Staff recommends approval of the ordinance amending the Municipal Police Officers’ Pension Trust Fund; amending Sections 1, 4, 5, 6, 8, 10, 15, 17, 18, 19, 20, 22, 25, 26, 28 and 30.
As a result of the adoption of the Pension Protection Act of 2006 and subsequent regulations and guidance from the Internal Revenue Service, as well as other modifications to the Internal Revenue Code and Regulations and State law and the recent adoption of Chapter 2009-97 Laws of Florida (LOF), several changes to the Municipal Police Officers’ Pension Trust Fund have been proposed. These changes have been recommended by the Municipal Police Officers’ Pension Trust Fund Board for approval and adoption by the City Commission.
Section 1, Definitions, is being amended for Internal Revenue Code (IRC) changes and changes to the Uniformed Services Employment and Reemployment Rights Act (USERRA), to amend the definitions of:
a. Actuarial Equivalent - IRC
b. Credited Service – USERRA
c. Salary – IRC
Section 4, Finances and Management, is being amended to allow the fund to invest up to 25% of the fund’s assets at market value in foreign securities, as permitted by Chapter 185, Florida Statutes. 2009-97 LOF
Section 5, Contributions, is being amended for clarifications of language to satisfy the requirements of the actuary for the State of Florida.
Section 6, Benefit Amounts and Eligibility, is being amended to add subsections 6, Required Distribution Date – IRC
Section 8, Disability, is being amended to comply with Chapter 185, Florida Statutes, and to clarify the conditions under which a disabled retiree may be recalled to duty.
Section 10, Optional Forms of Benefits, has been amended to:
a. City an appropriate Treasury Regulation – IRC
b. Add a new subsection 5.E. – IRC
c. Amend subsection 7 – IRC
Section 15, Maximum Pension, has been totally rewritten to comply with IRC changes.
Section 17, Minimum Distribution of Benefits, is being amended for IRC changes.
Section 18, Miscellaneous Provisions, is being amended for changes to the IRC, USERRA and Chapter 185, Florida Statutes, general compliance language.
Section 19, Repeal or Termination of System, is being amended for IRC changes to eliminate outdated language and to comply with recent legislative changes to the termination language. 2009-97 LOF
Section 20, Domestic Relations Orders, Retiree Directed Payments, Exemption from Execution, Non-Assignability, is being amended to allow a retiree to direct retirement benefit deductions for payments to the City or to insurance companies for benefits such as health insurance as now permitted by Chapter 185, Florida Statutes. This is a non-mandatory, no-cost recommended amendment. 2009-97 LOF
Section 22, Forfeiture of Pension, is being amended to include a recent amendment to Section 112.3173, Florida Statutes, which is applicable to all Florida pension plans.
Section 25, Direct Transfers of Eligible Rollover Distributions; Elimination of Mandatory Distributions, is being amended to comply with IRC changes.
Section 26, Prior Police Service, is being amended to correct a section reference, as well as provide for the no cost buy-back of prior police service for federal and other state, county or municipal service under certain conditions. A buy-back for prior police service within the State of Florida is currently in the plan. 2009-97 LOF
Section 28, Deferred Retirement Option Plan, has been amended to add a provision to provide for the inclusion of an amount equal to any lump sum payments which would have been paid to a member and included as salary for purposes of determining the member’s accrued benefit had he retired and not entered the DROP. This avoids a possible penalty in the calculation of the benefit if a member enters the DROP rather than actually retiring at normal retirement
Section 30, Reemployment After Retirement, is being amended to make a correction to a reference of firefighter instead of the intended term of police officer.
The actuary for the plan, Foster and Foster, Inc., has reviewed this proposed ordinance and determined that there is no cost associated with its adoption.
1. Approve the Ordinance amending the City of Leesburg Municipal Police Officers’ Pension Trust Fund; or
2. Such alternative action as the Commission may deem appropriate
Prepared by: __Jay Evans__________
Attachments: Yes_X___ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. _______JB_________
Deputy C.M. ___________________
City Manager ___________________
Account No. _N/A_____________
Project No. ___________________
WF No. ______________________