Chapter 121 - Police and Firefighters
Pension Plan - Revised 11-28-06
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121.210 Transfer of terminal leave. |
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NOTE: Chapter 121 and Section 116.606 (d) as recited herein reflects a compilation of the recodification Ordinance 97-340-E as amended and supplemented by the DROP Ordinance 97-1103-E, Ordinance 98-990-E, Ordinance 1999-44-E, Ordinance 1999-472-E which amended the DROP Ordinance, Ordinance 1999-1019-E which addressed supplemental recodification efforts, and Ordinance 2000-704-E, Ordinance 2000-936-E, Ordinance 2000-1164-E, Ordinance 2001-623-E, Ordinance 2002-445-E, Ordinance 2002-1213-E, Ordinance 2003-303-E, Ordinance 2003-618-E, Ordinance 2002-1213-E, Ordinance 2003-428-E, and Ordinance 2003-1337-E. (All conforming to Ordinance Code Supplement No. 6). Also Ordinance 2003-618-E, Ordinance 2003-899-E, Ordinance 2003-1338-E, Ordinance 2004-377-E, Ordinance 2005-373-E, Ordinance 2006-947-E, Ordinance 2006-1009-E, and Ordinance 2006-1109. |
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Part 1. Police and Fire Pension Fund Administration
121.101 Control and Administration of Police and Fire Pension Fund.
(a) Pursuant to the requirements of F. S. Ch. 175 and F. S. Ch. 185, Florida Statutes, and notwithstanding any provisions to the contrary contained in, Laws of Florida, Ch. 18615 (1937), as amended; or this Chapter, the control and administration of the Police and Fire Pension Fund created by such special act shall be exercised by the Board of Trustees, (Board) Police and Fire Pension Fund as created and authorized by F.S. Ch. 175 and F.S. Ch. 185, Florida Statutes, and Article 22.01 of the City Charter as successor in interest to all of the authority and control previously exercised over such pension fund by the Board of Pension Administration. Employee members of the Board are entitled to leave of absence from their respective duties, without loss of vacation leave, pay, time or efficiency rating during the time which they are attending meetings of the Board or Board Committees, and at seminars, conference and training sessions conducted in Florida and elsewhere. Attendance at seminars, conferences and training sessions shall be approved by the Board in advance and the expense thereof paid from the Pension Fund, and written request for such leave shall be submitted in a timely manner.
(b) The Board is authorized to appoint administrative staff to assist in the management of the Police and Fire Pension Fund. Such employees shall be appointed employees of the Board.
(1) Any person in the classified civil service of the City of Jacksonville who is appointed to a position in the employ of the Board shall be deemed an unclassified employee while in the service of the Board, and shall serve at the pleasure of the Board. If such employee is then presently participating in the City's 1937 General Employees Pension Fund, and upon continuation shall make the required employee contributions thereto, and the contributions, which theretofore had been paid into the fund by the City, shall thereafter be assumed and paid by the Board.
(2) Any such person shall, however, retain his or her Civil Service status and be entitled to return to the same Civil Service classification rights, status, and job value as held at the time of such appointment.
(3) Any person employed by the Board shall be subject to such terms and conditions as shall be set by the Board.
(c) The Board may use the Central Services of the City, but is not required to do so. Central Services and other necessary charges by the City to the Board shall be paid from the Police and Fire Pension Fund.
(d) The Board shall prepare and have approved by Council an annual budget. All expenses for the administration of the Police and Fire Pension Fund and the cost to retain a certified public accountant, actuary, investment performance evaluator and other professional services shall be paid from the Police and Fire Pension Fund.
(e) The Treasurer of the City shall be the treasurer for the Board and shall give such bond as prescribed by the Board.
121.102 Police and Fire Pension Plans.
Pursuant to Section 16.03 of the Charter, it is hereby established that the pension plans of the former City, namely:
(a) Laws of Fla. Ch. 18615 (1937), creating the 1937 Pension Fund for Police and Firemen,
(b) Laws of Fla. Ch. 7657 (1917), creating the 1917 Police Pension and Relief Fund, and
(c) Laws of Fla. Ch. 7175 (1915), creating the 1915 Fire Department Pension Fund, and
(d) Laws of Fla. Ch. 23259 (1945), all as amended, shall be administered and the investment of funds handled by the Board, in lieu of Commissions and/or Officers named in the Plans.
(e) Definitions of Membership Classes:
(1) Members: Are employees of the City of Jacksonville who have enrolled in the Police and Fire Pension Plan and are contributing to the Plan through payroll deduction.
(2) Qualified Members: Are employees of the City who have elected to participate in the deferred retirement option program.
(3) Beneficiary: Are former active members who have completed five or more years of credited service as active members and have either (1) vested their service for deferred retirement (Inactive Beneficiary) or (2) have met time and service requirements for retirement, or are retired as totally and permanently disabled while an active member, or anyone receiving benefits as a surviving spouse or minor child of a member (Active Beneficiary). In the case of the distribution of DROP benefits, the estate of the Qualified Member or former Qualified Member may also be considered to be a Beneficiary in the event that there is no surviving spouse.
121.103 Advisory Committee.
There shall be an advisory committee composed of three police officers and three firefighters who are members or qualified members of the fund and one person who has retired from the fund. The Trustees shall establish the rules and regulations for the election. Advisory Committee members shall be elected for a four-year term, with the election in November of odd-numbered years, with those elected to take office on the first Monday of the following January. The police officers shall be elected by police officers, the firefighters shall be elected by firefighters, who are members or qualified members of the fund. The retired member shall be elected by a vote of the retired members as a group. The Advisory Committee shall elect a chair and vice chair, who shall serve for a period of one year. Any vacancy on the Advisory Committee shall be filled by an election from the ranks of the service represented by the vacancy, with both members and qualified members of the fund eligible to vote on such elections. All applications for pension benefits shall be referred to and reviewed by the Advisory Committee. Employee members of the Advisory Committee are entitled to leave of absence from their respective duties, without loss of vacation leave, pay, time or efficiency rating, during the time which they are attending meetings of the Advisory Committee, or to attend seminars, conferences and training sessions conducted in Florida and elsewhere. Attendance at seminars, conferences and training sessions shall be approved by the Board in advance and the expense paid from the Pension Fund, and written request for such leave shall be submitted in a timely manner.
121.104 Review of proposed legislation.
Prior to the adoption of any proposed legislation concerning the Police and Fire Pension Fund, the legislation, whether in general or for an individual, shall be presented to the Board for review and comment. The Council shall consider such comments but shall not be bound by them. An actuarial report together with recommendations and comments from the State Division of Retirement shall accompany all proposed legislation concerning the Police and Fire Pension Fund before the last public hearing is held by the Council in conjunction with the legislation.
121.105 Pensioner's rights upon reemployment by City.
(a) Notwithstanding any provisions to the contrary contained in Laws of Fla. Ch. 18615 (1937), as amended; or Laws of Fla. Ch. 23259 (1945), as amended; any pensioner of the pension funds created by these acts who is retired or elects to retire under the provisions of his respective fund for time-service retirement or vested retirement and who has been or is thereafter reemployed by the City shall cease to receive his or her pension or pension entitlement during such period of reemployment, except as further provided by this Section. The pensioner upon reemployment including appointed positions, shall be required to join the applicable pension fund and make the required contribution payments into the fund and shall be entitled to the benefits of the fund, except for participation in the DROP Plan as created in Section 121.209 for those reemployed members who were former DROP participants, during his or her period of reemployment not inconsistent with the intent of this Section.
(b) A pensioner of the pension funds listed in subsection (a) of this Section who has been reemployed by the City for a continuous period of at least four years shall be entitled to receive time-service credit in whatever increased pension benefits as are provided for under his pension fund for his former period of employment by City as if such former period of employment and the period which he served upon reemployment were continuous or consecutive years; provided, that the computation of such reemployed pensioners' retirement benefit entitlement shall be based on the average monthly salary he received over the last five years of his employment by the City; and further provided, that in the event a pensioner is reemployed by the City in a position which required that he become a member of a pension fund other than the one from which he retired and such pensioner elects to receive the additional benefits provided by this Section, the retirement benefits payable to such pensioner upon subsequent retirement from the City shall be prorated between the respective pension funds to which the pensioner contributed during his periods of employment with the City.
(c) Application for the time service credit and increased benefits provided for in this Section shall be made to the Board pursuant to the rules and regulations promulgated by it for the administration of this Section.
(d) Notwithstanding the provisions of any other law or ordinance to the contrary, any retiree under the City of Jacksonville's Police and Fire Pension Plan, who otherwise qualifies, may be reemployed by the office of the Sheriff as a Temporary Part Time Court Bailiff or a Logistical and Technical Support Officer, without loss of retirement benefits from the Police and Fire Pension Fund because of such employment. Under no circumstances can any such retiree acquire time service credit during such employment for the Police and Fire Pension Fund or any other City Pension Fund.
121.106 Refund of Pension contribution after vesting.
Notwithstanding anything to the contrary contained in Laws of Fla. Ch. 18615 (1937), as amended, in the event a member of the Pension Fund created by this law elected or elects to vest early under the provisions of this fund, the member shall have the right to rescind his vesting and receive a refund of 100 percent of the pension contributions he has contributed to his Pension Fund without interest, upon proper application to the Board, requesting the refund. Acceptance of the refund of employee contributions constitutes an irrevocable waiver of all rights to benefits from the Plan.
121.107 Credit for broken service, continous service, partial year's transferability, and service as a Florida State Certified Police Officer or Fire Fighter.
(a) A person who becomes a member of the Police and Fire Pension Fund who is not a retiree of any current or former pension plan of the City of Jacksonville or Duval County, or is not a retiree nor has attained vested status under the Florida Retirement System or the City of Atlantic Beach, shall be entitled to receive time service credit for any previous period of full time employment either continuous or broken with the City or its independent agencies, authorities or boards, or the City of Atlantic Beach Fire Department, provided such service has not been used for entitlement to benefits under any other pension system with such entitlement resulting from the attainment of vested status under such other pension system. For purposes of applying these provisions, a member who has previously attained vested status and accordingly has previously secured a legal claim to an entitlement to benefits under another pension plan shall not be entitled to time service credit for such periods of full time employment notwithstanding the fact that the member may have abandoned or rejected such vested status or legal claim to the receipt of future benefits by requesting a refund of contributions or otherwise. However, such general prohibitions shall not preclude a former member of the Fund from purchasing previous vested service with the Fund for which a refund of contributions was previously received and for which the former member has not otherwise used for entitlement to benefits under any other pension system. To be entitled to credit, a member shall make application for credit to the Board at any time prior to retirement. Furthermore, the employee shall pay into the fund a sum of money equal to the percentage of his current monthly salary required to be contributed by the fund of which he is a member multiplied by the number of months and fractional parts thereof for the entire period of time for which credit is being sought or on such other terms as the Board shall determine.
(b) Notwithstanding anything to the contrary contained in Section (a) above or in Chapter 18615, Laws of Florida, Special Acts of 1937, as amended, a person who becomes a member of the Police and Fire Pension Fund, from the General Employees Pension Fund or the City of Atlantic Beach Fire Pension Fund without a break in service, shall be entitled to time-service credit for the number of months and fractional parts thereof the member accrued in the previous pension fund for computation of pension benefits as stated in the time-service transfer provisions of the enumerated pension law upon transfer of the members accumulated member and employer contributions from the former fund.
(c) For purposes of applying this Section, "full-time employment" shall mean regular employment as permanent, probationary, provisional, grant or appointed employees involving a regular work week of at least 40 hours. Employment in such eligible positions are generally represented by positions that are included in the maximum authorized number of employees set forth in the annual City budget ordinance. As such, "full-time employment" specifically does not include forms of employment represented by temporary employees (described in 106.404), part-time employees, or seasonal employees. The following types of employment are considered to be in the category of temporary, part-time, or seasonal employees and accordingly, such specifically named categories of employment do not qualify as "full-time employment" for purposes of this Section:
1. Court Bailiffs, 2. Volunteer Firefighters, 3. Auxiliary law enforcement officers, 4. Elections workers, 5. Student positions and summer help, 6. Contract employees, and 7. Positions filled through employment agencies.
The above listing is not intended to represent an exhaustive compilation of all of the forms of temporary, part-time, and seasonal employment which are excluded from the definition of "full-time employment".
(d) A person who becomes a Member of the Police and Fire Pension Fund who is not a retiree and who has not attained vested status under any other governmental retirement system shall be entitled to purchase time service credit for up to five (5) years of full time employment as a Police Officer under the provisions of Florida Statutes Chapter 943, or as a certified Fire Fighter under the provisions of Florida Statutes Chapter 633. To be entitled to pension credit, a Member shall make application to the Board at any time prior to retirement. Furthermore, the employee shall pay into the Pension Fund a sum equal to twenty (20) percent of his or her current monthly salary multiplied by the number of months (sixty (60) months maximum) for which credit is being sought, on such terms as the Board shall determine.
121.108 Elected officials entitled to pension benefits.
Notwithstanding the provisions of Laws of Fla. Ch. 18615 (1937), as amended, or Laws of Fla. Ch. 23259 (1945), as amended; an elected officer of the City shall be entitled to receive any pension to which he may be entitled under the pension plans created by such laws, in addition to the salary of the office.
121.109 Limitations on granting disability pensions.
No disability pension shall be granted to any participant for total and permanent disability if the physical or mental condition is attributable in whole or in substantial part to any of the following:
(a) Chronic alcoholism;
(b) Addiction to narcotic or hallucinogenic drugs (other than drugs prescribed for such person by a physician for the treatment of conditions other than drug addiction);
(c) Intentionally self-inflicted wounds or conditions;
(d) injuries suffered while engaged in a felonious or criminal act or enterprise; or
(e) Injuries suffered while in the employment of another employer, excluding the armed forces of the United States, which entitle the participant to disability benefits from such other employer.
(f) Pre-existing conditions identified at the time of approval of membership.
121.110 Limitation on membership.
Admission to membership in the Police and Fire Pension Fund may require a waiver for pre-existing conditions:
(a) For any of the conditions set forth in section 121.109, and
(b) For a previous record of injuries or illnesses.
121.111 Temporary disability pension.
(a) Any member of the Police and Fire Pension Fund created by Laws of Fla. Ch. 18615 (1937), as amended, Laws of Fla. Ch. 23259 (1945), as amended; who, after making proper application for disability retirement and prior to such application being approved, exhausts all earned leave time and is removed from the payroll, shall receive, beginning with the following pay period, a temporary pension in the amount of the said application, while the application is pending before the Board, for a period not to exceed six months.
(b) In the event the application is approved, the effective date of the pension shall be the day payment of the temporary pension began. In the event the pension application is not approved, repayment shall be made to the pension fund in an amount equal to the temporary pension payment paid to the applicant, which shall be deducted from his salary in an amount not to exceed ten percent of his gross salary per pay period, unless the applicant files a written request with the Board that a larger amount than ten percent of his gross salary be withheld from his salary.
(c) In the event the application for a disability pension is denied by the Board of Pension Administration and a new application for a disability pension is made by the member within six months of the denial, the provisions of this Section as they apply to the new application shall not become effective until approved by the Board as required for other pension entitlements.
121.112 Periodic physical examination may be required; cessation of pension.
(a) The Board, upon its own motion or upon request of the Pension Advisory Committee or appointing authority, may require a pensioner to submit to a medical examination at the cost of the fund from time to time, but not more often than once in any six months, to determine the extent of recovery of the pensioner from his incapacity. Within 15 days of his being required to submit to the medical examination, the pensioner shall select a Board Certified physician or surgeon specializing in the field of the disability, who, acting with the Medical Director of the fund shall select another Board Certified physician or surgeon specializing in the field of the disability. These three physicians shall constitute the medical review committee, and examine the pensioner within 30 days of the selection of third physician. The findings of a majority of the three examiners shall be final as to the physical condition of the pensioner to resume his duties. The reports of the physicians shall be filed with the Board and a copy sent certified mail to the pensioner.
(b) The Board shall, by rule, establish procedures for the re-examination of applicants for disability, for the conduct of disability retirement hearings, for review of said hearings by a court of competent jurisdiction.
(c) In the event the Board determines that the pensioner is no longer permanently and totally disabled from useful and efficient service as a police officer or firefighter, the Board shall notify the appointing authority and the pensioner in writing. The pensioner shall be ordered by the appointing authority to report for employment in his former position, subject at all times to the Personnel Rules and Regulations.
(d) Notice of the order to report for employment shall be given by the appointing authority to the pensioner by registered mail, and the pensioner shall report for work within ten days from the mailing of the notice or at such later date as the appointing authority shall designate therein, his pension shall thereupon cease and terminate.
(e) A pensioner who refuses or fails to submit to a medical examination as required herein or return to employment in accordance with an order, or who, after being determined to be no longer disabled elects not to return to employment with the City, shall forfeit all rights and claims to further payments of pension, and his pension shall thereupon cease and terminate.
(f) To safeguard the assets of the Fund, the Board is authorized to establish an Affidavit Program for the purpose of annually certifying the accuracy of the pension payroll. This program shall require from each pensioner and beneficiary, on an annual basis, the execution of a notarized Affidavit of Eligibility certifying that the recipient is entitled to continue receiving pension benefits. In the event that the pension recipient fails to provide the required affidavit of continued eligibility, the recipient shall be subject to the suspension of pension benefits in accordance with rules and regulations prescribed by the Board. Prior to the implementation of final steps to terminate the payment of pension benefits, the Administrator shall schedule an administrative hearing for the purpose of allowing the recipient the opportunity to show cause as to why a termination of pension benefits should not be implemented.
121.113 Calculation of pension contributions for Police and Fire Pension Fund.
The pension fund created by Laws of Fla. Ch. 18615 (1937), as amended, shall consist of moneys derived as follows:
(a) A deduction of seven percent per annum from all salaries (base salary, longevity, City college incentive, enhanced certification pay, emergency operation and hazardous duty pay; shift differential, and "upgrade" pay; and excluding all overtime, state incentive pay, reimbursed expenses and allowances such as cleaning/clothes allowances, and payments for unused accrued time), of all members of the Police and Fire Departments participating in this fund, or who will become members hereafter, to be deducted in installments from each periodical paycheck of each of these members, together with a sum equal to not less than the minimum recommended contribution in the most recent actuarial valuation of the fund expressed as a percent per annum of all salaries (as defined above) of all members of the Police and Fire Departments participating in this fund according to the amount thereof as set up in the current budget in each year hereafter, together with such additional sums as may be necessary to administer this fund, which two latter amounts shall be designated by the Board and certified to the Council for each fiscal year, and the Council shall thereupon place the amount so designated in the budget for the succeeding year and levy a tax there for, if necessary; except that the City may in good faith challenge the City contribution designated by the Board. In the Event of such a challenge, the Board's actuary and City's actuary shall agree on an impartial third actuary who shall resolve all disputes between the actuaries and whose decision shall be binging and final as between the Board and the City.
(b) Notwithstanding the deduction provided in subsection(a) of this Section, a deduction of two percent per annum shall be made from all salaries (as defined in Section 121.113(a)) with such amount being credited to the Pension Fund's Ordinance 91-1017-605, Base Benefit Fund from qualified members who elect to participate in the Deferred Retirement Option Program.
(c) In addition to the above described pension contributions, the fund shall receive all proceeds from the sale of surplus, lost, abandoned and unclaimed property held by the Office of the Sheriff, 30 percent of fines and court costs from charges of violations heard in County Court and 30 percent of all parking fines.
(d) The contributions made by each employee hereunder, effective January 1, 1988, shall be designated as City contributions pursuant to Section 414(h)(2) of the Internal Revenue Code of 1986, as amended. Such designation is contingent upon the contributions being excluded from the employee's gross income for federal income tax purposes. The City's Section 414(h)(2) contributions for each employee, effective January 1, 1988, shall be considered as the employee's accumulated contributions subject to refund under this subsection and to be taxable on return to the employee either in a retirement allowance or upon refund at termination pursuant to Section 72 or 402, IRC, as amended.
(e) The application of the employer pick up provisions of section 414(h)(2) of the Internal Revenue Code, as described above in 121.113(d) shall also extend to elective contributions made by payroll deduction installment payments for the purpose of securing service credit for prior service or additional service. As used herein, "elective contributions" shall include contributions initiated under conditions wherein, (i) a member is eligible to purchase credit for prior service under 121.107, of (ii) a former member who received a refund of contributions previously made to the fund who was subsequently rehired and again becomes a member and elects to repurchase such prior broken service under 121.107, (iii) a member who is eligible to purchase service as a police officer or firefighter within the State of Florida under 121.107(d), or (iv) a member who is eligible to purchase additional permissive service credit for wartime military service under 121.208. However, direct payments made by the member for elective contributions shall not qualify under the pick up provisions. In order to qualify for pre-tax treatment under Section 414(h)(2), elective contributions paid via payroll deduction installment payments must be made pursuant to the completion of a binding irrevocable payroll authorization executed by the member. Such employee contributions made through payroll deduction will be picked up and paid by the City with the member having no option of receiving such picked up amounts directly instead of having such amounts contributed to the fund. The payroll deduction authorization will state the number of pay periods during which the deduction(s) will be made, the dollar amount of the deduction(s), and that the plan will not accept direct payments from the member while the payroll deduction is in effect.
(f) For purposes of purchasing time service credits (or "elective contributions" as defined in 121.113(e)), the fund will additionally allow the lump sum amount of such purchases or "elective contributions" to be alternatively made in the form of the acceptance of a direct rollover of an eligible rollover distribution from one or more of the providers of the Deferred Compensation Plan administered by the City under Section 457 of the I.R.C. effective January 1, 2002.
Part 2. Pension Benefits
121.201 Retirement benefits.
Notwithstanding any provisions to the contrary in Chapter 18615, Laws of Fla. Ch. 18615 (1937), and to provide for an increase in the benefits thereby provided:
(a) Time service retirement. Members shall be entitled to a time service retirement benefit equal to a maximum of 80 percent of the average salary (as defined in Section 121.113 (a)) received by the member for the 52 pay periods immediately preceding the time of retirement, upon the completion of 30 years of credited service. For each year prior to the thirtieth year of service that a member retires, the 80 percent retirement benefit shall be reduced by two percent, of the average salary (as defined in Section 121.113 (a)) received by the member for the 52 pay periods immediately preceding the time of retirement, with the minimum normal retirement benefit being 60 percent after completion of 20 years of credited service.
(b) Disability retirement.
(1) Any member, who prior to reaching the minimum normal retirement becomes permanently and totally disabled from useful and efficient service as a police officer or firefighter, as established by competent medical evidence, shall be entitled to a disability retirement. The disability retirement benefit shall be equal to 60 percent of the average salary received by the member for the 52 pay periods immediately preceding the time of disability retirement. The Board shall establish the effective date on which the disability benefit shall commence. The Board shall, by rule, establish procedures for the examination of applicants for disability retirement, for the conduct of disability retirement hearings, for review of said hearings by a court of competent jurisdiction, and reexamination of retirees on disability pension. In the event the application for a disability pension is denied by the Board, then a new application for the same disability cannot be filed by the member within six months of the denial.
(2) Any member of the pension funds created by these acts who has been in the service of the City for a period of time equal to the minimum time necessary for time service retirement or more and becomes permanently and totally disabled from useful and efficient service shall be entitled to the same rate of pension benefit calculation of the average salary (as defined in Section 121.113 (a)) received by the member for the 52 pay periods immediately preceding the time of disability retirement as those members of his pension plan who retire on time service retirement. Any member who elects to retire under a disability pension as provided in this Section shall be required to meet the same requirements for a disability pension as are required for any other member of the respective fund requesting a disability retirement. The Board shall establish the effective date on which the disability benefit shall commence.
(3) In applying the provisions of this Section, the adjustment supplement described in 121.201 (d)(2) that is calculated for the benefit of a member and a surviving spouse shall be based upon the actual years of credited service, subject to the minimum and maximum provisions, rendered by the member.
(4) The Board shall establish the effective date on which the disability benefit shall commence. The Board shall, by rule, establish procedures for the examination of applicants for disability retirement, for the conduct of disability retirement hearings, for review of said hearings by a court of competent jurisdiction, and re-examination of retirees on disability pension. In the event the application for a disability pension is denied by the Board, a new application for the same disability cannot be filed by the member within six months of the denial.
(c) Vested retirement benefits.
(1) Members who terminate employment on or after the effective date of this Ordinance with five or more years of credited service and are not otherwise eligible to retire, are eligible to receive either a deferred retirement benefit of three percent of the average salary received by the member for the 52 pay periods immediately preceding the date of vesting, for each year of credited service prior to the date of vesting, to commence on the date the member would have been eligible to receive minimum time service benefits or be paid a refund of 100 percent of member contributions to the Plan without interest. Within 30 days of a member leaving the payroll prior to normal service retirement, the member must make the election in writing to either vest or the refund will be issued automatically. Acceptance of the refund of employee contributions constitutes an irrevocable waiver of all rights to benefits from the Plan.
(2) In the event that the Member who is entitled to vested retirement benefits becomes deceased prior to the scheduled date for the commencement of the payment of retirement benefits, the surviving spouse and/or children of such Member shall not be entitled to a refund of contributions nor shall they be entitled to the payment of survivors benefits otherwise extended to Members who completed the required number of years of service to become eligible for minimum time service benefits.
(3) Members who are entitled to receive vested retirement benefits are not eligible to qualify for potential enhancements pursuant to the minimum monthly pension provisions of section 121.301.
(d) Cost of Living Adjustments.
(1) A Cost of Living Adjustment (COLA) based on each prior annual benefit amount actually received (exclusive of onetime bonuses or adjustments) shall be provided for retirees and survivors. Beginning with the first bi-weekly pay period after January 1, 2007, and for the first bi-weekly pay period after each succeeding January 1, the recipient shall be granted a COLA in the amount of three (3) percent.
(2) In addition to the COLA, a minimum adjustment supplement of five (5) dollars per month for each year of actual credited service of the participant used to compute the pension benefit shall be provided for current and future retirees and their survivors, and it shall be paid beginning with the first full biweekly pay period after October 1, 2003, and continuously thereafter; provided however that such supplement shall be no less than twenty-five (25) dollars nor more than one hundred and fifty (150) dollars per month. The adjustment supplement described herein shall be based upon the member's actual years of service rather than imputed years of service, which is used for purposes of calculating pension benefits under the disability retirement provisions of section 121.201(b) and the surviving spouse provision of section 121.204(a), and becomes operative in the event of the disability or death of a member, respectively. The Mayor shall annually, each January, evaluate the annual cost of the foregoing adjustment supplement by comparing it to the City's annual cost to provide single employee group health insurance. In the event that the City's cost to provide such health insurance per employee is less than the amount of such supplement per retiree, then the supplement shall be reduced to the amount of the insurance cost.
(e) Deferred Retirement Option Program (DROP). A member eligible to receive normal retirement benefits as provided in Section 121.201 (a), may remain in the employment of the City until the elected termination date by electing to participate in the DROP, as provided in Section 121.209, deferring the receipt of such retirement benefits for a maximum of 130 full bi-weekly pay periods (60 months) from the date of participation in the Deferred Retirement Option Program.
(f) Limitations on benefits. Notwithstanding any benefit granted hereunder or under any other provision relating to benefits under the Police and Fire Pension Plan, benefit payments for any Member shall not exceed the maximum amount permitted under Section 415 of the Internal Revenue Code of 1986, as amended.
(g) Annual Compensation Limit. Section 401(a)(17) of the Internal Revenue Code establishes an annual compensation limit for each employee under a qualified plan. The provisions of Code Section 401(a)(17) are further described pursuant to Treasury Regulations Section 1.401(a)(17)-1. The Police and Fire Pension Plan incorporates by reference the annual compensation limit described under Section 401 (a)(17) and Treasury Regulations Section 1.401(a)(17)-1. Accordingly, the Plan acknowledges that the compensation taken into account for any Member of the Plan in determining plan allocations or benefit accruals for the plan is limited to the annual compensation limit as described in Internal Revenue Code Section 401(a)(17) and the Treasury Regulations related thereto. The Plan additionally elects to avail itself of the transition rule for governmental plans as described in Treasury Regulation Section 1.401(a)(17)-1(d)(4)(ii) which provides that "eligible participants", as such term is used in the regulations, will not be affected by the revised limit per the 1993 OBRA and accordingly such "eligible participants" may have their contributions and benefits computed by using compensation of more than $150,000.00 (as adjusted), so long as it does not exceed the limit in effect on July 1, 1993. All other plan participants ("non-eligible participants") shall be subject to the revised limits for plan years beginning after December 31, 1995.
(h) Requirements that Actuarial Assumptions be specified. Section 401(a)(25) of the Internal Revenue Code provides that whenever the amount of any benefit is to be determined on the basis of actuarial assumptions, such assumptions are specified in the plan in a way which precludes employer discretion. The provisions of Code Section 401(a)(25) and the linkage between the proper use of actuarial assumptions and the conclusion that the plan is established and maintained primarily to provide systematically for the payment of "definitely determinable benefits" to employees, is further described pursuant to Treasury Regulations Section 1.401-1(b)(1)(i). The Police and Fire Pension Plan incorporates by reference the requirements that actuarial assumptions be specified as described under Code Section 401(a)(25) and Treasury Regulations Section 1.401-1(b)(1)(i).
(i) Required distributions. Distributions from the Plan will be made in accordance with the requirements of the regulations under Internal Revenue Code Section 401(a)(9) and that any provisions in the Plan that are contradictory to the distribution requirements shall be overridden. In accordance therewith, distributions to participants must commence by the later of April 1 of the calendar year following the calendar year in which the employee attains the age of 70 ½, or April 1 of the calendar year following the calendar year in which the employee retires. In addition to meeting the minimum distribution amount, the distribution must also meet the incidental benefit requirements of Internal Revenue Code Section 401(a)(9)(g) and Proposed Regulations Sections 1.401(a)(9)-1 and 1.401(a)(9)-2.
121.202 Refund of members' contributions.
Members whether or not vested, who terminate employment on or after the effective date of this Section, prior to retirement, shall be paid a refund of 100 percent of their contributions to the Plan without interest. Acceptance of the refund of employee contributions constitutes an irrevocable waiver of all rights to benefits from the Plan.
121.203 Single member's death benefit.
In the event of the death of a member who does not have a surviving spouse or children, 100 percent of the member's contributions to the Plan without interest shall be payable to the estate of the member to be distributed in accordance with the law of the domicile of the member at the time of death. Acceptance of the refund of employee contribution constitutes an irrevocable waiver of all rights to benefits from the Plan.
121.204 Surviving spouse's benefits.
Notwithstanding the provisions of Laws of Fla. Ch. 18615 (1937), as amended; or Laws of Fla. Ch. 23259 (1945), as amended, and to increase the benefits thereby provided:
(a) Any member of the fund hereafter who shall be killed or die from effects of an injury or of any illness or disease and any such member so killed or dying shall have a spouse living with such member at time of death, the Board shall direct the payment from the fund of the following sum to the surviving spouse, 75 percent of the pension benefit the deceased member would be entitled to receive, had the member completed 20 years of credited service (60 percent of the average salary as defined in Section 121.113 (a) received by the member for the 52 pay periods immediately preceding the time of death) and survived to receive such pension. If a deceased member served in excess of 20 years, the 75 percent of the pension benefit shall be based upon the actual years of service. In applying the provisions of this Section, the adjustment supplement described in 121.201 (d)(2) that is calculated for the benefit of the surviving spouse shall be based upon the actual years of credited service, subject to the minimum and maximum provisions, rendered by the member rather than the assumed completion of 20 years of credited service otherwise acknowledged in this Section. The pension benefit as used herein shall be comprised of the base pension benefit as adjusted for the COLA, but exclusive of the adjustment supplement described in 121.201 (d)(2) which shall be 100 percent allocable to the surviving spouse.
(b) If any such beneficiary of the fund shall hereafter be killed or die and any such member so killed or dying shall have a spouse living with said beneficiary at time of death, the Board shall direct the payment from the fund of the following sum to the surviving spouse, 75 percent of the pension benefit the beneficiary was receiving. The pension benefit as used herein shall be comprised of the base pension benefit as adjusted for the COLA's previously credited to the record of the former member, but exclusive of the adjustment supplement described in 121.201 (d)(2) which shall be 100 percent allocable to the surviving spouse.
(c) Notwithstanding any other provision of law to the contrary, the surviving spouse of any pension participant member killed in the line of duty shall not lose survivor retirement benefits if the spouse remarries. The surviving spouse of such deceased member whose benefit terminated because of remarriage shall have the benefit reinstated as of July 1, 1994, at an amount that would have been payable had such benefit not been terminated.
(d) Notwithstanding any other provision of law to the contrary, the surviving spouse of any pension participant member who shall be killed or die from the effects of an injury, illness or disease outside of the line of duty shall not lose survivor retirement benefits if the spouse remarries after September 30, 2000. Surviving spouses who were removed from the pension rolls due to remarriage prior to October 1, 2000 shall continue to be ineligible for reinstatement of pension benefits so long as such previously existing marriage continues.
(e) In the event that a spouse of a deceased member is entitled, either now or in the future, to the receipt of retirement benefits by virtue of their employment with the City, such individual may simultaneously enjoy the receipt of City retirement benefits from such employment in addition to the receipt of City pension benefits as a surviving spouse that such individual was otherwise entitled to receive following the death of a member.
(f) In the event that a spouse of a deceased member is already receiving City retirement benefits as a surviving spouse from a previous marriage, such individual would only be entitled to the larger surviving spouse benefit calculated in conjunctin with such multiple marriages, but not both simultaneously. Stated differently, an individual may only receive a single surviving spouse benefit at a time. The receipt of multiple surviving spouse benefits under the Plan are prohibited.
121.205 Reinstatement of surviving spouse's benefits.
Notwithstanding any provision contained to the contrary in the Chapters enumerated in Section 121.102, a surviving spouse of a member or pensioner of any of these funds:
(a) Who was heretofore removed from the pension rolls due to marriage prior to October 1, 2000, and
(b) Whose marriage subsequently is or was dissolved by death or otherwise,
Upon application by the surviving spouse of the member or beneficiary for approval by the Trustees, shall have his or her name restored to the surviving spouse's pension roll and, thereafter, the reinstated surviving spouse shall be entitled to be paid the appropriate surviving spouse's benefit beginning no sooner than the date that the application for reinstatement was filed in writing with the Board. No surviving spouse shall receive more than one pension benefit pursuant to this Section at one time.
(c) Notwithstanding the foregoing, eligibility for the reinstatement of survivors benefits resulting from a temporary divorce and remarriage to the same individual subsequent to October 1,2000 shall be subject to the successful demonstration by the petitioner that such marital status changes were not unduly motivated by the desire to restore pension benefits.
121.206 Children's benefits.
(a) Notwithstanding any provisions to the contrary contained in Laws of Fla. Ch. 18615 (1937), as amended, or Laws of Fla. Ch. 23259 (1945), as amended; the amount of children's survivor pension benefit paid pursuant to these funds shall be increased to $200.00 per month; provided, that the conditions and maximum amounts established by the Pension Fund concerning children's benefits shall be followed and, in the event that any combination of survivor's benefits would exceed the amount allowable to the member had he received a pension under the Pension Fund, the benefits shall be calculated and prorated among the entitled beneficiaries in such a manner as not to exceed the maximum amount allowed to the member.
(b) If there is a surviving spouse, each child's benefit shall be $200.00 per month until (i) each child reaches age 18 years, whether or not the child is a qualified student, or (ii) each child reaches age 22, provided the child is a qualified student, or (iii) each child becomes married, whereupon the children's benefits described herein shall cease, provided that the total of the surviving spouse and children's benefits do not exceed the total of the deceased member's projected benefit. In addition thereto, each child of a surviving spouse shall be entitled to the receipt of the minimum adjustment supplement provided in Section 121.201 (d)(2).
(c) If there is no surviving spouse, each child under the age of 18 shall receive the greater of either: (a) $200.00 per month plus the minimum adjustment supplement provided in Section 121.201 (d)(2) or (b) a proportionate share of the surviving spouse's benefit (including the supplement) until (i) each child reaches age 18 years, whether or not the child is a qualified student, or (ii) until each child becomes married, whereupon the children's benefits described herein shall cease. If there is no surviving spouse, each child who is age 18 or over and who is a qualified student shall be entitled to the payment of a child's benefit of $200.00 per month until (i) each child reaches age 22, or (ii) until each child becomes married, whereupon the child's benefit described herein shall cease. In the event of multiple children causing the payment of a prorated benefit as each child no longer becomes eligible for the payment of children's benefits the remaining eligible children shall receive the greater of the benefits provided for in this Section up to the limits provided.
(d) If there is no surviving spouse due to deaths after September 30, 2000, each child who is disabled and reaches age 18 shall become entitled to the receipt of children's benefits for life at an amount equivalent to 50 percent of the benefit otherwise allocable to the surviving spouse. However, the continuance of such lifetime children's benefits for disabled children shall be subject to the continued presence of the disabling condition. In order to qualify for benefits under this subsection, a child must make proper application for benefits and secure the approval of the Trustees. Such approval shall be based upon a comprehensive review of all documents and evidence pertaining to the nature, severity and continuance of the disabling condition or affliction. The standards for the disability determination shall generally conform to those employed by the Social Security Administration in conjunction with the payment of Supplemental Security Income (SSI) benefits for children with disabilities. For purposes of this subsection, a child will be considered disabled if he or she has a physical or mental condition (or a combination of conditions) that results in "marked and severe functional limitations". The disabling condition must last or be expected to last at least 12 months or be expected to result in the child's death. In addition thereto, the approval for the payment of benefits under this subsection shall be subject to the application of a needs and means test, wherein alternative resources available to the child shall be taken into consideration along with an assessment of the ability of the child to perform any "substantial work".
(e) For purposes of applying subsections 121.206 (b) and (c), the term "qualified student" means an individual who is a full-time student at a qualified educational institution. For purposes of the foregoing, a "full-time student" is a person who is enrolled for the number of hours of courses the educational institution considers to be full-time attendance, and an "educational institution" means a school, qualified under Section 170 (b)(1)(A)(ii) of the Internal Revenue Code, maintaining a regular faculty and established curriculum, and having an organized body of students in attendance. In addition, such "educational institutions" include primary and secondary schools, colleges, universities, technical schools, mechanical schools, and similar institutions, but does not include non-educational institutions, on-the-job training, correspondence schools and the like.
Application for extended educational benefit payment must be made on the forms provided by the pension fund after the completion of each course period, and must be accompanied by notarized certification from the educational institution that the applicant was a full time student and satisfactorily completed the course work.
Extended educational benefits will be paid as soon as administratively practical.
121.207 Orphans benefits.
In lieu of the child's pension benefit payable to orphans pursuant to Laws of Fla. Ch. 18615 (1937) §6, as amended; or Laws of Fla. Ch. 23259 (1945), as amended; unmarried children of any employee or pensioner entitled to a pension under the pension fund who:
(a) Have not reached their eighteenth birthday whether or not they are a qualified student, or have not reached their twenty-second birthday, provided they are a qualified student as defined in subsection 121.206(e), and
(b) Shall become orphans by reason of the death of their surviving parent,
Shall receive as an increased pension benefit, individually if there is only one eligible child or jointly and equally if there is more than one eligible child, an amount equal to the benefit which would have been paid to a surviving spouse without children. The pension shall cease to be paid to orphans as they reach their eighteenth birthday (subject to continuance in the event of their status as a qualified student) or marry, but in cases of a joint pension the full amount thereof shall continue to be paid to the orphan or orphans still remaining eligible.
121.208 Purchase of wartime military service; military leaves of absence.
(a) Subject to the entitlement to benefit limitations described in Section 121.107(a) existing at the time of purchase, members of the Police and Fire Pension Fund may purchase up to 24 months of wartime military service for credited service towards retirement based on the following definitions: World War II, December 7, 1941 - December 31, 1946; Korean Conflict, June 27, 1950 - January 31, 1955; Vietnam Era, August 5, 1964 - May 7, 1975; Persian Gulf (Desert Shield and Desert Storm), August 2, 1990 - a date to be determined by Congress.
(b) Members of the fund must apply for purchase of wartime military service and will be required to pay into the Pension Fund an amount equal to 20 percent of the base pay the member was earning on the date of application, to be paid as directed by the Board. Notwithstanding the provisions contained herein and in Section 116.501, Ordinance Code, no member of the Fund shall be entitled to receive time service credit for military service that was rendered during periods where the member has already earned time service credit for such period(s) while serving as an active contributing member of the Fund.
(c) Section 116.501 shall govern the pension benefits available to a member of the Police and Fire Pension Fund who is on a military leave of absence, as described in Section 116.501(a).
121.209 Deferred Retirement Option Program (DROP).
In general, and subject to the provisions of this Section, the Deferred Retirement Option Program, hereinafter referred to as the DROP, is a program under which an eligible member of the plan, may elect to participate, deferring receipt of normal retirement benefits while continuing employment with the City without loss of any other employee benefits. Upon an eligible member's election to participate in the DROP, the amount of credited service and final average salary becomes frozen for purposes of determining pension benefits. Additional service beyond the date of entry into the DROP shall no longer accrue any additional benefits under the Pension Fund. The deferred monthly retirement benefits under the DROP shall accrue in the fund on behalf of the participant, plus interest compounded monthly, as provided in subsection (c) (1)of this Section, for the specified period of the DROP participation, as provided in subsection (b) (1)of this Section. Upon termination of employment, the participant shall receive the total DROP benefits, as provided in Section 121.209 (c), and begin to receive the previously determined normal retirement benefits.
(a) Eligibility of Member to Participate in the DROP. All Members who are eligible to, may elect participation in the DROP, provided Members comply administratively with the rules and regulations established by the Board for the administration of the DROP.
(1) A Member who is eligible to receive normal retirement benefits under Section 121.201(a) may participate in the DROP providing the member elects to participate within the time limits contained in Section 121.209 (b)(1).
(2) Election to participate is made on a date following the date on which the Member first reaches the minimum normal retirement benefit after completion of 20 years of credited service.
(3) An eligible Member may elect to participate in the DROP by complying with the election process established by the Board.
(b) Participation in the DROP.
(1) An eligible member may elect to participate in the DROP for a period not to exceed a maximum of 130 full bi-weekly pay periods (60 months) following the date on which the member begins participation in the DROP. The following time limits will apply for eligibility to elect to participate in the DROP.
|
Years of Credited Service
at Time of Election |
Maximum Pay Periods
of Participation |
Maximum Months
of Participation |
| 20 but less than 30 Years |
130 bi-weekly |
60 |
| 30 but less than 31 Years |
78 bi-weekly |
36 |
| 31 but less than 32 Years |
52 bi-weekly |
24 |
A member who reaches 32 years of service after the effective date of this Section and who fails to make an election prior to attaining 32 years of service shall forfeit all rights to participate in the DROP. Notwithstanding the time limits described above, members who previously elected to participate in the DROP for a period of 48 months shall have their period of participation in the DROP extended to a period of 60 months.
(2) Upon participation in the DROP, the member shall be deemed a "qualified member" as defined in Section 121.102 (e)(2).
(3) The beginning date of the DROP period shall be the first full bi-weekly pay period after the first day of January, April, July or October subsequent to the date of election to participate, or as soon as administratively practical thereafter, and shall not exceed the DROP participation period as provided in (b)(1), above.
(4) Upon electing to participate in the DROP , the Member shall submit on forms prescribed and required by the Board:
(i) A written election to participate in the DROP;
(ii) Selection of the DROP participation and retirement dates, which satisfy the limitation stated in subsection (b)(1) of this Section. Such retirement date shall be in a binding application for retirement with the employer establishing a deferred retirement date. The member may change the deferred retirement date within the limitations of subsection (b)(1) of this Section on forms required by the board;
(iii) A written notification advising the member's employer of the date on which the DROP shall begin for the member;
(iv) A properly completed DROP application for service retirement as provided in this Section; and
(v) Any other forms required by the Board.
(5) The DROP participant shall be a retiree under the Pension Plan for calculation of increased pension benefits, unless otherwise prescribed herein, but not for the purposes of employment with the City, and the availability of employee benefits and programs related thereto. DROP participants shall additionally continue to be eligible to vote for their respective members of the Advisory Committee and the Board of Pension Trustee.
(6) Except as provided by subsection (g) of this Section with respect to elected or appointed officials, election to participate in the DROP, once approved by the Board, is irrevocable.
(c) Benefits payable under the DROP.
(1) Effective with the date of DROP participation, the member's initial normal retirement benefit, including creditable service and average compensation, as provided in Section 121.201 (a) and the effective date of retirement shall be fixed. Such normal retirement benefits, together with annual cost of living adjustments as provided in Section 121.201 (d), and interest, shall accrue monthly in the fund for the benefit of the DROP participant. Such interest shall produce an annual rate of return of 8.40 percent. Interest calculations shall be administered in accordance with rules prescribed by the board and interest distributions shall be credited using the 30 day month/360 day year method of calculation.
(2) The normal retirement benefit and interest thereon shall continue to accrue in the DROP until the established termination date of the DROP, or until the participant terminates employment or dies prior to such date. Although individual DROP accounts shall not be established, a separate accounting of each participant's accrued benefits under the DROP shall be calculated and provided to participants annually by the Board.
(3) At the conclusion of the participant's DROP and termination of employment with the City, the Board shall distribute the participant's total accumulated DROP benefits, as soon as administratively practical, subject to the following provisions:
(i) The Board shall receive written verification by the participant's employer that such participant has terminated employment as provided in subsection (b)(4)(ii) of this Section.
(ii) The terminated DROP participant or if deceased, such participant's surviving spouse or representative, shall elect on forms provided by the Board to receive payment of the DROP benefits in accordance with one of the options listed below. For a DROP participant who fails to elect a method of payment within 30 days of termination of the DROP, the Board will pay a lump sum as provided in subsection (a), below, as soon as administratively practical. For a surviving spouse of a current or former DROP participant who fails to elect a method of payment within 90 days of the date of death of the current or former DROP participant, the Board will pay a lump sum as provided in subsection (a), below, as soon as administratively practical.
(a). Lump sum. All accrued DROP benefits, plus interest, less withholding taxes remitted to the Internal Revenue Service, shall be paid to the DROP participant or surviving spouse.
(b). Direct rollover. All accrued DROP benefits, plus interest, shall be paid from the DROP directly to the custodian of an eligible retirement plan as defined in Section 402(c)(8)(B) of the Internal Revenue Code. However, in the case of an eligible rollover distribution to the surviving spouse of the deceased participant, an eligible retirement plan is an individual retirement account or an individual retirement annuity as described in Section 402(c)(9) of the Internal Revenue Code. For purpose of this subsection, an eligible retirement plan shall also mean an annuity contract described in Section 403(b) of the Internal Revenue Code and 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 which accepts rollovers and which agrees to separately account for amounts transferred into such plan from this plan. However,in the case of an eligible rollover distribution to the surviving spouse of the deceased participant, an eligible retirement plan is an individual retirement account or an individual retirement annuity as described in Section 402 (c)(9) of the Internal Revenue Code.
(c). Partial lump sum. A portion of the accrued DROP benefits shall be paid to the DROP participant or surviving spouse, less withholding taxes remitted to the Internal Revenue Service, and the remaining DROP benefits shall be transferred directly to the custodian of an eligible retirement plan as defined in Section 402(c)(8)(B) of the Internal Revenue Code. However, in the case of an eligible rollover distribution to the surviving spouse of a deceased participant, an eligible retirement plan is an individual retirement account or an individual retirement annuity as described in Section 402(c)(9) of the Internal Revenue Code. The proportions shall be specified by the DROP participant or surviving spouse.
(d). Monthly distribution. The account balance shall be distributed in a monthly amount paid bi-weekly, until the DROP account is depleted, over an annual period to be selected by the participant or the surviving spouse, less withholding taxes remitted to the Internal Revenue Service. Such selection once made, cannot be changed, unless changed to Option (a), or (b), above. The annual rate of interest to be factored into such distribution period shall be 8.40 percent. Notwithstanding the foregoing, in the event that the participant selected a payout period over the participant's life expectancy or over the joint life expectancies of the participant and the participant's spouse in order to avoid the application of the 10 percent additional tax on early distributions reflected in Section 72(t) of the Internal Revenue Code, such participant may shorten the number of bi-weekly payout periods originally selected by the participant, provided that the timing of such modification conforms to the standards described in Section 72(t)(4) of the Internal Revenue Code.
(iii) The form of payment selected by the DROP participant or surviving spouse shall comply with the minimum distribution requirements per Section 401(a)(9) of the Internal Revenue Code.
(iv) Subsequent to the month of termination or death, the accrual of interest on the accumulated DROP balance shall cease, provided however, that an interest factor shall be embedded in the distribution options described in (d),above, from the initial bi-weekly distribution which shall commence upon the execution of proper election forms by the DROP participant or the surviving spouse.
(4) The accrued benefits of any DROP participant and any contributions accumulated under such program, shall not be subject to assignment, execution, attachment, or to any legal process whatsoever, except for federal income tax levies.
(5) DROP participants shall not be eligible for the disability retirement benefits provided in Section 121.201(b) of this Chapter.
(d) Death Benefits Under the DROP.
(1) The surviving spouse of DROP participants shall not be eligible for the calculation of pension benefits under Section 121.204(a) of this Chapter.
(2) Upon the death of a DROP participant, contributions to the DROP shall cease and the surviving spouse shall be entitled to apply for and receive the accrued benefits in the DROP as provided in subsection 121.209 (c)(2), and apply for surviving spouse benefits in accordance with the provision of Section 121.204 (b). If there is no surviving spouse, the accrued benefits in the DROP will be paid to the estate of the qualified member as provided by law.
(3) The normal retirement benefit accrued for the benefit of the DROP participant during the month of a participant's death, shall be the final monthly benefit credited for such DROP participant.
(4) The Single Member Death Benefit under Section 121.203 of this Chapter in the event of death during the DROP period will not be paid.
(5) Eligibility to participate in the DROP terminates upon the death of the participant. If the participant dies on or after the effective date of enrollment in the DROP, but prior to the first monthly benefit being credited to the DROP, retirement benefits shall be paid to the surviving spouse in accordance with the provisions of Section 121.204 (b) and (c).
(e) Cost of living adjustment. On the first full bi-weekly pay period after April 1, 2000 or as soon as administratively practical thereafter, and for the first full bi-weekly pay period after each succeeding April 1st, the deferred retirement benefit may be increased, under the provisions of Section 121.201 (d) (1), if applicable.
(f) Health Insurance Subsidy. DROP participants are not eligible for the health insurance subsidy as provided in Section 121.201 (d)(2) of this Chapter until termination of employment is effectuated.
(g) DROP recission for elected or appointed officials or appointed employees. The irrevocable nature of DROP participation shall not apply in the case of a DROP participant who becomes an elected or appointed official or an appointed employee with such member being granted the option of rescinding DROP participation within one (1) calendar year of election or appointment. In such event of DROP recission, the elected or appointed official or the appointed employee shall be granted pension service credit for DROP participation periods, the City shall be assessed the amount of City contributions that otherwise would have been remitted to the fund by the City during the DROP period, the member will be required to make the contributions in accordance with the provisions of Section 121.113, and the retirement leave account frozen and removed pursuant to Section 8 of Ordinance 97-1103-E shall be restored. All deposits plus interest into the DROP account will revert to the fund. Such appointed and elected officials or appointed employees shall be permitted to re-enroll into the DROP at a later date. However, members who were former DROP participants and who retired while in such status shall not be eligible to rejoin membership into the fund.
(h) Bonus check. DROP participants are not eligible to receive bonus check distributions that are periodically distributed to beneficiaries until termination of employment is effectuated. In addition, the initial bonus check to be distributed to a former DROP participant subsequent to such participant's termination of employment shall be prorated from the ending payroll date of DROP participation.
(i) Contributions and deductions.
(1) The employer contributions on the salary, as defined in Section 121.113 (a), of DROP participants shall be zero percent.
(2) A deduction of two percent per annum shall be made from all salaries (as defined in Section 121.113 (a)) of DROP participants as the contribution from the participant during the period of DROP participation, with such amount being credited to the Base Benefits Fund.
(3) Members of the fund may be removed from the regular City payroll for a variety of reasons. Such circumstances may include various forms of requested leaves of absence without pay, suspensions without pay, terminations under appeal, and removals pending the outcome of criminal charges. DROP participants who may be removed from the regular City payroll for all or a portion of a particular pay period(s), which is not covered by the use of leave balances, are unable to comply with the obligation to make the payment of the two percent per annum deduction from salaries referenced under Section 121.209 (i)(2). During such period of non-compliance (except in the case of military leaves of absence which shall be governed in accordance with F.S.§ 115.12), the participant shall experience an interruption in the bi-weekly remittances to the participant's DROP account and such period of interruption shall count against the selected period of DROP participation. However, in the event that any such period of involuntary leave without pay was reversed and such period was accompanied by the award of back-pay from which the required DROP contribution is assessed, the DROP remittances which were interrupted during such period shall be credited to the participant's DROP account, along with any deferred interest related thereto.
(j) Forfeiture of retirement benefits. Nothing in this Section shall be construed to remove DROP participants from the scope of Fla. Const. Article II, Section 8 (d), F.S.§ 112.3173 or Section 121.304 of this Chapter. A DROP participant who commits a specified felony offense while employed will be subject to forfeiture of all retirement benefits, including DROP benefits, pursuant to those provisions of law.
(k) Administration of the DROP. The Board shall make such rules as are necessary for the effective and efficient administration of the DROP. Neither the Board or staff of the Fund shall advise members of the federal tax consequences of an election related to the DROP. A copy of the rules and regulations governing the DROP shall be on file with the Council Secretary and with the Board.
(l) Retirement leave account distribution during the DROP. Members who have a balance in their retirement leave account will have the account paid in accordance with Ordinance Code Section 116.606.
121.210 Transfer of terminal leave.
(a) Members eligible to receive payment of terminal leave upon separation from service may elect, prior to the date that they become eligible to receive a cash payment of accumulated leave, to have all or a portion of the leave transferred to the Plan. Members on whose behalf leave has been transferred may elect, in accordance with uniform rules established by the Board, one or a combination of the following options, up to the amount of the transferred leave balance (Option 3 is only available if separation is due to a time service or disability retirement under a state of City pension plan):
Option 1: Receive a lump sum equal to all, a portion of, the transferred leave balance; or
Option 2: Transfer all, or a portion of to the extent allowed by law, the transferred leave balance to any other qualified retirement plan; or
Option 3: Utilize all, or a portion of to the extent allowed by law, the value of the transferred leave for participation in a program of post-retirement health care premiums.
Members failing to make an election as to the transferable leave balance, or any portion thereof, within the time prescribed by the Board's rules shall be deemed to have elected to receive a lump sum equal to the leave balance, or the portion thereof, as to which no election has been made.
(b) Members who fail to elect a transfer of the leave balance, or any portion thereof, in accordance with the provisions of this Section shall receive the accumulated leave as to which no election has been made, as a lump sum at the time of separation of service. The Board, by uniform rule, shall establish an implementation program to permit current DROP participants an opportunity to make the transfer election consistent with the terms of this Section.
(c) If a member on whose behalf the City makes a leave balance transfer to the Plan dies prior to selection of an optional form of distribution from the Plan, or after an election but prior to actual distribution, the election option shall be deemed void. In such an event, any person who would have received a death benefit had the member died in service immediately prior to the date of retirement, entry into the DROP or other separation, shall be eligible to receive an amount equal to the transferred leave balance in a lump sum. In the case of a surviving spouse, in addition to the right to elect a lump sum payment of the leave balance, an election may alternatively be made to transfer the leave balance, or a portion thereof, to a qualified retirement plan, or the surviving spouse may elect to continue to participate in any program of post-retirement health care in which the member would have been eligible to participate under the terms of the rules adopted by the Board in accordance with the programs established by the City. The surviving spouse may elect one or a combination of the foregoing options up to the amount of the leave balance. Failure to make any such election as to the leave balance, or any portion thereof, within 60 days after the death of the member shall be deemed an election to receive a lump sum payment as to the portion of the leave balance as to which no election has been made.
(d) The Board, by uniform rule, shall prescribe the method for implementing the provisions of this Section and for establishing such programs for the use of the transferred leave in such a manner as to retain the tax qualified status of the Plan. No rule of the Board shall have the effect of altering the City's right, subject to its collective bargaining obligations, to set the terms of leave accumulation, nor shall it have the effect of altering the City's right, subject to its collective bargaining obligations, to set the terms of any program of health insurance to be offered to employees, retirees, or their eligible dependents. The Board shall prescribe rules implementing the provisions of this Section in accordance with the following guidelines: (i) any cost to the City other than internal administrative costs shall be passed on the retiree; (ii) separate accounts shall be established within each plan for each employee who elects to transfer the terminal leave balance for post-retirement health care premiums; (iii) interest shall accrue on the balance in each account at a rate of interest similar to the rate that the City receives on investments of cash balances in the General Government cash account or other defined cash investment. The Board may also elect for the accounts to be administered and invested by a third-party administrator, and in such case, the third-party administrator may be entitled to charge a customary fee to the retiree for administering each account and shall pay interest on each account at a rate negotiated by the Board.
(e) For the purposes of this Section the term "member" shall include participants in the Florida Retirement System who would have otherwise been eligible to participate in this plan.
(f) For the purposes of this Section the terms terminal leave and transferable leave and accumulated leave shall mean all accrued and unused leave to which a member is entitled upon termination of employement.
(g) The accounts established by this Section shall be irrevocable trusts maintained for the exclusive use of the members and beneficiaries of the retirement plan and no portion of any account shall inure to the benefit of the City or be used for any purpose other than that set forth in this Section.
Part 3 - Miscellaneous Benefits
121.301 Minimum time service, disability and surviving spouse's benefits.
Notwithstanding the provisions of Laws of Fla. ch. 18615 (1937), as amended, and Laws of Fla. ch. 23259 (1945), as amended, and to increase the benefits thereby provided, after the effective date hereof, the minimum monthly pension of a beneficiary, either time service or disability but excluding vested retirement, will be four hundred dollars per month and the minimum monthly pension of any beneficiary receiving survivors benefits will be three hundred dollars per month.
121.302 Retirement benefit adjusted.
Retirees and participants receiving survivor's benefits which commenced prior to January 1, 1990, shall have their monthly payments increased effective the first distribution in January 1990, according to the following formula:
| Years of Credit Service |
Percentage Increases
Times Years Retired |
| Less than 20 |
1% |
| 20 but less than 30 |
2% |
| 30 or more |
3% |
Years retired, as used in this part, means the year 1990 minus the year of retirement; provided, however, persons retiring in 1989 will be credited with one full year's benefits. Revised payments shall remain in effect according to the applicable form of payment.
121.303 Pension benefits and worker's compensation.
(a) A member of the Fund who becomes eligible to receive worker's compensation benefits for any injury or illness occurring during his employment shall be subject to one of the following provisions:
(1) If the member receives no partial salary or wage payments, the member shall contribute an amount equal to the employee's contribution that otherwise would have been paid to the Pension Fund, and the member shall continue to receive retirement credit for the period for which worker's compensation payments are received.
(2) If the member receives partial salary or wage payments, the member shall contribute an amount equal to the employee's contribution that otherwise would have been paid to the pension fund and such amounts shall be deducted from his partial salary or wage payments and the member shall continue to receive full retirement credit for the period for which workers' compensation payments are received.
(3) During the period that a member receives workers' compensation payments or partial salary or wage payments, the City shall be required to contribute an amount equal to the employer's contribution that otherwise would have been paid to the Pension Fund had the member not become eligible to receive workers' compensation benefits.
(b) Pension benefits for any period during which workers' compensation payments are received shall be based on the member's rate of compensation on which pension contributions were made. Time service benefits shall not be reduced because the member is or was receiving workers' compensation payments. Disability pension benefits shall not be reduced because the member is or was receiving worker's compensation payments unless the sum of the pension benefits and worker's compensation exceed the compensation on which workers' compensation benefits are computed. In such case, the disability pension benefits shall be reduced to an amount which when added to the workers' compensation payment will equal the compensation on which worker's compensation benefits are computed.
121.304 Forfeiture, disqualification and recovery of pension benefits for frauds committed on or to the Police and Fire Pension Fund and for other acts which could result in the loss of City pension benefits.
(a) Any member, qualified member or beneficiary of the Police and Fire Pension Fund who:
(1) Is found guilty by verdict of a jury; or
(2) Is found guilty by a court trying the case without a jury, or
(3) Entered a plea of guilty or nolo contendere, regardless of whether the member is adjudicated guilty; or
(4) Has been found administratively to be guilty by the Police and Fire Pension Fund Board of Trustees after an administrative hearing; of committing a fraud on or to the Pension Fund, or aiding or abetting the commission of any fraud on or to the Pension Fund, shall forfeit or be disqualified from all benefits provided by the Pension Fund and shall be required to reimburse the Pension Fund for any funds or benefits wrongfully received.
(b) In furtherance of the purpose of subsection (a)(4), the Pension Fund's Administrator is empowered to investigate any perceived fraud upon the Pension Fund, and the Board is empowered to conduct such administrative hearings as are appropriate to determine if fraud has been perpetrated upon the Pension Fund as provided in subsection (a)(4) above, or if the circumstances described in subsections (a), (1), (2), and (3), apply to any member or beneficiary.
(c) Any administrative hearing conducted in furtherance of the purposes of subsections (a) and (b) shall be conducted in accordance with generally accepted rules of administrative procedure and with due regard for the due process rights of the member or beneficiary. Any determination by the Board to impose a forfeiture upon, or to disqualify the member or beneficiary from benefits, or finding that the member or beneficiary is indebted to the Pension Fund for any funds or benefits wrongfully received, shall be supported by the greater weight of the evidence and by written findings of facts and conclusions of law. Any decision of the Board resulting in a forfeiture of, or disqualification from benefits, or finding that the member or beneficiary is indebted to the Pension Fund for any funds or benefits wrongfully received, shall be subject to review by petition for common law certiorari to the Circuit Court of the Fourth Judicial Circuit. Any decision of the Board finding that as a result of a fraud perpetrated upon the Pension Fund, a member or beneficiary is indebted to the Pension Fund in a specified sum may be enforced through a civil action in the Circuit Court of the Fourth Judicial Circuit.
(d) For the purpose of this section, the term "member" shall refer to an active, contributing member of the Police or Fire Departments who is accumulating benefits; the term "Qualified Member" shall refer to an active employee who has elected to participate in the Deferred Retirement Option Program and the term "beneficiary" shall refer to any retired member, surviving spouse, minor child or other person permitted by law to receive benefits under the Fund.
(e) Violations under Section 112.3173, Florida Statutes, Felonies involving breach of public trust and other specified offenses by public officers and employees; forfeiture of retirement benefits.
(1) DEFINITIONS. As used in subsection, unless context otherwise requires, the term:
(i) "Conviction" and "convicted" mean an adjudication of guilt by a court of competent jurisdiction; and 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.
(ii) "Court" means 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.
(iii) "Public officer or employee" means an officer or employee of the City of Jacksonville who is a member of the Fund.
(iv) "Public retirement system" means the Jacksonville Police and Fire Pension Fund.
(v) "Specified offense" means:
(A) The committing, aiding, or abetting of an embezzlement of public funds;
(B) The committing, aiding, or abetting of any theft by a public officer or employee from his or her employer;
(C) Bribery in connection with the employment of a public officer or employee;
(D) Any felony specified in Chapter 838, except ss.838.15 and 838.16;
(E) 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 the public officer or employee 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 attemps 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.
(2) FORFEITURE. Any public officer or employee who is convicted of a specific offense committed prior to retirement, or whose office or employment is terminated by reason of his or her admitted commission, aid, or abetment of a specified offense, shall forfeit all rights and benefits under any public retirement system of which he or she is a member, except for the return of his or her accumulated contributions as of the date of termination.
121.305 Survivor's benefits barred.
Notwithstanding any provisions to the contrary contained in Laws of Fla. ch. 18615 (1937), as amended; or Laws of Fla. ch. 23259 (1945), as amended; a surviving spouse who unlawfully and intentionally kills or participates in procuring the death of a member or beneficiary who was a participant in the pension fund, is not entitled to any benefits from said pension fund.
121.306 Use of Member Reserve Account and Enhanced Benefit Account to Reduce Member Contributions and to Fund Benefits.
The Agreement attached as Exhibit A to Ordinance 91-1017-605 provided for establishment of a Member Reserve Account in the original amount of thirteen million six hundred fifty-nine thousand one hundred thirteen dollars as of January 1, 1992 and authorized the subsequent accumulation of uncommitted chapter funds into an Enhanced Benefit Account. The Member Reserve Account was subsequently ordered to be liquidated and retired from further service as of March 31, 2000 with the accumulated balance of the Member Reserve Account as of the date of such liquidation and retirement ordered to be transferred into the City Budget Stabilization Account. In addition thereto, the accumulated balance of the Enhanced Benefit Account as of March 31, 2000 shall be liquidated and transferred into the City Budget Stabilization Account; however, the Enhanced Benefits Account shall continue to be operative for periods subsequent to April 1, 2000 for the future receipt of uncommitted Chapter Funds.
121.307 Final Pension Benefit Distribution
In the event that a retiree or a participant receiving surviving spouse benefits becomes deceased on a date other than the date of a bi-weekly pension payroll, such pension recipient shall be deemed to be entitled to the continued receipt of pension benefits through the end of the pay period during which the pension recipient became deceased (the "extended payment date"). In those cases where surviving spouse benefits will be paid following the death of a retiree, the payment of such surviving spouse benefits shall commence on the date following the extended payment date.
Part 4. SAVINGS CLAUSE
121.401 Savings Clause.
The provisions as set forth herein amend and restate the terms of the existing Police and Fire Pension Plan. To the extent not amended or restated, all provisions of the superseded plans shall remain in full force and effect. It is intended that there be no lapse either in time or effect between this plan and such superseded plans. Any ordinance or part of any ordinance in conflict with the provisions hereof is repealed to the extent of the conflict and should any part of this ordinance be held invalid by a court of competent jurisdiction, the remainder of this Ordinance shall continue in full force and effect and it shall be presumed that this ordinance was adopted without the invalid provision. To the extent that anything contained herein may be inconsistent with the terms of F.S. Ch.175 and F.S. Ch.185, the state law will control.
Chapter 116
Employees and Employee Benefits
Section 116.501 Military Leave
116.501 Military Leaves of absence.
(a) All permanent employees who are ordered into military service pursuant to state or federal law, including those called into active military service because of National Guard or military reserve status, or those employees who, while being subject to mandatory military service, volunteer for a period not longer than their required military service shall be entitled to military leaves of absence. An employee who is entitled to reemployment under federal and state law and who applies for reemployment within the timeframe required by federal and state law after termination of active service shall be entitled to:
(1) The reemployment rights prescribed by federal and state law.
(2) All rights, privileges and benefits accorded the employee under any pension fund of the City of which the employee was a member immediately prior to the commencement of a military leave of absence, which rights, privileges and benefits will accrue and be maintained during such military absence to the same extent as if the employee had continuously served as a City of Jacksonville or JEA employee.
(3) The rights and benefits described in paragraphs (b) through (g) below, all of which shall be subject to the terms and conditions of subsection 116.501(a).
(b) During the period of such military leave, the employee who is entitled to military leave of absence will remain on the active payroll of the City of Jacksonville or the JEA for a period of 30 days following his or her departure for active duty.
(c) Following the foregoing 30 day period, the City of Jacksonville and the JEA will provide employees entitled to military leave of absence with supplemental payments in the amount necessary to bring their total compensation, inclusive of their military pay, to the level of base pay plus Service Pay, City Education Pay, State Incentive (basic, career and education), EMT Certificate Pay, Paramedic Certificate Pay, Fire Inspector Certificate Pay, ASE Certification Pay, Planner Certification Pay and A&P Inspection Certification Pay and other Special Incentive Pay as determined by the Chief of Human Resources for which they were eligible and were being paid at the time they were called to active military duty.
(d) In addition the City/JEA shall pay activated employee-reservists all amounts provided as pass-through incentive payments from the state or federal government. Such payments to employees shall be terminated if not paid to the City/JEA by the state of federal government.
(e) Employees entitled to such military leave of absence may elect also to receive a lump-sum payment from accrued annual, vacation, retirement or sick leave banks for an amount equal to the number of days specified in the orders to active duty up to a maximum of 90 days, or the maximum of accrued leave, if less than 90 days.
(f) Employees entitled to such military leave of absence, and their covered dependents, will continue to be covered by the City or JEA health insurance plans under the same terms and conditions as other employees on approved leaves of absence.
(g) Employees entitled to such military leave of absence who are active members of the General Employees or Police and Fire Pension Plans will continue to receive all benefits under said pension plans in accordance with this Section and applicable federal and state law. While absent on such military leave, such employees shall not be required to make contributions to any pension plan of the City, except for those contributions that originate from the employees' use of annual leave balances during such military leave of absence and from compensation wherein the employees are allowed to remain on the active payroll for the period of 30 days following the departure for active duty. Additional contributions by the City, if any, shall be ascertained and included in the biennial certification of the appropriate Plan's enrolled actuary.
(h) In computing the length of service of the employee for purposes of job qualifications and voluntary retirement, the employee shall be given full credit for the period of the employee's military leave of absence to the same extent as if the employee had continuously served as a City or JEA employee during the period of military leave of absence. However, the employee shall not be entitled to any additional pension or other benefits related to such period of military leave, except as set forth in this Section.
(i) The respective Boards of the General Employees Pension Fund and the Police and Fire Pension Fund shall make such rules as they deem necessary or desirable for the effective and efficient administration of this Section.
(j) For purposes of this Section 116.501, employee means and is limited to all employees and officials of the City or JEA who are members of any pension plan of the City and eligible to receive health insurance benefits from the City or JEA, or who at some time during their employment were eligible to be members of any such pension plan and to receive such health insurance benefits, and who meet the terms and conditions of subsection 116.501(a). The rights and benefits of all other employees of the City or JEA related to military service shall be limited to the rights and benefits required under federal and state law.
Section 116.606 Retirement Leave Account.
116.606 Retirement Leave Account.
(a) Retirement Leave Account During DROP. Notwithstanding any provisions to the contrary contained elsewhere in this part, Members who have elected to participate in the Deferred Option Program will have the accumulated hours of their Retirement Leave Account governed by the following rules as a condition of DROP participation:
(1) The number of hours accumulated in the Retirement Leave Account will be frozen and removed from the Member's record. In addition thereto, no additional hours may be transferred into the Retirement Leave Account during the period of DROP participation regardless of the provisions of the Leave Plan into which the employee is enrolled.
(2) The dollar value of the accumulated hours in the Retirement Leave Account that is deleted from the Member's record will be determined in the same manner as calculated for the payment of Earned Leave Credits upon Termination of Employment. The dollar value of the Retirement Leave Account that is calculated at the commencement of DROP participation shall be certified by the Department Director or authorized designee, verified and certified by the Human Resources Division to the Director of Administration and Finance, and reported to the Police and Fire Pension Fund. See Exhibit B.
(3) The dollar value of the frozen Retirement Leave Account will be divided by the number of years of DROP participation elected by the Qualified Member for the purpose of establishing the portion of the frozen Retirement Leave Account value that will be annually assessed against the City. Such annual amount shall represent a periodic budgetary charge to be assessed against the activity of the Qualified Member unless otherwise instructed from the City's Annual Budget.
(4) Such annual amount as determined in (c), above, will be paid by the City to the Police and Fire Pension Fund effective the first day of DROP participation of the Qualified Member, with such amount being held by the Pension Board for the benefit of the Qualified Member. Each succeeding annual payment made by the City to the Police and Fire Pension Fund will be made on the anniversary of the Qualified Member's entrance into the DROP.
(5) The annual payment from the City to be held for the benefit of the Qualified Member, representing a portion of the value of the frozen Retirement Leave Account, shall accrue interest credits as an Enhanced Benefit of the Qualified Member from the effective date of deposit at an annual rate of return of 8.40 percent.
(6) In the event that the Qualified Member terminates employment prior to the end of the announced period of DROP participation, the value of the Retirement Leave Account which has not been assessed against the City on a budgetary basis shall be fully assessed in a lump sum and fully credited for the benefit of the participant.
(7) The Qualified Member shall have no right of distribution to any of the annual Retirement Leave Account payments, nor any interest credits related thereto, during the period of DROP participation.
(8) Upon termination of participation in the DROP, the cumulative value of the Retirement Leave Account of the Qualified Member and all interest credits related thereto which are held for the benefit of the Qualified Member within the Police and Fire Pension Fund will be made available for distribution to the Qualified Member as soon as administratively practical under the provisions for payment as described in 121.209(c)(3)(ii)(a) or (b), or any combination thereof, wherein a portion of the payment may be received under 121.209(c)(3)(ii)(b). In addition to the above described distribution options, the Retirement Leave Balance shall be deemed to be a form of Terminal Leave for purposes of Ordinance Code Section 121.210 and accordingly, all or a portion of the value of the Retirement Leave Account may be used for participation in a program of post-retirement health care premiums described in 121.210.