As used herein, unless otherwise defined or required by the context, the following words and phrases shall have the meaning indicated. The masculine gender, where used herein, unless the context specifically requires otherwise, shall include both the feminine and masculine genders.
ACCUMULATED CONTRIBUTIONS. A member's own contributions, together with regular interest thereon. For those members who purchase credited service with interest or at no cost to the system, only that portion of any payment representing the amount attributable to member contributions based on the applicable member contribution rate shall be included in accumulated contributions.
ACTUARIAL EQUIVALENCE
or
ACTUARIAL EQUIVALENT.
A benefit payable under the terms of the system in a form other than the normal form of benefit, having the same actuarial present value on the date payment commences as the normal form of benefit. For purposes of establishing the actuarial present value of any form of payment, other than a lump sum distribution, all future payments shall be discounted for interest and mortality by using eight percent (8%) interest and the RP-2000 Combined Healthy Mortality Table with no projection.
AVERAGE FINAL COMPENSATION.
(1) For police officer members: one-twelfth (1/12) of the average annual compensation of the best five (5) years of the last ten (10) years of credited service prior to retirement, termination or death.
(2) For firefighter members: one-twelfth (1/12) of the average annual compensation of the best five (5) years of the last ten (10) years of credited service prior to retirement, termination or death.
A year shall be twelve (12) consecutive months or such other consecutive period of time as is used and consistently applied.
BENEFICIARY. A person receiving, or designated in writing by a member to receive, the balance of accumulated contributions or retirement or death benefits, if any, including any funds in the member's DROP account, to be paid in behalf of a member or retiree.
BOARD. The board of trustees, which shall serve as trustees of the fund and which shall have administrative authority and supervision of the system.
CITY. City of Palm Bay, Florida.
CODE. The Internal Revenue Code of 1986, as amended from time to time.
COMPENSATION or SALARY.
(1) For firefighter members, COMPENSATION or SALARY means the member's monthly remuneration including base pay, acting pay, field training pay, holiday pay, academic incentive pay, certification pay, EMT pay, paramedic pay, special operation team pay and longevity pay earned on or after October 1, 2021; but excluding overtime, call back pay, terminal leave payouts, standby pay, vacation payouts, bonus/merit lump sum payments, and any other payment received by a member.
(2) For police officer members, COMPENSATION or SALARY includes base pay,
administrative pay, clothing allowance, expenses pay, longevity, subsistence pay, vacation buy-back, and effective October 1, 2005 up to thirty-five (35) hours of overtime per fiscal year; and effective October 1, 2006, up to fifty-four (54) hours per fiscal year; but excludes any other payments received by a member. Effective October 1, 2007, for police officer members who retire or enter the DROP on or after that date, compensation or salary shall mean total cash remuneration paid by the city for services rendered by the member including up to one hundred twenty-nine (129) hours of overtime per fiscal year, and excluding any payments for extra duty, special duty or special detail work performed on behalf of a second party employer.
(3) Compensation in excess of the limitations set forth in Section 401(a)(17) of the code shall be disregarded. The limitation on compensation for an "eligible employee" shall not be less than the amount which was allowed to be taken into account hereunder as in effect on July 1, 1993. ELIGIBLE EMPLOYEE is an individual who was a member before the first plan year beginning after December 31, 1995.
CREDITED SERVICE.
(1) The total number of years and fractional parts of years of service as a police officer or 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 police officer or firefighter. A member may voluntarily leave his or her accumulated contributions in the fund for a period of five (5) years after leaving the employ of the police department or fire department pending the possibility of being re-employed as a police officer or 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 police department or 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 police officer or firefighter within five (5) years, his or her accumulated contributions shall be returned only upon written request. Upon return of a member's accumulated contributions, all of his or her rights and benefits under the system are forfeited and terminated. Upon reemployment, a police officer or 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 he or she repays into the fund the contributions he or she has withdrawn, with interest, as determined by the Board, within ninety (90) days after his or her reemployment.
(2) The years or fractional parts of years that a member serves in the military service of the Armed Forces of the United States, voluntarily or involuntarily, after leaving active employment as a police officer or firefighter, 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 returns to his or her employment as a police officer or firefighter within one (1) year from the date of or release from such military service.
(b) The member is entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act.
(c) The maximum credit for military service shall be five (5) years.
(3) Credited service shall not be deemed to be interrupted by any authorized leave of absence or vacation, provided that all members similarly situated shall be treated alike pursuant to uniform, nondiscriminatory rules. Leave granted pursuant to the Family and Medical Leave Act shall not constitute a break in service for vesting or eligibility purposes, but the period of such leave shall not be counted as credited service for benefit purposes unless the member pays into the fund the member contributions that would have been paid had the member not been on leave, plus interest as determined by the Board, within ninety (90) days after the member's return from leave, or within ninety (90) days following the effective date of this section, whichever is later.
(4) Effective October 1, 2005, any police officer member who is employed by the city on that date or after and retires or enters the DROP after that date, who has served a minimum of ten (10) years as a sworn law enforcement officer for the city, and who, prior to city employment, had experience as a sworn law enforcement officer and/or in uniformed military service, may purchase up to four (4) years of credited service for such prior uniformed military experience or experience as a sworn law enforcement officer, but not more than a combined total of four (4) years of credited service, in accordance with this paragraph (4). The cost of the prior law enforcement and/or military service purchased pursuant to this paragraph (4) shall be based on the contributions the police officer member would have made for the purchased time based upon the contribution rates and compensation of the police officer member at the time of hire by the city. In addition to or in lieu of a cash payment, the member may use the value of their accrued sick and vacation leave to purchase all or a portion of the prior law enforcement and/or military service purchased pursuant to this paragraph (4). The member may use any combination of accrued sick or vacation leave, or a cash payment to purchase all or a portion of the prior law enforcement and/or military service. In no event may a member purchase more than four (4) years of prior law enforcement and/or military service pursuant to this paragraph (4). Effective August 3, 2007, a police officer member who is currently eligible to purchase prior law enforcement and/or military service in accordance with this paragraph (4) shall have thirty-six (36) months from August 3, 2007, to purchase the prior law enforcement and/or military service provided for in this paragraph (4). Effective August 3, 2007, a police officer member shall have thirty-six (36) months from the time the police officer member obtains a 100% vested interest pursuant to § 55.10 of the Code of Ordinances to purchase the prior law enforcement and/or military service provided for in this paragraph (4). The city reserves the right to provide input concerning the actuarial methods and calculations to be used to determine the cost of the prior law enforcement and/or military service purchased pursuant to this paragraph (4). The city also reserves the right to engage an independent actuary to review the methods and calculations of the plan actuary, and if the two actuaries do not agree, the Board may consider the positions of both actuaries in making a final determination as to the methods and calculations to be used. All actuarial assumptions, cost methods, and procedures shall be individually realistic and based on the actuary’s best estimates of anticipated future experience under the plan.
(5) Any firefighter member, prior to retirement, shall have the option to purchase up to four (4) years of military experience or four (4) years of paid sworn firefighter service, but not more than a combined total of four (4) years. To receive credit for either military experience or paid sworn firefighter service, the firefighter member shall pay the full actuarial cost thereof, as determined by the actuary and as approved by the Board. In no circumstances may a firefighter member purchase any military experience or paid sworn firefighter service for which another benefit has been obtained or will be obtained as a result of such experience. The Board may require such written proof or certification as it deems necessary to carry out the intent of this provision.
CUSTODIAN. The entity designated to serve as the custodian of the fund of the system.
DROP.
The Palm Bay Police Officer and Firefighter's Pension Deferred Retirement Option Plan as set forth in §§ 55.28 et seq.
DROP ACCOUNT.
The account established for each DROP participant under § 55.28(B)(1).
EFFECTIVE DATE. May 2, 1974.
FIREFIGHTER. Any person employed solely by the city who is certified as a firefighter and meets the definition of firefighter in Fla. Stat. § 175.032(8)(a). The fire chief shall have the option to participate, or not, in this system.
FUND. The trust fund established herein as part of the system.
INVESTMENT ADVISOR. An entity designated to supervise or manage the investment of assets of the fund.
MEMBER. An actively employed police officer or firefighter who fulfills the prescribed membership requirements.
PLAN YEAR. The twelve (12) month period beginning and ending as determined by the Board.
POLICE OFFICER. A person employed full time by the city, who is certified as a law enforcement officer and meets the definition of police officer in Fla. Stat. § 185.02(11). The police chief shall have the option to participate, or not, in this system.
PREEXISTING CONDITION.
(1) Any condition, disease or ailment which existed on or before the date a member became eligible for membership in the system; or
(2) Any condition, disease or ailment for which a member received medical or surgical treatment or advice within five (5) years prior to the date such a member became eligible for membership in the system; or
(3) Any complication or aggravation of such condition, disease or ailment.
REGULAR INTEREST. Such rate of interest as shall be determined and allowed from time to time by the board.
RETIREE. A member who has retired under the provisions hereof and is receiving benefits from the fund.
RETIREMENT. A member's separation from city employment with eligibility for immediate receipt of benefits under the system.
SPOUSE. The lawful wife or husband of a member.
SYSTEM. The City of Palm Bay Police Officers' and Firefighters' Retirement System as contained herein and all amendments thereto.
(Ord. 2000-15, passed 5-5-00; Am. Ord. 2002-66, passed 10-17-02; Am. Ord. 2004-04, passed 1-22-04; Am. Ord. 2005-27, passed 6-20-05; Am. Ord. 2005-59, passed 10-6-05; Am. Ord. 2006-29, passed 5-4-06; Am. Ord. 2006-113, passed 11-2- 06; Am. Ord. 2007-64, passed 9-6- 07; Am. Ord. 2007-65, passed 9-6- 07; Am. Ord. 2007-66, passed 9-6- 07; Am. Ord. 2007-107, passed 11- 15-07; Am. Ord. 2013-45, passed 8-13-13; Am. Ord. 2022-16, passed 2-3-22)