HIALEAH CITY CODE — CHAPTER 70 (RETIREMENT AND PENSIONS), ARTICLE IV — EMPLOYEES GENERAL RETIREMENT SYSTEM
Source: Municode, City of Hialeah, FL, Supp. 44 (updated Nov 11, 2025).
Secs. 70-71—70-95. - Reserved.
ARTICLE V. - POLICE OFFICER PENSION FUND
ARTICLE IV. - EMPLOYEES GENERAL RETIREMENT SYSTEM
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DIVISION 1. - GENERALLY
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Sec. 70-96. - Definitions.
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The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Accumulated member contributions means the sum of all amounts deducted from the compensation of a member and credited to the member's individual account in the annuity savings fund, together with regular interest thereon.
Actuarial equivalent means a benefit of equal value when computed at regular interest upon the basis of such mortality tables as the board shall from time to time adopt. The assumptions currently adopted by the board of trustees are seven percent interest compounded annually and the RP 2014 Mortality Table for Healthy Annuitants, projected from the base year 2014 to the year of retirement using Mortality Improvement Scale MP-2016, with the resulting rates blended using 50 percent male and 50 percent female rates.
Annuity means payment derived from the accumulated contributions of a member, either lump sum or payments for life.
Annuity reserve means the present value of all payments to be made on account of any annuity, or benefits in lieu of any annuity, computed upon the basis of such mortality tables and regular interest as the board shall from time to time adopt.
Average final compensation means the average of the highest annual compensation received by a member during a period of any three years of service, which may not necessarily be consecutive. If the employee has less than three years of credited service, the employee's average final compensation shall be the average of the annual compensation received during his total years of credited service.
Beneficiary means any person, except a retirant, who is entitled to receive or who is in receipt of a pension or retirement allowance granted in accordance with the provisions of the retirement system. A beneficiary or beneficiaries may be named individually, jointly, or sequentially, and shall be designated on a form provided by the board of trustees. The member may revoke any such beneficiary designation by signing and filing a new designation-of-beneficiary form with the board of trustees.
Board means the board of trustees.
City contribution rate means the amount paid by the city to the pension reserve fund.
Classified service means all employees of the city, excepting those employees enumerated in section 4.07(b)(1)b of the Charter and those employees not recognized as classified employees of the city by the personnel board.
Compensation means base salary plus any longevity and/or special assignment pay prescribed in the personnel board's annual basic salary schedule as revised from time to time, and/or any pay received in connection with the state's law enforcement special incentive program or firefighters' supplemental compensation program, F.S. § 633.382. Effective June 4, 2020, compensation for firefighter members shall include specialty pay received by the member up to five percent of base salary. Effective June 4, 2020, compensation for police officer members shall include specialty pay received by the member up to five percent of base salary.
Continuance period means the first five years of retirement of a member.
Credited service means the sum of the prior service, prior membership credit service, and current membership credit service credited to a member's service account.
Eligible retirement means retirement in accordance with the option selected by the member according to the options contained in section 70-203.
Final compensation means the annual rate of compensation payable to a member at the time of his last termination of employment with the city.
Member means any person employed by the city who is included in the membership of the retirement system.
Member contribution rate means pension contributions paid by the member as designated in section 70-210 and the amounts paid by the member to the annuity savings fund as designated in section 70-203.
Membership service means service rendered as an officer or employee of the city after the effective date of the retirement system.
Military service means active service in the U.S. Armed Forces.
New member means any employee without prior service credited to his service account.
Noncertified full-time employee means any noncertified employee scheduled to work 37½ hours or more per workweek.
Noncertified part-time employee means any noncertified employee scheduled to work 22½ hours to 30 hours per workweek.
Original member means any employee with prior service credited to his service account as of January 1, 1956.
Pension means annual payments for life derived from money provided by the city or any instrumentality of the city. All pensions shall be paid in equal monthly installments.
Pension reserve means the present value of all payments to be made on account of any pension, or benefits in lieu of any pension, computed on the basis of such mortality tables, regular interest and other tables as the board shall from time to time adopt.
Prior service means service rendered as an officer or employee of the city prior to the effective date of the retirement system.
Regular interest means such rate of interest per annum, computed annually, as the board shall from time to time determine.
Retirant means any member who retires and is the recipient of a pension or retirement allowance payable from funds provided by the retirement system.
Retirement means any retirant in receipt of an annuity pension or retirement allowance granted in accordance with the provisions of the retirement system.
Retirement allowance means the sum of the annuity and pension.
Service means service rendered as an officer or employee of the city.
Vested rights refers to any rights to pension benefits which a member may have earned by virtue of his contributions and years of credited service, as designated in section 70-239.
(Ord. No. 874, § 2, 6-28-1955; Code 1960, § 24-18; Ord. No. 2301, § 1, 1-27-1970; Ord. No. 3052, §§ 1, 3, 1-13-1976; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2005-99, § 1, 10-11-2005; Ord. No. 2010-69, § 1, 12-14-2010; Ord. No. 2012-28, § 1, 5-22-2012; Ord. No. 2014-05, § 1, 1-28-2014; Ord. No. 2014-29, § 1, 5-27-2014; Ord. No. 2017-080, § 1, 11-28-2017; Ord. No. 2020-016, § 1, 5-28-2020; Ord. No. 2020-017, § 1, 5-28-2020)
Cross reference— Definitions generally, § 1-2.
Sec. 70-97. - Establishment.
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The city employee's retirement system, referred to as the "retirement system," is established for the purpose of providing retirement allowances, disability and death benefits for the employees of the city as defined in this article. The effective date of the retirement system shall be on January 1, 1956.
(Ord. No. 874, § 1, 6-28-1955; Code 1960, § 24-17; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-98. - Amendments to retirement plan.
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(a)
All amendments to the retirement plan shall be made by ordinance approved by the mayor and the city council.
(b)
No ordinance amending this plan shall be submitted to the mayor and city council unless the changes affecting firefighters, general employees, and police officers have been subject to the collective bargaining requirements set forth in F. S. pt. II, ch. 447, and has been submitted to the board of trustees for review at least ten days prior to first reading by the city council.
(c)
No ordinance amending this plan shall be submitted to the mayor and city council unless such ordinance has first been submitted to the actuary approved by the board of trustees for evaluation.
(Ord. No. 874, § 38, 6-28-1955; Code 1960, § 24-50; Ord. No. 3055, § 1, 1-13-1976; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2010-46, § 1, 8-10-2010; Ord. No. 2010-47, § 1, 8-10-2010)
Sec. 70-99. - Protection against fraud; penalty.
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Any person who shall knowingly make any false statement or who shall falsify or permit to be falsified any record of the retirement system in any attempt to defraud such system as a result of such act or any person subject to the terms of this article, including the individual members of all boards, who shall violate any of the sections of this article or any valid rule or regulation promulgated under authority of this article shall upon conviction be punished as provided in section 1-11.
(Ord. No. 874, § 41, 6-28-1955; Code 1960, § 24-51; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-100. - Assignments prohibited; exemption from process.
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The right of a person to an annuity, a pension, a retirement allowance, to the return of accumulated contributions, the annuity, the pension or the retirement allowance itself, any optional benefits, and any other rights accrued or accruing to any member or beneficiary under the provisions of the retirement system and the monies belonging to the retirement system shall be unassignable and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency law, or any other process of law whatsoever, except as is specifically provided by the provisions of the retirement system.
(Ord. No. 874, § 36, 6-28-1955; Code 1960, § 24-48; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-101. - Exception to prohibition of assignments.
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(a)
Any member of the retirement system in good standing may pledge monies accumulated to his credit in the annuity savings fund as collateral for cash loans made to him by the retirement system, provided the principal amount of each loan does not exceed the amount credited to his annuity savings fund on the previous October 1 and subject to such other regulations governing loans as may be established by the board of trustees that conform to the state laws regulating investments of insurance companies.
(b)
Loans shall be granted under the following policy:
(1)
One loan every three months for five-year loans, with the provision of two emergency loans during any one fiscal year.
(2)
For those individuals requesting seven- and ten-year loans, where appropriate, they shall be permitted one emergency loan per fiscal year.
(Code 1960, § 24-48.1; Ord. No. 1544, § 1, 2-12-1963; Ord. No. 2006, § 1, 9-12-1967; Ord. No. 80-108, § 1, 10-14-1980; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-102. - Correction of errors in records.
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If any change or error in the records results in any member or beneficiary receiving from the retirement system more or less than the member or beneficiary would have been entitled to receive had the records been correct, the board of trustees shall correct such error and as far as practicable shall adjust the payment of the benefit in such a manner that the actuarial equivalent of the benefit to which such member or beneficiary was correctly entitled shall be paid.
(Ord. No. 874, § 37, 6-28-1955; Code 1960, § 24-49; Ord. No. 95-28, § 1, 4-11-1995)
Secs. 70-103—70-130. - Reserved.
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DIVISION 2. - BOARD OF TRUSTEES[4]
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Footnotes:
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Cross reference— Boards, commissions and committees, § 2-581 et seq.
Sec. 70-131. - Appointment and terms.
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(a)
There is created a board of trustees in whom is vested the general administration, management and responsibility for the proper operation of the retirement system and for making effective this article. The board of trustees shall consist of seven trustees appointed and elected in the following manner:
(1)
One trustee shall be appointed by the mayor. This trustee shall be an elector of the city.
(2)
One trustee shall be appointed by the city council. This trustee shall be an elector of the city.
(3)
Four trustees shall be elected from the group membership by majority vote, one from each group; management, AFSCME Local, IAFF Local, and PBA. The elected trustee must be an active member of the retirement system or of the deferred retirement option program (DROP). Term of office for each trustee so elected shall be for a two-year period, and the trustee shall be voted into office and elected as determined by each group.
(4)
The seventh trustee shall be elected from the membership by majority vote by the trustees appointed and elected pursuant to subsections (a)(1) through (3) of this section as soon as practicable after their appointment. This appointee shall be an elector of the city. The trustee so appointed shall serve for two years.
(5)
All appointments and elections shall be held on the second Tuesday in December, and the appointed and elected trustees shall take office on the following January 1.
(6)
The even members of the board shall serve for a period of two years.
(b)
Each trustee shall, immediately after the trustee's appointment or election, take an oath of office to be administered by the city clerk or notary public.
(Ord. No. 874, §§ 3, 4, 6-28-1955; Code 1960, § 24-19; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2009-44, § 1, 6-9-2009; Ord. No. 2023-083, § 1, 9-12-2023)
Sec. 70-132. - Vacancies.
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If a vacancy occurs in the office of a member of the board of trustees, the vacancy shall be filled within 30 days after the date of the vacancy for the unexpired term in the same manner as the vacated trustee was originally elected or appointed.
(Ord. No. 874, §§ 5, 6, 6-28-1955; Code 1960, § 24-20; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-133. - Meetings; rules of procedure; compensation.
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(a)
The board of trustees shall hold regular meetings at least once each quarter year and shall designate the time and place thereof by written notice to the members of the retirement system.
(b)
The board shall adopt its own rules of procedure and shall keep a record of all of its proceedings.
(c)
All meetings of the board shall be public, and members of the board shall serve without compensation for their services as trustees.
(Ord. No. 874, §§ 5, 6, 6-28-1955; Code 1960, § 24-20; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-134. - Quorum; removal from office.
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(a)
Four trustees shall constitute a quorum at any meeting of the board of trustees. Each trustee shall be entitled to one vote in the meetings of the board. At least four concurring votes shall be necessary for a decision by the trustees.
(b)
The city council shall have the right to dismiss any member of the board by a five-sevenths vote, after a public hearing, such trustee having failed to comply with any of the stipulations of this article or any city ordinance involving moral turpitude.
(Ord. No. 874, § 7, 6-28-1955; Code 1960, § 24-21; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-135. - Officers; payments; actuary.
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(a)
The board of trustees shall elect from its members a chairman and vice-chairman and shall designate a person to act as secretary of the retirement system.
(b)
The retirement director shall be treasurer of the retirement system and the custodian of its funds. All payments from the funds of the retirement system shall be made only upon evidence of a motion adopted by the board authorizing such payments. All vouchers and checks shall be signed by two members of the board as designated by the board.
(c)
The city attorney or his designee shall be the legal advisor to the board and shall represent the board in any and all matters pertaining to this retirement system, except in such cases as the board of trustees may deem it advisable to employ other legal service.
(d)
The board may appoint an actuary who shall be the technical advisor to the board on matters regarding the operation of the retirement system and who shall perform such other duties as are required in connection therewith.
(Ord. No. 874, § 8, 6-28-1955; Code 1960, § 24-22; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2018-140, § 1, 12-11-2018)
Sec. 70-136. - Employment of other services.
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The board of trustees may employ such clerical and technical services as are required for the proper operation of the retirement system. The compensation for such services shall be paid out of the expense fund.
(Ord. No. 874, § 8, 6-28-1955; Code 1960, § 24-22; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-137. - Reports and records; mortality and other tables.
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(a)
The secretary of the board of trustees shall keep or shall cause to be kept such data as shall be necessary for an actuarial valuation of the assets and liabilities of the retirement system. The board shall render a public report on or before May 1 of each year which has been audited by the auditing firm employed by the city, showing the fiscal transactions of the retirement system for the year ended and preceding June 30 and the last balance sheet showing the financial condition of the retirement system by means of an actuarial valuation of the assets and liabilities of the retirement system.
(b)
The board shall adopt such mortality and other tables of experience as are necessary in the operation of the retirement system.
(Ord. No. 874, § 9, 6-28-1955; Code 1960, § 24-23; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-138. - Medical committee.
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(a)
The medical committee shall consist of two physicians, one of whom shall be appointed by the board of trustees, and one by a member claiming disability benefits or by the beneficiary of a member whose death occurred in the line of duty.
(b)
The medical committee shall investigate all essential statements and certificates of a medical nature by or on behalf of a member or retirant in connection with an application for benefits or accumulated benefits provided for under this retirement system. The committee shall report in writing to the board its conclusions on medical matters referred to it. If the two physicians do not agree as to the medical condition of the member, a third physician shall be appointed by the first two so designated. All fees and expenses of such committee shall be paid from the expense fund.
(Ord. No. 874, § 8, 6-28-1955; Code 1960, § 24-22; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995)
Cross reference— Boards, commissions and committees, § 2-581 et seq.
Secs. 70-139—70-165. - Reserved.
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DIVISION 3. - FUNDS AND ACCOUNTS
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Sec. 70-166. - Annuity savings fund created; deduction of contribution; transfer of funds of retired members.
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(a)
The annuity savings fund is created. The annuity savings fund shall be the fund in which shall be accumulated, at regular interest, the contributions from the compensation of members to provide for their annuities. The contributions of a member shall be in accordance with the retirement plan under section 70-203.
(b)
The officer responsible for making up the payroll shall cause the contributions provided for in this section to be deducted from the compensation of each member on each and every payroll for each and every payroll period so long as he remains a member in the employ of the city. Each of such amounts, when deducted by the officer responsible for signing city vouchers and checks, shall be paid into the funds of the retirement system and when so paid shall be credited to the individual annuity savings fund account of the member from whose compensation such deduction was made. The member's contributions, provided for in this article, shall be made notwithstanding that the minimum compensation provided for by law for any member shall be changed thereby. Each member shall be deemed to consent and agree to the deductions made and provided for in this article and shall receipt for the member's full compensation. Payment of the member's compensation less such deduction shall be made in full and complete discharge and acquittance of all claims and demands for payment, except as to benefits provided by the retirement system.
(c)
In addition to the contributions deducted from the compensation of a member, as provided in this section, any member may redeposit in the annuity savings fund, by a single payment or by an increased rate of contribution, an amount equal to the total amount or any part thereof which the member may have previously withdrawn therefrom as provided by the retirement system.
(d)
Upon retirement of a member, either the employee's accumulated contributions shall be transferred from the annuity savings fund to the annuity reserve fund or the employee may elect to withdraw the employee's annuity in a lump sum. At the expiration of a period of four years from the date an employee ceases to be a member, any balance of accumulated contributions standing to his credit in the annuity savings fund, unclaimed by such member, shall be transferred to the pension reserve fund unless such member has at least ten years of credited service and indicates to the board in writing, at time of separation, his intent to defer pension benefits as provided in section 70-239.
(Ord. No. 874, § 29, 6-28-1955; Code 1960, § 24-41; Ord. No. 2819, § 6, 10-23-1973; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2010-69, § 1, 12-14-2010; Ord. No. 2012-28, § 1, 5-22-2012)
Sec. 70-167. - Annuity reserve fund.
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The annuity reserve fund is created. The annuity reserve fund shall be the fund from which shall be paid all annuities and all benefits in lieu of annuities payable as provided by the retirement system. If a retirant retired on account of disability is restored to active service, the retirant's annuity reserve fund shall be transferred from the annuity reserve fund to the annuity savings fund and shall be credited to his individual account therein. All payments from the annuity reserve fund shall be on a monthly basis.
(Ord. No. 874, § 30, 6-28-1955; Code 1960, § 24-42; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-168. - Pension reserve fund; contributions by city.
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(a)
The pension reserve fund is created. The pension reserve fund shall be the fund in which shall be accumulated reserves for the payment of all pensions and other benefits payable from the contributions made by the city and any instrumentalities of the city or otherwise and from which shall be paid all pensions and all benefits in lieu of pensions to retirants and beneficiaries of the retirement system. Payments from this fund shall be on a monthly basis. Contributions by the city and instrumentalities of the city or otherwise to the retirement system shall be an amount according to this section.
(b)
The city contributions to the retirement system each fiscal year which together with contributions made by members during the fiscal year shall be sufficient to (i) fully fund the actuarial cost of benefits likely to be paid on account of service rendered by members during the year, and (ii) finance the unfunded actuarial costs of benefits likely to be paid on account of service rendered by members prior to the current year. The contributions shall be computed by the actuary as level percents of member payroll in accordance with generally recognized actuarial principles and the provisions of part VII, F.S. ch. 112. The board of trustees shall annually certify to the city council the contributions determined according to this section, and the city council shall appropriate and pay to the retirement system the contributions so certified.
(c)
The floor or minimum annual city contribution to the retirement system shall be established at 22 percent of member payroll. Once every five years, the city may lower the floor or reduce its minimum contribution, or raise the floor and increase its minimum contribution, by no more than two percent of member payroll only if supported by an actuarial study, subject to approval by the city council, by ordinance, and the board of trustees. In no circumstances, shall the minimum annual city contribution be less than 16 percent of member payroll or more than 28 percent of member payroll. This paragraph is subject to the provisions of paragraph 70-168(b) above.
(d)
If the amounts appropriated in the budget in any year, as provided in this section, shall be insufficient to pay in full the amounts due in such year to all beneficiaries of the retirement system, the amount of such insufficiency shall thereupon be provided by the appropriating authorities of the city.
(Ord. No. 874, § 31, 6-28-1955; Code 1960, § 24-43; Ord. No. 1497, § 1, 8-28-1962; Ord. No. 1625, § 1, 9-24-1963; Ord. No. 1786, § 1, 7-13-1965; Ord. No. 1888, § 1, 7-12-1966; Ord. No. 2130, § 4, 6-25-1968; Ord. No. 2369, § 1, 9-22-1970; Ord. No. 2921, § 2, 10-22-1974; Ord. No. 83-27, § 1, 3-8-1983; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2009-54, § 1, 8-25-2009)
Sec. 70-169. - Expense fund.
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The expense fund shall be the fund to which shall be credited all money provided by the city to pay the administration expense of the retirement system, and from which shall be paid all expenses necessary in connection with the administration of the retirement system. The board of trustees shall annually certify the appropriating authorities of the city the amount of appropriation necessary to administer the retirement system during the ensuing fiscal year, and the city shall appropriate such amount to the credit of the expense fund.
(Ord. No. 874, § 32, 6-28-1955; Code 1960, § 24-44; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-170. - Management of funds; authority of board for investment; depositories.
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(a)
The board of trustees shall endeavor to maintain a balanced portfolio, always emphasizing that the financial soundness of the retirement system and safety of the funds shall be the primary consideration.
(b)
The board shall be the trustees of the assets of the retirement system and shall have power to make purchases, sales, exchanges, investments and reinvestments for and on behalf of the funds subject to the provisions of F.S. §§ 18.10 and 215.47 and the investment policy of the board, which shall be adopted by resolution.
(c)
The board and its agents shall comply with all applicable federal and state laws, as amended from time to time, as they relate to the discharge of their duties, including but not limited to acting in accordance with F.S. chs. 112, 121, 215 and 280.
(d)
The board and any agents it retains shall, at all times, discharge their duties for the exclusive purpose of providing benefits to the retirement system members and their beneficiaries.
(e)
The board may retain qualified investment advisors or managers or both to assist the board with investments or to manage the funds of the system, provided that the investment advisors or managers are:
(1)
Registered as investment advisors pursuant to the Investment Advisors Act of 1940.
(2)
A bank as defined by the Investment Advisors Act of 1940.
(3)
An insurance company qualified to manage, acquire or dispose of assets in a plan pursuant to state laws.
(f)
The board may also retain other consultants, as it deems necessary, to assist in investment management.
(g)
The board shall have the right to designate a corporate trustee and/or custodian, which shall be a bank or trust company licensed under a state or the federal government of the United States for the purpose of safeguarding and investing the assets until they are needed for disbursement for benefits or refunds under the system, as set forth in this chapter, subject to the provisions of this section, state statutes, and the board's investment policy.
(h)
Investment advisors, managers, consultants and the corporate trustee or custodian may be compensated for their services directly from investment earnings.
(i)
All final decisions or purchases and sales of investments shall be made by the board or its designated registered investment advisor/manager. The treasurer of the system may be authorized to make such purchases or sales on behalf of the board as are permitted under the board policy.
(j)
All funds of the retirement system shall be held for the sole purpose of meeting disbursements for pensions, annuities and other payments authorized by the provisions of the retirement system and shall be used for no other purpose. There shall be kept on deposit, in such depository as is designated by the board, available funds as are necessary to meet the needs of the system. All such deposits shall be secured in the manner prescribed by state law.
(k)
The description of the various funds of the retirement system shall be interpreted to refer to the accounting records of the retirement system and not to the segregation of monies in the funds of the retirement system.
(Code 1960, § 24-45; Ord. No. 79-70, § 1, 4-24-1979; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 92-93, 9-8-1992; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-171. - Withdrawals of money from any fund limited.
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No withdrawals of monies from any of the funds created in this article shall be allowed for any purpose other than specified.
(Ord. No. 874, § 34, 6-28-1955; Code 1960, § 24-46)
Sec. 70-172. - Allowance of regular interest.
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(a)
The board of trustees annually shall allow regular interest on the mean amount of assets credited to the various funds of the retirement system except the expense fund, provided that interest on contributions from members credited to the annuity savings fund within any one fiscal year shall begin on the first day of the fiscal year next following and shall be computed at the end of the fiscal year. The amounts of interest so allowed shall be due and payable to such funds of the retirement system and shall be annually credited thereto by the board from interest and other earnings or monies of the retirement system. Any additional amount necessary to allow regular interest on the funds of the retirement system shall be paid from the pension reserve fund, and all interest and other earnings from deposits and investments not required for the allowance of regular interest shall be credited to the pension reserve fund.
(b)
To offset costs of the city's pension reserve, there shall be transferred from the employees' annuity savings fund, effective fiscal year 1991-1992, $200,000.00 annually, such amount to come from the interest earned by the annuity savings fund prior to distribution of the interest to the employee's individual annuity savings account. The $200,000.00 shall be transferred to the city's pension reserve fund. If the city's contribution rate as determined by the board's actuary is below 12 percent, the $200,000.00 shall not be deducted.
(Ord. No. 874, § 35, 6-28-1955; Code 1960, § 24-47; Ord. No. 2130, § 5, 6-25-1968; Ord. No. 2833, § 1, 1-22-1974; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995)
Secs. 70-173—70-200. - Reserved.
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DIVISION 4. - MEMBERSHIP
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Sec. 70-201. - Composition; exclusions.
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(a)
The membership of the retirement system shall consist of the following:
(1)
All persons and employees of the city who were in the classified service of the city on the day preceding the effective date of January 1, 1956, of the retirement system and who continue in the classified service of the city on and after the effective date of the retirement system and all persons who became classified employees of the city on and after the effective date of January 1, 1956, of the retirement system, except as provided in this section.
(2)
Effective retroactive to January 1, 1990:
a.
All part-time employees working 22½ hours or more a week will be eligible to participate in the pension plan upon being continuously employed by the city for one year, at the part-time employee's option.
b.
All full-time employees shall participate in the pension plan except as provided in this section.
c.
All classified employees who prior to April 1, 1991 were not permitted to participate in the pension plan because of their age shall be given credit for each year of classified service to include probationary service toward a vested or normal retirement to a maximum of ten years of membership credit service time. In order to receive this benefit an employee must join the system.
(3)
Any employee as of October 1, 1992, who has reached his 55th birthday before entering into employment with the city may, at the employee's option, join the retirement system. All monies contributed by an employee to the annuity savings funds shall be returned to the employees if they do not attain permanent status.
(b)
The membership of the retirement system shall not include the following:
(1)
Any person whose services are compensated for on a fee or contractual basis;
(2)
The medical committee;
(3)
Elected or appointed officials not in the classified service;
(4)
City attorney;
(5)
Assistant city attorneys;
(6)
Assistant city attorneys who are appointed and serve as a department or division head; or
(7)
Persons employed in a temporary or provisional status for less than nine months.
(8)
Any person, other than a police officer or firefighter, hired as an employee of the city on or after April 1, 2012.
(c)
In all cases of doubt, the board of trustees shall decide who shall be a member within the meaning of the provisions of the retirement system.
(Ord. No. 874, § 10, 6-28-1955; Ord. No. 1064, § 1, 8-13-1957; Code 1960, § 24-24; Ord. No. 2130, § 1, 6-25-1968; Ord. No. 3054, § 1, 1-13-1976; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2011-25, § 1, 5-10-2011; Ord. No. 2012-27, § 1, 5-22-2012)
Editor's note— The provisions of Ord. No. 2012-27 adopted May 22, 2012, shall become effective retroactively to April 1, 2012.
Sec. 70-202. - Application.
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(a)
The application for membership in the retirement system must include the following:
(1)
Designation of a beneficiary, including name and address.
(2)
Verification of date of birth.
(3)
Such further information as shall be prescribed by the board of trustees.
(b)
All forms used shall be prescribed by the board.
(Ord. No. 874, § 11, 6-28-1955; Code 1960, § 24-24.1; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-203. - Retirement plans.
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(a)
Except as otherwise provided in section 70-210, members of the retirement system shall contribute seven percent of the member's compensation to the annuity savings fund. Notwithstanding the foregoing, in accordance with Section 415(c)(1) of the Code, the contributions to the annuity savings fund shall not exceed the lesser of $40,000.00 ($52,000.00 for 2014 and adjusted annually for cost-of-living adjustments under Section 415(d)(1) of the Code) or 100 percent of the member's compensation. For purposes of the annuity savings fund, the definition of "compensation" is the definition provided in Treasury Regulation Section 1.415(c)-2.
(b)
All members enrolled in the plan on January 26, 1970, are eligible for retirement after 20 years of service or the attainment of age 50.
(c)
New members enrolling in the plan on or after January 27, 1970, and prior to January 1, 1974, must have at least 20 years of membership service or must have reached the age of 55 years with a minimum of 15 years of membership service in order to be eligible for normal retirement.
(d)
There shall be no vested rights in any pension benefits for any members enrolling after January 1, 1970, who have less than ten years of membership service.
(e)
New members enrolling in the plan on and after January 1, 1974, must have at least 20 years of membership service, and the total of age and service when added together must equal at least 70 points, in order to be eligible for retirement benefits as outlined in section 70-238.
(f)
Those employees hired prior to October 5, 1992 as full-time noncertified employees shall be permitted to count their noncertified time towards meeting the time requirements as specified in subsections (b), (c), (d), and (e) of this section as follows: The noncertified time shall be known as service time and shall count towards the time needed to receive a retirement. Service time shall differ from membership service credit time. The monetary amount paid to an employee will be the appropriate percentage based on the particular retirement plan applicable to an employee, multiplied times the years of membership service credit time.
(g)
Those individuals desiring to convert noncertified time to membership service credit time may do so by purchasing up to a maximum of four years of noncertified time. In order to purchase such time an employee would be required to pay into the pension reserve fund such amounts as determined by the board of trustees' actuary, at no cost to the city.
(h)
Part-time employees working 22½ or more hours per week would have their time prorated and would have the option of either joining or not joining the pension plan. Part-time employees shall earn one-half year for each year of service and may buy back up to four full years. If a part-time employee does not desire to participate in the plan and later becomes full time, the employee would be permitted to count the service time on a prorated basis.
(Ord. No. 874, § 12, 6-28-1955; Code 1960, § 24-25; Ord. No. 2130, § 2, 6-25-1968; Ord. No. 2302, § 1, 1-27-1970; Ord. No. 2370, § 1, 9-22-1970; Ord. No. 2476, § 1, 7-27-1971; Ord. No. 2819, § 2, 10-23-1973; Ord. No. 3052, § 2, 1-13-1976; Ord. No. 79-71, § 1, 4-24-1979; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2010-69, § 1, 12-14-2010; Ord. No. 2012-28, § 1, 5-22-2012; Ord. No. 2014-29, § 2, 5-27-2014; Ord. No. 2015-22, § 1, 5-26-2015)
Sec. 70-204. - Termination of membership; effect of reemployment.
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(a)
Except as otherwise provided in this article, if a member separates from the services of the city, except to become a retirant or for death, the member shall forfeit the member's credited service at the time of separation; and the member shall thereupon cease to be member. However, if such person is reemployed by the city within a period of four years from and after the date of the member's last separation from service, the credited service forfeited by the member at the time of the member's last separation from service shall be restored to the member's credit. Notwithstanding the preceding sentence, effective on the effective date of this Ordinance, if a member who is not a police officer member or firefighter member is reemployed by the city within a period of ten years from and after the date of the member's last separation from service, the credited service forfeited by the member at the time of the member's last separation from service shall be restored to the member's credit upon such conditions as the board of trustees may require, such as restoration of the member's annuity account with interest, if the member withdrew his/her annuity account at the time of separation. This section shall apply in all cases of separation from the employment of the city except as provided in section 70-205, and shall apply to any member, who is not a police officer member or firefighter member, and who otherwise meets the criteria set forth in this section, who has been reemployed by the city on or after January 1, 2012.
(b)
Nothing in this article is intended to construe that a person, upon ceasing to be a member of this plan shall not have the right to withdraw the total amount that the member has contributed to the annuity savings fund; such person shall not receive any part of the funds deposited in the pension reserve fund by the city or any instrumentality of the city. The withdrawal of any funds from the annuity savings fund shall not affect any vested rights. Any withdrawal by a former member under this paragraph shall be permitted only upon a written request by the former member in a form and manner determined by the board of trustees.
(Ord. No. 874, § 13, 6-28-1955; Code 1960, § 24-26; Ord. No. 2882, § 1, 6-11-1974; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2005-99, § 1, 10-11-2005; Ord. No. 2010-69, § 1, 12-14-2010; Ord. No. 2012-28, § 1, 5-22-2012; Ord. No. 2014-05, § 1, 1-28-2014; Ord. No. 2014-29, § 2, 5-27-2014; Ord. No. 2015-03, § 1, 2-24-2015)
Sec. 70-205. - Violating civil service regulations; reinstatement.
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If a member of the retirement system is discharged or suspended because of a violation as stipulated in the rules and regulations of the personnel board and if the member subsequently is exonerated of such charges and is reinstated in the city service, the member shall receive membership service credit for the period the member was under suspension or discharge, and the member shall again become a member of the retirement system.
(Ord. No. 874, § 14, 6-28-1955; Code 1960, § 24-27; Ord. No. 3052, § 4, 1-13-1976; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-206. - Creditable service.
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(a)
Under this article, the board of trustees shall fix and determine by appropriate rules and regulations how much service in any calendar year is equivalent to a year of service, but in no case shall less than ten days' service in a calendar month constitute a month of service, nor shall more than one year of service be creditable for all service rendered in one calendar year.
(b)
After January 27, 1970, no member shall receive membership service credit for any period of time unless the member and/or the city, as may be otherwise applicable, have contributed the required amounts to the pension reserve fund for such period.
(Ord. No. 874, § 15, 6-28-1955; Code 1960, § 24-28; Ord. No. 2303, § 1, 1-27-1970; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-207. - War service credit; qualified military service.
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If a member of the retirement service who has been continuously employed for a period of one calendar year or more as a member is called or enlists in the military, naval, marine, air force or other branch of the Armed Service of the United States Government during time of war or other national emergency recognized by the board of trustees, such war service shall be credited to the member as membership service, and the city shall continue to contribute to the pension reserve fund the same amount of money as it had previously been contributing immediately prior to induction into the armed service, provided that such member returns to work for the city within the time specified by the civil service rules and regulations of the city and, further, providing that such member will be permitted, if the member so desires, to pay into his annuity savings fund the same amount the member would have paid had the member not been absent for military service.
Notwithstanding any provision of this plan to the contrary, effective as of December 12, 1994, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of the Internal Revenue Code of 1986, as amended, USERRA or F.S. chs. 175 and 185, as applicable.
For years beginning after December 31, 2008, (i) an individual receiving a differential wage payment, as defined in Section 3401(h)(2) of the Internal Revenue Code, shall be treated as an employee of the employer making the payment, (ii) the differential wage payment shall be treated as compensation, and (iii) the plan shall not be treated as failing to meet the requirements of any provision described in Section 313(u)(1)(C) of the Internal Revenue Code by reason of any contribution or benefit which is based on the differential wage payment.
(Ord. No. 874, § 16, 6-28-1955; Code 1960, § 24-29; Ord. No. 1624, § 1, 9-24-1963; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2015-22, § 1, 5-26-2015)
Sec. 70-208. - Purchase of membership service credit time.
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A member of the retirement system shall be permitted to purchase up to a maximum of four years of membership credit service time. The cost to buy the time shall be paid totally by the employee. The retirement board's actuary shall provide the city with the appropriate tables to ensure no cost to the retirement system or the city. Effective December 1, 2017, general employee members with less than 16 years of actual service with the city (excluding any service credit purchased pursuant to this section) and 62 points on that date shall be prohibited from purchasing membership credit service time. Effective December 1, 2017 for general employee members, the purchase of membership credit service time pursuant to this section shall be irrevocable, and any such member who has purchased membership credit service time shall be prohibited from selling such service time back to the retirement plan. Effective October 1, 2018, police officer members with less than 16 years of actual service with the city (excluding any service credit purchased pursuant to this section) and 66 points on that date shall be prohibited from purchasing membership credit service time, except that police officer members with 16 or more years of actual service with the city but less than 66 points on October 1, 2018 shall be eligible to purchase up to two years of membership credit service time upon reaching 25 years of actual service with the city (not to exceed a total maximum of four years of membership credit service time purchased altogether), contingent on paying the full actuarial cost of such membership credit service time and immediate separation from city employment. Effective October 1, 2018 for police officer members, the purchase of membership credit service time pursuant to this section shall be irrevocable, and any such member who has purchased membership credit service time shall be prohibited from selling such service time back to the retirement plan. Effective October 22, 2019, firefighter members shall be prohibited from purchasing membership credit service time. Any purchase of membership credit service time by a firefighter member made prior to October 22, 2019 pursuant to this section shall be irrevocable, and any such member who has purchased membership credit service time shall be prohibited from selling such service time back to the retirement plan. Notwithstanding any other provision of this section, effective [date of ratification of the 2023-2026 FOP collective bargaining agreement by both parties] police officer members who are employed and not participating in the DROP on that date, regardless of date of hire, may purchase up to four years of membership credit service time, contingent on paying the full actuarial cost of such membership credit service time. The years of membership credit service time purchased by police officer members may be used to attain minimum eligibility requirements for normal retirement or maximum benefits under the plan.
(Code 1960, § 24-29.1; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2017-081, § 1, 11-28-2017; Ord. No. 2018-097, § 1, 9-25-2018; Ord. No. 2019-090, § 1, 10-22-2019; Ord. No. 2023-118, § 1, 11-14-2023)
Sec. 70-209. - Members' service accounts.
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The board of trustees shall certify a member's service account for each member and shall credit the account with the number of years of membership service and prior service credit to which the member may be entitled under the retirement system.
(Ord. No. 874, § 17, 6-28-1955; Code 1960, § 24-30; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-210. - Member contributions to retirement plan.
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(a)
All members who are not police officer members or firefighter members shall make contributions to the retirement plan as follows:
(1)
Effective May 15, 2014 through September 30, 2014, members shall contribute five percent of compensation to the retirement plan. Effective October 1, 2014 through November 30, 2017, members shall contribute four percent of compensation to the retirement plan. If the retirement plan funding level as reported in the actuarial valuation, exceeds 80 percent, effective the month next following the actuarial valuation in which the funding level was reported, members shall contribute three percent of compensation to the retirement plan. If the retirement plan funding level as reported in the actuarial valuation, exceeds 100 percent, effective the month next following the actuarial valuation in which the funding level was reported, no member contribution shall be required.
(2)
Effective November 30, 2017, members shall contribute nine percent of compensation to the retirement plan, except as otherwise provided in paragraph (3) below.
(3)
Notwithstanding paragraphs (1) and (2) above, members who are eligible for full retirement benefits as of May 14, 2014 (i.e., members who have 20 years of civil service and 70 points when age plus years of civil service are combined) shall not be required to contribute to the retirement plan before November 30, 2017. However, such members shall be required to contribute five percent of compensation to the retirement plan effective November 30, 2017.
(4)
Members shall be provided a contribution election form each year in which to elect one of the following contribution options:
a.
Members may deduct the applicable retirement plan contribution from the member's annuity contribution and receive the remainder as compensation.
b.
Members may deduct the applicable retirement plan contribution from the member's annuity contribution and contribute the remainder to the member's annuity account.
c.
Members may make both the annuity contribution and the applicable retirement plan contribution.
d.
Members may deduct a portion of the applicable retirement plan contribution from the member's annuity contribution and a portion of the applicable retirement plan contribution from the member's compensation.
(5)
Notwithstanding any other provision of this subsection (c), effective the first pay period following [date of ratification of the 2023-2026 FOB collective bargaining agreement by both parties or October 1, 2023, whichever is later], contributions to the retirement plan by police officer members shall be increased by one percent of compensation to a total contribution of nine percent. Effective the first pay period following October 1, 2024, contributions to the retirement plan by police officer members shall be increased by an additional one percent of compensation to a total member contribution of ten percent. These two increases will apply to all police officer members. A member who separates from city employment prior to vesting may obtain a refund of the additional contribution with interest at the rate of three percent per annum.
(b)
Firefighter members shall make pension contributions as follows:
(1)
Effective October 1, 2013 through September 30, 2014, firefighter members hired prior to November 15, 2013 shall contribute five percent of compensation to the retirement plan. Effective October 1, 2014 through June 3, 2020, firefighter members shall contribute four percent of compensation to the retirement plan. Effective June 4, 2020, firefighter members, except those who became eligible for normal retirement on or before November 15, 2013, shall contribute six percent of compensation to the retirement plan; effective October 1, 2020, such firefighter members shall contribute eight percent of compensation to the retirement plan; and effective October 1, 2021, such firefighter members shall contribute ten percent of compensation to the retirement plan.
(2)
Notwithstanding paragraph (1) above, firefighter members who are eligible for full retirement benefits as of November 15, 2013 (i.e., members who have 20 years of credited service and 70 points when age plus years of credited service are combined) shall not be required to contribute to the retirement plan. Effective June 4, 2020, firefighter members who became eligible for full retirement benefits on or before November 15, 2013 shall contribute two percent of compensation to the retirement plan; effective October 1, 2020 such firefighter members shall contribute four percent of compensation to the retirement plan; and effective October 1, 2021 such firefighter members shall contribute six percent of compensation to the retirement plan.
(3)
A firefighter member who separates from city employment prior to vesting may obtain a refund of member contributions made on and after June 4, 2020, with interest at the rate of three percent per annum, in lieu of receiving any benefits from the retirement plan.
(4)
Firefighter member contributions may be made in lieu of or in addition to annuity fund contributions as provided in section 70-203.
(c)
Police officer members shall make pension contributions as follows:
(1)
Effective March 2, 2014 through September 30, 2014, police officer members hired before that date shall contribute five percent of compensation to the retirement plan. Effective October 1, 2014 through September 30, 2018, police officer members shall contribute four percent of compensation to the retirement plan. Effective October 1, 2018, all police officer members, except those who became eligible for normal retirement on or prior to March 2, 2014, shall contribute six percent of compensation to the retirement plan; effective October 1, 2019, police officer members shall contribute eight percent of compensation to the retirement plan; and effective October 1, 2020, police officer members shall contribute ten percent of compensation to the retirement plan. Effective October 1, 2018, police officer members who became eligible for normal retirement on or prior to March 2, 2014, shall contribute two percent of compensation to the retirement plan; four percent of compensation, effective October 1, 2019; and six percent of compensation, effective October 1, 2020. Effective June 29, 2022, contributions to the retirement plan by police officer members shall be reduced by one percent of compensation. Effective on October 1, 2022, contributions to the retirement plan by police officer members shall be reduced by an additional one percent of compensation. Police officer members hired on or after June 29, 2022, shall contribute nine percent of compensation to the retirement plan which shall be further reduced to eight percent of compensation effective October 1, 2022. Police officer members hired on or after October 1, 2022 shall contribute eight percent of compensation to the retirement plan.
(2)
Compensation used for determining member contributions shall include the same components of compensation that are used to determine retirement benefits.
(3)
Police officer member contributions may be made in lieu of or in addition to annuity fund contributions as provided in section 70-203.
(4)
A police officer member who separates from city employment prior to vesting may obtain a refund of member contributions made on and after October 1, 2018, with interest at the rate of three percent per annum, in lieu of receiving any benefits from the retirement plan.
(d)
Member contributions shall be "picked-up" by the city in accordance with Section 414(h) of the Internal Revenue Code. As a result, the member contributions shall be treated as employer contributions for U.S. income tax purposes, and no portion of the picked-up contribution may be included in the member's compensation.
(Ord. No. 2014-29, § 2, 5-27-2014; Ord. No. 2017-081, § 1, 11-28-2017; Ord. No. 2018-097, § 1, 9-25-2018; Ord. No. 2019-090, § 1, 10-22-2019; Ord. No. 2020-016, § 1, 5-28-2020; Ord. No. 2022-068, § 1, 8-23-2022; Ord No. 2023-118, § 1, 11-14-2023)
Secs. 70-211—70-235. - Reserved.
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DIVISION 5. - BENEFITS
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Sec. 70-236. - Eligibility for retirement from service.
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Any member who has attained his eligible retirement requirements, as defined in section 70-203, may retire from city service upon written application to the board of trustees.
(Ord. No. 874, § 18, 6-28-1955; Code 1960, § 24-31; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-237. - Reemployment.
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No person who shall have been retired from the city service under this retirement plan shall be eligible for reemployment by the city while receiving benefits from the retirement system, except that this shall not prohibit such person from holding public office and receiving the salary therefrom and except under the following limited circumstances: Where there is a documented operational necessity involving life safety concerns, the city may reemploy a retiree to perform the duties of a public safety communications officer, without affecting the employee's retirement benefits, as a contract employee, after a six month separation from service with the city, for up to 30 hours a week. Notwithstanding any other provision of this section, retired building, zoning and fire safety inspectors, and plans examiners may be reemployed by the city after a six-month separation from city employment, without affecting the person's retirement benefits. Such reemployed employees shall not be eligible to participate in a city sponsored retirement plan other than a deferred compensation plan funded entirely with voluntary employee contributions.
(Ord. No. 874, §§ 19, 20, 6-28-1955; Ord. No. 1001, § 1, 12-11-1956; Code 1960, § 24-32; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2013-23, § 1, 3-26-2013; Ord. No. 2014-05, § 1, 1-28-2014; Ord. No. 2017-081, § 2, 11-28-2017)
Sec. 70-238. - Service retirement allowance.
modified
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(a)
Prior to October 5, 1990. Upon retirement from service as provided in sections 70-236 and 70-237, a member who has ten or more years of service credited to the member's service account shall receive a service retirement allowance consisting of the following:
(1)
Annuity. An annuity which shall be the actuarial equivalent of the member's accumulated contributions standing to his or her credit in the annuity savings fund at the time of retirement; and
(2)
Basic pensions. A basic pension as follows:
EXPAND
Period Basic Pension
October 1, 1982 through September 30, 1983 $1,400.00
October 1, 1983 through September 30, 1984 1,600.00
October 1, 1984 and after 1,800.00
(3)
Service pensions. A service pension equal to 1.75 percent of the average final compensation for each year of membership service and/or prior service credited to the member's service account, not to exceed a total of 30 years or a service pension of two percent of the average final compensation for each year of membership service and/or prior service credited to the member's service account, not to exceed a total of 30 years, provided the member has at least 20 years of credited service, and his or her age and credited service when added together equal at least 75 points, and retiree has participated under the seven percent plan for a minimum of ten years immediately preceding retirement.
(b)
October 5, 1990 and forward. From October 5, 1990 and forward, the member shall receive the following:
(1)
Annuity. An annuity which shall be the actuarial equivalent of the member's accumulated contributions standing to the member's credit in the annuity savings fund at the time of retirement;
(2)
Basic pension. A basic pension of $2,800.00 annually; and
(3)
Service pensions. A service pension equal to two percent of the average final compensation for each year of membership service and/or prior service credited to the member's service account, not to exceed a total of 30 years, or a service pension of 2¼ percent of the average final compensation for each year of membership service and/or prior service credited to the member's service account, not to exceed a total of 30 years, provided the member has at least 20 years of credited service, and his or her age and credited service when added together equal at least 75 points, and 70 points after October 5, 1991, and the retiree has participated in contributing seven percent into the annuity savings fund for a minimum of ten years immediately preceding retirement.
(c)
October 5, 1992 and forward. From October 5, 1992 and forward, except as otherwise provided herein, the member shall receive the following:
(1)
Annuity. An annuity which shall be the actuarial equivalent of the member's accumulated contributions standing to the member's credit in the annuity savings fund at the time of retirement;
(2)
Basic pension. A basic pension of $1,800.00 annually; and
(3)
Service pensions. A service pension equal to three percent of the average final compensation for each year of membership service and/or prior membership service credited to the member's service account, not to exceed a total of 25 years, provided the member has at least 20 years of credited service, and his or her age and credited service when added together equals at least 70 points, and the retiree continues to contribute seven percent into the annuity savings fund while employed by the city.
(d)
Vesting. Except as otherwise provided herein and in section 70-239, members electing the option under section 70-239 with at least ten years' credited service and who have not met the requirements for normal retirement under section 70-203 shall be entitled to a basic pension of $2,800.00 annually and a service pension of two percent of average final compensation for each year of credited service.
(e)
Police officer members hired on or after March 2, 2014. Police officer members hired on or after March 2, 2014 shall receive the following:
(1)
Annuity. An annuity which shall be the actuarial equivalent of the member's accumulated contributions standing to the member's credit in the annuity savings fund at the time of retirement;
(2)
Basic pension. None; and
(3)
Service pension. A service pension equal to three percent of the average final compensation for each year of membership service and/or prior membership service credited to the member's service account, not to exceed a total of 25 years; provided the member has at least 20 years of credited service, and his or her age and credited service when added together equals at least 76 points.
(f)
Firefighter members hired on or after November 15, 2013. Firefighter members hired on or after November 15, 2013 shall receive the following:
(1)
Annuity. An annuity which shall be the actuarial equivalent of the member's accumulated contributions standing to the member's credit in the annuity savings fund at the time of retirement;
(2)
Basic pension. None; and
(3)
Service pension. A service pension equal to three percent of the average final compensation for each year of membership service and/or prior membership service credited to the member's service account, not to exceed a total of 25 years, provided the member has at least 20 years of credited service, and his or her age and credited service when added together equals at least 76 points, and the retiree continues to contribute seven percent into the annuity savings fund while employed by the city.
(g)
Additional retirement benefit, eligibility. Notwithstanding any other provision of the retirement plan, effective for members who are employed on the effective date of this ordinance and are not participating in the DROP, and for members hired on or after the effective date of this ordinance, such member who retires with more than 25 years of credited service is eligible for an additional retirement benefit equal to one and one-half of average final compensation for each year of credited service that exceeds 25 years, up to a maximum of three years or a total of four and one-half percent.
(h)
Notwithstanding any other provision of the retirement plan, the accrued benefits of all members other than police officer members and firefighter members, and except as otherwise provided in subsection (i) below, shall be frozen on December 1, 2017, as provided herein. The frozen accrued benefit of each member who is employed and not participating in the DROP on December 1, 2017 shall be calculated based on the retirement plan provisions in effect on November 30, 2017, and each member's credited service and average final compensation on that date. All such members shall be 100 percent vested in the frozen accrued benefit earned prior to December 1, 2017, and shall be eligible to receive the frozen accrued benefit upon reaching the normal retirement date in effect prior to December 1, 2017 (the date on which a member's age plus years of credited service is equal to at least 70 and the member has at least 20 years of credited service), and the member separates from City employment, or upon reaching eligibility for retirement in accordance with section 70-239. Such members shall accrue benefits on and after December 1, 2017 in accordance with subsection (i) below. Members who are employed, not participating in the DROP, and do not have at least 16 years of actual service with the city and 62 points on December 1, 2017, shall be eligible for a retirement benefit in two parts: (1) the frozen accrued benefit based on the member's credited service and the retirement plan provisions in effect on November 30, 2017, payable as provided above; and (2) the accrued benefit based on credited service and the retirement plan provisions in effect on and after December 1, 2017, payable upon separation from City employment on or after age 62 with 20 or more years of credited service.
(i)
Notwithstanding any other provision of the retirement plan, members other than police officer members and firefighter members, and except as otherwise provided in subsection (j) below, shall accrue benefits on and after December 1, 2017 in accordance with the provisions of the retirement plan in effect before December 1, 2017, except as follows:
(1)
The benefit multiplier shall be 2.0 percent for credited service earned on and after December 1, 2017, and the 1.5 percent additional benefit multiplier for service after 25 years shall be eliminated.
(2)
The maximum benefit at retirement shall be 75 percent of average final compensation, and shall apply to benefits earned before and after November 30, 2017.
(3)
Average final compensation shall be the average of the highest annual compensation received by a member during the highest eight years of credited service; provided, in no event shall a member's average final compensation be less than the highest three-year average as of December 1, 2017.
(4)
The normal retirement date shall be age 62 with 20 years of credited service.
(5)
Compensation shall be base pay only. All other types of compensation shall be excluded for retirement purposes.
(6)
There shall be no cost of living adjustment on benefits based on credited service earned on or after December 1, 2017.
(7)
Members shall not be eligible to purchase additional credited service pursuant to section 70-208 on or after December 1, 2017.
(8)
Members shall become vested in the benefit based on credited service earned on or after December 1, 2017 upon reaching age 55 with ten or more years of credited service while employed by the city. A member who reaches age 55 with ten years of service is 70 percent vested. The vesting percentage will increase by three percent for each additional year of service after ten years, up to 20 years of service. After completing 20 years of service, a member is 100 percent vested. However, a vested member who separates from city employment before age 62 is not eligible to receive a benefit based on credited service on and after December 1, 2017 until age 62. Members who do not attain age 55 with ten years of credited service while employed by the city shall not be eligible for a benefit from the retirement plan based on their credited service on and after December 1, 2017, but shall receive a refund of their member contributions to the retirement plan made on or after December 1, 2017.
(j)
The provisions of subsections (h) and (i) above shall not apply to any general employee member who reached normal retirement eligibility before December 1, 2017; nor shall such provisions apply to any general employee member who has at least 16 years of actual service with the city (excluding any service credit purchased pursuant to section 70-208) and has at least 62 points on December 1, 2017, except that the benefit multiplier shall be three percent for the first 20 years of service, and 2.0 percent after completion of 20 years of service, subject to a 75 percent maximum benefit multiplier. However, a member who has at least 16 years of actual service with the city and 62 points on December 1, 2017 and has more than 20 years of credited service on that date, shall be credited with the three percent benefit multiplier for all years of credited service earned before December 1, 2017, and the benefit multiplier will be 2.0 percent for credited service earned on and after December 1, 2017, up to the 75 percent maximum benefit multiplier.
(k)
Notwithstanding any other provision of the retirement plan, the accrued benefits of all police officer members, except as otherwise provided in subsection (m) below, shall be frozen on October 1, 2018, as provided herein. The frozen accrued benefit of each member who is employed and not participating in the DROP on October 1, 2018 shall be calculated based on the retirement plan provisions in effect on October 1, 2018, and each member's credited service and average final compensation on that date. All such members shall be 100 percent vested in the frozen accrued benefit earned prior to October 1, 2018, and shall be eligible to receive the frozen accrued benefit upon reaching the normal retirement date in effect prior to October 1, 2018 (the date on which a member's age plus years of credited service is equal to at least 70, or 76 for police officer members hired on or after March 2, 2014, and the member has at least 20 years of credited service), and the member separates from city employment, or upon reaching eligibility for retirement in accordance with section 70-239. Such members shall accrue benefits on and after October 1, 2018 in accordance with subsection (1) below. Police officer members who are employed, not participating in the DROP, and have not reached normal retirement eligibility before October 1, 2018, except as otherwise provided in subsection (m) below, shall be eligible for a retirement benefit in two parts: (1) the frozen accrued benefit based on the member's credited service, average final compensation and the retirement plan provisions in effect on October 1, 2018, payable upon entry into DROP or separation from City employment on or after the normal retirement date in effect on October 1, 2018; and (2) the accrued benefit based on credited service and the retirement plan provisions in effect on and after October 1, 2018, payable upon entry into DROP at age 52 with 25 or more years of credited service, or upon separation from city employment on or after age 55 with ten or more years of credited service or age 52 with 25 or more years of credited service, or upon separation from service following completion of the years of actual service with the city as provided in subsections (m), (n) and (o) below.
(l)
Notwithstanding any other provision of the retirement plan, police officer members, except as otherwise provided in subsection (m) below, shall accrue benefits on and after October 1, 2018 in accordance with the provisions of the retirement plan in effect on September 31, 2018, except as follows:
(1)
The benefit multiplier shall be 2.75 percent for credited service earned on and after October 1, 2018, and the 1.5 percent additional benefit multiplier for service after 25 years shall be eliminated.
(2)
The maximum benefit at retirement shall be 79.5 percent of average final compensation, and shall apply to benefits earned before and after October 1, 2018; provided, in no event shall a police officer member's benefit (including the basic pension) be less than 2.75 percent of average final compensation for all years of credited service.
(3)
Average final compensation shall be the average of the highest annual compensation received by a member during the highest five years of credited service; provided, in no event will a member's average final compensation be less than the highest three-year average as of October 1, 2018.
(4)
The normal retirement date shall be age 55 with ten or more years of credited service or age 52 with 25 or more years of credited service.
(5)
Compensation shall be base pay only. All other types of compensation shall be excluded for retirement purposes.
(6)
There shall be no cost of living adjustment on benefits based on credited service earned on or after October 1, 2018.
(7)
Members shall not be eligible to purchase additional credited service pursuant to section 70-208 on or after October 1, 2018, except as provided in section 70-208.
(8)
A member may enter the DROP upon attaining age 52 with 25 years of credited service, and may participate in the DROP for a maximum of five years.
(m)
The provisions of subsections (k) and (l) above shall not apply to any police officer member who reached normal retirement eligibility before October 1, 2018; nor shall such provisions apply to any police officer member who has at least 16 years of actual service with the city (excluding any service credit purchased pursuant to section 70-208) and has at least 66 points on October 1, 2018, except that the 2.75 percent benefit multiplier shall apply after such member attains 20 years of credited service. However, if such member has more than 20 years of credited service on October 1, 2018, the three percent benefit multiplier will apply to all years of credited service earned before October 1, 2018, and the benefit multiplier will be 2.75 percent for credited service earned after the pension changes take effect, up to the 79.5 percent maximum benefit multiplier; provided, in no event shall a police officer member's benefit (including the basic pension) be less than 2.75 percent of average final compensation for all years of credited service. Police officer members who have at least 16 years of actual service and 66 points on October 1, 2018 shall be eligible to participate in the DROP for a maximum of five years.
(n)
In addition to the normal retirement date provided in paragraph (l)(4) above, police officer members who have at least 16 years of actual service with the city (excluding any service credit purchased pursuant to section 70-208) but do not have 66 points on October 1, 2018 shall be eligible for normal retirement upon completion of 27 years of credited service, regardless of age; and such members shall be eligible to purchase up to two years of membership credit service time upon reaching 25 years of actual service (not to exceed a maximum of four years of membership credit service time purchased altogether), contingent on paying the full actuarial cost of such membership credit service time and immediate separation from city employment. Members who have at least 16 years of actual service with the city but do not have 66 points on October 1, 2018 shall be eligible to participate in the DROP for a maximum of five years upon completion of 27 years of actual service. All other benefit reductions in subsections (k) and (l) above shall apply to such members.
(o)
In addition to the normal retirement date provided in paragraph (l)(4) above, police officer members who have at least ten years of actual service with the city (excluding any service credit purchased pursuant to section 70-208) but do not have 16 years of actual service on October 1, 2018 shall be eligible for normal retirement upon completion of 27 years of credited service, regardless of age. Police officer members who have at least ten years of actual service but less than 16 years of actual service with the city on October 1, 2018 shall be eligible to participate in the DROP for a maximum of five years upon completion of 27 years of actual service. All other benefit reductions in subsections (k) and (l) above shall apply to the police officer members specified in this paragraph.
(p)
Notwithstanding any other provision of the retirement plan, police officer members who are participating in the DROP on October 1, 2018 shall have the option of extending their DROP participation period by up to two years, for a total maximum DROP participation period of five years.
(q)
Notwithstanding any other provision of the retirement plan, in no event shall a police officer member's benefit (including the basic pension) be less than 2.75 percent of average final compensation for all years of credited service.
(r)
Notwithstanding any other provision of the retirement plan, the accrued benefits of all firefighter members, except as otherwise provided in subsection (t) below, shall be frozen on November 19, 2019, as provided herein. The frozen accrued benefit of each member who is employed and not participating in the DROP on November 19, 2019 shall be calculated based on the retirement plan provisions in effect on November 18, 2019, and each member's credited service and average final compensation on that date. All such members shall be 100 percent vested in the frozen accrued benefit earned prior to November 19, 2019, and shall be eligible to receive the frozen accrued benefit upon reaching the normal retirement date in effect prior to November 19, 2019 (the date on which a member's age plus years of credited service is equal to at least 70, or 76 for firefighter members hired on or after November 15, 2013, and the member has at least 20 years of credited service), and the member separates from city employment, or upon reaching eligibility for retirement in accordance with section 70-239. Such members shall accrue benefits on and after November 19, 2019 in accordance with subsection (s) below. Firefighter members who are employed, not participating in the DROP, and have not reached normal retirement eligibility prior to November 19, 2019, except as otherwise provided in subsection (t) below, shall be eligible for a retirement benefit in two parts: (1) the frozen accrued benefit based on the member's credited service, average final compensation and the retirement plan provisions in effect on November 18, 2019, payable upon entry into DROP or separation from city employment on or after the normal retirement date in effect on November 18, 2019; and (2) the accrued benefit based on credited service and the retirement plan provisions in effect on and after November 19, 2019, payable upon entry into DROP at age 52 with 25 or more years of credited service, or upon separation from city employment on or after age 55 with ten or more years of credited service or age 52 with 25 or more years of credited service.
(s)
Notwithstanding any other provision of the retirement plan, firefighter members, except as otherwise provided in subsection (t) below, shall accrue benefits on and after November 19, 2019 in accordance with the provisions of the retirement plan in effect on November 18, 2019, except as follows:
(1)
The benefit multiplier shall be 2.75 percent for credited service earned on and after November 19, 2019, and the 1.5 percent additional benefit multiplier for service after 25 years shall be eliminated.
(2)
The maximum benefit at retirement shall be 79.5 percent of average final compensation, and shall apply to benefits earned prior to and after November 19, 2019; provided, in no event shall a firefighter member's benefit (including the basic pension) be less than 2.75 percent of average final compensation for all years of credited service.
(3)
Average final compensation shall be the average of the highest annual compensation received by a member during the highest five years of credited service; provided, in no event will a member's average final compensation be less than the highest three-year average as of November 19, 2019.
(4)
The normal retirement date shall be age 55 with ten or more years of credited service or age 52 with 25 or more years of credited service.
(5)
Compensation shall be base pay only. All other types of compensation shall be excluded for retirement purposes.
(6)
There shall be no cost of living adjustment on benefits based on credited service earned on or after November 19, 2019.
(7)
Members shall not be eligible to purchase additional credited service pursuant to section 70-208 on or after November 19, 2019.
(8)
A member may enter the DROP upon attaining age 52 with 25 years of credited service.
(t)
The provisions of subsections (r) and (s) above shall not apply to any firefighter member who reached normal retirement eligibility prior to November 19, 2019.
(u)
Notwithstanding any other provision of the retirement plan, firefighter members who entered the DROP on or after February 28, 2016 and prior to November 12, 2019 shall have the option of extending their DROP participation period by up to two years, for a total maximum DROP participation period of five years. Firefighter members who entered the DROP on or after February 28, 2016, reached the 36 month maximum DROP participation period and separated from city employment, may apply for reemployment, and upon reemployment may reinstate their DROP participation and city employment for up to a maximum of two additional years. Such members may be required to repay any benefits received from the retirement plan following separation from employment. The maximum DROP participation period shall be 60 months for firefighter members who enter the DROP on or after February 28, 2016.
(v)
Notwithstanding any other provision of the retirement plan, in no event shall a firefighter member's benefit (including the basic pension) be less than 2.75 percent of average final compensation for all years of credited service.
(w)
The provisions of subsections (r) and (s) above shall not apply to any firefighter member who has at least 16 years of actual service with the city (excluding any service credit purchased pursuant to section 70-208 of the plan) and has at least 66 points on November 12, 2019, except that the 2.75 percent benefit multiplier shall apply after such member attains 20 years of credited service. However, if such member has more than 20 years of credited service on November 12, 2019, the three percent benefit multiplier shall apply to all years of credited service earned before [November 12, 2019], and the benefit multiplier shall be 2.75 percent for credited service earned on and after [November 12, 2019], up to the 79.5 percent maximum benefit multiplier; provided, in no event shall a firefighter member's benefit (including the basic pension) be less than 2.75 percent of average final compensation for all years of credited service. Firefighter members who have at least 16 years of actual service and 66 points on November 12, 2019 shall be eligible to participate in the DROP for a maximum of five years.
(x)
In addition to the normal retirement date provided in paragraph (s)(4) above, firefighter members who have at least 16 years of actual service with the city (excluding any service credit purchased pursuant to section 70-208) but do not have 66 points on November 12, 2019 shall be eligible for normal retirement upon completion of 27 years of credited service, regardless of age; and such members shall be eligible to purchase up to two years of membership credit service time upon reaching 25 years of actual service (not to exceed a maximum of four years of membership credit service time purchased altogether), contingent on paying the full actuarial cost of such membership credited service time and immediate separation from city employment. Members who have at least 16 years of actual service with the city but do not have 66 points on November 12, 2019 shall be eligible to participate in the DROP for a maximum of five years upon completion of 27 years of actual service. All other benefit reductions in subsections (r) and (s) above shall apply to such members.
(y)
In addition to the normal retirement date provided in paragraph (s)(4) above, firefighter members who have at least ten years of actual service with the city (excluding any service credit purchased pursuant to section 70-208) but do not have 16 years of actual service on November 12, 2019 shall be eligible for normal retirement upon completion of 27 years of credited service, regardless of age. Firefighter members who have at least ten years of actual service with the City on November 12, 2019 shall be eligible to participate in the DROP for a maximum of five years upon completion of 27 years of actual service. All other benefit reductions in subsections (r) and (s) above shall apply to such members.
(z)
Notwithstanding the provisions of subsections (r) and (s) above, firefighter members who are employed and not participating in the DROP on September 21, 2023, and (1) were hired before November 12, 2013 and as of November 12, 2019 had at least 16 years of actual service with the city (excluding any service credit purchased pursuant to section 70-208) but less than 66 points; or (2), had at least ten years of actual service with the city (excluding any service credit purchased pursuant to section 70-208) but did not have 16 years of actual service on November 12, 2019 and were hired on August 23, 2004 or April 5, 2005, shall be eligible for the following benefits:
(1)
Eligibility to commence DROP participation upon completion of 25 years of membership service credit provided the sum of the member's age and years of service is equal to 70 or more.
(2)
An automatic two percent cost of living adjustment applied to the service pension earned on and after November 12, 2019 as of the first of the month following each anniversary of retirement or the first of the month following such member's 52nd birthday, whichever is later, and limited to ten such increases for a total cost of living increase of 20 percent.
(3)
A benefit multiplier of three percent of average final compensation for credited service earned on and after November 12, 2019.
(4)
Compensation applied to service earned on and after November 12, 2019 shall be equal to base pay plus any longevity or special assignment pay and any compensation received in connection with the state's firefighter supplemental compensation program.
(5)
Average final compensation shall be equal to average annual compensation earned during highest three years of credited service, but shall not be less than the three-year average compensation as of November 12, 2019.
(6)
Average final average compensation for credited service earned before November 12, 2019 shall be determined by using average final compensation as of the member's date of DROP entry or termination of employment, whichever occurs first, and shall include base salary plus any longevity or special assignment pay and any compensation received in connection with the state's firefighter supplemental compensation program.
(aa)
Notwithstanding the provisions of subsections (k), (l), (m), (n), and (o) above, police officer members who are employed and not participating in the DROP on [date of ratification of the 2023-2026 FOB collective bargaining agreement by both parties], and were hired before March 2, 2014, shall be eligible for the following benefits:
(1)
Eligibility to commence DROP participation upon completion of 25 years of membership service credit provided the sum of the member's age and years of service is equal to 70 or more.
(2)
An automatic two percent cost of living adjustment applied to the service pension earned on and after October 1, 2018, as of the first of the month following each anniversary of retirement or the first of the month following such member's 52nd birthday, whichever is later, and limited to ten such increases for a total cost of living increase of 20 percent.
(3)
A benefit multiplier of three percent of average final compensation for credited service earned on and after October 1, 2018.
(4)
Compensation applied to service earned on and after October 1, 2018, shall be equal to base pay plus any longevity or special assignment pay and any compensation received in connection with the state's law enforcement educational incentive program.
(5)
Average final compensation shall be equal to average annual compensation earned during highest three years of credited service, but shall not be less than the three-year average compensation as of October 1, 2018.
(6)
Average final average compensation for credited service earned before October 1, 2018 shall be determined by using average final compensation as of the member's date of DROP entry or termination of employment, whichever occurs first, and shall include base salary plus any longevity or special assignment pay and any compensation received in connection with the state's law enforcement educational incentive program.
(bb)
Notwithstanding any other provision of this section, police officer members who are employed and not participating in the DROP on [date of ratification of the 2023-2026 FOP collective bargaining agreement by both parties], regardless of date of hire, shall be eligible for the following benefits:
(1)
In addition to the normal retirement date provided in subsection (e) above, such members who have at least 20 years of credited service shall be eligible for normal retirement upon the date the sum of a member's age and years of credited service equal at least 70.
(2)
Such members may purchase up to four years of membership credit service time in accordance with section 70-208.
(cc)
Notwithstanding the provisions of subsections (r) and (s) above, firefighter members who are employed and not participating in the DROP on December 10, 2024, and had 16 years of actual service and at least 66 points on November 12, 2019, shall receive a three percent benefit multiplier for the first 25 years of service and an additional 1.5 percent multiplier for each full year in excess of 25 years, up to an additional three years. The maximum benefit is 79.5 percent of average final compensation, but not less than 2.75 percent of average final compensation for all years of service.
(dd)
Notwithstanding the provisions of subsections (r) and (s) above, firefighter members who are employed and not participating in the DROP on December 10, 2024, and (1) had at least ten years of actual service with the city (excluding any service credit purchased pursuant to section 70-208) but did not have 16 years of actual service on November 12, 2019 and were hired after April 5, 2005; or (2), did not have at least ten years of actual service with the city (excluding any service credit purchased pursuant to section 70-208) on November 12, 2019 but were hired before November 15, 2013, shall be eligible for the following benefits:
(1)
Eligibility to commence DROP participation upon completion of 25 years of membership service credit provided the sum of the member's age and years of service is equal to 70 or more.
(2)
An automatic two percent cost of living adjustment applied to the service pension earned on and after November 12, 2019 as of the first of the month following each anniversary of retirement or the first of the month following or the first of the month following such member's 52nd birthday, whichever is later, and limited to ten such increases for a total cost of living increase of 20 percent.
(3)
A benefit multiplier of three percent of average final compensation for credited service earned on and after November 12, 2019.
(4)
Compensation applied to service earned on and after November 12, 2019 shall be equal to base pay plus any longevity or special assignment pay and any compensation received in connection with the state's firefighter supplemental compensation program.
(5)
Average final compensation shall be equal to average annual compensation earned during highest three years of credited service, but shall not be less than the three-year average compensation as of November 12, 2019.
(6)
Average final average compensation for credited service earned before November 12, 2019 shall be determined by using average final compensation as of the member's date of DROP entry or termination of employment, whichever occurs first, and shall include base salary plus any longevity or special assignment pay and any compensation received in connection with the state's firefighter supplemental compensation program.
(7)
Members with at least 20 years of credited service shall be eligible for normal retirement upon the date the sum of a member's age and years of service equal at least 70.
(ee)
Notwithstanding any other provision of this section, firefighter members who are employed and not participating in the DROP on [date of ratification of the September 17, 2024 Memorandum of Understanding between the City and IAFF by both parties], and were hired prior to November 13, 2013, such members who have at least 20 years of credited service shall be eligible for normal retirement upon the date the sum of a member's age and years of credited service equal at least 70.
(ff)
Notwithstanding any other provision in this section, firefighter members who were hired on or after November 15, 2013, shall be eligible for normal retirement upon completion of 20 years of membership service credit provided the sum of the member's age and years of service is equal to 76 or more.
(gg)
Notwithstanding the provisions of subsections (r) and (s) above, firefighter members who were hired on or after November 15, 2013 but prior to November 12, 2019 shall be eligible for the following benefits:
(1)
An automatic one percent cost of living adjustment applied to the service pension earned on and after November 12, 2019 as of the first of the month following each anniversary of retirement or the first of the month following such member's 52nd birthday, whichever is later, and limited to ten such increases for a total cost of living increase of ten percent.
(2)
A benefit multiplier of three percent of average final compensation for credited service earned on and after November 12, 2019.
(3)
Compensation applied to service earned on and after November 12, 2019, shall be equal to base pay plus any longevity or special assignment pay and any compensation received in connection with the state's firefighter supplemental compensation program.
(4)
Average final compensation shall be equal to the average annual compensation earned during highest three years of credited service, but shall not be less than the three-year average compensation as of November 12, 2019.
(5)
Average final average compensation for credited service earned before November 12, 2019 shall be determined by using average final compensation as of the member's date of DROP entry or termination of employment, whichever occurs first, and shall include base salary plus any longevity or special assignment pay and any compensation received in connection with the state's firefighter supplemental compensation program.
(hh)
Notwithstanding the provisions of subsections (r) and (s) above, firefighter members who were hired on or after November 12, 2019 shall be eligible for the following benefits:
(1)
An automatic one percent cost of living adjustment applied to the service pension earned on and after November 12, 2019 as of the first of the month following each anniversary of retirement or the first of the month following or the first of the month following such member's 52nd birthday, whichever is later, and limited to ten such increases for a total cost of living increase of ten percent.
(2)
A benefit multiplier of three percent of average final compensation for credited service earned on and after November 12, 2019.
(3)
Compensation applied to service earned on and after November 12, 2019, shall be equal to base pay plus any longevity or special assignment pay and any compensation received in connection with the state's firefighter supplemental compensation program.
(4)
Average final compensation shall be equal to the average annual compensation earned during highest three years of credited service.
(Ord. No. 874, § 21, 6-28-1955; Code 1960, § 24-33; Ord. No. 1673, §§ 1, 2, 4-14-1964; Ord. No. 2130, § 3, 6-25-1968; Ord. No. 2304, § 1, 1-27-1970; Ord. No. 2305, § 1, 1-27-1970; Ord. No. 2819, §§ 3, 4, 10-23-1973; Ord. No. 81-52, § 1, 4-28-1981; Ord. No. 83-26, § 1, 3-8-1983; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2010-69, § 1, 12-14-2010; Ord. No. 2012-28, § 1, 5-22-2012; Ord. No. 2014-05, § 1, 1-28-2014; Ord. No. 2014-29, § 3, 5-27-2014; Ord. No. 2017-081, § 2, 11-28-2017; Ord. No. 2018-097, § 1, 9-25-2018; Ord. No. 2019-090, § 1, 10-22-2019; Ord. No. 2020-016, § 1, 5-28-2020; Ord. No. 2023-083, § 1, 9-12-2023; Ord. No. 2023-118, § 1, 11-14-2023; Ord. No. 2024-114, § 1, 12-10-2024; Ord. No. 2025-049, § 1, 6-10-2025)
Sec. 70-239. - Vesting.
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EMAIL SECTION
(a)
Upon reaching age 55, any member or former member in good standing, with at least ten years of credited service, who separated from the city prior to becoming eligible for retirement, shall be eligible for the following benefits, upon proper application to the board of trustees, as defined in section 70-236:
(1)
For ten years of credited service, such member shall be entitled to the member's annuity plus 70 percent of the basic pension and the credited service pension as outlined in section 70-238.
(2)
Three percent shall be added to the 70 percent for each full year of credited service over ten years up to 20 years.
(b)
Notwithstanding subsection (a) above, police officer members hired on or after March 2, 2014 and firefighter members hired on or after November 15, 2013, who separate from the city with at least ten years of credited service but prior to becoming eligible for normal retirement (less than 20 years of credited service or 76 points), shall, upon proper application to the board of trustees, be eligible for a benefit equal to two percent of average final compensation for each year of credited service, payable upon reaching age 59½. No basic pension shall be provided to such members.
(Code 1960, § 24-33.2; Ord. No. 2819, § 5, 10-23-1973; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2014-29, § 3, 5-27-2014)
Sec. 70-240. - Reserved.
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EMAIL SECTION
Editor's note— Ord. No. 2019-083, § 1, adopted September 24, 2019, repealed § 70-240, which pertained to optional continuance of group insurance coverage by retirants and derived from § 24-33.1 of the 1960 Code; Ord. No. 2398, § 1, 2-9-1971; Ord. No. 82-160, § 2, 11-23-1982; Ord. No. 84-70, § 1, 6-12-1984; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2007-26, § 1, 2-27-2007; Ord. No. 2008-11, § 1, 2-12-2008; Ord. No. 2014-29, § 3, 5-27-2014.
Sec. 70-241. - Service retirement allowance for members retired prior to January 27, 1970.
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EMAIL SECTION
Every former member who retired from the city under section 70-236 and/or section 70-237, who is currently receiving monthly retirement allowances, shall have the membership service pension recomputed at a rate of 1.75 percent of the average compensation for the five highest years of membership service for each year of membership service credited to his or her account; the prior service pension shall be recomputed at a rate of 1.75 percent of the average compensation for the five highest years of prior service credited to his or her account. Monthly pensions reflecting the revised amounts shall be paid beginning with checks issued on the first day of the month following the adoption date of the ordinance from which this section derives and shall not be retroactive.
(Code 1960, § 24-33.3; Ord. No. 2818, § 1, 10-23-1973; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-242. - Periodic increases to pensions.
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After a member has been retired for a period of one year, and every year thereafter, except as otherwise provided herein, the monthly pension shall be increased by two percent of the original basic pension and membership service pension, provided the retired member is at least 52 years of age. The increase shall be payable on the first day of the month following the first the member's anniversary of retirement or the first day of the month following the member's 52nd birthday, whichever is later, and is limited to a total increase of 20 percent of the original basic pension and membership service pension. Present retirants who qualify for this additional benefit shall receive the initial increase on the first day of the month following the effective date of the ordinance from which this section derives, with subsequent increases at annual intervals from such date. This section does not apply to beneficiaries or the members who have applied for a deferred pension as outlined in section 70-239. The benefit increase provided by this section 70-242 for police officer members hired on or after March 2, 2014 and firefighter members hired on or after November 15, 2013 shall be one percent per year commencing at age 52, payable for ten years.
(Code 1960, § 24-33.4; Ord. No. 2921, § 1, 10-22-1974; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2014-29, § 3, 5-27-2014)
Sec. 70-243. - Optional form of retirement income in lieu of normal service retirement allowance.
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EMAIL SECTION
(a)
Options described. The election of the options in this section by a member shall apply only to pension income, as defined in section 70-96, and shall not affect payments from the annuity, as defined in section 70-96. In lieu of the amount and form of pension income payable for normal retirement as outlined in section 70-238, as amended, a participant, while in the active service of the city as a member of the retirement plan, upon written request to the board of trustees and subject to their approval, may elect to receive such pension income of equivalent actuarial value payable as described herein. The election of any one of the following options is irrevocable after the participant retires:
(1)
Joint and 66⅔-percent survivorship. A pension income of an actuarially reduced amount of the normal benefit, payable to the retirant during the joint lifetime of the retirant and a joint pensioner designated by the retirant; and following the death of either of them, two-thirds of such reduced pension shall be payable to the survivor for the lifetime of the survivor.
(2)
Joint and 50-percent survivorship. A pension income of an actuarially reduced amount of the normal benefit, payable to the retirant during the joint lifetime of the retirant and a joint pensioner designated by the retirant; and following the death of either of them, one-half of such reduced pension shall be payable to the survivor for the lifetime of the survivor.
(3)
Joint and 100-percent survivorship. A pension income of an actuarially reduced amount of the normal benefit, payable to the retirant during the joint lifetime of the retirant and a joint pensioner designated by the retirant; this shall be a one-time reduction and will not be altered in the future as a result of the death of the retirant or the joint pensioner.
(4)
Joint and pop-up survivorship. A pension income of an actuarially reduced amount of the normal benefit, payable to the retirant during the joint lifetime of the retirant and a joint pensioner designated by the retirant; if the retirant dies first, the beneficiary's pension remains the same; if the beneficiary precedes the retirant, the retirant's pension reverts the applicable normal service retirement under subsections 70-238(c)(1), (2) and (3).
The member electing one of the options described in this subsection will designate the joint pensioner who is to receive the benefit, if any, payable under this section after the member's death and will have the power up until the time of retirement to change such designation from time to time, but any such change shall be deemed a new election and will be subject to all the limitations of this section. Each such designation will be made in writing on a form prepared by the board of trustees.
If a member dies while in the service of the city prior to retirement and the member has not reached retirement requirements and elected survivor benefits, no benefit will be payable under this option to any person, but the benefits, if any, will be determined as provided in section 70-250.
If the member dies on or off the job, while still employed with the city, and had reached retirement requirements and elected survivor benefits, the member's joint pensioner would then begin receiving retirement benefits as provided for under the joint and survivor benefit selected, based on age and years of service of the employee at time of death and the age of the joint pensioner.
If the joint pensioner dies before the member's retirement under this system, the option elected will be canceled automatically, and a retirement income of the normal form and amount will be payable to the member upon retirement, unless a new election is made prior to retirement.
The joint pensioner of a retired member who elected the optional form of retirement income provided in this section shall not be entitled to death benefits as provided in section 70-250.
(b)
Limitations. In order to receive the benefits described in this section, the member must have reached retirement requirements and elected one of the options in subsection (a) of this section, and the designated joint pensioner must be the beneficiary designated by the member prior to or at the time of retirement.
(Code 1960, § 24-33.5; Ord. No. 77-67, § 1, 6-14-1977; Ord. No. 78-60, § 1, 6-13-1978; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2005-99, § 1, 10-11-2005)
Sec. 70-244. - Lowering of contributions; increasing of benefits; hearing.
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(a)
If it shall appear to the board of trustees and to the city council that there shall be sufficient funds in reserve to justify the lowering of the contribution rates being made by the city employees under this article, the contribution rate may be lowered subject to approval of a majority vote of both the city council and the board of trustees at a public hearing before the city council.
(b)
If the board of trustees and the city council shall determine that there are sufficient funds in reserve to increase the benefits, by a majority vote of the board of trustees and a majority vote of the city council such increased benefits shall be authorized at a public hearing before the city council.
(Ord. No. 874, § 22, 6-28-1955; Code 1960, § 24-34; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-245. - Sickness or disability not connected with line of duty.
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Any person who becomes ill or disabled not connected with line of duty to such extent as to be unable to continue the person's duties as a city employee and who is unable to be gainfully employed otherwise shall, if reemployed by the city at a later date, be given credit as a member of the system for the time he was not employed; provided, however, this privilege shall not extend beyond a period of four years either at one time or at accumulated times.
(Ord. No. 874, § 23, 6-28-1955; Code 1960, § 24-35; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-246. - Service credit for disability incurred in line of duty.
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Any member of the retirement system who has been disabled in the line of duty during any period of his entire service shall be given prior service credit for the time which such a member was unemployed due to the disability in the line of duty not to exceed prior service credit for a period longer than four years.
(Ord. No. 874, § 24, 6-28-1955; Code 1960, § 24-36; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-247. - Original members; service exemption.
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Original members over 55 years of age at the inception of the retirement plan shall not be required to have ten years of service credited to their service accounts to be eligible to receive a service retirement allowance as stipulated in section 70-238.
(Ord. No. 874, § 25, 6-28-1955; Code 1960, § 24-37; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-248. - Total and permanent disability.
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Upon the application of a member who becomes totally and permanently incapacitated for duty as a city employee, the employee shall be retired by the board of trustees. The medical committee, after a medical examination of such member, shall certify (i) that such member is mentally or physically totally and permanently incapacitated for the further performance of duty in the member's classified position, and (ii) that such member should be retired; provided, further, that the report of the medical committee is concurred in by the board of trustees and that the member shall be subject to a review of the member's condition by the medical committee at the request of the board of trustees as often as the board shall deem it advisable until the employee reaches the normal retirement requirements of 70 points under this plan.
(Ord. No. 874, § 26, 6-28-1955; Code 1960, § 24-38; Ord. No. 2306, § 1, 1-27-1970; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995)
Sec. 70-249. - Disability benefits.
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(a)
Upon retirement for total and permanent disability as provided for in section 70-248, whether or not disabled member is eligible for city retirement and whether or not the disabled member has elected the lump sum withdrawal option of his annuity savings.
(1)
Disability benefits Option 1 and Option 2. A retiree for a total and permanent disability under section 70-248 for line-of-duty injuries may elect a service pension as provided in section 70-238 subject to and limited by the following options: Option 1: A service pension limited to and only to a maximum of 75 percent of the average compensation of three years of membership service that represents three individual years of the highest annual salary to which an annuity contribution has been paid to the retirement system, with insurance benefits for group health insurance as if the employee retired under normal retirement, with the retiree responsible for payment of the full health insurance premium for single dependent and/or family coverage, if the retiree desires such coverage; and Option 2: A service pension limited to and only to a maximum of 66⅔ percent of the average compensation of three years of membership service that represents three individual years of the highest annual salary to which an annuity contribution has been paid to the retirement system, with insurance benefits for group health insurance as if the employee retired under normal retirement, with the retiree responsible for payment of the active rate for single dependent and/or family coverage, if the retiree desires such coverage. The employee election between Option 1 and Option 2 shall be made one time only at the time of retirement and is irrevocable. In any event, at age 65, upon being eligible for and enrolling in Medicare Part A and Part B, the city shall pay the full cost of the premium for individual health insurance coverage for the retiree only.
(2)
Enhanced disability benefits. A retiree for a total and permanent disability under section 70-248 for line-of-duty injuries shall be eligible for enhanced disability benefits if the disability is caused by a severe injury in the line of duty, which is the direct result of one specific violent event, involving a substantial physical impact to the employee-retiree. If the employee-retiree contracts Acquired Immune Deficiency Syndrome (AIDS) or Hepatitis-C through the transmission of bodily fluids as a direct result of one specific event occurring in the line of duty, documented at the time of the event, and the employee, at the time of the event exercised universal precautions and complied with the all applicable standard operating procedures and policies of the city, then such employee-retiree is entitled to enhanced benefits provided herein. The enhanced benefits are not available to an employee-retiree who has contracted AIDS or Hepatitis-C through sexual transmission or drug use. The enhance benefits shall be a service pension limited to and only to a maximum of 75 percent of the average compensation of three years of membership service that represents three individual years of the highest annual salary to which an annuity contribution has been paid to the retirement system, with the retiree only responsible for payment of the active rate for health insurance for single dependent and/or family coverage, if the retiree desires such coverage.
The provisions of section 70-249(a)(1) and (a)(2) do not apply to firefighters and police officers who have applied for total and permanent disability under section 70-248 on or before January 1, 2007 and later retire with such disability under section 70-248, or general employees who have applied for total and permanent disability under section 70-248 on or before April 1, 2008 and later retire with such disability under section 70-248.
(b)
Disability benefits not connected with the line of duty for members shall have a service pension under section 70-238 but limited to and only to a maximum of 66⅔ percent of the average compensation of three years of membership service that represents three individual years of the highest annual salary to which an annuity contribution has been paid to the retirement system, with group health insurance benefits as provided in section 70-249(c). Members hired after October 10, 2006 shall pay the active rate for individual health insurance coverage, calculated at the rate on the date of retirement. In any event, at age 65, upon being eligible for and enrolling in Medicare Part A and Part B, the city shall pay the full cost of the premium for individual health insurance coverage for the retiree only.
(c)
The insurance benefits provided to a disabled member pursuant to this subsection shall only accrue to eligible employees injured in circumstances not connected with line of duty of injuries and circumstances that are nonjob-related with a minimum of ten years of continuous service. The city shall pay 100 percent of the cost of the insurance premium of an eligible disabled member for single coverage. The eligible disabled member shall pay the cost of the insurance premium for double or family coverage; provided, however, the eligible disabled members, as described below, shall receive a credit towards payment of the premium based on the following criteria:
EXPAND
Total monthly income from city Credit amount
From zero (0) to and including $2,000.00 75%
Greater than $2,000.00 to and including $3,250.00 50%
Greater than $3,250.00 to and including $4,500.00 25%
All rates are subject to periodic adjustments. Notwithstanding the foregoing, members other than police officer members and firefighter members who are injured in circumstances not connected with line of duty of injuries and circumstances that are nonjob-related with a minimum of ten years of continuous service, shall pay the full premium cost of health insurance for single, double or family coverage.
(Ord. No. 874, § 27, 6-28-1955; Code 1960, § 24-39; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-24, § 1, 3-28-1995; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2007-26, § 1, 2-27-2007; Ord. No. 2008-11, § 1, 2-12-2008; Ord. No. 2010-69, § 1, 12-14-2010; Ord. No. 2012-28, § 1, 5-22-2012; Ord. No. 2014-05, § 1, 1-28-2014; Ord. No. 2014-29, § 3, 5-27-2014)
Sec. 70-250. - Payments for death incurred either before or after retirement.
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(a)
If a member dies before retirement, the designated beneficiary, upon written application at the time claim is submitted, shall select one of the following options, provided the member has not reached retirement requirements and elected an option under section 70-243. The option selected under this section shall be irrevocable:
(1)
Five years of pension benefits as provided for in section 70-238.
(2)
Ten years of pension benefits at one-half of the amount as computed under option (1) in subsection (a)(1) of this section.
(b)
If a retirant dies, the designated beneficiary, upon written application at the time the claim is submitted, shall receive five years of retirement benefits as provided in section 70-238, reduced by such part as the retired member has used in the member's own retirement at the time of his death, or the designated beneficiary may elect to receive one-half of the monthly benefits to which the member is entitled, for double the applicable period of time, provided the retirant had not elected an option under section 70-243. This option shall be irrevocable.
(c)
If the member's designated beneficiary dies, there shall be no further benefits derived from this plan to any survivors of a beneficiary.
(d)
If both a member and the designated beneficiary should die within the continuance period, the unused annuitant portion of the member's contribution to the annuity savings fund shall be returned to the deceased member's estate.
(e)
In the case of a death or disability occurring on or after January 1, 2007, if a participant dies while performing qualified military service (as defined in Section 414(u) of the Internal Revenue Code), the survivors of the participant are entitled to any additional benefits (other than accruals relating to the period of qualified military service) provided under the plan as if the participant had resumed and then terminated employment by the city on account of death.
(Ord. No. 874, § 28, 6-28-1955; Ord. No. 1104, § 1, 1-28-1958; Code 1960, § 24-40; Ord. No. 2377, § 1, 10-13-1970; Ord. No. 3053, § 1, 1-13-1976; Ord. No. 91-08, § 1, 1-22-1991; Ord. No. 95-28, § 1, 4-11-1995; Ord. No. 2015-22, § 2, 5-26-2015)
DIVISION 6. - ADDITIONAL BENEFITS FOR FIREFIGHTER AND POLICE OFFICER MEMBERS IMPLEMENTING MINIMUM BENEFITS REQUIRED BY CHAPTERS 175 AND 185, FLORIDA STATUTES AND OTHER BENEFITS ALREADY PROVIDED
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Sec. 70-251. - Definitions.
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The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this article, except where the context clearly indicates a different meaning and shall also include the following definitions:
Firefighter member means any person employed by the city's fire department who is certified as a firefighter as a condition of employment according to F.S. § 633.35, as may be amended from time to time, and whose duty it is to extinguish fires, protect life or property.
Police officer member means any person who is elected, appointed or employed full-time by the city and who is also certified or required to be certified as a law enforcement officer in compliance with F.S. § 943.1395, as may be amended from time to time, and is vested with authority to bear arms and make arrests and whose primary responsibility is the prevent and detection of crime or the enforcement of the penal, criminal, traffic or highway laws of the state. This definition includes all certified supervisory and command personnel whose duties include, in whole or in part, the supervision, training, guidance and management responsibilities of full-time law enforcement officers, part-time law enforcement officers or auxiliary law enforcement officers, but does not include part-time law enforcement officers or auxiliary law enforcement officers as the same are defined in F.S. §§ 943.10(6) and (8), respectively.
(Ord. No. 2005-99, § 1, 10-11-2005)
Sec. 70-252. - Normal service retirement benefit.
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(a)
The amount of minimum monthly retirement income payable to a firefighter member or police officer member shall be an amount equal to the number of years of credited service multiplied by two percent of the member's average final compensation.
(b)
If the firefighter member or police officer member shall die prior to receiving at least 120 monthly payments, the remainder of such 120 monthly payments shall be made to the member's named beneficiary until a total of 120 monthly payments have been made. If there is no named beneficiary living at the death of the member, the balance of the 120 guaranteed monthly payments that would have otherwise become payable to the member's named beneficiary shall be commuted to a single sum and shall be paid to the firefighter member or police officer member's personal representative or administrator.
(c)
Nothing contained in this section shall limit or diminish the right of a firefighter member or police officer member to receive a greater retirement benefit under section 70-238(c)(1), (2) and (3).
(Ord. No. 2005-99, § 1, 10-11-2005)
Sec. 70-253. - Minimum eligibility requirements.
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As a minimum requirement in compliance with state law, any firefighter member or police officer member who completes ten years or more of creditable service as a firefighter or police officer and attains age 55, or completes 25 years of creditable service as a firefighter or police officer and attains age 52 is eligible for retirement and is eligible to receive the retirement benefits set forth in section 70-238 as applicable or section 70-252, whichever is greater. The existing eligibility requirements with combined years of service and age exceed the minimum requirements under state law.
(Ord. No. 2005-99, § 1, 10-11-2005)
Sec. 70-254. - Termination of membership; effect of reemployment.
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If a firefighter member or police officer member separates from the service of the city and thereafter is reemployed by the city, after a period of more than four years, the credited service forfeited by the firefighter member or police officer member at the time of the member's last separation from service shall be restored to the member's credit, provided that the firefighter member or police officer member repays into the annuity savings fund the amount that the member was withdrawn, plus interest, as determined by the board of trustees. The firefighter member or police officer member shall have at least 90 days after the member's reemployment to make repayment.
(Ord. No. 2005-99, § 1, 10-11-2005)
Sec. 70-255. - Vesting and early retirement.
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Upon reaching age 50, any firefighter member or police officer member in good standing, with at least ten years of credit service, and upon retirement and proper application to the board of trustees, shall be eligible to receive an early retirement benefit equal to the normal service retirement allowance under section either 70-238(c) or 70-252, whichever is greater, actuarially reduced to take into account the firefighter member's or police officer member's younger age and the earlier commencement of retirement benefits. In no event shall the firefighter member's or police officer member's early retirement reduction exceed three percent for each year by which the member's age at retirement preceded the member's normal retirement age.
(Ord. No. 2005-99, § 1, 10-11-2005; Ord. No. 2014-05, § 1, 1-28-2014)
Sec. 70-256. - Optional form or retirement income in lieu of normal service retirement allowance.
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In lieu of the amount and form of pension income payable for normal retirement as outlined in either section 70-238(c) or section 70-252, a firefighter member or police officer member, upon written request to the board of trustees and subject to the board of trustee's approval, may elect to receive pension income of equivalent actuarial value payable according to any one of the following options:
(a)
[Retirement income for normal retirement.] The member may elect to receive a retirement income for normal retirement in lieu of one of the survivor benefit options, provided that the monthly retirement income is payable to the member for the member's lifetime only.
(b)
[Modified monthly amount.] The member may elect to receive a modified monthly amount, payable to the member-retirant during the joint lifetime of the member-retirant and a joint pensioner, equal to 100 percent, 75 percent, 66⅔rds percent and 50 percent of the member's monthly retirement allowance to be paid at the member's death or the death of the joint pensioner, to the survivor for the lifetime of the survivor. The reduced retirement benefit shall be the actuarial equivalent of the amount of the retirement compensation otherwise payable to the member. In lieu of the other optional forms enumerated in this section, benefits may be paid in any form approved by the board so long as actuarial equivalence with the benefits otherwise payable is maintained. Regardless of any other provisions herein, the board may direct that any monthly benefit of $10.00 or less be paid in a lump sum or on such other basis as is approved by the board, provided that actuarial equivalence is maintained at all times.
(c)
Joint and pop-up survivorship. A pension income of an actuarially reduced amount of the normal benefit, payable to the member during the joint lifetime of the member and the member's designated beneficiary; if the member dies first, the designated beneficiary's pension remains the same; if the designated beneficiary's death precedes the member's death, the member's pension reverts to the applicable normal retirement pension under 70-238 or section 70-252, whichever is greater.
The firefighter member or police officer member electing option (a), (b) or (c) described in this section shall designate the joint pensioner who is to receive the benefit, if any, payable under this section after the member's death and will have the power to change such designation from time to time, but any such change shall be deemed a new election and will be subject to the approval of the board of trustees. Each such designated will be made in writing on a form prepared by the board of trustees. The firefighter member or police officer member may request for a change of joint pensioner to the board of trustees only under circumstances where the joint pensioner last previously designated by the member is alive when the member files the request, with written notice provided to that joint pensioner. The board of trustees is not required to consent to the change of joint pensioner, but if consent is provided, the board of trustees must consider the financial impact to the retirement system of the change of joint pensioner prior to consent.
If the joint pensioner or designated beneficiary dies before the firefighter member or police officer member's retirement, the option elected will be automatically cancelled and a retirement pension income of the normal form and amount under section 70-238 or 70-252, whichever is greater, will be payable to the firefighter member or police officer member upon retirement as if the election had not been made, unless a new election is made according to the provisions of this section or a new beneficiary is designated by the firefighter member or police officer member prior to retirement and within 90 days after the death of the beneficiary.
If a firefighter member or a police officer member continues employment with the city beyond the member's normal retirement date and dies prior to actual retirement and while an option elected pursuant to this section is in effect, monthly retirement income payments will be made, or a retirement benefit will be paid, under the elected option to a beneficiary designated by the member in the amount computed as if the firefighter member or police officer member had retired under the option on the date of death.
If a firefighter member or police officer member dies while in the service of the city prior to retirement and the member has not reached retirement requirements and elected survivor benefits, no benefit will be paid under this option to any person, but the benefits, if any, will be determined as provided in section 70-250.
(Ord. No. 2005-99, § 1, 10-11-2005)
Sec. 70-257. - War service credit; qualified military service.
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In determining service credit of any firefighter member or police officer member, credit for up to five years of the time spent in the military service of the armed forces of the United States shall be added to the member's years of actual service at no cost to the member if:
(a)
The member is in the active employ of the city immediately prior to such service and leaves a position for the purpose of voluntary or involuntary service in the armed forces of the United States.
(b)
The member is entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act.
(c)
The member returns to the member's employment with the city as a firefighter or police officer within one year from the date of release from such active service.
(d)
Notwithstanding any provisions of this plan to the contrary, effective as of December 12, 1994, contributions, benefits and service credit with respect to qualified military service will be provided according to Section 414(u) of the Internal Revenue Code of 1986, as amended, USERRA or F.S. chs. 175 and 185, as applicable.
(e)
For years beginning after December 31, 2008, (i) an individual receiving a differential wage payment, as defined in Section 3401(h)(2) of the Internal Revenue Code, shall be treated as an employee of the employer making the payment, (ii) the differential wage payment shall be treated as compensation, and (iii) the plan shall not be treated as failing to meet the requirements of any provision described in Section 313(u)(1)(C) of the Internal Revenue Code by reason of any contribution or benefit which is based on the differential wage payment.
(Ord. No. 2005-99, § 1, 10-11-2005; Ord. No. 2014-05, § 1, 1-28-2014; Ord. No. 2015-22, § 3, 5-26-2015)
Sec. 70-258. - Disability benefits.
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The benefit payable to a disabled firefighter member or police officer member who retires from city service as a direct result of a disability shall be the greater of the following: the benefits paid to general employees who are not a firefighter member or police officer member; the monthly income payable for ten years certain and life for which, if the firefighter member or police officer member's disability occurred in the line-of-duty, the monthly benefit shall be the accrued retirement benefit, but shall not be less than 42 percent of the member's average monthly salary at the time of the disability; or if after ten years of service, the disability is other than in the line-of-duty, the firefighter or police officer member's monthly benefit shall be the accrued normal retirement benefit, but shall not be less than 25 percent of the member's average monthly salary at the time of disability.
(Ord. No. 2005-99, § 1, 10-11-2005)
Sec. 70-259. - Payments for death incurred either before or after retirement.
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(a)
If either a firefighter member or police officer member, having at least ten years of credited service, dies prior to retirement, the member's beneficiary is entitled to benefits otherwise payable to the firefighter member or police officer member at early or normal retirement age.
(b)
A designated beneficiary of the annuity savings fund, upon written application at the time a claim is submitted, shall select the options as provided in this division and in addition, shall also obtain a refund of 100 percent of the contributions made to the annuity savings fund, less the outstanding balance of any and all retirement loans, plus interest. The beneficiary may immediately pay the balance of any outstanding retirement loans, plus interest, from other funds, but in the event the beneficiary does not pay the loans within 90 days, the board of trustees shall deduct an amount equal to the balance of the outstanding retirement loans, plus interest, from the annuity savings fund prior to the refund.
(Ord. No. 2005-99, § 1, 10-11-2005)
Sec. 70-259.1. - Federal tax provisions.
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(a)
No pension provided hereunder shall be assignable and no part of the corpus or income of the fund shall be used for, or diverted to, purposes other than for the exclusive benefit of members and their beneficiaries, and until those liabilities are satisfied, all city contributions will remain in the fund for the benefit of the members or beneficiaries if the plan is terminated or city contributions cease.
(b)
Upon termination of the plan or on the complete discontinuance of contributions under the plan, each member shall have non-forfeitable, 100% vested rights to benefits accrued to date of the termination or discontinuance to the extent funded at that time.
(c)
Notwithstanding any other provisions of this plan to the contrary, all distributions from the plan (including the DROP) shall conform to the regulations issued under Section 401(a)(9) of the Internal Revenue Code, including the incidental death benefit provision of Section 401(a)(9)(G) of the Internal Revenue Code. Further, such regulation shall override any plan or DROP provision that is inconsistent with Section 401(a)(9) of the Internal Revenue Code.
Notwithstanding any other provision of this plan to the contrary, a form of retirement income payable from this plan shall satisfy the following conditions:
(1)
If the retirement income is payable before the member's death:
a.
It shall either be distributed or commence to the member not later than April 1 of the calendar year following the later of the calendar year in which the member attains age 70½, or the calendar year in which member retires.
b.
The distribution shall commence not later than the calendar year defined above; and (i) shall be paid over the life of the member or over the lifetimes of the member, and spouse, designated beneficiary, issue or dependent, or (ii) shall be paid over the period extending not beyond the life expectancy of the member and spouse, designated beneficiary, issue or dependent.
Where a form of retirement income payment has commenced according to the preceding paragraphs and the member dies before the member's entire interest in the plan has been distributed, the remaining portion of such interest in the plan shall be distributed no less rapidly than under the form of distribution in effect at the time of the member's death.
(2)
If the member's death occurs before the distribution of the member's interest in the plan has commenced, the member's entire interest in the plan shall be distributed within five years of the member's death, unless it is to be distributed according to the following rules:
a.
The member's remaining interest in the plan is payable of the member's spouse, issue or dependent:
b.
The remaining interest is to be distributed over the life of the spouse, issue or dependent or over a period not extending beyond the life of expectancy of the spouse, designated beneficiary, issue or dependent; and
c.
Such distribution begins within one year of the member's death unless the member's spouse, is the sole designated beneficiary, in which case the distribution need not begin before the date on which the member would have attained the age of 70½ and if the member's spouse dies before the distribution to the spouse begins, this section shall be applied as if the spouse were the member.
(d)
In addition to other applicable limitations set forth in the plan, and notwithstanding any other provision of the plan to the contrary, for the plan years beginning on or after January 1, 1996, the annual compensation of each employee taken into account under the plan shall not exceed the annual compensation limit of Section 401(a)(17) of the Internal Revenue Code, as adjusted for increases in the cost-of-living.
(e)
Notwithstanding any other provisions of this plan, the retirement benefit of a member shall be reduced to the extent that it exceeds amounts specified in Section 415 of the Internal Revenue Code, as applicable.
(f)
The limitation year is the calendar year.
(g)
A member's normal retirement benefit is non-fortfeitable upon attainment of normal retirement age, as provide in Section 411(a) of the Internal Revenue Code.
(h)
Rollover of distributions. This section applies to distributions made on or after January 1, 1993. Notwithstanding any provision herein to the contrary that would otherwise limit a distributee's election under this section, a distributee may elect to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover, as provided in Section 401(a)(31) of the Internal Revenue Code. Effective as of January 1, 2008, a non-spouse Beneficiary may make a direct rollover only to an "inherited" individual retirement account as described in Section 408(b) of the Internal Revenue Code. If a non-spouse Beneficiary receives a distribution from the plan, the distribution is not eligible for a 60-day (non-direct) rollover.
(Ord. No. 2014-05, § 1, 1-28-2014; Ord. No. 2015-22, § 3, 5-26-2015)
DIVISION 7. - DEFERRED RETIREMENT OPTION PROGRAM (DROP)
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Sec. 70-260. - Eligibility.
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A member of the city's retirement system, except as provided in section 70-261, who is employed by the city may enter into the deferred retirement option program (DROP), on the first day of any month following completion of 25 years of membership service credit, provided that the sum of the member's age and years of service is 70 points or more; or for police officer members hired on or after March 2, 2014 and firefighter members hired on or after November 15, 2013, the sum of the member's age and years of service is 76 points or more. The member must have actually worked for at least 25 years of civil service and the member shall not be allowed to buy time in order to be eligible for the DROP. The maximum duration for participation in the DROP shall not exceed 36 months, and participation will end if the employee resigns, dies, or is terminated for good cause prior to completion of the 36 months. Participation in the DROP shall not violate section 70-237(2)b. of the Hialeah Code. Effective on the effective date of this ordinance, firefighter members must be in full duty status to elect to participate in the DROP, and DROP participation will end if such a member is placed on permanent light duty status. Effective on the effective date of this ordinance, police officer members must be in full duty status or temporary or permanent light duty status based on a job-related injury to elect to participate in the DROP, and DROP participation will end if such a member is placed on permanent light duty status for a nonjob-related injury. Notwithstanding any provision of this section, effective October 1, 2018 police officer members shall be eligible to participate in the DROP as provided in section 70-238, for up to five years; and police officer members who are participating in the DROP on October 1, 2018 shall have the option of extending their DROP participation period by up to two years, for a total maximum DROP participation period of five years. Notwithstanding any provision of this section, firefighter members who entered the DROP on or after February 28, 2016 and prior to November 19, 2019 shall have the option of extending their DROP participation period by up to two years, for a total maximum DROP participation period of five years, as provided in section 70-238(u). The maximum DROP participation period shall be 60 months for firefighter members who enter the DROP on or after February 28, 2016.
(Ord. No. 2007-25, § 1, 2-27-2007; Ord. No. 2008-10, § 1, 2-12-2008; Ord. No. 2012-26, § 1, 5-22-2012; Ord. No. 2014-29, § 4, 5-27-2014; Ord. No. 2018-097, § 1, 9-25-2018; Ord. No. 2019-090, § 1, 10-22-2019; Ord. No. 2020-016, § 1, 5-29-2020)
Editor's note— The provisions of Ord. No. 2012-26, adopted May 22, 2012, shall become effective retroactively to April 2, 2012.
Sec. 70-261. - Closure for general employees.
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General employees who are members of the retirement system are prohibited from entering the DROP on or after April 2, 2012. Accordingly, the DROP is closed to general employees as of April 2, 2012. General employees who are participating in the DROP as of April 1, 2012 may continue participation in the DROP for the maximum duration, if such general employees so elect.
(Ord. No. 2012-26, § 1, 5-22-2012)
Editor's note— The provisions of Ord. No. 2012-26, adopted May 22, 2012, shall become effective retroactively to April 2, 2012.
Sec. 70-262. - Written election.
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A member electing to participate in the DROP must complete and execute the proper forms supplied by the board of trustees. Election in the DROP is irrevocable once DROP payments begin. As a condition of participating in the DROP, the eligible member must agree to terminate city employment at the conclusion of the DROP period, and must submit a letter of resignation to the city, which letter shall be coupled with an interest and shall be irrevocable, prior to entering the DROP.
(Ord. No. 2007-25, § 1, 2-27-2007)
Sec. 70-263. - Payments to DROP account.
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A member's monthly retirement benefits, consistent with the member's election at time of retirement concerning the amount and form of benefit, any future periodic cost-of-living increases, which would have been payable had the member elected to cease employment and receive a normal retirement benefit, shall be paid into the member's DROP account.
(Ord. No. 2007-25, § 1, 2-27-2007; Ord. No. 2007-59, § 1, 6-26-2007)
Sec. 70-264. - Limitation on future contributions.
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A member may participate in the DROP only once, and after commencement in the DROP, such member shall never have the right to be a contributing member of the retirement system again. After commencement of participation, the employee shall be ineligible for disability benefits under sections 70-67 and 70-248. If the member dies while participating in the DROP, a lump sum payment equal to the member's account balance shall be paid to the member's named beneficiary or, if none, to the member's estate. Any survivor benefits selected by the member shall also be payable.
(Ord. No. 2007-25, § 1, 2-27-2007)
Sec. 70-265. - Cessation of contributions by member and city.
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Upon the effective date of a member's commencement of participation in the DROP, the member's contributions to the annuity savings fund shall cease and the contributions assumed or paid by the city to the pension reserve fund shall cease.
(Ord. No. 2007-25, § 1, 2-27-2007)
Sec. 70-266. - Benefit calculation.
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For purposes of calculating a member's service pension, the average final compensation and credited service of a member participating in the DROP shall remain as existed on the effective date of commencement of participation in the DROP.
(Ord. No. 2007-25, § 1, 2-27-2007)
Sec. 70-267. - DROP account earnings.
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A participant's DROP account shall earn regular interest equal to the interest on contributions credited to the annuity savings fund each year according to section 70-172. Such interest shall be credited to each participant's DROP account annually at the end of the fiscal year.
(Ord. No. 2007-25, § 1, 2-27-2007)
Sec. 70-268. - Payout.
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On or before January 31 of the year following the member's termination of employment or death, the member's entire DROP account shall be distributed to the member (or in the event of the death, to the member's designated beneficiary or estate) in a cash lump sum, unless the member elects to have all or any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the member. Regardless of the option selected by the member, the board of trustees reserves the right to accelerate or defer payments to comply with the Internal Revenue Code and the board of trustees shall take no action that would jeopardize the tax qualifications of the plan.
(Ord. No. 2007-25, § 1, 2-27-2007; Ord. No. 2007-59, § 1, 6-26-2007)
Sec. 70-269. - Administrative rules.
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The board of trustees shall make such other rules as necessary to administer the DROP.
(Ord. No. 2007-25, § 1, 2-27-2007)
Sec. 70-270. - Reserved.
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DIVISION 8. - OTHER POST-EMPLOYMENT BENEFITS
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Sec. 70-271. - Optional continuance of group insurance.
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(a)
The city shall pay the full cost of the premium for individual coverage only, but only up to the cost of single coverage under the most basic health insurance plan offered by the city, for retired employees hired prior to October 11, 2006 who meet the following criteria: The employee must (i) have retired in accordance with the retirement plan, or retired with a total and permanent disability retirement; and (ii) have been covered by the city's group insurance at the time of separation from employment, and must elect to continue such coverage at the time of separation from employment such that there is no gap in coverage. The retired employee shall be responsible for paying the full cost of any coverage, including dependent coverage, selected by the retired employee that exceeds the cost of the premium for individual coverage.
(b)
Employees hired on or after October 11, 2006, who participate in the employees general retirement system and retire on a normal retirement in accordance with the retirement plan or with total and permanent disability retirement, may elect to continue group health insurance coverage in any city sponsored plan offered, so long as the employee, is covered by the city's group health insurance at the time of separation from employment, and elects to continue such coverage following separation from employment such that there is no gap in coverage, and provided the employee pays the active employee rates for individual health insurance coverage in effect at each open enrollment period until the retiree reaches the age of 65. The city shall pay the full cost of the premium for such retiree's individual coverage when the retiree attains eligibility for and enrolls in Medicare Part A and Part B. The retired employee shall be responsible for paying the full cost of any coverage, including dependent coverage, selected by the retired employee that exceeds the cost of the premium for individual coverage.
(c)
Employees hired on or after April 1, 2012, who do not participate in the employees general retirement system, and who retire after completing at least 20 years of service, may elect to continue group health insurance coverage in any city sponsored plan offered, so long as the employee is covered by the city's group health insurance at the time of separation from employment, and elects to continue such coverage following separation from employment such that there is no gap in coverage, and provided the retired employee pays the full cost of any premium for coverage in effect at each open enrollment period for the retiree and the retiree's dependents.
(d)
Beginning November 15, 2013, any employee who participates in the employees general retirement system and (i) retires on a vested retirement (the employee has at least ten years of service but less than 20 years of service and 70 points) pursuant to code section 70-239 and is at least 55 years old on the date of separation from city employment, or (ii) who retires on a non-job related or not connected to an in-line-of-duty injury total and permanent disability retirement, may elect to continue group health insurance coverage in any city sponsored plan offered, so long as the employee is covered by the city's group health insurance at the time of separation from employment, and elects to continue such coverage following separation from employment such that there is no gap in coverage, and provided the retired employee pays the full cost of any premium for coverage of the retiree and the retiree's dependents.
(e)
Employees who participate in the employees general retirement system and separate from city employment before age 55 with at least ten years but less than 20 years of credited service, and receive a deferred vested retirement benefit pursuant to code section 70-239, are not eligible for continued group health insurance coverage through a city sponsored plan following separation from city employment.
(f)
Secondary-payer upon subsequent employment. This section shall take effect on November 17, 2017 for general employees, on August 14, 2018 for police officer employees and June 7, 2019 for firefighter employees, and shall be applicable to all such city employees who retire on or after the effective date. The city's health insurance plan provided to all employees eligible to join the city's group plan and receive coverage as provided herein, shall be secondary payer if, at any time after retirement, a retired city employee is employed by any organization, entity or business that offers insurance coverage or any other employer-funded medical expense reimbursement plan to the retired city employee, whether on a voluntary basis or as required by law, and regardless of whether the retired city employee elects the coverage offered by a subsequent employer. If a retired city employee is offered health insurance coverage or any other employer-funded medical expense reimbursement plan by a subsequent employer and declines such coverage, the retired city employee's eligibility to receive coverage in the city's group plan as provided herein shall terminate. If the retired city employee misrepresents employment or the availability of employer-based coverage or any other employer-funder medical expense reimbursement plan, the retired city employee shall forfeit the right to insurance coverage as provided in this section. In no event will the city provide dependent coverage to a retired city employee who is employed by another employer that offers such coverage.
(g)
An employee eligible to participate in group insurance pursuant to this section 70-276 may include his spouse and/or any other eligible dependents under the medical group insurance coverage to the same extent that the eligible retired employee would have been able to include them if they were still an employee of the city, merely, by the payment of the full premium for such spouse and/or other dependents.
(h)
If the employee eligible to participate in group coverage pursuant to this section 70-276 should predecease a spouse or should die leaving other surviving eligible dependents and the spouse and/or other surviving eligible dependents were covered by the city's group health insurance at the time of the retiree's death, the spouse and/or other eligible dependents may elect to continue coverage for as long as they would have been eligible had the retiree survived, merely by payment of the full premium for such spouse and/or other eligible dependents to the city. This section does not apply to employees who have applied for a deferred pension as provided for in section 70-239.
(i)
An employee who receives an in-the-line-of-duty disability retirement shall be entitled to a continuation of dependent coverage at the same premium as that of an active employee, except as provided in this section 70-276. If a member elects Option 1 pursuant to section 70-249(a), then the employee shall pay the full premium for health insurance for dependent coverage if the member elects such coverage. If the employee elects Option 2 pursuant to section 70-249(a), the employee shall pay the active rate for dependent coverage if the employee desires such coverage. If the employee is eligible and receives enhanced disability retirement benefits described in section 70-249(a), the employee shall pay the active rate for dependent coverage if the employee desires such coverage.
(Ord. No. 2019-083, § 2, 9-24-2019)
Editor's note— Ord. No. 2019-083, § 2, adopted September 24, 2019, amended the Code by adding provisions designated as § 70-276. Inasmuch as there were already provisions so designated, the provisions have been redesignated as § 70-271 at the discretion of the editor.
Secs. 70-272—70-275. - Reserved.
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Secs. 70-71—70-95. - Reserved.
ARTICLE V. - POLICE OFFICER PENSION FUND