(a) Pension validity. The Board of Trustees shall have the power to examine the facts upon which any pension shall have been granted or obtained erroneously, fraudulently, or illegally for any reason. The Board is empowered to purge the pension rolls of any person granted a pension under proper or existing law or granted under this article if the pension is found to be erroneous, fraudulent or illegal for any reason; and to reclassify any pensioner who has under any prior or existing law or who shall hereafter under this article be erroneously, improperly, or illegally classified.
(b) False or misleading statements made to obtain retirement benefits prohibited.
(1) It is unlawful for a person to willfully and knowingly make, or cause to be made, or to assist, conspire with, or urge another to make, or cause to be made, any false, fraudulent, or misleading oral or written statement or withhold or conceal material information to obtain any benefit under this plan.
(2) a. A person who violates subparagraph (1) commits a misdemeanor of the first degree, punishable as provided in F.S. Sections 775.082 or 775.083.
b. In addition to any applicable criminal penalty, upon conviction for a violation described in subparagraph (1), a participant or beneficiary of this plan may, in the discretion of the Board of Trustees, be required to forfeit the right to receive any or all benefits to which the person would otherwise be entitled under this plan. For purposes of this subparagraph, “conviction” means a determination of guilt that is the result of a plea or trial, regardless of whether adjudication is withheld.
(c) Incompetence. If any member or beneficiary is a minor or is, in the judgment of the Board, otherwise incapable of personally receiving and giving a valid receipt for any payment due them from the fund, the Board may, unless and until claims have been made by a duly appointed guardian or committee of such person, make such payment or any part thereof to such person’s spouse, children, parent or other person deemed by the Board to have incurred expenses or assumed responsibility for the expenses of such person. Any payments so made shall be a complete discharge of any liability under the system for such payment.
(d) Rights and benefits not subject to legal process. The rights and benefits provided for herein are vested rights of participants in the fund and shall not be subject to attachment, garnishment, execution or any other legal process. However:
(1) The Board shall honor an income deduction order for alimony or child support in accordance with rules and procedures adopted by the Board; and
(2) Upon written request by the retiree, the Board of Trustees may authorize the plan administrator to withhold from the monthly retirement payment funds necessary to:
a. Pay for benefits being received through the city;
b. Pay the certified bargaining agent; or
c. Pay for premiums for accident health and long-term care insurance for the retiree’s spouse and dependents. A retirement plan does not incur liability for participation in this permissive program if its actions are taken in good faith pursuant to F.S. Section 185.05(6).
(e) Lump sum payment of small retirement income. Notwithstanding any provision of the fund to the contrary, if the monthly retirement income payable to any person entitled to benefits hereunder is less than $30 or if the single sum value of the accrued retirement income is less than $5,000 as of the date of retirement or termination of service, whichever is applicable, the Board of Trustees, in the exercise of its discretion, may specify that the actuarial equivalent of such retirement income be paid in lump sum.
(f) Required distributions.
(1) In accordance with section 401(a)(9) of the Internal Revenue Code, all benefits under this plan will be distributed, beginning not later than the required beginning date set forth below, over a period not extending beyond the life expectancy of the member or the life expectancy of the member and a beneficiary.
(2) Any and all benefit payments shall begin by the later of:
a. April 1 of the calendar year following the calendar year of the member’s retirement date; or
b. April 1 of the calendar year following the calendar year in which the member attains age 72, provided the member has not reached age 70.5 by December 31, 2019.
(3) If an employee dies before his or her entire vested interest has been distributed to him or her, the remaining portion of such interest will be distributed at least as rapidly as provided for under this plan.
(g) Internal Revenue Code limits.
(1) Basic limitations. Subject to the adjustments in paragraph (3), the maximum amount of the actual annual retirement income paid in any year with respect to a participant under this plan shall not exceed the dollar amount allowable for any calendar year pursuant to section 415(b) of the Code, as adjusted in such calendar year for increases in the cost of living in accordance with regulations issued by the Secretary of the Treasury under section 415(d) of the Code. For purposes of applying the basic limitation, benefits payable in any form other than a straight life annuity with no ancillary benefits shall be adjusted, as provided by Treasury Regulations, so that such benefits are the actuarial equivalent of a straight life annuity. For purposes of this subsection, the following benefits shall not be taken into account:
a. Any ancillary benefit which is not directly related to retirement income benefits;
b. Any other benefit not required under section 415(b)(2) of the Code and Treasury Regulations thereunder to be taken into account for purposes of the limitation of section 415(b)(1) of the Code.
(2) Participation in other defined benefit plans. The limitation of this subsection with respect to any participant who at any time has been a participant in any other defined benefit plan (as defined in section 414(j) of the Code) maintained by the city shall apply as if the total benefits payable under all defined benefit plans in which the participant has been a participant where payable from one plan.
(3) Adjustments in limitations.
a. In the event the participant's retirement benefits become payable before age 62, the maximum amount of annual retirement income limitation prescribed by this article shall be reduced in accordance with regulations issued by the Secretary of the Treasury pursuant to the provisions of section 415(b) of the Code, so that such limitation (as reduced) equals an annual benefit (beginning when such retirement income begins) which is equivalent to the Code section 415(b) maximum amount of annual retirement income beginning at age 62.
b. In the event the participant's benefit is based on at least 15 years of credited service, the adjustments provided for in subparagraph a. above shall not apply.
c. The reductions provided for in subparagraph a. above shall not be applicable to disability benefits pre-retirement death benefits.
d. In the event the participant’s retirement benefit becomes payable after age 65, for purposes of determining whether this benefit meets the basic limitation set forth in paragraph (1) herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age 65. This adjustment shall be made using an assumed interest rate of 5% and shall be made in accordance with regulations promulgated by the Secretary of the Treasury or his or her delegate.
e. Less than ten years of service. The maximum retirement benefits payable under this article to any participant who has completed less than ten years of credited service with the city shall be the amount determined under paragraph (1) multiplied by a fraction, the numerator of which is the number of the participant’s years of credited service and the denominator of which is ten. The reduction provided for in this subparagraph shall not be applicable to disability benefits or pre-retirement death benefits.
f. Ten thousand dollar limit. Not withstanding the foregoing, the retirement benefit payable with respect to a participant shall be deemed not to exceed the limitations in this subsection if the benefits payable, with respect to such participant under this plan and under all other qualified defined benefit pension plans to which the city contributes, do not exceed $10,000 for the applicable plan year and for any prior plan year and the city has not at any time maintained a qualified defined contributions plan in which the participant participated.
g. Reduction of benefits. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the participant’s benefit under any defined benefit plans in which participant participated, such reduction to be made first with respect to the plan in which participant most recently accrued benefits and thereafter in such priority as shall be determined by the Board and the plan administrator of such other plans, and next, by reducing or allocating excess forfeitures for defined contribution plans in which the participant participated, such reduction to be made first with respect to the plan in which participant most recently accrued benefits and thereafter in such priority as shall be established by the Board and the plan administrator for such other plans provided, however, that necessary reductions may be made in different manner and priority pursuant to the agreement of the Board and the plan administrator of all other plans covering such participant.
h. Cost-of-living adjustments. The limitations as stated herein shall be adjusted annually in accordance with any cost-of-living adjustments prescribed by the Secretary of the Treasury pursuant to section 415(d) of the Code.
(4) Additional limitation on pension benefits. Notwithstanding anything herein to the contrary:
a. The normal retirement benefit or pension payable to a retiree who becomes a participant of the plan on or after January 1, 1980, and who has not previously participated in such plan, shall not exceed 100% of his or her average final compensation. However, nothing contained in this article shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-living increases or adjustments.
b. No participant of the plan shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the participant is already receiving, or will receive in the future, a retirement benefit or pension from a different employer’s retirement plan. This restriction does not apply to social security benefits, military benefits or federal benefits under Chapter 67, Title 10, U.S. Code.
(Ord. No. 10-005, § 2, 2-2-10; Ord. No. 20-010, § 6, 5-19-20)