued Benefit is either 100% Nonforfeitable at
the time he makes the voluntary contribution described in paragraph (a)
above or will become 100% Nonforfeitable immediately after receiving
credit for such Years of Qualified Service; and
(d) the crediting of such Years of Qualified Service must not cause the
Participant to receive a retirement benefit for the same Years of Qualified
Service under more than one retirement plan.
5.03 Normal Form of Benefit. The Retirement Committee will compute a
Participant's normal retirement pension in the form of a straight life annuity. The Trustee
will pay the Participant's normal retirement pension in accordance with Article X.
5.04 Alternative Normal Retirement.
Notwithstanding any other provision of this Article, a Member with thirty (30) or more
years of accrual service who is determined to be disabled under the provisions of the
City's long term disability insurance policy prior to the Normal Retirement Date may
retire with an unreduced benefit, and the benefit shall be calculated based on the
Member's years of accrual service and average compensation at the date of separation
from employment.
5.0~4 Late Retirement.
(A) Actuarial Adjustment for Delayed Commencement/Accrual of Benefits After
Normal Retirement Date. A benefit commencing after Normal Retirement Date is the
Actuarial Equivalent of the Participant's Accrued Benefit payable as of the later of
Normal Retirement Date or the last day of the prior Plan Year. A Participant continues to
accrue benefits after his Normal Retirement Date if the Participant's Accrued Benefit
would increase because of additional Service or Compensation. A Participant's Accrued
Benefit as of the end of each Plan Year following his Normal Retirement Date is the
greater of: (1) the normal retirement pension determined under the Plan, taking into
account Service and Compensation credited after Normal Retirement Date; or (2) the
Accrued Benefit, determined as of the later of Normal Retirement Date or the end of the
prior Plan Year, actuarially adjusted for late retirement.
City of Winter Springs, Florida
Resolution 2007-20
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Section 2.
That this resolution shall supersede any and all conflicting provisions of any
previously adopted resolutions.
Section 3.
That should any section or provision of this resolution or any portion thereof, any
paragraph, sentence, or word be declared by a court of competent jurisdiction to be
invalid, such decision shall not affect the validity of the remainder hereof as a whole or
part thereof other than the part declared to be invalid.
Section 4.
That this resolution shall take effect upon adoption, except as otherwise
specifically provided herein.
PASSED and ADOPTED this
23 RD day of
April,
2007.
7.~
LORENZO-LUACES, City Clerk
/
City of Winter Springs, Florida
Resolution 2007-20
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