HomeMy WebLinkAboutAgenda Fire Pension Special Meeting 100410THE RESOURCE CENTERS, LLC
4360 Northlake Boulevard, Suite 206 ❖ Palm Beach Gardens, FL 33410
Phone (561) 624 -3277 ❖ Fax (561) 624 -3278 ❖ www.RESOURCECENTERS.COM
PALM BEACH GARDENS FIREFIGHTERS'
PENSION FUND
Special Meeting of Monday, October 4, 2010
Location: Council Chambers, Palm Beach Gardens City Hall
10500 North Military Trail
Palm Beach Gardens, FL 33410
Time: 9:00 A.M.
AGENDA
1. Call Meeting to Order
2. Attorney Report: Pedro Hererra
• Discussion on Proposed IRS Ordinance
3. Other Business
4. Schedule Next Meeting: Monday, November 8, 2010 at 9:00 A.M.
5. Adjourn
PLEASE NOTE:
Should any interested party seek to appeal any decision made by the Board with respect to any matter
considered at such meeting or hearing, he will need a record of the proceedings, and for such purpose he
may need to insure that a verbatim record of the proceedings is made, which record includes the testimony
and evidence upon which the appeal is to be based. In accordance with the Americans With Disabilities Act
of 1990, persons needing a special accommodation to participate in this meeting should contact The
Resource Centers, LLC no later than four days prior to the meeting.
ORDINANCE NO. , 2010
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF PALM BEACH GARDENS, FLORIDA RELATING TO
THE FIREFIGHTERS' PENSION PLAN; PROVIDING FOR
COMPLIANCE WITH THE INTERNAL REVENUE CODE;
PROVIDING FOR CODIFICATION; PROVIDING FOR THE
REPEAL; PROVIDING FOR SEVERABILITY AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, recent changes to federal laws and regulations require that various
amendments be made to the Plan in order to maintain its status as a qualified plan
under Section 401(a) of the Internal Revenue Code; and
WHEREAS, an amendment to the city code is necessary to permit such new
obligations and conditions, and
WHEREAS, the trustees of the City of Palm Beach Gardens Firefighters' Pension
Fund have requested and approved such an amendment as being in the best interests
of the participants and beneficiaries as well as improving the administration of the plan,
F1Ti eJ
WHEREAS, the City Council has received, reviewed and considered an actuarial
impact statement describing the actual impact of the amendments provided for herein,
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Palm
Beach Gardens, Florida, that:
SECTION 1. The foregoing WHEREAS clauses are hereby ratified and
confirmed as being true and correct and are hereby made a specific part of this
Ordinance upon adoption hereof.
SECTION 2. Section 38 -51 of the Code of Ordinances, entitled "Definitions ", is
amended as follows by adding the underlined language and deleting the stricken
language-
1
Salary means the total compensation for services rendered to the city as
a firefighter 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 deduction or salary reduction. Gomnemsatirm in eXGess
of limitations cot forth in Confirm 401 (a)(17) of the Gede shall ho
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"Eligible employee"
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0ndmy* dual who was Tebber before first plan year beginning after
DeGember 31,1995. For the purpose of applying the limitations set forth
in Sections 401(x)(17) and 415 of the Internal Revenue Code, Salary
shall include any elective deferral (as defined in Code Section 402(g)(3) of
the Internal Revenue Code), and any amount which is contributed or
deferred by the employer at the election of the Member and which is not
includible in the gross income of the Member by reason of Section 125 or
457 of the Internal Revenue Code. For limitation years beginning on and
after January 1, 2001, for the purposes of applying the limitations
described in Subsection (a) of Section 38 -65 hereof, compensation paid or
made available during such limitation years shall include elective amounts
that are not includible in the gross income of the Member by reason of
Section 132(f)(4) of the Internal Revenue Code.
SECTION 3. Section 38 -65 of the Code of Ordinances entitled "Maximum
pension" is hereby amended as follows by adding the underlined language and deleting
the stricken language:
Sec. 38 -65. Maxm., urn nensi Internal Revenue Code Compliance.
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(a) Maximum Pension.
Notwithstandina anv Drovision of this Plan to the contrarv. the Annual
Pension that is accrued by or paid to a participant shall not exceed the Dollar
Limitation set forth below. If the benefit the participant would otherwise
accrue in a Limitation Year would produce an Annual Pension in excess of
the Dollar Limitation, the benefit shall be limited to a benefit that does not
exceed the Dollar Limitation.
(1) Definitions Used in this Section:
(A) "Annual Pension" means the benefits received by a
participant under this Plan expressed in the form of a straight
life annuity. In determining whether benefits payable exceed
the Dollar Limitation set forth below, benefits payable in any
form other than a straiaht life annuitv shall be adiusted to the
larger of:
(i) The annual amount of the straight life annuity (if
any) payable to the participant under the plan
commencing at the same annuity starting date as the
form of benefit payable to the participant; or
(ii) The annual amount of the straight life annuity
commencing at the same annuity starting date that
has the same actuarial present value as the form of
benefit payable to the participant, computed using a 5
percent interest assumption and the applicable
mortalitv table described in �1.417(e)- 1(d)(2) for that
annuity starting date.
No actuarial adjustment to the benefit shall be made for
benefits that are not directly related to retirement benefits
(such as a qualified disability benefit, preretirement
incidental death benefits. and Dostretirement medical
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(a) Maximum Pension.
Notwithstandina anv Drovision of this Plan to the contrarv. the Annual
Pension that is accrued by or paid to a participant shall not exceed the Dollar
Limitation set forth below. If the benefit the participant would otherwise
accrue in a Limitation Year would produce an Annual Pension in excess of
the Dollar Limitation, the benefit shall be limited to a benefit that does not
exceed the Dollar Limitation.
(1) Definitions Used in this Section:
(A) "Annual Pension" means the benefits received by a
participant under this Plan expressed in the form of a straight
life annuity. In determining whether benefits payable exceed
the Dollar Limitation set forth below, benefits payable in any
form other than a straiaht life annuitv shall be adiusted to the
larger of:
(i) The annual amount of the straight life annuity (if
any) payable to the participant under the plan
commencing at the same annuity starting date as the
form of benefit payable to the participant; or
(ii) The annual amount of the straight life annuity
commencing at the same annuity starting date that
has the same actuarial present value as the form of
benefit payable to the participant, computed using a 5
percent interest assumption and the applicable
mortalitv table described in �1.417(e)- 1(d)(2) for that
annuity starting date.
No actuarial adjustment to the benefit shall be made for
benefits that are not directly related to retirement benefits
(such as a qualified disability benefit, preretirement
incidental death benefits. and Dostretirement medical
benefits); or the inclusion in the form of benefit of an
automatic benefit increase feature, provided the form of
benefit is not subject to §417(e)(3) of the Internal Revenue
Code and would otherwise satisfy the limitations of this
Subsection (a), and the amount payable under the form of
benefit in any Limitation Year shall not exceed the limits of
this Subsection (a) applicable at the annuity starting date, as
increased in subsequent years pursuant to § 415(d) of the
Code. For this purpose, an automatic benefit increase
feature is included in a form of benefit if the form of benefit
provides for automatic, periodic increases to the benefits
paid in that form.
"Dollar Limitation" means $160.000 (subiect to the
annual adiustments provided under Section 415(d) of the
IRC). Said amount shall be adjusted based on the age of the
participant when benefits begin, as follows:
(i) Except with respect to a participant who is a
"Qualified Participant" as defined in Section
415(b)(2)(H) of the Code, for benefits (except survivor
and disability benefits as defined in Section 415(b)(2)(1)
of the Code) beginning before age 62 the Age -
Adjusted Dollar Limitation is equal to the lesser of --
(1) the actuarial equivalent of the annual
amount of a straight life annuity commencing at
the annuity starting date that has the same
actuarial present value as a deferred straight
life annuity commencing at age 62, where
annual payments under the straight life annuity
commencing at age 62 are equal to the Dollar
Limitation (as adjusted pursuant to section
415(4) for the limitation year), and where the
actuarially equivalent straight life annuity is
computed using a 5 percent interest rate and
the applicable mortality table under §1.417(e)-
1(d)(2) that is effective for that annuity starting
date (and expressing the participant's age
based on completed calendar months as of the
annuitv startina date): and
(11) the Dollar Limitation (as adjusted pursuant
to section 415(4)) multiplied by the ratio of the
annual amount of the straight life annuity under
A
the plan to the annual amount of the straight
life annuity under the plan commencing at age
62, with both annual amounts determined
without applying the rules of section 415.
(ii) For benefits beginning after the age of 65, the
age- adjusted Dollar Limitation is equal to the lesser of:
the actuarial eauivalent of the annual
amount of a straight life annuity commencing at
the annuity starting date that has the same
actuarial present value as a straight life annuity
commencing at age 65, where annual
Payments under the straight life annuity
commencing at age 65 are equal to the dollar
limitation of section 415(b)(1 )(A) (as adjusted
pursuant to section 415(d) for the limitation
year), and where the actuarially equivalent
straight life annuity is computed using a 5
percent interest rate and the applicable
mortality table under M .417(e)- 1(d)(2) that is
effective for that annuity starting date (and
expressing the participant's age based on
completed calendar months as of the annuity
startina date): and
the section 415(b)(1)(A) Dollar limitation
(as adjusted pursuant to section 415(d) and
§1.415(d) -1 for the limitation year) multiplied by
the ratio of the annual amount of the adjusted
immediately commencing straight life annuity
under the plan to the adjusted age 65 straight
life annuity. The adjusted immediately
commencing straight life annuity means the
annual amount of the immediately commencing
straight life annuity payable to the participant,
computed disregarding the participant's
accruals after age 65 but including actuarial
adjustments even if those actuarial
adjustments are applied to offset accruals. For
this purpose, the annual amount of the
immediately commencing straight life annuity is
determined without applying the rules of
section 415. The adjusted age 65 straight life
annuity means the annual amount of the
7
straight life annuity that would be payable
under the plan to a hypothetical participant who
is 65 years old and has the same accrued
benefit (with no actuarial increases for
commencement after age 65) as the participant
receiving the distribution (determined
disregarding the participant's accruals after
age 65 and without applying the rules of
section 415).
(iii) There shall be no age adjustment of the Dollar
Limitation with respect to benefits beginning between
the ages of 62 and 65.
(2) The limitations set forth in this Subsection (a) shall not apply if
the Annual Pension does not exceed $10,000 provided the
participant has never participated in a Defined Contribution Plan
maintained by the City.
Cost -of- livina adiustments in the Dollar Limitation for benefits
shall be limited to scheduled annual increases determined by the
Secretary of the Treasury under Section Subsection 415(4) of the
Code.
In the case of a Darticioant who has fewer than 10 vears of
participation in the Plan, the Dollar Limitation set forth in Paragraph
(1)(B) of this Subsection (a) shall be multiplied by a fraction - (i)
the numerator of which is the number of years (or part thereof) of
participation in the Plan, and (ii) the denominator of which is 10.
(5) Any portion of a participant's benefit that is attributable to
mandatory employee contributions (unless picked -up by the City) or
rollover contributions, shall be taken into account in the manner
prescribed in the regulations under Section 415 of the Code.
(6) Should any participant participate in more than one defined
benefit plan maintained by the City, in any case in which the
participant's benefits under all such defined benefit plans
(determined as of the same age) would exceed the Dollar Limitation
applicable at that age, the accrual of the participant's benefit under
this Plan shall be reduced so that the Darticioant's combined
benefits will equal the Dollar Limitation.
For a Darticipant who has or will have distributions
commencing at more than one annuity starting date, the Annual
Benefit shall be determined as of each such annuity starting date
(and shall satisfy the limitations of this Section as of each such
date), actuarially adjusting for past and future distributions of
benefits commencing at the other annuity starting dates. For this
purpose, the determination of whether a new starting date has
occurred shall be made without regard to § 1.401(a) -20, Q &A 10(d),
and with regard to $ 1.415(b)1(b)(1 )(iii)(B) and (C) of the Income
Tax Regulations.
(8) The determination of the Annual Pension under Paragraph
(a)(1) of this Subsection (a) shall take into account (in the manner
Prescribed by the regulations under Section 415 of the Code) social
security supplements described in § 411(a)(9) of the Internal
Revenue Code and benefits transferred from another defined
benefit plan, other than transfers of distributable benefits pursuant
1.411(d) -4, Q &A -3(c) of the Income Tax Regulations.
(9) The above limitations are intended to comply with the
provisions of Section 415 of the Code, as amended, so that the
maximum benefits provided by plans of the City shall be exactly
equal to the maximum amounts allowed under Section 415 of the
Code and regulations thereunder. If there is any discrepancy
between the provisions of this Subsection (a) and the provisions of
Section 415 of the Code and regulations thereunder, such
discrepancy shall be resolved in such a way as to give full effect to
the provisions of Section 415 of the Code. The value of any
benefits forfeited as a result of the application of this Subsection (a)
shall be used to decrease future emDlover contributions.
(b) Required Beginning Date:
Notwithstanding any other provision of the Plan, payment of a
participant's retirement benefits under the Plan shall commence not later
than the participant's Required Beginning Date, which is defined as the
later of:
-April 1 of the calendar year that next follows the calendar year in
which the participant attains or will attain the age of 70'/2 years; or
-April 1 of the calendar year that next follows the calendar year in
which the participant retires.
ired Minimum Distributions.
Reauired Beainnina Date. The participant's entire interest
will be distributed, or begin to be distributed, to the participant no
later than the participant's Required Beginning Date as defined in
Subsection (b) of this Section 38 -65.
(2) Death of participant Before Distributions Begin.
(A) If the participant dies before distributions begin, the
participant's entire interest will be distributed, or begin to be
distributed, no later than as follows:
(i) If the participant's surviving spouse is the
participant's sole designated beneficiary, then
distributions to the surviving spouse will begin by
December 31 of the calendar year immediately
following the calendar year in which the participant
died, or by December 31 of the calendar year in which
the participant would have attained age 70'/2, if later.
(ii) If the participant's surviving spouse is not the
participant's sole designated beneficiary, then
distributions to the designated beneficiary will begin
by December 31 of the calendar year immediately
following the calendar year in which the participant
died.
If there is no designated beneficiary as of
September 30 of the year following the year of the
participant's death, the participant's entire interest will
be distributed by December 31 of the calendar year
containing the fifth anniversary of the participant's
death.
(B) The participant's entire interest shall be distributed as
follows:
(i) participant Survived by Designated Beneficiary.
If the participant dies before the date distribution of
his or her interest begins and there is a designated
beneficiary, the participant's entire interest will be
distributed, beginning no later than the time described
in Subparagraph (2)(A) above, over the life of the
designated beneficiary or over a period certain not
exceeding:
10
unless the annuitv startina date is before
the first distribution calendar year, the life
expectancy of the designated beneficiary
determined using the beneficiary's age as of
the beneficiary's birthday in the calendar year
immediately following the calendar year of the
participant's death; or
if the annuitv startina date is before the
first distribution calendar year, the life
expectancy of the designated beneficiary
determined using the beneficiary's age as of
the beneficiary's birthday in the calendar year
that contains the annuity startina date.
(ii) No Designated Beneficiary. If the participant
dies before the date distributions begin and there is
no designated beneficiary as of September 30 of the
year following the year of the participant's death,
distribution of the participant's entire interest will be
completed by December 31 of the calendar year
containing the fifth anniversary of the participant's
death.
(C) Death of Surviving Spouse Before Distributions to
Surviving Spouse Begin. In any case in which (i) the
participant dies before the date distribution of his or her
interest begins, (ii) the participant's surviving spouse is the
participant's sole designated beneficiary, and (iii) the
surviving spouse dies before distributions to the surviving
spouse begin, Subparagraphs (2)(A) and 2(B) above shall
apply as though the surviving spouse were the participant.
(3) Requirements For Annuity Distributions That Commence
During participant's Lifetime.
(A) Joint Life Annuities Where the Beneficiary Is Not the
participant's Spouse. If the participant's interest is being
distributed in the form of a joint and survivor annuity for the
joint lives of the participant and a nonspousal beneficiary,
annuity payments to be made on or after the participant's
Required Beginning Date to the designated beneficiary after
the participant's death must not at any time exceed the
applicable percentage of the annuity payment for such
period that would have been payable to the participant using
11
the table set forth in Q &A -2 of Section 1.401(a)(9)-6T of the
Treasury regulations. If the form of distribution combines a
joint and survivor annuity for the joint lives of the participant
and a nonspousal beneficiary and a period certain annuity,
the requirement in the preceding sentence will apply to
annuity payments to be made to the designated beneficiary
after the expiration of the period certain.
Period Certain Annuities. Unless the participant's
spouse is the sole designated beneficiary and the form of
distribution is a period certain and no life annuity, the period
certain for an annuity distribution commencing during the
participant's lifetime may not exceed the applicable
distribution period for the participant under the Uniform
Lifetime Table set forth in Section 1.401(a)(9) -9 of the
Treasury regulations for the calendar year that contains the
annuity starting date. If the annuity starting date precedes
the year in which the participant reaches age 70, the
applicable distribution period for the participant is the
distribution period for age 70 under the Uniform Lifetime
Table set forth in Section 1.401(a)(9) -9 of the Treasury
regulations plus the excess of 70 over the age of the
participant as of the participant's birthday in the year that
contains the annuity starting date. If the participant's spouse
is the participant's sole designated beneficiary and the form
of distribution is a period certain and no life annuity, the
period certain may not exceed the longer of the participant's
applicable distribution period, as determined under this
Subparagraph (3)(B), or the joint life and last survivor
expectancy of the participant and the participant's spouse as
determined under the Joint and Last Survivor Table set forth
in Section 1.401(a)(9) -9 of the Treasury regulations, using
the participant's and spouse's attained ages as of the
participant's and spouse's birthdays in the calendar year that
contains the annuity startina date.
(4) Form of Distribution. Unless the participant'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 Subparagraphs (4)(A), (4)(B) and (4)(C)
below. If the participant'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 the Treasury regulations. Any
12
rt of the aarticioant's interest which is in the form of an individual
account described in Section 414() of the Code will be distributed
in a manner satisfying the requirements of Section 401(a)(9) of the
Code and the Treasury reaulations that aaaly to individual
accounts.
(A) General Annuity Requirements. If the participant's
interest is paid in the form of annuity distributions under the
Plan, payments under the annuity will satisfy the following
requirements:
the annuitv distributions will be aaid in periodic
payments made at intervals not longer than one year;
(ii) the distribution period will be over a life (or
lives) or over a period certain, not longer than the
distribution period described in Paragraphs 2 or 3
above, whichever is applicable, of this Subsection (c);
NO once payments have begun over a period
certain, the period certain will not be changed even if
the aeriod certain is shorter than the maximum
permitted;
M oavments will either be non - increasina or
increase only as follows:
(1) by an annual percentage increase that
does not exceed the annual percentage
increase in a cost -of- living index that is based
on prices of all items and issued by the Bureau
of Labor Statistics;
(11) to the extent of the reduction in the
amount of the participant's payments to provide
for a survivor benefit upon death, but only if the
beneficiary whose life was being used to
determine the distribution period dies or is no
longer the participant's beneficiary pursuant to
a qualified domestic relations order within the
meanina of Section 414(0) of the Code:
(III) to provide cash refunds of employee
contributions upon the participant's death; or
13
to Dav increased benefits that result
from a Plan amendment.
(B) Amount Required to be Distributed by Required
Beginning Date. The amount that must be distributed on or
before the participant's Required Beginning Date (or, if the
participant dies before distributions begin, the date
distributions are required to begin under Subparagraph
(2)(A)(i) or (2)(A)(ii), whichever is applicable) 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., bi- monthly, monthly, semi-
annually, or annually. All of the participant'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
participant's Required Beginning Date.
(C) Additional Accruals After First Distribution Calendar
Year. Any additional benefits accruing to the participant in a
calendar year after the first distribution calendar year will be
distributed beginning with the first payment interval ending in
the calendar vear immediately followina the calendar vear in
which such amount accrues.
(5) For purposes of this Subsection (c), distributions are
considered to begin on the participant's Required Beginning Date.
If annuity payments irrevocably commence to the participant (or to
the participant's Surviving Spouse) before the participant's
Required Beginning Date (or, if to the participant's Surviving
Spouse, before the date distributions are required to begin in
accordance with Subparagraph (2)(A) above), the date distributions
are considered to beain is the date distributions actuallv
commence.
Definitions.
(A) Designated beneficiary. The individual who is
designated as the beneficiary under the Plan and is the
designated beneficiary under Section 401(a)(9) of the Code
and Section 1.401(a)(9) -1, Q &A -4, of the Treasury
regulations.
14
Distribution calendar vear. A calendar vear for which
a minimum distribution is required. For distributions
beginning before the participant's death, the first distribution
calendar year is the calendar year immediately preceding
the calendar year which contains the participant's Required
Beginning Date. For distributions beginning after the
participant's death, the first distribution calendar year is the
calendar year in which distributions are required to begin
pursuant to Paragraph (2) of this Subsection (c).
(C) Life expectancy. Life expectancy as computed by use
of the Single Life Table in Section 1.401(a)(9) -9 of the
Treasury regulations.
(d) (1) Notwithstanding any provision of the Plan to the contrary that
would otherwise limit a distributee's election under this Section, a
distributee may elect, at the time and in the manner prescribed by the
Administrator, to have any portion of an eligible rollover distribution paid
directly to an eligible retirement plan specified by the distributee in a direct
rollover.
Definitions
The following definitions apply to this Section:
(A) Eligible rollover distribution: An eligible rollover
distribution is any distribution of all or any portion of the
balance to the credit of the distributee, except that an eligible
rollover distribution does not include:
(i) any distribution that is one of a series of
substantially equal periodic payments (not less
frequently 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
distributee's designated beneficiary, or for a specified
period of 10 years or more;
(ii) any distribution to the extent such distribution
is required under Section 401(a)(9) of the Code;
(iii) the portion of any distribution that is a hardship
distribution described in Section 401(k)(2)(B)(i)(IV) of
the Code: and
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(iv) the portion of any distribution that is not
includible in gross income (determined without regard
to the exclusion for net unrealized appreciation with
respect to employer securities), provided that a
portion of a distribution shall not fail to be an eligible
rollover distribution merely because the portion
consists of after -tax Employee contributions which are
not includible in gross income. However, such portion
may be transferred only to an individual retirement
account or annuity described in Section 408(a ) or (b)
of the Code, or to a qualified defined contribution plan
described in Section 401 (a) or 403() of the Code that
agrees to separately account for amounts so
transferred, including separately accounting for the
portion of such distribution which is includible in gross
income and the portion of such distribution which is
not so includible.
(3) Eligible retirement plan: An eligible retirement plan is an
individual retirement account described in Section 408() of the
Code, an individual retirement annuity described in Section 408(b)
of the Code, an annuity plan described in Section 403(a) of the
Code, an annuity contract described in Section 403(b) of the Code,
a qualified trust described in Section 401 (a) of the Code, 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 and
which agrees to separately account for amounts transferred into
such plan from this Plan, or, with respect to distributions on or after
January 1, 2008, a Roth IRA (subject to the limitations of Code
Section 408A(c)(3)) that accepts the distributee's eligible rollover
distribution.
(4) Distributee: A distributee includes an Employee or former
Employee. In addition, the Employee's or former Employee's
surviving spouse and the Employee's or former Employee's spouse
or former spouse who is the alternate payee under a qualified
domestic relations order, as defined in Section 414(p) of the Code,
are distributees with regard to the interest of the spouse or former
spouse. Furthermore, effective January 1, 2007, a surviving
designated beneficiary as defined in Section 401(a)(9)(E) of the
Code who is not the surviving spouse and who elects a direct
rollover to an individual retirement account described in Section
408(x) of the Code or an individual retirement annuity described in
Section 408(b) of the Code shall be considered a distributee.
16
(5) Direct rollover: A direct rollover is a payment by the Plan to
the eligible retirement plan specified by the distributee.
(e) Notwithstanding any other provision of this Plan, the maximum
amount of any mandatory distribution, as defined in Section 401(a)(31) of
the Code, payable under the Plan shall be $1000.
(f) Compensation Limitations Under 401(a)(17):
In addition to other aaalicable limitations set forth in the Plan, and
notwithstanding any other provision of the Plan to the contrary, the annual
compensation of each participant taken into account under the Plan shall
not exceed the EGTRRA annual compensation limit for limitation years
beginning after December 31, 2001. The EGTRRA annual compensation
limit is $200,000, as adjusted by the Commissioner for increases in the
cost of living in accordance with Section 401(a)(17)(B) of the Code. The
cost -of- living adjustment in effect for a calendar year applies to any period,
not exceeding 12 months, over which Compensation is determined
(determination period) beginning in such calendar year. If a determination
period consists of fewer than 12 months, the EGTRRA annual
compensation limit will be multiplied by a fraction, the numerator of which
is the number of months in the determination period, and the denominator
of which is 12.
Any reference in the Plan to the limitation under Section 401 (a)(17)
of the Code shall mean the EGTRRA annual compensation limit set forth
in this provision.
SECTION 4. Section 38 -66 of the Code of Ordinances, entitled "Distribution of
Benefits ", is hereby repealed /deleted in its entirety and all following sections
relettered /renumbered accordingly:
17
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SECTION 4. Section 38 -74 of the Code of Ordinances, entitled "Direct transfers
of eligible rollover distributions ", is hereby repealed /deleted in its entirety and all
following sections relettered /renumbered accordingly:
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SECTION 4. Section 38 -74 of the Code of Ordinances, entitled "Direct transfers
of eligible rollover distributions ", is hereby repealed /deleted in its entirety and all
following sections relettered /renumbered accordingly:
ON
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SECTION 5. Section 38 -78(8) and (9) of the Code of Ordinances, entitled
"Supplemental benefit; F.S. ch. 175 share accounts" are hereby repealed /deleted in
their entirety and any and all following subsections relettered /renumbered accordingly:
Sec. 38 -78. Supplemental benefit; F.S. ch. 175 share accounts.
There is hereby established an additional supplemental retirement,
termination, death and disability benefit to be in addition to the benefits
provided for in the previous sections of this division, such benefit to be
funded solely and entirely by the premium tax monies received pursuant to
F.S. Chapter 175.
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SECTION 5. Section 38 -78(8) and (9) of the Code of Ordinances, entitled
"Supplemental benefit; F.S. ch. 175 share accounts" are hereby repealed /deleted in
their entirety and any and all following subsections relettered /renumbered accordingly:
Sec. 38 -78. Supplemental benefit; F.S. ch. 175 share accounts.
There is hereby established an additional supplemental retirement,
termination, death and disability benefit to be in addition to the benefits
provided for in the previous sections of this division, such benefit to be
funded solely and entirely by the premium tax monies received pursuant to
F.S. Chapter 175.
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(1) Individual member share accounts. The board shall create individual
member share accounts and maintain appropriate books and records
showing the respective interest of each member hereunder. Each member
shall have a member share account for his share of the Chapter 175 tax
revenues, forfeitures and income and expense adjustments relating
thereto. The board shall maintain a separate membership share account
for each member, however, the maintenance of separate accounts is for
accounting purposes only and a segregation of the assets of the trust fund
to each account shall not be required.
(2) Share account funding.
a. Individual member share accounts shall be created with all of
the monies received from Chapter 175, Florida Statutes, tax
revenues in June 1999, plus any supplemental tax revenue
amounts received in fiscal year 98 -99 and all similar tax revenues
received in subsequent fiscal years. Commencing with the payment
received in fiscal year 2004 and each year thereafter, two percent
of the total salaries for all members during the prior plan year shall
be deducted from the monies received from Chapter 175, Florida
Statutes, tax revenues and credited as additional member
contributions under section 38 -55(1) hereof for said prior plan year.
b. In addition, any forfeitures as provided in subsection (4), shall
be allocated to the individual Member share accounts in
accordance with the formula set forth in subsection (4).
(3) Allocation of monies to share accounts.
a. Allocation of Chapter 175 contributions.
1. Upon receipt of the first premium tax monies attributable
to the previous calendar year (beginning with calendar year
1998), an amount of money equal to the amount determined
under F.S. § 175.122, Limitation of Disbursement, shall be
allocated to individual member share accounts in an amount
directly proportionate to the salary which the member was
paid compared to the total fire department payroll (as
determined under F.S. § 175.122) in the calendar year
preceding the date for which F.S. Chapter 175, tax revenues
were received. In addition, any amount of money described
in subsection (2)a. above attributable to the previous
calendar year and not otherwise distributed pursuant to the
previous sentence, shall be allocated to each individual
member account in an amount directly proportionate to the
number of pay periods for which the member was paid
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compared to the total number of pay periods for which all
members were paid, counting the pay periods in the
calendar year preceding the date for which the F.S. Chapter
175, tax revenues were received.
2. Effective October 1, 2000 (only as to funds received on
or after the effective date of the ordinance adopting this
section), the allocation method in subsection 3.a.1. above
shall be discontinued and premium tax monies received on
or after that date after the deduction of the two percent total
compensation which commences in FY 2004, shall be
allocated as provided for in this paragraph 2. All monies
received from Chapter 175, Florida Statutes, premium tax
rebates, including any supplemental payments, shall be
allocated to individual member share accounts at the end of
each fiscal year on September 30 (a "valuation date ") in an
amount determined as follows:
(i) On each valuation date, each current member of
the plan and each retiree, beneficiary, or terminated
vested person who is otherwise eligible for an
allocation as of the valuation date shall receive a
share allocation in accordance with the following
schedule:
TABLE INSET:
Years of
Credited
Service
Share
Allotment
1 - -3
4
4 - -6
5
7 - -9
6
10 - -12
7
13 - -15
8
16 - -18
9
19 - -21
10
21 - -24
11
25 or more
12
Members with less than one year of credited service
on a valuation date shall receive no allotment. Periods
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of unpaid leave or purchased credited service for
family and medical leave (section 38 -77) or
purchased credited service for military service prior to
employment (section 38 -75) shall not be used in
calculating credited service for purposes of share
allotment. Credited service received as a result of a
separation from employment for military service shall
be used in calculating credited service for purposes of
share allotment. Members (or their beneficiary) who
retire, die or terminate employment other than on a
valuation date shall receive a share allotment based
on their years of credited service, determined as of
the date of retirement, death or termination, multiplied
by the following applicable fraction based upon the
month in which the retirement, death or termination
occurred:
TABLE INSET:
October
.083
April
.583
November
.166
May
.666
December
250
June
.750
January
.333
July
.833
February
.417
August
.917
March
.500
September
1.00
(ii) The total funds subject to allocation on each
valuation date shall be allocated to each share
account of those eligible for an allocation in an
amount equal to a fraction of the total amount with the
individual share allotment for the year as the
numerator of the fraction and the sum of the total
share allotments for the year as the denominator of
the fraction.
b. Allocation of investment gains and losses. On each valuation
date, each individual share account shall be adjusted to reflect the
earnings or losses resulting from investment during the year. The
investment earnings or losses allocated to the individual member
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share accounts shall be in the same percentage as are earned or
lost by the total investment earnings or losses of the fund as a
whole, unless the board dedicates a separate investment portfolio
for the Chapter 175 Florida Statutes share accounts, in which case
the investment earnings or losses shall be measured by the
investment earnings or losses of the separate investment portfolio.
c. Allocation of costs, fees and expenses. On each valuation
date, each individual share account shall be adjusted to allocate the
costs, fees and expenses of administration of the fund. Costs, fees,
and expenses of administration shall be allocated to each individual
member share account on a proportionate basis taking the costs,
fees and expenses of administration of the fund as a whole
multiplied by a fraction, the numerator of which is the total assets in
each individual member share account (after adding the annual
investment gain or loss) and the denominator of which is the total
assets of the fund as a whole.
d. No right to allocation. The fact of allocation or credit of an
allocation to a member's share account by the board shall not vest
in any member, any right, title, or interest in the assets of the trust
or in the Chapter 175 tax revenues except at the time or times, to
the extent, and subject to the terms and conditions provided in this
section.
e. Members shall be provided annual statements setting forth their
share account balance as of the end of the plan year.
(4) Forfeitures. Any member who has less than five years of service
credit and who is not otherwise eligible for payment of benefits after
termination of employment with the city as provided for in subsection (5)
shall forfeit his individual member share account or the non - vested portion
thereof. Forfeited amounts shall be redistributed to the other individual
member accounts on each valuation date in an amount determined in
accordance with subsection (3)a.2.
(5) Eligibility for benefits. Any member who terminates employment as a
firefighter with the city, upon application filed with the board, shall be
entitled to be paid the value of his individual member share account,
subject to the following criteria:
a. Retirement benefit.
1. A member shall be entitled to 100 percent of the value of
his share account upon normal or early retirement pursuant
to section 38 -56.
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2. Such payment shall be made as provided in subsection
(6).
b. Termination benefit.
1. In the event that a member's employment as a firefighter
is terminated by reason other than retirement, death or
disability, he shall be entitled to receive an amount equal to
the vested portion of his share account balance. The vested
portion shall be determined in accordance with the schedule
in section 38 -59, subsection (3).
2. Such payment shall be made as provided in subsection
(6).
c. Disability benefit.
1. In the event that a member is determined to be eligible
for either an in -line of duty disability benefit pursuant to
section 38 -58, subsection (1) or a not -in -line of duty disability
benefit pursuant to section 38 -58, subsection (3), he shall be
entitled to 100 percent of the value of his share account.
2. Such payment shall be made as provided in subsection
(6).
d. Death benefit.
1. In the event that a member dies while actively employed
as a firefighter, 100 percent of the value of his share account
shall be paid to his designated beneficiary as provided in
section 38 -61.
(6) Payment of benefits. If a member terminates employment and is
otherwise entitled to receive all or a portion of the balance in the member's
share account, the member's share account shall be valued on the next
valuation date as provided for in subsection (3) above, following
termination of employment. Payment of the calculated share account
balance or the vested portion thereof shall be payable not later than 30
days following the valuation date and shall be paid in one lump sum
payment. No optional forms of payments shall be permitted.
(7) Benefits not guaranteed. All benefits payable under this section 38-
78 shall be paid only from the assets allocated to individual member share
accounts. Neither the city nor the board shall have any duty or liability to
furnish any additional funds, securities or other assets to fund share
account benefits. Neither the board nor any trustee shall be liable for the
24
making, retention, or sale of any investment or reinvestment made as
herein provided, nor for any loss or diminishment of the share account
balances, except due to his or its own negligence, willful misconduct or
lack of good faith. All investments shall be made by the board subject to
the restrictions otherwise applicable to fund investments.
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SECTION 6. Codification of this Ordinance is hereby authorized and directed.
SECTION 7. All Ordinances or parts of Ordinances in conflict herewith be and
the same are hereby repealed.
SECTION 8. If any section, subsection, sentence, clause, phrase of this
ordinance, or the particular application thereof shall be held invalid by any court,
administrative agency, or other body with appropriate jurisdiction, the remaining section,
subsection, sentences, clauses, or phrases under application shall not be affected
thereby.
SECTION 9. This Ordinance shall take effect upon adoption.
PASSED this day of 2010, upon first
reading.
PASSED AND ADOPTED this _ day of 2010, upon
second and final reading.
CITY OF PALM BEACH GARDENS
David J. Levy, Mayor
Bert Premuroso, Vice Mayor
Joseph R. Russo, Council Member
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FOR AGAINST ABSENT
Eric Jablin, Council Member
Jody Barnett, Council Member
ATTEST:
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Patricia Snider, City Clerk
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY
in
City Attorney
30