Source: http://lakewales.elaws.us/code/ptii_ch16_artii_div2_sec16-46
Timestamp: 2020-01-26 19:28:06
Document Index: 800109428

Matched Legal Cases: ['§ 16', '§ 16', '§ 2', '§ 2', '§ 2', '§ 2', '§ 1', '§ 2', '§ 2', '§ 1']

§ 16-46. Benefit amounts and eligibility., Division 2. Ordinance 99-02 General Employees' Pension Plan, Article II. City Of Lake Wales General Employees' Pension Plan And Trust, Chapter 16. Pensions And Retirement, Code of Ordinances, Lake Wales
§ 16-46. Benefit amounts and eligibility.
(a) Normal retirement date. A member's normal retirement date shall be the first day of the month coincident with, or next following the date he or she attains the earlier of:
(1) Age sixty (60) years with ten (10) years of credited service; or
(2) The later of sixty (60) years or ten (10) years of credited service.
A member may retire on their normal retirement date or on the first day of any month thereafter. Normal retirement under the plan is retirement from employment with the city on or after the normal retirement date. Each member who retires on or after normal retirement age shall receive a normal retirement pension.
(b) Normal retirement benefit. A member retiring hereunder on or after their normal retirement date shall receive a monthly benefit consisting of a single life annuity which shall commence on the first day of the month next following their retirement and be continued thereafter during member's lifetime, ceasing upon death. The monthly retirement benefit shall equal one-twelfth (1/12) of two and one-half (2½) percent of average annual compensation, for each year of credited service. For members retiring before the effective date of this plan, the benefit defined by the plan as it was stated at that time shall be payable. Retirement income will be reduced for moneys received under the disability provisions of the plan so that the monthly benefit shall not exceed the greater of the disability or retirement pension. Effective October 1, 2012, annual defined benefits under this section may not exceed seventy-five thousand dollars ($75,000.00) per year.
(c) Delayed retirement. Retirement may be delayed by a member and shall not be mandatory solely by reason of age prior to the required beginning date specified in section 16-54, hereof. Subject to the provisions of section 16-54, the delayed retirement date shall be the first day of the month coincident with, or next following, actual retirement.
(d) Early retirement date. A member may retire on their early retirement date which shall be the first day of any month coincident with or next following the attainment of age fifty-five (55) and the completion of ten (10) years of credited service. Early retirement under the plan is retirement from employment with the city on or after the early retirement date and prior to the normal retirement date.
(e) Early retirement benefit. A member retiring hereunder on their early retirement date may receive either a deferred or an immediate monthly retirement benefit payable for life as follows:
(1) A deferred monthly retirement benefit which shall commence on what would have been the member's normal retirement date had the member remained an employee and shall be continued on the first day of each month thereafter. The amount of each such deferred monthly retirement benefit shall be a life-annuity determined in the same manner as for retirement at normal retirement date except that credited service and average annual compensation shall be determined as of his or the early retirement date; or
(2) An immediate monthly retirement benefit which shall commence on the member's early retirement date and shall be continued on the first day of each month thereafter. The benefit payable shall be as determined above, reduced by one fifteenth (1/15) for each of the first two and one-half (21/2;) years, one thirtieth (1/30) for each of the next two and one-half (2½) years by which the commencement of benefits precedes the member's normal retirement date.
(f) Immediate and deferred payment of early retirement benefit. The board of trustees shall commence payment of the immediate early retirement pension on the first day of the month designated by the member as the annuity starting date, so long as such date follows the member's termination of service with the city. If a member elects a deferred early retirement pension, or fails to designate an annuity starting date, the board shall commence payment following the member's attainment of normal retirement age.
(g) Termination benefit—Generally. A member whose employment terminates for any reason prior to becoming eligible for an early or normal retirement pension, shall receive either a deferred pension, calculated in the manner set forth in paragraph (h) of this section 16-46 herein; or a refund benefit in an amount equal to the total contributions made by the member to the plan, with simple interest computed thereon at the greater of five (5) percent per annum, or such other rate as may be designated from time to time by the board. A member shall only be entitled to a deferred pension if the member has at least ten (10) years of credited service. Notwithstanding any other provision of this section 16-46, a member, at any time prior to the commencement of his normal retirement pension, his early retirement pension or his deferred pension, may elect to receive a refund benefit in lieu thereof.
(h) Amount of deferred pension. The member's deferred pension shall be a single life annuity computed in the same manner as his early retirement pension if the member elects to begin receiving his monthly pension before normal retirement or it shall be a single life annuity computed in the same manner as his normal retirement pension if the member elects to begin receiving his pension at normal retirement, with such benefits to be determined as of the date on which his termination of employment occurs.
(i) Payment of deferred pension. A terminated member's deferred pension shall become payable in the same manner as a normal retirement pension, or if elected by the member in the manner provided in paragraph (h) hereof, in the same manner as an early retirement pension.
(j) Deferred retirement option plan (DROP).
(1) Operation. Any member of the system who has satisfied the requirement for normal or delayed retirement as set forth therein may elect to withdraw from the system while continuing to be an employee of the city for a period of up to five (5) years. During this period, the member would cease to make contributions to the fund and benefit accruals would cease at the date of withdrawal. At the time of the withdrawal, the member may elect an optional form of retirement income as described in section 16-48. The amount of the monthly pension which would otherwise be paid shall be maintained in a special DROP account in the name of the member within the fund and shall be segregated from other trust assets on a bookkeeping basis. The member shall elect to receive either interest or earnings on their account to be determined as provided below. The election may be revised bi-annually on a prospective basis pursuant to such rules as the board of trustees may adopt. DROP investment elections must be made in writing at least thirty (30) days prior to the end of the December and June quarters, on such forms as the board of trustees may require.
a. Interest election. The DROP account shall be credited interest based on the 91 T-Bill interest rate compounded quarterly; or
b. Earnings election. Quarterly the DROP account shall share in the investment gains and losses for the quarter at the same rate of the return earned by the total trust fund.
(2) Termination of employment. Upon termination of employment not later than five (5) years following entry into the DROP program, the member shall commence receiving the monthly benefit in the same form and amount as selected at the time of entry into the DROP program. In addition, the member shall receive the value of this DROP Account as a single lump sum.
(3) Continued employment. In the event that the member continues employment with the city following completion of the five (5) year participation in the DROP plan, the member shall forfeit their entitlement to the accumulated assets in the DROP Account and shall deposit to the fund an amount equal to the member contribution which would have been made had the member continued as an active participant in the plan during the period of continued employment and shall contribute to the system at the rate specified herein. Upon termination of employment, the retiring member shall receive benefit credit for years and completed months during which he or she participated in the DROP program and for which member contributions were subsequently made, as well as credited service before and after participation in the DROP plan.
(k) Disability benefits:
I. Non-duty disability retirement:
(1) Each member with ten (10) years of credited service who becomes permanently and totally incapacitated for further performance of duty with the city from a cause other than the performance of duty shall be eligible for a non-duty disability retirement.
(2) A member shall be deemed disabled for the purposes of this section if permanently and totally unable to engage in any useful and efficient service within the city workforce due to a physical or mental impairment.
(3) No member may receive a non-duty disability retirement on the basis of a pre-existing medical condition, unless the disability would have occurred regardless of that pre-existing condition. The board, as part of the disability review process, shall determine whether a vacant position exists within the city's workforce, consistent with the member's training, skill and medical limitations. If the member is capable of performing any such vacant position and the member refuses the assignment, that refusal shall be grounds for denial of a non-duty disability retirement. Nothing in this section shall require the city to create a job where none presently exists or to accept an employee who lacks the training or skills necessary to perform any such vacant position.
(4) The procedure for determining disability shall be as set forth in this plan for the determination of service-incurred disability.
(5) The board of trustees shall have the continuing right to require disabled members to submit to a medical examination when the board has reason to believe that the disabled member is committing a fraud on the fund.
(6) Non-duty disability benefits shall be calculated in the same manner as an early retirement benefit (reduced by one-fifteenth (1/15) for each of the first two and one-half (2½) years, one-thirtieth (1/30) for each of the next two and one-half (2½) years by which the commencement of benefits precedes the member's normal retirement date). Non-duty disability benefits shall continue for the life of the member, except as set forth in this section.
(7) Upon finding that a member is no longer disabled as defined in this Plan, non-duty disability benefits shall cease. In such event, the member shall become eligible for a regular service retirement, if the member otherwise satisfies the requirements for service retirement.
(8) For the purposes of this section, compensation shall be deemed to be the greater of the member's average compensation based upon the member's pay status at the time the disabling event occurred or average annual compensation. The monthly benefit to which a member is entitled shall be payable on the first day of the first month after the board of trustees determines such entitlement. In lieu of the monthly disability pension, the member may elect to receive a return of the member's contributions, with simple interest thereon computed at the rate of five (5) percent per annum or such other rate, which may be in effect at such time, in which event the member shall not be entitled to any other benefit under the plan. A member receiving monthly disability benefits shall not be entitled to any other benefits under the plan. In the event a member who is receiving monthly disability benefits recovers, the last payment will be the payment due next preceding the date of such recovery. Disability payments shall cease upon the member's death.
II. Service-incurred disability retirement:
(1) A member shall be disabled under the terms of this section if the member has suffered an injury or illness arising out of performance of service for the city and which renders the member permanently and totally disabled for useful and efficient service with the city.
(2) A member shall be deemed permanently and totally disabled when he or she is totally unable to engage in any useful and efficient service within the city due to a physical or mental impairment which is the natural and proximate result of an accident, injury or illness which occurred while in the actual performance of duty.
(3) A member shall be eligible for a service-incurred disability retirement from the date of entry into the plan. Application for disability retirement shall be made on a form prescribed by the board of trustees. The member shall execute such medical releases as are necessary to permit the board to review the medical records needed to determine the question of disability and to discuss said records at a public meeting. Upon receipt of an application for a disability, the board shall refer the application to its physician for review. The applicant for a disability shall be required to submit to such medical examinations as the board appointed physician shall deem necessary. The board appointed physician, and any referring specialists, shall report their findings to the board. The report shall include a determination, to the extent reasonably possible, of the origin of the disability, whether the disability is permanent and whether the disability is total. In making those determinations, the physician(s) shall be bound by the definition of disability set forth in this plan.
(4) Upon receipt of the report of the board's physician(s), the board of trustees shall schedule a public hearing at which time the board shall review all medical reports, together with such documentary evidence as the applicant may wish to submit. The board shall conduct a preliminary determination as to whether the member is permanently and totally disabled based upon the written documentation presented. If the board does not grant the application based on the written documentation, it shall inform the applicant in writing of the reasons for the denial of the application. The member may, within thirty (30) days of receipt of the board's preliminary denial, request a full evidentiary hearing before the board. Said hearing will be conducted consistent with the principles of due process and the rules of evidence generally applicable to administrative proceedings shall apply. The board shall have the power to issue subpoenas compelling the attendance of witnesses. At said hearing, the applicant may present such oral and written evidence as the applicant deems necessary to establish its burden of proof. The board may appoint special counsel as an advocate to cross-examine witnesses and to offer argument in opposition to the application. The attorney for the board shall not serve both as advocate and as advisor to the board in the same proceeding. The applicant and the board shall have the right to examine and cross-examine all witnesses. The decision of the board shall be based solely upon the evidence presented and the law applicable to this plan. Following the conclusion of the hearing, the board shall render an opinion in writing setting forth the reasons for the grant or denial of the benefit.
(5) The board may prescribe rules of procedure to implement the provisions of this plan relating to the conduct of disability hearings.
(6) A member who is granted a service-incurred disability retirement shall receive a benefit equal to the greater of: (i) forty-two (42) percent of average final compensation; or (ii) the member's accrued benefit, subject to reduction for early retirement (reduced by one-fifteenth (1/15) for each of the first two and one-half (2½) years, one-thirtieth (1/30) for each of the next two and one-half (2½) years by which the commencement of benefits precedes the member's normal retirement date). Service-incurred disability benefits shall continue for the life of the member, except as set forth in this section. The benefit shall be paid yearly, in monthly installments, for the life of the member.
(7) The board of trustees shall have the continuing right to require disabled members to submit to a medical examination when the board has reason to believe that the disabled member is no longer entitled to receive benefits from the fund. If the examination reveals the member is no longer entitled to receive disability benefits, the benefits shall cease and, if vested, the member will be eligible for a regular service retirement as if hehad retired on the date his disability retirement benefits commenced. The board has discretion to exercise this power as the circumstances warrant.
(8) For the purposes of this paragraph section, compensation shall be deemed to be the greater of the member's average compensation based upon the member's pay status at the time the disabling event occurred or average annual compensation. The monthly benefit to which a member is entitled shall be payable on the first day of the first month after the board of trustees determines such entitlement. In lieu of the monthly disability pension, the member may elect to receive a return of the member's contributions, with simple interest thereon computed at the rate of five (5) percent per annum or such other rate, which may be in effect at such time, in which event the member shall not be entitled to any other benefit under the plan. A member receiving monthly disability benefits shall not be entitled to any other benefits under the plan. In the event a member who is receiving monthly disability benefits recovers, the last payment will be the payment due next preceding the date of such recovery.
(l) Effective date of change in benefits. Members separating from service before October 1, 1999, shall only be entitled to the benefits provided by the plan prior to October 1, 1999.
(m) Member accrued benefit not exceeding one thousand dollars ($1,000.00). Notwithstanding anything contained in this plan to the contrary, effective March 28, 2005 a member whose employment terminates for any reason other than death, with an accrued benefit of less than one thousand dollars ($1,000.00), will receive a lump sum payment equal to the present value of member's accrued benefit, calculated based upon the form of benefit for which the member qualifies (i.e., a deferred benefit versus a refund benefit) which is most favorable to the member, without any requirement of member consent. Such payment shall be in lieu of all other benefits under the plan.
(Ord. No. 99-02, § 2, 5-4-99; Ord. No. 2002-09, § 2, 5-21-02; Ord. No. 2002-12, § 2, 7-2-02; Ord. No. 2003-39, § 2, 12-2-03; Ord. No. 2007-38, § 1, 9-18-07; Ord. No. 2008-06, § 2, 2-5-08; Ord. No. 2013-14, § 2, 9-17-13; Ord. No. 2015-14, § 1, 11-17-15)