AGENDA MEMORANDUM

 

 

Meeting Date:           February 8, 2010

 

From:                          Jerry Boop, Finance Director, CPA, CGFO

 

Subject:                      Ordinance amending Sections 1.1, 3.1, 4.5, 5.5, 6.3, 6.4 and 7.4 with Amendment Five of the City of Leesburg Municipal Firemen's Retirement Plan

 

 

Staff Recommendation:

Staff recommends approval of an ordinance amending Sections 1.1, 3.1, 4.5, 5.5, 6.3, 6.4 and 7.4 with Amendment Five of the City of Leesburg Municipal Firemen's Retirement Plan.

 

Analysis:

As a result of regulations and guidance from the Internal Revenue Service (IRS), as well as other modifications to the Internal Revenue Code (IRC) and Regulations and State Law and the recent adoption of Chapter 2009-97 Laws of Florida (LOF) and the Federal Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART), changes to the Municipal Firemen’s Retirement Plan have been proposed.  These changes have been recommended by the Municipal Firemen’s Trust Fund Board for approval and adoption by the City Commission.  The provisions of Amendment Five, if adopted by the Commission, shall be effective retroactive to October 1, 2009. 

 

 

Section 1.1 Definitions is being amended to include language for plan participants who leave employment to perform qualified military service as defined in section 414(u) of the IRC.

 

Section 3.1 Optional Forms of Retirement Income is being amended to include optional forms of retirement, for plan participant designation of a joint pensioner.

 

Section 4.5 Benefits Not Assignable is being amended for authorization of deductions pursuant to Section 175.061(7), Florida Statutes.

 

Section 5.5 Termination of Plan is being amended to be consistent with Section 175.361, Florida Statutes and applicable Federal Law as they exist now or may exist in the future.

 

 

 

 

Section 6.3 Authority of Retirement Committee is being amended to reference provisions of the written investment policy and applicable Florida Statutes set forth in Sections 175.071, 215.47 and 112.661.

 

Section 6.4(b) Applicable Law is being amended to reference applicable mandatory provisions of federal and state law.  Specifically item 15 Referencing Subsection 215.47.

 

Section 7.4 Termination of Plan and Distribution of Trust Fund was amended to read Termination of Plan and Distribution of Fund.  Plan repeal or termination of Plan shall be consistent with section 175.361, Florida Statutes and Applicable Federal Law as they now exist or may exist in the future.

 

 

Options:

1.  Adopt ordinance amending Sections 1.1, 3.1, 4.5, 5.5, 6.3, 6.4 and 7.4 with Amendment Five of the City of Leesburg Municipal Firemen's Retirement Plan; or,

2.  Such alternative action as the Commission may deem appropriate

 

 

Fiscal Impact

The Actuary for the plan, Foster and Foster, Inc., has reviewed the proposed ordinance and determined that there is no cost associated with its adoption.

 

 

Submission Date and Time:    2/19/2010 10:07 AM____

 

Department: __Finance_____________

Prepared by:  __JB__________________                     

Attachments:         Yes_X__   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ___JB___

 

Finance  Dept. _____________JB___                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________


 

ORDINANCE NO. 10-______

 

 

AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, AMENDING THE CITY OF LEESBURG MUNICIPAL FIREMEN'S RETIREMENT PLAN BY AMENDING SECTION 1.1, "DEFINITIONS", SPECIFICALLY “CREDITED SERVICE” AND “SERVICE”; SECTION 3.1, "OPTIONAL FORMS OF RETIREMENT INCOME"; SECTION 4.5, "BENEFITS NOT ASSIGNABLE"; SECTION 5.5, “TERMINATION OF PLAN”; SECTION 6.3 (B), “AUTHORITY OF THE RETIREMENT COMMITTEE”; SECTION 6.4 (b), "APPLICABLE LAW"; AND SECTION 7.4, “TERMINATION OF PLAN AND DISTRIBUTION OF TRUST FUND”; PROVIDING THAT INVALIDITY OF ANY PORTION HEREOF SHALL NOT AFFECT THE REMAINING PORTIONS OF THIS ORDINANCE; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR A RETROACTIVE EFFECTIVE DATE.

 

WHEREAS, Section 175.351, Florida Statutes, provides that in order to participate in the distribution of the tax fund established pursuant to Section 175.101, Florida Statutes, municipal firefighter pension plans must meet the minimum benefits and minimum standards set forth in Chapter 175, Florida Statutes; and

WHEREAS, Chapter No. 2009-97, Laws of Florida, amends Chapter 175, Florida Statutes, and authorizes and/or requires changes in the retirement plan; and

            WHEREAS, the federal Heroes Earnings Assistance and Relief Tax (HEART) Act of 2008 requires changes to the retirement plan; and

WHEREAS, the City Commission of the City of Leesburg has the power by virtue of Section 3.5 of said amended and restated Retirement Plan to amend the City of Leesburg Municipal Firemen's Retirement Plan; and

WHEREAS, the Retirement Committee of the City of Leesburg Municipal Firemen's Retirement Plan, in consultation with the Retirement Committee's attorney has recommended the amendment of the Plan as set forth in attached Amendment Five; and

WHEREAS, the Leesburg City Commission has considered the changes set forth in the attached Amendment Five, and desires to hereby adopt and establish same in force and effect in the City of Leesburg, Florida;

NOW, THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA:

SECTION I.

The City of Leesburg Municipal Firemen's Retirement Plan as amended and restated, effective April 1, 2000, as further amended effective October 1, 2003, as further amended effective January 28, 2008, as further amended effective October 1, 2008, is hereby amended as set forth in the attached Amendment Five which is attached to this Ordinance and by reference incorporated herein and made a part hereof, and said Amendment Five is hereby approved and adopted.

SECTION II.

The provisions of said Amendment Five to the City of Leesburg Municipal Firemen's Retirement Plan, shall be effective retroactive to October 1, 2009.

SECTION III.

The Mayor and City Clerk of the City of Leesburg are hereby authorized and directed to execute said Amendment Five attached to this Ordinance for and on behalf of the City of Leesburg.

 

 

 

 

SECTION IV.

The provisions of this Ordinance are severable and if any section, sentence, clause, or phrase hereof is for any reason held to be unconstitutional, invalid or ineffective, such holding shall not affect the validity of the remaining portions of this Ordinance, it being expressly declared to be the City Commission's intent that it would have passed the valid portions of this Ordinance without the inclusion therein of any invalid portion or portions.

SECTION V.

All ordinances or parts of ordinances which are in conflict with this Ordinance are hereby repealed.

SECTION VI.

This Ordinance shall become effective upon its passage and adoption according to law.

PASSED ON THE SECOND READING AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida held on this ____ day of _________________, 2010.

 

THE CITY OF LEESBURG, FLORIDA

 

 

BY:                                                                 

Mayor

 

 

Attest:                                                            

                        City Clerk

 

 

 

F:\WP\Leesburg Fire\Ordinances\Ordinance No. 10-    .01.06.10.doc