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The secretary of the Board shall keep a record of all persons receiving pensions under the system in which it shall be noted the time when the pension is allowed and when 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. 2000-15, passed 5-5-00)
Notwithstanding any other provision of the system to the contrary, the annual benefit to which a member is entitled under the system shall not, in any limitation year, be in amount which would exceed the applicable limitations under Section 415 of the Internal Revenue Code and the regulations issued thereunder. If the benefit payable under the system would (but for this section) exceed the limitations of Section 415 of the Code by reason of a benefit payable under another defined benefit plan aggregated with this system under Code Section 415(f), the benefit under this system shall be reduced only after all reductions have been made under such other plan. As of January 1 of each calendar year commencing on or after January 1, 2007, the dollar limitation as determined by the Commissioner of the Internal Revenue Service for that calendar year shall become effective as the maximum permissible dollar amount of benefit payable under the system during the limitation year ending within that calendar year.
(Ord. 2000-15, passed 5-5-00; Am. Ord. 2007-66, passed 9-6-07)
(A) General rules.
(1) Effective date. The provisions of this section will apply for purposes of determining required minimum distributions for calendar years beginning with the 2007 calendar year.
(2) Precedence. The requirements of this section will take precedence over any inconsistent provisions of the system.
(3) Requirements of treasury regulations incorporated. All distributions required under this section will be determined and made in accordance with the Treasury regulations under section 401(a)(9) of the Code.
(4) TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this Section other than this subsection (A)(4), distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the plan that related to Section 242(b)(2) of TEFRA.
(B) Time and manner of distribution.
(1) Required beginning date. The member's entire interest will be distributed, or begin to be distributed, to the member no later than the member's required beginning date which shall not be later than April 1 of the calendar year following the later of the calendar year in which the member attains age seventy-three (73), provided the member had not attained age seventy-two (72) by December 31, 2022; or the calendar year in which the member retires unless otherwise provided for in the Plan. The Plan will make all future required minimum distributions in compliance with the prevailing age restrictions and additional parameters set out in the Internal Revenue Code as amended from time to time.
(2) Death of member before distributions begin. If the member dies before distributions begin, the member's entire interest will be distributed, or begin to be distributed no later than as follows:
(a) If the member's surviving spouse is the member's sole designated beneficiary, then distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the member died, or by December 31 of the calendar year in which the member would have attained age seventy-three (73), provided the member had not attained age seventy-two (72) by December 31, 2022, if later, as the surviving spouse elects. The Plan will make all future required minimum distributions in compliance with the prevailing age restrictions and additional parameters set out in the Internal Revenue Code as amended from time to time.
(b) If the member's surviving spouse is not the member's sole designated beneficiary, then, distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the member died.
(c) If there is no designated beneficiary as of September 30 of the year following the year of the member's death, the member's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the member's death.
(d) If the member's surviving spouse is the member's sole designated beneficiary and the surviving spouse dies after the member but before distributions to the surviving spouse begin, this subsection (B)(2), other than subsection (B)(2)(a), will apply as if the surviving spouse were the member.
For purposes of this subsection (B)(2) and subsection (E), distributions are considered to begin on the member's required beginning date or, if subsection (B)(2)(d) applies, the date of distributions are required to begin to the surviving spouse under subsection (B)(2)(a). If annuity payments irrevocably commence to the member before the member's required beginning date (or to the member's surviving spouse before the date distributions are required to begin to the surviving spouse under subsection (B)(2)(a), the date distributions are considered to begin is the date distributions actually commence.
(3) Form of distribution. Unless the member's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning date, as of the first distribution calendar year distributions will be made in accordance with subsections (C), (D), and (E) of this section. If the member's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Section 401(a)(9) of the Code and Treasury regulations. Any part of the Member's interest which is in the form of an individual account described in Section 414(k) of the Code will be distributed in a manner satisfying the requirements of Section 401(a)(9) of the Code and Treasury regulations that apply to individual accounts.
(C) Determination of amount to be distributed each year.
(1) General annuity requirements. If the member's interest is paid in the form of annuity distributions under the Plan, payments under the annuity will satisfy the following requirements:
(a) The annuity distributions will be paid in periodic payments made at intervals not longer than one year.
(b) The distribution period will be over a life (or lives) or over a period certain not longer than the period described in subsection (D) or (E).
(c) Once payments have begun over a period certain, the period certain will not be changed even if the period certain is shorter than the maximum permitted.
(d) Payments will either be non-increasing or increase only as follows:
1. By an annual percentage increase that does not exceed the cumulative annual percentage increase in a cost-of-living index that is based on prices of all items and issued by the Bureau of Labor Statistics or by a fixed annual increase of five percent or less.
2. To the extent of the reduction in the amount of the member's payments to provide for a survivor benefit upon death, but only if the beneficiary whose life was being used to determine the distribution period described in subsection (D) dies or is no longer the member's beneficiary pursuant to a qualified domestic relations order within the meaning of Section 414(p) of the Code.
3. To provide cash refunds of accumulated contributions upon the member's death.
4. To pay increased benefits that result from a system amendment.
(2) Amount required to be distributed by required beginning date. The amount that must be distributed on or before the member's required beginning date (or, if the member dies before distributions begin, the date distributions are required to begin under subsection (B)(2)(a) or (B)(2)(b) is the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are the periods for which payments are received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the member's benefit accruals as of the last day of the first distribution calendar year will be included in the calculation of the amount of the annuity payments for payment intervals ending on or after the member's required beginning date.
(3) Additional accruals after first distribution calendar year. Any additional benefits accruing to the member in a calendar year after the first distribution calendar year will be distributed beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues.
(D) Requirements for annuity distributions that commence during a member's lifetime.
(1) Joint life annuities where the beneficiary is not the member's spouse. If the member's interest is being distributed in the form of a joint and survivor annuity for the joint lives of the member and a nonspouse beneficiary, annuity payments to be made on or after the member's required beginning date to the designated beneficiary after the member's death must not at any time exceed the applicable percentage of the annuity payment for such period that would have been payable to the member using the table set forth in Q&A-2 of Section 1.401(a)(9)-6T of the Treasury regulations. If the form of distribution combines a joint and survivor annuity for the joint lives of the member and a non-spouse beneficiary and a period certain annuity, the requirements in the preceding sentence will apply to annuity payments to be made to the designated beneficiary after the expiration of the period certain.
(2) Period certain annuities. Unless the member's spouse is the sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain for an annuity distribution commencing during the member's lifetime may not exceed the applicable distribution period for the member under the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury regulations for the calendar year that contains the annuity starting date. If the annuity starting date precedes the year in which the member reaches age seventy-three (73), provided the participant had not attained age seventy-two (72) by December 31, 2022, the applicable distribution period for the member is the distribution period for age seventy-three (73) under the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury regulations plus the excess of seventy-three (73) over the age of the member as of the member's birthday in the year that contains the annuity starting date. If the member's spouse is the member's sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain may not exceed the longer of the member's applicable distribution period, as determined under this subsection (D)(2), or the joint life and last survivor expectancy of the member and the member's spouse as determined under the Joint and Last Survivor Table set forth in Section 1.401(a)(9)-9 of the Treasury regulations, using the member's and spouse's attained ages as of the member's and spouse's birthdays in the calendar year that contains the annuity starting date.
(E) Requirements for minimum distributions where member dies before date distributions begin.
(1) Member survived by designated beneficiary. If the member dies before the date distribution of his or her interest begins and there is a designated beneficiary, the member's entire interest will be distributed, beginning no later than the time described in subsection (B)(2)(a) or (B)(2)(b), over the life of the designated beneficiary or over a period certain not exceeding:
(a) Unless the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary's age as of the beneficiary's birthday in the calendar year immediately following the calendar year of the member's death.
(b) If the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary's age as of the beneficiary's birthday in the calendar year that contains the annuity starting date.
(2) No designated beneficiary. If the member dies before the date distributions begin and there is no designated beneficiary as of September 30th of the year following the year of the member's death, distribution of the member's entire interest will be completed by December 31st of the calendar year containing the fifth anniversary of the member's death.
(3) Death of surviving spouse before distributions to surviving spouse begin. If the member dies before the date distribution of his or her interest begins, the member's surviving spouse is the member's sole designated beneficiary, and the surviving spouse dies before distributions to the surviving spouse begin, this subsection will apply as if the surviving spouse were the member, except that the time by which distributions must begin will be determined without regard to Subsection (B)(2)(a).
(F) Definitions.
(1) Designated beneficiary. The individual who is designated as the beneficiary under the Plan and is the designated beneficiary under Section 40l(a)(9) of the Code and Section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations.
(2) Distribution calendar year. A calendar year for which a minimum distribution is required. For distributions beginning before the member's death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the member's required beginning date. For distributions beginning after the member's death, the first distribution calendar year is the calendar year in which distributions are required to begin pursuant to Subsection (B)(2).
(3) Life expectancy. Life expectancy as computed by use of the Single Life Table in Section 1.401(a)(9)-9 of the Treasury regulations.
(4) Required beginning date. The date specified in Subsection (B)(1).
(G) Compliance with Internal Revenue Code. Notwithstanding anything contained in this section to the contrary, the limitations, adjustments and other requirements prescribed in this section shall at all times comply with the provisions of Internal Revenue Code, Section 401(a)(9), and the regulations issued thereunder.
(Ord. 2000-15, passed 5-5-00; Am. Ord. 2007-66, passed 9-6-07; Am. Ord. 2022-12, passed 1-20-22; Am. Ord. 2023-50, passed 7-20-23)
(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) No reduction of accrued benefits. No amendment or ordinance shall be adopted by the city that shall have the effect of reducing the then-vested accrued benefits of any member or any member's beneficiaries.
(C) Qualification of system. It is intended that the system will constitute a qualified pension plan under the applicable provisions of the 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 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. Subject to the foregoing, the system is declared to be an irrevocable plan and trust, subject to the city's right to terminate in accordance with law.
(1) In recognition of the changing requirements of system qualification, the Board shall adopt an administrative policy setting forth the required provisions for tax qualification. Such a policy shall be amended by the Board as required to maintain continuing compliance with the Internal Revenue Code and that policy and any amendments shall have the force of law as if adopted by the City Council.
(D) Use of forfeitures. Forfeitures arising from terminations of service of members shall serve only to reduce current or future contributions to the fund.
(E) Correction of records. Should any change or error in records result in any member or beneficiary receiving from the system more or less than he would have been entitled to receive had the records been correct, then on discovery of any such error the board shall cause the same to be corrected and as far as practicable shall direct that the payments be adjusted in such manner that the actuarial equivalent of the benefit to which the member or beneficiary was correctly entitled shall be paid.
(F) USSERA. Notwithstanding any provisions of this Plan to the contrary, effective as of December 12, 1994, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of the IRC, USSERA and FLA. Stat. Chapters 175 and 185.
(G) Differential Wage Payments. For Plan Years beginning after December 31, 2008: (i) an individual receiving a differential wage payment, as defined by IRC section 3401(h)(2), is treated as a Member of the System; (ii) the differential wage payment is treated as Compensation for purposes of IRC section 415(c)(3) and Treasury Regulation section 1.415(c)-2; and (iii) the System is not treated as failing to meet the requirements of any provision described in IRC Section 414(u)(1)(C) (or corresponding System provisions) by reason of any contribution or benefit which is based on the differential wage payment.
(H) Notwithstanding any provision in this Part to the contrary members eligible for an unreduced normal retirement benefit may receive an in-service distribution provided any such distribution complies with the applicable requirements of the Internal Revenue Code, Treasury Regulations and guidance issued by the Internal Revenue service with respect to in-service distributions. This provision is applicable only to members who were eligible to commence normal retirement benefits during the period from April 1, 2004 to November 30, 2011.
(1) Members may elect to cease in-service distributions, at any time. A member who ceases in-service distributions may restart participation in this Plan, to the extent they otherwise qualify under the terms of this Plan. Contributions must continue upon the member's re-entry in this Plan, in accordance with § 55.06 here.
(2) A member who ceases in-service distributions and restarts participation in this Plan may receive credited service for their period of in-service distribution, in each case, if and only if, upon their re-entry into this Plan, the value of Contributions for such period of in-service distributions are deducted from the member's retirement allowance and benefit, in accordance with each other requirement for credited service herein.
(3) In accordance with the intent of Section 1.401-l(b)(l)(i) of the Treasury Regulations, in no event shall a member be permitted to restart participation in this Retirement Plan, under this § 55.18(H), greater than one time.
(4) At the time of a member's Retirement, when he or she ceases active membership and severs employment with the City, such member's Retirement allowance and benefit, determined in each case in accordance with the provisions herein, shall be reduced by the actuarially equivalent value of the in-service distribution.
(5) In the event that the in-service distributions of any member must cease in order to maintain the tax-qualified status of this Plan, then those members whose in-service distributions cease will be returned to active membership in the Plan with prior service credit for all years in which distributions were received, provided the member pays to the Plan the required employee contributions, without interest, which would have been paid had the member not commenced in-service distributions; provided, however, if such member fails to pay the required employee contributions in the time and manner determined by the Board of Trustees, such member shall not receive prior service credit for the years in which in-service distributions were received. To the extent required in order to maintain the tax-qualified status of the Plan, the Plan shall recoup a member's prior in-service distributions from the affected member's future benefit payments following such member's separation from the City, upon the affected member's separation from the City, the member's benefit payments (which shall take into account all of the member's credited service) shall be reduced by the pro-rata monthly share of the amount to be recouped based on the member's life expectancy utilizing the mortality table in effect at the time benefits recommence.
(Ord. 2000-15, passed 5-5-00; Am. Ord. 2013-45, passed 8-13-13; Am. Ord. 2015-24, passed 5-21-15; Am. Ord. 2017-32, passed 5-4-17; Am. Ord. 2022-12, passed 1-20-22)
(A) Upon termination of the system by the city for any reason or because of a transfer, merger, or consolidation of governmental units, services, or functions as provided in fla. Stat. Chapter 121, or upon written notice by the city to the Board that contributions under the system are being permanently discontinued, the rights of all members to benefits accrued to the date of such termination and the amounts credited to the members’ accounts are non-forfeitable. The fund shall be distributed in accordance with the following procedures:
(1) The Board shall determine the date of distribution and the asset value required to fund all the non-forfeitable benefits after taking into account the expenses of such distribution. The Board shall inform the city if additional assets are required, in which event the city shall continue to financially support the system until all non-forfeitable benefits have been funded.
(2) The Board shall determine the method of distribution of the asset value, whether distribution shall be by payment in cash, by the maintenance of another or substituted trust fund, by the purchase of insured annuities, or otherwise, for each member entitled to benefits under the system as specified in paragraph (3).
(3) The Board shall distribute the asset value as of the date of termination in the manner set forth in this paragraph, on the basis that the amount required to provide any given retirement income is the actuarially computed single-sum value of such retirement income, except that if the method of distribution determined under paragraph (2) involves the purchase of an insured annuity, the amount required to provide the given retirement income is the single premium payable for such annuity. The actuarial single-sum value may not be less than the member’s accumulated contributions to the system, with interest if provided by the system, less the value of any system benefits previously paid to the member.
(4) If there is asset value remaining after the full distribution specified in paragraph (3), and after the payment of any expenses incurred with such distribution, such excess shall be returned to the city, less return to the state of the state's contributions, provided that, if the excess is less than the total contributions made by the city and the state to date of termination of the system, such excess shall be divided proportionately to the total contributions made by the city and the state.
(5) The Board shall distribute, in accordance with paragraph (2), the amounts determined under paragraph (3).
If, after twenty-four (24) months after the date the system terminated or the date the Board received written notice that the contributions thereunder were being permanently discontinued, the city or the Board of the system’s pension trust fund affected has not complied with all the provisions in this section, the Department of Management Services shall effect the termination of the fund in accordance with this section.
(Ord. 2000-15, passed 5-5-00; Am. Ord. 2013-45, passed 8-13-13)
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