Section
General Provisions
33.001 Publication of salaries, benefits of city employees
33.002 Military leave; salary
33.003 County Human Rights Ordinance inapplicable
33.004 Affirmative Action Plan
33.005 State and national criminal history checks for certain municipal employees
Employee Strikes
33.015 Definition
33.016 Strikes prohibited
33.017 What constitutes employee's engagement in strike
33.018 Violation by city employee; termination of employment by city
33.019 Right to appeal; hearing procedure
33.020 Amendment of regulations
Retirement
Employees' Retirement Fund
33.025 Pensions and retirement
33.026 Ordinances implemented and ratified
33.027 Transfer of a member to another level of government; continuation in pension plan
33.028 Assets of prior funds
33.029 Coordination of pension benefits
33.030 Tax qualification
33.031 Subchapter amendment or repeal
Firefighter's Pensions and Retirement
33.034 Intent
33.035 Definitions
33.036 Membership
33.037 Board of Trustees
33.038 Finances and fund management
33.039 Contributions
33.040 Benefit amounts and eligibility
33.041 Pre-retirement death
33.042 Disability
33.043 Vesting
33.044 Optional forms of benefits
33.045 Beneficiaries
33.046 Claims procedures
33.047 Reports to Division of Retirement
33.048 Roster of retirees
33.049 Maximum pension
33.050 Distribution of benefits
33.051 Miscellaneous provisions
33.052 Repeal or termination of system
33.053 Exemption from execution; non- assignability
33.054 Pension validity
33.055 Forfeiture of pension
33.056 Conviction and forfeiture
33.057 Direct transfers of eligible rollover distributions
33.058 Assets of prior funds
33.059 Coordination of pension benefits
33.060 Supplemental pension benefit
33.061 Deferred retirement option plan
33.062 Planned retirement benefit; reformed planned retirement benefit
33.063 Amendments to this subchapter
33.064 City of Hollywood Chapter 175 share plan
General Employees' Supplemental Retirement System
33.070 Establishment; purpose
33.071 Definitions
33.072 Eligibility
33.073 Normal retirement
33.074 Early retirement
33.075 Delayed retirement
33.076 Disability benefits
33.077 Preretirement death
33.078 Optional retirement benefits
33.079 Vesting of benefits
33.080 Financing and administration of plan
33.081 Termination of plan; distribution of funds
Firefighter's Supplemental Retirement System
33.095 Establishment; purpose
33.096 Definitions
33.097 Eligibility
33.098 Normal retirement
33.099 Early retirement
33.100 Delayed retirement
33.101 Disability
33.102 Preretirement death
33.103 Vesting of benefits
33.104 Optional retirement benefits
33.105 Financing and administration of plan
33.106 Termination of plan; distribution of funds
33.107 Applicability of certain provisions
Police Officers's Retirement System
33.125 Establishment; purpose
33.126 Definitions
33.127 Eligibility
33.128 Normal retirement
33.129 Optional forms of retirement benefits
33.130 Vesting
33.131 Financing of the system
33.132 The Board of Trustees
33.133 Special provisions regarding members in military service
33.134 Termination of plan and distribution of fund
33.135 Investment of funds
33.136 Miscellaneous provisions
33.137 Coordination of pension benefits
33.138 Amendment
Social Security
33.150 Applicability
33.151 Withholding from compensation of city officials, employees authorized
33.152 Contributions by city
33.153 City Finance Officer as custodian of all funds
33.154 Adoption of federal law by city
33.155 Necessary agreements between city and state authorized
33.156 Compliance with state, federal regulations required
33.157 Firemen's old age and survivor's insurance
Civil Service
33.170 Short title
33.171 Definitions
33.172 General purpose
33.173 Civil service system; exceptions
33.174 Civil Service Board; created; composition; terms; officers, quorum; removal; powers; funding
33.175 Personnel function, administration
33.176 Testing; appointment; qualifications; operations
33.177 Termination; suspension; demotion of permanent employees
33.178 Appeal procedure
33.179 Rules
33.180 Status of present employees, fringe benefits
GENERAL PROVISIONS
At the direction of the City Commission, the City Manager may, on an annual basis, publish in a newspaper of general circulation within the city, a list of the salaries, benefits and costs to the city for city employees. The format of such list shall be approved by the Commission prior to publication. The format may include but shall not be limited to the initials of each employee, a list of salaries, benefits and costs to the city for each employee without identification of the individual employee or a range of salaries, benefits and costs for each classification; however, said list shall not identify employees by name or employee number.
('72 Code, § 2-11) (Ord. O-75-3, passed 1-8-75; Ord. O-82-31, passed 7-7-82; Ord. O-82-49, passed 10-6-82)
All city officials and employees who are members of the United States Military Reserve or Florida National Guard and who are ordered to report for active military service during wartime, or for the purpose of attending to an officially declared natural disaster, in accordance with the provisions of Florida Statutes, shall receive their full salary for their active tour duty. Any and all military base pay received by the employee shall be reimbursed to the city and shall be used to offset the cost of such leave. The city may continue to provide insurance benefits to such eligible officials, employees and their dependents. All city officials and employees shall be employed by the city upon their return from service in accordance with federal law.
('72 Code, § 2-14) (Ord. O-91-09, passed 2-6-91; Am. Ord. O-92-44, passed 9-16-92)
The Broward County human rights ordinance (Ord. O-78-29, as amended) is deemed to be in conflict with this chapter and the civil service system of the city and is hereby declared to be inapplicable to the city as an employer.
('72 Code, § 10½-1) (Ord. O-83-11, passed 4-20-83)
(A) Pursuant to F.S. § 166.0442, as amended from time to time, State and national criminal history record checks shall be required for personnel in the Department of Fire Rescue and Beach Safety.
(B) All prospective personnel in the Department of Fire Rescue and Beach Safety shall be required to authorize the City to conduct all appropriate background screening procedures as a condition of employment with the City, including but not limited to obtaining fingerprints.
(C) Fingerprints obtained pursuant to F.S. § 166.442 shall be submitted to FDLE for State criminal history records checks, which shall be forwarded by FDLE to the FBI for national criminal history records checks, or as in accordance with FDLE and FBI procedures, as amended from time to time.
(D) The information obtained for each criminal history record check conducted under this section shall be used to determine a person’s eligibility for employment and eligibility for continued employment.
(E) This section is not intended to preempt or prevent any other background screening, including but not limited to criminal history background checks that the City may lawfully undertake.
(Ord. O-2023-07, passed 5-3-23)
EMPLOYEE STRIKES
For the purpose of this subchapter, the following definition shall apply unless the context clearly indicates or requires a different meaning.
STRIKE. The concerted failure of employees to report to duty; the concerted absence of employees from their positions; the concerted stoppage of work by employees; the concerted submission of resignations by employees; the concerted abstinence in whole or in part by any group of employee from the full and faithful performance of their duties of employment with the city, for the purpose of inducing, influencing, condoning or coercing a change in the terms and conditions of employment, or the rights, privileges or obligations of their employment with the city; participating in a deliberate and concerted course of conduct which adversely affects the services of the city; the concerted failure of employees to report for work after the expiration of a collective bargaining agreement; and picketing in furtherance of a work stoppage.
('72 Code, § 2-35) (Ord. O-75-114, passed 11-5-75)
(A) No employee shall be deemed to have violated the provisions of this subchapter unless said employee engages in a strike not less than eight hours after issuance of a written proclamation by the City Manager indicating that a strike is occurring and that all city employees are to report to their next regularly scheduled work assignment.
(1) Such proclamation must be issued forthwith by the Manager upon his knowledge that a strike is taking place.
(2) The City Commission, at a regular or special session, may direct the Manager to issue such proclamation.
(3) Such proclamation must be posted in the lobby of the city administrative center and must be disseminated to the news media upon its issuance.
(4) No employee shall be required to be served with or have personal knowledge of such proclamation, in order for the full sanctions of this subchapter to be applicable, provided the time period specified hereinabove is complied with.
(5) After completion of said time period, the Manager must immediately process and execute the personnel action forms necessary to formally acknowledge the termination and abandonment of such person's employment, and such action must be communicated to the employee by notice served upon said employee by certified mail.
('72 Code, § 2-33)
(B) For the purposes of this subchapter, any employee who is absent from any portion of his work assignment without lawful permission or who abstains wholly or in part, from the full and faithful performance of his duties without lawful permission on the date or dates when a strike occurs, is presumed to have engaged in a strike on such date or dates.
('72 Code, § 2-34)
(Ord. O-75-114, passed 11-5-75)
(A) Notwithstanding any other provisions of law, any city employee who violates the provisions of this subchapter shall be deemed to have abandoned and terminated his employment, and shall no longer hold such position or be entitled to any of the rights thereof, and shall forfeit their civil service status, job rights and seniority.
('72 Code, § 2-32)
(B) Any city employee who so abandons and terminates his employment shall, subsequent to such violation, not be eligible for appointment or reappointment, or employment or re-employment to any position with the city for a period of three years after such abandonment and termination, except upon the following terms and conditions:
(1) The employee's compensation, direct or indirect, shall in no event exceed that received immediately prior to the time of such abandonment and termination;
(2) The compensation, direct or indirect, of such employee shall not be increased in any manner until after the expiration of one year from his appointment, reappointment, employment or re-employment by the city;
(3) Such employee shall have no seniority rights by virtue of his prior employment with the city;
(4) Such employee shall be on probation for one year with respect to such civil service status or contract of employment as he may have theretofore been entitled, during which time he shall serve at the pleasure of the appointing authority; and
(5) Such employee may be eligible for reinstatement into his respective pension plan on whatever terms and conditions are contained therein.
('72 Code, § 2-36)
(C) No criminal penalties shall be assessed for the violation of the terms of this subchapter.
('72 Code, § 2-39)
(Ord. O-75-114, passed 11-5-75)
Any city employee, upon request, shall be entitled, as hereinafter provided, to establish that he did not violate the provisions of this subchapter.
(A) Such request must be filed in writing with the City Manager, within ten days after service of notice of termination as specified above.
(B) Whereupon the Manager shall within ten days commence an administrative hearing before himself, or his designated hearing officer, at which hearing such employee shall be entitled to be heard for the purpose of determining whether the provisions of this subchapter have been violated by said employee.
(C) All parties shall have an opportunity to present evidence and argument on all issues involved, to conduct cross-examination and submit rebuttal evidence, and to be represented by counsel.
(D) All testimony shall be under oath, the hearing officer shall swear all witnesses, and either party shall have the right to take and preserve a transcript and record of said hearing.
(E) Irrelevant, immaterial or unduly repetitious evidence shall be excluded, but all other evidence of a type commonly relied upon by reasonably prudent persons in the conduct of their affairs shall be admissible, whether or not such evidence would be admissible in a trial in the courts of the state.
(F) Said hearing officer shall reach written findings of fact, based exclusively on the evidence of record and on matters officially recognized, and shall render written judgment on whether or not said employee had violated the terms of this subchapter.
(G) All employees whom the City Manager or the hearing officer, as the case may be, determines not to have violated the terms of this subchapter shall not be subject to any of the sanctions of this subchapter.
('72 Code, § 2-37) (Ord. O-75-114, passed 11-5-75)
No amendment or repeal of this subchapter, either on an emergency basis or during the pendency of a strike by city employees, shall be effective unless the following is met.
(A) A prominent display advertisement shall be published in a newspaper in general circulation in the city, at least three days before the meeting at which such repeal or amendment is to be considered;
(B) Such notice shall clearly indicate the nature of the proposed action, and shall advise all interested parties that they may attend and make their views known;
(C) If such repeal or amendment is during the pendency of a strike, such notice shall have an additional provision clearly indicating that said amendment or repeal is being undertaken due to the demands of striking employees that they be granted amnesty from the sanctions of this subchapter.
('72 Code, § 2-38) (Ord. O-75-114, passed 11-5-75)
RETIREMENT
EMPLOYEES; RETIREMENT FUND
(A) Establishment and purpose.
(1) The "City of Hollywood Employees' Retirement Fund" (the "Fund"), comprising a retirement plan for general employees of the city, originally effective October 1, 1958, is hereby amended. The fund consists of a defined benefit plan and a deferred retirement option plan, both of which are intended to qualify under section 401(a) of the Internal Revenue Code. The plan is a governmental plan under section 414(d) of the Internal Revenue Code. The plan is maintained for the exclusive benefit of eligible city employees and their beneficiaries. The benefits under the plan shall be in addition to amounts received as federal social security benefits, except where social security benefits are specifically applied as offsets in the case of disability benefits hereunder: the benefits under this plan shall also be in addition to benefits received by any member from any other private or public retirement system. Except as otherwise specifically provided, the amended plan shall be effective October 1, 2013. Notwithstanding the foregoing, the following effective dates shall apply.
(a) Division (Y) is amended effective January 1, 2009 to provide for direct rollovers by non-spouse beneficiaries.
(b) The definition of 415 compensation in division (D) is modified to include differential pay effective for "limitation years" beginning after December 31, 2008.
(c) Division (D)(5) is amended, effective for employees who die after December 31, 2006 while engaged in qualified military service, to provide that they shall be treated as having returned to employment immediately prior to death for certain plan purposes.
(2) It is the legislative intent and purpose of this subchapter to provide certain retirement, disability, death and withdrawal benefits to officers and employees of the city in the amounts and under the terms and conditions herein set forth.
(3) The purpose of the Fund is to provide an orderly means whereby employees of the city who become superannuated or otherwise incapacitated as the result of age or disability may be retired from active service without prejudice and without inflicting a hardship upon the employees retired, and to enable such employees to accumulate reserves for themselves and their beneficiaries to provide for old age, disability, death, and termination of employment, thus effecting economy and efficiency in the administration of city government.
(4) A new contribution and benefit structure is hereby established for employees hired on or after July 15, 2009. Such employees will be members of the Employees Retirement Fund of the City of Hollywood; however, the contributions and benefits for such employees are as set forth in divisions (AA) and (JJ) of this section.
(5) (a) The benefit structure in effect on September 30, 2011 is frozen at midnight on that date for general fund members. All general fund members will be vested in benefits accrued to that date and payable under the terms and conditions of plan provisions then in effect. No additional benefits of any kind shall accrue to general fund members under the frozen benefit structure. Effective October 1, 2011, general fund members are subject to a new benefit structure applicable to future service as set forth in this § 33.025.
(b) Notwithstanding any provision contained in this § 33.025 to the contrary, for any general fund member who becomes eligible to retire with normal retirement benefits on or before September 30, 2011 and is so eligible on September 30, 2011, the benefit structure in effect on September 30, 2011 shall remain in effect beyond September 30, 2011 and shall not be frozen; provided, however, that any such member who does not enter the DROP on or before September 30, 2011 shall not be eligible to participate in the DROP.
(6) (a) The benefit structure in effect on March 4, 2014 is frozen at midnight on that date for non-general fund members. All non-general fund members will be vested in benefits accrued to that date and payable under the terms and conditions of plan provisions then in effect. No additional benefits of any kind shall accrue to non-general fund members under the frozen benefit structure. Effective March 5, 2014, non-general fund members are subject to a new benefit structure applicable to future service as set forth in this section.
(b) Notwithstanding any provision contained in this section to the contrary, for any non-general fund member who becomes eligible to retire with normal retirement benefits on or before March 4, 2014 and is so eligible on March 4, 2014, the benefit structure in effect on March 4, 2014 shall remain in effect beyond March 4, 2014 and shall not be frozen; provided, however, that any such member who does not enter the DROP on or before March 4, 2014 shall not be eligible to participate in the DROP.
(7) Any member who, during the period beginning October 1, 2011 and ending March 4, 2014, transfers between a position in which he or she is a general fund member and a position in which he or she is a non-general fund member shall be subject to the benefit structure applicable to general fund members for all periods of time during which he or she is a general fund member and shall be subject to the benefit structure applicable to non-general fund members for all periods of time during which he or she is a non-general fund member.
(B) Definitions. For purposes of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ACTUARIAL EQUIVALENT. A benefit or amount of equal value, based upon the 1983 Group Annuity Mortality Table for males and an interest rate of 8% per annum, or such other rate that is recommended by the actuary and approved by the Board.
AVERAGE FINAL COMPENSATION. For a member hired prior to July 15, 2009, means monthly average compensation for the highest 78 consecutive bi-weekly pay periods of credited service. Payments for accumulated sick and annual leave received by such member following separation from employment and included in compensation in accordance with the definition of COMPENSATION below shall be deemed to have been received in the final pay period for the purpose of this definition. AVERAGE FINAL COMPENSATION for members hired on or after July 15, 2009 but prior to October 1, 2011, and separated from city service prior to June 19, 2019, is set forth in division (AA) below. AVERAGE FINAL COMPENSATION for members hired on or after October 1, 2011, but prior to March 5, 2014, and separated from city service prior to June 19, 2019, is set forth in division (CC) below. AVERAGE FINAL COMPENSATION for general fund members hired on or after October 1, 2011 and non-general fund members hired on or after March 5, 2014 is set forth in division (DD) below. The definition of AVERAGE FINAL COMPENSATION set forth above is frozen at midnight on September 30, 2011 for general fund members and at midnight on March 4, 2014 for non-general fund members. Under the benefit structure effective October 1, 2011 for general fund members and effective March 5, 2014 for non- general fund members, a definition of AVERAGE FINAL COMPENSATION for members hired prior to July 15, 2009, and separated from city service prior to June 19, 2019, is set forth in division (BB) below. AVERAGE FINAL COMPENSATION for members hired prior to March 5, 2014 and employed by the city as of June 19, 2019 is set forth in division (JJ) below.
BENEFICIARY. The person or persons entitled to receive benefits hereunder upon the death of a member who has or have been designated in writing by the member and filed with the pension coordinator in accordance with the provisions of this pension plan.
BOARD. The Board of Trustees, which shall administer the pension plan as provided herein.
CITY. The City of Hollywood, Florida.
CITY COMMISSION. The City Commission of the city.
CODE. The U.S. Internal Revenue Code of 1986, as amended from time to time.
COMPENSATION. A member's gross wages received from the city, including overtime and payments for accumulated annual leave and accumulated sick leave, except as provided below:
(a) For members who retire or enter the DROP on or after January 3, 2001 and prior to October 1, 2002, compensation shall include payments for accumulated sick and annual leave received by such member.
(b) For members hired prior to October 1, 2002 and employed by the city on that date, compensation shall include payments for accumulated annual leave, but the amount of accumulated sick leave included in such member's compensation shall not exceed the amount accumulated as of October 1, 2002 (including the maximum limitation as of October 1, 1994).
(c) For members most recently hired after October 1, 2002 compensation shall include payments for accumulated annual leave, but no payment for accumulated sick leave shall be included in such member's compensation.
(d) For members hired prior to July 15, 2009 who retire or enter the DROP on or after August 17, 2009, compensation shall exclude all earnings and payouts for blood time and compensatory time. In addition, the payouts for accumulated annual leave that may be counted as compensation for such members shall not exceed 125 hours for employees who retire from a position covered by the general employees' bargaining unit; and shall not exceed 60 hours per year for employees who retire from a position not covered by the general employees' bargaining unit.
(e) Compensation for members hired on or after July 15, 2009 but prior to October 1, 2011 is set forth in divisions (AA) and (JJ) below, compensation for members hired on or after October 1, 2011 but prior to March 5, 2014 is set forth in divisions (CC) and (JJ) below, and compensation for members hired on or after March 5, 2014 is set forth in division (DD) below.
(f) Employee-elective salary reductions or deferrals to any salary reduction, deferred compensation, or tax-sheltered annuity program authorized under the rules of the Internal Revenue Service Code shall be included in compensation for retirement purposes. Compensation in excess of the limitations set forth in Section 401(a)(17) of the Internal Revenue Code, adjusted in accordance with U.S. Treasury Department regulations, shall be disregarded.
The definition of compensation set forth above is frozen at midnight on September 30, 2011 for general fund members hired prior to July 15, 2009 and at midnight on March 4, 2014 for non-general fund members hired prior to July 15, 2009. Under the benefit structure effective October 1, 2011 for general fund members hired prior to July 15, 2009 and effective March 5, 2014 for non-general fund members hired prior to July 15, 2009, a definition of compensation is set forth in divisions (BB) and (JJ).
DIRECT ROLLOVER. A payment to an eligible retirement plan specified by the distributee in accordance with division (Y) below.
EMPLOYEE. Any person employed by the city on a full-time basis whose services are compensated in whole or in part by the city, with or without grant funds, including all employees hired on or after the effective date of this subchapter whose services are compensated on a
contractual basis. All references to employees in this plan shall mean both sexes and where the male gender is used, it shall be construed to include male and female employees.
FUND. The pension fund established as part of this retirement plan.
GENERAL FUND MEMBER. Any member paid out of the city's general fund and/or other city funds, with the exception of the water and sewer utility, stormwater utility, parking and sanitation funds.
MEMBER. Any employee who participates in the fund in accordance with the provisions of this plan, and any retiree.
PENSION COORDINATOR. The person or entity appointed in accordance with division (S)(9) of this plan.
REGULAR INTEREST. Interest at the rate fixed by the Board from time to time based upon the long-term rate of income earnable on investments but not less than 4% per annum.
RETIREE. Any member who receives benefits under the provisions of this plan, including DROP participants.
RETIREMENT. A member's separation from city employment with eligibility for and actual receipt of benefits under this retirement plan, or entry into the DROP.
RETIREMENT PLAN or PLAN. The Employee's Retirement Fund of the City of Hollywood as set forth herein and as it has been and may be amended from time to time.
SPOUSE. The lawful wife or husband of a member.
(C) Membership. All employees and retirees shall be compulsory members of this plan, except for the following:
(1) The City Manager and City Attorney, who may participate in the plan with the approval of the City Commission;
(2) Employees who serve as active city law enforcement officers or firefighters and who are required to be certified as law enforcement officers or firefighters in accordance with state law;
(3) Seasonal and part-time employees;
(4) Elected officials;
(5) Independent contractors;
(6) Employees hired prior to the effective date of this subchapter who are employed by the city on that date, whose services are compensated on a contractual basis, and who do not elect to participate in this plan in accordance with division (D)(7) below.
(D) Credited service. Each member shall receive credit for service rendered as an employee as follows:
(1) Any employee in the service of the city on September 30, 1958, or on sick leave or on an approved leave of absence on such date, provided such leave shall not have extended for more than six months after such date, shall be entitled to credit for service rendered as an employee of the city prior to October 1, 1958, for the purpose of the Fund.
(2) Each person becoming a member of the Fund after September 30, 1958, shall be entitled to credited service for all service rendered the city on or after October 1, 1958, for which he or she shall have received compensation; provided, however, that no credited service shall be earned after a member has entered the DROP plan as herein described.
(3) In computing credited service, 12 months of service shall constitute a year of service and 15 days or more of service during any month shall constitute a month of service.
(4) A member may receive additional credited service for up to six months in the last year of city employment by paying into the Fund the member contributions that normally would have been paid to the Fund had the employee worked the necessary time to complete the year. Additional credited service purchased in accordance with this division may not be used to obtain the minimum service required for vesting or participation in the DROP plan or planned retirement benefit.
(5) An employee shall receive credited service for all purposes, including vesting, for the years or fractional parts of years that he or she performs "Qualified Military Service," including voluntary or involuntary service, in the armed forces of the United States as defined in the Uniformed Services Employment and Reemployment Rights Act (USERRA) (P.L. 103-353), after separation from employment with the city, to perform training or service, provided that:
(a) The employee must return to his or her employment with the city within one year following the date of military discharge or his or her release from active service;
(b) The employee is entitled to reemployment under the provisions of USERRA;
(c) The employee pays to the plan the amount he or she would have contributed to the plan as pick-up contributions if his or her employment would have continued during the period he or she was absent due to qualified military service. Such payment must be made by the earlier of a period equal to three times the period of absence or five years after reemployment;
(d) The maximum credit for military service pursuant to this division shall be five years;
(e) This division (D)(5) is intended to satisfy the minimum requirements of USERRA. as may be amended from time to time. To the extent that this division does not meet the minimum requirements of USERRA. the provisions of USERRA shall govern.
If an employee dies on or after January 1, 2007 while performing qualified military service as defined by USERRA, the employee's beneficiaries shall be entitled to any benefits to which the employee would have been entitled had he or she resumed employment and then died while employed.
Beginning January 1, 2009, to the extent required by section 414(u)(12) of the Internal Revenue Code, an individual receiving differential wage payments, as defined under section 3401(h)(2) of the Internal Revenue Code, from the city shall be treated as employed by the city, and the differential wage payment shall be treated as compensation for purposes of applying the limits on annual additions under section 415(c) of the Internal Revenue Code. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner.
(6) Any person who was a member of this plan on June 4, 2003 and employed by the city on January 3, 2001 may purchase credited service under the plan for all prior periods of city employment in a position eligible for membership in the plan in accordance with division (C) above, that were not included in the member's credited service; provided that credited service for prior city employment as a CETA, BETA or temporary employee may be purchased only by members who are employed in a position covered by this plan at the time of such purchase. Such member may enter into an agreement at any time prior to separation from city employment to purchase such credited service by paying a contribution of 7% of the compensation received during the period of prior employment, plus a buy-back fee of 4% of the total contribution amount. If the total contribution amount and buy-back fee is not fully paid by the time the member leaves city employment, an additional 6½% fee will be charged on the unpaid balance remaining when the member separates from city employment. Payments for the purchase of credited service made pursuant to this division must be made using any one or a combination of the following options:
(a) Cash lump sum payment.
(b) Direct transfer or rollover of an eligible rollover distribution from a qualified plan, in accordance with division (Y) below.
(c) Time payment plan. Under this option the member may elect to pay any remaining balance due for the purchase of credited service through a time payment plan approved by the city and the employee. Under such plan, bi-weekly payments shall be deducted from the member's compensation, and if there is any remaining balance due upon separation from city employment, monthly payments shall be deducted from the member's monthly pension benefit until the remaining balance is fully paid; provided that the deduction shall not exceed 20% of the member's gross monthly pension benefit.
(7) Employees hired prior to the effective date of this subchapter who are employed by the city on that date, whose services are compensated on a contractual basis, may elect to participate in this plan by submitting a written election to participate, on a form approved by the city, within one year following the effective date of this subchapter. Any such member may purchase credited service under the plan for all prior periods of city employment in a position eligible for membership in the plan in accordance with division (C) above, under the same conditions and options as provided for the purchase of credited service under division (D)(6) above. The election to participate in the plan under this division (7) shall be irrevocable. Any person who is eligible to become a member of the plan under this division (7) who does not submit a timely written election to participate in accordance with this division shall not be eligible to participate in the plan for as long as he or she is compensated on a contractual basis.
(8) Notwithstanding anything to the contrary contained in this plan, a member who is receiving retirement benefits under this Fund which are based on previous employment with the city shall not be required to make member contributions and shall not accrue additional benefits or receive additional credited service for any additional periods of employment. A member who retired pursuant to the Early Retirement Incentive Plan created by Ordinance No. O-94-34 shall not thereafter be eligible for full or part-time city employment.
(9) Notwithstanding any other provision of this subchapter, effective October 1, 2005, any former member of this plan who is employed as a city police officer on the effective date of this division, and has credited service under this plan with an accrued benefit rate of less than 3% per year, may purchase the difference between the accrued benefit rate and 3% per year by paying the full actuarial cost of such difference. Full payment for this additional accrued benefit rate must be made within 60 days following the effective date of this division.
(10) Any city employee who, on March 5, 2014, is a contributing member of this plan may purchase credited service under the plan for each period of prior city employment in a permanent full-time position that was not eligible for membership in a defined benefit retirement plan of the city. Such member may enter into an agreement at any time prior to separation from city employment to purchase such credited service by paying a contribution of 8% of the compensation received during the period of prior employment, plus a buy-back fee of 4% of the total contribution amount. If the total contribution amount and buy-back fee is not fully paid by the time the member leaves city employment, an additional 6-1/2% fee will be charged on the unpaid balance remaining when the member separates from city employment. Payments for the purchase of credited service made pursuant to this division must be made using any one or a combination of the following options:
(a) Cash lump sum payment.
(b) Direct transfer or rollover of an eligible rollover distribution from a qualified plan, in accordance with division (Y) below.
(c) Time payment plan. Under this option the member may elect to pay any remaining balance due for the purchase of credited service through a time payment plan approved by the city and the employee. Under such plan, bi-weekly payments shall be deducted from the member's compensation, and if there is any remaining balance due upon separation from city employment, monthly payments shall be deducted from the member's monthly pension benefit until the remaining balance is fully paid; provided that the deduction shall not exceed 20% of the member's gross monthly pension benefit.
(11) Notwithstanding anything to the contrary contained in this section, any city employee who is a contributing member of this plan may purchase credited service under the plan for each period of prior or current city employment in a full-time position during which he or she was not a member of a contributory, defined benefit retirement plan of the city. Such member may enter into an agreement at any time prior to separation from city employment to purchase such credited service by paving a contribution of 8% of the compensation received during the period of prior employment, plus a buy-back fee of 4% of the total contribution amount. If the total contribution amount and buy-back fee is not fully paid by the time the member leaves city employment, an additional 6.5% fee will be charged on the unpaid balance remaining when the member separates from city employment. Payments for the purchase of credited service made pursuant to this division must be made using any one or a combination of the following options:
(a) Cash lump sum payment;
(b) Direct transfer or rollover of an eligible rollover distribution from a qualified plan, in accordance with division (Y) below; and/or
(c) Time payment plan. Under this option, the member may elect to pay any remaining balance due for the purchase of credited service through a time payment plan approved by the city and the employee. Under such plan, bi-weekly payments shall be deducted from the member's compensation, and if there is any remaining balance due upon separation from city employment, monthly payments shall be deducted from the member's monthly pension benefit until the remaining balance is fully paid: provided that the deduction shall not exceed 20% of the member's gross monthly pension benefit.
(E) Normal retirement date.
(1) A member hired prior to July 15, 2009 who separates from city employment on or after July 1, 1999 may retire with normal retirement benefits upon attaining 25 years of credited service regardless of age, or upon reaching age 55 with at least five years of credited service, subject, however, to the additional provisions applicable to such a member under the benefit structure effective October 1, 2011 for general fund members and effective March 5, 2014 for non-general fund members as specified in divisions (BB) and (JJ) below.
(2) A member who separates from city employment on or after November 7, 1990 and before July 1, 1999 may retire with normal retirement benefits upon attaining 25 years of credited service regardless of age, or upon reaching age 55 with at least ten years of credited service.
(3) A member who separates from city employment prior to November 7, 1990 may retire with normal retirement benefits upon attaining age 55 with at least 25 years of credited service, or upon reaching age 62 with at least ten years of credited service.
(4) The normal retirement date for members hired on or after July 15, 2009 but prior to October 1, 2011 is specified in divisions (AA) and (JJ) below.
(5) The normal retirement date for members hired on or after October 1, 2011 but prior to March 5, 2014 is specified in divisions (CC) and (JJ) below.
(6) The normal retirement date for members hired on or after March 5, 2014 is specified in division (DD) below.
(F) Normal retirement benefit.
(1) The retirement benefit payable to a member hired prior to July 15, 2009 who separates from city employment on or after October 1, 1998 shall be 3% of average final compensation multiplied by years of credited service, up to a maximum of 27 years of credited service and a maximum pension rate of 81%. Such benefit shall be payable on the member's normal retirement date and separation from city employment. The normal retirement benefit specified in this paragraph is frozen at midnight on September 30, 2011 for general fund members and at midnight on March 4, 2014 for non-general fund members. The normal retirement benefit for general fund members hired prior to July 15, 2009, under the benefit structure effective October 1, 2011, and for non-general fund members hired prior to July 15, 2009, under the benefit structure effective March 5, 2014, is specified in divisions (BB) and (JJ) below.
(2) The retirement benefit payable to a member who separates from city employment on or after February 1, 1974 and before October 1, 1998 with ten or more years of credited service shall be 2.5% of average final compensation multiplied by years of credited service, up to a maximum of 30 years of credited service and a maximum pension rate of 75%, excluding those members who retired pursuant to the Early Retirement Incentive Plan created by Ordinance No. O-94-34. Such benefit shall be payable on the member's normal retirement date and separation from city employment.
(3) The normal retirement benefit for members hired on or after July 15, 2009 but prior to October 1, 2011 is specified in divisions (AA) and (JJ) below.
(4) The normal retirement benefit for members hired on or after October 1, 2011 but prior to March 5, 2014 is specified in divisions (CC) and (JJ) below.
(5) The normal retirement benefit for members hired on or after March 5, 2014 is specified in division (DD) below.
(G) Deferred vested retirement.
(1) Any member hired prior to July 15, 2009, irrespective of age, who separates from city employment on or after July 1, 1999 after having completed at least five years of credited service prior to October 1, 2011 and does not receive a refund of contributions, and any member hired prior to July 15, 2009, irrespective of age, who separates from city employment on or after October 1, 2011 after having completed at least five years of credited service consisting of any combination of credited service (i) as a member of any kind prior to October 1, 2011 and (ii) as a member other than a general fund member on or after October 1, 2011 but prior to March 5, 2014, shall have the right to receive a service retirement benefit beginning at age 55 based on the benefit formula in effect on the date of separation from city employment and years of credited service and average final compensation on that date. Deferred vested retirement for members hired prior to July 15, 2009 is further specified in divisions (BB) and (JJ) below.
(2) Any member, irrespective of age, who separated from city employment before July 1, 1999 after having completed at least ten years of credited service and did not receive a refund of contributions shall have the right to receive a service retirement benefit beginning at age 62,based on the benefit formula in effect on the date of separation from city employment and years of credited service and average final compensation on that date.
(3) Deferred vested retirement for members hired on or after July 15, 2009 but prior to October 1, 2011 is set forth in divisions (AA) and (JJ) below.
(4) Deferred vested retirement for members hired on or after October 1, 2011 but prior to March 5, 2014 is set forth in divisions (CC) and (JJ) below.
(5) Deferred vested retirement for members hired on or after March 5, 2014 is set forth in division (DD) below.
(H) Deferred retirement option plan.
(1) A deferred retirement option plan ("DROP plan") is hereby created.
(2) An employee covered by this plan and hired prior to July 15, 2009 may enter into the DROP plan on the earlier of the first day of any month following the employee's 55th birthday and tenth-year anniversary of credited service, or the first day of any month following the completion of a total of 25 years of credited service.
Notwithstanding anything to the contrary contained in this retirement plan, any member hired prior to July 15, 2009 who was a member continuously from July 14, 2009 to June 19, 2019 and who has not yet attained normal retirement date on June 19, 2019, shall be eligible to participate in the DROP plan by selecting an entry date on or after the day the member attains normal retirement date.
Notwithstanding anything to the contrary contained in this retirement plan, any member employed on June 19, 2019 and hired prior to July 15, 2009 who was a member continuously from July 14, 2009 to June 19, 2019 who attained normal retirement date and who was not already participating in the planned retirement benefit before June 19, 2019 who wants to participate retroactively in the DROP plan must submit an irrevocable written election/decision within 60 days after June 19, 2019 to participate retroactively in the DROP plan starting on or after the date the member attained normal retirement date. Such members shall receive a return of their contributions made from the dates they designate as the commencement of their DROP plan participation period, and continuing through the dates of their election/decision, which shall be added to the participant's DROP plan account.
Notwithstanding anything to the contrary contained in this retirement plan, any member employed on June 19, 2019 and hired prior to July 15, 2009 who was a member continuously from July 14, 2009 to June 19, 2019 who became eligible to retire with normal retirement benefits and who was already participating in the planned retirement benefit before June 19, 2019 who wants to change from the planned retirement benefit to the DROP plan must submit an irrevocable written election/decision within 60 days after June 19, 2019 to change retroactively to the DROP plan starting on or after the date the member attained normal retirement date. Such members shall receive a return of their contributions made from the dates they designate as the commencement of their DROP plan participation period, and continuing through the dates of their election/decision, which shall be added to the participant's DROP plan account.
No member shall receive any benefits from both the DROP plan and the planned retirement benefit. An employee hired on or after July 15, 2009 shall not be eligible to participate in the DROP plan.
(3) An employee electing to participate in the DROP plan must complete and execute the proper forms supplied by the pension coordinator. The effective date of participation in the DROP plan must commence prior to the attainment of 30 years of credited service, or the right of election to participate in the DROP plan shall be forfeited.
(4) The duration and participation in the DROP plan shall be specified and shall not exceed a number of years which, when added to the number of years of all credited service that the member has in the retirement system, exceeds a total of 32 years. In any event, the total participation in the DROP plan shall not exceed five years and participation will end if the employee is terminated for just cause, dies or retires.
(5) A member may participate in the DROP plan only once, and after commencement, the employee shall not again have the right to be a contributing member of the retirement plan.
(6) Upon the effective date of employee commencement of participation in the DROP plan, neither the employee nor the employer contribution will continue to be paid.
(7) For purposes of this retirement plan, average final compensation and credited service shall be determined as of the effective date of commencement of participation in the DROP plan. The monthly retirement benefits ("DROP payments") that would have been payable, had the member elected to cease employment and receive a service retirement benefit, shall be paid into a deferred retirement option account.
(8) DROP payments shall earn interest at a rate set by the Board of Trustees, through the date of termination of the member's participation in the DROP. Notwithstanding the preceding sentence, effective July 1, 2006 for members included in the AFSCME General bargaining unit, May 1, 2007 for members included in the AFSCME Professional and Supervisory units, and July 1, 2007 for members not included in any bargaining unit, DROP payments shall earn interest at the same rate as the net market rate of return on plan assets. For purposes of this division (H), NET MARKET RATE OF RETURN means the rate of return on a market value basis net of investment related expenses for each year ending September 30; however, in no event shall DROP payments earn interest at a rate of less than 0%. Upon termination of a member's participation in the DROP and separation from city employment, the DROP account balance credited to the member shall be distributed to the member under one or a combination of the following options selected by the member in accordance with procedures established by the Board:
(a) A single lump sum payment equal to the balance in the member's DROP account as of the date of termination from the DROP plan; or
(b) A direct rollover to a qualified plan or a direct trustee to trustee transfer to an eligible plan.
(9) The member's selection of a distribution option shall be irrevocable. If the member does not select a distribution option within 60 days following separation from city employment, the DROP account shall be distributed in accordance with option (a) above.
(10) If a participant dies during the period of participation in the DROP plan, a lump sum equal to DROP payments including earned interest to the date of the member's death shall be paid to the named beneficiary or, if no beneficiary is named, to the estate of the employee in addition to any other normal survivorship benefits that would be paid.
(11) A DROP participant may terminate DROP participation and resign from city employment prior to the end of the maximum DROP period. Upon termination of DROP participation and separation from city employment, a member shall receive a distribution of his/her DROP account balance in accordance with division (H)(8) above, and regular monthly service retirement benefit payments shall thereafter commence. If a DROP participant does not separate from city employment at the end of the maximum DROP period, the DROP account will not be credited with additional interest and the member's monthly retirement benefit will not be paid until the member separates from city employment.
(12) If an employee becomes disabled during the period of DROP participation and employment is terminated because of disability, the employee shall receive payment of the DROP account balance as set forth in this section. Thereafter, such member shall receive, at the member's election, a normal retirement benefit calculated in accordance with division (E) above, or a disability retirement benefit calculated in accordance with division (L) below, based on the compensation and years of credited service in effect on the date the DROP participation began.
(13) The Commission may, by ordinance, implement the provisions of the DROP plan.
(I) Service retirement benefit; optional forms.
(1) The retirement benefit to be paid by the system shall be a life annuity, provided that the member shall have an option, prior to the date of retirement, to receive his or her benefit under any of the following forms:
(a) Five years certain and life thereafter. Under this option, the member receives a reduced monthly benefit for life, and if the member dies within five years following retirement, the same monthly benefit is paid to the member's designated beneficiary for the remainder of the five- year period.
(b) Ten years certain and life thereafter. Under this option, the member receives a reduced monthly benefit for life, and if the member dies within ten years following retirement, the same monthly benefit is paid to the member's designated beneficiary for the remainder of the ten-year period.
(c) Twenty years certain and life thereafter. Under this option, the member receives a reduced monthly benefit for life, and if the member dies within 20 years following retirement, the same monthly benefit is paid to the member's designated beneficiary for the remainder of the 20-year period.
(d) Joint and last survivor, whereby the retired member shall receive a reduced monthly benefit for life, and following the retired member's death, the same monthly benefit is paid to the member's designated beneficiary for life.
(e) Joint and last survivor, whereby the retired member shall receive a reduced monthly benefit for life, and following the retired member's death, the designated beneficiary receives one-half of the member's reduced monthly benefit for life.
(2) All of these optional forms shall be actuarially equated to the life annuity to which the member is entitled at the date of retirement.
(3) A member may change his or her designated beneficiary at any time. If a retiree changes his or her designated beneficiary, the retiree's benefit shall be actuarially adjusted to reflect the age of the new beneficiary.
(4) A member may designate any number of beneficiaries. If he or she designates more than one, the age of the younger or youngest will be used in the calculation of benefits.
(J) Benefit adjustments.
(1) Effective January 1, 1970, a member who retired prior to January 1, 1968, shall have his or her monthly retirement adjusted so as to result in a minimum payment of $100 per month, unless he or she has elected to receive his or her benefit under any of the options enumerated above, in which case a proportionate adjustment shall be made in accordance with the actuarial tables provided by the actuary.
(2) Effective January 1, 1970, a member retiring after January 1, 1968, shall have his or her monthly retirement benefit adjusted to the greater of either 2.5% of his or her highest average monthly salary for any three consecutive years within his or her last ten years of service, multiplied by the number of years of service, or $100 per month. If, however, the member has elected to receive his or her benefit under the options enumerated above, the adjustment shall be made in accordance with the actuarial tables provided by the actuary.
(3) There shall be payable to a retiree whose retirement date occurs after October 1, 1989 and before August 17, 2009, commencing three years after retirement benefits begin, a 2% cost of living adjustment (COLA) in retirement benefits annually, including benefits paid into the DROP account.
(4) There shall be payable to a retiree whose retirement date occurred before October 1, 1989, commencing, October 1, 1999, a 2% cost of living adjustment (COLA) in retirement benefits annually.
(5) For members hired prior to July 15, 2009 who retire on or after August 17, 2009 without entering the DROP, a 2% COLA shall be payable annually commencing three years after retirement benefits begin. For members hired prior to July 15, 2009 who enter the DROP on or after August 17, 2009, a 2% COLA will be payable annually, commencing the later of three years after retirement benefits begin or one year after separation from employment following participation in the DROP. For general fund members, the benefit provided in this paragraph is frozen as of midnight on September 30, 2011. Under the benefit structure effective October 1, 2011 for general fund members, no COLA shall be payable. For non-general fund members, the benefit provided in this paragraph is frozen as of midnight on March 4, 2014. Under the benefit structure effective March 5, 2014 for non-general fund members, no COLA shall be payable.
(6) Members hired on or after July 15, 2009 shall not be eligible for a COLA.
(K) Supplemental pension distribution.
(1) Effective October 1, 2002, a supplemental pension distribution program shall be established in accordance with this subsection. For the purpose of this division, an eligible person is any member who is employed by the city on October 1, 2002 and any member who is receiving benefits from the plan on that date, or the spouse of such member if the member is deceased and the spouse is receiving benefits from the plan. A supplemental pension distribution shall be paid to each eligible person other than a DROP participant who receives retirement benefits from the plan, for each plan year beginning October 1, 2002 through September 30, 2005 in which the net market rate of return on fund assets exceeds the assumed rate of investment return plus 2%. For plan years beginning October 1, 2005 and thereafter, a supplemental pension distribution shall be paid to each eligible person other than a DROP participant who receives retirement benefits from the plan, as follows:
(a) For the plan year beginning October 1, 2005, a supplemental pension distribution shall be paid if the net market rate of return on fund assets exceeds the assumed rate of investment return plus 3%.
(b) For the plan year beginning October 1, 2006, a supplemental pension distribution shall be paid if the net market rate of return on fund assets exceeds the assumed rate of investment return plus 4%.
(c) For plan years beginning October 1, 2007 and thereafter, a supplemental pension distribution shall be paid if the net market rate of return on fund assets exceeds the assumed rate of investment return plus 4.5%.
(2) For the purpose of this division, NET MARKET RATE OF RETURN means the rate of return on a market value basis net of investment related expenses for each year ending September 30. The total amount of the supplemental pension distribution for a particular fiscal year shall be equal to the actuarial present value of future retirement benefits with respect to eligible retirees multiplied by the excess (not to exceed 2%) of the net market rate of return, over the assumed rate of investment return plus 2%, for the years beginning October 1, 2002 and ending on or before September 30, 2005. For plan years beginning October 1, 2005 and thereafter, the total amount of the supplemental pension distribution for a particular fiscal year shall be equal to the actuarial present value of future retirement benefits with respect to eligible retirees multiplied by the excess (not to exceed 2%) of the net market rate of return, over the assumed rate of investment return plus:
(a) Three percent for the plan year beginning October 1, 2005;
(b) Four percent for the plan year beginning October 1, 2006; and
(c) Four and one-half percent for plan years beginning October 1, 2007 and thereafter.
(3) For those years in which a supplemental pension distribution is payable, the amount of the supplemental pension distribution paid to each eligible person shall be determined as follows:
(a) First, the total amount of the supplemental pension distribution for a particular year shall be divided by the total years of credited service attributable to all eligible persons who are receiving retirement benefits from the plan (not to exceed 25 years for each eligible person).
(b) Then, the amount obtained in division (3)(a), above, shall be multiplied by the years of credited service attributable to each eligible person (not to exceed 25 years) to produce the amount of the supplemental pension distribution payable to each eligible person.
(4) The supplemental pension distribution shall not be paid to any member who is participating in the DROP, for as long as the member participates in the DROP. For the purpose of this division, credited service includes only those periods in which the member contributed a percentage of his/her compensation to the Fund. The Board may adopt rules to implement this division.
(L) Disability retirement.
(1) Except as set forth in division (3) below, upon total and permanent disability of a member by reason of injuries sustained while in the performance of an act of duty as an active employee of the city, resulting in the inability of the member to perform the specific duties of his or her position in the service of the city, such member shall be entitled to a disability retirement benefit equal to 75% of his or her salary from the first day of disability. Based on the available medical information, the Human Resources Director shall make the final determination regarding the ability of the member to perform the specific duties of his or her position.
(2) Except as set forth in division (3) below, upon total and permanent disability of a member hired prior to July 15, 2009 having at least five years of credited service, from causes other than the performance of an act of duty as an employee of the city, resulting in the inability of the member to perform the specific duties of his or her position in the service of the city, such member shall be entitled to a disability retirement benefit equal in rate to that provided for service retirement, but not less than 20% of average salary. Based on the available medical information, the Human Resources Director shall make the final determination regarding the ability of the member to perform the specific duties of his or her position. The eligibility of members hired on or after July 15, 2009 but prior to October 1, 2011 for non-duty disability benefits is specified in divisions (AA) and (JJ) below. The eligibility of members hired on or after October 1, 2011 but prior to March 5, 2014 for non-duty disability benefits is specified in divisions (CC) and (JJ) below. The eligibility of members hired on or after March 5, 2014 for non-duty disability benefits is specified in division (DD) below. If a general fund member hired prior to October 1, 2011 is entitled to a non-duty disability benefit and the date of disability, defined as the date the member becomes disabled, as opposed to the date on which the determination of disability is made, is on or after October 1, 2011, the amount of the non-duty disability benefit to which the member is entitled shall equal the sum of (i) a benefit for the period prior to October 1, 2011 calculated in accordance with the benefit structure frozen as of September 30, 2011, and (ii) a benefit for the period on and after October 1, 2011 calculated in accordance with the benefit structure effective October 1, 2011. If a non-general fund member hired prior to March 5, 2014 is entitled to a non-duty disability benefit and the date of disability, defined as the date the member becomes disabled, as opposed to the date on which the determination of disability is made, is on or after March 5, 2014, the amount of the non-duty disability benefit to which the member is entitled shall equal the sum of (i) a benefit for the period prior to March 5, 2014 calculated in accordance with the benefit structure frozen as of March 4, 2014, and (ii) a benefit for the period on and after March 5, 2014 calculated in accordance with the benefit structure effective March 5, 2014.
(3) The disability benefit as herein provided shall continue until the member is able to return to work, or dies; provided that the member shall have an option, at the date of retirement, to receive his or her benefit under either division (I)(1)(d) or (e).
(4) Notwithstanding the provisions of divisions (1) and (2) above, a member shall not be entitled to a disability retirement benefit if the city offers the member, with no change in salary or benefit level, a newly created modified duty position or a vacant position which the member is capable and qualified to perform. If the position is a vacant position, it shall be a position within the civil service system provided in this chapter. Any member who is placed in such a position shall have preference for future vacant positions without regard to the provisions of the civil service system. Placement in a position pursuant to this division shall be at the discretion of the Human Resources Director. This division shall not apply to any member who was injured or disabled prior to July 1, 1999.
(5) The amount of a disability retirement benefit payable by reason of injuries sustained while in the performance of an act of duty as an active employee of the city shall be reduced to the extent that the sum of the disability retirement benefit to which the retiree would otherwise be entitled and the retiree's workers' compensation benefits exceeds the retiree's average weekly wages at date of retirement. For purposes of this division, AVERAGE WEEKLY WAGES shall be determined as prescribed in F.S. Ch. 440 (the Workers' Compensation Law).
(6) The amount of a disability retirement benefit shall be reduced annually by the amount of salary received by the member, and by the amount of net earnings from self-employment income received by the member. Neither social security nor workers' compensation benefits shall be deemed salary or net earnings from self-employment income under this division. Not later than April 15 of the year following any calendar year in which a member received a disability retirement benefit for the entire year, the member shall submit to the Board his or her federal income tax return without supporting schedules or documentation. Commencing with the first monthly payment thereafter to which the reduction can be applied, the member's disability retirement benefit for 12 consecutive monthly payments shall be reduced by an amount equal to 1/12 of the salary received by the member and 1/12 of the net earnings from self-employment income received by the member during the preceding calendar year. This division shall not apply to any member who was injured or disabled prior to July 1, 1999. Notwithstanding any other provision of this division, effective October 1, 2005 the provisions of this division shall apply only to disability retirement benefits payable by reason of injuries sustained while in the performance of an act of duty as an active employee of the city, and any member who was receiving non-duty disability retirement benefits on June 1, 2001, or who commenced receiving non-duty disability retirement benefits after that date, shall not be subject to the benefit reduction provided in this division.
(7) Members receiving disability retirement benefit shall be subject to periodic investigations and medical examinations as deemed necessary by the Board and the city. The Board shall prescribe rules and regulations governing the payment of the disability benefits herein provided, including prescribing the requirements for such periodic investigations and medical examinations in the interest of an effective and efficient administration of these benefits.
(M) Death benefits.
(1) Effective April 5, 2006 for members included in the AFSCME General bargaining unit, March 7, 2007 for members included in the AFSCME Professional and Supervisory bargaining units, and July 18, 2007 for members not included in any bargaining unit, when an employed member of the Employees' Retirement Fund of the City of Hollywood, who is vested, dies before retirement, his or her designated beneficiary (or beneficiaries) shall have the option of receiving the member's contribution to the Fund, plus simple interest at the rate of 4% per year, or benefit payments until his or her own death equal to the benefit payments the deceased member would have received had he or she retired on the day of his or her death having selected to receive his or her annuity under division (I)(1)(d) above.
(2) Benefits payable upon a member's death following retirement.
(a) If a member elects to receive an optional benefit form pursuant to division (I)(1)(a), (b) or (c), that benefit shall be paid upon retirement for the member's lifetime, and if the member dies before the specified period of benefits ends, the benefit shall be paid to the member's beneficiary (or if more than one beneficiary is designated, in equal shares to each beneficiary), for the remainder of the specified period. Upon the death of any designated beneficiary following the retired member's death, the benefit shall continue to be paid, in equal shares, to any remaining beneficiaries for the remainder of the specified period. If all designated beneficiaries pre-decease the retired member, any remaining benefit shall be reduced to present value and paid to the member's estate upon the death of the member. Upon the death of the last surviving designated beneficiary following the death of the retired member, any remaining benefit shall be paid to the last surviving beneficiary's estate.
(b) If a member receives a life annuity or elects to receive an optional benefit form pursuant to division (I)(1)(d) or (e), upon death of the last survivor of the retired member and the retired member's designated beneficiaries, a payment shall be made to the last survivor's designated beneficiary or estate of the excess, if any, of the contributions made by the member over the total amount paid by the fund to the retired member or designated beneficiaries, plus simple interest at the rate of 4% per year.
(3) Upon death of a vested member after separation from city employment but before retirement, if such member had elected to receive an optional benefit form pursuant to division (I)(1) above, benefit payments shall be made to the beneficiary designated by the member commencing on the date the member would have become eligible for benefit payments in accordance with division (E) above. If such member did not elect to receive an optional benefit form pursuant to division (I)(1) above, or upon the election of the member's designated beneficiary, the beneficiary shall receive payment of the member's contributions to the fund, plus simple interest at the rate of 4% per year to the date of separation from employment, in lieu of any other benefit. If no beneficiary is designated, the member's contributions to the fund, plus simple interest at the rate of 4% per year to the date of separation from employment, shall be paid to the member's estate.
(N) Refund of member contributions.
(1) Any member who separates from city employment may elect to receive a refund of his or her total contributions plus simple interest at the rate of 4% per year through the date of separation.
(2) Any member receiving a refund of contributions shall thereby waive, forfeit and relinquish all accrued rights in the Fund including all accumulated credited service, provided that if a member who has withdrawn his or her contributions shall reenter the service of the city and render at least three years of credited service following his or her reentry, he or she shall have the right to make a repayment of the refund or refunds including interest at 4% per annum for the period of his or her absence from service of the city, and thereby have restored to him or her all credited service previously forfeited by the acceptance of a refund.
(O) Financing.
(1) The Fund shall be financed in accordance with actuarial requirements by the following revenues:
(a) Contributions by employees hired prior to July 15, 2009 of 7% of compensation prior to October 1, 2009, 8% of compensation as of October 1, 2009, 9% of compensation as of October 1, 2010, and 8% of compensation effective no later than the first day of a pay period that begins within 30 days (i.e., one month) after March 5, 2014, to be deducted from members' pay at regular payroll periods. Effective for the first full pay period after June 19, 2019, contributions by general fund members hired prior to October 1, 2011, shall be 9% of compensation; and by general fund members hired on or after October 1, 2011, contributions shall be 8% of compensation. Effective for the first full pay period after June 19, 2019, contributions by non-general fund members hired prior to March 5, 2014 shall be 9% of compensation; and by non- general fund members hired on or after March 5, 2014, contributions shall be 8% of compensation. Contributions deducted from a member's pay, including contributions deducted from a member's pay to purchase credited service in accordance with division (D)(6) and (7) above, shall be designated as employer contributions pursuant to section 414(h) of the Internal Revenue Code. Such designation is contingent upon the contributions being excluded from the member's gross income for federal income tax purposes in accordance with the code and applicable regulations. For all other purposes of the plan, such contributions shall be considered to be member contributions. A member's election to purchase credited service through payroll deduction in accordance with division (D)(6) and (7) above shall be irrevocable. The employee contributions for members hired on or after July 15, 2009 but prior to October 1, 2011 is specified in divisions (AA) and (JJ) below;
(b) Contributions by the city in an amount which, when added to the members' contributions, will be sufficient to fund the plan on a sound actuarial basis, which contributions shall be made concurrently with contributions by the members according to rates established by the Board upon recommendation of the actuary;
(c) Interest earned on investments; and
(d) Miscellaneous income accruing to the Fund.
(2) The Board shall certify annually to the City Commission on or before April 1 of each year the amount necessary to fund the plan on a sound actuarial basis for the following fiscal year.
(3) Forfeitures may not be applied to increase the benefits any member would otherwise receive under the plan.
(P) Depository account. The moneys constituting the Fund derived from the aforesaid revenues shall be deposited by the Treasurer in an account entitled Employees' Retirement Fund of the City of Hollywood and shall be subject to the laws and regulations that apply to other city funds.
(Q) Investments.
(1) The Board shall have exclusive charge of the investment of any assets in the Fund not needed for the Fund's current obligations, and may invest such assets in accordance with the written investment policy adopted by the Board pursuant to division (2) below. Board members must discharge their duties with respect to the plan solely in the interest of the participants and beneficiaries and for the exclusive purpose of:
(a) Providing benefits to participants and their beneficiaries; and
(b) Defraying reasonable expenses of administering the plan; with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims: by diversifying the investments of the plan so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.
(2) The Board shall adopt and periodically update a written investment policy in accordance with F.S. § 112.661, as such statute may be amended in the future. Within the limitations of the foregoing standards and investment policy, the Board is authorized to acquire and retain in the Fund every kind of investment specifically including, but not limited to stocks, bonds, securities, debentures, real estate, mutual funds, trusts and other obligations which persons of prudence, discretion and intelligence acquire or retain for their own account.
(3) In carrying out its investment duties, the Board shall engage such custodial, investment management, and other professional consultants as the Board deems necessary and prudent.
(R) Management.
(1) The Fund shall constitute a trust to operate for the exclusive benefit of the participating employees by a Board of Trustees of seven members. The Board shall consist of two persons designated as citizen members who shall be residents of the city, who shall be appointed by and serve at the pleasure of the City Commission, and who shall not be identified with the city government; the City Manager or the City Manager's designee; two members representing the employees, who shall be employee members (including DROP participants) with at least six years of credited service, and who shall be elected by vote of all employee members (including DROP participants); one member representing the retirees, who shall be a retiree (but not a DROP participant) elected by vote of all retired members (excluding DROP participants); and one member representing the employees whose positions are not included in a collective bargaining unit, who shall have some accounting or investment experience and shall be appointed by and serve at the pleasure of the City Manager. The pension coordinator shall administer the election of employee Board members, subject to the direction of the Board. The City of Hollywood Retirees' Association shall administer the election of retiree Board members, subject to the direction of the Board. Each of the three employee members shall attend two pension-related seminars during the member's first year of service on the Board. The Fund shall pay all expenses, as appropriate, related to all Board members' attendance at such required seminars, in accordance with policies approved by the Board.
(2) The terms of office of all Board members shall be three years, except to provide staggered terms for Board members appointed by the City Commission, the first such appointment occurring on or after May 18, 2016 shall be for a term expiring June 30, 2018, notwithstanding any other provision of this section.
(3) In case of a vacancy occurring in the Board membership appointed by City Commission, the City Commission shall appoint a successor for the unexpired term of the office so vacated. In case of vacancy occurring in the Board membership appointed by the City Manager, the City Manager shall appoint a successor for the unexpired term of the office so vacated. In case of a vacancy occurring in the Board membership elected by employee members, if less than one year remains in the term of the vacating Board member, the Board shall appoint a successor who meets the qualifications for the vacated office from among those members who submit a written expression of interest to the Board; and if one year or more remains in the term of the vacating Board member a special election shall be held in accordance with division (R)(1) above to fill the remainder of the term. In case of a vacancy occurring in the Board membership elected by retiree members, if less than one year remains in the term of the vacating Board member, the City of Hollywood Retirees' Association shall appoint a successor who meets the qualifications for the vacated office from among those members who submit a written expression of interest to the Association; and if one year or more remains in the term of the vacating Board member a special election shall be held in accordance with division (R)(1) above to fill the remainder of the term.
(4) Trustees shall serve without compensation but shall be reimbursed for any expenses incurred in connection with service as members of the Board.
(5) The Board shall elect annually from among its members a chair and vice-chair.
(6) Meetings of the Board shall be open to the public.
(7) The Board shall formulate policy and shall be responsible for the proper operation and administration of the affairs of the Fund.
(8) The Board shall from time to time establish rules and regulations implementing the provisions hereof, for the proper administration of the Fund and for the transaction of its business consistent with the provisions of this subchapter. It shall adopt bylaws to define the duties of its officers and govern the conduct of its meetings.
(S) Administration.
(1) The Board shall annually select from among its members a secretary, who shall perform such duties as may be assigned by the Board.
(2) The official custody and supervision of the Fund (and assets thereof) shall be vested in the Board. Payment of benefits and disbursements from the Fund may be made by a disbursing agent but only upon written authorization from the Board.
(3) Assets of the Fund may be deposited with the Director of the Department of Financial Services of the city, acting in a ministerial capacity only, who shall be liable in the same manner and to the same extent as he or she is liable for the safekeeping of funds for the city. Any assets so deposited with the Director of the Department of Financial Services of the city shall be kept in a separate fund or clearly identified as assets of the Fund. Alternatively, the Board may deposit assets of the Fund in a qualified public depository as defined in F.S. § 280.02, which depository with regard to such funds shall conform to and be bound by all of the provisions of F.S. Ch. 280.
(4) The pension coordinator shall maintain custody of all records, files, and documents of the Fund and Board. All such records, files and documents shall be stored in the pension office with appropriate backup approved by the Board.
(5) The Board shall engage such acturial, accounting, legal, and other services as shall be required to transact the business of the Fund. The compensation of such persons engaged by the Board shall be paid from the Fund at such rates and in such amounts as determined by the Board.
(6) The Board shall purchase insurance coverage, including fiduciary insurance and surety bonds, in such amounts and under such terms as determined by the Board.
(7) All expenses for the administration and operation of the Fund as approved by the Board shall be paid by the Fund. Beginning with the fiscal year commencing October 1, 2017, the Board shall provide a detailed accounting report of its expenses for each fiscal year, and make the report available to all members and the City. The report must include all administrative expenses that, for purposes of this subsection, are expenses relating to any legal counsel, actuary, pension coordinator, and other service provider, office expenses, and all travel and other expenses paid to or on behalf of the members of the Board or anyone else on behalf of the plan.
(8) Beginning with the fiscal year commencing October 1, 2017, the Board shall adopt and operate under an administrative expense budget for each fiscal year, provide a copy of the budget to the City, and make available a copy of the budget to all members before the beginning of the fiscal year. If the Board amends the administrative expense budget, the board must provide a copy of the amended budget to the City and make available a copy of the amended budget to all members.
(9) The Board shall ensure that proper and adequate records and accounts are established and maintained which will give full effect to the requirements of this plan.
(10) Beginning with the fiscal year commencing October 1, 2017, an annual audit of books, accounts and records of the Fund shall be made by a certified public accountant selected by the Board. As part of the audit, an annual report shall be prepared by the Director of the Department of Financial Services and be audited by a certified public accountant as of the close of each fiscal year for submission to the Board, showing the assets and liabilities of the fund at the end of such year and the income and expenditures for the year and other data pertinent to the operation of the Fund. A synopsis of such report may be prepared for distribution to the members of the Fund.
(11) The Board shall engage a person or entity to serve as pension coordinator. The Board may provide an office for the pension coordinator, or may contract with the pension coordinator for an office. The pension coordinator shall be available during normal business hours to assist members and retirees in matters related to their pensions and retirement as provided in this plan.
(T) Accounting. The assets of the Fund shall be held for the express purpose set forth in this plan subject to the conditions prescribed herein. An adequate system of accounts and records shall be established and maintained to give effect to the requirements herein.
(U) Actuarial studies. An actuarial valuation of the Fund shall be conducted periodically in accordance with applicable law, but at least once every three years. In conjunction with the actuarial valuation, the actuary shall provide a supplemental report containing comparative data from other governmental pension plans, as specified by the Board. An experience study shall be conducted at least once every five years, and more frequently if authorized by the Board, to review mortality, turnover, disability, interest and other actuarial factors assumed in the calculation of costs and liabilities, and to vary the city's contribution rate. Any proposal for changes in the benefit schedule shall be subject to evaluation by the actuary and his or her report and recommendations.
(V) Non-alienation. The right of a member to a service retirement benefit, disability retirement benefit, payment upon death, refund of contributions or any other right, accrued or accruing to any member or beneficiary under the provisions of this plan, shall be unassignable and shall not be subject in any manner whatsoever to anticipation, alienation, sale, execution, garnishment transfer, assignment, pledge, encumbrance, charge or attachment, or any other legal process whatsoever.
(W) Deminimus payments. If the present value of any non- forfeitable accrued benefit is less than $5,000, the Board may direct at the member's request that such benefit be distributed to the member or beneficiary in a lump-sum, and such lump sum payment shall fully discharge all liability of the fund with respect to such benefit.
(X) Insurance. The Commission shall have the power to provide for life or disability insurance for all city employees, agents and officers in a group insurance plan approved by the Commission, and to pay all or part of the premiums thereon as the Commission may by resolution determine.
(Y) Direct transfers of eligible rollover distributions.
(1) Rollover distributions.
(a) General. This division applies to distributions made on or after the effective date of this subchapter. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this division, a distributee may elect, at the time and in the manner prescribed by the Board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(b) Definitions.
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: 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 ten years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Internal Revenue Code; and the portion of any distribution that is not includible in gross income. Any portion of any distribution which would be includible in gross income will be an eligible rollover distribution if the distribution is made to an individual retirement account described in section 408(a) of the Internal Revenue Code, to an individual retirement annuity described in section 408(b) of the Internal Revenue Code or to a qualified defined contribution plan described in section 401(a) or 403(a) of the Internal Revenue Code that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is not so includible.
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 (1) a traditional individual retirement account or annuity described in sections 408(a) or (b) of the Internal Revenue Code (a traditional IRA) or a Roth individual retirement account or annuity described in section 408A of the Internal Revenue Code (a Roth IRA); or (2) a qualified defined contribution, defined benefit, or annuity plan described in sections 401(a) or 403(a) of the Internal Revenue Code or to an annuity contract described in section 403(b) of the Internal Revenue Code, if such plan or contract provides for separate accounting for amounts so transferred (including interest thereon), 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.
ELIGIBLE RETIREMENT PLAN. An eligible retirement plan is an individual retirement account described in section 408(a) of the Internal Revenue Code, an individual retirement annuity described in section 408(b) of the Internal Revenue Code, an annuity plan described in section 403(a) of the Internal Revenue Code, an eligible deferred compensation plan described in section 457(b) of the Internal Revenue Code which is maintained by an eligible employer described in section 457(e)(1)(A) of the Internal Revenue Code and which agrees to separately account for amounts transferred into such plan from this plan, an annuity contract described in section 403(b) of the Internal Revenue Code, or a qualified trust described in
section 401(a) of the Internal Revenue Code, that accepts the distributee's eligible rollover distribution. This definition shall also apply in the case of an eligible rollover distribution to the surviving spouse.
DISTRIBUTEE. A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse is a distributee with regard to the interest of the spouse. For distributions occurring in plan years beginning after December 31, 2009 (or in any earlier plan year beginning after December 31, 2006), a DISTRIBUTEE also includes the participant’s non-spouse designated beneficiary. In the case of a non-spouse beneficiary, the direct rollover may be made only to a traditional IRA or Roth IRA that is established on behalf of the designated beneficiary and that will be treated as an inherited IRA pursuant to the provisions of section 402(c)(11) of the Internal Revenue Code. Also, in this case, the determination of any required minimum distribution under section 401(a)(9) of the Internal Revenue Code that is ineligible for rollover shall be made in accordance with Notice 2007-7, Q&A 17 and 18, 2007-5 I.R.B. 395.
DIRECT ROLLOVER. A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee.
(c) Rollovers or transfers into the Fund. On or after the effective date of this subchapter, the Fund will accept member rollover cash contributions and/or direct cash rollovers of distributions for the purchase of credited service pursuant to division (D)(6) and (7), as follows:
1. Direct rollovers or member rollover contributions from other plans. The plan will accept either a direct rollover of an eligible rollover distribution or a member contribution of an eligible rollover distribution from a qualified plan described in section 403(a) of the Internal Revenue Code, from an annuity contract described in section 403(b) of the Internal Revenue Code, or from an eligible plan under section 457(b) of the Internal Revenue 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.
2. Member rollover contributions from 401(a) plans and IRAs. The plan will accept a member rollover contribution of the portion of a distribution from qualified plan described in section 401(a) of the Internal Revenue Code, or from an individual retirement account or annuity described in section 408(a) or 408(b) of the Internal Revenue Code, that is eligible to be rolled over and would otherwise be includible in the member's gross income.
(Z) Maximum pension limitation.
(1) Basic limitation. Notwithstanding any other provisions of this plan to the contrary, the member contributions paid to, and retirement benefits paid from, the plan shall be limited to such extent as may be necessary to conform to the requirements of section 415 of the Internal Revenue Code for a qualified retirement plan. Before January 1, 1995, a plan member may not receive an annual benefit that exceeds the limits specified in section 415(b) of the Internal Revenue Code, subject to the applicable adjustments in that section. On and after January 1, 1995, a plan member may not receive an annual benefit that exceeds the dollar amount specified in section 415(b)(1)(A) of the Internal Revenue Code ($160,000), subject to the applicable adjustments in section 415(b), and subject to any additional limits that may be specified in this plan. For purposes of this division (Z), LIMITATION YEAR shall be the calendar year.
For purposes of section 415(b) of the Internal Revenue Code, the term ANNUAL BENEFIT means a benefit payable annually in the form of a straight life annuity without regard to the benefit attributable to after-tax employee contributions (except pursuant to section 415(n) of the Internal Revenue Code) and to rollover contributions (as defined in section 415(b)(2)(A) of the Internal Revenue Code), and with the benefit attributable determined in accordance with Treasury Regulations located in 26 CFR 1.415(b)-1.
(2) Adjustments to basic limitation for form of benefit. If the form of benefit is other than the annual benefit defined in division (Z)(1), the benefit shall be adjusted so that it is the equivalent of the annual benefit using factors prescribed in treasury regulations. If the form of benefit, without regard to any automatic benefit increase feature, is not a straight life annuity or a qualified joint and survivor annuity, then the preceding sentence is applied by either reducing the section 415(b) limit applicable at the annuity starting date or by adjusting the form of benefit to an actuarially equivalent amount, determined using the assumptions specified in 26 CFR 1.415(b)-1, that takes into account the additional benefits under the form of benefit as follows:
(a) Benefit forms not subject to section 417(e)(3) of the Internal Revenue Code. The straight life annuity that is actuarially equivalent to the member's form of benefit shall be determined under this division (Z)(2)(a) if the form of a member's benefit is either a non-decreasing annuity (other than a straight life annuity) payable for a period of not less than the life of the employee (or in the case of a qualified pre-retirement survivor annuity, the life of the surviving spouse), or an annuity that decreases during the life of the member merely because of (a) the death of the survivor annuitant (but only if the reduction is not below 50% of the benefit payable before the death of the survivor annuitant); or (b) the cessation or reduction of social security supplements or qualified disability payments (as defined in section 401(a)(11) of the Internal Revenue Code). For a benefit paid in a form described in this division (Z)(2)(a), the actuarially equivalent straight life annuity is equal to the greater of:
1. The annual amount of the straight life annuity (if any) payable to the member under the plan commencing at the same annuity starting date as the member's form of benefit; or
2. The annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the member's form of benefit, computed using a 5% interest rate assumption and the applicable mortality tables described in section 417(e)(3)(B) of the Internal Revenue Code (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing section 417(e)(3)(B) of the Internal Revenue Code); or
(b) Benefit forms subject to section 417(e)(3) of the Internal Revenue Code. If a form of member's benefit is other than a benefit form described in division (Z)(2)(a), the actuarially equivalent straight life annuity benefit is the greatest of:
1. The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using the interest rate and mortality table, or tabular factor, specified in the plan for actuarial experience;
2. The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable computed using a 5.5% interest rate assumption for the applicable statutory interest rate assumption and (i) for years prior to January 1, 2009 the applicable mortality tables for the distribution under 26 CFR 1.417(e)-1(d)(2) (Revenue Ruling 2001-62 or any subsequent revenue ruling modifying the applicable provisions of Revenue Ruling 2001-62); and (ii) for years after December 31, 2008, the applicable mortality tables described in section 417(e)(3)(B) of the Internal Revenue Code (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing section 417(e)(3)(B) of the Internal Revenue Code); or
3. The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable computed using the applicable interest rate for the distribution under 26 CFR 1.417(e)-1(d)(3), the 30-year treasury rate; prior to January 1, 2007, using the rate in effect for the month prior to retirement, and on and after January 1, 2007, using the rate in effect for the first day of the plan year with a one-year stabilization period, and (i) for years prior to January 1, 2009, the applicable mortality tables for the distribution under 26 CFR 1.417(e)-1(d)(2) (the mortality table specified in Revenue Ruling 2001-62 or any subsequent revenue ruling modifying the applicable provisions of Revenue Ruling 2001-62); and (ii) for years after December 31, 2008, the applicable mortality tables described in section 417(e)(3)(B) of the Internal Revenue Code (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing section 417(e)(3)(B) of the Internal Revenue Code), divided by 1.05.
(c) The actuary may adjust the section 415(b) limit at that annuity starting date in accordance with divisions (Z)(2)(a) and (b) above.
(3) Benefits not taken into account. For purposes of this division, the following benefits shall not be taken into account in applying these limits:
(a) Any ancillary benefit which is not directly related to retirement income benefits;
(b) Survivor benefits payable to a surviving spouse under a qualified joint and survivor annuity to the extent such benefits would not be payable if the member's benefit were paid in another form;
(c) Any other benefit not required under section 415(b)(2) of the Internal Revenue Code and regulations thereunder to be taken into account for purposes of the limitation of section 415(b)(1) of the Internal Revenue Code.
(4) COLA effect. Effective on and after January 1, 2003, for purposes of applying the limits under section 415(b) of the Internal Revenue Code (the "limit"), the following will apply:
(a) A member's applicable limit will be applied to the member's annual benefit in the member's first limitation year of benefit payments without regard to any automatic cost of living adjustments;
(b) Thereafter, in any subsequent limitation year, a member's annual benefit, including any automatic cost of living increases, shall be tested under the then applicable benefit limit, including any adjustment to the section 415(b)(1)(A) dollar limit under section 415(d), and the regulations thereunder; but
(c) In no event shall a member's benefit payable under the plan in any limitation year be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to section 415(d) of the Internal Revenue Code and the regulations thereunder.
Unless otherwise specified in the plan, for purposes of applying the limits under section 415(b) of the Internal Revenue Code, a member's applicable limit will be applied taking into consideration cost of living increases as required by section 415(b) of the Internal Revenue Code and applicable treasury regulations.
(5) Other adjustments in limitations.
(a) In the event the member's retirement benefits become payable before age 62, the limit prescribed by this division shall be reduced in accordance with regulations issued by the Secretary of the Treasury pursuant to the provisions of section 415(b) of the Internal Revenue Code, so that such limit (as so reduced) equals an annual straight life benefit (when such retirement income benefit begins) which is equivalent to an annual benefit in the amount of the applicable dollar limitation of section 415(b)(1)(A) of the Internal Revenue Code (as adjusted pursuant to section 415(d) of the Internal Revenue Code) beginning at age 62.
(b) In the event the member's benefit is based on at least 15 years of credited service as a full-time police officer or firefighter, the adjustments provided for in (Z)(5)(a) above shall not apply.
(c) The reductions provided for in division (Z)(5)(a) above shall not be applicable to disability benefits or pre-retirement death benefits.
(d) In the event the member's retirement benefit becomes payable after age 65, for purposes of determining whether this benefit meets the limit set forth in this division, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age 65. This adjustment shall be made in accordance with regulations promulgated by the Secretary of the Treasury or his or her delegate.
(6) Less than ten years of service. The maximum retirement benefits payable under this section to any member who has completed less than ten years of credited service shall be the amount determined under division (Z)(5)(a) multiplied by a fraction, the numerator of which is the number of the member's years of credited service and the denominator of which is ten. The reduction provided by this division cannot reduce the maximum benefit below 10% of the limit determined without regard to this division. The reduction provided for in this division shall not be applicable to pre- retirement disability benefits or pre-retirement death benefits.
(7) Participation in other defined benefit plans. The limit of this division with respect to any member who at any time has been a member in any other defined benefit plan, as defined in section 414(i) of the Internal Revenue Code, maintained by the city shall apply as if the total benefits payable under all city defined benefit plans in which the member has been a member were payable from one plan.
(8) Ten thousand dollar limit. Notwithstanding anything in this division to the contrary, the retirement benefit payable with respect to a member shall be deemed not to exceed the limit set forth in this division if the benefits payable, with respect to such member 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 limitation year and for any prior limitation year and the city has not at any time maintained a qualified defined contribution plan in which the member participated; provided, however, that if the member has completed less than ten years of credited service, the limit under this division shall be a reduced limit equal to $10,000 multiplied by a fraction, the numerator of which is the number of the member's years of credited service and the denominator of which is ten.
(9) Reduction of benefits. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the member's benefit under any defined benefit plans in which the member participated, such reduction to be made first with respect to the plan in which the member most recently accrued benefits and thereafter in such priority as shall be determined by the Board and the plan administrator of such other plans, and next, by reducing or allocating excess forfeitures to defined contribution plans in which the member participated, such reduction to be made first with respect to the plan in which the member most recently accrued benefits and thereafter in such priority as shall be established by the Board and the plan administrator for such other plans provided, however, that necessary reductions may be made in a different manner and priority pursuant to the agreement of the Board and the plan administrator of all other plans covering such member.
(10) Service credit purchase limits.
(a) Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, if a member makes one or more contributions to purchase permissive service credit under the plan, then the requirements of this division will be treated as met only if:
1. The requirements of section 415(b) of the Internal Revenue Code are met, determined by treating the accrued benefit derived from all such contributions as an annual benefit for purposes of section 415(b); or
2. The requirements of section 415(c) of the Internal Revenue Code are met, determined by treating all such contributions as annual additions for purposes of section 415(c);
3. For purposes of applying division (Z)(10)(a)1., the plan will not fail to meet the reduced limit under section 415(b)(2)(C) of the Internal Revenue Code solely by reason of this division, and for purposes of applying division (Z)(10)(a)2., the plan will not fail to meet the percentage limitation under section 415(c)(1)(B) of the Internal Revenue Code solely by reason of this division.
(b) For purposes of this division, the term PERMISSIVE SERVICE CREDIT means service credit:
1. Recognized by the plan for purposes of calculating a member's benefit under the plan;
2. Which such member has not received under the plan; and
3. Which such member may receive only by making a voluntary additional contribution, in an amount determined under the plan, which does not exceed the amount necessary to fund the benefit attributable to such service credit.
Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, such term may, if otherwise provided by the plan, include service credit for periods for which there is no performance of service, and, notwithstanding division (Z)(2)(b), may include service credited in order to provide an increased benefit for service credit which a member is receiving under the plan.
(c) For purposes of applying the limits in this division only and for no other purpose, the definition of COMPENSATION where applicable will be COMPENSATION actually paid or made available during a limitation year, except as noted below and as permitted by Treasury Regulations located in 26 CFR 1.415(c)-2, or successor regulations. Unless another definition of COMPENSATION that is permitted by Treasury Regulations section 1.415(c)-2, or successor regulation, is specified by the plan, COMPENSATION will be defined as wages within the meaning of section 3401(a) of the Internal Revenue Code and all other payments of compensation to a member by the city for which the city is required to furnish the member a written statement under sections 6041(d), 6051(a)(3), and 6052 of the Internal Revenue Code and will be determined without regard to any rules under section 3401(a) of the Internal Revenue Code that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in section 3401(a)(2) of the Internal Revenue Code).
1. However, for limitation years beginning after December 31, 1997, compensation will also include amounts that would otherwise be included in compensation but for an election under sections 125(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b) of the Internal Revenue Code. For limitation years beginning after December 31, 2000, compensation will also include any 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.
2. For limitation years beginning on and after January 1, 2007, compensation for the limitation year will also include compensation paid by the later of 2.5 months after the member's severance from employment or the end of the limitation year that includes the date of the member's severance from employment if:
A. The payment is regular compensation for services during the member's regular working hours, or compensation for services outside the member's regular working hours (such as overtime or shift differential), commissions, bonuses or other similar payments, and, absent a severance from employment, the payments would have been paid to the member had the member continued in employment with the city; or
B. The payment is for unused accrued bona fide sick, vacation, or other leave that the member would have been able to use if employment had continued.
3. Back pay, within the meaning of Treasury Regulations section 1.415(c)-2(g)(8), shall be treated as compensation for the limitation year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under this definition.
(d) Notwithstanding any other provision of law to the contrary, the Board may modify a request by a member to make a contribution to the plan if the amount of the contribution would exceed the limits provided in section 415 of the Internal Revenue Code by using the following methods:
1. If the law requires a lump sum payment for the purchase of service credit, the Board may establish a periodic payment deduction plan for the member to avoid a contribution in excess of the limits under section 415(c) or 415(n) of the Internal Revenue Code.
2. If payment pursuant to division (Z)(10)(d)1. will not avoid a contribution in excess of the limits imposed by section 415(c) of the Internal Revenue Code, the Board may either reduce the member's contribution to an amount within the limits of that section or refuse the member's contribution.
(e) If the annual additions for any member for a plan year exceed the limitation under section 415(c) of the Internal Revenue Code, the excess annual addition will be corrected as permitted under the Member Plans Compliance Resolution System (or similar IRS correction program).
(f) For limitation years beginning on or after January 1, 2009, a member's compensation for purposes of this division shall not exceed the annual limit under section 401(a)(17) of the Internal Revenue Code.
(11) Additional limitation on pension benefits. Notwithstanding anything herein to the contrary:
(a) The normal retirement benefit or pension payable to a retiree who becomes a member of the plan and who has not previously participated in such plan, on or after January 1, 1980, shall not exceed 100% of average final compensation. However, nothing contained in this division shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-living increases or adjustments.
(b) No member 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 member is already receiving, or will receive in the future, a retirement benefit or pension from a different public employer's retirement system or plan. This restriction does not apply to social security benefits or federal benefits under 10 U.S.C. § 67.
(AA) Benefits and employee contributions for members hired on or after July 15, 2009 but prior to October 1, 2011, and separated from city service prior to June 19, 2019.
(1) Notwithstanding any other provision of the plan, members hired on or after July 15, 2009 but prior to October 1, 2011 shall receive the same retirement benefits as members hired prior to July 15, 2009, except as follows:
(a) Under the benefit structure effective October 1, 2011 for general fund members and effective March 5, 2014 for non-general fund members, the normal retirement dates shall be age 65 or older with seven years of credited service; age 62 or older with 25 years of credited service; or age 60 or older with 30 years of credited service; provided, however, that effective April 6, 2016, the normal retirement dates shall be age 65 or older with seven years of credited service; age 62 or older with 25 years of credited service; or 30 years of credited service, regardless of age; under the benefit structure effective prior to October 1, 2011 for general fund members and prior to March 5, 2014 for non- general fund members, the normal retirement dates shall be age 57 or older with 25 years of credited service; age 60 or older with seven years of credited service; or 30 years of credited service, regardless of age;
(b) The vesting period shall be seven years of credited service;
(c) Upon reaching the normal retirement date, a general fund member who separates from city employment prior to March 5, 2014 is entitled to a normal retirement benefit of (i) 2.5% of average final compensation for each year of credited service earned prior to October 1, 2011 and (ii) 2.0% of average final compensation for each year of credited service earned on or after October 1, 2011. Upon reaching the normal retirement date, a general fund member who is employed by the city on March 5, 2014 is entitled to a normal retirement benefit of (iii) 2.5% of average final compensation for each year of credited service earned prior to October 1, 2011 and (iv) 2.5% of average final compensation for each year of credited service earned on or after October 1, 2011, up to a maximum benefit, for credited service earned on or after October 1, 2011, of 81% of average final compensation less 2.5% of average final compensation for each year of credited service earned prior to October 1, 2011. Upon reaching the normal retirement date, a non-general fund member is entitled to a normal retirement benefit of (v) 2.5% of average final compensation for each year of credited service earned prior to March 5, 2014 and (vi) 2.5% of average final compensation for each year of credited service earned on or after March 5, 2014, up to a maximum benefit for credited service earned on or after March 5, 2014, of 81% of average final compensation less 2.5% of average final compensation for each year of credited service earned prior to March 5, 2014 (see paragraph (d) below for definitions of average final compensation to be applied to (i) through (vi) above);
(d) Average final compensation shall be based on the member's highest 104 consecutive bi-weekly pay periods of credited service; provided, however, that under the benefit structure effective October 1, 2011 for general fund members and effective March 5, 2014 for non- general fund members, average final compensation shall be based on the member's highest 130 consecutive bi-weekly pay periods of the last 260 bi-weekly pay periods of credited service;
(e) Compensation shall include only the member's base pay which includes longevity pay, and certification pay, but no other payments shall be included;
(f) Eligibility for non-duty disability benefits shall commence upon attaining seven years of credited service;
(g) A member who separates from city employment prior to his or her normal retirement date after having completed at least seven years of credited service and does not receive a refund of contributions shall have the right to receive a service retirement benefit beginning at age 60 based on the benefit formula in effect on the date of separation from city employment and years of credited service and average final compensation on that date; provided, however, that general fund members shall have their years of credited service and average final compensation frozen under the benefit structure in effect as of September 30, 2011 and non- general fund members shall have their years of credited service and average final compensation frozen under the benefit structure in effect as of March 4, 2014; also provided, however, that under the benefit structure effective October 1, 2011 for general fund members and effective March 5, 2014 for non- general fund members, the right to receive a service retirement benefit under that benefit structure shall begin at age 65.
(h) The member shall not be eligible to participate in the DROP;
(i) The member shall not be eligible for a COLA.
(2) Notwithstanding any other provision of the plan, members hired on or after July 15, 2009 shall contribute 9% of their compensation to the plan. Effective no later than the first day of a pay period that begins within 30 days (i.e., one month) after March 5, 2014, such members shall contribute 8% of their compensation to the plan.
(BB) Benefits for members hired prior to July 15, 2009, and separated from city service prior to June 19, 2019.
(1) Members hired prior to July 15, 2009 shall continue to receive the same retirement benefits under the benefit structure effective October 1, 2011 that they received immediately prior to October 1, 2011, except as follows:
(a) Notwithstanding any provision contained in this § 33.025 to the contrary, for any general fund member who becomes eligible to retire with normal retirement benefits on or before September 30, 2011 and is so eligible on September 30, 2011, the benefit structure in effect on September 30, 2011 shall remain in effect beyond September 30, 2011 and shall not be frozen; provided, however, that any such member who does not, on or before September 30, 2011, enter the DROP shall not be eligible to participate in the DROP. Notwithstanding any provision contained in this section to the contrary, for any non-general fund member who becomes eligible to retire with normal retirement benefits on or before March 4, 2014 and is so eligible on March 4, 2014, the benefit structure in effect on March 4, 2014 shall remain in effect beyond March 4, 2014 and shall not be frozen; provided, however, that any such member who does not, on or before March 4, 2014, enter the DROP shall not be eligible to participate in the DROP.
(b) Under the benefit structure effective October 1, 2011, the normal retirement date for a general fund member with less than ten years of credited service as of September 30, 2011 shall be age 65 or older with seven years of credited service; age 62 or older with 25 years of credited service; or age 60 or older with 30 years of credited service; provided, however, that effective April 6, 2016, the normal retirement date shall be age 65 or older with seven years of credited service; age 62 or older with 25 years of credited service; or 30 years of credited service, regardless of age; and provided further that the normal retirement date of a general fund member with ten or more years of credited service as of September 30, 2011 shall remain the same as it was on September 30, 2011. Under the benefit structure effective March 5, 2014, the normal retirement date for a non-general fund member with less than ten years of credited service as of March 4, 2014 shall be age 65 or older with seven years of credited service; age 62 or older with 25 years of credited service; or age 60 or older with 30 years of credited service; provided, however, that effective April 6, 2016, the normal retirement date shall be age 65 or older with seven years of credited service; age 62 or older with 25 years of credited service; or 30 years of credited service, regardless of age; and provided further that the normal retirement date of a non-general fund member with ten or more years of credited service as of March 4, 2014 shall remain the same as it was on March 4, 2014.
(c) The vesting period for general fund employees who have not vested as of September 30, 2011 and for non- general fund employees who have not vested as of March 4, 2014 shall be seven years of credited service;
(d) Upon reaching the normal retirement date, a general fund member who separates from city employment prior to March 5, 2014 is entitled to a normal retirement benefit of (i) 3.0% of average final compensation for each year of credited service earned prior to October 1, 2011 and (ii) 2.0% of average final compensation for each year of credited service earned on or after October 1, 2011, up to a maximum benefit, for credited service earned on or after October 1, 2011, of 81% of average final compensation less 3.0% of average final compensation for each year of credited service earned prior to October 1, 2011. Upon reaching the normal retirement date, a general fund member who is employed by the city on March 5, 2014 is entitled to a normal retirement benefit of (i) 3.0% of average final compensation for each year of credited service earned prior to October 1, 2011 and (ii) 2.5% of average final compensation for each year of credited service earned on or after October 1, 2011, up to a maximum benefit, for credited service earned on or after October 1, 2011, of 81% of average final compensation less 3.0% of average final compensation for each year of credited service earned prior to October 1, 2011.
Upon reaching the normal retirement date, a non-general fund member is entitled to a normal retirement benefit of (i) 3.0% of average final compensation for each year of credited service earned prior to March 5, 2014 and (ii) 2.5% of average final compensation for each year of credited service earned on or after March 5, 2014, up to a maximum benefit, for credited service earned on or after March 5, 2014, of 81% of average final compensation less 3.0% of average final compensation for each year of credited service earned prior to March 5, 2014.
(e) Under the benefit structure effective October 1, 2011 for general fund members and effective March 5, 2014 for non-general fund members, average final compensation shall be based on the member's highest 130 consecutive bi-weekly pay periods of the last 260 bi-weekly pay periods of credited service.
(f) Under the benefit structure effective October 1, 2011 for general fund members and effective March 5, 2014 for non-general fund members, compensation shall include only the member's base pay which includes longevity pay, and certification pay, but no other payments shall be included.
(g) Under the benefit structure effective October 1, 2011 for general fund members and effective March 5, 2014 for non-general fund members, eligibility for non-duty disability benefits shall commence upon attaining seven years of credited service.
(h) A member who separates from city employment prior to his or her normal retirement date after having completed at least five years of credited service and does not receive a refund of contributions shall have the right to receive a service retirement benefit beginning at age 55 based on the benefit formula in effect on the date of separation from city employment and years of credited service and average final compensation on that date; provided, however, that general fund members who are not eligible for normal retirement as of September 30, 2011 shall have their years of credited service and average final compensation frozen under the benefit structure in effect as of September 30, 2011 and non- general fund members who are not eligible for normal retirement as of March 4, 2014 shall have their years of credited service and average final compensation frozen under the benefit structure in effect as of March 4, 2014; also provided however that under the benefit structure effective October 1, 2011 for general fund members and effective March 5, 2014 for non-general fund members, the right to receive a service retirement benefit under that benefit structure shall begin at age 65.
(i) A general fund member who does not enter the DROP prior to October 1, 2011 shall not be eligible to participate in the DROP. A non-general fund member who does not enter the DROP prior to March 5, 2014 shall not be eligible to participate in the DROP.
(j) A general fund member's entitlement to a benefit in the form of a COLA shall be frozen as of midnight on September 30, 2011, and a non- general fund member’s entitlement to a benefit in the form of a COLA shall be frozen as of midnight on March 4, 2014. Under the benefit structure effective October 1, 2011 for general fund members and effective March 5, 2014 for non-general fund members, a member shall not be eligible for a COLA.
(2) Notwithstanding any other provision of the plan, members hired prior to July 15, 2009 shall contribute 9% of their compensation to the plan. Effective no later than the first day of a pay period that begins within 30 days (i.e., one month) after March 5, 2014, such members shall contribute 8% of their compensation to the plan.
(CC) Benefits for members hired on or after October 1, 2011 but prior to March 5, 2014, and separated from city service prior to June 19, 2019.
(1) Members hired on or after October 1, 2011 but prior to March 5, 2014 shall receive the same retirement benefits as members hired on or after July 15, 2009 but prior to October 1, 2011, except as follows:
(a) The normal retirement date for a general fund member shall be age 65 or older with seven years of credited service; age 62 or older with 25 years of credited service; or age 60 or older with 30 years of credited service; provided, however, that effective April 6, 2016, the normal retirement date shall be age 65 or older with seven years of credited service; age 62 or older with 25 years of credited service; or 30 years of credited service, regardless of age;
(b) The vesting period shall be seven years of credited service;
(c) Upon reaching his/her normal retirement date, a general fund member is entitled to a normal retirement benefit of 2.5% of average final compensation for each year of credited service, up to a maximum benefit of 81% of average final compensation.
Upon reaching his/her normal retirement date, a non-general fund member is entitled to a normal retirement benefit of (i) 3.0% of average final compensation for each year of credited service earned prior to March 5, 2014 and (ii) 2.5% of average final compensation for credited service earned on or after March 5, 2014, up to a maximum benefit for credited service earned on or after March 5, 2014, of 81% of average final compensation less 3.0% of average final compensation for each year of credited service earned prior to March 5, 2014.
(d) Under the benefit structure effective October 1, 2011 for general fund members and effective March 5, 2014 for non-general fund members, average final compensation shall be based on the member's highest 130 consecutive bi-weekly pay periods of the last 260 bi-weekly pay periods of credited service.
(e) Compensation shall include only the member's base pay which includes longevity pay and certification pay, but no other payments shall be included;
(f) Eligibility for non-duty disability benefits shall commence upon attaining seven years of credited service;
(g) A general fund member who separates from city employment prior to his or her normal retirement date after having completed at least seven years of credited service and does not receive a refund of contributions shall have the right to receive a service retirement benefit beginning at age 65 based on the benefit formula in effect on the date of separation from city employment and years of credited service and average final compensation on that date;
(h) The member shall not be eligible to participate in the DROP;
(i) The member shall not be eligible for a COLA.
(2) Notwithstanding any other provision of the plan, members hired on or after October 1, 2011 shall contribute 9% of their compensation to the plan. Effective no later than the first day of a pay period that begins within 30 days (i.e., one month) after March 5, 2014, such members shall contribute 8% of their compensation to the plan.
(DD) Benefits for general fund members hired on or after October 1, 2011 and non-general fund members hired on or after March 5, 2014.
(1) Members hired on or after March 5, 2014 shall receive the same retirement benefits as members hired on or after October 1, 2011 but prior to March 5, 2014, except as follows:
(a) The normal retirement date shall be age 65 or older with seven years of credited service; age 62 or older with 25 years of credited service; or age 60 or older with 30 years of credited service; provided, however, that effective April 6, 2016, the normal retirement date shall be age 65 or older with seven years of credited service; age 62 or older with 25 years of credited service; or 30 years of credited service, regardless of age;
(b) The vesting period shall be seven years of credited service;
(c) Upon reaching his/her normal retirement date, a member is entitled to a normal retirement benefit of 2.5% of average final compensation for each year of credited service, up to a maximum benefit of 81% of average final compensation;
(d) Average final compensation shall be based on the highest 130 consecutive bi-weekly pay periods of the last 260 bi-weekly pay periods of credited service;
(e) Compensation shall include only the member's base pay which includes longevity pay and certification pay, but no other payments shall be included. Compensation shall not include the one-time, lump sum $1,500 payment made to any participant as a result of the collective bargaining agreements ratified on June 19, 2019;
(f) Eligibility for non-duty disability benefits shall commence upon attaining seven years of credited service;
(g) A member who (i) separates from city employment prior to his or her normal retirement date after having completed at least seven years of credited service and (ii) does not receive a refund of contributions shall have the right to receive a service retirement benefit beginning at age 65 based on the benefit formula in effect on the date of separation from city employment and years of credited service and average final compensation on that date;
(h) The member shall not be eligible to participate in the DROP;
(i) The member shall not be eligible for a COLA.
(2) Notwithstanding any other provision of the plan, members hired on or after March 5, 2014 shall contribute 9% of their compensation to the plan. Effective no later than the first day of a pay period that begins within 30 days (i.e., one month) after March 5, 2014, such members shall contribute 8% of their compensation to the plan.
(EE) Planned retirement benefit; partial lump sum distribution benefit.
(1) There is hereby created a benefit to be known as the planned retirement benefit.
(a) The planned retirement benefit, as described below, will be retroactive to October 1, 2011, and will be available to any member who was a contributing member of this plan prior to July 15, 2009 and who remained a contributing member continuously through and including March 5, 2014.
(b) In order to be eligible, a member must submit a written election, on a form created for this purpose, declaring the member's intent to participate in the planned retirement benefit at any time on or after reaching the member's normal retirement date, as defined in division (E) of this section. The form will identify the maximum number of years the member may participate in the planned retirement benefit and the member's latest employment termination date based on the maximum number of years identified.
(c) A member may terminate employment any time prior to reaching the planned retirement benefit's maximum participation period of five years.
(d) When a member who has participated in the planned retirement benefit terminates employment, the member shall elect how he/she wishes to receive the planned retirement benefit earned. The member may choose to take (i) a maximum lump sum payment that would be valued based on all of the years the employee worked after electing to participate in the planned retirement benefit; (ii) a larger final pension annuity payment (meaning a larger annuity than that earned prior to electing to participate in the planned retirement benefit) based on the years the member worked after electing to participate in the planned retirement benefit; or (iii) any combination of a lump sum payment and a pension annuity by dividing the years worked after electing to participate in the planned retirement benefit between a lump sum payment and ongoing annuity payments. Any lump sum payment must be paid out to the member at termination (i.e., it cannot be left in the pension plan).
(e) While participating in the planned retirement benefit, a member shall continue making his/her applicable employee contributions until termination of employment.
(f) Any member who has reached his/her normal retirement date and has submitted the written election form to participate in the planned retirement benefit shall maintain the right to participate in the planned retirement benefit up to the date on which the maximum period applicable to the member has been reached or employment has terminated pursuant to the terms of the planned retirement benefit as provided in this subsection, and no subsequent amendment to the pension plan may alter this right.
(g) For any member who reached his/her normal retirement date between October 1, 2011 and March 4, 2014, the time such member worked between his/her normal retirement date (on or after October 1, 2011) and the date the member submits the planned retirement benefit election form may be included in the employee's planned retirement benefit participation period, provided the member shall not exceed the maximum period of participation set forth in division (EE)(1)(c) above.
(h) The lump sum payment, if elected, shall be calculated based upon the monthly values of the member's final pension annuity benefit determined using the member's credited service, average final compensation, and multiplier, as provided in the pension plan as of the beginning of the planned retirement benefit participation period, plus earnings on such amounts as provided in division (EE)(1)(i) below, subject to the limitations in division (EE)(1)(i) below.
(i) Investment earnings applicable to any lump sum payment shall be calculated in arrears using the net investment rate earned by the pension fund on its net assets for each month of credited service worked during the planned retirement benefit participation period and applied to the prior pension annuity balance including all prior months of credited service, including prior monthly earnings. The investment earnings shall be compounded monthly to determine the amount of investment earnings to be credited during each year of the planned retirement benefit participation period. The aggregate value of the monthly investment earnings calculations will determine the amount of investment earnings to be credited for the planned retirement benefit participation period. The investment earnings credited to said member will be net of the investment earnings retained by the pension fund per division (EE)(1)(j) below.
(j) With regard to any plan earnings calculated into the member's lump sum payment, the member will share in plan losses in those years where plan earnings are negative. In any year where plan earnings are greater than 4% (applied monthly at the rate of .327%), the next 2% (applied monthly at the rate of .165%) of plan earnings (i.e., the annual earnings between 4% and 6%) shall be excluded from the employee's lump sum payment and retained by the pension plan. When the pension plan is 80% funded, the amount of investment earnings to be thereafter retained by the plan (i.e., to be excluded from members' lump sum payments at that time) will be reduced to the first 1% (applied monthly consistently with the above) of plan earnings in the years that earnings are greater than 4%, until the plan is 90% funded, at which time no further exclusions will be taken from plan earnings in years the plan earnings exceed 4%. The above-noted exclusions from earnings shall automatically resume at the same amounts if the plan's funding drops back below 90% or 80%.
(k) If an eligible member who is participating in the planned retirement benefit dies during his/her planned retirement benefit participation period, then the member's designated beneficiary (or beneficiaries) (per division (M) above) shall make the election provided in division (EE)(1)(d) above with respect to the planned retirement benefits earned.
(2) There is hereby created a benefit to be known as the partial lump sum distribution benefit.
(a) The partial lump sum distribution benefit, as described below, will be available only to members who (i) reach their normal retirement date, as defined in division (E) of this section, on or after March 5, 2014 and (ii) do not enter the DROP plan.
(b) The partial lump sum distribution benefit is an optional form of payment of a member's retirement benefit that allows a member to receive a fixed percentage, not to exceed 25%, of the member's benefit as a lump sum payment and the balance of the member's benefit as a monthly annuity. The value of the combined lump sum and annuity benefits to which a member is entitled will be actuarially equivaient to the value of benefits otherwise payable, so there is no cost to the plan.
(3) A member who is eligible for the planned retirement benefit may elect to participate in the planned retirement benefit or the partial lump sum distribution benefit but may not participate in both of these optional benefits.
(FF) Distribution of benefits. As of March 20, 2019, this plan shall pay all benefits in accordance with a good faith interpretation of the requirements of section 401(a)(9) of the Internal Revenue Code and the regulations promulgated thereunder, as applicable to a governmental plan as defined in section 414(d) of the Internal Revenue Code. Notwithstanding any other provision of this plan to the contrary, a form of retirement income payable from this plan shall satisfy the following conditions:
(1) If the retirement income is payable before the participant death:
(a) It shall either be distributed or commence to the participant not later than April 1 of the calendar year following the later of the calendar year in which the participant attains age 70 1/2, or the calendar year in which the participant retires; and
(b) The benefit shall be paid over the life of the participant or over the lifetimes of the participant and designated beneficiary and shall be paid over the period extending not beyond the life expectancy of the participant and designated beneficiary.
Where benefit payments have commenced in accordance with the preceding paragraphs and the participant dies before his or her entire interest in the plan has been distributed, the remaining portion of such interest in the plan shall be distributed no less rapidly than under the form of distribution in effect at the time of the participant's death.
(2) If the participant dies before distributions begin, the participant's entire interest shall be distributed, or begin to be distributed, no later than as follows.
(a) If the participant's surviving spouse is the participant's sole designated beneficiary, then distributions to the surviving spouse shall 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 1/2, if later.
(b) If the participant's surviving spouse is not the participant's sole designated beneficiary, then distributions to the designated beneficiary shall begin by December 31 of the calendar year immediately following the calendar year in which the participant died.
(c) 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 shall be distributed by December 31 of the calendar year containing the fifth anniversary of the participant's death.
(d) If the participant's surviving spouse is the participant's sole designated beneficiary and the surviving spouse dies after the participant but before distributions to the surviving spouse are required to begin, this division (FF)(2), other than division (FF)(2)(a), shall apply as if the surviving spouse were the participant. For purposes of this division, unless subdivision (FF)(2)(d) applies, distributions are considered to begin on the participant's required beginning date. If division (FF)(2)(d) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under division (FF)(2)(d). If distributions under an annuity meeting the requirements of this division (FF) commence to the participant before the participant's required beginning date (or to the participant's surviving spouse before the date distributions are required to begin to the surviving spouse under division (FF)(2)(a)), the date distributions are considered to begin is the date distributions actually commence.
(GG) Prohibited transaction. The Board may not engage in any transaction prohibited under section 503(b) of the Internal Revenue Code.
(HH) Qualification of plan. It is intended that this plan shall constitute a qualified public pension plan under the applicable provisions of the Internal Revenue Code for a qualified plan under section 401(a) of the Internal Revenue Code and a governmental plan under section 414(d) of the Internal Revenue Code, as now in effect and as may be amended from time to time. Any modification or amendment of this plan may be made retroactively, if necessary or appropriate to maintain qualification.
(II) Reemployment after retirement. To the extent permitted under the Internal Revenue Code with regard to in-service distributions, the benefits otherwise payable to a retiree who has retired under the normal retirement provisions of this plan and attained age 62 shall not be discontinued if such retiree is subsequently reemployed by the city.
(JJ) Benefits for members hired prior to March 5, 2014 and employed by the city as of June 19. 2019.
Notwithstanding any provision contained in this section, general fund members hired prior to October 1, 2011 and employed on June 19, 2019 shall continue to receive the same retirement benefits under the benefit structure effective October 1, 2011 that they received immediately prior to October 1, 2011.
Notwithstanding any provision contained in this section, non-general fund members hired prior to March 5, 2014 and employed on June 19, 2019 shall continue to receive the same retirement benefits under the benefit structure effective March 5, 2014 that they received immediately prior to March 5, 2014.
Notwithstanding any provision contained in this section, general fund members hired on or after October 1, 2011 but prior to March 5, 2014 and employed on June 19, 2019 shall continue to receive the same retirement benefits under the benefit structure effective March 5, 2014 that they received immediately prior to March 5, 2014.
Notwithstanding any provision contained in this section, members hired prior to July 15, 2009. shall not be obligated to make payment of contributions for overtime hours that were earned by general fund members on and after October 1, 2011 through June 19, 2019, and for overtime hours that were earned by non-general fund members on and after March 5, 2014 through June 19, 2019.
(1) Benefits and employee contributions for members hired prior to July 15, 2009.
(a) Notwithstanding any other provision contained in this section to the contrary, members hired prior to July 15, 2009 and employed by the city on June 19, 2019 shall receive as follows:
1. The normal retirement dates shall be age 55 with five years of service or 25 years of credited service regardless of age;
2. The vesting period shall be five years of credited service;
3. Upon reaching the normal retirement date, a member is entitled to a normal retirement benefit of 3% of average final compensation for each year of credited service, up to a maximum benefit of 81% of average final compensation;
4. Average final compensation shall be based on the member's highest 78 consecutive bi-weekly pay periods of credited service. Payments for accumulated sick and annual leave received by such member following separation from employment and included in compensation in accordance with the definition of compensation below shall be deemed to have been received in the final pay period;
5. Compensa tion. A member's gross wages received from the city, including overtime and payments for accumulated annual leave and accumulated sick leave (subject to limitations set forth in state law), except as provided below:
A. For members hired prior to October 1, 2002 and employed by the city on that date, compensation shall include payments for accumulated annual leave, but the amount of accumulated sick leave included in such member's compensation shall not exceed the amount accumulated as of October 1, 2002 (including the maximum limitation as of October 1, 1994). Such accumulated sick and annual leave shall be calculated at the member's total rate of pay at the time of retirement, or entry into the DROP plan or planned retirement benefit.
B. For members hired after October 1, 2002 compensation shall include payments for accumulated annual leave, but no payment for accumulated sick leave shall be included in such member's compensation. Such accumulated annual leave shall be calculated at the member's total rate of pay at the time of retirement, or entry into the DROP plan or planned retirement benefit.
C. For members hired prior to July 15, 2009 who retire or enter the DROP on or after August 17, 2009, compensation shall exclude all earnings and payouts for blood time and compensatory time. In addition, the payouts for accumulated annual leave that may be counted as compensation for such members shall not exceed 125 hours for employees who retire from a position covered by the general employees' bargaining unit; and shall not exceed 60 hours per year for employees who retire from a position not covered by the general employees' bargaining unit.
D. Employee-elective salary reductions or deferrals to any salary reduction, deferred compensation, or tax-sheltered annuity program authorized under the rules of the Internal Revenue Service Code shall be included in compensation for retirement purposes. Compensation in excess of the limitations set forth in section 401(a)(17) of the Internal Revenue Code, adjusted in accordance with U.S. Treasury Department regulations, shall be disregarded.
E. For the purposes of this division, the terms accumulated annual leave and accumulated sick leave shall be capped at the amount reflected in the payroll records of the city for each member of the plan in the first full pay period of March 2014.
6. Eligibility for non-duty disability benefits shall commence upon attaining five years of credited service. Except as set forth in division (L)(3) above, upon total and permanent disability of a member hired prior to July 15, 2009 having at least five years of credited service, from causes other than the performance of an act of duty as an employee of the city, resulting in the inability of the member to perform the specific duties of his or her position in the service of the city, such member shall be entitled to a disability retirement benefit equal in rate to that provided for service retirement, but not less than 20% of average salary. Based on the available medical information, the Human Resources Director shall make the final determination regarding the ability of the member to perform the specific duties of his or her position.
7. A member who separates from city employment prior to his or her normal retirement date after having completed at least five years of credited service and does not receive a refund of contributions shall have the right to receive a service retirement benefit beginning at age 55 based on the benefit formula in effect on the date of separation from city employment and years of credited service and average final compensation on that date.
8. A member shall be eligible to participate in the DROP plan or the planned retirement benefit.
9. For members hired prior to July 15, 2009 who retire on or after August 17, 2009 without entering the DROP, a 2% COLA shall be payable annually commencing three years after retirement benefits begin. For members hired prior to July 15, 2009 who enter the DROP on or after August 17, 2009, a 2% COLA will be payable annually, commencing the later of three years after retirement benefits begin or one year after separation from employment following participation in the DROP.
(b) Notwithstanding any other provision of the plan, such members shall contribute 9% of their compensation to the plan.
(2) Benefits and employee contributions for general fund members hired on or after July 15, 2009 but prior to October 1, 2011.
(a) Notwithstanding any other provision contained in this section to the contrary, members hired on or after July 15, 2009 but prior to October 1, 2011 shall receive the same retirement benefits as members hired prior to July 15, 2009. except as follows:
1. The normal retirement dates shall be age 57 or older with 25 years of credited service; age 60 or older with seven years of credited service; or 30 years of credited service, regardless of age.
2. The vesting period shall be seven years of credited service.
3. Upon reaching the normal retirement date, a member is entitled to a normal retirement benefit of 2.5% of average final compensation for each year of credited service, up to a maximum benefit of 81% of average final compensation.
4. Average final compensation shall be based on the member's highest 104 consecutive bi-weekly pay periods of credited service.
5. Compensation shall include only the member's base pay, which includes longevity pay, and certification pay, but no other payments shall be included.
6. Eligibility for non-duty disability benefits shall commence upon attaining seven years of credited service. Except as set forth in division (L)(3) above, upon total and permanent disability of a member hired as defined in this division (2) having at least seven years of credited service, from causes other than the performance of an act of duty as an employee of the city, resulting in the inability of the member to perform the specific duties of his or her position in the service of the city, such member shall be entitled to a disability retirement benefit equal in rate to that provided for service retirement, but not less than 20% of average salary. Based on the available medical information, the Human Resources Director shall make the final determination regarding the ability of the member to perform the specific duties of his or her position.
7. A member who separates from city employment prior to his or her normal retirement date after having completed at least seven years of credited service and does not receive a refund of contributions shall have the right to receive a service retirement benefit beginning at age 60 based on the benefit formula in effect on the date of separation from city employment and years of credited service and average final compensation on that date.
8. The member shall not be eligible to participate in the DROP plan or the planned retirement benefit.
9. The member shall not be eligible for a COLA.
(b) Notwithstanding any other provision of the plan, such members shall contribute 9% of their compensation to the plan.
(3) Benefits and employee contributions for non-general fund members hired after July 15, 2009 but prior to March 5, 2014.
(a) Notwithstanding any other provision contained in this section to the contrary, members hired after July 15, 2009 but prior to March 5, 2014 shall receive the same retirement benefits as members hired prior to July 15, 2009, except as follows:
1. The normal retirement dates shall be age 57 or older with 25 years of credited service; age 60 or older with seven years of credited service; or 30 years of credited service, regardless of age.
2. The vesting period shall be seven years of credited service.
3. Upon reaching the normal retirement date, a member is entitled to a normal retirement benefit of 2.5% of average final compensation for each year of credited service, up to a maximum benefit of 81% of average final compensation.
4. Average final compensation shall be based on the member's highest 104 consecutive bi-weekly pay periods of credited service.
5. Compensation shall include only the member's base pay, which includes longevity pay, and certification pay, but no other payments shall be included.
6. Eligibility for non-duty disability benefits shall commence upon attaining seven years of credited service. Except as set forth in division (L)(3) above, upon total and permanent disability of a member hired as defined in this division (3) having at least seven years of credited service, from causes other than the performance of an act of duty as an employee of the city, resulting in the inability of the member to perform the specific duties of his or her position in the service of the city, such member shall be entitled to a disability retirement benefit equal in rate to that provided for service retirement, but not less than 20% of average salary. Based on the available medical information, the Human Resources Director shall make the final determination regarding the ability of the member to perform the specific duties of his or her position.
7. A member who separates from city employment prior to his or her normal retirement date after having completed at least seven years of credited service and does not receive a refund of contributions shall have the right to receive a service retirement benefit beginning at age 60 based on the benefit formula in effect on the date of separation from city employment and years of credited service and average final compensation on that date.
8. The member shall not be eligible to participate in the DROP plan or the planned retirement benefit.
9. The member shall not be eligible for a COLA.
(b) Notwithstanding any other provision of the plan, such members shall contribute 9% of their compensation to the plan.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2011-10, passed 4-6- 11; Am. Ord. O-2011-25, passed 9- 7-11; Am. Ord. O-2014-02, passed 3-5-14; Am. Ord. O-2016-06, passed 5-18-16; Am. Ord. O-2016- 08, passed 5-18-16; Am. Ord. O-2018-15, passed 10-17-18; Am. Ord. O-2019-06, passed 3-20-19; Am. Ord. O-2019-14, passed 6-19-19)
When a city employee who is in the Employees' Retirement Fund leaves the services of the city due to the transfer of that employees' function to another level of government, and the city employee goes immediately into the service of the other level of government, and the other level of government and the city have a contractual arrangement whereby such employee may remain in the Employees' Retirement Fund of the city, then such other employee will be allowed to remain [in] the Employees' Retirement Fund, with the city's contribution to said Fund paid by the other level of government unless otherwise so provided.
(Ord. O-2010-30, passed 7-21-10)
(A) The assets of the Hollywood City Employee's Supplemental Retirement System (the "supplemental plan") shall be merged into the assets of this plan, subject to preservation of the rights of those employees who are currently in the 1% noncontributory portion of the supplemental plan ("1% supplemental plan") prior to the date of merger making an irrevocable election to remain in the 1% supplemental plan within 90 days of written notification to the employee by the Retirement Board of Trustees.
(B) Those employees currently in the 1% supplemental plan who enter this plan shall receive a benefit of 1% per year for each year of credited service up to the date of the city's acknowledged receipt of a member's irrevocable election pursuant to this section. In the event that a member of the supplemental plan desires to increase his or her benefit rate for service prior to the date of merger, he or she shall do so at a rate and under such terms as designated by the retirement board of trustees for this plan. Those employees currently in the 7% contributory portion of the supplemental plan who enter this plan shall receive a benefit of 3% per year for all years of credited service. For purposes of determining whether the transferred employee is eligible for any benefits under this plan, his or her credited service, both prior to and after the date of merger, shall be included.
(C) Members of the Employees Supplemental Retirement System shall not be eligible to participate in the Early Retirement Incentive Program (ERIP) as described in § 33.025(H)(5).
(D) Those employees currently in the 1% supplemental plan shall cease to be in said plan and shall henceforth be members of this plan; provided, however, that the benefit rate for such employees' past service shall remain at 1%. All benefits accrued by such employees as a member of the 1% supplemental plan shall be frozen, and their vesting rights in the 1% supplemental plan shall not be affected. For purposes of determining whether any such employee is eligible for any benefits under this plan, his or her credited service under both the 1% supplemental plan and this plan shall be included. Except for the benefit rate and vesting rights as provided above, such employees shall be entitled to all benefits of this plan.
(Ord. O-2010-30, passed 7-21-10)
In the event that a city employee transfers from another retirement plan sponsored by the city to this plan or from this plan to another retirement plan sponsored by the city, his or her pension status will be subject to the following rules:
(A) DATE OF TRANSFER shall be the date when the change in job status occurs such that he or she is considered an employee pursuant to this plan.
(B) A member's total retirement benefits shall consist of a combination of the following:
(1) Benefits payable by the previous plan. The member's accumulated contributions, if any, shall remain funds of the previous plan. The member's retirement benefit payable from the previous plan shall be calculated by using benefit percentage rates and his or her credited service as of the date of transfer, and the greater of his salary as of the date of his or her termination of employment or as the date of transfer. This benefit shall be payable commencing on the member's normal retirement date pursuant to this plan. The transferred employee shall not be eligible for any other benefits from the previous plan.
(2) Benefits payable by this plan. For purposes of determining eligibility for retirement benefits under this plan, the employee's credited service prior to and after the date of transfer shall be included. For purposes of determining the amount of benefits payable under this plan, excluding death and disability benefits, only service following the date of transfer shall be included. For purposes of determining the amount of any death or disability benefits payable under this plan, credited service both prior to and after the date of transfer shall be included.
(C) In the event that a city employee who is a member of this plan is no longer considered an employee pursuant to this plan, the rules regarding his or her transfer to another retirement plan sponsored by the city shall be as set forth above, provided such other plan has appropriate language to accept transfers on the same basis.
(D) If, prior to the date when this language regarding transferred employees becomes effective, an employee had transferred from one retirement plan sponsored by the city to another and had thereby lost credit under the previous plan for his or her service prior to the date of transfer, his or her credited service under the previous plan shall be restored under the following conditions:
(1) The person must be an employee of the city on the date this language becomes effective.
(2) Upon notification, the employee must repay to the previous plan that amount of his or her contributions that he or she received from the previous plan due to his transfer to another plan within the city. The employee will have 60 days to exercise this option. He or she will be given one year to repurchase every two years of prior service.
(3) All previous contributions must be repaid prior to the employee's retirement to be eligible for any benefit under the previous plan.
(4) Upon satisfaction of these conditions, the employee will be credited with service in each plan as indicated in division (B) above.
(E) If a member of this plan transferred to the Police Officer's Retirement System or the Firefighters’ Pension System and subsequently participates in the DROP plan of the Police Officer's Retirement System or the Firefighters’ Pension System, any DROP benefit being held for the member in this plan may be transferred from this plan to the Police Officer's Retirement System or the Firefighters’ Pension System.
(F) The coordination of benefits provision in this section shall have no application to any city employee who becomes a Police Officer or Firefighter on or after July 15, 2009.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2014-02, passed 3-5- 14; Am. Ord. O-2016-06, passed 5- 18-16)
(A) This plan is intended to comply with all applicable requirements for qualified governmental retirement plans in sections 401(a) and 415(b) of the Internal Revenue Code, and regulations promulgated thereunder. Upon retirement, the section 415(b) limitation will not be reduced to account for the value of the cost-of-living-adjustment provided in § 33.025(J). In determining the annual update to the section 415(b) limitation after retirement, the cost of living adjustment provided in § 33.025(J) shall not operate to increase the limitation on benefits contained in section 415(b)(1) of the Internal Revenue Code, and in no event will the amount payable to a member in any limitation year be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to Code section 415(d) and the regulations thereunder.
(B) In the event the city receives approval from the Internal Revenue Service for tax qualification of this plan under the provisions of section 414(h)(2) of the Internal Revenue Code, such approval shall be implemented as soon thereafter as practicable.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2013-25, passed 12-18-13)
This subchapter, including this section, may be amended, in whole or in part, or repealed by the City Commission upon approval of any such amendment or repeal by:
(A) A "majority plus one" vote of the City Commission and 50% plus one of the voting members of the Employee's Retirement Fund; or
(B) A majority vote of those qualified electors of the city voting in a referendum election called for such purpose by the City Commission and held in accordance with the provisions of law relating to elections currently in force in the city, or held in conjunction with a primary, general, or other special election held in the city.
(Ord. O-2010-30, passed 7-21-10)
FIREFIGHTER'S PENSION AND RETIREMENT
(A) It is the legislative intent and purpose of this subchapter to provide certain retirement, disability, death and withdrawal benefits to firefighters of the city in the amounts and under the terms and conditions herein set forth.
(B) The purpose of the system is to provide an orderly means whereby firefighters of the city who become superannuated or otherwise incapacitated as the result of age or disability may be retired from active service without prejudice and without inflicting a hardship upon the firefighters retired, and to enable such firefighters to accumulate reserves for themselves and their beneficiaries to provide for old age, disability, death, and termination of employment, thus effecting economy and efficiency in the administration of city government.
(Ord. O-2011-26, passed 9-7-11; Am. Ord. O-2019-08, passed 3-20-19)
For purposes of this subchapter the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ACCUMULATED CONTRIBUTIONS. A member's own contributions without interest. For those members who purchase credited service with interest or at no cost to the system, any payment representing the amount attributable to member contributions based on the applicable member contribution rate, and any payment representing interest and any required actuarially calculated payments for the purchase of such credited service, shall be included in accumulated contributions.
ACTUARIAL EQUIVALENT. A benefit or amount of equal value, based upon the 1983 Group Annuity Mortality Table and an interest rate of 8% per annum, sex distinct.
AVERAGE FINAL COMPENSATION. For purposes of Tier 1 members, AVERAGE FINAL COMPENSATION shall include the average of the member's highest three years of earnings preceding the actual retirement or termination date of such member. For purposes of Tier 2 members hired as firefighters prior to October 1, 2011, AVERAGE FINAL COMPENSATION shall include the arithmetic average of earnings for the five highest years of credited service prior to retirement, termination, or death. For purposes of Tier 2 members hired as firefighters on or after October 1, 2011, AVERAGE FINAL COMPENSATION shall include the arithmetic average of earnings for the five highest consecutive years of the last ten years of credited service prior to retirement, termination, or death. For both Tier 1 members and Tier 2 members, a year shall be 12 consecutive months.
BENEFICIARY. The person or persons entitled to receive benefits hereunder at the death of a member who has or have been designated in writing by the member and filed with the Board. A trust may be named as a beneficiary, with regard to DROP account distributions at the death of the member in the absence of any other living survivor, or in the case of an account held by a survivor, upon the death of that survivor. The trust may only be used to receive final distribution of any remaining DROP balance after the death of the member or named survivor. If no such designation is in effect, or if no person so designated is living, at the time of death of the member, the beneficiary shall be the estate of the member.
BOARD. The Board of Trustees, which shall administer and manage the system herein provided and serve as trustees of the Fund.
CITY. The City of Hollywood, Florida.
CODE. The Internal Revenue Code of 1986, as amended from time to time.
COMPENSATION. For purposes of Tier 1 members, COMPENSATION shall include wages, workers' compensation/supplemental compensation, cash conversion of holiday benefits, not more than 300 hours of overtime, 70% of the cash payment of accumulated, unused annual leave paid at the time of retirement or entry into DROP (applicable only to those employees hired on or before July 3, 2013), expense allowances, and educational incentive payments from the Insurance Commissioner's Trust Fund. Tier 2 members shall receive the same COMPENSATION as Tier 1 members, except that COMPENSATION for Tier 2 members shall include not more than 200 hours of overtime. For the purposes of this definition, the term ACCUMULATED, UNUSED ANNUAL LEAVE shall be capped at the amount reflected in the payroll records of the city for each member of the plan in the first full pay period of July 2013.
CREDITED SERVICE.
(1) The total number of years and fractional parts of years of service (computed in quarters with one to three months being one-quarter of a year, more than three but not more than six months being one-half of a year, more than six but not more than nine months being three-quarters of a year, and more than nine but not more than 12 months being one year as a Firefighter with member contributions, when required, omitting intervening years or fractional parts of years when such member was not employed by the city as a Firefighter. A member may voluntarily leave his or her accumulated contributions in the Fund for a period of five years after leaving the employ of the Fire Department pending the possibility of being reemployed as a Firefighter, without losing credit for the time that he or she was a member of the system. If a vested member leaves the employ of the Fire Department, his or her accumulated contributions will be returned only upon his or her written request. If a member who is not vested is not reemployed as a Firefighter with the Fire Department within five years, his or her accumulated contributions shall be returned. Upon return of a member's accumulated contributions, all of his or her rights and benefits under the system are forfeited and terminated. Upon any reemployment, a Firefighter shall not receive credit for the years and fractional parts of years of service for which he or she has withdrawn his or her accumulated contributions from the Fund, unless the Firefighter repays into the Fund the contributions he or she has withdrawn, with interest, as determined by the Board, within six months after his or her reemployment.
(2) The years or fractional parts of a year that a member serves in the military service of the Armed Forces of the United States, the United States Merchant Marine or the United States Coast Guard, voluntarily or involuntarily, after separation from employment as a Firefighter with the city to perform training or service, shall be added to his or her years of credited service for all purposes, including vesting, provided that:
(a) The member must return to his or her employment as a Firefighter within one year from the earlier of the date of his or her military discharge or his or her release from active service.
(b) The member is entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act (USERRA), (P.L.103353).
(c) The maximum credit for military service pursuant to this division shall be five years.
(3) Members may purchase up to a total of four years of credit for military service prior to employment, or prior service as a full-time municipal, county, state, or federal firefighter which meets the definition of "firefighter" as provided in this plan, or a combination of the two types of service. In the case of prior fire service, the member shall certify that no retirement benefit is or will be paid on account of the prior fire service. Members purchasing credit for prior service under this division shall pay the full actuarial cost of the credited service as determined by the actuary for the plan. Credited service purchased pursuant to this section shall not count toward a member's vesting. The Board of Trustees shall provide uniform rules for the administration of this benefit.
EFFECTIVE DATE. October 1, 1988.
FIREFIGHTER. An actively employed full-time person employed by the city, including his or her initial probationary employment period, who is certified as a Firefighter as a condition of employment in accordance with the provisions of F.S. § 633.35 and whose duty it is to extinguish fires, to protect life and to protect property.
FUND. The trust fund established herein as part of the system.
MEMBER. A Firefighter who fulfills the prescribed membership requirements. Benefit improvements which, in the past, have been provided for by amendments to the system adopted by city ordinance, and any benefit improvements which might be made in the future shall apply prospectively and shall not apply to members who terminate employment or who retire prior to the effective date of any ordinance adopting such benefit improvements, unless such an ordinance specifically provides to the contrary.
PLAN YEAR. The 12-month period beginning October 1 and ending September 30 of the following year.
RETIREE. A former member who has entered retirement status.
RETIREMENT. A member's separation from city employment with eligibility for immediate receipt of benefits under the system.
SYSTEM. The City of Hollywood Firefighters' Pension System as contained herein and all amendments thereto.
TIER 1 MEMBER. A member as defined in this section hired as a Firefighter prior to July 16, 2009.
TIER 2 MEMBER. A member as defined in this section hired as a Firefighter on or after July 16, 2009.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2011-26, passed 9-7- 11; Am. Ord. O-2017-07, passed 5-3-17; Am. Ord. O-2019-08, passed 3-20-19)
Conditions of eligibility. All Firefighters as of the effective date, and all Firefighters employed subsequent to the effective date, shall be members of this system as a condition of employment. Effective October 1, 2004, all members who were employed by the city as Firefighters on or before May 1, 1977 shall remain as previous members of this pension system, as opposed to the supplemental retirement system, and shall receive all related rights and benefits. However, such members shall not obtain the benefits of both this pension plan and the supplemental retirement system.
(Ord. O-2010-30, passed 7-21-10)
(A) The sole and exclusive administration of and responsibility for the proper operation of the system and for making effective the provisions of this subchapter is hereby vested in a Board of Trustees. The Board is hereby designated as the plan administrator. The Board shall consist of five Trustees, one of whom shall be the Chief of the Fire Department or his or her designee, one of whom, unless otherwise prohibited by law, shall be appointed by the Hollywood City Commission, and three of whom shall be regularly employed Firefighters, who shall be elected by a majority of the regularly employed Firefighters. If the Chief of the Fire Department chooses to designate a Board member instead of serving himself or herself, such member shall be a regularly employed Firefighter. The City Commission appointed Trustee shall serve as Trustee for a period of two years, unless he or she sooner vacates the office or is sooner replaced by the Hollywood City Commission at whose pleasure he or she shall serve. The Chief of the Fire Department shall serve as long as he or she shall continue to hold office as Chief and upon a vacancy in the office of Chief, his or her respective successor shall succeed to the position of Trustee. Each member Trustee shall serve as Trustee for a period of three years, unless he or she sooner leaves the employment of the city as a Firefighter or otherwise vacates his or her office as Trustee, whereupon a successor shall be chosen in the same manner as the departing Trustee. Each Trustee may succeed himself in office. The Board shall establish and administer the nominating and election procedures for each election. The Board shall meet at least quarterly each year. The Board shall be a legal entity with, in addition to other powers and responsibilities contained herein, the power to bring and defend lawsuits of every kind, nature, and description.
(B) The City Commission appointed Trustee shall serve as Chairman of the Board. The Trustees shall, by a majority vote, elect a Secretary. The Secretary of the Board shall keep a complete minute book of the actions, proceedings, or hearings of the Board. The Trustees shall not receive any compensation as such, but may receive expenses and per diem as provided by law.
(C) Each Trustee shall be entitled to one vote on the Board. Three affirmative votes shall be necessary for any decision by the Trustees at any meeting of the Board.
(D) The Board shall engage such actuarial, accounting, legal, and other services as shall be required to transact the business of the system. The compensation of all persons engaged by the Board and all other expenses of the Board necessary for the operation of the system shall be paid from the Fund at such rates and in such amounts as the Board shall agree. In the event the Board chooses to use the city's legal counsel, actuary or other professional, technical or other advisors, it shall do so only under terms and conditions acceptable to the Board.
(E) The duties and responsibilities of the Board shall include, but not necessarily be limited to, the following:
(1) To construe the provisions of the system and determine all questions arising thereunder;
(2) To determine all questions relating to eligibility and membership;
(3) To determine and certify the amount of all retirement allowances or other benefits hereunder;
(4) To establish uniform rules and procedures to be followed for administrative purposes, benefit applications and all matters required to administer the system;
(5) To distribute to members, at regular intervals, information concerning the system;
(6) To receive and process all applications for benefits;
(7) To authorize all payments whatsoever from the Fund, and to notify the disbursing agent, in writing, of approved benefit payments and other expenditures arising through operation of the system and Fund;
(8) To have performed actuarial studies and valuations, at least as often as required by law, and make recommendations regarding any and all changes in the provisions of the system; and
(9) To perform such other duties as are required to prudently administer the system.
(F) Nothing herein shall empower the Board to amend the provisions of the system without the approval of the City Commission.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2017-17, passed 10-4-17)
Establishment and operation of Fund.
(A) As part of the system, there is hereby established the Fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the system, including the assets of the prior firefighters' pension systems of the city.
(B) The actual custody and supervision of the Fund (and assets thereof) shall be vested in the Board. Payment of benefits and disbursements from the Fund shall be made by the disbursing agent but only upon written authorization from the Board.
(C) All funds of the Firefighters' Pension System may be deposited by the Board with the Treasurer of the city, acting in a ministerial capacity only, who shall be liable in the same manner and to the same extent as he or she is liable for the safekeeping of funds for the city. However, any funds so deposited with the Treasurer of the city shall be kept in a separate fund by the Treasurer or clearly identified as such funds of the system. In lieu thereof, the Board shall deposit the funds of the system in a qualified public depository as defined in F.S. § 280.02, which depository with regard to such funds shall conform to and be bound by all of the provisions of F.S. Ch. 280. In order to fulfill its investment responsibilities as set forth herein, the Board may retain the services of a custodian bank, an investment consultant, one or more investment advisors (investment managers) registered under the Investment Advisors Act of 1940 or otherwise exempt from such required registration, an insurance company, or a combination of these, for the purposes of investment decisions and management. Such investment advisor(s) shall have discretion, subject to the provisions of division (F) below, in the investment of all Fund assets.
(D) All funds and securities of the system may be commingled in the Fund, provided that accurate records are maintained at all times reflecting the financial composition of the Fund, including accurate current accounts and entries as regards the following:
(1) Current amounts of accumulated contributions of members on both an individual and aggregate account basis; and
(2) Receipts and disbursements; and
(3) Benefit payments; and
(4) Current amounts clearly reflecting all monies, funds and assets whatsoever attributable to contributions and deposits from the city; and
(5) All interest, dividends and gains (or losses) whatsoever; and
(6) Such other entries as may be properly required so as to reflect a clear and complete financial report of the Fund.
(E) An audit shall be performed annually by a certified public accountant for the most recent fiscal year of the system showing a detailed listing of assets and a statement of all income and disbursements during the year. Such income and disbursements must be reconciled with the assets at the beginning and end of the year. Such report shall reflect a complete evaluation of assets on both a cost and market basis, as well as other items normally included in a certified audit.
(F) The Board shall have the following investment powers and authority:
(1) The Board shall be vested with full legal title to said Fund, subject, however, and in any event to the authority and power of the Hollywood City Commission to amend or terminate this Fund, provided that no amendment or Fund termination shall ever result in the use of any assets of this Fund except for the payment of regular expenses and benefits under this system, except as otherwise provided herein. All contributions from time to time paid into the Fund, and the income thereof, without distinction between principal and income, shall be held and administered by the Board or its agent in the Fund and the Board shall not be required to segregate or invest separately any portion of the Fund.
(2) The Board shall have exclusive charge of the investment of any assets in the Fund not needed for the Fund's current obligations, and may invest such assets in accordance with the written investment policy adopted by the Board pursuant to division (F)(3) below. Board members must discharge their duties with respect to the system solely in the interest of the participants and beneficiaries and:
(a) For the exclusive purpose of providing benefits to participants and their beneficiaries, and defraying reasonable expenses of administering the system;
(b) With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; and
(c) By diversifying the investments of the system so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.
(3) The Board shall adopt and periodically update a written investment policy in accordance with F.S. § 112.661, as such statute may be amended in the future. Within the limitations of the foregoing standards and investment policy, the Board is authorized to acquire and retain in the Fund every kind of investment, specifically including, but not limited to, stocks, bonds, securities, debentures, real estate, mutual funds, trusts, and other obligations which persons of prudence, discretion and intelligence acquire or retain for their own account.
(4) The intent of this division is to exclude any and all restrictions on investments otherwise imposed by F.S. Ch. 175, but only if this subsection, with the exclusion of such restrictions, is in compliance with the provisions of F.S. Ch. 175. If this division, with the exclusion of the restrictions imposed by F.S. Ch. 175, is deemed not to be in compliance with F.S. Ch. 175, then such restrictions shall be incorporated herein in their entirety.
(5) In carrying out its investment duties, the Board shall engage such custodial, investment management, and other professional consultants as the Board deems necessary and prudent.
(6) At least once every three years, and more often as determined by the Board, the Board shall retain a professionally qualified independent consultant, as defined F.S. § 175.071 to evaluate the performance of all current investment managers and make recommendations regarding the retention of all such investment managers. These recommendations shall be considered by the Board at its next regularly scheduled meeting.
(7) The Board may retain in cash and keep unproductive of income such amount of the Fund as it may deem advisable, having regard for the cash requirements of the system.
(8) The Board may cause any investment in securities held by it to be registered in or transferred into its name as trustee or into the name of such nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the Fund.
(9) The Board is empowered, but is not required, to vote upon any stocks, bonds, or securities of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations, consolidations, and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust or any protective or like committee with the trustees or with depositories designated thereby; to amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally to exercise any of the powers of an owner with respect to stocks, bonds, or other investments comprising the Fund which it may deem to be to the best interest of the Fund to exercise.
(10) The Board shall not be required to make any inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power contained herein.
(11) Where any action which the Board is required to take or any duty or function which it is required to perform either under the terms herein or under the general law applicable to it as trustee under this subchapter, can reasonably be taken or performed only after receipt by it from a member, the city, or any other entity, of specific information, certification, direction or instructions, the Board shall be free of liability in failing to take such action or perform such duty or function until such information, certification, direction or instruction has been received by it.
(12) Any overpayments or underpayments from the Fund to a member, retiree or beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the Board in such a manner that the actuarial equivalent of the benefit to which the member, retiree or beneficiary was correctly entitled, shall be paid. Overpayments shall be charged against payments next succeeding the correction or collected in another manner if prudent. Underpayments shall be made up from the Fund in a prudent manner.
(13) The Board shall sustain no liability whatsoever for the sufficiency of the Fund to meet the payments and benefits provided for herein.
(14) In any application to or proceeding or action in the courts, only the Board shall be a necessary party, and no member or other person having an interest in the Fund who is not a party to the proceeding shall be entitled to any notice or service of process. Any judgment entered in such a proceeding or action shall be conclusive upon all persons.
(15) Any of the foregoing powers and functions reposed in the Board may be performed or carried out by the Board through duly authorized agents, provided that the Board at all times maintains continuous supervision over the acts of any such agent; provided further, that legal title to said Fund shall always remain in the Board.
(Ord. O-2010-30, passed 7-21-10)
(A) Member contributions.
(1) Tier 1 member contributions amount. Each Tier 1 member shall be required to make regular contributions to the Fund in the amount of 8% of his or her compensation. Tier 1 member contributions picked up by the city on behalf of the Tier 1 member shall be deposited with the Board immediately after each pay period. The contributions made by each Tier 1 member to the Fund shall be designated as employer contributions pursuant to section 414(h) of the Internal Revenue Code. Such designation is contingent upon the contributions being excluded from the Tier 1 members' gross income for Federal Income Tax purposes. For all other purposes of the system, such contributions shall be considered to be Tier 1 member contributions.
(2) Tier 2 member contributions amount. Each Tier 2 member hired on or after July 16, 2009 shall be required to make regular contributions to the Fund in the amount of 9.5% of his or her compensation, effective the first full pay period on or after March 20, 2019. Tier 2 member contributions picked up by the city on behalf of the Tier 2 member shall be deposited with the Board immediately after each pay period and shall be designated as employer contributions pursuant to section 414(h) of the Internal Revenue Code. Such designation is contingent upon the contributions being excluded from the Tier 2 member's gross income for federal income tax purposes. For all other purposes, such contributions shall be considered to be Tier 2 member contributions.
(3) Method. Such contributions shall be made by payroll deduction.
(B) State contributions. Any monies received or receivable by reason of laws of the State of Florida, for the express purpose of funding and paying for retirement benefits for Firefighters of the city shall be deposited in the Fund comprising part of this system immediately and under no circumstances more than five days after receipt by the city.
(C) City contributions. So long as this system is in effect, the city shall make quarterly contributions to the Fund in an amount equal to the difference in each year, between the total aggregate member contributions for the year, plus state contributions for such year, and the total cost for the year, as shown by the most recent actuarial valuation of the system. The total cost for any year shall be defined as the total normal cost plus the additional amount sufficient to amortize the unfunded past service liability as provided in F.S. Ch. 112, Part VII.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2011-26, passed 9-7- 11; Am. Ord. O-2019-08, passed 3-20-19)
(A) Normal retirement date. A member's normal retirement date shall be the first day of the month following the attainment of age 50 and the completion of ten years of credited service or upon the completion of 23 years of credited service, regardless of age. A member may retire on his or her normal retirement date or on the first day of any month thereafter, and each member shall become 100% vested in his or her accrued benefit upon completion of ten years of credited service. Normal retirement under the system is retirement from employment with the city on or after the normal retirement date.
(B) Normal retirement benefit.
(1) A member (including a DROP participant) retiring on or after his or her normal retirement date shall receive a monthly benefit which shall commence on the first day of the month coincident with or next following his or her retirement and be continued during such member's lifetime, with 120 payments guaranteed in any event. If such member dies after retirement and has been married continuously for at least two years prior to his or her death, payment of one-half of the benefit payment at the time of his or her death shall continue to his or her surviving spouse to the earlier of such spouse's death or remarriage.
(2) The monthly retirement benefit for a Tier 1 member shall equal 3.3% of average final compensation for each year of credited service, up to a maximum benefit of 86%.
(3) The monthly retirement benefit for a Tier 2 member shall equal 3.2% of average final compensation for each year of credited service up to a maximum benefit of 80%.
(4) In any event, each member's benefit shall equal at least 2.75% of average final compensation for each year of credited service averaged over the entire period of credited service of the member.
(C) Cost of living adjustments for retirees.
(1) The pension benefit payable to all normal service retirees who were Tier 1 members and their surviving spouses (until such time as the spouse’s death or remarriage) shall be increased beginning at the later of:
(a) Three years after the retiree's benefits commence; or
(b) One year after completion of DROP participation and each year thereafter, by an amount equal to 2%.
(2) The pension benefit payable to all normal service retirees who are Tier 2 members and their surviving spouses (until such time as the spouse’s death or remarriage) shall be increased by an amount equal to 2.5% two years after retirement and every two years thereafter.
(Ord. O-2010-30, passed 7-2-10; Am. Ord. O-2011-26, 9-7-11; Am. Ord. O-2013-14, passed 7-3-13; Am. Ord. O-2015-09, passed 6-3-15; Am. Ord. O-2019-08, passed 3-20-19)
(A) Benefits for death in line of duty.
(1) Ten or more years of credited service. If any member having at least ten years of credited service shall lose his or her life prior to retirement as a direct result of the performance of his or her duties, his or her surviving spouse shall have the option of receiving, for life, either a monthly benefit equal to 50% of the member's compensation at the time of his or her death or the benefits otherwise payable to the member at the member's normal retirement date. If any member having at least ten years of credited service shall lose his or her life prior to retirement as a direct result of the performance of his or her duties and there is no surviving spouse, his or her beneficiary shall have the option of receiving, until death, either a monthly benefit equal to 50% of the member's compensation at the time of his or her death or the benefits otherwise payable to the member at the member's normal retirement date.
(2) Less than ten years of credited service. If any member having less than ten years of credited service shall lose his or her life prior to retirement as a direct result of the performance of his or her duties, his or her surviving spouse shall receive, for life, a monthly benefit equal to 50% of the member's compensation at the time of his or her death. If any member having less than ten years of credited service shall lose his or her life prior to retirement as a direct result of the performance of his or her duties and there is no surviving spouse, his or her beneficiary shall receive, until death, a monthly benefit equal to 50% of the member's compensation at the time of his or her death.
(B) Benefits for death not in line of duty. If any member with five or more years of credited service, prior to retirement, shall die from a condition that was not directly caused by the performance of his or her duties, his or her surviving spouse shall receive, until the earlier of the death or remarriage of such surviving spouse, a monthly benefit equal to 25% of the member's compensation at the time of his or her death.
(C) Minimum benefit. Notwithstanding anything contained in divisions (A) and (B) above to the contrary, if a member dies before being eligible for retirement or if payments provided for in divisions (A) and (B) above cease prior to the time when the surviving spouse or beneficiary has received an amount equal to the member's accumulated contributions, the member's beneficiary shall receive the accumulated contributions or the balance thereof. In no event shall the benefits provided in this section be less than the member's vested accrued benefit payable at the member's normal retirement date.
(Ord. O-2010-30, passed 7-21-10)
(A) Disability benefits in line of duty. Any member who shall become totally and permanently disabled to the extent that he or she is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a Firefighter, which disability was directly caused by the performance of his or her duty as a Firefighter, shall, upon establishing the same to the satisfaction of the Board, be entitled to a monthly pension equal to 75% of his or her compensation at the time of determination of disability. Terminated persons, either vested or non-vested, are not eligible for disability benefits, except that those terminated by the city for medical reasons may apply for a disability within 30 days after termination.
(B) In line of duty presumptions.
(1) Presumption. Any condition or impairment of health of a member caused by hypertension or heart disease shall be presumed to have been suffered in the line of duty unless the contrary is shown by competent evidence, provided that such member shall have successfully passed a physical examination upon entering into such service, which examination failed to reveal any evidence of such condition; and provided further, that such presumption shall not apply to benefits payable or granted in a policy of life insurance or disability insurance.
(2) Additional presumption. The presumption provided for in this division (B)(2) shall apply only to those conditions described in this division (B)(2) that are diagnosed on or after January 1, 1996.
(a) Definitions. As used in this division (B)(2), the following definitions apply:
BODY FLUIDS. Blood and body fluids containing visible blood and other body fluids to which universal precautions for prevention of occupational transmission of blood-borne pathogens, as established by the Centers for Disease Control, apply. For purposes of potential transmission of meningococcal meningitis or tuberculosis, the term BODY FLUIDS includes respiratory, salivary, and sinus fluids, including droplets, sputum, and saliva, mucous, and other fluids through which infectious airborne organisms can be transmitted between persons.
EMERGENCY RESCUE OR PUBLIC SAFETY MEMBER. Any member employed full time by the city as a Firefighter, paramedic, or emergency medical technician who, in the course of employment, runs a high risk of occupational exposure to hepatitis, meningococcal meningitis, or tuberculosis and who is not employed elsewhere in a similar capacity.
HEPATITIS. Hepatitis A, hepatitis B, hepatitis non-A, hepatitis non-B, hepatitis C, or any other strain of hepatitis generally recognized by the medical community.
HIGH RISK OF OCCUPATIONAL EXPOSURE. That risk that is incurred because a person subject to the provisions of this division, in performing the basic duties associated with his or her employment:
a. Provides emergency medical treatment in a nonhealth-care setting where there is a potential for transfer of body fluids between persons; or
b. At the site of an accident, fire, or other rescue or public safety operation, or in an emergency rescue or public safety vehicle, handles body fluids in or out of containers or works with or otherwise handles needles or other sharp instruments exposed to body fluids;
OCCUPATIONAL EXPOSURE. In the case of hepatitis, meningococcal meningitis, or tuberculosis, means an exposure that occurs during the performance of job duties that may place a worker at risk of infection.
(b) Presumption. Any emergency rescue or public safety member who suffers a condition or impairment of health that is caused by hepatitis, meningococcal meningitis, or tuberculosis, that requires medical treatment, and that results in total or partial disability or death shall be presumed to have a disability suffered in the line of duty, unless the contrary is shown by competent evidence; however, in order to be entitled to the presumption, the emergency rescue of public safety member must, by written affidavit as provided in F.S. § 92.50, verify by written declaration that, to the best of his or her knowledge and belief:
1. In the case of a medical condition caused by or derived from hepatitis, he or she has not:
a. Been exposed, through transfer of bodily fluids, to any person known to have sickness or medical conditions derived from hepatitis, outside the scope of his or her employment;
b. Had a transfusion of blood or blood components, other than a transfusion arising out of an accident or injury happening in connection with his or her present employment, or received any blood products for the treatment of a coagulation disorder since last undergoing medical tests for hepatitis, which tests failed to indicate the presence of hepatitis;
c. Engaged in unsafe sexual practices or other high risk behavior, as identified by the Centers for Disease Control or the Surgeon General of the United States, or had sexual relations with a person known to him or her to have engaged in such unsafe sexual practices or other high risk behavior; or
d. Used intravenous drugs not prescribed by a physician.
2. In the case of meningococcal meningitis, in the ten days immediately preceding diagnosis he or she was not exposed, outside the scope of his or her employment, to any person known to have meningococcal meningitis or known to be an asymptomatic carrier of the disease.
3. In the case of tuberculosis, in the period of time since the member's last negative tuberculosis skin test, he or she has not been exposed, outside the scope of his or her employment, to any person known by him or her to have tuberculosis.
(c) Immunization. Whenever any standard, medically recognized vaccine or other form of immunization or prophylaxis exists for the prevention of a communicable disease for which a presumption is granted under this section, if medically indicated in the given circumstances pursuant to immunization policies established by the Advisory Committee on Immunization Practices of the U.S. Public Health Service, an emergency rescue or public safety member may be required by the city to undergo the immunization or prophylaxis unless the member's physician determines in writing that the immunization or other prophylaxis would pose a significant risk to the member's health. Absent such written declaration, failure or refusal by an emergency rescue or public safety member to undergo such immunization or prophylaxis disqualifies the member from the benefits of the presumption.
(d) Record of exposures. The city shall maintain a record of any known or reasonably suspected exposure of an emergency rescue or public safety member in its employ to the diseases described in this section and shall immediately notify the member of such exposure. An emergency rescue or public safety member shall file an incident or accident report with the city of each instance of known or suspected occupational exposure to hepatitis infection, meningococcal meningitis, or tuberculosis.
(e) Required medical tests; pre- employment physical. In order to be entitled to the presumption provided by this section:
1. An emergency rescue or public safety member must, prior to diagnosis, have undergone standard, medically acceptable tests for evidence of the communicable disease for which the presumption is sought, or evidence of medical conditions derived therefrom, which tests fail to indicate the presence of infection. This division does not apply in the case of meningococcal meningitis.
2. On or after June 15, 1995, an emergency rescue or public safety member may be required to undergo a pre-employment physical examination that tests for and fails to reveal any evidence of hepatitis or tuberculosis.
(C) Disability benefits not in line of duty. Any member with five years or more credited service who shall become totally and permanently disabled to the extent that he or she is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a Firefighter, which disability is not directly caused by the performance of his or her duties as a Firefighter shall, upon establishing the same to the satisfaction of the Board, be entitled to a monthly pension equal to 25% of his or her compensation at the time of final determination of disability. Commencing with normal retirement date, the benefit shall be equal to 75% of his or her compensation at the time of final determination of disability. Terminated persons, either vested or non-vested, are not eligible for disability benefits, except that those terminated by the city for medical reasons may apply for a disability within 30 days after termination.
(D) Conditions disqualifying disability benefits. Each member who is claiming disability benefits shall establish, to the satisfaction of the Board, that such disability was not occasioned primarily by:
(1) Excessive or habitual use of any drugs, intoxicants or narcotics;
(2) Injury or disease sustained while willfully and illegally participating in fights, riots or civil insurrections or while committing a crime;
(3) Injury or disease sustained while serving in any branch of the Armed Forces; or
(4) Injury or disease sustained by the member after his or her employment as a Firefighter with the City of Hollywood shall have terminated.
(E) Physical examination requirement.
(1) A member shall not become eligible for disability benefits until and unless he or she undergoes a physical examination by one or more qualified physicians, surgeons, and/or psychologists who shall be selected by the Board for that purpose. The Board shall not select the member's treating physician or surgeon for this purpose except in an unusual case where the Board determines that it would be reasonable and prudent to do so.
(2) Any retiree receiving disability benefits under provisions of this subchapter may be required by the Board to submit sworn statements of his or her condition accompanied by a physician's statement to the Board annually and may be required by the Board to undergo additional periodic re-examinations by a qualified physician or physicians and/or surgeon or surgeons who shall be selected by the Board, to determine if such disability has ceased to exist. If the Board finds that the retiree is no longer permanently and totally disabled to the extent that he or she is unable to render useful and efficient service as a Firefighter, the Board shall recommend to the city that the retiree be returned to performance of duty as a Firefighter, and the retiree so returned shall enjoy the same rights that he or she had at the time he or she was placed upon pension. In the event the retiree so ordered to return shall refuse to comply with the order within 30 days from the issuance thereof, he or she shall forfeit the right to his or her pension.
(3) If the retiree recovers from disability and reenters the service of the city as a Firefighter, his or her service will be deemed to have been continuous, and the period beginning with the first month for which he or she received a disability retirement income payment and ending with the date he or she reentered the service of the city will be considered as credited service for the purposes of the system.
(4) The Board shall have the power and authority to make the final decisions regarding all disability claims.
(F) Disability payments. The monthly benefit to which a member is entitled in the event of the member's disability retirement shall be payable on the first day of the first month after the Board determines the member became disabled. However, the monthly retirement income shall be payable as of the date the Board determined such entitlement, and any portion due for a partial month shall be paid together with the first payment. The last payment will be:
(1) If the retiree recovers from the disability prior to his or her normal retirement date, the payment due next preceding the date of such recovery; or
(2) If the retiree dies without recovering from the disability or attains his or her normal retirement date while still disabled, the payment due next preceding his or her death or the 120th monthly payment, whichever is later.
(3) Provided, however, the disability retiree may select, at any time prior to the date on which benefit payments begin, an optional form of benefit payment as described in § 33.044(A)(2), which shall be the actuarial equivalent of the normal form of benefit.
(G) Worker's compensation. Any amounts which may be paid or payable under the provisions of any workers' compensation, pension or similar law, either to a Firefighter or to the dependents of a Firefighter on account of any disability, shall be offset against and payable in lieu of any benefits payable under the provisions hereof on account of the same disability to the extent permitted by law, and only such reduced benefits shall be payable hereunder.
(H) Modified duty or light duty positions as an alternative to a disability pension benefit. In the event the Board finds that a member is totally and permanently disabled by reason of a medically determinable physical or mental impairment, as defined in division (A) or (C) above, which renders him or her incapable of performing all the regular duties of a Firefighter, the city may, based upon availability of a vacancy, assign the member to a modified duty or light duty position. A "modified duty" or "light duty" position, as used in this division, is defined as any position within the Department of Fire-Rescue and Beach Safety which does not require the member to perform all the duties of a Firefighter. If the city makes available a modified duty or light duty position, and a member rejects the assignment, said member shall be ineligible for either continued employment or disability retirement benefits.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2016-07, passed 5-18-16)
If a member terminates his or her employment as a Firefighter, either voluntarily or by discharge, and is not eligible for any other benefits under this system, the member shall be entitled to the following:
(A) If the member has less than ten years credited service upon termination, the member shall be entitled to a refund of his or her accumulated contributions or the member may leave them deposited with the Fund.
(B) If the member has ten or more years of credited service upon termination, the member shall be entitled to a monthly retirement benefit, determined in the same manner as for normal retirement and based upon the member's credited service, average final compensation and the benefit accrual rate as of the date of termination, payable to him or her commencing at the member's otherwise normal retirement date, determined based upon his or her actual years of credited service, provided he or she does not elect to withdraw his or her accumulated contributions and provided the member survives to his or her otherwise normal retirement date. If the member does not withdraw his or her accumulated contributions and does not survive to his or her otherwise normal retirement date, his or her designated beneficiary shall be entitled to a benefit as provided herein for a deceased member, vested or eligible for retirement under pre-retirement death.
(Ord. O-2010-30, passed 7-21-10)
(A) In lieu of the amount and form of retirement income payable in the event of normal retirement as specified herein, a member, upon written request to the Board, may elect to receive a retirement income or benefit of equivalent actuarial value payable in accordance with one of the following options:
(1) A retirement income of a monthly amount payable to the member for his or her lifetime only.
(2) A retirement income of a modified monthly amount, payable to the member during the lifetime of the member and following the death of the member, 100%, 75%, 66 2/3% or 50% of such monthly amount payable to a joint pensioner for his or her lifetime. The present value of payments to the member shall not be less than 50% of the total present value of payments to the member and his or her joint pensioner.
(3) If a member retires prior to the time at which social security benefits are payable, he or she may elect to receive an increased retirement benefit until such time as social security benefits shall be assumed to commence and a reduced benefit thereafter in order to provide, to as great an extent as possible, a more level retirement allowance during the entire period of retirement. The amounts payable shall be as recommended by the actuaries for the system, based upon the social security law in effect at the time of the member's retirement.
(B) The member, upon electing any option of this section, will designate the joint pensioner (division (A)(2) above) or beneficiary (or beneficiaries) to receive the benefit, if any, payable under the system in the event of the member's death, and will have the power to change such designation from time to time, but any such change shall be deemed a new election and will be subject to approval by the Board. Such designation will name a joint pensioner or one or more primary beneficiaries where applicable. A member may change his or her beneficiary at any time. If a member has elected an option with a joint pensioner and the member's retirement income benefits have commenced, the member may thereafter change his or her designated beneficiary at any time but may only change his or her joint pensioner twice. Subject to the restriction in the previous sentence, a member may substitute a new joint pensioner for a deceased joint pensioner.
(C) The consent of a member's joint pensioner or beneficiary to any such change shall not be required. The rights of all previously-designated beneficiaries to receive benefits under the system shall thereupon cease.
(D) Upon change of a member's joint pensioner in accordance with this section, the amount of the retirement income payable to the member shall be actuarially redetermined to take into account the age of the former joint pensioner, the new joint pensioner and the member and to ensure that the benefit paid is the actuarial equivalent of the present value of the member's then-current benefit at the time of the change. Each request for a change will be made in writing on a form prepared by the Board and on completion will be filed with the Board. In the event that no designated beneficiary survives the retiree, such benefits as are payable in the event of the death of the member subsequent to his or her retirement shall be paid as provided in § 33.045.
(E) Retirement income payments shall be made under the option elected in accordance with the provisions of this section and shall be subject to the following limitations:
(1) If a member dies prior to his or her normal retirement date, no retirement benefit will be payable under the option to any person, but the benefits, if any, will be determined under § 33.041.
(2) If the designated beneficiary (or beneficiaries) or joint pensioner dies before the member's retirement under the system, the option elected will be canceled automatically and a retirement income of the normal form and amount will be payable to the member upon his or her retirement as if the election had not been made, unless a new election is made in accordance with the provisions of this section or a new beneficiary is designated by the member prior to retirement and within 90 days after the death of the beneficiary.
(3) If both the member and the beneficiary (or beneficiaries) designated by the member die before the full payment has been effected under any option providing for payments for a period certain and life thereafter, made pursuant to the provisions of division (A) above, the Board may, in its discretion, direct that the commuted value of the remaining payments be paid in a lump sum and in accordance with § 33.045.
(4) If a member continues beyond his or her normal retirement date pursuant to the provisions of § 33.040(A), and dies prior to his or her actual retirement and while an option made pursuant to the provisions of this section is in effect, monthly retirement income payments will be made, or a retirement benefit will be paid, under the option to a beneficiary (or beneficiaries) designated by the member in the amount or amounts computed as if the member had retired under the option on the date on which his or her death occurred, except if § 33.041 is applicable and provides a greater benefit.
(F) A member may not change his or her retirement option after the date of cashing or depositing his or her first retirement check.
(G) Notwithstanding anything herein to the contrary, the Board, in its discretion, may elect to make a lump sum payment to a member or a member's beneficiary in the event that the monthly benefit amount is less than $100 or the total commuted value of the remaining monthly income payments to be paid do not exceed $5,000, as of the date of retirement or termination of service, whichever is applicable. Any such payment made to any person pursuant to the power and discretion conferred upon the Board by the preceding sentence shall operate as a complete discharge of all obligations under the system with regard to such member and shall not be subject to review by anyone, but shall be final, binding and conclusive on all persons.
(Ord. O-2010-30, passed 7-21-2010)
(A) Each member or retiree may, on a form provided for that purpose, signed and filed with the Board, designate a beneficiary (or beneficiaries) to receive the benefit, if any, which may be payable in the event of his or her death. Each designation may be revoked or changed by such member or retiree by signing and filing with the Board a new designation-of-beneficiary form. Upon such change, the rights of all previously designated beneficiaries to receive any benefits under the system shall cease.
(B) If a deceased member or retiree failed to name a beneficiary in the manner prescribed in division (A) above, or if the beneficiary (or beneficiaries) named by a deceased member or retiree predeceases the member or retiree, the death benefit, if any, which may be payable under the system with respect to such deceased member or retiree, shall be paid to the estate of the member or retiree and the Board, in its discretion, may direct that the commuted value of the remaining monthly income benefits be paid in a lump sum.
(C) Any payment made to any person pursuant to this section shall operate as a complete discharge of all obligations under the system with regard to the deceased member and any other persons with rights under the system and shall not be subject to review by anyone but shall be final, binding and conclusive on all persons ever interested hereunder.
(Ord. O-2010-30, passed 7-21-10)
(A) The Board shall establish administrative claims procedures to be utilized in processing written requests ("claims"), on matters which affect the substantial rights of any person ("claimant"), including members, retirees, beneficiaries, or any person affected by a decision of the Board.
(B) The Board shall have the power to subpoena and require the attendance of witnesses and the production of documents for discovery prior to and at any proceedings provided for in the Board's claims procedures. The claimant may request in writing the issuance of subpoenas by the Board. A reasonable fee may be charged for the issuance of any subpoenas not to exceed the fees set forth in Florida Statutes.
(Ord. O-2010-30, passed 7-21-10)
The Secretary of the Board shall keep a record of all persons enjoying a pension under the provisions of this subchapter in which it shall be noted the time when the pension is allowed and when the same shall cease to be paid. Additionally, the Secretary shall keep a record of all members in such a manner as to show the name, address, date of employment and date of termination of employment.
(Ord. O-2010-30, passed 7-21-10)
(A) Basic limitation.
(1) Subject to the adjustments hereinafter set forth, the maximum amount of annual retirement income payable with respect to a member under this system shall not exceed $160,000.
(2) For purposes of applying the above 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 section, 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 Internal Revenue Code and Regulations thereunder to be taken into account for purposes of the limitation of section 415(b)(1) of the Internal Revenue Code.
(B) Participation in other defined benefit plans. The limitation of this section with respect to any member who at any time has been a member in any other defined benefit plan (as defined in section 414(j) of the Internal Revenue Code) maintained by the city shall apply as if the total benefits payable under all defined benefit plans in which the member has been a member were payable from one plan.
(C) Adjustments in limitations.
(1) In the event the member's retirement benefits become payable before age 62, the $160,000 limitation prescribed by this section shall be reduced in accordance with Regulations issued by the Secretary of the Treasury pursuant to the provisions of section 415(b) of the Internal Revenue Code, so that such limitation (as so reduced) equals an annual benefit (beginning when such retirement income benefit begins) which is equivalent to a $160,000 annual benefit beginning at age 62.
(2) In the event the member's benefit is based on at least 15 years of credited service, the adjustments provided for in division (C)(1) above shall not apply.
(4) In the event the member's retirement benefit becomes payable after age 65, for purposes of determining whether this benefit meets the limitation set forth in division (A) herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age 65. This adjustment shall be made in accordance with Regulations promulgated by the Secretary of the Treasury or his or her delegate.
(D) Less than ten years of service. The maximum retirement benefits payable under this section to any member who has completed less than ten years of credited service with the city shall be the amount determined under division (A) above multiplied by a fraction, the numerator of which is the number of the member's years of credited service and the denominator of which is ten. The reduction provided for in this division shall not be applicable to disability benefits paid pursuant to § 33.042, or pre-retirement death benefits paid pursuant to § 33.041.
(E) Ten thousand dollar limit. Notwithstanding the foregoing, the retirement benefit payable with respect to a member shall be deemed not to exceed the limitations set forth in this section if the benefits payable, with respect to such member under this system and under all other qualified defined benefit pension plans to which the city contributes, do not exceed $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 contribution plan in which the member participated.
(F) Reduction of benefits. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the member's benefit under any defined benefit plans in which the member participated, such reduction to be made first with respect to the plan in which the member most recently accrued benefits and thereafter in such priority as shall be determined by the Board and the plan administrator of such other plans, and next, by reducing or allocating excess forfeitures for defined contribution plans in which the member participated; provided, however, that necessary reductions may be made in a different manner and priority pursuant to the agreement of the Board and the plan administrator of all other plans covering such member.
(G) Cost-of-living adjustments. The limitations as stated in divisions (A), (B) and (C) above shall be adjusted to the time payment of a benefit begins in accordance with any cost-of-living adjustments prescribed by the Secretary of the Treasury pursuant to section 415(d) of the Internal Revenue Code.
(H) Additional limitation on pension benefits. Notwithstanding anything herein to the contrary:
(1) The normal retirement benefit or pension payable to a retiree who becomes a member of the system and who has not previously participated in the system, on or after January 1, 1980, shall not exceed 100% of his or her average final compensation. However, nothing contained in this section shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-living increases or adjustments.
(2) No member of the system 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 member is already receiving, or will receive in the future, a retirement benefit or pension from a different employer's retirement system or plan. This restriction does not apply to social security benefits or federal benefits under Chapter 67, Title 10, U.S. Code.
(Ord. O-2010-30, passed 7-21-10)
(A) Notwithstanding any other provision of this system to the contrary, a form of retirement income payable from this system after the effective date of this subchapter, shall satisfy the following conditions.
(B) (1) If the retirement income is payable before the member's death:
(a) It shall either be distributed or commence to the member not later than April 1 of the calendar year following the later of the calendar year in which the member attains age 70½, or the calendar year in which member retires;
(b) The distribution shall be paid;
1. Over the life of the member or over the lifetimes of the member and spouse, issue or dependent, or
2. Over the period extending not beyond the life expectancy of the member and spouse, issue or dependent.
(2) Where a form of retirement income payment has commenced in accordance with the preceding divisions and the member dies before his or her entire interest in the system has been distributed, the remaining portion of such interest in the system shall be distributed no less rapidly than under the form of distribution in effect at the time of the member's death.
(C) If the member's death occurs before the distribution of his or her interest in the system has commenced, the member's entire interest in the system shall be distributed within five years of the member's death, unless it is to be distributed in accordance with the following rules:
(1) The member's remaining interest in the system is payable to his or her spouse, issue or dependent;
(2) The remaining interest is to be distributed over the life of the spouse, issue or dependent or over a period not extending beyond the life expectancy of the spouse, issue or dependent; and
(3) Such distribution begins within one year of the member's death unless the member's spouse shall receive the remaining interest in which case the distribution need not begin before the date on which the member would have attained age 70½ and if the spouse dies before the distribution to the spouse begins, this section shall be applied as if the spouse were the member.
(Ord. O-2010-30, passed 70-21-10)
(A) Interest of members in system. At no time prior to the satisfaction of all liabilities under the system with respect to retirees and members and their spouses or beneficiaries, shall any part of the corpus or income of the Fund be used for or diverted to any purpose other than for their exclusive benefit.
(B) Qualification of system. It is intended that the system will constitute a qualified public pension plan under the applicable provisions of the Internal Revenue Code, as now in effect or hereafter amended. Any modification or amendment of the system may be made retroactively, if necessary or appropriate, to qualify or maintain the system as a plan meeting the requirements of the applicable provisions of the Internal Revenue Code as now in effect or hereafter amended, or any other applicable provisions of the U.S. federal tax laws, as now in effect or hereafter amended or adopted, and the regulations issued thereunder.
(C) Use of forfeitures. Forfeitures arising from terminations of service of members shall serve only to reduce future city contributions.
(D) Compliance with F.S. Ch. 175. It is intended that the system will continue to participate in the distribution of the tax fund established pursuant to F.S. § 175.101.
(Ord. O-2010-30, passed 7-21-10)
(A) This subchapter establishing the system and Fund, and subsequent ordinances pertaining to said system and Fund, may be modified, terminated, or amended, in whole or in part; provided that if this or any subsequent ordinance shall be amended or repealed in its application to any person benefiting hereunder, the amount of benefits which at the time of any such alteration, amendment, or repeal shall have accrued to the member or beneficiary shall not be affected thereby, except to the extent that the assets of the Fund may be determined to be inadequate.
(B) If this subchapter shall be repealed, or if contributions to the system are discontinued or if there is a transfer, merger or consolidation of government units, services or functions as provided in F.S. Ch. 121, the Board shall continue to administer the system in accordance with the provisions of this subchapter, for the sole benefit of the then members, any beneficiaries then receiving retirement allowances, and any future persons entitled to receive benefits under one of the options provided for in this ordinance who are designated by any of said members. In the event of repeal, discontinuance of contributions, or transfer, merger or consolidation of government units, services or functions, there shall be full vesting 100% of benefits accrued to date of repeal and the assets of the system shall be allocated in an equitable manner to provide benefits on a proportionate basis to the persons so entitled in accordance with the provisions thereof.
(C) (1) The following shall be the order of priority for purposes of allocating the assets of the system as of the date of repeal of this subchapter, or if contributions to the system are discontinued, with the date of such discontinuation being determined by the Board.
(a) Apportionment shall first be made in respect of each retiree receiving a retirement or disability benefit hereunder on such date, each person receiving a benefit on such date on account of a retired or disabled (but since deceased) member, and each member who has, by such date, become eligible for normal retirement but has not yet retired, an amount which is the actuarial equivalent of such benefit, provided that, if such asset value be less than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such asset value.
(b) If there be any asset value remaining after the apportionment under division (C)(1)(a) above, apportionment shall next be made in respect of each member in the service of the city on such date who is vested and who is not entitled to an apportionment under division (C)(1)(a) above, in the amount required to provide the actuarial equivalent of the vested portion of the accrued normal retirement benefit (but not less than accumulated contributions), based on the credited service and average final compensation as of such date, and each vested former member then entitled to a deferred benefit who has not, by such date, begun receiving benefit payments, in the amount required to provide said actuarial equivalent of the vested portion of the accrued normal retirement benefit (but not less than accumulated contributions), provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value.
(c) If there be any asset value after the apportionments under divisions (C)(1)(a) and (b) above, apportionment shall be made in respect of each member in the service of the city on such date who is not entitled to an apportionment under divisions (C)(1)(a) and (b) above in the amount equal to member's accumulated contributions, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder such latter amount shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value.
(d) If there be any asset value remaining after the apportionments under divisions (C)(1)(a) through (c) above, apportionment shall lastly be made in respect of each member included in division (C)(1)(c) above to the extent of the actuarial equivalent of the non-vested accrued normal retirement benefit, less the amount apportioned in division (C)(1)(c) above, based on the credited service and average final compensation as of such date, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such amounts shall be reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value.
(e) In the event that there be asset value remaining after the full apportionment specified in divisions (C)(1)(a) through (d) above, such excess shall be returned to the city, less return of the state's contributions to the state, provided that, if the excess is less than the total contributions made by the city and the state to the date of termination such excess shall be divided proportionately to the total contributions made by the city and the state.
(2) The allocation of the Fund provided for in this division may, as decided by the Board, be carried out through the purchase of insurance company contracts to provide the benefits determined in accordance with this division. The Fund may be distributed in one sum to the persons entitled to said benefits or the distribution may be carried out in such other equitable manner as the Board may direct. The Fund may be continued in existence for purposes of subsequent distributions.
(3) (a) If, at any time during the first ten years after the effective date of the ordinance originally establishing this system, the system shall be terminated or the full current costs of the system shall not have been met, anything in the system to the contrary notwithstanding, city contributions which may be used for the benefit of any one of the 25 highest paid members on the effective date, whose anticipated annual retirement allowance provided by the city's contributions at member's normal retirement date would exceed $1,500, shall not exceed the greater of either:
1. Twenty thousand dollars, or
2. An amount computed by multiplying the smaller of $10,000 or 20% of such member's average annual earnings during his or her last five years of service by the number of years of service since the effective date.
(b) In the event that it shall hereafter be determined by statute, court decision, ruling by the Commissioner of Internal Revenue, or otherwise, that the provisions of this division are not then necessary to qualify the system under the Internal Revenue Code, this division shall be ineffective without the necessity of further amendment of this subchapter.
(D) After all the vested and accrued benefits provided hereunder have been paid and after all other liabilities have been satisfied, then and only then shall any remaining funds revert to the general fund of the city.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2019-08, passed 3-20-19)
Except as otherwise provided by law, the pensions, annuities, and any other benefits accrued or accruing to any person under the provisions of this subchapter and the accumulated contributions and the cash securities in the Fund created under this subchapter are hereby exempted from any state, county or municipal tax and shall not be subject to execution, attachment, garnishment or any legal process whatsoever and shall be unassignable.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2019-08, passed 3-20-19)
The Board shall have the power to examine into the facts upon which any pension shall heretofore have been granted under any prior or existing law, or shall hereafter be granted or obtained erroneously, fraudulently or illegally for any reason. The Board is empowered to purge the pension rolls or correct the pension amount of any person heretofore granted a pension under prior or existing law or any person hereafter granted a pension under this subchapter if the same is found to be erroneous, fraudulent or illegal for any reason; and to reclassify any person who has heretofore under any prior or existing law been or who shall hereafter under this subchapter be erroneously, improperly or illegally classified. Any overpayments or underpayments shall be corrected and paid or repaid in a reasonable manner determined by the Board.
(Ord. O-2010-30, passed 7-21-10)
(A) Any member who is convicted of the following specified offenses committed prior to retirement, or whose employment is terminated by reason of his or her admitted commission, aid or abetment of the following specified offenses, shall forfeit all rights and benefits under this system, except for the return of his or her accumulated contributions as of the date of termination. Specified offenses are as follows:
(1) The committing, aiding or abetting of an embezzlement of public funds;
(2) The committing, aiding or abetting of any theft by a public officer or employee from his or her employer;
(3) Bribery in connection with the employment of a public officer or employee;
(4) Any felony specified in F.S. Ch. 838, except §§ 838.15 and 838.16;
(5) The committing of an impeachable offense;
(6) The committing of any felony by a public officer or employee who, willfully and with intent to defraud the public or the public agency for which he or she acts or in which he or she is employed of the right to receive the faithful performance of his or her duty as a public officer or employee, realizes or obtains, or attempts to realize or obtain, a profit, gain, or advantage for himself or herself or for some other person through the use or attempted use of the power, rights, privileges, duties, or position of his or her public office or employment position.
(B) CONVICTION shall be defined as an adjudication of guilt by a court; a plea of guilty or of nolo contendere; a jury verdict of guilty when adjudication of guilt is withheld and the accused is placed on probation; or a conviction by the Senate of an impeachable offense.
(C) COURT shall be defined as any state or federal court of competent jurisdiction which is exercising its jurisdiction to consider a proceeding involving the alleged commission of a specified offense.
(D) Whenever the Board has reason to believe that the rights and privileges of a member under the system are required to be forfeited, the Board shall give notice and hold a hearing in accordance with F.S. Ch. 120 for the purpose of determining whether such rights and privileges are required to be forfeited.
(E) Any member who has received benefits from the system in excess of his or her accumulated contributions shall be required to pay back to the Fund the amount of the benefits received in excess of his or her accumulated contributions. The Board may implement all legal action necessary to recover such funds.
(Ord. 2010-30, passed 7-21-10)
Upon conviction for a violation described in F.S. § 175.195, a member or beneficiary of the system may, in the discretion of the Board, be required to forfeit the right to receive any or all benefits to which the person would otherwise be entitled under the system. For purposes of this section, conviction means a determination of guilt that is the result of a plea or trial, regardless of whether adjudication is withheld.
(Ord. O-2010-30, passed 7-21-10)
(A) Rollover distributions.
(1) General. This section applies to distributions made on or after January 1, 2002. Notwithstanding any provision of the system 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 Board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(2) Definitions.
ELIGIBLE ROLLOVER DISTRIBUTION. An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of a distributee, except that an eligible rollover distribution does not include: 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 ten years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Internal Revenue Code and the portion of any distribution that is not includible in gross income. Any portion of any distribution which would be includible in gross income will be an eligible rollover distribution if the distribution is made to an individual retirement account described in section 408(a) of the Internal Revenue Code, to an individual retirement annuity described in section 408(b) of the Internal Revenue Code or to a qualified defined contribution plan described in section 401(a) or 403(a) of the Internal Revenue 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.
ELIGIBLE RETIREMENT PLAN. An eligible retirement plan is an individual retirement account described in section 408(a) of the Internal Revenue Code, an individual retirement annuity described in section 408(b) of the Internal Revenue Code, an annuity plan described in section 403(a) of the Internal Revenue Code, an eligible deferred compensation plan described in section 457(b) of
the Internal Revenue Code which is maintained by an eligible employer described in section 457(e)(1)(A) of the Internal Revenue Code and which agrees to separately account for amounts transferred into such plan from this plan, an annuity contract described in section 403(b) of the Internal Revenue Code, or a qualified trust described in section 401(a) of the Internal Revenue Code, that accepts a distributee's eligible rollover distribution. This definition shall apply in the case of an eligible rollover distribution to the surviving spouse.
DISTRIBUTEE. A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse is a distributee with regard to the interest of the spouse.
DIRECT ROLLOVER. A direct rollover is a payment by the plan to the eligible retirement plan specified by a distributee.
(B) Rollovers or transfers into the Fund. On or after January 1, 2002, the system will accept, solely for the purpose of purchasing credited service as provided herein, permissible member requested transfers of funds from other retirement or pension plans, member rollover cash contributions and/or direct cash rollovers of distributions made on or after January 1, 2002, as follows:
(1) Transfers and direct rollovers or member rollover contributions from other plans. The system will accept either a direct rollover of an eligible rollover distribution or a member contribution of an eligible rollover distribution from a qualified plan described in section 401(a) or 403(a) of the Internal Revenue Code, from an annuity contract described in section 403(b) of the Internal Revenue Code or from an eligible plan under section 457(b) of the Internal Revenue Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state. The system will also accept legally permissible member requested transfers of funds from other retirement or pension plans.
(2) Member rollover contributions from IRAs. The system will accept a member rollover contribution of the portion of a distribution from an individual retirement account or annuity described in section 408(a) or 408(b) of the Internal Revenue Code that is eligible to be rolled over and would otherwise be includible in gross income.
(Ord. O-2010-30, passed 7-21-10)
The assets of the Firefighter's Relief and Pension Fund, established by ordinance dated November 13, 1939, in accordance with F.S. Ch. 175, and of the Supplemental Hollywood Firefighter's Pension Fund, established by Chapter 30-838, Laws of Florida, 1955, and Chapter 59-1373, Laws of Florida, shall be merged on the effective date of their act into the Hollywood Firefighter's Pension System, created by this subchapter. In addition, effective October 1, 1988, the assets of the Hollywood Firefighter's Supplemental Retirement System, established by Ordinance O-76-93 (§§ 33.095 through 33.107), shall be merged into the assets of the Hollywood Firefighter's Pension System created hereunder.
(Ord. O-2010-30, passed 7-21-10)
The provisions of this section shall not apply to a Tier 2 member. In the event that a city employee changes his or her job status with the city such that he or she is considered a Firefighter pursuant to § 33.035, he or she may become a member of the Firefighters' pension system subject to the following rules:
(A) "Date of transfer" shall be the date when the change in job status occurs such that he or she is considered to be a Firefighter pursuant to § 33.035.
(B) A Firefighter's total retirement benefits shall consist of a combination of the following:
(1) Benefits payable by the previous plan. The Firefighter's accumulated contributions, if any, shall remain funds of the previous plan. The Firefighter's retirement benefit payable from the previous plan shall be calculated by using benefit percentage rates and his or her credited service as of the date of transfer, and the greater of his or her compensation as of the date of his or her termination of employment or as of the date of transfer. This benefit shall be payable commencing on the Firefighter's normal retirement date pursuant to the Firefighter's pension system. The transferred employee shall not be eligible for any other benefits from the previous plan.
(2) Benefits payable by the Firefighters' pension system. For purposes of determining eligibility for retirement benefits under the Firefighters' pension system, the member's credited service prior to and after the date of transfer shall be included. For purposes of determining the amount of benefits payable under the Firefighters' pension system, excluding death and disability benefits, only service following the date of transfer shall be included. For purposes of determining the amount of any death or disability benefits payable under the Firefighters' pension system, credited service both prior to and after the date of transfer shall be included.
(C) In the event that a city employee who is a member of the Firefighters' pension system is no longer considered a Firefighter pursuant to § 33.035, the rules regarding his or her transfer to another retirement plan sponsored by the city shall be as set forth above, provided such other plan has appropriate language to accept transfers on the same basis.
(D) If, prior to the date when this language regarding transferred employees becomes effective, a member has transferred from one retirement plan sponsored by the city to another and had thereby lost credit under the previous plan for his or her service prior to the date of transfer, his or her credited service under the previous plan shall be restored under the following conditions:
(1) The person must be an employee of the city on the date this language becomes effective.
(2) Upon notification, the employee must repay the previous plan that amount of his or her contributions that he or she received from the previous plan due to his or her transfer to another plan within the city. The employee will have 60 days to exercise this option. He or she will be given one year to repurchase every two years of prior service.
(3) All previous contributions must be repaid prior to the employee's retirement to be eligible for any benefit under the previous plan.
(4) Upon satisfaction of these conditions, the employee will be credited with service in each plan as indicated in division (D)(2) above.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2011-26, passed 9-7- 11; Am. Ord. O-2019-08, passed 3-20-19)
The Board of Trustees has created and has been authorized to distribute an annual supplemental pension benefit which is payable on September 30 of each year. This supplemental pension benefit shall be calculated, administered and distributed as follows:
(A) The actuary for the system shall determine the percentage rate of investment return on the Fund assets during the 12-month period ending each September 30 ("annual investment return"). The rate determined shall be the rate reported in the most recent actuarial report submitted pursuant to F.S. Ch. 112, Part VII.
(B) If the annual investment return exceeds the actuary's annual fund earnings assumption rate of 8%, then a supplemental pension distribution shall be made to eligible recipients. If the annual investment return equals or is less than the assumption rate, no supplemental pension distribution shall be made that year.
(C) The value of the supplemental pension benefit fund shall be equal to the value of the positive difference, if any, between the annual investment return (up to a maximum rate of 10%) and the annual fund earnings assumption rate of 8% to a maximum annual investment return value of up to 2% as calculated on the eligible retirees' portion of the Fund's earnings attributable to assets apportioned to retiree benefit liability.
(D) Supplemental pension benefit distributions shall be paid only to:
(1) Pension recipients who retired or entered into the DROP (i) on or before September 30, 2011 and (ii) at least ten years prior to September 30 of the year for which supplemental pension benefits are to be paid and their surviving spouses who have not remarried; and
(2) Pension recipients who are (or were, prior to separation) Tier 1 members and who retired or entered into the DROP or the reformed plan retirement benefit (i) on or before March 20, 2019 and (ii) at least ten years prior to September 30 of the year for which supplemental pension benefits are to be paid and their surviving spouses who have not remarried.
(E) The supplemental pension benefit fund shall be divided into equal shares, the number of which shall equal the aggregate number of eligible recipients. On an annual basis, one share shall be awarded and paid, when appropriate, to each eligible recipient.
(F) The benefits provided for in this section shall not exceed $12,000 per year for any Tier 1 member who retires or enters the deferred retirement option plan on or after July 16, 2009.
(G) The supplemental benefits provided under this section shall only be paid after such time as the system has recovered any aggregate losses experienced beginning with the actuarial experience on or after October 1, 2008. If the plan has failed to recover any such aggregate losses, then no supplemental benefit shall be paid.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2011-26, passed 9-7- 11; Am. Ord. O-2019-08, passed 3-20-19)
(A) In lieu of terminating employment and accepting a service retirement allowance under the system, any Tier 1 member who has reached age 50 and who has completed ten years of credited service or who has completed not less than 23 years and not more than 30 years of credited service and who is eligible to receive a service retirement allowance may elect to participate in the deferred retirement option plan and defer the receipt of benefits in accordance with the provisions of this section.
(B) The election to participate in the DROP shall be exercised not later than the attainment of 30 years of credited service or such right of election shall be forfeited.
(C) The duration of participation in the DROP shall be specified and shall not exceed a number of years which, when added to the number of years of credited service, exceeds a total of 33 years. In any event, the total participation in the DROP shall not exceed eight years, and participation will end if the member is terminated for just cause.
(D) A member may participate in the DROP only once, and, after commencement in the DROP, he or she shall never have the right to be a contributing member of the system again.
(E) Upon the effective date of the commencement of participation in the DROP, membership in the system shall terminate and neither employee nor employer contributions shall be payable. For purposes of this section, compensation and credited service shall remain as they existed on the effective date of commencement of participation in the DROP, except as otherwise provided in this subchapter. The monthly retirement benefits that would have been payable, had the member elected to cease employment and receive a service retirement allowance, shall be paid into the DROP account. These deferred benefits shall earn interest as provided in division (F) below. Upon termination of employment, deferred benefits shall be payable as provided in division (H) below.
(F) Tier 1 members who entered the DROP prior to July 16, 2009, will have the option of directing some or all of their deferred benefits into an interest-bearing account with an 8% fixed rate of return. Tier 1 members who enter the DROP on or after July 16, 2009 will have the option of directing some or all of their deferred benefits into an interest-bearing account with a 6% fixed rate of return. Upon separation from employment, Tier 1 members who elect to keep their deferred benefits in the system shall retain the fixed rate of return which was applicable to their deferred benefits during their time of participation in the DROP. The administration and frequency of said option shall be determined by the Board. Any deferred benefits not directed into the fixed-rate account shall remain in a variable-rate account and shall earn interest at a rate set by the Board. Such interest shall be weighted and credited on a pro-rata basis by the Board to each individual account balance in the DROP account on an annual or other basis as determined by the Board.
(G) The DROP account shall not be subject to any fees, charges, etc., of any kind for any purpose.
(H) Upon termination of employment, a participant in the DROP shall receive, at his or her option, a lump sum payment from the DROP account equal to the payments to the DROP account, plus earned interest, or a true annuity based upon his or her account balance, or the participant may elect any other method of payment if approved by the Board. The monthly benefits that were being paid into the DROP account during the period of participation shall begin being paid to the retiree.
(I) If a participant dies during the period of participation in the DROP, a lump sum payment equal to his or her account balance shall paid to his or her beneficiary or, if none, to his or her estate; in addition, normal survivor benefits payable to the survivors of retirees shall be payable. If a participant terminates employment prior to the end of the specified period of participation, he or she shall receive, at his or her option, a lump sum payment from the DROP account equal to the payments to the DROP account, plus earned interest, or a true annuity based upon the participant's account balance, or he or she may elect any other method of payment if approved by the Board. The monthly benefits that were being paid into the DROP account during the period of participation shall begin being paid to the retiree.
(J) If employment is not terminated at the end of the period specified for participation, payments into the DROP account shall cease and no further interest shall be earned or credited to the individual account in the DROP account for the duration of employment past the end of the period specified for participation. Payment from the DROP account shall not be made until employment is terminated, nor shall the monthly benefits being paid into the DROP account during the period of participation be payable to the member until he or she terminates employment. Upon termination of employment, a member shall receive, at his or her option, a lump sum payment from the DROP account equal to the payments to the DROP account, plus interest earned by the individual account, or a true annuity based upon the member's account balance, or he or she may elect any other method of payment if approved by the Board.
(1) If a member becomes disabled after the period of participation in the DROP but while still an employee and his or her employment is terminated because of said disability, the member shall receive, at his or her option, a lump sum payment from the DROP account equal to the payments to the DROP account, plus earned interest, or a true annuity based upon his or her account balance, or the member may elect any other method of payment if approved by the Board. The monthly benefits that were being paid into the DROP account during the period of participation shall begin being paid to the retiree.
(2) If a member dies after the period of participation in the DROP but while still an employee, a lump sum payment equal to his or her account balance shall be paid to his or her beneficiary or, if none, to his or her estate; in addition, normal survivor benefits payable to survivors of retirees shall be payable.
(K) If a member of the Employees Retirement Plan transferred to this plan and subsequently participates in the DROP plan of this plan, any DROP benefit being held for the member in the Employees Retirement Plan may be transferred from the Employees Retirement Plan to this plan. The DROP benefit so transferred shall not be subject to the rate of return that is applied to other DROP accounts in this plan. Instead the net investment earnings or losses experienced by this plan shall be applied to the transferred DROP benefit.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2011-26, passed 9-7- 11; Am. Ord. O-2016-07, passed 5- 18-16; Am. Ord. O-2019-08, passed 3-20-19)
(A) This section creates a benefit known as the planned retirement benefit. Any member who retired or entered DROP prior to July 3, 2013 is not eligible for this benefit. Effective May 2, 2018, there is hereby created a benefit to be known as the reformed planned retirement benefit. Any member who retired or entered DROP prior to May 2, 2018 is not eligible for the benefit. Any member who on or after May 2, 2018 becomes eligible for DROP due to an amendment to the plan and affirmatively elects participation in the reformed planned retirement benefit in lieu of DROP shall be permitted to participate in that benefit.
(B) In order to be eligible for the planned retirement benefit, a member must have submitted a form created for this purpose declaring the member's intent to participate at any time on or after reaching the member's normal retirement date but no later than May 1, 2018. After that date, to be eligible for the reformed planned retirement benefit, a member must have submitted a form created for that purpose declaring the member's intent to participate at any time on or after reaching the member's normal retirement date. The form will identify the maximum number of years the member may participate in planned retirement benefit or the reformed planned retirement benefit and the member's latest employment termination date based on the maximum number of years identified. The form to participate in the reformed planned retirement benefit will also require the member to make an irrevocable election of one of the following two options:
(1) During the period of participation in the reformed planned retirement benefit, continuation of contributions equal to 8% or 9.5%, as applicable, of the
member's compensation until termination of employment and, upon termination of employment, election of one of the distribution options set forth in this section for the planned retirement benefit; or
(2) During the period of participation in the reformed planned retirement benefit, contribution of 0.5% of the member's compensation until termination of employment, and upon termination, taking a lump sum that would be valued based on the number of years the member worked after electing the planned retirement benefit, the reformed planned retirement benefit, or combination of both.
(C) Effective May 2, 2018, members participating in the planned retirement benefit were deemed for all purposes to be participating in the reformed planned retirement benefit. No later than August 19, 2018, all such members shall have made the election described in division (B) of this section. Any member electing option (B)(2) shall also make an irrevocable election by that date of one of the three optional forms of distribution. If any member elected to take any portion of the planned retirement benefit as a lump sum upon termination, the member shall receive a refund equal to 7.5% or 9.0%, as applicable, of compensation and any contributions after the second full pay period following August 19, 2018 shall be at the rate of 0.5% of compensation.
(D) A member who elects to participate in the planned retirement benefit or the reformed planned retirement benefit shall not exceed 33 years of service with the city, including any time participating in the planned retirement benefit and the reformed planned retirement benefit, or a combination of the two benefits. A member may terminate employment any time prior to reaching the earlier of (i) the maximum participation period of eight years for the planned retirement benefit and the reformed planned retirement benefit, or a combination of the two benefits, or (ii) 33 years of service with the city.
(E) There are three methods of distribution of a member's interest in the planned retirement benefit, the reformed planned retirement, or a combination of the two benefits. The member may elect one of the following, which shall be calculated by the actuary for the plan:
(1) A maximum lump sum based on the number of years a member worked after electing the benefit; or
(2) A larger annuity based on the number of years a member worked after electing the benefit; or
(3) A combination of the two methods.
Member balances may be left in the plan until the required distribution date under the Internal Revenue Code. While they are left in the plan, gains/losses on such balances shall be calculated as provided in division (I) below.
(F) While participating in either the planned retirement benefit, the reformed planned retirement benefit, or a combination of the two benefits, the member shall continue to pay the applicable employee contribution until termination of employment.
(G) Members who have reached normal retirement eligibility and have submitted the required election form shall have the right to participate in the planned retirement benefit or the reformed planned retirement benefit, or a combination of both benefits, until the maximum period prescribed. This maximum period of participation may not be diminished or impaired.
(H) If a lump sum benefit is elected, it shall be calculated based upon the monthly values of the member's final pension annuity benefit determined using the member's creditable service, average final compensation, and multiplier as provided in the plan as of the beginning of the planned retirement benefit or reformed planned retirement benefit participation period, together with the appropriate measure of earnings as defined in this section.
(I) Investment earnings attributable to the lump sum benefit shall be calculated in arrears using the net investment rate earned by the pension fund for each month of creditable service worked during the planned retirement benefit participation period or the reformed planned retirement benefit participation period. The earnings shall be applied to the prior pension annuity balance including all prior months of creditable service and further including prior monthly earnings. The investment earnings shall be compounded monthly to determine the amount to be credited during each year of the planned retirement benefit participation period or the reformed planned retirement benefit participation period. The aggregate value of the monthly investment earnings will determine the amount of investment earnings to be credited for the planned retirement benefit participation period or the reformed planned retirement benefit participation period. In the case of the planned retirement benefit only, investment earnings shall be further calculated using the formula in division (J) below.
(J) In the case of the planned retirement benefit only, there shall be the following exclusions from earnings which shall be dependent on the funded ratio of the plan. The member will share in plan losses in those years in which plan earnings are negative. While the plan has a funded ratio of less than 80%, any year in which net plan earnings are greater than 4% (applied monthly at the rate of 0.327%), the next 2% of earnings (applied at the monthly rate of 0.165%) shall be excluded from the member's lump sum payment and retained by the plan. When the plan has a funded ratio of 80% but less than 90%, the retained earnings will decline to the first 1% in excess of net earnings of 4%. When the plan reaches a funded ratio of 90%, the exclusions shall cease. In any year in which the funded ratio declines below the benchmarks in this division, the exclusion shall resume at the rate appropriate to the funding level.
(K) If an eligible member who is participating in the planned retirement benefit dies during the participation period, the surviving spouse or, in the case of no surviving spouse, the beneficiary designated in writing by the member, shall make the election provided in division (E)(1) above with respect to the planned retirement benefits earned. If an eligible member who is participating in the reformed planned retirement benefit elects option (1) (continuation of the 8% or 9% contribution, as applicable) under division (B) above and dies during the participation period, the surviving spouse or, in the case of no surviving spouse, the beneficiary designated in writing by the member, shall make the election provided in division (B)(1) above with respect to the reformed planned retirement benefits earned.
(L) In the case of any member of the plan hired on or before July 15, 2009 and who becomes eligible for DROP, the member retains the right to continue participation in the planned retirement benefit or the reformed planned retirement benefit by electing to continue participation on a form and according to the procedures and timetables adopted by the Board.
(M) For any member who reached normal retirement date between October 1, 2011 and July 17, 2013, the time such member worked between the normal retirement date (on or after October 1, 2011) and the date the member submits the planned retirement benefit election form may be included in the member's planned retirement benefit participation period, provided the member shall not exceed the maximum period of participation set forth in division (D) above.
(N) Upon reaching DROP eligibility, Tier 1 members shall be eligible to participate in the DROP plan, with the Tier 1 member to select an entry date on or after the day the member attained (or attains) age 50 or completed (or completes) 23 years of credited service subject to the existing limitation of 33 years of service with the city. Any member who attained age 50 with ten years of credited service or completed 23 years of credited service before March 20, 2019 and who was not already participating in the reformed planned retirement benefit before March 20, 2019, who wants to participate retroactively in the DROP plan, must submit his or her irrevocable written election/decision within 60 days after March 20, 2019. Any member who attained age 50 with ten years of credited service or completed 23 years of credited service before March 20, 2019 and who was already participating in the reformed planned retirement benefit before March 20, 2019 and who wants to change from the reformed planned retirement benefit to the DROP plan must submit his or her irrevocable written election/decision within 60 days after March 20, 2019. No member shall receive any benefits from both the DROP and the reformed planned retirement benefit. Participants in the reformed planned retirement benefit who transition to DROP shall receive a return of the 0.5% employee contribution, which shall be added to the participant's DROP account.
(Ord. O-2013-14, passed 7-3-13; Am. Ord. O-2018-11, passed 6-20-18; Am. Ord. O-2019-08, passed 3-20-19)
§ 33.063 AMENDMENT TO THIS SUBCHAPTER.
This subchapter, including this section, may be amended, in whole or in part, or repealed by the City Commission upon approval of any such amendment or repeal by:
(A) A "majority plus one" vote of the City Commission and 50% plus one of the voting members; or
(B) A majority vote of those qualified electors of the city voting in a referendum election called for such purpose by the City Commission and held in accordance with the provisions of law relating to elections currently in force in the city, or held in conjunction with a primary, general, or other special election held in the city.
(Ord. O-2010-30, passed 7-21-10)
(A) There is hereby created the City of Hollywood Chapter 175 Share Plan.
(B) The plan shall be managed and administered by the Board of Trustees of the City of Hollywood Firefighters' pension system.
(C) The plan shall be funded exclusively through excess, undedicated Chapter 175 insurance premium rebate taxes as further described in this section.
(D) The membership of the plan shall consist of all Tier 1 and Tier 2 members in active service as of July 16, 2009, excluding retirees and persons who entered the DROP prior to July 16, 2009.
(E) For the period worked by any participant from October 1, 2004 through September 30, 2008, the participant shall receive a one-half share for each six months or part thereof up to a maximum of four shares. The value of each share shall be determined by dividing the total number of shares into the aggregate excess insurance premium tax revenue on September 30, 2008. For the purposes of this section, AGGREGATE EXCESS INSURANCE PREMIUM TAX REVENUE shall mean the sum of the excess insurance premium tax revenue not otherwise committed to the payment of existing defined benefits. The premium tax revenue committed to existing defined benefits is the amount set forth in the 2005 actuarial valuation report and the 2008 actuarial valuation report. Commencing on July 3, 2013, AGGREGATE EXCESS INSURANCE PREMIUM TAX REVENUE shall mean the amount, if any, by which the Chapter 175 insurance premium rebate taxes received in a particular year exceeds $1,562,180 and for the period commencing in 2014, up through and including 2017 only, any excess premium tax above the limit in this section shall also be included.
(F) For each calendar year commencing with 2009, each employee or former employee who earned credited service in the pension plan during the previous calendar year shall receive one-half share for each six months or any part thereof of credited service (including approved leave and military leave) earned during said previous year. These shares, if any, shall be inclusive of the shares earned in division (E) above and shall not be in addition thereto. The value of the share for any year shall be determined by dividing the available insurance premium tax money received for that year (regardless of when received) by the total number of shares earned. For the purposes of this section, the term AVAILABLE INSURANCE PREMIUM TAX MONEY shall have the same meaning as aggregate excess insurance premium tax revenue.
(G) Eligible Tier 1 and Tier 2 members shall earn shares for all active service prior to entering the DROP. For all service after entry into the DROP, the member shall not receive additional shares.
(H) Share plan assets shall be invested by the Board in government insured certificates of deposit, fixed income instruments, mutual funds, money market funds or commingled funds thereof, as determined by the Board.
(I) Should a member of the share plan terminate service with the city prior to vesting in the defined benefit plan, all shares shall be deemed forfeited and the proceeds
divided during the following January among those share plan members who earned shares during the year of termination.
(J) Distribution of shares upon retirement and separation from service shall be made by lump sum or by rollover consistent with the applicable provisions of the Internal Revenue Code.
(K) The share plan shall be at no actuarial or other cost to the city. All administrative expenses of the share plan shall be deducted from each year's available premium tax money before it is credited to the share accounts to pay for the administration of the Board. No participant in the share plan shall have any constitutionally-protected contract or property rights to any benefits in the share plan except with regard to those shares already accrued. In the event the State of Florida shall terminate the insurance premium tax rebate program, the plan shall be administered solely on the basis of shares then accumulated.
(L) The Board shall have the power to promulgate uniform rules for the management of the share plan.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2013-14, passed 7-3- 13; Am. Ord. O-2019-08, passed 3-20-19)
GENERAL EMPLOYEES' SUPPLEMENTAL RETIREMENT SYSTEM
There is hereby established a city General Employees' Supplemental Retirement System comprising a comprehensive retirement plan for all persons employed by the city on and after October 1, 1976, other than police officers and firefighters employed by the city. The purpose of this supplemental plan is to establish terms and conditions under which retirement benefits will be provided to eligible general employees of the city. The benefits under the plan shall be in addition to amounts received as Federal Social Security benefits, and shall also be in addition to benefits received by any member from any other private or public retirement system. The supplemental retirement system shall commence operation as of the first day of October, 1976.
('72 Code, § 24-66) (Ord. O-76-92, passed 12-1-76)
For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
AVERAGE MONTHLY EARNINGS. One-twelfth of the arithmetic average of annual earnings for the highest consecutive five years of the ten full years immediately preceding the actual retirement or termination date of a member; provided, that if a member shall have been employed for fewer than five years, such average shall be taken only over the period of his actual employment.
BENEFICIARY. The person or persons entitled to receive any benefits hereunder at the death of a member who has or have been designated in writing by the member, and filed with the Board of Trustees. If no such designation is in effect at the time of death of the member, or if no person so designated is living at that time, the beneficiary shall be the member's estate.
BOARD. The Board of Trustees established for purposes of supervising, administering and managing the prior system and which is herewith empowered and authorized to perform the same functions for this supplemental system.
CITY COMMISSION. The City Commission of the city.
CONTINUANCE SERVICE. For the period subsequent to September 30, 1976, uninterrupted service by a member (years and completed months) whose customary employment is permanent and on an annual basis. However, the continuous service of a member shall not be deemed to have been interrupted by:
(1) Any authorized leave of absence or vacation, provided that all members similarly situated in similar circumstances shall be treated alike pursuant to uniform, nondiscriminatory rules.
(2) Any service, voluntary or involuntary, in the armed forces of the United States, provided the member is legally entitled to re-employment under federal law and that said member returns to employment within the period prescribed by law.
(3) And, provided further, no credit for vesting, participation or benefit computation purpose under the plan shall be allowed during or for any period wherein a member has been on an authorized leave of absence or vacation or in the armed forces of the United States in excess of three months.
EARNINGS. Basic compensation paid by the city to a member excluding overtime, bonuses and other nonregular payments.
FUND. The Employees' Retirement Fund originally established as part of the prior system and which shall be continued as part of and for purposes of both the prior and supplemental retirement systems.
GENERAL EMPLOYEE. Any person directly employed by the City of Hollywood on or after October 1, 1976, whose services are compensated in whole or in part by the city and who is employed on a permanent basis, except a police officer or firefighter.
MEMBER. Shall have the same meaning herein as such term is defined in the prior system, except that henceforth all persons employed as general employees on or after October 1, 1976, shall only be eligible to become members of the supplemental system.
PRIOR SYSTEM. The City Retirement System for employees other than police officers and firefighters, as it existed on September 30, 1976, and amendments thereto.
SUPPLEMENTAL SYSTEM. The City General Employees Supplemental Retirement System, as contained herein, and all amendments thereto.
('72 Code, § 24-67) (Ord. O-76-92, passed 12-1-76)
(A) All persons employed or becoming general employees on or after October 1, 1976, shall become members of the supplemental system upon completing one year of continuous service and upon completing an application form in such is required.
(B) (1) All persons employed or becoming general employees on or after October 1, 1976, must declare in writing within 30 days of the passage of this section or 30 days after notification in writing of their eligibility for membership in the supplemental system, whichever is later in time, their decision toenter a 1% noncontributory retirement benefit plan or a 2½% contributory retirement benefit plan.
(2) Each member of the supplemental system must declare in writing within one month subsequent to their first anniversary date in the supplemental system, or within one month subsequent to the first anniversary of the passage of this section, whichever is later in time, their intention to remain in the plan that they had selected pursuant to division (B)(1) above or to change their decision pursuant to division (B)(1) above. This division (B)(2) is available to each member on a one-time basis only.
('72 Code, § 24-68) (Ord. O-76-92, passed 12-1-76; Am. Ord. O-80-18, passed 2-20-80)
(A) Normal retirement date.
(1) A member may retire on the first day of the month coincident with or next following that date on which such member attains age 65, or that date on which such member attains age 60 and completes 25 years of continuous service, if earlier; or
(2) A member may retire on the first day of the month coincident with or next following the completion of 30 years of continuous service, regardless of age.
(3) In no event shall a member retire on a date later than age 65, unless the City Manager, with the approval of the City Commission, extends such member's retirement date by written authorization, on a year-to-year basis.
(B) Normal retirement benefit.
(1) The monthly retirement benefit shall be an amount equal to 2½% of average monthly earnings times years and completed months of continuous service.
(2) A member retiring hereunder on his normal retirement date shall receive a monthly benefit which shall commence on his normal retirement date and be continued thereafter during his lifetime and cease upon his death, unless an optional form of benefit payment providing a survivor's benefit had been selected in writing by the member prior to actual retirement.
('72 Code, § 24-69(1), (2)) (Ord. O-76-92, passed 12-1-76; Am. Ord. O-80-1, passed 1-20-80; Am. Ord. O-80-18, passed 2-20-80)
(A) Early retirement date. A member may retire on the first day of the month coincident with or next following the attainment of age 55 and the completion of 15 years of continuous service.
(B) Early retirement benefit. A member retiring hereunder on his early retirement date may receive either a deferred or an immediate monthly retirement benefit as follows:
(1) A deferred monthly retirement benefit which shall commence on his normal retirement date and shall be continued on the first day of each month thereafter during his lifetime. The amount of the benefit shall be determined and paid in the same manner as for retirement at his normal retirement date, except that average monthly earnings and continuous service shall be determined as of his early retirement date; or
(2) An immediate monthly retirement benefit which shall commence on his early retirement date and sHall be continued on the first day of each month thereafter during his lifetime. The benefit payable shall be as determined in division (B)(1) above, reduced by one-fifteenth for each of the first five years, and one-thirtieth (1/30) for each of the next five years which the starting date of the benefit precedes the normal retirement date.
('72 Code, § 24-69(3), (4)) (Ord. O-76-92, passed 12-1-76; Am. Ord. O-80-1, passed 1-20-80; Am. Ord. O-80-18, passed 2-20-80)
(A) Delayed retirement date. The delayed retirement date shall be that date following normal retirement date on which a member actually retires. In no event shall a member retire later than age 65, unless the City Manager, with the approval of the City Commission, extends such member's retirement date by written authorization, on a year-to-year basis.
(B) Delayed retirement benefit. A member retiring hereunder at his delayed retirement date shall receive a monthly retirement benefit which shall commence on the first day of the month coincident with or next following such delayed retirement date. The amount of each such monthly retirement benefit shall be determined in the same manner as for normal retirement, except that average monthly earnings and continuous service shall be determined as of the member's actual retirement date. The benefit shall be paid during such member's lifetime and cease upon his death, unless an optional form of benefit payment providing a survivor's benefit had been selected in writing by the member prior to actual retirement.
('72 Code, § 24-69(5), (6)) (Ord. O-76-92, passed 12-1-76; Am. Ord. O-80-1, passed 1-20-80; Am. Ord. O-80-18, passed 2-20-80)
(A) (1) Eligibility requirements for disability benefits for members shall be as follows:
(a) Service incurred. Eligible from entry date as a member of the system.
(b) Nonservice incurred. Five years of continuous service.
(2) Any member otherwise eligible as stated above who receives a service or nonservice-incurred injury, illness, disease or disability, and which illness, injury, disease or disability permanently incapacitates him physically or mentally from his regular and continuous duty as a general employee, shall receive from the Fund in equal monthly installments an amount equal to 30% of his rate of earnings in effect on the date of disability, or if greater, the monthly benefit accrued to date of disability (with no actuarial reduction). The benefit shall commence on the 91st day following the date of disability and shall continue until the earlier of death or recovery from such disability. In the event of recovery prior to the otherwise normal retirement date, credit for service during the period of disability shall be granted for purposes of subsequent retirement benefits.
(3) Provided further, the provisions of division (B) below shall apply to any such disabled member.
(B) Additional provisions regarding disability retirees:
(1) Any disability retiree (whether service or nonservice connected) shall have the right to elect, prior to his disability retirement date, to have his benefit payable in an optional form pursuant to the provisions on optional forms of benefit payments as provided in the prior system; and
(2) If the city provides or makes available any city job or position which can be undertaken and performed by a disability retiree, such job or position must be accepted and fulfilled by such disability retiree unless the Board, pursuant to its established procedures, determines that such disability retiree is unable to perform such job or position. In the event that any such job or position provides less compensation than was payable in the job or position occupied by such disabled member at the time of his disability, there shall be paid from the system to the member on a regular basis during the period of employment an amount equal to the differential in compensation as regards the respective positions of employment, further, in such event no disability benefit shall be payable during such period of employment.
(3) Provided further, any job or position offered to a disabled member shall constitute employment commensurate with the ability of and the previous position occupied by such disability retiree prior to the onset of his disability condition; it being the expressed intent of the Commission that no disability retiree be forced or required to fulfill a position, job or employment of any type with the city which would fail to recognize the prior established ability and position of such disabled person. In the event of an irreconcilable situation arising as a result of an unsuitable position being offered to a disabled retiree, such retiree may, upon application, have the matter finally resolved by the Commission and the decision of the Commission in any such case to be final and binding on both the disabled member, the city and the Board of Trustees of the retirement system.
('72 Code, § 24-69(7)) (Ord. O-76-92, passed 12-1-76; Am. Ord. O-80-1, passed 1-20-80; Am. Ord. O-80-18, passed 2-20-80)
(A) Service incurred death. A death benefit shall be payable in behalf of any member who is killed or dies as a direct result of an occurrence arising in the performance of service. The benefits shall be payable as follows:
(1) To the widow(er), until the earlier of death or remarriage, a monthly benefit equal to 30% of the member's earnings at the time of death.
(2) If there be no widow(er), the benefit shall be paid to the member's surviving children, until the youngest child reaches the age of 18 years.
(3) Upon remarriage or death of the widow(er), the benefit shall be paid to the member's surviving children until the youngest child reaches the age of 18 years.
(B) Nonservice incurred death benefit for members having completed ten years of credited service. Commencing April, 1, 1988, and thereafter, a death benefit shall be payable on behalf of any member who at any time of death is actively employed and who at such time has completed at least ten years of credited service. The benefit shall be determined as though the member had retired as of the date of death. The benefit shall be as follows:
(1) If at time of death such member has a spouse, who is also the member's designated beneficiary, the benefit shall be determined and paid as a joint and survivor annuity, whereby the member and designated beneficiary would receive the same amount of annuity, the benefit to be payable to the widow(er) until death or remarriage. Upon remarriage or death of the widow(er), the benefit shall be paid to or in behalf of the member's surviving children until the youngest child reaches the age of 18 years.
(2) If at time of death there is no spouse, who is also the member's designated beneficiary, the benefit shall be determined on a ten-year certain and life option basis. The benefit shall be paid to the member's surviving children, if any, until the youngest child reaches the age of 18 years. If there are no children under 18 years of age, the benefit shall be paid to such member's designated beneficiary, so that in any event the benefit is payable for a period of ten years certain.
(C) Additional provisions applicable to all preretirement death benefits.
(1) The manner of handling and administering the pension benefit to any child or children shall be determined by the Board including the establishment of a trust for the benefit of said child or children. However, funds payable by the Board to any such trust shall be for maintenance, health, and education of said child or children during the period of existence of any such trust. No survivor pension shall be paid to any stepchild of a deceased member who has not been legally adopted by such member.
(2) For the purpose of benefits under this act, the date of death of any member shall be established as the end of the calendar month in which such member dies.
('72 Code, § 24-69(8)) (Ord. O-76-92, passed 12-1-76; Am. Ord. O-80-1, passed 1-20-80; Am. Ord. O-80-18, passed 2-20-80; Am. Ord. O-90-15, passed 5-2-90)
(A) (1) Amount. The optional retirement benefit as designated pursuant to § 33.072(B) shall be an amount equal to 1% of average monthly earnings times years and completed months of continuous service.
(2) Duration, survivor benefit. A member retiring hereunder on his normal retirement date shall receive a monthly benefit which shall commence on his normal retirement date and be continued thereafter during his lifetime and cease upon his death, unless an optional form of benefit payment providing a survivor's benefit had been selected in writing by the member prior to actual retirement.
('72 Code, § 24-69(9)) (Ord. O-76-92, passed 12-1-76; Am. Ord. O-80-1, passed 1-20-80; Am. Ord. O-80-18, passed 2-20-80)
(B) The provisions of the prior system pertaining to optional forms of retirement benefits and a member's right to elect an option shall apply herein to the supplemental system and members thereof.
('72 Code, § 24-71) (Ord. O-76-92, passed 12-1-76)
If a member terminates his employment with the city, either voluntarily or by discharge, and is not eligible for any other benefits under this system, he shall be entitled to the following:
(A) With less than ten years of continuous service, a refund of member contributions, if any, plus 3% interest compounded annually.
(B) With ten or more years of continuous service:
(1) The pension benefits accrued to his date of termination, payable for the life of the member and commencing upon the member's attainment of his otherwise normal retirement age, provided he does not elect to withdraw his member contributions, or, in the discretion of the member,
(2) Refund of member contributions, if any, plus 3% interest compounded annually, in which event no pension benefit shall be payable.
('72 Code, § 24-70) (Ord. O-76-92, passed 12-1-76)
(A) Except as changed, modified or supplemented by the provisions of this section, the provisions of the prior system pertaining to financing shall be applicable to this supplemental system. The following additional provisions shall apply:
(1) Members shall contribute 7% of their base earnings, excluding overtime, bonuses and other nonregular payments, in order to receive the benefits of this system.
(2) The amount necessary to fund the annual normal cost of the supplemental system plus an amount sufficient to amortize the unfunded accrued liability over a period of not to exceed 40 years shall be paid by the city and deposited annually in the Fund.
(3) All moneys from whatever source required for the funding of benefits under both the prior and supplemental systems may be commingled in the Fund for investment purposes. At all times, records shall be maintained by the city, or by designated agents in its behalf, reflecting the respective amounts and sources of contributions as respects the prior and supplemental systems, as well as earnings and gains (or loss) in asset value properly allocable to such amounts.
(4) Members who elect to belong to the 1% retirement benefit plan shall not be required to contribute funds to said plan.
('72 Code, § 24-72)
(B) The general administration and responsibility for the proper operation of the supplemental system and for making effective and implementing the provisions of this act are hereby vested in the Board of Trustees, authorized and established for purposes of the prior system. The authority and responsibility of said Board, as well as its composition, as specified in the provisions pertaining thereto for the prior system, shall apply in like manner to the supplemental system.
('72 Code, § 24-73)
(C) The provisions of the prior system pertaining to fund investments shall apply herein to the supplemental system and assets thereof, provided that appropriate records are maintained at all times so as to reflect respective asset values and earnings and gain (or loss) on such assets. Subject to the above, all fund assets may be commingled for investment purposes.
('72 Code, § 24-75)
(D) (1) Each member of this supplemental system as of 30 days subsequent to the adoption hereof by the city shall have the option to elect in writing to make payments to the Fund in order that his continuous service prior to 30 days subsequent to the adoption hereof by the city shall be credited at the rate of 2½% of average monthly earnings, as under the prior system, instead of 1% of average monthly earnings, as under this supplemental system prior to 30 days subsequent to the adoption hereof by the city. The amount of the payment to the Fund shall be equal to the amount which would have been contributed by the member had he been a member of the prior system to 30 days subsequent to the adoption hereof by the city. The Board shall notify each applicable person of the amount which must be paid, and said person shall have one and one-half years for each year employed to buy back his benefits. Payments may be made through payroll deductions or by any other method approved by the Board. Each member who elects in writing not to buy back his previous continuous service at the 2½% rate shall have said years credited at the rate of 1% of average monthly earnings in effect on date of retirement of termination.
(2) All general employees who are members of the prior pension system pursuant to Charter Article IX shall have a single 90-day option period, said option period to begin 30 days after the adoption of this section, in which to elect in writing to become a member of the supplemental pension system, and may elect to have a 2½% contributory retirement benefit or a 1% noncontributory retirement benefit. Except as hereinafter specified, the benefit for any general employee who chooses to become a member of the supplemental plan shall thereafter be determined under the provisions of this supplemental system; providing that regular retirement benefits for service under the prior system up to the date the member chose to become a member of this supplemental system, shall be determined on the basis of 2½% of average monthly earnings, as defined under the prior system, times years and completed months of continuous service, and thereafter under this system on the basis of 1% of average monthly earnings, as defined under the supplemental system, times years and completed months of continuous service. Provided further, any employee electing to become a member of this supplemental system shall be required to leave his own contributions in the prior system in order to receive said two and 2½% of benefit credit for service prior to his electing to become a member of this supplemental system.
('72 Code, § 24-76) (Ord. O-76-92, passed 12-1-76; Am. Ord. O-80-1, passed 1-2-80; Am. Ord. O-80-18, passed 2-20-80; Am. Ord. O-80-26, passed 5-7-80)
Upon termination of the supplemental plan for any reason, or upon written notice to the Board of Trustees that contributions thereunder are being permanently discontinued, fund assets attributable to supplemental plan members shall be apportioned and distributed in accordance with the following procedures:
(A) The Board shall determine the date of distribution and the asset value to be distributed after taking into account expenses of distribution.
(B) The Board shall determine the method of distribution, that is, whether distribution shall be by payment in cash, the maintenance of another or substituted trust fund, by the purchase of insured annuities or otherwise, or each member entitled to benefits under the plan.
(C) The Board shall apportion the asset value as of date of termination in the manner set forth below, on the basis that the amount required to provide any member's retirement income shall mean, the actuarially computed single sum value thereof, except that if the method of distribution determined under this division (C)(2) below, involves the purchase of an insured annuity, the amount required shall mean the single premium payable for such annuity.
(1) Apportionment shall first be made in respect of each retired member receiving a retirement income hereunder on each date, each person receiving a retirement income on such date on account of a retired (but since deceased) member and each member who has, by such date, become eligible for normal retirement but has not yet retired, in the amount required to provide such retirement income, provided that if such asset value be less than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such asset value.
(2) If there be any asset value remaining after the apportionment under this division (C)(1) above, apportionment shall next be made in respect of each member in the service of the city on such date who has completed at least ten years of continuous service and who is not entitled to an apportionment under this division (C)(1), in the amount required to provide the actuarial equivalent of the accrued normal retirement income, based on the member's continuous service and earnings to such date, and each former member then entitled to a benefit under the provisions of this act who has not, by such date.
(3) If there be any asset value after the apportionments under this division (C)(1) and (2), apportionment shall lastly be made on a proportionate basis so as to reflect the relative accrued service of each of the remaining members in service of the city on such date who are not otherwise entitled to a benefit per this division (C)(1) and (2);
(4) In the event that there be asset value remaining after full apportionment specified in this division (C)(1), (2) and (3), such excess shall be returned to the city.
(D) The Board shall distribute, in accordance with the manner of distribution determined under division (B) above, the amount apportioned under division (C) above.
('72 Code, § 24-74) (Ord. O-76-92, passed 12-1-76)
FIREFIGHTER'S SUPPLEMENTAL RETIREMENT SYSTEM
There is hereby established a City Firefighter's Supplemental Retirement System comprising a comprehensive retirement plan for all persons employed as firefighters by the city on and after October 1, 1976. The purpose of this supplemental plan is to establish terms and conditions under which retirement benefits will be provided to eligible firefighters of the city. The benefits under the plan shall be in addition to amounts received as federal Social Security benefits, and shall also be in addition to benefits received by any member from any other private or public retirement system. The supplemental retirement system shall commence operation as of the October 1, 1976.
('72 Code, § 24-77) (Ord. O-76-93, passed 12-1-76)
For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
AVERAGE MONTHLY EARNINGS. One-twelfth of the arithmetic average of annual earnings for the highest consecutive five years of the ten full years immediately preceding the actual retirement or termination date of a member.
BENEFICIARY. The person or persons entitled to receive any benefits hereunder at the death of a member who has or have been designated in writing by the member and filed with the Board. If no person so designated is living at that time, the beneficiary shall be the estate of the member.
BOARD. The Board of Trustees established for purposes of supervising, administering and managing the prior system and which is herewith empowered and authorized to perform the same functions for this supplemental system.
CONTINUOUS SERVICE. Uninterrupted service by a member (expressed as years and completed months), from the date he last entered employment as a firefighter until the date his employment shall be terminated by death, retirement or discharge; provided, however, the continuous service of any member shall not be deemed to be interrupted by:
(1) Any authorized leave of absence, vacation, or period of suspension, provided that all members similarly situated in similar circumstances shall be treated alike pursuant to uniform, nondiscriminatory rules established by the Board. Such absences from employment duties shall not count towards benefit computation purposes unless ruled otherwise by the Board.
(2) Any service, voluntary or involuntary, in the armed forces of the United States, provided further, the preservation and status of all rights and benefits under this subchapter as regards members serving in the armed forces of the United States shall be as specified in Section 2 of the prior plan, entitled “Military Service.”
(3) Any period of disability as approved by the Board.
CREDIT MEASURE. Shall have the same meaning hereunder in respect to this supplemental system as such terms have in the prior system.
EARNINGS. Basic compensation paid by the city to a firefighter excluding overtime, bonuses, and any other nonregular payment.
FIREFIGHTERS. Shall have the same meaning hereunder in respect to this supplemental system as such terms have in the prior system.
FUND. The trust fund originally established as part of the prior system and which shall be continued as part of and for purposes of both the prior and supplemental retirement systems.
MEMBER. Shall have the same meaning herein as such term is defined in the prior system, except that henceforth all persons employed as firefighters on or after October 1, 1976, shall only be eligible to become members of the supplemental system.
PRIOR SYSTEM. The City Firefighter's Pension Fund as it existed on September 30, 1976, and amendments thereto.
SPOUSE or WIDOW(ER). The lawfully wedded wife or husband of a member at the time of his death.
SUPPLEMENTAL SYSTEM. The City Firefighter's Supplemental Retirement System, as contained herein, and all amendments thereto.
('72 Code, § 24-78) (Ord. O-76-93, passed 12-1-76)
All persons employed as firefighters on or after October 1, 1976, shall become members of the supplemental system upon completing one year of continuous service and upon complying with administrative or application requirements established on a uniform basis by the Board.
('72 Code, § 24-77) (Ord. O-76-93, passed 12-1-76; Am. Ord. O-84-27, passed 6-6-84; Am. Ord. O-86-61, passed 12-3-86)
(A) Normal retirement date.
(1) A member may retire on the first day of the month coincident with or next following thatdate on which such member attains age 60, or that date on which such member attains age 55 and completes 25 years of continuous service, if earlier; or
(2) A member may retire on the first day of the month coincident with or next following the completion of 30 years of continuous service, regardless of age;
(3) In no event shall a member retire on a date later than age 60, unless the Fire Department Chief, with the approval of the City Commission, extends such member's retirement date by written authorization, on a year-to-year basis.
(B) Normal retirement benefit.
(1) The normal retirement benefit available to members of the supplemental system shall be an amount equal to 2½% of average monthly earnings times years and completed months of continuous service.
(2) A member retiring hereunder on his normal retirement date shall receive a monthly benefit which shall commence on his normal retirement date and be continued thereafter during his lifetime and cease upon his death, unless an optional form of benefit payment providing a survivor's benefit had been selected in writing by the member prior to actual retirement as provided in the prior system.
('72 Code, § 24-80(1), (2)) (Ord. O-76-93, passed 12-1-76; Am. Ord. O-80-3, passed 1-2-80; Am. Ord. O-84-27, passed 6-6-84; Am. Ord. O-86-61, passed 12-3-86)
(A) Early retirement date. A member may retire on the first day of the month coincident with or next following the attainment of age 50 and the completion of 15 years of continuous service.
(B) Early retirement benefit. A member retiring hereunder on his early retirement date may receive either a deferred or an immediate monthly retirement benefit as follows:
(1) A deferred monthly retirement benefit which shall commence on his normal retirement date and shall be continued on the first day of each month thereafter during his lifetime. The amount of the benefit shall be determined and paid in the same manner as for retirement at his normal retirement date, except that average monthly earnings and continuous service shall be determined as of his early retirement date; or
(2) An immediate monthly retirement benefit which shall commence on his early retirement date and shall be continued on the first day of each month thereafter during his lifetime. The benefit payable shall be as determined in this division (B)(1) above, reduced by one-fifteenth for each of the first five years, and one-thirtieth for each of the next five years by which the starting date of the benefit precedes the normal retirement date.
('72 Code, § 24-80(3),(4)) (Ord. O-76-93, passed 12-1-76; Am. Ord. O-80-3, passed 1-2-80; Am. Ord. O-84-27, passed 6-6-84; Am. Ord. O-86-61, passed 12-3-86)
(A) Delayed retirement date. The delayed retirement date shall be that date following normal retirement date on which a member actually retires. In no event shall a member retire later than age 60, unless the Fire Department Chief, with the approval of the City Commission, extends such member's retirement date by written authorization, on a year-to-year basis.
(B) Delayed retirement benefit. A member retiring hereunder at his delayed retirement date shall receive a monthly retirement benefit which shall commence on the first day of the month coincident with or next following such delayed retirement date. The amount of each such monthly retirement benefit shall be determined in the same manner as for normal retirement, except that average monthly earnings and continuous service shall be determined as of the member's actual retirement date. The benefit shall be paid during such member's lifetime and cease upon his death, unless an optional form of benefit payment providing a survivor's benefit had been selected in writing by the member prior to actual retirement.
('72 Code, § 24-80(5), (6)) (Ord. O-76-93, passed 12-1-76; Am. Ord. O-80-3, passed 1-2-80; Am. Ord. O-84-27, passed 6-6-84; Am. Ord. O-86-61, passed 12-3-86)
(A) Service incurred.
(1) A member who, at any time following employment, receives a medically substantiated service-connected injury, disease or disability, as determined by the medical board, which injury, disease or disability permanently incapacitates him, physically or mentally, from his regular and continuous duties as a firefighter, shall receive a monthly benefit equal to 50% of his earnings in effect on date of disability.
(2) Such benefit shall commence on the 91st day following the date of disability and shall continue until the earlier of death or recovery from such disability. In the event of recovery prior to the otherwise normal retirement date, credit for service during the period of disability shall be granted for purposes of subsequent retirement benefits.
(3) Provided, further, the provisions of division (C) herein, shall apply to any such disabled member.
(B) Nonservice incurred.
(1) Any member with five years continuous service who receives a nonservice incurred injury, illness, disease or disability, and which illness, injury, disease or disability permanently incapacitates him physically or mentally from his regular and continuous duty as a firefighter, shall receive from the Fund in equal monthly installments an amount equal to 30% of his rate of earnings in effect on the date of disability, or if greater, the monthly benefit accrued to date of disability (with no actuarial reduction). The benefit shall commence on the 91st day following the date of disability and shall continue until the earlier of death or recovery from such disability. In the event of recovery prior to the otherwise normal retirement date, credit for service during the period of disability shall be granted for purposes of subsequent retirement benefits.
(2) Provided further, the provisions of division (C) herein, shall apply to any such disabled member.
(C) Additional provisions regarding disability retirees.
(1) Any disability retiree (whether service or nonservice connected) shall have the right to elect prior to his disability retirement date to have his benefit payable in an optional form pursuant to the provisions on optional forms of benefit payments as provided in the prior system; and
(2) If the city provides or makes available any city job or position which can be undertaken and performed by a disability retiree, such job or position must be accepted and fulfilled by such disability retiree unless the Board of Trustees, pursuant to its established procedures, determines that such disability retiree is unable to perform such job or position. In the event that any such job or position provides less compensation than was payable in the job or position occupied by such disabled member at the time of his disability, there shall be paid from the system to the member on a regular basis during the period of employment an amount equal to the differential in compensation as regards the respective positions of employment.
(3) Provided, further, any job or position offered to a disabled member shall constitute employment commensurate with the ability of and the previous position occupied by such disability retiree prior to the onset of his disability condition; it being the expressed intent of the City Commission that no disability retiree be forced or required to fulfill a position, job or employment of any type with the city which would fail to recognize the prior established ability and position of such disabled person. In the event of an irreconcilable situation arising as a result of an unsuitable position being offered to a disabled retiree, such retiree may, upon application, have the matter finally resolved by the Commission, and the decision of the Commission in any such case to be final and binding on both the disabled member, the city and the Board of the retirement system.
(D) Disability provisions of prior system applicable. The provisions of the prior system shall apply hereunder to members of this supplemental system.
('72 Code, § 24-80(7)) (Ord. O-76-93, passed 12-1-76; Am. Ord. O-80-3, passed 1-2-80; Am. Ord. O-84-27, passed 6-6-84; Am. Ord. O-86-61, passed 12-3-86)
(A) Service incurred death. A death benefit shall be payable in behalf of any member who is killed or dies as a direct result of an occurrence arising in the performance of service. The benefits shall be payable as follows:
(1) To the widow(er), until the earlier of death or remarriage, a monthly benefit equal to 50% of the member's earnings at the time of death.
(2) If there be no widow(er), the benefit shall be paid to the members surviving children, until the youngest child reaches the age of 18 years.
(3) Upon remarriage or death of the widow(er), the benefit shall be paid to the member's surviving children until the youngest child reaches the age of 18 years.
(B) Nonservice incurred death benefit for members eligible for early, normal, or delayed retirement benefit.
(1) A death benefit shall be payable on behalf of any member who at time of death is actively employed and who at such time is eligible for an early, normal, or delayed retirement benefit. The benefit shall be calculated as though the member had retired on his date of death.
(2) The benefit shall be as follows:
(a) If, at time of death, such member has a spouse, the benefit shall be determined and paid as a 50% joint and survivor annuity, the reduced benefit to be payable to the widow(er) until death or remarriage. Upon remarriage or death of the widow(er), the benefit shall be paid to or in behalf of the member's surviving children until the youngest child reaches the age of 18 years.
(b) If, at time of death, there is no spouse, the benefit shall be determined on a ten-year certain and life option basis. The benefit shall be paid to the member's surviving children, if any, until the youngest child reaches the age of 18 years. If there are no children under 18 years of age, the benefit shall be paid to such member's designated beneficiary, so that in any event the benefit is payable for a period of ten years certain.
(C) Additional provisions applicable to all preretirement death benefits.
(1) The manner of handling and administering the pension benefit to any child or children shall be determined by the Board, including the establishment of a trust for the benefit of said child or children. However, funds payable by the Board to any such trust shall be for maintenance, health, and education of said child or children during the period of existence of any such trust. No survivor pension shall be paid to any stepchild of a deceased member who had not been legally adopted by such member.
(2) For the purpose of benefits under this act, the date of death of any member shall be established as the end of the calendar month in which such member dies.
(D) Diseases of firefighters suffered in line of duty; presumption. The applicable section of the prior system shall apply to members of this supplemental system.
('72 Code, § 24-80(8)) (Ord. O-76-93, passed 12-1-76; Am. Ord. O-80-3, passed 1-2-80; Am. Ord. O-84-27, passed 6-6-84; Am. Ord. O-86-61, passed 12-3-86)
If a member terminates his employment with the Fire Department, either voluntarily or by discharge, and is not eligible for any other benefits under this system, he shall be entitled to the following:
(A) With less than ten years of continuous service, a refund of member contributions, if any, plus 3% interest compounded annually.
(B) With ten or more years of continuous service:
(1) The pension benefits accrued to his date of termination, payable for the life of the member and commencing upon the member's attainment of his otherwise normal retirement age, provided he does not elect to withdraw his member contributions, or, in the discretion of the member;
(2) Refund of member contributions, if any, plus 3% interest compounded annually, in which event no pension benefit shall be payable.
('72 Code, § 24-81) (Ord. O-76-93, passed 12-1-76)
The applicable section of the prior system pertaining to optional forms of retirement benefits and a member's right to elect an option up to six months prior to his actual retirement shall apply herein to the supplemental system and members thereof.
('72 Code, § 24-82) (Ord. O-76-93, passed 12-1-76)
(A) Except as changed, modified or supplemented by the provisions of this section, the provision of the prior system pertaining to financing shall be applicable to this supplemental system. The following additional provisions shall apply:
(1) Members shall contribute 7% of their base earnings, excluding overtime, bonuses and other nonregular payments, in order to receive the benefits of this system.
(2) There shall be promptly deposited into the Fund all refunds of state premium tax moneys allocable to the payment of benefits for members hereunder.
(3) The remaining amount necessary to fund the annual normal cost of the supplemental system, plus an amount sufficient to amortize the unfunded accrued liability over a period of not to exceed 40 years shall be paid by the city and deposited annually in the Fund.
(4) All moneys from whatever source required for the funding of benefits under both the prior and supplemental systems may be commingled in the Fund for investment purposes. At all times, records shall be maintained by the city or by designated agents in its behalf, reflecting the respective amounts and sources of contributions as respects the prior and supplemental systems, as well as earnings and gains (or loss) in asset value properly allocable to such amounts.
(5) That all members of the plan enrolled under the 1% retirement option existing prior to the effective date of this subchapter (October, 1986) shall have a one-time option to buy back the time covered by the 1% benefit option plan by paying into the plan the required contribution, or electing to have his final retirement prorated at the 1% benefit for the period served thereunder and the balance of time at the 2½% benefit. Members who elect to buy back the time covered by the 1% benefit option plan shall have a reasonable period of time in which to do so. For the purpose of this section only, “reasonable” shall be defined as a period of time equal to twice the length of time previously covered under the 1% benefit option plan, up to but not exceeding ten years (for example, up to two years of time in which to buy back each year of 1% benefit coverage, to a maximum of ten years.
('72 Code, § 24-83)
(B) The general administration and responsibility for the proper operation of the supplemental system and for making effective and implementing the provisions of this subchapter are hereby vested in the Board, authorized and established for purposes of the prior system. The authority and responsibility of said Board, as well as its composition, as specified in the provisions pertaining thereto for the prior system shall apply in like manner to the supplemental system.
('72 Code, § 24-84)
(C) The provisions of the prior system pertaining to custodianship and fund investments shall apply herein to the supplemental system and assets thereof, provided that appropriate records are maintained at all times so as to reflect respective asset values, earnings and gain (or loss) on such assets. Subject to the above, all fund assets may be commingled for investment purposes.
('72 Code, § 24-86)
(D) (1) Each member of this supplemental system as of 30 days subsequent to the adoption hereof by the city shall have the option to elect in writing to make payments to the Fund in order that his continuous service prior to 30 days subsequent to the adoption hereof by the city shall be credited at the rate of 2½% of average monthly earnings, as under the prior system, instead of 1% of average monthly earnings, as under this supplemental system prior to 30 days subsequent to the adoption hereof by the city. The amount of the payment to the Fund shall be equal to the amount which would have been contributed by the member had he been a member of the prior system to 30 days subsequent to the adoption hereof by the city. The Board shall notify each applicable person of the amount which must be paid, and said person shall have one and one-half years for each one year employed to buy back his benefits. Payments may be made through payroll deduction or by any other method approved by the Board. Each member who elects in writing not to buy back his previous continuous service at the 2½% rate shall have said years credited at the rate of 1% of average monthly earnings in effect on date of retirement or termination.
(2) All firefighters who are members of the prior pension system pursuant to Charter Article XIII shall have a single 90-day option period, said option period to begin 30 days after the adoption of this section, in which to elect in writing to become a member of the supplemental pension system, and may elect to have a 2½% contributory retirement benefit or a one percent noncontributory retirement benefit. Except as hereinafter specified, the benefit for any firefighter who chooses to become a member of the supplemental plan shall thereafter be determined under the provisions of this supplemental system; providing that regular retirement benefits for service under the prior system up to the date the member chose to become a member of this supplemental system, shall be determined on the basis of 2½% of average monthly earnings, as defined under the prior system, times years and completed months of continuous service, and thereafter under this system on the basis of 1% of average monthly earnings, as defined under the supplemental system, times years and completed months of continuous service. Provided further, any employee electing to become a member of this supplemental system shall be required to leave his own contributions in the prior system in order to receive said 2½% of benefit credit for service prior to his electing to become a member of this supplemental system.
('72 Code, § 24-87)
(Ord. O-76-93, passed 12-1-76; Am. Ord. O-80-24, passed 5-7-80; Am. Ord. O-84-27, passed 6-6-84; Am. Ord. O-86-61, passed 12-3-86)
Upon termination of the supplemental plan for any reason, or upon written notice to the Board of Trustees that contributions thereunder are being permanently discontinued, Employees' Retirement Fund assets attributable to supplemental plan members shall be apportioned and distributed in accordance with the following procedures:
(A) The Board shall determine the date of distribution and the asset value to be distributed after taking into account expenses of distribution.
(B) The Board shall determine the method of distribution, that is, whether distribution shall be by payment in cash, the maintenance of another or substituted trust fund, by the purchase of insured annuities or otherwise, for each member entitled to benefits under the plan.
(C) The Board shall apportion the asset value as of date of termination in the manner set forth below, on the basis that the amount required to provide any member's retirement income shall mean the actuarially computed single-sum value thereof, except that if the method of distribution determined under division (B) involves the purchase of an insured annuity, the amount required shall mean the single premium payable for such annuity.
(1) Apportionment shall first be made in respect of each retired member receiving a retirement income hereunder on such date, each person receiving a retirement income on such date on account of a retired (but since deceased) member, and each member who has, by such date, become eligible for normal retirement but has not yet retired, in the amount required to provide such retirement income, provided that if such asset value be less than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such asset value.
(2) If there be any asset value remaining after the apportionment under this division (C)(1), apportionment shall next be made in respect of each member in the service of the city on such date who has completed at least ten years of continuous service and who is not entitled to an apportionment under this division (C)(1), in the amount required to provide the actuarial equivalent of the accrued normal retirement income, based on the members continuous service and earnings to such date, and each former member then entitled to a benefit under the provisions of this subchapter who has not, by such date, reached his normal retirement date, in the amount required to provide the actuarial equivalent of the accrued normal retirement income to which he is entitled under this act; provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value.
(3) If there be any asset value after the apportionments under this division (C)(1) and (2), apportionment shall lastly be made on a proportionate basis so as to reflect the relative accrued service of each of the remaining members in service of the city on such date who are not otherwise entitled to a benefit per this division (C)(1) and (2);
(4) In the event that there be asset value remaining after full apportionment specified in this division (C)(1), (2) and (3) such excess shall be returned to the city, unless return of state's contributions to the state, provided that, if the excess is less than the total contributions made by the city and the state to date of termination of the plan, such excess shall be divided proportionately to the total contributions made by the city and the state.
(D) The Board shall distribute, in accordance with the manner of distribution determined under division (B), the amounts apportioned under division (C).
('72 Code, § 24-85) (Ord. O-76-93, passed 12-1-76)
POLICE OFFICER'S RETIREMENT SYSTEM
There is hereby established a Police Officer's Retirement System comprising a comprehensive amended retirement plan for the Police Officers of the city. The purpose of this plan is to establish amended terms and conditions under which retirement benefits will be provided to eligible employees of the city. The benefits under the plan shall be in addition to amounts received as Federal Social Security benefits, and shall also be in addition to benefits received by any member from any other private or public retirement system.
(Ord. O-91-82, passed 11-20-91; Am. Ord. O-2011-27, passed 9-7- 11; Am. Ord. O-2019-02, passed 2-20-19)
For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
AVERAGE FINAL COMPENSATION. For purposes of Group One restored members and Group Two restored members only, AVERAGE FINAL COMPENSATION shall include the average of the member's highest three years of earnings preceding the actual retirement or termination date of such member. For purposes of Group Three members only, AVERAGE FINAL COMPENSATION shall include the arithmetic average of earnings for the 60 highest consecutive months of the last 120 months of credited service prior to retirement, termination, or death.
BENEFICIARY. The person or persons entitled to receive any benefits hereunder at the death of a member who has or have been designated in writing by the member and filed with the Board. If no person so designated is living at that time, the beneficiary shall be the estate of the member.
BOARD. The Board of Trustees, which shall supervise, administer and manage the system herein provided.
CITY. The City of Hollywood, Florida.
CONTINUOUS SERVICE. Uninterrupted service by a member (expressed as years and completed months) from the date the member last entered employment as a Police Officer until the date the member’s employment shall be terminated by death, retirement or discharge, provided however, the continuous service of any member shall not be deemed to be interrupted by:
(1) Any authorized leave of absence, vacation or period of suspension, provided that all members similarly situated in similar circumstances shall be treated alike pursuant to uniform, non-discriminatory rules established by the Board. Such absences from employment duties shall not count towards benefit computation purposes unless ruled otherwise by the Board.
(2) Any service, voluntary or involuntary in the Armed Forces of the United States; provided further, the preservation and status of all rights and benefits under this subchapter as regards members serving in the Armed Forces of the United States shall be as specified in § 33.133 hereof.
(3) Any period of disability as approved by the Board.
CUSTODIAN. The entity chosen to serve as custodian of the fund established as part of the retirement system.
EARNINGS. For purposes of Group One restored members only, EARNINGS, also referred to as “compensation,” shall include salary, overtime pay not to exceed 300 hours per year, longevity pay, assignment pay, payments for accrued holiday time, payments for accrued blood time, and payments for accrued compensatory time, but shall not include payments for unused sick time or for unused vacation time. For purposes of Group Two Restored Members only, EARNINGS shall include salary, overtime pay not to exceed 300 hours per year, longevity pay, assignment pay, payments for accrued holiday time not to exceed 130 hours, payments for accrued blood time, and payments for accrued compensatory time, but shall not include payments for unused sick time or for unused vacation time. For purposes of Group Three members only, EARNINGS shall include salary, overtime pay not to exceed 200 hours per year, longevity pay, assignment pay, payments for accrued holiday time not to exceed 130 hours per year but shall not include payments for accrued blood time, annual “cash out” payments for vacation time, payments for accrued compensatory time, and payments for unused sick time or for unused vacation time.
FUND. The trust fund originally established and continued hereunder as part of the plan.
GROUP ONE RESTORED MEMBERS. Category consisting of members employed on February 20, 2019 who were hired on or before September 30, 2011 and will be eligible to retire on or before September 30, 2020 based on a normal retirement date of age 50 or 22 years of continuous service.
GROUP TWO RESTORED MEMBERS. Category consisting of members employed on February 20, 2019 who were hired on or before September 30, 2011 and will not be eligible to retire until after September 30, 2020 based on a normal retirement date of age 50 or 22 years of continuous service.
GROUP THREE MEMBERS. Category consisting of members who were hired after September 30, 2011.
INVESTMENT ADVISOR. Any person or entity designated to serve as investment agent and investment advisor for the fund.
MEMBER. All employees of the city classified as full-time Police Officers.
PLAN. This subchapter setting forth the provisions of the retirement system.
POLICE OFFICER. Any person who is appointed or employed full time by the city, who is certified or required to be certified as a law enforcement officer in compliance with F.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 F.S. § 943.10(6) and (8), respectively.
SPOUSE or WIDOW(ER). The lawfully wedded wife or husband of a member of the Police Department at the time of the member’s death.
SYSTEM. The City Police Retirement System as contained herein and all amendments thereto.
(Ord. O-91-82, passed 11-20-91; Am. Ord. O-2007-15, passed 6-20- 07; Am. Ord. O-2011-27, passed 9- 7-11; Am. Ord. O-2015-22, passed 10-7-15; Am. Ord. O-2019-02, passed 2-20-19; Am. Ord. O-2023-03, passed 4-4-23)
(A) Conditions of eligibility.
(1) Active, non-retired employees who are members of the "Police Pension Fund, City of Hollywood", at the time of the adoption of this retirement system shall become members of this system.
(2) It shall be mandatory for any future Police Officer to become a member if at least 18 years of age and provided that:
(a) Such Police Officer satisfactorily completes all required medical examinations for a Police Officer of his classification as prescribed by the Board and the Police Department at the time of initial employment;
(b) Such Police Officer meets all other requirements of the city.
(c) The methods and procedures to be followed with regard to the above shall be determined by the Board.
(3) Police Officers who were previously employed by the city in a capacity other than as a Police Officer but who subsequently become members as defined herein shall be eligible for membership under this system; provided however, that for purposes of this system, continuous service shall include only that period of employment during which such persons are Police Officers as defined herein.
(4) A member may elect to purchase credit for the period of attendance at a basic recruit training program approved by the Criminal Justice Standards and Training Commission of the Florida Department of Law Enforcement while employed by the city and for any portion of the one year probationary period that predates October 12, 2015, by contributing 8% of his or her earnings for those periods, plus interest as determined by the Board, into the system. A member shall have until the date on which he or she makes application for retirement within which to make this election and to make the necessary contribution.
(B) Application. Each Police Officer shall complete an application form, within the time limit established by the Board, covering the following points, as well as such other points or items as may be prescribed by the Board:
(1) Such Police Officer's acceptance of the terms and conditions of this plan; and, if requested;
(2) Such Police Officer's designation of a beneficiary or beneficiaries.
(C) Change in designation of beneficiary. A member may from time to time change his or her designated beneficiary by written notice to the Board upon forms provided by the Board; no change of beneficiary shall be effective until such written notice has been received by the Board. Upon such change, the rights of all previously designated beneficiaries to receive any benefit under the plan shall cease. Notwithstanding the foregoing, a member who has entered the DROP plan created pursuant to § 33.128(E) shall be limited to a maximum of two such changes during his or her participation in the DROP plan and retirement. Similarly, a member who retires without participating in the DROP plan shall be limited to two such changes during his or her retirement. Any actuarial cost of a change in designation of beneficiary shall be fully paid by the member or retiree. The actuarial cost shall be calculated based on the remaining value, rather than the initial value, of the members or retiree's benefits under the plan. In no event shall a change in the beneficiary of a member who has entered the DROP plan or retired result in an increase of such members or retiree's benefit amount under the plan.
(Ord. O-91-82, passed 11-20-91; Am. Ord. O-98-06, passed 4-1-98; Am. Ord. O-2001-13, passed 5-2- 01; Am. Ord. O-2002-33, passed 9-18-02; Am. Ord. O-2007-15, passed 6-20-07; Am. Ord. O-2015-22, passed 10-7-15)
(A) Normal retirement date. For Group One restored members and Group Two restored members, a member may retire at the normal retirement date of age 50 or upon completion of 22 years of continuous service. For Group Three members, a member may retire at the normal retirement date of age 55 with ten years of continuous service or upon completion of 22 years of continuous service.
(B) Normal retirement benefit.
(1) Amount.
(a) Group One restored members. Effective February 20, 2019, the following pension benefits in effect on September 30, 2011 will be restored to Group One restored members as specifically provided in the following divisions.
1. A 3% multiplier for the first 20 years of continuous service, a 4% multiplier for the twenty-first year of continuous service, and upon completion of 22 years of continuous service, an accrued benefit of 80% of average final compensation.
2. Group One restored members employed on February 20, 2019 who did not participate in the deferred retirement option plan ("DROP" plan) shall receive a 2% annual increase in benefits commencing three years after the date retirement benefits begin. Group One restored members employed on February 20, 2019 who participated in the DROP plan shall receive a 2% annual increase in benefits commencing upon the later of (i) separation of employment and (ii) three years after the member entered the DROP plan.
3. Only those Group One restored members employed on February 20, 2019 and participating in either the DROP plan or the reformed planned retirement benefit on February 20, 2019 shall be eligible for the supplemental pension distribution under § 33.136(N) below.
4. A maximum normal retirement benefit of 80% of average final compensation.
5. Eligibility to participate in the DROP plan, with the Group One restored member to select an entry date on or after the day the member attained (or attains) age 50 or completed (or completes) 22 years of continuous service, subject to the existing limitation of 30 years of service with the city. Any member who attained age 50 or completed 22 years of continuous service before February 20, 2019 and who was not already participating in the reformed planned retirement benefit before February 20, 2019, who wants to participate retroactively in the DROP plan, must submit his/her irrevocable written election/decision within 60 days after February 20, 2019 to participate retroactively in the DROP plan starting on or after the date the member attained age 50 or 22 years of continuous service. Any member who attained age 50 or completed 22 years of continuous service before February 20, 2019 and who was already participating in the reformed planned retirement before February 20, 2019 and who wants to change from the reformed planned retirement benefit to the DROP plan must submit his/her irrevocable written election/decision within 60 days after February 20, 2019 to change retroactively his/her participation to the DROP plan starting on or after the date the member attained age 50 or 22 years of continuous service. No member shall receive any benefits from both the DROP and the reformed planned retirement benefit.
6. Group One restored members with ten or more years of continuous service shall be eligible to receive a vested benefit commencing upon attainment of age 50.
(b) Group Two restored members. Effective October 1, 2020, the following pension benefits in effect on September 30, 2011 will be restored to Group Two restored members as specifically provided in the following divisions.
1. A 3% multiplier for the first 20 years of continuous service, a 4% multiplier for the twenty-first year of continuous service, and upon completion of 22 years of continuous service, an accrued benefit of 80% of average final compensation.
2. Group Two restored members employed on February 20, 2019 who do not participate in the DROP plan shall receive a 2% annual increase in benefits commencing three years after the date retirement benefits begin. Group Two restored members employed on February 20, 2019 who participate in the DROP plan shall receive a 2% annual increase in benefits commencing upon the later of (i) separation of employment and (ii) three years after the member entered the DROP plan.
3. A maximum normal retirement benefit of 80% of average final compensation.
4. Eligibility to participate in the DROP plan, with the Group Two restored member to select an entry date on or after the day the member attained or attains age 50 or completed or completes 22 years of continuous service, subject to the existing limitation of 30 years of service with the city. Upon reaching a normal retirement date, a Group Two member may elect to participate in the reformed planned retirement benefit as an alternative to choosing DROP plan participation, but cannot participate in both. The member's decision shall be irrevocable.
5. Group Two restored members with ten or more years of continuous service shall be eligible to receive a vested benefit commencing upon attainment of age 50.
(c) Group Three members. Effective October 1, 2022, the following pension benefits will apply to Group Three members as specifically provided in the following divisions.
1. Maintain the 3% multiplier for the first 21 years of continuous service, but allow Group Three members to retire upon completion of 22 years of creditable service at an accrued benefit of 75% of their average final compensation.
2. Group Three restored members employed who do not participate in the DROP plan shall receive a 2.5% annual increase in benefits commencing three years after the date retirement benefits begin and continuing every other year thereafter. Group Three restored members who participate in the DROP plan shall receive a 2.5% annual increase in benefits commencing upon the later of (i) separation of employment and (ii) three years after the member entered the DROP plan and continuing every other year thereafter.
3. A maximum normal retirement benefit of 75% of average final compensation.
4. Increase the maximum participation period for Group Three members in the reformed planned retirement benefit from five years to eight years at any time upon attainment of normal retirement date as defined in division (A), subject to the other existing limitation of 30 years of service with the city.
5. Eligibility to participate in the DROP plan, with the Group Three restored member to select an entry date on or after the day the member attained or attains age 55 with 10 years of service or completed or completes 22 years of continuous service, subject to the existing limitation of 30 years of service with the city. Upon reaching a normal retirement date, a Group Three member may elect to participate in the reformed planned retirement benefit as an alternative to choosing DROP plan participation, but cannot participate in both. The member's decision shall be irrevocable.
(d) Earnings in the DROP plan account of all members hired on or before September 30, 2011 shall be one of the following options: (1) the variable rate of return, which for any month shall be the actual net rate of investment gain or investment loss on the retirement system's assets for the month, determined as of the last day of the month, reduced in the event of a net investment gain or increased in the event of a net investment loss by an administrative fee determined by the Board; or (2) 6% per year, minus administrative costs; provided, however, if plan earnings exceed 6% per year, earnings in excess of 6% per year and not in excess of 12% per year shall offset the city's cost of maintaining the DROP plan program, and plan earnings in excess of 12% per year shall be equally divided between the DROP participant and the city.
(e) Increase the employee contribution rate for all Group One restored members, Group Two restored members, and Group Three members to 9.5%, effective with the first full pay period that starts on or after February 20, 2019. Upon entry into the DROP plan, Group One restored members and Group Two restored members shall cease making employee contributions. Upon entry into the reformed planned retirement benefit, Group Three members shall contribute either the employee's contribution rate as provided elsewhere in this subchapter or 0.5% of the member's earnings until termination of employment.
(f) Allow in-service distributions to retired police officers who are rehired on a part-time basis, as permitted by the Internal Revenue Code and Treasury Regulations. In such event, the re-hired part-time police officer will not earn additional service credit in the plan but will continue to be paid the member's normal retirement benefit.
(g) Anything to the contrary herein notwithstanding, a member's accrual rate shall not be less than 2% per year of continuous service.
(2) Duration, survivor, benefits. A member retiring hereunder on the member’s normal retirement date shall receive a monthly benefit which shall commence with the member’s normal retirement date and be continued thereafter during the member’s lifetime as follows:
(a) Member is unmarried at time of retirement. If the member is not married on the member's retirement date and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid either to the beneficiary (or beneficiaries) as designated by the member, or, if all beneficiaries are deceased or if no beneficiaries are designated by the member, to the member's estate.
(b) Member is married at time of retirement and member's spouse is sole beneficiary.
1. If the member is married on the member's retirement date, the member's spouse is the sole beneficiary, and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid either to the members spouse, if alive, or to the member's estate. If the member's spouse is alive and unmarried after receipt of the 120th payment, then the monthly payment to the member's spouse shall be reduced by 50% until the earlier of either the spouse's death or remarriage.
2. If the member is married on the member's retirement date, the member's spouse is the sole beneficiary, and the member dies after receiving 120 payments, then the member's spouse, if alive, shall receive a monthly payment equal to 50% of the member's monthly payment until the earlier of either the spouse's death or remarriage.
(c) Member is married at time of retirement and member's spouse is not a designated beneficiary. If the member is married on the member's retirement date, the member's spouse is not a designated beneficiary, and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid to the member's beneficiary (or beneficiaries) pro-rata as designated by the member, or, if all beneficiaries are deceased or if no beneficiaries are designated by the member, to the member's estate.
(d) Member is married at time of retirement and member designates multiple beneficiaries, including member's spouse. If the member is married on the member's retirement date, the member designates multiple beneficiaries, including the member's spouse, and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid to the member's beneficiaries pro-rata as designated by the member, or, if all beneficiaries are deceased or no beneficiaries are designated by the member, to the member's estate.
(e) Surviving spouse eligibility requirements. No surviving spouse of a deceased member shall be eligible for the 50% survivor's benefit provided in divisions (b)1. or (b)2. above unless the deceased member was married to the surviving spouse on the member's retirement date. A surviving spouse who married the member after the member's retirement date shall be eligible for this 50% survivor's benefit only if the member, during his or her retirement, designated said spouse as sole beneficiary pursuant to § 33.127(C).
(C) Disability.
(1) Service-incurred. Effective October 1, 2000, any member who receives a medically substantiated service-connected injury, disease or disability, as determined by the medical board, which injury, disease or disability permanently incapacitates him or her, physically or mentally, from his or her regular and continuous duties as a Police Officer, shall receive a monthly benefit equal to the greater of his or her accrued benefit on the date of disability, based on the applicable benefit rate set forth in subdivision (B)(1) of § 33.128, or 50% of his or her earnings in effect on the date of disability. Such benefit shall commence on the 91st day following the date of disability and shall continue until the earlier of death or recovery from disability. In the event of recovery prior to the otherwise normal retirement date, credit for service during the period of disability shall be granted for purposes of subsequent retirement benefits.
(a) Member is unmarried at time of disability retirement. If the member is not married on the member's disability retirement date and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid either to the beneficiary (or beneficiaries) as designated by the member, or, if all beneficiaries are deceased or if no beneficiaries are designated by the member, to the member's estate.
(b) Member is married at time of disability retirement and member's spouse is sole beneficiary.
1. If the member is married on the member's disability retirement date, the member's spouse is the sole beneficiary, and the member dies after disability retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid either to the member's spouse, if alive, or to the member's estate. If the member's spouse is alive and unmarried after receipt of the 120th payment, then the monthly payment to the member's spouse shall be reduced by 50% until the earlier of either the spouse's death or remarriage.
2. If the member is married on the member's disability retirement date, the member's spouse is the sole beneficiary, and the member dies after receiving 120 payments, then the member's spouse, if alive, shall receive a monthly payment equal to 50% of the member's monthly payment until the earlier of either the spouse's death or remarriage.
(c) Member is married at time of disability retirement and member's spouse is not a designated beneficiary. If the member is married on the member's disability retirement date, the member's spouse is not a designated beneficiary, and the member dies after disability retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid to the member's beneficiary (or beneficiaries) pro-rata as designated by the member, or, if all beneficiaries are deceased or if no beneficiaries are designated by the member, to the member's estate.
(d) Member is married at time of retirement and member designates multiple beneficiaries, including member's spouse. If the member is married on the member's disability retirement date, the member designates multiple beneficiaries, including the member's spouse, and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid to the member's beneficiaries pro-rata as designated by the member, or, if all beneficiaries are deceased or no beneficiaries are designated by the member, to the member's estate.
(e) Surviving spouse eligibility requirements. No surviving spouse of a deceased member shall be eligible for the 50% survivor's benefit provided in divisions (b)1. or (b)2. above unless the deceased member was married to the surviving spouse on the member's disability retirement date. A surviving spouse who married the member after the member's retirement date shall be eligible for this 50% survivor's benefit only if the member, during his or her disability retirement, designated said spouse as sole beneficiary pursuant to § 33.127(C).
(2) Non-service incurred. Effective October 1, 2000, any member with five or more years of continuous service who receives a non-service incurred injury, illness, disease or disability, and which illness, injury, disease or disability permanently incapacitates him or her physically or mentally from his or her regular and continuous duty as a Police Officer, shall receive from the fund in equal monthly installments an amount equal to 2 ½% of his or her average monthly earnings for each year of continuous service. Until normal retirement date, death or recovery from disability, whichever shall first occur, the amount of such monthly disability benefit shall in no event be less than 25% of the member's earnings in effect on date of disability. Commencing with normal retirement date, the benefit shall be computed as a normal retirement benefit, except that continuous service shall include all years and completed months during the disability period. The benefit shall commence on the 91st day following the date of disability.
(a) Member is unmarried at time of disability retirement. If the member is not married on the members disability retirement date and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid either to the beneficiary (or beneficiaries) as designated by the member, or, if all beneficiaries are deceased or if no beneficiaries are designated by the member, to the members estate.
(b) Member is married at time of disability retirement and member's spouse is sole beneficiary.
1. If the member is married on the members disability retirement date, the members spouse is the sole beneficiary, and the member dies after disability retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid either to the members spouse, if alive, or to the members estate. If the members spouse is alive and unmarried after receipt of the 120th payment, then the monthly payment to the members spouse shall be reduced by 50% until the earlier of either the spouse's death or remarriage.
2. If the member is married on the members disability retirement date, the members spouse is the sole beneficiary, and the member dies after receiving 120 payments, then the members spouse, if alive, shall receive a monthly payment equal to 50% of the members monthly payment until the earlier of either the spouse's death or remarriage.
(c) Member is married at time of disability retirement and member's spouse is not a designated beneficiary. If the member is married on the members disability retirement date, the members spouse is not a designated beneficiary, and the member dies after disability retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid to the members beneficiary (or beneficiaries) pro-rata as designated by the member, or, if all beneficiaries are deceased or if no beneficiaries are designated by the member, to the members estate.
(d) Member is married at time of retirement and member designates multiple beneficiaries, including member's spouse. If the member is married on the members disability retirement date, the member designates multiple beneficiaries, including the members spouse, and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid to the member's beneficiaries pro-rata as designated by the member, or, if all beneficiaries are deceased or no beneficiaries are designated by the member, to the member's estate.
(e) Surviving spouse eligibility requirements. No surviving spouse of a deceased member shall be eligible for the 50% survivor's benefit provided in divisions (b)1. or (b)2. above unless the deceased member was married to the surviving spouse on the member's disability retirement date. A surviving spouse who married the member after the member's retirement date shall be eligible for this 50% survivor's benefit only if the member, during his or her disability retirement, designated said spouse as sole beneficiary pursuant to § 33.127(C).
(3) Special eligibility for service incurred disability benefit. Upon the application of a member of the head of his department, any member who is not eligible for a regular normal retirement benefit and who becomes totally and permanently incapacitated for duty as the result of a condition or impairment of health caused by tuberculosis, hypertension, heart disease or hardening of the arteries, which condition is not shown to be the result of any accident or condition of employment so as to qualify under subdivision (1) above, may be retired by the Board, provided the Medical Board, after a medical examination of such member, shall certify that such member is totally incapacitated for further performance of duty, that such incapacity is likely to be permanent and that such member should be retired on a service incurred disability benefit. For the purpose of this subdivision, any condition or impairment of health of any member caused by tuberculosis, hypertension, heart disease, or hardening of the arteries, resulting in total or partial disability or death, shall be presumed to be accidental and suffered in line of duty unless the contrary be shown by competent evidence; and any condition or impairment of health caused directly or proximately by exposure, which exposure occurred in the active performance of duty at some definite time or place without willful negligence on the part of the Police Officer, resulting in total or partial disability, shall be presumed to be accidental and suffered in the line of duty; provided however, that such member shall have successfully passed a physical examination upon entering such service, which physical examination, including electrocardiogram, failed to reveal any evidence of such condition.
(4) Payments prior to approval of service incurred disability benefit. Whenever a member becomes disabled due to an injury or injuries received in the line of duty, he shall receive full pay from the city for a period of 90 days. At the end of the 90 day period, if the member is still incapacitated and unable to perform his normal police duties, the City Commission shall either approve full pay for the disabled member for a second 90 day period, or it may recommend that the Board of Trustees retire such disabled member as a service incurred disability retiree. Such retirement shall in any event be subject to the approval of the Medical Board of this retirement system. Under no circumstances will a member be penalized by the city, by using the member's accumulated sick leave, vacation time or holiday leave, for any line of duty injury or condition.
(5) Medical Board - disability. Whenever it becomes necessary for the Board of Trustees to avail itself of the services of physicians, such as in the case of an application for disability retirement, the Board of Trustees shall designate a Medical Board to be composed of three physicians. The Medical Board shall arrange for and pass upon the medical examinations required under the provisions of this subchapter, shall investigate all essential statements or certificates made by or on behalf of a member in connection with an application for disability retirement and shall report in writing to the Board of Trustees its conclusions and recommendations upon all matters referred to it. The payment for such services shall be determined by the Board of Trustees.
(6) Return to active duty from disability retirement. In the event a member who has been retired on a pension on account of permanent and total incapacity regains his health and is found by the Medical Board designated by the Board of Trustees of the system to be in such physical and mental condition as to meet the requirements of the personnel department for service as a Police Officer of the city, the Board shall order his pension discontinued, and he shall be ordered to resume active duty in the city at the same rate of compensation currently in effect for his pay grade. Upon request of the Chief of Police, the Board of Trustees shall review the condition of any member receiving a pension for disability and shall submit to the Chief of Police a report thereon; and if there is substantial evidence that the retired member is capable of performing service acceptable to the city in the Police Department, he shall be ordered to resume active duty and his pension shall be discontinued.
(7) Disability exclusions. No member shall be granted a disability pension upon a showing to the satisfaction of the Board:
(a) That the disability resulted from the use of narcotics, drugs or alcoholic beverages;
(b) That the disability resulted from a member's participation or involvement in riots, insurrection or unlawful assembly; or
(c) That the disability resulted from a member's participation or involvement in the commission of a crime or unlawful act.
(8) "Light Duty" positions for service-incurred disability. In the event a member receives a service connected injury as defined in § 33.128 which renders him or her incapable of performing all the regular duties of a
sworn Police Officer the city will, based upon availability of a vacancy, assign the officer to a "light duty" position. A LIGHT DUTY position is defined as any position within the Police Department which does not require the member to perform all the duties of a Police Officer. If the city makes available a light- duty position, and a member refuses to perform, said member shall be ineligible for either continued employment or retirement benefits.
(D) Pre-retirement death.
(1) Service-related death. Effective October 1, 2008, if a member who is killed or dies as a direct result of an occurrence arising in the performance of service dies prior to retirement, his or her beneficiary is entitled, until death, to a monthly benefit equal to the greater of the earned benefit or 50% of final average compensation; provided, however, that, if the beneficiary dies before having received such benefit for a period of ten years, the estate of the member is entitled to the same monthly benefit for the balance of such ten-year period. Benefit payments made pursuant to this provision shall not be retroactive, and shall instead begin on July 4, 2024.
(2) Non-service incurred death within less than ten years of service. A death benefit shall be payable on behalf of any member having less than ten years of continuous service who is killed or dies within five years from causes not related to performance of duty. The benefits shall be payable as follows:
(a) If the member is not married at the time of his or her death, his or her beneficiary is entitled, for a period of ten years, to a monthly benefit equal to 25% of the member's earnings at the time of death; provided, however, that, if the beneficiary dies before having received such benefit for a period of ten years, the estate of the member is entitled to the same monthly benefit for the balance of such ten-year period.
(b) If the member is not married at the time of his or her death, the member has surviving children, and the member fails to designate a beneficiary, then a monthly benefit equal to 25% of the member's earnings at the time of death shall be paid to the member's surviving children for a period of ten years or until the youngest child reaches the age of 18 years, whichever is later. If the monthly benefit to the surviving children ceases before benefit payments have been made for a total of ten years, the estate of the member is entitled to the same monthly benefit for the balance of such ten-year period.
(c) If the member is not married at the time of his or her death, the member has no surviving children, and the member fails to designate a beneficiary, then a monthly benefit equal to 25% of the member's earnings at the time of death shall be paid to the member's estate for a period of ten years.
(d) If the member is married at the time of his or her death, his or her spouse is entitled, until the earlier of death or remarriage, to a monthly benefit equal to 25% of the member's earnings at the time of death. Upon remarriage or death of the widow(er), the benefits shall be paid to the member's surviving children until the youngest child reaches the age of 18 years. If the monthly benefit to the widow(er) or surviving children ceases before benefit payments have been made for a total of ten years, the estate of the member is entitled to the same monthly benefit for the balance of such ten-year period.
(3) For the purpose of benefits under this division (D), the date of death of any member shall be established as the end of the calendar month in which such member dies.
(E) Deferred retirement option plan ("DROP" plan). A DROP plan is to be created and administered by the Board of Trustees of the Police Officer's Retirement System at no cost and with no liability to the city. Group One restored members and Group Two restored members who elect to enter the DROP plan shall have the option to receive one of the following:
(1) The variable rate of return, which for any month shall be the actual net rate of investment gain or investment loss on the retirement system's assets for the month, determined as of the last day of the month, reduced in the event of a net investment gain or increased in the event of a net investment loss by an administrative fee determined by the Board; or
(2) Six percent per year, minus administrative costs; provided, however, if plan earnings exceed 6% per year, earnings in excess of 6% per year and not in excess of 12% per year shall offset the city's cost of maintaining the DROP plan program, and plan earnings in excess of 12% per year shall be equally divided between the DROP participant and the city.
The maximum period of participation in the DROP plan for members who enter the DROP plan shall be the lesser of eight years or that period of participation in the DROP plan that would result in a total of 30 years of employment with the city. The city employment of each member who elects to participate in the DROP plan after June 7, 2006, shall terminate not later than the end of his or her maximum period of participation in the DROP plan.
(F) Planned retirement benefit; reformed planned retirement benefit.
(1) There is hereby created a benefit to be known as the planned retirement benefit. The planned retirement benefit, as described below, will be retroactive to October 1, 2011, but any member who retires or enters the DROP prior to July 17, 2013, will not be eligible for this benefit. Effective September 16, 2015, there is hereby created a benefit to be known as the reformed planned retirement benefit.
(2) For Group Three members, in order to be eligible for the planned retirement benefit, a member must submit a written election, on a form created for this purpose, declaring the member's intent to participate in the planned retirement benefit at any time on or after reaching the member's normal retirement date, as defined in § 33.128(A). Effective September 16, 2015, in order to be eligible for the reformed planned retirement benefit, a member must submit a written election, on a form created for this purpose, declaring the member’s intent to participate in the reformed planned retirement benefit at any time on or after reaching the member's normal retirement date, as defined in § 33.128(A). The form will identify the maximum number of years the member may participate in the planned retirement benefit and the member's latest employment termination date based on the maximum number of years identified. The form to participate in the reformed planned retirement benefit will also require the member to make an irrevocable election of one of the following two options:
(a) During the period of participation in the reformed planned retirement benefit, contribution at the member’s contribution rate as established in this subchapter until termination of employment, and upon termination, election of one of the three options regarding how the member wishes to receive the reformed planned retirement benefit earned (identical to the three options that are provided for the planned retirement benefit below); or
(b) During the period of participation in the reformed planned retirement benefit, contribution equal to 0.5% of the member’s earnings until termination of employment, and upon termination, taking of a lump sum that would be valued based on the number of years the member worked after electing to participate in the planned retirement benefit, reformed planned retirement benefit, or combination of both (or the number of years for which the member elects to receive benefits under division (F)(3) below).
(3) A member who elects to participate in the planned retirement benefit or the reformed planned retirement benefit shall not exceed 30 years of service with the city, including any time participating in the planned retirement benefit and/or the reformed planned retirement benefit. A member may terminate employment any time prior to reaching the earlier of the maximum participation period for the planned retirement benefit and/or the reformed planned retirement benefit, as noted below, or 30 years of service with the city. A Group Three member may participate in the planned retirement benefit, the reformed planned retirement benefit, or a combination of both, for a maximum of eight years. A member covered by this division (F)(3) who reaches the member’s normal retirement date but not more than 30 years of service with the city may, upon termination of employment, elect to receive benefits under the planned retirement benefit, the reformed planned retirement benefit, or a combination of both, for a period of not more than eight years.
(4) (a) When a member who has participated in the planned retirement benefit, but has not participated in the reformed planned retirement benefit, terminates employment, the member shall elect how he or she wishes to receive the planned retirement benefit earned. The member may choose to take (i) a maximum lump sum payment that would be valued based on the number of years the member worked after electing to participate in the planned retirement benefit (or the number of years for which the member elects to receive benefits under division (F)(3) above); (ii) a larger final pension annuity payment (meaning a larger annuity than that earned prior to electing to participate in the planned retirement benefit) based on the number of years the member worked after electing to participate in the planned retirement benefit (or the number of years for which the member elects to receive benefits under division (F)(3) above): or (iii) any combination of a lump sum payment and larger annuity by dividing the years worked after electing to participate in the planned retirement benefit (or the number of years for which the member elects to receive benefits under division (F)(3) above) between a lump sum payment and larger annuity payments. Any lump sum payment must be paid out to the member at termination (i.e., it cannot be left in the pension plan).
(b) Upon termination of employment, a member who, at the beginning of his or her period of commencement in the reformed planned retirement benefit, made the irrevocable election to take his or her benefit in a lump sum upon termination will be allowed to leave the lump sum in the pension plan. The pension plan’s actual investment rates of return (whether positive or negative) shall be applied to the lump sum for as long as any portion thereof remains in the pension plan. For as long as any portion of the lump sum remains in the pension plan, the member shall pay a fee, in an amount to be determined by the Board, for the administrative cost of managing the lump sum, or portion thereof, that remains in the plan.
(5) While participating in the planned retirement benefit, a member shall continue making his/her applicable employee contributions, as provided in the pension plan, until termination of employment. While participating in the reformed planned retirement benefit, a member shall make his or her applicable employee contributions, as provided in the pension plan, until termination of employment.
(6) Any member who has reached his or her normal retirement date, and has submitted the written election form to participate in the planned retirement benefit or the reformed planned retirement benefit, shall maintain the right to participate in the planned retirement benefit or the reformed planned retirement benefit up to the date on which the maximum period applicable to the member has been reached or employment has terminated pursuant to the terms of the planned retirement benefit or the reformed planned retirement benefit, as provided in this section, and no amendment to the pension plan may alter this right.
(7) For any member who reached his/her normal retirement date between October 1, 2011, and July 17, 2013, the time such member worked between his/her normal retirement date (on or after October 1, 2011) and the date the member submits the planned retirement benefit election form may be included in the employee's planned retirement benefit participation period, provided the member shall not exceed the maximum period of participation set forth above.
(8) The lump sum payment, if elected, shall be calculated based upon the monthly values of the member's final pension annuity benefit determined using the employee's creditable service, average final compensation, and multiplier, as provided in the pension plan as of the beginning of the elected planned retirement benefit participation period or the elected reformed planned retirement benefit participation period, plus earnings on such amounts as provided in division (F)(9) below, subject to the limitations under division (F)(10) below.
(9) Investment earnings applicable to any lump sum payment shall be calculated in arrears using the net investment rate earned by the pension fund on its net assets for each month of creditable service worked during the planned retirement benefit participation period or reformed planned retirement benefit participation period, and applied to the prior pension annuity balance including all prior months of creditable service, including prior monthly earnings. The investment earnings shall be compounded monthly to determine the amount of investment earnings to be credited during each year of the planned retirement benefit participation period or reformed planned retirement benefit participation period. The aggregate value of the monthly investment earnings calculations will determine the amount of investment earnings to be credited for the planned retirement benefit participation period or reformed planned retirement benefit participation period. The investment earnings credited to said member will be net of the investment earnings retained by the pension fund per division (F)(10) below.
(10) The procedures established in this paragraph shall apply to the planned retirement benefit, but not to the reformed planned retirement benefit. With regard to any plan earnings calculated into the member's lump sum payment, there shall be no losses counted in those years for which the plan return is negative, and no investment earnings will be credited for such negative years. In any year for which plan earnings are greater than 4% (applied monthly at the rate of 0.327%), the next 2% (applied monthly at the rate of 0.165%) of plan earnings (i.e., the annual earnings between 4% and 6%) shall be excluded from the member's lump sum payment and retained by the pension plan to offset unfunded liabilities. All earnings in excess of 6% will be split equally between the member and the plan until the plan is 90% funded, at which time the split of earnings in excess of 6% will end and earnings in excess of 6% will be kept by the member (but earnings between 4% and 6% will continue to remain in the plan to offset unfunded liabilities). The split of earnings in excess of 6% will resume if the funding of the plan drops below 90%.
(11) If an eligible member who is participating in the planned retirement benefit or reformed planned retirement benefit dies during the member’s planned retirement benefit participation period or reformed planned retirement benefit participation period, then the member's designated beneficiary or, if there is no designated beneficiary, then the member's estate shall make the election provided above with respect to the planned retirement benefits earned or reformed planned retirement benefits earned.
(Ord. O-91-82, passed 11-20-91; Am. Ord. O-2001-13, passed 5-2- 01; Am. Ord. O-2002-33, passed 9-18-02; Am. Ord. O-2007-15, passed 6-20-07; Am. Ord. O-2009- 28, passed 9-16-09; Am. Ord. O- 2009-29, passed 9-16-09; Am. Ord. O-2011-27, passed 9-7-11; Am. Ord. O-2013-18, passed 7-17-13; Am. Ord. O-2015-22, passed 10-7-15; Am. Ord. O-2019-02, passed 2-20-19; Am. Ord. O-2023-03, passed 4-4-23; Am. Ord. O-2024-12, passed 7-3-24)
Each member up to the time of actual retirement, who is entitled to a regular normal retirement benefit shall have the right at any time prior to his or her actual retirement to elect to have such benefit payable by any one of the options hereinafter set forth in lieu of the retirement benefits otherwise provided herein, and revoke any such elections and make a new election at any time prior to actual retirement. The value of optional retirement benefits shall be actuarially equivalent to the value of benefits otherwise payable. The member shall make such an election by written request to the Board and such an election shall be subject to the approval of the Board.
(A) Option 1: Joint and Last Survivor Option. A retiring member may elect to receive a decreased retirement benefit during his lifetime and have such decreased retirement benefit (or a designated fraction thereof) continued after his death to and during the lifetime of a person other than his spouse. The election of Option 1 shall be null and void if the designated contingent annuitant dies before the member's retirement. Only a person in the immediate family of the retiring member may be designated as a beneficiary under this option.
(B) Option 2: Other. In lieu of the other optional form enumerated in this section, retirement benefits may be paid in any form approved by the Board so long as actuarial equivalence, as certified by the Board's actuary, with the benefits otherwise payable is maintained, provided, however, no portion of the benefit shall be paid in a lump sum.
(Ord. O-91-82, passed 11-20-91; Am. Ord. O-2007-15, passed 6-20-07)
If a member terminates his or her employment with the Police Department, either voluntarily or by discharge, and is not eligible for any other benefits under this system the member shall be entitled to the following:
(A) With less than ten years of continuous service, a refund of member contributions without interest.
(B) With ten or more years of continuous service:
(1) For Group One restored members and Group Two restored members, under the benefit structure effective prior to October 1, 2011, the pension benefits accrued to the member’s date of termination, payable for the life of the member and commencing upon the member's attainment of age 50, provided the member does not elect to withdraw his member contributions. For Group Three members, the pension benefits accrued to a member’s date of termination, payable for the life of the member and commencing upon the member's attainment of age 55, provided the member does not elect to withdraw the member’s contributions; or
(2) In the member’s discretion, refund of member contributions plus 3% interest compounded annually, in which event no pension benefit shall be payable.
(Ord. O-91-82, passed 11-20-91; Am. Ord. O-2011-27, passed 9-7- 11; Am. Ord. O-2015-22, passed 10-7-15; Am. Ord. O-2019-02, passed 2-20-19)
The fund of the retirement system shall consist of monies derived from the following sources:
(A) There shall be transferred of the pension fund of this system, all monies paid by the city into any other pension and retirement system of the city on account of employees of the Police Department who are eligible for memberships in this system at the effective date of this act and become members according to the terms of this act. The funds so transferred together with the contributions of the transferring members, with interest thereof to the date of transfer, shall be credited against the city's liability for creditable service prior to the effective date of the act for persons who become members of the system created thereby.
(B) After October 1, 1969, the city shall pay into the fund of the system created by this subchapter, in payments not less frequent than quarterly, such amounts as will, together with the monies transferred under the provisions of division (A) of this section, amortize the city's liability for creditable service prior to the effective date of this subchapter for persons who become members of the system created hereby, at a uniform rate over a 40 year period, together with 4% interest on the unpaid balances of such prior service liability.
(C) During each city fiscal year, the city shall pay into the fund of the system created by this act such amounts as are determined to be required in this section, in addition to the personal contributions of the members to fully amortize the liability for pensions incurred during said fiscal year, to be computed on an interest rate as determined from time to time by the Board of Trustees on the advice of the actuary.
(D) Group One restored members, Group Two restored members, and Group Three members shall contribute 9.5%, effective with the first full pay period that starts on or after February 20, 2019. Upon entry into the DROP plan, Group One restored members and Group Two restored members shall cease making employee contributions. Upon entry into the reformed planned retirement benefit Group Three members shall contribute either the employee's contribution rate as provided elsewhere in this subchapter or 0.5% of the member's earnings until termination of employment.
(1) All computations of liability in connection with the system created hereby shall be based on such tables and rates as are approved by the Board of Trustees. The Board shall designate an actuary who shall recommend such tables and rates for adoption by the Board. The actuary designated by the Board, on the basis of such tables and rates shall determine the amounts to be paid into the system by the city, as provided for herein. There shall be a complete actuarial valuation prepared by the actuary at least every three years, and the city shall make such adjustments in its contributions as shall be shown to be required by such actuarial valuation. The money required to meet all obligations of this system over and above the personal contributions forthcoming from members, is herebydeclared to be the liability and obligation of the city. Therefore, the City Commission shall budget annually, in the manner provided by law, to produce the amounts required to be contributed by said city to this system.
(2) Nothing in this subchapter shall be construed to prevent the city administration from appropriating monies from the General Fund or from any special funds of the city, for the purpose of creating or adding to the Pension Fund created by this subchapter, and the city shall have the right to appropriate monies from the General Fund or any Special Fund of the city, and furthermore, the city shall have the right and power to designate other sources of revenue for the Pension Fund created by this subchapter. No monies raised by taxation or otherwise provided for said Pension Fund shall be used other than for the purpose of this subchapter.
(Ord. O-91-82, passed 11-20-91; Am. Ord. O-2001-13, passed 5-2- 01; Am. Ord. O-2007-15, passed 6- 20-07; Am. Ord. O-2009-28, passed 9-16-09; Am. Ord. O-2009-29, passed 9-16-09; Am. Ord. O-2011- 27, passed 9-7-11; Am. Ord. O- 2013-18, passed 7-17-13; Am. Ord. O-2015-22, passed 10-7-15; Am. Ord. O-2019-02, passed 2-20-19)
The general administration and responsibility for the proper operation of the system and for making effective the provisions of this subchapter are hereby vested in a Board of Trustees consisting of seven members, as follows:
(A) One representative appointed by the Mayor of the city; one representative appointed by the City Commission; and five members of the Police Department, including DROP participants, who shall be elected by a per capita vote of all members of the Police Department who come within the purview of this subchapter. The Chief of Police shall be a nonvoting, ex-officio member of the Board. All qualified members entitled to vote shall be notified in person or by mail five days in advance of said election. Elections shall be held to replace the Trustees whose term of office expires at that time and the elected Trustees shall begin their term of office immediately, said term of office being two years, taking effect the first Monday after the election to office. The Board of Trustees must meet and organize and elect one of their members as Chairperson and one of their members as Secretary within ten days after being elected and duly qualified.
(B) If any vacancy occurs in the office of Trustee, the vacancy shall be filled for the unexpired term in the same manner as the office was previously filled.
(C) Trustees may be reimbursed for all necessary expenses which they may actually expend through the services of the Board.
(D) Each Trustee shall, within ten days after appointment or election, take an oath of office before the City Clerk, that so far as it devolves upon the Trustee, he or she will diligently and honestly administer the affairs of the Board and that he will not knowingly violate or willingly permit to be violated, any provisions of the law applicable to the retirement system. Such oath shall be subscribed by the member making it and certified by the Clerk and filed in the Clerk’s office.
(E) Each Trustee shall be entitled to one vote on the Board. Four votes shall be necessary for a decision by the Trustees at any meeting of the Board. The Chairperson of the Board of Trustees shall have the right to one vote only.
(F) Subject to the limitations of this subchapter, the Board of Trustees shall from time to time establish rules and regulations for the administration of the funds created by this subchapter and for the transaction of its business, including provisions for the compulsory attendance of its members which shall have the force of law.
(G) It shall engage such actuarial and other services as shall be required to transact the business of the system. The compensation of all persons engaged by the Board necessary for the operation of the retirement system shall be paid at such rates and in such amounts as the Board of Trustees shall agree but in no case shall the expenditures for such services or operations exceed 3% of the maximum of the fund each fiscal year. All expenditures shall be authorized and disbursed by the Board of Trustees. The Secretary shall be bonded for $500. The premium of said bond shall be paid out of this fund.
(H) The Chief of Police of the city shall assign to the Board of Trustees, sufficient personnel, office space, equipment and stationery, at Police Headquarters to keep and maintain all records and transactions to permit the Board of Trustees to operate efficiently and exercise their powers and perform their duties.
(I) Each year on or before March 15, the Board of Trustees must submit to the Division of Retirement of the Department of Management Services in order for the fund to receive a share of the State Funds for the then current calendar year an annual report as required by F.S. § 185.221. The pension benefit improvements for ten years certain and life thereafter, normal retirement after 22 years of service, upgrade of benefits to 80% after 22 years, a maximum of 8 years' participation in the DROP plan, and the right to purchase additional benefits up to 8% of average monthly earnings contained in § 33.128 shall be deemed "minimum benefits" or "extra benefits," as those terms are used in F.S. Chapter 185, and the Board of Trustees shall report these improvements as "qualifying benefit improvements," on the "Actuarial Confirmation of the Use of State Moneys" page of the annual reports for the fiscal years ending September 30, 2006 and thereafter.
(J) The Board of Trustees shall publish annually in the city's budget report, a report for the preceding year showing a valuation of the assets and liabilities of the funds provided for by this subchapter as certified by the actuary, and a statement as to the accumulated cash and securities of the funds as certified by the City Comptroller and shall be set forth such other facts, recommendations and data as may be in advancement of knowledge concerning employee pensions.
(K) Any elected Trustee who neglects the duties of office shall be subject to recall by the members of the system. Such recall shall be conducted as follows:
(1) A petition containing the signatures of a majority of the members of the system and stating the name of the Trustee or Trustees and the specific allegations to warrant their recall shall be filed with the Chairperson of the Board.
(2) Trustee or Trustees against whom a petition of recall has been filed shall have 15 days in which to file a written rebuttal to any charges contained in the petition with the Chairperson of the Board.
(3) The Chairperson of the Board shall set an election by the members of the system 30 days subsequent to the filing by the Trustee complained against of the Trustee’s response or the conclusion of the 15-day period whichever occurs first, said election to be held by secret ballot at the offices of the City Clerk for a four day period to facilitate the ability of the members of the system to cast their ballots.
(4) When two-thirds of the members of the system vote to recall a Trustee, the seat shall be immediately declared vacant, and the recall of the Trustee or Trustees shall no longer serve.
(L) The Board of Trustees shall have the power to examine facts upon which any pensions are granted under this subchapter, and to ascertain if any pension has been granted erroneously, fraudulently, or illegally for any reason. Said Board shall also be empowered to purge the pension rolls of any pensions to the city Police Officers if same are found to be erroneous, fraudulent or illegal for any reason, and to reclassify any pensioner who, under this subchapter, is erroneously, improperly or illegally classified.
(Ord. O-91-82, passed 11-20-91; Am. Ord. O-2001-13, passed 5-2- 01; Am. Ord. O-2007-15, passed 6- 20-07; Am. Ord. O-2009-29, passed 9-16-09; Am. Ord. O-2019-02, passed 2-20-19)
(A) Any member of this system created by this subchapter who enlists, or any such member who is involuntarily called into active service of the military with any branch of the Army of the United States, the United States Navy, United States Air Force, the United States Marine Corps, or the United States Coast Guard, shall be entitled to preserve all rights and privileges under this subchapter. However, any such member who becomes disabled or dies while in the military service shall not be entitled to service-incurred disability or service incurred death benefits, except as may otherwise be required by federal law to maintain qualified status under the Internal Revenue Code.
(B) The period of active military service shall, for the purposes of computation to determine whether such member may be entitled to retirement under this subchapter, be deemed continuous service in the Police Department of the city and shall be credited as part of such actual service; provided that any military service served after one year from the date hostilities cease, shall not be considered creditable pension time unless the member satisfactorily proves to the Board of Trustees that such military service was compulsory and not voluntary on his part; and provided further, that credit for military service during time other than when the United States is at war or in a state of national emergency shall be limited to a maximum of five years.
(C) A member of the Police Department shall be entitled to up to five years credit for service in the armed forces under certain conditions:
(1) He or she must have been in the active employ of the city as a member of the Department prior to such service and leaves a position, other than a temporary position, for the purpose of voluntary or involuntary service in the armed forces.
(2) He or she is entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act.
(3) He or she returns to his or her employment as a Police Officer within one year after he or she is released from active duty in the military service. He or she shall be reinstated by the Police Department of the city to such position or a position of like seniority, status and pay, and shall not be penalized in any way for such military service.
(Ord. O-91-82, passed 11-20-91; Am. Ord. O-2007-15, passed 6-20-07; Am. Ord. O-2009-29, passed 9-16-09)
Upon termination of the plan for any reason, or upon written notice to the Board of Trustees that contributions thereunder are being permanently discontinued, the fund shall be apportioned and distributed in accordance with the following procedures:
(A) The Board of Trustees shall determine the date of distribution and the asset value to be distributed after taking into account the expenses of such distribution.
(B) The Board of Trustees shall determine the method of distribution of the asset value, that is, whether distribution shall be by payment in cash, the maintenance of another or substituted trust fund, by the purchase of insured annuities or otherwise, for each member entitled to benefits under the plan, as specified in division (C).
(C) The Board of Trustees shall apportion the asset value as of the date of termination in the manner set forth below, on the basis that the amount required to provide any given retirement income shall mean the actuarially computed single-sum value of such retirement income; except that if the method of distribution determined under division (B) involves the purchase of an insured annuity, the amount required to provide the given retirement income shall mean the single premium payable for such annuity.
(1) Apportionment shall first be made in respect of each retired member receiving a retirement income hereunder on such date, each person receiving a retirement income on such date on account of a retired (but since deceased) member and each member who has, by such date, become eligible for normal retirement but has not yet retired, in the amount required to provide such retirement income, provided that if such asset value be less than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such asset value.
(2) If there be any asset value remaining after the apportionment under subdivision (1), apportionment shall next be made in respect of each member in the service of the city on such date who has completed at least ten years of continuous service and who has contributed to the municipal Police Officers' Retirement Trust Fund for at least ten years and who is not entitled to an apportionment under subdivision (1), in the amount required to provide the actuarial equivalent of the accrued normal retirement income, based on the member's continuous service and earnings to such date, and each former member then entitled to a benefit under the provisions of this subchapter, who has not, by such date, reached his normal retirement date, in the amount required to provide the actuarial equivalent of the accrued normal retirement income to which he is entitled under this subchapter, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value.
(3) If there be any asset value after the apportionments under subdivisions (1) and (2), apportionment shall lastly be made in respect to each member in the service of the city on such date who is not entitled to an apportionment under subdivisions (1) and (2) in the amount equal to his total contributions to the plan to date of termination; provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value.
(4) In the event that there be asset value remaining after full apportionment specified in subdivisions (1) through (3), such excess shall be returned to the city, less return of state's contributions to the state, provided that, if the excess is less than the total contributions made by the city and the state to date of termination of the plan, such excess shall be divided proportionately to the total contributions made by the city and the state.
(D) Board of Trustees shall distribute, in accordance with the manner of distribution determined under division (B), the amounts apportioned under division (C).
(Ord. O-91-82, passed 11-20-91)
(A) Money shall be withdrawn from the Pension Fund created by this subchapter only upon warrants executed or authorized by a majority of the Board of trustees. The Board shall have exclusive charge of the investment of any assets in accordance with the written investment policy adopted by the Board pursuant to division (B) below. Board members must discharge their duties with respect to the plan solely in the interest of the participants and beneficiaries and (i) for the exclusive purpose of providing benefits to participants and their beneficiaries and defraying reasonable expenses of administering the plan; (ii) with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; and (iii) by diversifying the investments of the plan so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.
(B) The Board shall adopt and periodically update a written investment policy in accordance with F.S. § 112.661, as such statute may be amended in the future. Within the limitations of the foregoing standards and investment policy, the Board is authorized to acquire and retain in the fund every kind of investment, specifically including, but not limited to, stocks, bonds, securities, debentures, real estate, mutual funds, trusts, and other obligations which persons of prudence, discretion and intelligence acquire or retain for their own account.
(C) The intent of subsections (A) and (B) above is to exclude any and all restrictions on investments otherwise imposed by F.S. Ch.185, but only if subsections (A) and (B), with the exclusion of such restrictions, are in compliance with the provisions of F.S. Ch.185. If subsections (A) and (B), with the exclusion of the restrictions imposed by F.S.Ch.185, are deemed not to be in compliance with F.S. Ch.185, then such restrictions shall be incorporated herein in their entirety.
(D) In carrying out its investment duties, the board shall engage such custodial, investment management, and other professional consultants as the board deems necessary and prudent. The city or such entity as may be designated by the Board shall have custody of and responsibility for any funds, stocks, bonds or other indebtedness; and such custody shall be for the purpose of safekeeping only, without discretion in the city or other entity appointed by the Board regarding propriety of any withdrawal or transfer of such funds, stocks, bonds or of other indebtedness of funds.
(E) Money withdrawn from the fund for investments, or otherwise, on warrants executed or authorized by the Board pursuant to this subchapter and rules and regulations prescribed by the Board of Trustees, shall be by draft. All such drafts shall be consecutively numbered, and be signed by the Chairperson and Secretary manually, or by facsimile, or such administrative function may be delegated so that authorized drafts may be signed by the City Manager for the Chairperson, and by the Director of Finance for the Secretary, manually or by facsimile. All such drafts shall state upon their faces the purpose for which they were drawn.
(Ord. O-91-82, passed 11-20-91; Am. Ord. O-2003-08, passed 5-7- 03; Am. Ord. O-2019-02, passed 2-20-19)
(A) Retirees under Chapter 185 of Florida Statutes or under the Police Pension Fund. Retirement compensation for retired members of the Hollywood Police Department, who retired under the provisions of the Hollywood Police Retirement Trust Fund, empowered by Chapter 185 of the Florida Statutes or under the provisions of the Police Pension Fund, which was in effect immediately prior to this subchapter, shall continue to receive pensions by this fund, which assumes all assets and liabilities of the Hollywood Police Officer's Retirement Trust Fund and the Police Pension Fund. Such pensions shall continue at the same rate as in effect immediately preceding this subchapter, and shall not be reduced or added to as provided by this subchapter.
(B) Legally adopted children. A legally adopted child shall have the same rights as a natural born child or children, but no pension shall be allowed to any stepchild or stepchildren of a deceased member.
(C) No offsets to widow(ers) and children's benefits. The pension payments to widow(ers) and/or children shall not be decreased or reduced due to benefits received by them under any Workers’ Compensation law.
(D) Special duty time. Any Member of the Police Department who is called or notified to report to duty, not on a regular work day or work schedule, shall be deemed to be on duty from the time of notification to report to duty, and should the member sustain injury or death in any manner while in route to Police Headquarters or any special assignment point, such injury or death shall be deemed to have occurred in the line of duty.
(E) Extra work details deemed duty time. Any member of the Police Department who accepts extra work details even though paid by any other person, company or corporation, shall be deemed eligible for death and disability benefits under this plan while on such details, provided such work details have the approval of the Chief of Police or other authorized member of the Police Department.
(F) Pension nonassignable. No pension provided for herein shall be assignable or subject to garnishment for debt or to other legal process, and no pension provided for herein shall be subject to any deductions or assessments by the city, nor shall any benefits hereunder be altered or modified in any respect due to the fact that any member may be the recipient of any benefits from any other pension or pension plan.
(G) Member contributions cease on retirement. Member contributions shall cease upon service or disability retirement.
(H) Minimum benefit, return of member contributions. Whenever any member in the service of the Police Department shall sever employment with the Police Department, either voluntarily, by discharge or by death from any cause, such member or the member’s estate shall be entitled to the return of all monies the member has contributed into this system together with accumulated interest on said sum at the rate of 3% per annum, compounded annually, computed until date of payment to the member, unless at the time of such discharge, voluntary severance or death, such member has qualified under the terms of this subchapter for a pension. In the event a member has qualified for a service retirement or disability pension, the minimum benefit payable to such member, the member’s beneficiary or estate shall in any event be an amount equal to the member’s contributions plus 3% interest.
(I) Continuous service credit.
(1) In computing any benefit based upon service, continuous service shall include all periods of time of actual work for which earnings were received by members in service of the Police Department, and notwithstanding anything to the contrary in this subchapter.
(2) In the event that the Board of Trustees may permit a former member of the system to "buy back" past service, such former member must return his or her withdrawn contributions with interest, as determined by the Board from time to time, not later than 90 days after his or her reemployment.
(J) Military service buy-back. A member may purchase up to a total of four years of credit for military service prior to employment, or prior service as a full-time municipal, county, state, or federal police officer which meets the definition of “police officer” as provided in this plan, or a combination of the two types of service. In the case of prior police service, the member shall certify that no retirement benefit is or will be paid on account of the prior police service. Members purchasing credit for prior service under this section shall pay the full actuarial cost of the credited service as determined by the actuary for the plan. Credited service purchased pursuant to this section shall not count toward a member’s vesting. The Board of Trustees shall provide uniform rules for the administration of this benefit.
(K) Dismissal from department, nonforfeiture of vested benefits. Members entitled to a pension shall not forfeit the same upon dismissal from the department, but shall be retired as herein prescribed.
(L) Gender reference. Reference to the word "his" shall also mean "her" wherever applicable and reference to the word "her" shall also mean "his" whenever applicable.
(M) Annual increase in benefits. Group One restored members and Group Two restored members employed on February 20, 2019 who did not participate in the DROP plan shall receive a 2% annual increase in benefits commencing three years after the date retirement benefits begin. Group One restored members and Group Two restored members employed on February 20, 2019 who participated in the DROP plan shall receive a 2% annual increase in benefits commencing upon the later of (i) separation of employment and (ii) three years after the member entered the DROP plan.
(N) Supplemental pension distribution. There shall be payable to eligible persons a supplemental pension distribution for each fiscal year in which the actual rate of investment return earned on fund assets exceeds the assumed rate of investment return on fund assets. The total amount of the supplemental pension distribution for a particular fiscal year shall be equal to the actuarial present value of future retirement benefits, as calculated on the eligible retirees' portion of the Fund's earnings attributable to assets apportioned to retiree benefit liability, multiplied by the excess (not to exceed 2%) of the actual rate of investment return over the assumed rate of investment return for the fiscal year. The Board of Trustees shall determine who is an eligible person and the specific amount to be paid to each eligible person; provided, however, that only those Group One restored members employed on February 20, 2019 and participating in either the DROP plan or the reformed planned retirement benefit on February 20, 2019 shall be eligible for the supplemental pension distribution.
(O) Use of state funds. Commencing on July 17, 2013, the state funds received by the city pursuant to F.S. Chapter 185 shall be used to offset city contribution requirements. In addition, all funds received by the pension plan prior to that date and held by the pension plan on that date shall be applied to reduce city contributions.
(P) Maximum benefits; tax qualification. No benefit shall be paid from the plan in excess of the maximum benefit permitted under Section 415(b), Internal Revenue Code. The plan shall be administered as a qualified plan under the terms of the Internal Revenue Code.
(Ord. O-91-82, passed 11-20-91; Am. Ord. O-2001-13, passed 5-2-01; Am. Ord. O-2002-33, passed 9-18-02; Am. Ord. O-2007-15, passed 6-20-07; Am. Ord. O-2009-29, passed 9-16-09; Am. Ord. O-2011-27, passed 9-7-11; Am. Ord. O- 2013-18, passed 7-17-13; Am. Ord. O-2019-02, passed 2-20-19; Am. Ord. O-2023-03, passed 4-4-23)
In the event that a city employee changes his or her job status with the city such that he or she is considered a member pursuant to this subchapter, he or she may become a member of the system subject to the following rules:
(A) Date of transfer shall be the date when the change in job status occurs such that he is considered a member pursuant to this subchapter.
(B) A member's total retirement benefits shall consist of a combination of the following:
(1) Benefits payable by the previous plan. The member's accumulated contributions, if any, shall remain funds of the previous plan. The member's retirement benefit payable from the previous plan shall be calculated by using benefit percentage rates and his credited service as of the date of transfer, and the greater of his salary as of the date of his termination of employment or as of the date of transfer. This benefit shall be payable commencing on the member's normal retirement date pursuant to the system. The transferred employee shall not be eligible for any other benefits from the previous plan.
(2) Benefits payable by the system. For purposes of determining eligibility for retirement benefits under the system, the employee's credited service prior to and after the date of transfer shall be included. For purposes of determining the amount of benefits payable under the system, excluding death and disability benefits, only service following the date of transfer shall be included, and, effective June 7, 2006, the maximum amount of service for which the employee shall be credited under the system is that amount of service that would result in total credited service of 22 years under the previous plan and the system. For purposes of determining the amount of any death or disability benefits payable under the system, credited service both prior to and after the date of transfer shall be included, and, effective June 7, 2006, the maximum amount of such service that shall be included is 22 years. Anything to the contrary herein notwithstanding, a member's accrual rate shall not be less than 2% per year of continuous service.
(C) In the event that a city employee who is a member of the system is no longer considered an employee pursuant to this subchapter, the rules regarding his transfer to another retirement plan sponsored by the city shall be as set forth above, provided such other plan has appropriate language to accept transfers on the same basis.
(D) If, prior to the date when this language regarding transferred employees becomes effective, an employee had transferred from one retirement plan sponsored by the city to another and had thereby lost credit under the previous plan for his service prior to the date of transfer, his credited service under the previous plan shall be restored under the following conditions:
(1) The person must be an employee of the city on the date this language becomes effective.
(2) Upon notification, the employee must repay to the previous plan that amount of his contributions that he received from the previous plan due to his transfer to another plan within the city. The employee will have 60 days to exercise this option. He will be given one year to repurchase every two years of prior service.
(3) All previous contributions must be repaid prior to the employee's retirement to be eligible for any benefit under the previous plan.
(4) Upon satisfaction of these conditions, the employee will be credited with service in each plan as indicated in division (B) hereof.
(E) Effective October 1, 2009, the provisions of this section shall no longer apply to benefits with the General Employees Retirement Plan.
(Ord. O-91-82, passed 11-20-91; Am. Ord. O-2007-15, passed 6-20-07; Am. Ord. O-2009-29, passed 9-16-09)
This subchapter, including this section, may only be amended, in whole or in part, or repealed by the City Commission upon approval of any such amendment or repeal by:
(A) A 5/7ths vote of the City Commission and 50% plus one of the active members of the City Police Officers' Retirement System; or
(B) A majority vote of those qualified electors of the city voting in a referendum election called for such purpose by the City Commission and held in accordance with the provisions of law relating to elections currently in force in the city, or held in conjunction with a primary, general, or other special election held in the city.
(Ord. O-91-82, passed 11-20-91; Am. Ord. 0-2000-14, passed 3-22-00)
SOCIAL SECURITY
(A) It is hereby declared to be the policy and purpose of the city to extend, effective as of October 1, 1961, to the employees and officials thereof, not excluded by law, and whether employed in connection with a governmental or proprietary function, the benefits of the system of old age and survivor's insurance as authorized by the Federal Social Security Act and amendments thereto, including Public Law 734 of the 81st Congress, and by F.S. Chapter 660, and to cover by such plan all services which constitute employment as defined in F.S. § 660.02, performed in the employ of the city by employees thereof.
(B) In pursuance of such policy, and for that purpose, the city shall take such action as may be required by applicable state and federal laws or regulations.
('72 Code, § 28-1) (Ord. 971, passed 10-2-51)
Withholdings from salaries, wages or other compensation of employees and officials for the purpose provided in § 33.150, are hereby authorized to be made, and shall be made, in the amount and at such times as may be required by applicable state or federal laws or regulations, and shall be paid over to the state agency designated by such laws or regulations to receive such amounts.
('72 Code, § 28-3) (Ord. 971, passed 10-2-51)
There shall be appropriated from available funds, derived from the General Fund and utility fund, such amounts, at such times, as may be required to pay promptly the contributions required of the city as employer by applicable state or federal laws or regulations, which shall be paid over to the lawfully designated state agency at the times and in the manner provided by law and regulation.
('72 Code, § 28-4) (Ord. 971, passed 10-2-51)
The City Finance Officer is designated the custodian of all sums withheld from the compensation of officers and employees and of the appropriated funds for the contribution of the city, and the City Finance Officer is hereby made the withholding and reporting agent and charged with the duty of maintaining personnel records for the purposes of this subchapter.
('72 Code, § 28-7) (Ord. 971, passed 10-2-51)
The city does hereby adopt the terms, conditions, requirements, reservations, benefits, privileges, and other conditions thereunto appertaining, of Title II of the Social Security Act as amended by Public Law No. 734, 81st Congress, for and on behalf of all the officers and employees thereof and of its departments and agencies, excepting any official or employee who occupies any position, office or employment not authorized to be covered by applicable state or federal laws or regulations.
('72 Code, § 28-6) (Ord. 971, passed 10-2-51)
The Mayor, or other Chief Executive Officer, of the city is authorized and directed to execute all necessary agreements and amendments thereto with the chairperson of the Florida Industrial Commission representative, for the purpose of extending the benefits provided for such system of the city as provided in the preceding section, which agreement shall provide for such methods of administration of the plan by the city as are found by the state agency to be necessary for the proper and efficient administration thereof, and shall be effective with respect to services in employments covered by such agreement performed after the September 30, 1951.
('72 Code, § 28-2) (Ord. 971, passed 10-2-51)
The city shall keep such records and make such reports as may be required by applicable state or federal laws or regulations, and shall adhere to the rules and regulations of the state agency for the enforcement of such laws and regulations.
('72 Code, § 28-5) (Ord. 971, passed 10-2-51)
(A) Benefits. It is hereby declared to be the policy and purpose of the city to extend effective as of January 1, 1963, to certain employees and officials thereof in the position of firefighter and not excluded by law nor excepted herein, the benefits of the system of old age and survivor's insurance as authorized by the Federal Social Security Act and amendments thereto, and by F.S. Chapter 660, as amended; and to cover by such plan all of their services which constitute employment as defined in F.S. § 660.02, performed in the employ of this city with no exceptions.
('72 Code, § 28-18)
(B) Eligibility. There shall be included in any agreement entered into under division (C) only services in positions of:
(1) Firefighters who are members of or eligible to be members of the Firemen's Pension Fund and who have, prior to date of federal approval of OASI coverage, filed written election to receive OASI coverage.
(2) Firefighters who, on or after such date of federal approval, become eligible for membership in the above-named retirement system.
('72 Code, § 28-19)
(C) Agreements with state agency; confirmation by employee referendum. The Mayor is hereby authorized and directed to execute all necessary agreements and amendments thereto with the state agency, and to request the governor to authorize an employee referendum for the purpose of extending the benefits provided by such system of old age and survivor's insurance to the employees and officials of the city designated in divisions (A) and (B) above, which agreement shall provide for such methods of administration of the plan by such city as are found by the state agency to be necessary and proper, and, subject to employee referendum, shall be effective with respect to services in employment covered by such agreement performed on and after January 1, 1963.
('72 Code, § 28-20)
(D) Withholding from salaries authorized. Withholdings from salaries, wages, or other compensation of employees and officials for the purpose provided in division (A) above are hereby authorized to be made and shall be made in the amounts and at such times as may be required by applicable state or federal laws or regulations and shall be paid over to the state agency designated by such laws or regulations to receive such amounts.
('72 Code, § 28-21)
(E) Appropriation of funds. There shall be appropriated from available funds, derived from the General Fund of the city, consisting of surplus from prior years' operations, ad valorem taxes, and all other revenues of such funds as budgeted from year to year, such amounts, at such times, as may be required to pay promptly the contributions, assessments, and referendum costs required of the city as applicant or employer by state or federal laws or regulations, which shall be paid over to the lawfully designated state agency at the times and in the manner provided by law and regulation.
('72 Code, § 28-22)
(F) Adherence to state or federal laws. The city shall keep such records and make such reports as may be required by applicable state or federal laws or regulations and shall adhere to the regulations of the state agency.
('72 Code, § 28-23)
(G) Adoption of terms of Social Security Act. The city does hereby adopt the terms, conditions, requirements, reservations, benefits, privileges and other conditions thereunto appertaining, of Title II of the Social Security Act as amended, for and on behalf of all its officers and employees to be covered under the agreement.
('72 Code, § 28-24)
(H) Duties of Director of Finance. The Director of Finance of the city is hereby designated the custodian of all sums withheld from the compensation of officers and employees and of the appropriate funds for the contribution of the city and the Director of Finance of the city is hereby made the withholding and report agent and charged with the duty of maintaining personnel records for the purposes of this subchapter.
('72 Code, § 28-25)
(I) Procedure when coverage rejected at employee referendum. In the event that a majority of the eligible employees, as the term “eligible employee” is defined in Section 218(d)(3) of the Social Security Act, at a referendum held pursuant to the authority of this subchapter, do not vote in favor of making applicable the coverage authorized herein, then the effect of such sections shall immediately cease and terminate, and moneys withheld, if any pursuant to division (D), shall be refunded.
('72 Code, § 28-26)
(Ord. 2166, passed 1-16-63)
Cross-reference:
Code of Ethics, see Chapter 34
CIVIL SERVICE
This subchapter shall provide a system to be known as the Civil Service System of the City of Hollywood, Florida, and shall supersede, replace and repeal, except as provided in § 33.180, former Article VIII of the Charter and Related Acts of the City of Hollywood, Florida, consisting of Chapters 65-1689 and 69-24 of the Special Acts of the Florida Legislature, Ordinances O-74-81 and O-76-73 of the City of Hollywood, and all other special acts and ordinances enacted to establish this subchapter though not specifically enumerated.
(Ord. O-2010-30, passed 7-21-10)
For purposes of this subchapter the following definitions shall apply unless the context clearly indicates or requires a different meaning.
BOARD. The Civil Service Board created by § 33.174.
CITY. The City of Hollywood, Broward County, Florida.
CITY COMMISSION. The City Commission of the City of Hollywood, Florida.
CITY COMMISSIONER. A member of the City Commission of the City of Hollywood, Florida.
DEPARTMENT HEAD. Any person, however designated by title from time to time, who reports directly to and is under the direct supervision and authority of the City Manager, excepting City Manager's staff.
(Ord. O-2010-30, passed 7-21-10)
The general purpose of this subchapter is to provide a system of personnel administration that meets the social and economic needs of the people of the city. This system shall provide a means to recruit, select, develop and maintain an effective and responsive work force and shall include policies and procedures for employee hiring, discharge and other related activities. However, specific provisions of collective bargaining agreements approved by the City Commission concerning job classifications and fringe benefits shall prevail over those established by this subchapter. All appointments and promotions in the civil service system shall be based upon merit and made without regard to political affiliation, race, religion, color, national origin, physical handicap, age or sex, except where age or sex or physical condition is a bona fide occupational qualification.
(Ord. O-2010-30, passed 7-21-10)
(A) The civil service system of the city shall consist of those employees subject to the provisions of the civil service system of the city as established by this subchapter.
(B) The civil service system shall be a permanent system and shall comprise all tenured positions now existing or hereafter established, except the following:
(1) All elected officials;
(2) Non-employee members of all boards and commissions;
(3) The City Manager and his or her assistants, excluding clerical and secretarial personnel;
(4) The City Attorney and assistant city attorneys;
(5) Department heads appointed by the City Manager;
(6) All part-time, temporary and probationary employees;
(7) All contractual employees.
(C) Any person currently employed in one of the positions specified in divisions (B)(3) and (5) hereinabove and having held that position prior to July 17, 1974, shall, only with regard to such position, acquire rights created and established by this subchapter. Any person promoted to a position specified in divisions (B)(3) and (5) hereinabove after July 17, 1974, and prior to the final adoption of approval of this subchapter, shall acquire rights created and established by this subchapter, but only as to the position held prior to the promotion.
(D) The probationary period for persons promoted into the positions enumerated in divisions (B)(3), (4), (5) and (7) hereinabove, shall be a period of one year, during which period such persons shall retain the rights created and established by this subchapter.
(E) Any person employed in a position enumerated in divisions (B)(3) and (5) hereinabove, and who has not acquired the rights created and established by this subchapter, shall before being terminated be given a written notice of termination by the City Manager, with copies to each member of the City Commission for informational purpose only, listing the reasons for termination and shall have seven days to file a written response, whereupon a hearing with the City Manager will be held. The requirements of notice, privilege of response and a hearing as in this division set forth shall be procedural in nature only and shall not be construed to require the City Manager to establish good cause and/or legally sufficient grounds for a termination as in this division set forth, since the persons referred to in this division serve at the pleasure of the City Manager and may be terminated at his or her discretion.
(Ord. O-2010-30, passed 7-21-10)
(A) A Civil Service Board for the civil service system is hereby created consisting of five City Commission-appointed voting members, all of which shall be continuous residents of and continuous registered electors in the City of Hollywood. The five City Commission-appointed members must be affirmed by a five-sevenths vote of the City Commission.
(B) The initial terms of the City Commission- appointed members shall be one for three years, two for two years and two for one year, with each appointment thereafter being for a term of two years. Each member of the Board shall hold office until his or her successor is appointed.
(C) The Board shall elect from its members a chairman and a vice-chairman who shall serve at the will of the Board. The Board shall meet at such times and places as shall be specified by call of the chairman, or, in his or her absence, by the vice-chairman, or upon written request of a majority of the members of the Board. At least one meeting shall be held each month. All meetings shall be open to the public. A quorum shall consist of three members.
(D) The City Commission shall select Board members in accordance with the following criteria:
(1) One member shall be someone who is currently employed or who was previously employed by the private sector in the area of personnel administration;
(2) One member shall be employed or previously employed by the private sector, and not part of the management of his or her employer;
(3) One member shall be employed or previously employed by the private section and be part of the management of his or her employer;
(4) One member shall be self-employed or previously self-employed;
(5) One member shall be employed or previously employed by a public employer. This member shall not be currently employed by the City of Hollywood, or employed by Hollywood at any time during his or her service on the Board.
(E) Any Board member who is absent from four meetings in any 12-month period will be automatically removed from the Board.
(F) The City Commission, the City Manager and department heads, or their designees, shall be given notice of all Board meetings and shall have the right to speak at any such meetings on any subject matter before the Board.
(G) The Board shall:
(1) Approve or disapprove the rules and regulations of all procedures according to § 33.179.
(2) Have authority to require the performance of all procedures promulgated pursuant thereto.
(3) Act as an appellate review board on an appeal:
(a) Filed by an employee in the civil service system when the employee has been suspended, demoted or terminated; or
(b) Filed by an employee who appeals testing promotion or placement procedures.
(4) Appeal hearings shall be conducted in the manner set forth in § 33.178.
(H) The Board shall appoint as its attorney a non- employee of the city, who shall be licensed to practice in the State of Florida and who shall serve at the pleasure of the Board and the City Commission. The attorney so appointed shall serve as legal advisor to the Board, attend meetings thereof and receive reasonable compensation to be established by the City Commission.
(I) The City Commission shall annually budget sufficient funds to permit the Board to effectively perform and enforce the provisions of this subchapter.
(J) The Civil Service Board shall have authority to issue subpoenas which shall be validated by the City Clerk, requiring the attendance of witnesses and the production of pertinent documents at appeal hearings or other proceedings, and to administer oaths. Any employee of the city who shall fail to appear or otherwise respond to a duly executed, validated and served subpoena of the Board shall be subject to disciplinary action as shall be outlined in the rules and regulations which will be promulgated pursuant to this subchapter. Should a non- employee of the city fail to appear or otherwise respond to a duly executed and served subpoena of the oard, upon showing just cause, the attorney for the Board shall initiate a proceeding in the Circuit Court of Broward County seeking an order from that court requiring the appearance of the non-employee witness at a date, time and place specified, and further providing that upon failure of the witness to obey such order of the court, the witness may be punished by said court as a contempt thereof.
(K) The Civil Service Board shall not have authority to initiate litigation against the city or any member or members of the City Commission.
(Ord. O-2010-30, passed 7-21-10)
(A) There shall be in the city a personnel function.
(B) The Personnel Director shall be experienced in management and administration.
(C) On recommendation of the City Manager, the appropriate department heads in conjunction with the Personnel Director shall develop personnel policies subject to the approval of the City Manager and the Civil Service Board. However, specific provisions of collective bargaining agreements approved by the City Commission shall be superior and shall prevail to the extent they conflict with this subchapter. Two weeks' public notice shall be given of proposed changes or additions to the personnel policies prior to the Board meeting at which they are to be considered. The policies provide:
(1) For the maintenance of and any necessary revisions to the position classification plan for all positions in the civil service system, based upon similarity of duties performed and responsibilities assumed, so that the same qualifications may reasonably be required for and the same schedule of pay may be equitably applied to all positions in the same class; provided however, that new classifications approved by the City Commission by motion or by budget, or by any other legal means, shall not be reviewed nor shall the salary be reviewed by the Civil Service Board. The classifications or salary of any such position shall also not be appealable to the Civil Service Board.
The "class specifications" are not intended to prescribe all the specific duties of a given position nor to limit the power of the appointing authority to modify or alter the detailed tasks involved in the duties of any positions. Any changes in the classification plan shall be approved by the City Manager, subject to appeal to the Civil Service Board. Notice of the proposed change must be conspicuously posted for at least 14 calendar days, and any change shall not be effective until 24 calendar days after the first day of posting. An appeal from a change in class specifications must be served at the office of the civil service board within 24 calendar days of the first day the change is posted. The serving of an appeal shall stay the effect of the proposed changes until the Civil Service Board has ruled on the appeal. Present classifications in effect at the time of the adoption of this subchapter shall remain in effect unless changed as provided above.
(Ord. O-2010-30, passed 7-21-10)
(A) The city administration shall be responsible for testing, and in this regard there shall be created one or more positions of examiners as needed. Examiners shall meet the generally accepted qualifications in the public sector testing field at the time of appointment.
(B) No person shall make any false statement, certificate, mark, rating or report with regard to any tests, certification or appointment made under any provisions of this subchapter or in any manner commit or attempt to commit any fraud preventing the impartial execution of this subchapter and policies.
(C) No employee of the city, or other person, shall defeat, deceive or obstruct any person in his or her right to examination, eligibility, certification or appointment under this subchapter, or furnish to any person any special or secret information for the purpose of affecting the rights of prospects of any person with respect to employment in the civil service system.
(D) Members of a department shall be moved from any grade to a higher grade only after passing the required examination, and only after the City Manager or his or her designee has certified that they have the necessary qualifications; and he or she shall further certify that their names have been entered upon the eligible list.
(E) The City Manager, or his or her authorized agent, as the final appointing and removal authority, shall be responsible for certification that the persons named therein have been appointed and employed in accordance with the provisions of this subchapter and the policies thereunder. No city employee shall make or approve or take any part in making or approving any payment for personal service to any persons holding a position in the city service unless the appointing document bears the certification of the City Manager or his or her authorized agent.
(F) In the case of a vacancy in a position in a department where peculiar and exceptional qualifications of a scientific, managerial, professional or educational requirements are necessary and upon satisfactory evidence that for specified reasons competition in such special case is impracticable, and that the position can best be filled by a selection of some designated person of high qualifications, the Board, on a vote of majority of its members and the written assent of the department head, or of the City Manager, shall suspend the provisions of the statute requiring competition in such case for a period not to exceed one year, with no right to such reappointment as employee; and all such cases of suspension of the examination shall be recorded by the Board, with the reasons for said suspension, and shall be open to the public.
(G) Upon appointment or promotion, there shall be established a period of employee probation, prior to permanent appointment, not to exceed one year; except in the cases where a Broward County or State of Florida certified school or training course is required, then the year's probation will start upon successful completion of the training course as prescribed by the State of Florida and as the course may be modified by the City of Hollywood.
(H) Emergency employment may be implemented for not more than 90 days with the consent of the City Manager and for provisional employment without testing where there is no appropriate eligible list available. No such provisional employment shall continue longer than 90 days without the concurrence of the Civil Service Board except during the first year after the effective date of this subchapter; but in no event shall such provisional appointment be for a period to exceed one year, with no right to such reappointment as a provisional employee.
(I) Upon written notice of the department head that a position in the classified service is to be filled, the City Manager or his or her designee shall certify the names of at least the three persons highest on the eligible list for the class. The Civil Service Board may increase by resolution the number of persons to be certified from such list. When more than one vacancy exists, the number of names submitted shall be determined in the following manner:
For one to four vacancies, add two to the number of vacancies.
For five to eight vacancies, add four to the number of vacancies.
For nine to 12 vacancies, add six to the number of vacancies.
The appointment shall be made from one of three persons standing highest on such certified eligibility list. Then, thereafter, each person who is not so appointed shall be considered four times in a group of three. Specific provisions of collective bargaining agreements approved by the City Commission in conflict herewith shall prevail.
(Ord. O-2010-30, passed 7-21-10)
(A) The termination, suspension or demotion of a permanent employee shall not become effective until the department head, or his or her designee, shall serve upon such employee a written notice of termination, suspension or demotion, a copy of which shall be forwarded to the Board. The notice shall contain one or more charges for the action taken, together with such specifications of facts as will enable the employee to make an explanation and place him or her fairly upon his or her defense.
(B) Should a discharged, suspended or demoted employee desire a hearing by the Board of the action taken, a written notice of appeal shall be filed with the Board within ten calendar days from the time of service of the notice of termination, suspension or demotion. In addition to the filing of the notice of appeal, the employee shall file with the Board an explanation of his or her defense to the charges resulting in the termination, suspension or demotion. A probationary employee who has never been in the classified service of the city shall have no right to appeal a termination, suspension or other disciplinary action. A promoted employee, while in the probationary period of promotion, shall have no right to appeal a demotion back to the position held prior to the promotion.
(C) In the event the department head, or his or her designee, believes there is imminent danger to the safety of employees, citizens, equipment, property or for other necessary reasons, he or she may order an immediate suspension for no longer than three working days before written charges can be presented.
(Ord. O-2010-30, passed 7-21-10)
(A) Upon receipt of a duly filed notice of appeal as specified in § 33.177(B) and within 30 days thereafter, the Board shall set a date, time and place for holding the appeal hearing, which shall be open to the public. Written notice shall be given to the appellant and the department head of the date, time and place of appeal hearing. The Board upon its own motion for cause, or upon the motion of the appellant, or the department head, or his or her designee, or the City Manager, may reset the date for the appeal hearing on a date greater than the 30-day period set forth hereinabove.
(B) The department head, or his or her designee, or the City Manager, as the case may be, may be represented by counsel. The appellant may also be represented by counsel.
(C) The Board shall hear the evidence upon the charges and specifications as filed with it by the department head, or his or her designees or the City Manager. No material amendment of or additions to said charges or specifications shall be considered by the Board.
(D) The proceedings shall be as informal as is compatible with justice, and in this regard the Board shall be governed by the following:
(1) Irrelevant, immaterial or unduly repetitious evidence shall be excluded; but all other evidence of a type commonly relied upon by reasonably prudent persons in the conduct of their affairs shall be admissible, whether or not such evidence would be admissible in a trial in the courts of Florida. Any written or other documentary evidence shall be admissible if the document or writing is admissible under the Florida Rules of Civil Procedure. All testimony of parties and witnesses shall be made under oath. Hearsay evidence may be used for the purpose of supplementing or explaining other evidence, but it shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions.
(2) The Board or its duly empowered presiding officer has the power to swear witnesses and take their testimony under oath, to issue subpoenas which are to be validated by the City Clerk upon the written request of any party or upon its own motion, and to effect discovery on the written request of any party by any means available to the courts and in the manner provided in the Florida Rules of Civil Procedure, the time limits for which shall be determined by the Board.
(3) Documentary evidence may be received in the form of a copy or excerpt if the original is not readily available. Upon request, parties shall be given an opportunity to compare the copy with the original.
(4) A party shall be permitted to conduct cross-examination when testimony is taken or documents are made a part of the record.
(5) Any person subject to a subpoena or order directing discovery may, before compliance and on a timely petition, request the Board to invalidate the subpoena or order on the ground that it was not lawfully issued, is unreasonably broad in scope, or requires the production of irrelevant material.
(E) The order of proof shall be as follows: The department head, his or her designee, or the City Manager, as the case may be, shall present evidence in support of the charges; the appellant shall then produce evidence in his or her defense; the parties in interest may then offer rebuttal evidence; the Board shall thereafter hear arguments; and the Board shall, after due consideration, render its judgment affirming, disaffirming or modifying the action of the department head, his or her designee, or the City Manager.
(F) Any willful false swearing on the part of any witness or person giving evidence before the Board as to any material fact in the proceedings shall be deemed to be perjury and shall be punished in the manner prescribed by law for such offense.
(G) If the employee whose appeal is to be heard shall fail to appear at the time fixed for the hearing, and such absence shall not be excused by the board, the Board shall proceed to hear the evidence and render judgment thereon in absentia.
(H) If the head of the proper department, or his or her designee, shall fail to appear at the time for the hearing, and such absence is not excused by the Board, and if no evidence be offered in support of his or her charge or charges, the Board may render judgment as by default or may hear evidence as offered by the removed employee and render judgment thereon; and the Board shall forthwith notify the department head and the removed employee of its judgment.
(I) Whenever a termination, suspension or demotion is disaffirmed by the Board, the employee involved may, upon recommendation by the Board and approval by the City Commission, receive any lost compensation and benefits and in addition the cost and expenses reasonably incurred in presenting his or her defense.
(J) The Civil Service Board attorney shall rule on all points of law and admissibility of evidence, and his or her ruling shall be binding on the Board. Any appeal filed pursuant to division (A) hereof shall be filed at the office of the Civil Service Board.
(Ord. O-2010-30, passed 7-21-10)
(A) The Board shall adopt, enact and amend a code of general rules and regulations to effect the provisions of this article. The existing rules and regulations for municipal civil service of the City of Hollywood, Florida, shall continue to be in effect until six months after the approval of this subchapter at a referendum election or until the new rules and regulations are adopted, whichever is sooner.
(B) Departmental rules shall be developed and prepared by the individual department heads in conjunction with the Personnel Director, who shall, after review, submit them to the City Manager for approval, who in turn and upon approval shall forward the rules to the Board for final approval. The Board, in its approval procedure for general and departmental rules and regulations, shall conduct at least one public hearing, notice of which shall be given in a manner prescribed by F.S. Ch. 120. The Board shall be empowered to change or reject rules only for good cause as set forth in standards for rejection, established by the Board. Existing rules of individual departments shall continue to be in effect until one year after such referendum approval, or until new rules are adopted, whichever is sooner.
(Ord. O-2010-30, passed 7-21-10)
Loading...