HomeMy WebLinkAbout2011 12 12 Consent 205 Resolution 2011-57 Winter Springs Defined Pension Reform
COMMISSION AGENDA
Informational
Consent
X
ITEM205
Public Hearings
Regular
December 12, 2011KSSB
Regular MeetingCity ManagerDepartment
REQUEST:
The City Manager and Finance and Administrative Services Department are requesting the
Commission consider adoption of Resolution 2011-57, clarifying the Winter Springs
Defined Pension Plan benefits and to allow the City Manager and City Attorney to complete
any and all documents necessary to execute the plan changes.
SYNOPSIS:
This agenda item is necessary to employ clarifying/defining language that enhances the
prior approved Resolution (2011-52), adopted by the Commission at the 9-16-2011 Winter
Springs Commission meeting, regarding the Winter Springs Defined Pension Plan
modifications.
CONSIDERATIONS:
The language contained in this Resolution (2011-57) does not change any of the original
pension modification approved in Resolution 2011-52. Resolution 2011-57 clarifies two
primary concepts and defines four pension participant types.
Plan Clarification:
The resolution clarifies what “base pay” is for three groups of employees:
Firefighters 56 hours per week (112 per pay cycle)
Police Officer 42 hours per week (84 per pay cycle) (Exempt)
General Employees 40 per week (80 per pay cycle)
“Early Retirement” = 55 years old and 10 years of service and 55 years old and 15
years of service.
Consent 205 PAGE 1 OF 3 - December 12, 2011
Participate Definitions:
“Police Officer”- means any person who is elected, appointed, or employed full time
by the City of Winter Springs, who is certified or required to be certified as a law
enforcement officer in compliance with s. 943.1395, who is vested with authority to
bear arms and make arrests, and whose primary responsibility is the prevention and
detection of crime or the enforcement of the penal, criminal, traffic, or highway laws
of the state. This definition includes all certified supervisory and command personnel
whose duties include, in whole or in part, the supervision, training, guidance, and
management responsibilities of full-time law enforcement officers, part-time law
enforcement officers, or auxiliary law enforcement officers, but does not include part-
time law enforcement officers or auxiliary law enforcement officers as the same are
defined in s. 943.10(6) and (8), respectively.
“Firefighter” - means a former Employee who was employed solely by the fire
department of the City of Winter Springs, who is certified as a firefighter as a
condition of employment and whose duty it is to extinguish fires, to protect life, or to
protect property. A Firefighter includes all certified, supervisory, and command
personnel whose duties include, in whole or in part, the supervision, training,
guidance, and management responsibilities of full-time firefighters, part-time
firefighters, or auxiliary firefighters. A participating Firefighter is a former City
Firefighter covered under the Agreement between the City of Winter Springs and
Seminole County for Fire and Emergency Medical Services, who elected to continue
participating in the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs.
“Forensic professional”- means an Employee who spends at least 65 percent of his or
her time performing duties that involve the collection, examination, preservation,
documentation, preparation, or analysis of human tissues or fluids or physical
evidence having potential biological, chemical, or radiological hazard or
contamination, or use chemicals, processes, or materials that may have carcinogenic
or health-damaging properties in the analysis of such evidence.
“General Employee” means an Employee who is not a sworn police officer,
firefighter or forensic professional.
FISCAL IMPACT:
The direct monetary impact of the changes previously approved (via Resolution 2011-
52) and those outlined above (via Resolution 2011-57) over the next 30 years will be
approximately $28,444,574.00. 30 years is used because that is the State mandated
planning horizon for most retirement plans. These changes and the corresponding savings
($579,000.00) have been budgeted for FY11-12.
COMMUNICATION EFFORTS:
This Agenda Item has been electronically forwarded to the Mayor and City Commission,
City Manager, City Attorney/Staff, and is available on the City’s Website, LaserFiche, and
the City’s Server. Additionally, portions of this Agenda Item are typed verbatim on the
respective Meeting Agenda which has also been electronically forwarded to the individuals
noted above, and which is also available on the City’s Website, LaserFiche, and the City’s
Server; has been sent to applicable City Staff, eAlert/eCitizen Recipients, Media/Press
Representatives who have requested Agendas/Agenda Item information, Homeowner’s
Associations/Representatives on file with the City, and all individuals who have requested
such information. This information has also been posted outside City Hall, posted inside
Consent 205 PAGE 2 OF 3 - December 12, 2011
City Hall with additional copies available for the General Public, and posted at five (5)
different locations around the City. Furthermore, this information is also available to any
individual requestors. City Staff is always willing to discuss this Agenda Item or any
Agenda Item with any interested individuals.
RECOMMENDATION:
City Manager and Director of Finance and Administrative Services recommend the
Commission adopt Resolution 2011-57 and permit the City Manager and City Attorney to
prepare and execute any and all applicable documents necessary to execute the pension
modifications.
ATTACHMENTS:
A - Resolution 2011-57
Consent 205 PAGE 3 OF 3 - December 12, 2011
11.30.11
RESOLUTION NO. 2011 - 57
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 I OF THE DEFINED BENEFIT PLAN
TO REVISE THE DEFINITION OF “PLAN COMPENSATION” AND
CREATE NEW DEFINITIONS OF “FORENSIC PROFESSIONAL”,
“GENERAL EMPLOYEE”, “FIREFIGHTER” AND “POLICE
OFFICER”; AMENDING ARTICLE II OF THE DEFINED BENEFIT
PLAN TO REVISE THE ELIGIBILTY PROVISION AND CLARIFY THE
REEMPLOYMENT PROVISION; AMENDING ARTICLE IV OF THE
DEFINED BENEFIT PLAN TO CLARIFY THE NORMAL RETIREMENT
PROVISION; AMENDING ARTICLE VI OF THE DEFINED BENEFIT
PLAN TO MODIFY THE ELIGIBILITY REQUIREMENTS FOR AN
EARLY RETIREMENT PENSION; AMENDING ARTICLE VIII OF THE
DEFINED BENEFIT PLAN TO MODIFY THE FORFEITURE FOR
CAUSE PROVISION; PROVIDING FOR CONFLICTS; PROVIDING FOR
SEVERABILITY; PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Winter Springs has determined that
certain changes to the City’s Defined Benefit Plan and Trust are in the best interest of the City,
its employees and taxpayers;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF WINTER SPRINGS, FLORIDA:
Section 1.
That Article I, Section 1.10 of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be amended as follows:
1.10 Compensation Definitions. Any reference in this Plan to Compensation is a
reference to the definition in this Section 1.10, unless the Plan reference specifies a modification
to this definition. The Retirement Committee will take into account only Compensation actually
paid for the relevant period.
(A) Total Compensation. "Total Compensation" means wages, salaries, and other amounts
received (whether or not paid in cash) for personal services actually rendered in the course of
employment with the Employer, but only to the extent included in gross income. This definition
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includes, but is not limited to commissions, overtime pay and bonuses. With respect to the Plan
Years beginning prior to October 1, 1998, Total Compensation does not include elective
contributions. With respect to Plan Years beginning on and after October 1, 1998, Total
Compensation includes elective contributions. Total Compensation also does not include:
(1) Employer contributions to a plan of deferred compensation to the extent the
contributions are not included in the gross income of the Employee for the taxable year in
which contributed, on behalf of an Employee to a Simplified Employee Pension Plan to
the extent such contributions are excludible from the Employee's gross income, and any
distributions from a plan of deferred compensation, regardless of whether such amounts
are includible in the gross income of the Employee when distributed.
(2) Other amounts which receive special tax benefits, such as premiums for group
term life insurance (but only to the extent that the premiums are not includible in the
gross income of the Employee), or contributions made by an Employer towards the
purchase of an annuity contract described in Code §403(b) (whether or not the
contributions are excludible from the gross income of the Employee).
(B) Plan Compensation. Plan Compensation means Total Compensation described in Section
1.10(A), except that Plan Compensation includes elective contributions for all Plan Years. Plan
Compensation applies to determine a Participant's benefit formula and Accrued Benefit under
Article V. Effective October 10, 2011, Plan Compensation means base salary plus incentive pay
and including overtime pay up to one hundred fifty (150) hours of overtime pay in a Plan Year,
and excluding all other forms of compensation. For the purpose of this definition, overtime pay
means: pay for hours worked in excess of 80 hours in a two-week work period for general
employees; hours worked in excess of 84 hours in a two-week work period for police officers;
and hours worked in excess of 56 hours in a one-week work period for firefighters. In addition,
Plan Compensation shall include payment for accrued vacation leave earned prior to July 1,
2011. All other payments shall be excluded from Plan compensation.
1.26 “Forensic professional” means an Employee who spends at least 65 percent of his or her
time performing duties that involve the collection, examination, preservation, documentation,
preparation, or analysis of human tissues or fluids or physical evidence having potential
biological, chemical, or radiological hazard or contamination, or use chemicals, processes, or
materials that may have carcinogenic or health-damaging properties in the analysis of such
evidence.
1.27 “General Employee” means an Employee who is not a sworn police officer, firefighter or
forensic professional.
1.28 “Firefighter” means a former Employee who was employed solely by the fire department
of the City of Winter Springs, who is certified as a firefighter as a condition of employment and
whose duty it is to extinguish fires, to protect life, or to protect property. A Firefighter includes
all certified, supervisory, and command personnel whose duties include, in whole or in part, the
supervision, training, guidance, and management responsibilities of full-time firefighters, part-
time firefighters, or auxiliary firefighters. A participating Firefighter is a former City Firefighter
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covered under the Agreement between the City of Winter Springs and Seminole County for Fire
and Emergency Medical Services, who elected to continue participating in the Defined Benefit
Plan and Trust for Employees of the City of Winter Springs.
1.29 “Police Officer” means any person who is elected, appointed, or employed full time by
the City of Winter Springs, who is certified or required to be certified as a law enforcement
officer in compliance with s. 943.1395, who is vested with authority to bear arms and make
arrests, and whose primary responsibility is the prevention and detection of crime or the
enforcement of the penal, criminal, traffic, or highway laws of the state. This definition includes
all certified supervisory and command personnel whose duties include, in whole or in part, the
supervision, training, guidance, and management responsibilities of full-time law enforcement
officers, part-time law enforcement officers, or auxiliary law enforcement officers, but does not
include part-time law enforcement officers or auxiliary law enforcement officers as the same are
defined in s. 943.10(6) and (8), respectively.
Section 2.
That Article II, Section 2.01 of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be amended as follows:
2.01 Eligibility. Each Employee (other than an Excluded Employee) becomes a Participant in
the Plan on the first day of the month (if employed on that date) immediately following the date
6 months after his Employment Commencement Date. "Employment Commencement Date"
means the date on which the Employee first performs an Hour of Service for the Employer.
Notwithstanding any other provision of this Plan any Employee other than a sworn police officer
or and forensic professional hired on or after October 1, 2011 shall not be eligible to participate
in this Plan. Any Employee other than a sworn police officer or forensic professional hired on or
after October 1, 2011 shall participate in the defined contribution plan established pursuant to
Resolution 2011-59 if eligible to participate in the defined contribution plan. Employees hired as
sworn police officers or forensic professionals on or after October 1, 2011 shall participate in this
Plan.
(A) Excluded Employee
(1) An Employee is an Excluded Employee if his customary weekly employment
with the Employer is less than 29 hours. An Employee is an Excluded Employee if he is
actively participating (and “benefiting” within the meaning of Treas. Reg. § 1.410(b)-3)
in another qualified plan maintained by the Employer other than the Money Purchase
Pension Plan and Trust for Employees of the City of Winter Springs, Florida (hereinafter
referred to as the “Money Purchase Plan”).
(2) If a Participant has not incurred a Separation from Service but becomes an
Excluded Employee, then during the period such a Participant is an Excluded Employee,
the Participant will not accrue a benefit under the Plan attributable to any period during
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which he is an Excluded Employee. However, during such period of exclusion, the
Participant, without regard to employment classification, continues to receive credit for
vesting under Article VIII for each included Year of Service.
(3) If an Excluded Employee who is not a Participant becomes eligible to participate
in the Plan by reason of a change in employment classification, he will participate in the
Plan immediately if he has satisfied the eligibility conditions of Section 2.01 and would
have been a Participant had he not been an Excluded Employee during his period of
Service. Furthermore, the Plan takes into account all of the Participant’s included Years
of Service with the Employer as an Excluded Employee for purposes of vesting credit
under Article VIII.
(B) Employees with Non-Contributing Service. Any Employee who completed Years of
Service prior to adoption of Resolution No. 2003-44, but did not make contributions to this Trust
Fund or to the Money Purchase 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 Plan for such service.
Section 3.
That Article II, Section 2.03 of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be amended as follows:
2.03 Participation upon Re-employment. A Participant whose employment terminates and who
is subsequently reemployed prior to October 1, 2011 will reenter the Plan as a Participant on the
date of his reemployment. An Employee other than a sworn police officer or forensic
professional who satisfies the Plan eligibility conditions but who terminates employment with
the Employer prior to becoming a Participant and who is subsequently reemployed on or after
October 1, 2011 shall not participate in this Plan but will upon reemployment participate in the
defined contribution plan established pursuant to Resolution 2011-__52 in accordance with the
terms and conditions therein provided. Any Employee other than a sworn police officer or
forensic professional who terminates employment prior to satisfying the Plan eligibility
conditions and who is subsequently reemployed on or after October 1, 2011 shall not participate
in this Plan but will upon reemployment participate in the defined contribution plan established
pursuant to Resolution 2011-59 in accordance with the terms and conditions therein provided. A
Participant employed as a police officer or forensic professional whose employment terminates
and who is subsequently reemployed on or after October 1, 2011 will reenter the Plan as a
Participant on the date of his reemployment. An Employee employed as a police officer or
forensic professional who satisfies the Plan’s eligibility conditions but who terminates
employment with the Employer prior to becoming a Participant and who is subsequently
reemployed on or after October 1, 2011, will become a Participant on the later of the Plan Entry
Date on which he would have entered the Plan had he not terminated employment or the date of
his reemployment. Any Employee employed as a police officer or forensic professional who
terminates employment prior to satisfying the Plan eligibility conditions and who is subsequently
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reemployed on or after October 1, 2011 becomes a Participant in accordance with the provisions
of Section 2.
Section 4.
That Article V, Section 5.02 of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be amended as follows:
5.02 Amount of Normal Retirement Pension/Accrued Benefit. The Annual Benefit
limitations of Article III apply to the determination of a Participant's normal retirement pension
and Accrued Benefit in the manner prescribed in Section 3.05(H).
(A) Normal Retirement Pension.
(1) Benefit Formula
(a) A Participant's normal retirement pension equals 2% of the Participant’s
Average Final Compensation multiplied by his Years of Accrual Service for service prior
to October 1, 2000, and 3% of the Participant’s Average Final 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 Final 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 1, 2005 as follows:
Multiplier for Service
Prior to
Effective Date
October 1, 2000
October 1, 2005 2.25%
October 1, 2006 2.50%
October 1, 2007 2.75%
October 1, 2008 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.
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(d) Effective October 10, 2011 the a participating General Employee’s normal
retirement pension of a General Employee Participant other than a sworn police officer or
firefighter or forensic professional shall equal 3% of the Participant’s Average
Compensation multiplied by Years of Accrual Service prior to October 1, 2011, and 2.5%
of the Participant’s Average Compensation multiplied by Years of Accrual Service on
and after October 1, 2011. The normal retirement pension of a Participant employed as a
sworn police officer, or firefighter or forensic professional shall equal 3% of the
participant’s Average Compensation multiplied by Years of Accrual Service. 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.
(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. Effective October 1, 2011,
Average Compensation shall be the average of the highest five (5) consecutive years of Plan
Compensation out of the ten (10) years immediately preceding termination of employment. A
Compensation period is the 12 month period ending on the last day of the Plan Year.
Notwithstanding the above, a Participant’s Average Compensation shall not be less than his or
her Average Compensationaverage compensation as of September 30, 2011.
* * *
Section 5.
That Article VI, Section 6.01 of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be amended as follows:
6.01 Eligibility for Early Retirement Pension.
A Participant as of September 30, 2011 who has received credit for at least 10 Years of Service
(as defined in Section 8.06) and has attained age 55 employed after September 30, 2011 may
elect an early retirement pension. who has received credit for at least 15 Years of Service (as
defined in Section 8.06), and has attained age 55 may elect an early retirement pension. A
Participant as of September 30, 2011 who separates from service after satisfying the service
requirement but not the age requirement may elect to receive an early retirement pension upon
satisfying the age requirement. In addition, a Participant as of September 30, 2011 who has
completed 25 or more Years of Service (as defined in Section 8.06) may elect an early retirement
pension.
A Participant as of September 30, 2011 who has received credit for at least 10 Years of Service
(as defined in Section 8.06), and has attained age 55 may elect an early retirement pension. A
Participant as of September 30, 2011 who separates from service after satisfying the service
requirement but not the age requirement may elect to receive an early retirement pension upon
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satisfying the age requirement. In addition, a Participant as of September 30, 2011 who has
completed 25 Years of Service (as defined in Section 8.06) may elect an early retirement
pension.
A Participant hiredemployed after September 30, 2011 who has received credit for at least 15
Years of Service (as defined in Section 8.06), and has attained age 55 may elect an early
retirement pension. A Participant hired afteremployed on September 30, 2011 who separates
from service after satisfying the service requirement but not the age requirement may elect to
receive an early retirement pension upon satisfying the age requirement. In addition, a
Participant hiredemployed after September 30, 2011 who completeshas completed 25 Years of
Service (as defined in Section 8.06) may elect to receive an early retirement pension.
The early retirement pension for a Participant is his or her Nonforfeitable Accrued Benefit
payable at Normal Retirement Date without actuarial reduction for early commencement but
only if benefits commence on or after the Participant attains age 55. If an eligible Participant
elects to commence his or her early retirement pension prior to attaining age 55, such
Participant’s early retirement pension is the Actuarial Equivalent of his Nonforfeitable Accrued
Benefit payable at 55.
Notwithstanding the above, the early retirement pension for a Participant as of September 30,
2011 who has received credit for 10 or more Years of Service but less than 15 Years of Service
is the sum of his or her Nonforfeitable Accrued Benefit as of September 30, 2011 payable at
Normal Retirement Date without actuarial reduction for early commencement plus his or her
Accrued Benefit payable at Normal Retirement Date earned after September 30, 2011 with
actuarial reduction for early commencement. but only if benefits commence on or after the
Participant attains age 55.
If an eligible Participant elects to commence his early retirement pension prior to attaining age
55, such Participant's early retirement pension is the Actuarial Equivalent of his Nonforfeitable
Accrued Benefit payable at age 55.
Section 6.
That Section 8.05 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
8.05 Vesting Schedule.
(A) 100% Vesting Upon Certain Events. A Participant's Accrued Benefit is 100%
Nonforfeitable upon and after his attaining Normal Retirement Age (if employed on or after that
date). A Participant's Accrued Benefit is 100% Nonforfeitable if the Participant's separation
from Service is a result of death, disability or eligibility for an early retirement pension.
(B) 100% Vesting of Required Participant Contributions. Each Participant is immediately 100%
vested with respect to his Required Participant Contributions. A Participant is entitled to receive
a return of his Required Participant Contributions, contributed while a participant under the
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money purchase plan prior to October 1, 2000, upon termination of employment, together with
simple interest at a rate equal to the interest rate on 30-year Treasury securities as published in
the Internal Revenue Bulletin determined as of the calendar month preceding the first day of the
Plan year, and effective October 1, 2003, a rate equal to the U.S. Treasury Department long-term
average rate published on the last day of the calendar month preceding the first day of the Plan
year, or such other rate that may be approved by the U.S. Treasury Department to replace the 30-
year Treasury bond rate as a benchmark for calculating lump sum payouts from defined benefit
plans, in lieu of any other benefit under the Plan. The amount received as a distribution by the
Participant shall be used to reduce the accrued benefit, if any, at his normal retirement date.
Required Participant contributions contributed on and after October 1, 2000 are 100% vested and
shall be included in the deferred vested benefit payable to the Participant upon normal retirement
date.
(C) Vesting Schedule prior to October 1, 2011. Subject to Section 8.05(A) and Section
8.05(B), a Participant's Nonforfeitable percentage in his Accrued Benefit equals the percentage
in the following schedule:
Nonforfeitable
Years of Service Percentage
Less than 3 ...................................................... None
3 ...................................................................... 20%
4 ...................................................................... 40%
5 ...................................................................... 60%
6 ...................................................................... 80%
7 or more ......................................................... 100%
(D) Vesting Schedule effective October 1, 2011. Effective October 1, 2011, and subject to
Section 8.05(A) and Section 8.05(B), a Participant's Nonforfeitable percentage in his Accrued
Benefit equals the percentage in the following schedule:
Nonforfeitable
Years of Service Percentage
Less than 7 ...................................................... None
7 or more ......................................................... 100%
Notwithstanding any provision of this section 8.05 to the contrary, the Accrued Benefit of a
Participant on September 30, 2011 shall continue to vest in accordance with Section 8.05(C).
(E) Amendment to Vesting Schedule. Though the Employer reserves the right to amend the
vesting schedule at any time, the Retirement Committee will not apply the amended vesting
schedule to reduce the Nonforfeitable percentage of any Participant's Accrued Benefit derived
from Employer contributions (determined as of the later of the date the Employer adopts the
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amendment, or the date the amendment becomes effective) to a percentage less than the
Nonforfeitable percentage computed under the Plan without regard to the amendment. An
amended vesting schedule will apply to a Participant only if the Participant receives credit for at
least one Hour of Service after the new schedule becomes effective.
(F) If the Employer makes a permissible amendment to the vesting schedule, each Participant
having at least 3 Years of Service with the Employer may elect to have the percentage of his
Nonforfeitable Accrued Benefit computed under the Plan without regard to the amendment. The
Participant must file his election with the Retirement Committee within 60 days of the latest of
(1) the Employer's adoption of the amendment; (2) the effective date of the amendment; or (3)
his receipt of a copy of the amendment. The Retirement Committee, as soon as practicable, must
forward a true copy of any amendment to the vesting schedule to each affected Participant,
together with an explanation of the effect of the amendment, the appropriate form upon which
the Participant may make an election to remain under the vesting schedule provided under the
Plan prior to the amendment and notice of the time within which the Participant must make an
election to remain under the prior vesting schedule. The vesting schedule election does not apply
to a Participant if the amended vesting schedule provides for vesting at least as rapid at all times
as the vesting schedule in effect prior to the amendment.
(FG) Forfeiture for Cause. The Plan does not permit a forfeiture for cause except as provided
in section 112.3173, Florida Statutes, as currently enacted and as amended in the future.
Section 7.
That this resolution shall supersede any and all conflicting provisions of any previously
adopted resolutions.
Section 8.
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 9.
That this resolution shall take effect upon adoption.
PASSED and ADOPTED this _____ day of ___________________, 2011.
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MAYOR
ATTEST:
CITY CLERK
10
RESOLUTION NO. 2011- 57
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 I OF THE DEFINED BENEFIT PLAN
TO REVISE THE DEFINITION OF "PLAN COMPENSATION" AND
CREATE NEW DEFINITIONS OF "FORENSIC PROFESSIONAL ",
"GENERAL EMPLOYEE ", "FIREFIGHTER" AND "POLICE
OFFICER "; AMENDING ARTICLE II OF THE DEFINED BENEFIT
PLAN TO REVISE THE ELIGIBILTY PROVISION AND CLARIFY THE
REEMPLOYMENT PROVISION; AMENDING ARTICLE IV OF THE
DEFINED BENEFIT PLAN TO CLARIFY THE NORMAL RETIREMENT
PROVISION; AMENDING ARTICLE VI OF THE DEFINED BENEFIT
PLAN TO MODIFY THE ELIGIBILITY REQUIREMENTS FOR AN
EARLY RETIREMENT PENSION; AMENDING ARTICLE VIII OF THE
DEFINED BENEFIT PLAN TO MODIFY THE FORFEITURE FOR
CAUSE PROVISION; PROVIDING FOR CONFLICTS; PROVIDING FOR
SEVERABILITY; PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Winter Springs has determined that
certain changes to the City's Defined Benefit Plan and Trust are in the best interest of the City,
its employees and taxpayers;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF WINTER SPRINGS, FLORIDA:
Section 1.
That Article I, Section 1.10 of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be amended as follows:
1.10 Compensation Definitions. Any reference in this Plan to Compensation is a
reference to the definition in this Section 1.10, unless the Plan reference specifies a modification
to this definition. The Retirement Committee will take into account only Compensation actually
paid for the relevant period.
(A) Total Compensation. "Total Compensation" means wages, salaries, and other amounts
received (whether or not paid in cash) for personal services actually rendered in the course of
employment with the Employer, but only to the extent included in gross income. This definition
1
includes, but is not limited to commissions, overtime pay and bonuses. With respect to the Plan
Years beginning prior to October 1, 1998, Total Compensation does not include elective
contributions. With respect to Plan Years beginning on and after October 1, 1998, Total
Compensation includes elective contributions. Total Compensation also does not include:
(1) Employer contributions to a plan of deferred compensation to the extent the
contributions are not included in the gross income of the Employee for the taxable year in
which contributed, on behalf of an Employee to a Simplified Employee Pension Plan to
the extent such contributions are excludible from the Employee's gross income, and any
distributions from a plan of deferred compensation, regardless of whether such amounts
are includible in the gross income of the Employee when distributed.
(2) Other amounts which receive special tax benefits, such as premiums for group
term life insurance (but only to the extent that the premiums are not includible in the
gross income of the Employee), or contributions made by an Employer towards the
purchase of an annuity contract described in Code §403(b) (whether or not the
contributions are excludible from the gross income of the Employee).
(B) Plan Compensation. Plan Compensation means Total Compensation described in Section
1.10(A), except that Plan Compensation includes elective contributions for all Plan Years. Plan
Compensation applies to determine a Participant's benefit formula and Accrued Benefit under
Article V. Effective October 10, 2011, Plan Compensation means base salary plus incentive pay
and up to one hundred fifty (150) hours of overtime pay in a Plan Year. For the purpose of this
definition, overtime pay means: pay for hours worked in excess of 80 hours in a two -week work
period for general employees; hours worked in excess of 84 hours in a two -week work period for
police officers; and hours worked in excess of 56 hours in a one -week work period for
firefighters. In addition, Plan Compensation shall include payment for accrued vacation leave
earned prior to July 1, 2011. All other payments shall be excluded from Plan compensation.
1.26 "Forensic professional" means an Employee who spends at least 65 percent of his or her
time performing duties that involve the collection, examination, preservation, documentation,
preparation, or analysis of human tissues or fluids or physical evidence having potential
biological, chemical, or radiological hazard or contamination, or use chemicals, processes, or
materials that may have carcinogenic or health - damaging properties in the analysis of such
evidence.
1.27 "General Employee" means an Employee who is not a sworn police officer, firefighter or
forensic professional.
1.28 "Firefighter" means a former Employee who was employed solely by the fire depaitnient
of the City of Winter Springs, who is certified as a firefighter as a condition of employment and
whose duty it is to extinguish fires, to protect life, or to protect property. A Firefighter includes
all certified, supervisory, and command personnel whose duties include, in whole or in part, the
supervision, training, guidance, and management responsibilities of full -time firefighters, part-
time firefighters, or auxiliary firefighters. A participating Firefighter is a former City Firefighter
covered under the Agreement between the City of Winter Springs and Seminole County for Fire
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and Emergency Medical Services, who elected to continue participating in the Defined Benefit
Plan and Trust for Employees of the City of Winter Springs.
1.29 "Police Officer" means any person who is elected, appointed, or employed full time by
the City of Winter Springs, who is certified or required to be certified as a law enforcement
officer in compliance with s. 943.1395, who is vested with authority to bear arms and make
arrests, and whose primary responsibility is the prevention and detection of crime or the
enforcement of the penal, criminal, traffic, or highway laws of the state. This definition includes
all certified supervisory and command personnel whose duties include, in whole or in part, the
supervision, training, guidance, and management responsibilities of full -time law enforcement
officers, part-time law enforcement officers, or auxiliary law enforcement officers, but does not
include part-time law enforcement officers or auxiliary law enforcement officers as the same are
defined in s. 943.10(6) and (8), respectively.
Section 2.
That Article II, Section 2.01 of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be amended as follows:
2.01 Eligibility. Each Employee (other than an Excluded Employee) becomes a Participant in
the Plan on the first day of the month (if employed on that date) immediately following the date
6 months after his Employment Commencement Date. "Employment Commencement Date"
means the date on which the Employee first performs an Hour of Service for the Employer.
Notwithstanding any other provision of this Plan any Employee other than a sworn police officer
or forensic professional hired on or after October 1, 2011 shall not be eligible to participate in
this Plan. Any Employee other than a sworn police officer or forensic professional hired on or
after October 1, 2011 shall participate in the defined contribution plan established pursuant to
Resolution 2011 -59 if eligible to participate in the defined contribution plan. Employees hired as
sworn police officers or forensic professionals on or after October 1, 2011 shall participate in this
Plan.
(A) Excluded Employee
(1) An Employee is an Excluded Employee if his customary weekly employment
with the Employer is less than 29 hours. An Employee is an Excluded Employee if he is
actively participating (and "benefiting" within the meaning of Treas. Reg. § 1.410(b) -3)
in another qualified plan maintained by the Employer other than the Money Purchase
Pension Plan and Trust for Employees of the City of Winter Springs, Florida (hereinafter
referred to as the "Money Purchase Plan ").
(2) If a Participant has not incurred a Separation from Service but becomes an
Excluded Employee, then during the period such a Participant is an Excluded Employee,
the Participant will not accrue a benefit under the Plan attributable to any period during
which he is an Excluded Employee. However, during such period of exclusion, the
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Participant, without regard to employment classification, continues to receive credit for
vesting under Article VIII for each included Year of Service.
(3) If an Excluded Employee who is not a Participant becomes eligible to participate
in the Plan by reason of a change in employment classification, he will participate in the
Plan immediately if he has satisfied the eligibility conditions of Section 2.01 and would
have been a Participant had he not been an Excluded Employee during his period of
Service. Furthermore, the Plan takes into account all of the Participant's included Years
of Service with the Employer as an Excluded Employee for purposes of vesting credit
under Article VIII.
(B) Employees with Non - Contributing Service. Any Employee who completed Years of
Service prior to adoption of Resolution No. 2003 -44, but did not make contributions to this Trust
Fund or to the Money Purchase 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 Plan for such service.
Section 3.
That Article II, Section 2.03 of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be amended as follows:
2.03 Participation upon Re- employment. A Participant whose employment terminates and who
is subsequently reemployed prior to October 1, 2011 will reenter the Plan as a Participant on the
date of his reemployment. An Employee other than a sworn police officer or forensic
professional who satisfies the Plan eligibility conditions and who is subsequently reemployed on
or after October 1, 2011 shall not participate in this Plan but will upon reemployment participate
in the defined contribution plan established pursuant to Resolution 2011 -59 in accordance with
the terms and conditions therein provided. Any Employee other than a sworn police officer or
forensic professional who terminates employment prior to satisfying the Plan eligibility
conditions and who is subsequently reemployed on or after October 1, 2011 shall not participate
in this Plan but will upon reemployment participate in the defined contribution plan established
pursuant to Resolution 2011 -59 in accordance with the terms and conditions therein provided. A
Participant employed as a police officer or forensic professional whose employment terminates
and who is subsequently reemployed on or after October 1, 2011 will reenter the Plan as a
Participant on the date of his reemployment. An Employee employed as a police officer or
forensic professional who satisfies the Plan's eligibility conditions but who terminates
employment with the Employer prior to becoming a Participant and who is subsequently
reemployed on or after October 1, 2011, will become a Participant on the later of the Plan Entry
Date on which he would have entered the Plan had he not terminated employment or the date of
his reemployment. An Employee employed as a police officer or forensic professional who
terminates employment prior to satisfying the Plan eligibility conditions and who is subsequently
reemployed on or after October 1, 2011 becomes a Participant in accordance with the provisions
of Section 2.
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Section 4.
That Article V, Section 5.02 of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be amended as follows:
5.02 Amount of Normal Retirement Pension/Accrued Benefit. The Annual Benefit
limitations of Article III apply to the determination of a Participant's normal retirement pension
and Accrued Benefit in the manner prescribed in Section 3.05(H).
(A) Normal Retirement Pension.
(1) Benefit Formula
(a) A Participant's normal retirement pension equals 2% of the Participant's
Average Final Compensation multiplied by his Years of Accrual Service for service prior
to October 1, 2000, and 3% of the Participant's Average Final 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 Final 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 1, 2005 as follows:
Multiplier for Service
Effective Date Prior to
October 1, 2000
October 1, 2005 2.25%
October 1, 2006 2.50%
October 1, 2007 2.75%
October 1, 2008 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.
(d) Effective October 10, 2011 the normal retirement pension of a General
Employee Participant shall equal 3% of the Participant's Average Compensation
multiplied by Years of Accrual Service prior to October 1, 2011, and 2.5% of the
Participant's Average Compensation multiplied by Years of Accrual Service on and after
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October 1, 2011. The normal retirement pension of a Participant employed as a sworn
police officer, firefighter or forensic professional shall equal 3% of the participant's
Average Compensation multiplied by Years of Accrual Service. 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.
(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. Effective October 1, 2011,
Average Compensation shall be the average of the highest five (5) consecutive years of Plan
Compensation out of the ten (10) years immediately preceding termination of employment. A
Compensation period is the 12 month period ending on the last day of the Plan Year.
Notwithstanding the above, a Participant's Average Compensation shall not be less than his or
her Average Compensation as of September 30, 2011.
Section 5.
That Article VI, Section 6.01 of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be amended as follows:
6.01 Eligibility for Early Retirement Pension.
A Participant as of September 30, 2011 who has received credit for at least 10 Years of Service
(as defined in Section 8.06) and has attained age 55 may elect an early retirement pension. A
Participant as of September 30, 2011 who separates from service after satisfying the service
requirement but not the age requirement may elect to receive an early retirement pension upon
satisfying the age requirement. In addition, a Participant as of September 30, 2011 who has
completed 25 or more Years of Service (as defined in Section 8.06) may elect an early retirement
pension.
A Participant hired after September 30, 2011 who has received credit for at least 15 Years of
Service (as defined in Section 8.06), and has attained age 55 may elect an early retirement
pension. A Participant hired after September 30, 2011 who separates from service after
satisfying the service requirement but not the age requirement may elect to receive an early
retirement pension upon satisfying the age requirement. In addition, a Participant hired after
September 30, 2011 who completes 25 Years of Service (as defined in Section 8.06) may elect to
receive an early retirement pension.
The early retirement pension for a Participant is his or her Nonforfeitable Accrued Benefit
payable at Normal Retirement Date without actuarial reduction for early commencement but
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only if benefits commence on or after the Participant attains age 55. If an eligible Participant
elects to commence his or her early retirement pension prior to attaining age 55, such
Participant's early retirement pension is the Actuarial Equivalent of his Nonforfeitable Accrued
Benefit payable at 55.
Notwithstanding the above, the early retirement pension for a Participant as of September 30,
2011 who has received credit for 10 or more Years of Service but less than 15 Years of Service
is the sum of his or her Nonforfeitable Accrued Benefit as of September 30, 2011 payable at
Normal Retirement Date without actuarial reduction for early commencement plus his or her
Accrued Benefit payable at Normal Retirement Date earned after September 30, 2011 with
actuarial reduction for early commencement.
Section 6.
That Section 8.05 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
8.05 Vesting Schedule.
(A) 100% Vesting Upon Certain Events. A Participant's Accrued Benefit is 100%
Nonforfeitable upon and after his attaining Normal Retirement Age (if employed on or after that
date). A Participant's Accrued Benefit is 100% Nonforfeitable if the Participant's separation
from Service is a result of death, disability or eligibility for an early retirement pension.
(B) 100% Vesting of Required Participant Contributions. Each Participant is immediately 100%
vested with respect to his Required Participant Contributions. A Participant is entitled to receive
a return of his Required Participant Contributions, contributed while a participant under the
money purchase plan prior to October 1, 2000, upon termination of employment, together with
simple interest at a rate equal to the interest rate on 30 -year Treasury securities as published in
the Internal Revenue Bulletin determined as of the calendar month preceding the first day of the
Plan year, and effective October 1, 2003, a rate equal to the U.S. Treasury Department long -term
average rate published on the last day of the calendar month preceding the first day of the Plan
year, or such other rate that may be approved by the U.S. Treasury Department to replace the 30-
year Treasury bond rate as a benchmark for calculating lump sum payouts from defined benefit
plans, in lieu of any other benefit under the Plan. The amount received as a distribution by the
Participant shall be used to reduce the accrued benefit, if any, at his normal retirement date.
Required Participant contributions contributed on and after October 1, 2000 are 100% vested and
shall be included in the deferred vested benefit payable to the Participant upon normal retirement
date.
(C) Vesting Schedule prior to October 1, 2011. Subject to Section 8.05(A) and Section
8.05(B), a Participant's Nonforfeitable percentage in his Accrued Benefit equals the percentage
in the following schedule:
7
Nonforfeitable
Years of Service Percentage
Less than 3 None
3 20%
4 40%
5 60%
6 80%
7 or more 100%
(D) Vesting Schedule effective October 1, 2011. Effective October 1, 2011, and subject to
Section 8.05(A) and Section 8.05(B), a Participant's Nonforfeitable percentage in his Accrued
Benefit equals the percentage in the following schedule:
Nonforfeitable
Years of Service Percentage
Less than 7 None
7 or more 100%
Notwithstanding any provision of this section 8.05 to the contrary, the Accrued Benefit of a
Participant on September 30, 2011 shall continue to vest in accordance with Section 8.05(C).
(E) Amendment to Vesting Schedule. Though the Employer reserves the right to amend the
vesting schedule at any time, the Retirement Committee will not apply the amended vesting
schedule to reduce the Nonforfeitable percentage of any Participant's Accrued Benefit derived
from Employer contributions (determined as of the later of the date the Employer adopts the
amendment, or the date the amendment becomes effective) to a percentage less than the
Nonforfeitable percentage computed under the Plan without regard to the amendment. An
amended vesting schedule will apply to a Participant only if the Participant receives credit for at
least one Hour of Service after the new schedule becomes effective.
(F) If the Employer makes a permissible amendment to the vesting schedule, each Participant
having at least 3 Years of Service with the Employer may elect to have the percentage of his
Nonforfeitable Accrued Benefit computed under the Plan without regard to the amendment. The
Participant must file his election with the Retirement Committee within 60 days of the latest of
(1) the Employer's adoption of the amendment; (2) the effective date of the amendment; or (3)
his receipt of a copy of the amendment. The Retirement Committee, as soon as practicable, must
forward a true copy of any amendment to the vesting schedule to each affected Participant,
together with an explanation of the effect of the amendment, the appropriate form upon which
the Participant may make an election to remain under the vesting schedule provided under the
Plan prior to the amendment and notice of the time within which the Participant must make an
election to remain under the prior vesting schedule. The vesting schedule election does not apply
8
to a Participant if the amended vesting schedule provides for vesting at least as rapid at all times
as the vesting schedule in effect prior to the amendment.
(G) Forfeiture for Cause. The Plan does not permit a forfeiture for cause except as provided
in section 112.3173, Florida Statutes, as currently enacted and as amended in the future.
Section 7.
That this resolution shall supersede any and all conflicting provisions of any previously
adopted resolutions.
Section 8.
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 9.
That this resolution shall take effect upon adoption.
PASSED and ADOPTED this 12th day of December, 2011.
a
MAY `R
ATTEST:
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