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Ord No 16-79-1038ORDINANCE NO.16-79-1038 AN ORDINANCE OF THE CITY OF SOUTH MIAMI,FLORIDA, CONTINUING THE IMPLEMENTATION OF THE PROVISIONS OF CHAPTER 185,ACTS OF FLORIDA,1953;PROVIDING CERTAIN BENEFITS FOR POLICE OFFICERS OF THE CITY OF SOUTH MIAMI:CONTINUING THE SPECIAL FUND DERIVED FROM MONIES RECEIVED FROM THE STATE OF FLORIDA:SAID FUND TO BE KNOWN AS "THE CITY OF SOUTH MIAMI POLICE OFFICERS RETIREMENT TRUST FUND";PROVIDING FOR,A BOARD OF TRUSTEES,ELECTION PROCEDURES FOR SAID TRUSTEES,OFFICERS THEREOF,DUTIES,TERMS OF OFFICE, AND OTHER REGULATIONS GOVERNING SAID TRUSTEES, SECURITY SAFE KEEPING,INDEMNIFICATION OF BOARD MEMBERS,PAYMENT OF COSTS,EXPENSES AND FEES,CREDITS TO INDIVIDUAL ACCOUNTS,BENEFITS,RETIREMENT DATES, PAYMENTS UPON DEATH,CHANGE OF BENEFICIARIES,BENEFIT OPTIONS,AND OTHER REGULATIONS CONCERNING SAID FUND, INCLUDING AMENDMENT AND TERMINATION OF THE PLAN, DISTRIBUTION OF THE FUND,AND IMPROVEMENT OF THE ADMINISTRATION OF THE FUND,AND COMPLIANCE WITH PROVISIONS OF SENATE BILL NO.14,AND PROVIDING FOR THE FUND TO BE IN ADDITION TO ANY OTHER PENSION PLAN OF THE CITY OF SOUTH MIAMI,FLORIDA. BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SOUTH MIAMI,FLORIDA: Section 1.ThepurposeofthisOrdinanceisto improve the administration,tocomplywiththeprovisionsofSenateBill No.14 andimplementthe provisions of Chapter 185,ofthe Florida Statutes, andtoprovidemeanswherebypoliceofficersoftheCityofSouth Miami,Florida,mayreceive benefits fromthe funds provided for the purpose by Chapter 185,Acts of Florida,1953.The fund hereby created being derived from monies received from the State and not fromataxleviedbytheCityofSouthMiamionCityofSouthMiami taxpayers,shall bein addition toany other pension planof the CityofSouthMiami,Florida,andnothing herein shallbeconstrued toinanywayaffectthe operation of benefits ofanyother pension planoftheCityofSouth Miami,Florida,thatpresently exists. Section 2.The following words and phrases shall,for the purpose of this Ordinance,have the meanings hereinafter respectively ascribed tothem.Other words and phrases shall have meanings as commonly understood with respect to the context;the singular shall include theplural,and the masculine the feminine. -1- (a)Active duty:Active dutyshallmeanactualservices as a police officer with permanent status in the Police Department oftheCityofSouth Miami,Florida except for approved leaves of absenceassetforthbelowunderparagraph (j)ofthis Section. (b)Board:BoardshallbeunderstoodtomeantheBoardof TrusteesoftheCityofSouthMiamiPolice Officers Retirement Trust Fund,or such other board or boards as may be created by the City of South Miami,or its successors,to administer the pension system. (c)City:City shall be understood to mean the City of South Miami,Florida,andthe lands under the jurisdiction thereof fromtimeto time,as determined by law. (d)State:State shall be understood tomeantheStateof Florida. (e)PoliceOfficers:Police Officersshallbeunderstood tomeanthe Police Chief and all full-time police officers ofthe City of South Miami,with permanent status in the Police Department oftheCityofSouth Miami,asthe Board shall determine tobe engaged in enforcement of the ordinances of the City of South Miami and Statutes of the State of Florida.The term police officer does notinclude auxiliary officersorreserveofficers. (f)Plan:Plan shall mean the "City of South Miami Police Officers Retirement Plan." (9)Fund:Fund shall mean the "City of South Miami Police Officers Retirement Trust Fund." (h)Participant:Every police officer of the City who is onactivedutyandwhoisa participant inthe"South Miami Pension Plan,"shall automatically become a participant in this plan. (i)Service:Service shall mean all time served as a police officer permanently appointed under the City of South Miami Code of -2- Ordinances and Personnel Rules,for which regular compensation is paid by the City;and all time,not to exceed a period of five (5) years during which a participant is absent on a military leave of absence,it shall include all leaves of absence without pay for sickness,for such period of time as may be determined by the Board, in excess of accumulated sick time for which compensation is received. (j)Chapter 185:Chapter 185 shall mean and refer only to Chapter 185,Florida Statutes. (k)Department:Department shall be understood to mean the Police Department of the City of South Miami. (1)Finance Director:Finance Director shall be understood to mean the Finance Director of the City of South Miami. Section 3:There is hereby created in a special fund to be known as the City of South Miami Police Officers Retirement Trust Fund, into which shall be paid all monies received by the City under the provisions of Chapter 185,and all monies which are hereafter paid to the City under the provisions of Chapter 185. The monies received and/or allocated to the City for the calendar years that the City was a participant in the State program are as follows: Calendar year ending December,1974 $8 250.10 Calendar year ending December,1975 8 574.61 Calendar year ending December,1976 11,738.95 Calendar year ending December,1977 12,073.83 Section 4:The City shall pay into said fund all monies received by it from the State pursuant to Chapter 185 plus accrued interest. Section 5:There is hereby created a seven (7)member Board of Trustees of the City of South Miami Police Officers Retirement Trust Fund,which Board shall consist of three employees of the Police Department (to be selected by the police participants and appointed -3- by the City Council),the Police Chief,the Finance Director,the Mayor and a resident of the City (to be appointed by the City Council)for a period of two (2)years.At the first election of Trustees,there shall be elected one police officer to serve as Trustee for a two year term;and one police officer to serve as Trustee for a three-year term.Thereafter,each year,one police officer shall be elected to serve as Trustee for a three-year term. The Board shall annually elect from its membership a Chairman and a Secretary.The Finance Director shall be the Treasurer.The Chairman,when present,shall preside at all meetings.The Secretary shall keep complete minutes of all proceedings of the Board.The Treasurer shall supervise the books and records which record the receipts and disbursements of the Fund and the inventory of assets of the Fund.He shall report attach quarterly meeting the assets and liabilities of the Fund as of the date of such meeting.All elections of the Board shall be by a majority vote,a quorum being present.Four or more members shall constitute a quorum.Trustees shall receive no compensation as such. Section 6:Elections:All elections of police officers to the Board shall be by secret written ballot.Only participants in the Fund shall be eligible for nomination and election of the Board and only participants shall be eligible to vote in such elections. Notice of each election shall be posted in the Police Station in the City of South Miami at least two weeks prior to the date upon whichsuchelectionshallbe held. Section 7:Meetings:The Board of Trustees will hold regular meetings quarterly or more often as determined by the Board.Special meetings may be called by the Chairman and Secretary or by any three members of the Board.Ten days written notice of a Special Meeting shall be given in writing to all Board members,which notice shall contain the purpose,date,time and place of the Special Meeting. 4- If any elected member of the Board of Trustees shall fail to attend meetings of the Board on two consecutive meeting dates without cause,as determined by the Board of Trustees,his membership ontheBoardshallbeterminated.Writtennoticeofthisfactshall begiventothememberwhosemembershipisthus terminated. Section 8:Replacement of Board Members:If at any time between elections a vacancy occurs on the Board for any reason whatsoever,such vacancy shall be filled bya special election held in accordance withthe procedures in Section 5and Section 6 ofthis Ordinance.ThenewlyelectedTrusteeshallservethe remainder of the term of any Trustee whose membership was terminated. Section 9:Powers of Board:The Board shall have the power and authority as follows: (a)To invest and re-invest monies of the Fund.In making such investments they shall be governed by Chapter 185 Florida Statutes relating to the investment of fiduciary funds,except that no monies shall be invested in common stock.The Board may,however,invest up to ten percent (10%)of the unobligated funds in AAA grade or AA grade corporate bonds and/or AAA grade or AA grade equipment trusts. (b)To perform the acts required asthe administrator of the Plan.TheBoardmay delegate administrative duties tothe consultingfirmofRalph W.Symons and Associates. (c)To approve disbursements,pay claims,and authorize payments from the Fund by warrants signed bythe Chairman andthe Secretary of the Board. (d)Tointerpretthe provisions ofthisOrdinancewherethe meaning is not clear or ambiguity exists;and to promulgate necessary rules respecting the operation of the Fund,or elections of Trustees, notinconflictwiththewordingorclearintentofthis Ordinance. In the event of any conflict,the provisions of Chapter 185 of the FloridaStatutesshallprevail. (e)To authorize expenditures in connection with preliminary research,technical services,legal services and accounting services, to contract for employees necessary tothe general administration of -5- the Fund and to employ legal counsel and auditors necessary to the proper administration of the Fund. Section 10:Security Safekeeping^.The custody of all securities and cash of the Fund shall be with the Board.The Board shall deposit all funds not invested as above,in a National or State chartered.commercial bank located within the continental United States,whose deposits are insured by the Federal Deposit insurance Corporation.All security instruments shall be kept in a safe deposit box or deposited with a corporate/bank trustee,and current inventories of such securities shall be kept as a part of the permanent records of the Board,which Will be audited annually by an independent Certified Public Accountant appointed by the Board. Section 11;Indemnification of Board Memh«„-g.A11 persons, including Board members and employees,who sign checks or handle money or securities of the Fund shall be bonded by a qualified surety. The Fund shall indemnify the members of the Board of Trustees of the City of south Miami Police Officers Retirement Trust Fund individually and collectively against all claims of participants as aforesaid and shall pay all expenses including court costs and attorney's fees incurred in defending law suits of any form whatsoever brought by participants in asserting such claims. The members of the pension board may engage agents to assist them in their duties and the City Attorney shall represent the Board of Trustees pursuant to the provisions of Section 185.29 of the Florida Statutes which shall apply.lf the city Attorney should fail or refuse to comply with the request of the pension board in this relation,the said pension board in their discretion may employ independent legal counsel for such purpose.The members of the pension board shall be relieved of all responsibility whatsoever for anything done or not done upon the written advice of counsel. -6- Section 12:Payment of Costs,Expenses and Fees:At each meeting of the Board,the Trustees shall examine all known unpaid bills of expense for setting up,amending and operating the Fund, and shall approve and allow for payment all those bills of expense that are found to have been necessary and proper charges against the Fund,and these bills shall be paid promptly. Section 13:Credits to Individual Accounts: (a)An individual account shall be established for each participant. (b)After payment of all costs,expenses and fees as monies are received from the State,the expenses of administering the Fund for the preceding year shall be prorated by the Board and charged against monies received for participants during said year;and the balance of such monies shall be credited as contributions to the several individual participants in an amount directly proportionate to the total number-of months of duty performed by the several police officers in the calendar year preceding the date the monies were received from the State.The length of time of service computed in monthly increments during the calendar year preceding the date upon which payment is received from the State is the only criterion upon which the amount due each participant out of the State monies received annually is to be calculated.A participant will be credited with a full month if his date of employment on permanent status is onor before the 15th day of the month and if separation is on or after the 16th day of the month.No partial monthly periods will be credited to any account.No credit is to be given on account of seniority, rank or amount of compensation which the participants receive. (c)As of each December 31,the assets of the Fund shall be valued at fair market value.The amount of any earnings from investments,including unrealized gains and losses in market value,to be credited to the account of the participant shall bear the same ratio to the total amount of annual earnings as the participant's individual account balance bears to the total of the individual account -7 - balances of all participants on the preceding December 31.This ratic determined on the preceding December 31 shall be based upon the participants'account balances including contributions for such year. * (d)In addition to the monies received from the State and earnings on investments,all forfeitures from police officers as provided for in Section 14(a)hereof shall be prorated and credited annually to the accounts of the individual participants.Such forfeitures shall be prorated to their individual accounts in the same manner as monies received from the State,asset forth in Section 13(b). (e)Subsequent to the effective date of this Ordinance after a police officer has retired and ceased to be a member on active duty,as defined in Section 2(a)hereof,no contributions from monies received from the State shall be made to his account.Police officers who retired after December 31,1973 and prior to June 14,1974,shall be entitled to participate in the monies they could have participated in had this Ordinance been in effect on January 1,1974,but they shall not participate in any other monies.Monies credited to a participant's account shall be payable only upon application by the filing of a claim form with the Board.The application shall be on a claim form prescribed by the Board and shall be sworn to be the applicant or his surviving wife or child,or if the child is a minor, by the guardian of the child,or by any other person legally qualified to apply for such monies under the laws of the State of Florida. Section 14:Benefits:No participants shall receive benefits from the Fund in excess of the amount credited to his account.Subject to this provision a participant shall receive benefits as follows: (a)Should a participant separate from the Department prior to having satisfactorily completing ten years of service,the participant shall forfeit all monies credited to his name in the plan. -8- (b)Should a participant separate from the Department after having satisfactorily completing ten years of service but prior to retirement age fifty-five (55)asset forth in Section 14(c),the participant will have a vested right to his credited benefits at the time of his separation.These credited benefits will remain in the investment pool and will receive a proportionate share of investment earnings as set forth in Section 13(c)until benefits are paid as set forth in Section 14(c),which follows: (c)Normal Retirement Date:The normal retirement date of a participant including separated participants with vested rights,shall be the first day of the calendar month coincident with or otherwise next following his sixtieth (60th)birthday. (d)Early Retirement Date:A participant who is eligible for and who elects early retirement under the City of South Miami Pension Plan may elect an early retirement date which may be the first day of the calendar month coincident with or otherwise next following his fifty-fifth (55th)birthday. <e>Disability Retirement:A participant determined by the Board to be totally and permanently disabled shall be eligible for disability retirement and may elect any one of the benefit options set forth in Section 14(h).The Board shall set the date for commencement of disability benefit payments to the participant after eligibility therefor has been established.As used in this Section,"total and permanent disability"shall mean that in the opinion of the Board of Trustees the participant is wholly prevented from rendering useful and efficient service as a police officer; and a police officer will be considered permanently disabled if,in the opinion of the Board of Trustees,such police officer is likely to remain so disabled continuously and permanently from a cause other than as specified below in Items (1)through (5). -9- A police officer will not be entitled to receive any disability retirement income if the disability is a result of: (1)Excessive and habitual use by the police officer of drugs,intoxicants or narcotics; (2)Injury or disease sustained by the police officer while willfully and illegally participating in fights,riots, civil insurrections or while committing a crime; (3)Injury or disease sustained by the police officer while serving in any armed forces; (4)Injury or disease sustained by the police officer after his employment has terminated; (5)Injury or disease sustained by the police officer while working for anyone other than the City and arising out of such employment. (f)Death of a Participant:Upon the death of a participant prior to retirement there shall be paid to the beneficiary last designated by him all the monies credited to the participant's account plus 4%interest,compounded annually,for the period commencing with the December 31 immediately preceding,but not including,the day of death of the participant. (g)Change of Beneficiary:Each participant shall have the right to name a beneficiary and to change his beneficiary designation from time to time.Any such exercise of rights shall become effective immediately upon proper execution of the beneficiary designation form provided by the Board as a standard form under this plan. (n)Benefit Options:The participant has three benefit options of which he must choose one at the time of application for retirement benefits.Once an option is chosen and the first payment thereon has been made,the option selection becomesbinding on the participant and no other option may be chosen in lieu thereof.The three benefit options areas follows: -10 - (1)Cash:The cash payment will be equal to the balance credited to the participant's account plus 5%interest, compounded annually,for the period commencing with the December 31 immediately preceding the distribution of benefits to the participant, but not to include,the day of retirement. (2)Annuity Payments Certain for 36 Months Usinq 5%Interest factor in computing the amount of the monthly payment. Should the participant die prior to receiving the final monthly payment,the remaining monthly payments will be made to his designated beneficiary.Should the beneficiary predecease the participant,the remaining benefits will be paid to the participant's estate as a lump sum,equal to the present value of the remaining monthly payments discounted at a rate of interest of 5%per year. (3)Whole Life Annuity Due:Should the participant elect this option,the Board will purchase such a policy for the insured from the life insurance company selected by the Board from time to time and agreed upon by the retiree.The single premium of the annuity will equal the amount credited to the participant's account plus interest thereon at 5%annually for the period commencing with the December 31 immediately preceding the distribution of benefits to the participant,but not to include,the day of retirement. Section 15:Denial and Review of Claims: (a)If a claim for benefits of any participant,former participant or beneficiary is denied by the Board,there shall be timely adequate written notice within forty-five (45)days of claim date given to the claimant whose claim for benefits has been denied, setting forth the specific reasons for such denial.Unless otherwise provided by law,the terms of the retirement system or plan shall provide for a full and fair review in those cases where a member or beneficiary has had his claim to benefits denied. (b)After a claimant receives a denial of rights to benefits or is in dispute with the decision of the Board and after such claimant makes a written request to the Board for a review of his previous -H- denial,the Board will fully and fairly consider and review the case of such aggrieved claimant.Within 30 days of the Board's receipt of the aggrieved claimant's written request for their review of his previous denial,the Board shall give written notice of the disposition of the disputed claim to the appropriate claimant by certified mail.The Board's decision so rendered shall be conclusive and binding on all interested parties. Section 16:Vested Rights:The vested rights and benefits provided for herein are vested rights of the participants in the Fund, and shall not be subject to garnishment,attachment,or execution of any other legalprocess. Section 17:City's Responsibility:The City shall have no responsibility for the operation of the Fund except those specified herein and shall bear no expense in.connection therewith. Section 18:Limitations Generally: (a)This plan is created for the exclusive benefit of permanent police officers of the City and their beneficiaries,and shall be interpreted in a manner consistent with its being a qualified plan under Chapter 185 Florida Statutes as the same may be amended from time to time.This section cannot be altered or amended. (b)Except as provided in Section 12,no funds accruing to this plan and no assets of the plan shall ever revert to,be used or enjoyed by the City nor shall any such funds or assets ever be used other than for the benefit of the participants or their beneficiaries. This section cannot be altered or amended. (c)Compliance by Parties,Claimants:All parties to this Plan and all persons claiming any interest whatsoever hereunder agree to perform any and all acts and execute any and all documents or papers which may be necessary or desirable for carrying out any of the provisions of this plan or of any amendments to this plan or for complying with any federal or state disclosure laws. (d)Plan is Not Contract of Employment:The pension plan shall not be construed as creating any contract of employment between the employer and any of its employees. -12 - (e)Alienation of Proceeds,Levy,Etc.;Prohibited:No participant shall have any right to assign,alienate,anticipate or commute any payments hereunder. (f)Laws of Florida Applicable:This plan shall be construed according to the laws of the State of Florida where it is made and whereitshallbe enforced. (g)Headings:The section and paragraph headings of this Ordinance are intended for convenience and shall not affect the meaning or construction of any provisions of this instrument. Section 19:Invalid Provisions:If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid such invalidity shall not affect other provisions or applications of the Ordinance which can bfe given effect without the invalid provision or application*a*id to this end the provisions of this Ordinance are declared to be severable. Section 20:Amendment &Termination of Plan and Distribution of Fund: (a)The City of South Miami may amend this pension plan at any time and from time to time by an instrument in writing executed in its name by an officer or officers duly authorized to execute such instrument,and delivered to the members of the pension board; provided,however,that (1)No amendment shall increase the duties or liabilities of the members of the pension board without their written consent. (2)No amendment shall provide for the use of funds or assets held under this plan other than for the benefit of the participants and their beneficiaries. (b)The City of South Miami may terminate this pension plan at any time by an instrument in writing executed in the name of the officer or officers duly authorized to execute such an instrument and delivered to the Board.In such anevent,the Board shall cause the Fund to be apportioned and distributed in accordance with Chapter 185.37,Florida Statutes,Municipal Police Officers Retirement Trust Fund;Policemen Generally. -13 - Section 21:All Ordinances or parts of Ordinances in conflict herewith be,and the same are hereby repealed. Section 22:This Ordinance shall take effect immediately at the time of its passage. PASSED AND ADOPTED THIS 24th day of July ,197 9 APPROVED: Attest: /CAj/eJ City Clerk Passed on First Reading:6/12/79 Passed on Second Reading:7/24/79 Moved by. Seconded byConm. YES Vice ^feyor Gibson ews Lantz" Bfockabsent bowman £. i'xson.x_ lantz X_ M "Cannabsent MO