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07-09-2004 A ~he City of 1""1. ventura Q POUCE OFFICERS' RETIREMENT PLAN BOARD OF TRUSTEES MEETING July 9, 2004 3 PM Aventura Government Center 19200 West Country Club Drive Aventura, FL 33180 19200WestCouotrvCluhDrive Aventurn.FL AGENDA 1. Call to Order/Roll Call 2. Approval of Minutes: June 4, 2004 3. Summary Plan Description 4. Operating Rules and Procedures 5. Proposals for Service for Actuary, Investment Consultant, Third Party Administrator 6. Adjournment This meeting is open to the pubiic. In accordance with the Americans with Disabiiities Act of 1990, all persons who are disabled and who need special accommodations to participate in this meeting because of that disabiiity should contact the Office of the City Cierk, 305-466-8901, not later than two days prior to such proceeding. One or more members of the City of Aventura Commission andlor Advisory Boards may be in attendance. CONTENTS TAB Ordinance No. 2004-07 ................................. A Ordinance No. 2004-13 ................................. B Chapter 185, Florida Statutes """""""""""""" C Chapter 112, Florida Statutes (select provisions) ....... ... .. D SummaryPlanDescription """""""""""""""" Investment Policy """""""""""""""""""" Operating Rules and Procedures ........................... IIIplO3003311ndex to Trustee Notebook SECTION -" DEFINITIONS. The following words and phrases as used in this Ordinance shall have the following meanings: A. Accumulated Contributions shall mean the sum of all amounts deducted from a member's compensation or picked up on behalf of a member. B. Active Membership shall mean membership in the Retirement Plan as an employee. c. Actuarial Equivalent shall mean that any benefit payable under the terms of this system other than the normal form of benefit shall have the same actuarial present value on the date the payment commences as the normal form of benefit. For purposes of establishing the actuarial present value of any form of benefit, other than a lump sum distribution, all future payments shall be discounted for interest and mortality using the 1983 group annuity mortality table for males, with ages set back one year for females. In the case of a lump sum distribution, the actuarial present value shall be determined on the basis of the same mortality rates as set forth in this Section. D. And shall have a conjunctive meaning. E. Beneficiarv shall mean any person receiving a retirement allowance or other benefit from the Retirement Plan. F. Benefit G. Board or Board of Trustees H. çæ¿ I. Credited Service shall mean a retirement allowance or other payment provided by the Retirement Plan. shall mean the Board of Trustees of the Retirement Plan. shall mean the City of Aventura, Florida. shall mean membership credit upon which a member's eligibility to receive benefits under the Retirement Plan is based or upon which the amount of such benefits is to be determined. J. Disabilitv shall mean the permanent and total incapacity to perform regular and continuous duties as a police officer for the City of Aventura. The term regular and continuous as used in this definition shall not require that a police officer be able to perform all of the duties set forth in the job description, but shall mean the ability to perform work within the classification of police officer for which a position has been made available by the City, consistent with the physical or mental health of the member, K. Earlv Service Retirement shall mean a member's withdrawal from service under circumstances permitting the payment of a retirement benefit before such member is eligible for normal service retirement. L. Earnable Compensation shall mean a member's base pay for regular hours worlked as an employee, overtime pay, amounts paid for administrative leave, bereavement leave, compensatory time paid in lieu of regular wages, court time, Garcia days for K-9 service, holiday leave taken in lieu of regular pay, job basis leave, jury duty, light duty, paid military leave, personal leave taken in lieu of regular pay, storm leave, stonmIhurricane pay, suspension with pay, pay for time off due on the job injury, vacation leave taken in lieu of regular pay, and workers' compensation paid by the City; and, excluding pay received for off-duty details for third parties, whether or not the payment is made through the City. Earnable compensation shall not include payouts of accumulated leave taken as cash upon separation from service. Retroactive payments shall be credited to the calendar year in which such payments would have been received had they been timely paid. Compensation for any plan year shall not include any amounts in excess of the Internal Revenue Code Section 401 (a)(17) limitation as adjusted for change in the cost of living in the manner prescribed by the IRC, Section 401 (a)(17)(B). M. Emclovee shall mean a police officer presently employed by the City. A police officer who is reclassified, due to disability, as a City employee outside of the police service shall have membership rights in the Retirement Plan applicable to that new class of employees. N. Final Monthlv Compensation shall mean a member's average monthly rate of eamable compensation from the City during the five (5) best years out of the last ten (10) years of employment ; provided that if a member has been employed for fewer than five (5) years, such average shall be taken over the period of actual employment. O. Police officer shall mean any person for whom contributions are made or picked up to the retirement plan as required by this ordinance and who is certified as a police officer as a condition of employment in accordance with the provisions of Section 943.1395, Fla. Stat., and who is vested with the authority to bear arms and make arrests, and whose primary responsibility is the prevention and detection of crime or the enforcement of the penal, criminal, traffic, or highway laws of the state, including supervisory and managerial personnel. P. Fund Q, ~ R. Member shall mean the City of Aventura Police Officers' Retirement Plan. shall mean a permissive term. shall mean a police officer actively employed by the City for whom contributions to the Retirement Plan are made as required by this Ordinance. Members shall also include retired police officers. The chief of police and any such other managerial ranks, as may be permitted by law. shall have the option to participate in this plan or another city sponsored retirement plan, S. Option shall mean one of several choices available to members with respect to the manner in which a retirement allowance may be paid. T. Pension shall mean a series of periodic payments, usually for life, payable in monthly installments. u. Pick-Uo Amounts shall mean employer contributions derived from a member's earnable compensation through a reduction in the member's earnable compensation. v. Plan Year shall mean the period from October 1 through September 30 of the following year. w. Retirement shall mean a member's withdrawal from active membership with a benefit granted to the member pursuant to the provisions of this Ordinance. X. Retirement Allowance Y. Retirement Plan Z. Service AA. Service Retirement shall mean a pension provided by the Retirement Plan. shall mean the City of Aventura Police Officers' Retirement Plan. shall mean active service as an employee. shall mean a member's retirement from active service under circumstances permitting payment of a retirement allowance without reduction because of age or length of service and without special qualifications such as disability. Service retirement shall be considered normal retirement. BB. Trustee shall mean a member of the Board of Trustees of the Retirement Plan. CC. Vested Benefit shall mean an immediate or deferred benefit to which a member has gained a non- forfeitable right under the provisions of this Ordinance. DO. Minimum Vesting shall mean ten (10) years of credited service before the member is entitled to retirement benefits except for service- incurred disability retirement income or service incurred death benefits. SECTION -" ADMINISTRATION OF THE RETIREMENT PLAN. A. The sole and exclusive administration of, and the responsibility for the proper, effective operation of the Retirement Plan and for implementing the provisions of this Ordinance is vested in a Board of Trustees. B. The Board of Trustees shall consist of five (5) persons; two (2) of whom shall be legal residents of the City of Aventura and who shall be appointed by the City Commission from a list provided by the City Manager. Two (2) members of the Board of Trustees shall be police officers elected by a majority of the police officers who are active members of the plan. A fifth member of the Board shall be chosen by a majority of the other four (4) Trustees, and such person's name shall be submitted to the City Commission for appointment. The City Commission shall appoint the fifth member selected by the other four (4) Trustees as a ministerial duty. C. All Trustees shall serve a term of two (2) years. If a vacancy shall occur prior to the expiration of a member's term, a replacement member shall be chosen in the same manner as the person who has left office. A replacement Trustee shall serve a full term measured from the date of replacement. All Trustees shall serve until their replacements are selected. D. The Board of Trustees shall prescribe a uniform election procedure for the selection of the active member Trustees. E. All Trustees shall serve without compensation, but they shall be reimbursed from the Fund for all necessary expenses authorized by the Board, including, but not limited to reimbursement for leave time used for educational conferences approved by the Board. The Board shall be permitted to prescribe uniform rules for reimbursement for travel expenditures, consistent with City travel policy. F. The Board of Trustees shall annually select a chairman and a secretary who shall execute all documents on behalf of the Board. G. A majority of the members of the Board shall constitute a quorum for the transaction of business and shall have full power to act under the terms of the Plan. Three (3) concurring votes shall be required of the Board to take action. H. The Board shall keep minutes of all meetings and a record of any action taken by the Board shall be kept in written fonm and maintained by the Board. I. The Board of Trustees shall have the authority to make such uniform rules and regulations and to take such action as may be necessary to carry out the provisions of the Plan and all decisions of the Board of Trustees, made in good faith, shall be final, binding and conclusive on all parties. J. The Board of Trustees shall be deemed the named fiduciary of the Plan and shall discharge its responsibilities solely in the interest of the members and beneficiaries of the Plan for the exclusive purpose of providing benefits to the members and their beneficiaries and to defray the reasonable expenses of the Plan. The Trustees shall exercise those fiduciary responsibilities with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a similar character and with similar aims. K. The Board of Trustees shall have the following administrative duties: 1. To maintain such records as are necessary for calculating and distributing retirement benefits; 2, 3. 4. 5. To maintain such records as are necessary for financial accounting and reporting of Retirement Plan funds; To maintain such records as are necessary for actuarial evaluation of the Retirement Plan, including investigations into the mortality, service and compensation experience of its members and beneficiaries; To compile such other administrative or investment information as is necessary for the management of the Retirement Plan; To process, certify and/or respond to all correspondence, bills and statements received by the Retirement Plan, as well as all applications submitted to the Board for retirement benefits; 6. To establish and maintain communication with City departments and other agencies of government as is necessary for the management of the Retirement Plan, including preparing, filing and distributing such reports and information as are required by law to be prepared, filed or distributed on behalf of the Retirement Plan; 7. To determine all questions relating to and process all applications for eligibility, participation and benefits; 8. To distribute at regular intervals to employees, a comprehensive Summary Plan Description and periodic reports regarding the financial and actuarial status of the Plan; 9. To retain and compensate such professional and technical experience as is necessary to fulfill its fiduciary responsibilities; 10. To make recommendations to the City Manager regarding changes in the provisions of the Plan; 11. To assure the prompt deposit of all member contributions, City contributions, Chapter 185 monies, and investment eamings; 12. To establish a uniform set of rules and regulations for the management of the Trust; 13. To take such other action as the Trustees shall deem, in their sole and exclusive discretion, as being necessary for the efficient management of the Plan. L. The Board shall have the authority to retain its own legal counsel, accountants, actuaries and other professional advisors to assist the Board in the performance of its duties. The Board may act without independent investigation upon the professional advice of the advisors so retained. M. The Board is authorized to prosecute or defend actions, claims or proceedings of any nature or kind for the protection of the Fund assets or for the protection of the Board in the performance of its duties. N. Neither the Board nor any of its individual members shall have any personal liability for any action taken in good faith. The Trustees individually and the Board as a whole shall be entitled to the protections in Section 768.28, Fla. Stat. The Trustees shall also be authorized to purchase from the assets of the Fund, errors and omission insurance to protect the Trustees in the performance of their duties, as well as a fidelity bond with minimum coverage of $500,000. Such insurance shall not provide protection against a Trustee's fraud, intentional misrepresentation, willful misconduct or gross negligence. o. No Trustee shall be responsible at his or her own expense, to take legal action to correct the misconduct of any other member of the Board of Trustees. A Trustee shall have an affirmative obligation, however, to publicly reveal any misfeasance, malfeasance or nonfeasance by a co- Trustee, and upon making such revelation in a public meeting, shall be relieved further individual responsibility of the actions of that co-Trustee. SECTION -' CONTRIBUTIONS. A. The City shall pick-up, rather than deduct from each member's pay, beginning with the date of employment, six and three tenths (6.3%)percent of the member's earnable compensation. The monies so picked-up shall be deposited in the Fund immediately after each pay period. An account record shall be maintained continuously for each member, Pick-up contributions shall continue until death, disability or termination of service, whichever shall occur first. Contributions shall remain in the Fund unless withdrawn as provided in the Plan. No member shall have the option to choose to receive the contributed amounts directly instead of having them paid by the City directly to the Plan. All such pick-up contributions by the City shall be deemed and be considered as part of the member's accumulated contributions and subject to all provisions of the Plan pertaining to accumulated contributions of members, The intent of this provision is to comply with Section 414(h)(2) of the Internal Revenue Code. For the purpose of accruing and calculating pension benefits, and for all other purposes of calculating wage related benefits and calculations, the B. amounts picked up under this section shall be considered part of the eamable compensation of a member. All benefits payable under this Plan are in lieu of a refund of accumulated contributions. In any event, however, each member shall be guaranteed the payment of benefits at least equal in total amount to the member's accumulated contributions. c. Any monies received or receivable by reason of the laws of the State of Florida for the express purpose of funding or paying for retirement benefits for police officers shall be deposited into the Fund within five (5) business days of receipt by the City. State monies shall be used as prescribed by law. E. The City shall make such contribution under the Florida Protection of Public Employee Retirement Benefits Act and Chapter 185, Florida Statutes, which together with contributions picked-up on behalf of members, Plan eamings and state insurance premium tax rebates, will maintain the Fund on a sound actuarial basis, as determined by the Board in conjunction with its actuary. The City's contributions shall be deposited at least quarterly. Expenses, charges and fees attributable to the management of the Plan shall be paid from the Fund. D. F. The City shall have no right, title or interest in the Fund or in any part thereof, and no contribution made thereto shall revert to the City, except such part of the Fund, if any, which remains therein after the satisfaction of all liabilities to persons entitled to benefits under the Plan, SECTION -' FUND MANAGEMENT AND INVESTMENTS, A. The Plan is hereby established, pursuant to authority granted in the City Charter, as an irrevocable trust fund into which shall be deposited all of the assets of the Plan of every kind and description. B. The actual custody and supervision of the Fund shall be vested in the Board. All assets of the Plan may be commingled, provided that accurate records are maintained at all times reflecting the financial composition of the Fund, including accurate accounts regarding the following: 1. Current amounts of accumulated contributions of members, both on an individual and aggregate basis; 2. 3. 4, C. Receipts and disbursements; Benefits payments; 5. All contributions from the City; All contributions from the State of Florida pursuant to Chapter 185; 6. All interest, dividends, gains and losses from investment; 7. Such other entries as may be required for a clear, complete financial report of the status of the Fund. The Board shall establish a written investment policy, with the advice and counsel of such advisors as the Board deems necessary, and said investment policy shall set forth the types of securities and other types of investments into which shall be placed the assets of the Fund. The policy shall further set forth appropriate limitations on those investments, including, but not limited to, anticipated rate of return, quality of investment, class of investment and acceptable risk, The Board shall have the authority to invest and reinvest the assets of the Plan in such securities or property, real or personal, as the Board deems appropriate, including, but not limited to: 1. Bonds, notes, or other obligations of the United States or any of its agencies, or those guaranteed by the United States or for which the credit of the United States is pledged for the payment of the principal and interest or dividends thereof; 2. Accounts or certificates of deposit in any bank or other financial institution incorporated under the laws of the State of Florida, or any national bank organized under the laws of the United States, or authorized to do business and situated in the State of Florida, to the extent that such certificates of deposit are secured by the deposits of securities of the United States government; 3. Notes secured by first mortgages on real property insured or guaranteed by the Federal Housing Administration or the Veterans Administration; 4. Interest-bearing obligations with a fixed maturity of any corporation organized under the laws of the United States, any state or organized territory of the United States and the District of Columbia; D. E. F. provided that such obligations are rated by at least two (2) nationally recognized ratings services in anyone of the four highest classifications approved by the Comptroller of the Currency for the investment of funds of national banks or, if only one nationally recognized ratings service shall rate such obligations, such ratings service must have rated such obligation in anyone of the four highest rating classifications as set forth in this subsection; 5. 6. Bonds issued by the State of Israel; Real estate, which may be in the form of commingled ownership and financial institutional futures, listed options, stock index futures, which may be used under specific instruction of mangers; 7. Common stock, preferred stock and interest- bearing obligations of domestic corporations having an option to convert into common stock issued by a corporation organized under the laws of the United States, any state or organized territory of the United States or any state or organized territory of the United States and the District of Columbia. 8. Index funds and collective investment funds. 9. Foreign securities, not to exceed ten (10%) percent of the portfolio at cost. 10. Any other investment permitted by law. The Board may determine the percentage of each type of investment to be held. The Board shall be authorized to retain one of more money managers for the management of property held in the Plan, and the Board shall convey property of the Plan to such money managers for investment and reinvestment in accordance with the terms of this Ordinance and the investment policies established by the Board. Any such money manager contracting with the Board for the investment of its assets shall be deemed a fiduciary of the Plan. The Board shall have a continuing duty to observe and evaluate the performance of any money manager retained by the Board, The Board shall, in selecting a money manager or other investment counsel, exercise all judgment and care in the circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the management of their own affairs. G. The Board shall require that any money manager or other agent who has custody or control of any property of the Plan to keep accurate and detailed accounts of all investments, receipts, disbursements and other transactions pertaining to such Trust property, and the Board shall further require that all accounts, books and records pertaining thereto be open for inspecting and audit at all reasonable times by the City, the Board or the designees. H. The Board shall also keep accurate and detailed accounts of all investments, receipts, disbursements or other transactions pertaining to the Trust property and all accounts, books and records pertaining thereto shall be open to inspection and audit at all reasonable times by the City or its designees. SECTION_, SERVICE RETIREMENT BENEFIT. A. A member may retire on the first day of the month coincident with or next following the earlier of: the date upon which the member completes twenty-five (25) years of credited service, regardless of age; or the date upon which the member attains age fifty-five (55) with ten (10) years of credited service. There shall be no mandatory retirement age. B. A normal retirement benefit shall be detennined by multiplying three (3%) percent of final monthly compensation by the number of years of credited service to a maximum of eighty percent (80%) for the first forty (40) years of service. For all subsequent years of service, the normal retirement benefit shall be detennined by multiplying two (2%) percent of final monthly compensation by each year in excess of forty (40) years of service. C. A service retirement benefit shall be payable on the first day of each month. The benefit shall commence on the first day of the month coincident with or next following the member's actual retirement and shall continue until the death of the member. In the event that a member shall retire in the middle of the month, the retirement benefit shall commence on the first day of the following month, but the member shall receive credit for the partial month preceding the actual date that payment commenced, D. Early retirement shall be available to a member on the first day of the month coincident with or next following attainment of age forty-five (45) and a completion of ten (10) years of credited service. E. A member electing early retirement may receive either a deferred payment or an immediate payment under the following formula: 1. A deferred payment shall commence on the normal retirement date of the member. This shall mean the date upon which the member attains age fifty-five (55) with ten (10) years of credited service. A deferred payment shall be determined in the same manner as a normal retirement, except that final monthly compensation and credited service shall be based upon the early retirement date. 2. An immediate retirement benefit may commence on the first day of the month coincident with or next following the date of early retirement. The benefit shall be determined for normal retirement and then actuarially reduced for the number of actual years and months at which the starting date of the benefit precedes the normal retirement date. The normal retirement date shall be the date upon which the member would have attained age fifty-five (55) with ten (10) years of credited service. The actuarial reduction factor applied to the benefit shall be three (3%) percent for each year by which the starting date of the benefit precedes the normal retirement date. The payment of the early retirement income shall be subject to the same conditions as normal retirement income. F. G. In the event a member elects early retirement, the benefit formula in effect on the early retirement date shall be applicable to the member. H. A member entitled to a normal or early service retirement benefit shall have the right at any time prior to the date upon which the first payment is received to elect to have the benefit payable under one of the options provided in this Plan, A member shall be permitted to revoke any such election and to elect a new option at any time prior to the receipt of the first payment. Each retirement option shall be the actuarial equivalent of the other retirement options available. Election of the retirement option shall be on a form prescribed by the Board, 1. Life Annuity. A member may elect to receive an enhanced annuity payable for life. There shall be no guaranteed payment in excess of the accumulated contributions of the member, which contributions shall be paid to the member's estate or designated beneficiary should the member die prior to receiving payments equal to said contributions. 2. Joint and Last Survivor Option. 3. A member may elect to receive an actuarially reduced benefit for life and to have the benefit (or a designated fraction of the benefit) continued after the member's death and during the lifetime of a designated survivor. A designated survivor may be any natural person, but need not be the spouse of the member. In the event that the designated survivor dies, or in the case of a spouse, the marriage is dissolved, before the member's benefit payments begin, this option shall be canceled automatically and a retirement income shall be payable to the member as if the election had never been made. A member may, at that time, elect an unreduced life annuity or a ten (10) year certain and life thereafter benefit. Ten (10) Year Certain and Life Thereafter. A member may elect to receive an unreduced life annuity with one hundred twenty (120) guaranteed payments. If the member shall die prior to receiving one hundred twenty (120) payments, the remaining benefits shall be paid to the beneficiary designated by the member. In the event that no beneficiary has been designated, the member's estate shall be the recipient of the remaining balance of payments. This shall be the normal form of retirement. 4. Other Options. The Retirees may. by uniform rule, establish any other optional form of payment, which is the actuarial equivalent of any other form of retirement provided for in this Plan, or which optional form of payment is cost neutral to the Plan. An interest only option or an option providing guaranteed payments over a period in excess of twenty (20) years or beyond age eighty-five (85) may not be offered. The Board, in its sale discretion, may make a lump sum distribution which is the actuarial equivalent of the monthly benefit if the lump sum is not greater than $1,750. 5. Designated Beneficiary. Upon failure of a member to designate a beneficiary, any monies owed to the member shall be paid to the member's estate. Any member may designate a choice of one or more persons, named sequentially or jointly, as his or her beneficiary or beneficiaries. SECTION_" BUY.BACK FOR MILITARY SERVICE. A. Any member of the Plan who is employed by the City prior to entry into military service and who takes a leave of absence for the purpose of entering into military service in the Armed Forces of the United States and thereafter re-enters the employ of the City, and is vested, shall be entitled to purchase service credits for the period of absence by contributing the actuarial cost of the benefit which would have been eamed had the member continued in City employment for the period of military service based on the salary in effect on the date of the leave of absence, for each year being purchased; except to the extent that state or federal law shall require the provision of service credit without a member contribution. There shall be no credit for military service prior to City employment as a police officer. B. A member who is receiving, or will receive the pension benefit for military service in any other pension plan supported by public funds, excluding a military pension, may not use that service for this pension plan. A member who is receiving, or will receive any other pension in which time served in the military was used by the employee in that other pension plan shall not be eligible for military buy-back as provided in this section. C. The contribution for military buy-back required of the employee may be made in one lump sum or may be made by payroll deductions in installments for a period of time which shall not exceed the number of years being purchased. An employee making installment payments shall complete all required payments prior to payment of any benefit under this section. If installment payments are not completed at the time an employee retires, the employee shall not receive military credit for the remaining period for which payments were not made. An employee making installment payments shall pay interest at a uniform rate as determined by the Board. SECTION -" DISABILITY. A. A member shall be disabled under the terms of the Plan if the member has suffered an illness, injury or disease which renders the member permanently and totally incapacitated, physically or mentally, from regular and continuous duty as police officer. Disability shall not be determined based solely on the fact that a member cannot perform all of the duties of a police officer as set forth in the job description. The definition of disability shall be applied to an individual who because of illness, injury, or disease, cannot perform any job in the police department which is within the member's physical or mental capabilities and further provided that a vacancy exists which will be made available by the City. The City shall be required to accommodate disabled worlkers in accordance with state and federal law and shall not withhold assignment to vacant positions on the basis that a member is not capable of performing all of the tasks of a police officer, A disability benefit cannot be based on a condition which pre- existed membership in the Plan unless the cause of the disability would reasonably be expected to give rise to a disability in a person without the pre-existing condition. B. A member shall be eligible for a service-incurred disability retirement from the entry date into the Plan. A service-incurred disability retirement shall mean that the disability arose as a result of an act occurring, or presumed by law to have occurred, in the performance of service with the City. D. A member shall be eligible for a non-service incurred disability retirement upon the completion of ten (10) years of credited service. A non-service incurred disability shall be an illness, injury, or disease, which did not occur as a result of an act in the performance of service with the City. The service-incurred disability benefit shall be paid in equal monthly installments in an amount equal to the member's accrued benefit, but not less than forty-two (42%) percent of the member's final monthly compensation as of the date of disability retirement. This benefit shall be in addition to any short or long term disability benefit provided by the City; but, shall be subject to offset for workers' compensation paid by the City as permitted by law. C. E. The non-service incurred disability benefit shall be paid on a monthly basis in an amount equal to three (3%) percent of final monthly compensation multiplied by the number of years of credited service, but shall not be less than thirty (30%) percent of average monthly compensation, For the purposes of a non-service incurred disability benefit, final monthly compensation shall be determined as of the last day the member was actively at work for the City. F. Disability benefits shall be paid on the first day of each month. No benefit shall be paid until the Board of Trustees has actually considered and voted upon entitlement to disability. G. Disability retirement income shall continue until the death of the member, or recovery from disability and return to active police service. In the event of the death of a member who is retired on a disability benefit and has not received one hundred twenty (120) payments, the remaining unpaid benefits shall be paid to a designated beneficiary selected by the member and communicated to the Board on the form prescribed by the Board. In the event that there is no designated beneficiary, the remaining unpaid benefits shall be paid to the estate of the deceased member. H. The Board of Trustees shall have the continuing right to require disabled members to submit to a medical examination to determine that the member remains disabled. In order for a member to be deemed recovered, the medical board must recommend to the Board of Trustees that the member has sufficiently recovered to again engage in the duties of a police officer and that the City has certified that it has a position within the police department available for the member consistent with the member's medical condition. The decision by the Board to examine some but not all disability retirees shall not be deemed an abuse of the Board's discretion. J. Upon finding that a member is no longer disabled, the member shall return to work at the same rank and position previously occupied and shall be placed into the appropriate pay rate based on cost of living (COLA)and merit increases which the member would have received but for the disability, as determined by the City Manager. The member shall again become an active member of the Plan if reemployment is accepted. There shall be no creditable service for any period of time in which the member was receiving disability benefits from the Plan. If the member declines reemployment with the City, the member shall be deemed to have terminated employment on the date that the disability commenced. In such event, the member may receive a return of contributions unless, prior to that date, the member has received disability benefits equal to or greater than the amount of the accumulated contributions. If the member declines re-employment within the City, the member shall be deemed to have terminated employment on the date that the disability benefit commenced. No member shall be eligible to receive disability benefits from the retirement plan during any period of time that the member is receiving a salary from the City. This section shall not apply to the receipt of worker's compensation benefits. I. K. 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 of Trustees 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 disability, the Board shall appoint a medical committee to be composed of not less than one nor more than three licensed physicians. The applicant for disability shall be required to submit to examination by the medical committee. The medical committee shall report its findings to the Board of the Trustees which shall include a determination, to the extent reasonably possible, the origin of the disability, whether the disability is permanent, and whether the disability is total. In making that determination, the medical committee shall be bound by the definition of disability set forth in this Plan. L. Upon receipt of the report of the medical committee, the Trustees shall schedule a public hearing at which time the Board shall review all reports of the medical committee, together with any 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 member 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. In the event that the disability benefit is denied, the applicant shall have the right to judicial review by complaint for common law certiorari in the Circuit Court of Miami-Dade County. M. The Board of Trustees may prescribe rules of procedure to implement the provisions of this Plan relating to the conduct of disability hearings. The Board shall prescribe rules to preserve the medical privacy rights of applicants to the extent permitted by law. N. No member shall be granted a disability pension upon a determination by the Board that the disability resulted from: 1. 2. Excessive and habitual use of drugs, intoxicants or narcotics; Injury or disease sustained while wilfully and illegally participating in fights, riots, civil insurrections or while committing a crime; 3. Injury or disease arising from service in the armed forces; 4. Injury or disease sustained after employment as a police officer has ended; 5. Any occurrence arising from compensable employment unrelated to regular City employment. SECTION -' VESTING AND TERMINATION. A. Except as otherwise provided in this section, all rights to benefits under this Plan shall terminate when a member's employment terminates for any reason other than normal service retirement, early service retirement, or disability retirement. Any member who completes ten (10) years of credited service and whose contributions remain in the Plan has a vested right to accrued benefits from the Plan. No member who has completed less than ten (10) years of credited service shall have a vested interest in any accrued benefit. B. A member who shall leave the service of the City prior to eligibility for normal service retirement or early service retirement, but who has completed ten (10) years of creditable service shall be entitled to receive retirement benefits commencing at the regular normal service retirement date. Such benefits will be based on final monthly compensation and credited service as of the date of termination. c. Every member shall have the right to elect to receive, in lieu of all benefits under the Plan, a retum of the member's accumulated contributions, with simple interest at the rate of three percent (3%). E. A member who elects a lump sum return of contributions releases and discharges the City and the Retirement Plan from the right to any other benefits from the Plan. A member who terminates service prior to achieving a vested interest in the Plan shall have the right to receive a refund of accumulated employee contributions, with simple interest at the rate of three (3%) percent. If a member who has terminated service prior to retirement re-enters the police department, the member will be entitled to reinstate the credited service that the member had on the date of termination in lieu of the benefits to which the member became entitled at time of separation. If, at the time of separation, the member withdrew the member's accumulated contributions, credited service can only be restored by repaying to the pension plan an amount equal to the accumulated contributions plus interest at the assumed rate of investment retum from the date the contributions were withdrawn. D. SECTION -' DEATH BENEFITS. A. In the event of a member's death in the line of duty, the benefit, which shall be payable commencing on the first day of the month coincident with or next following the death of the member, shall be the greater of thirty (30%) percent of the member's compensation at the time of death or the member's accrued benefit. B. In the event of the death of a member from non-duty related causes prior to the time of eligibility for early or normal retirement, the member's designated beneficiary shall be paid from the Fund an amount equal to the member's accumulated contributions. In the event of the death of a member who has completed ten (10) or more years of credited service, the member's designated beneficiaries shall be entitled to the benefits othelWise payable at the early or normal retirement date. c. In the event of the death of a retiree, death benefits, if any, shall be paid in accordance with the optional form of benefit chosen at the time of retirement. SECTION -' COMPLIANCE WITH THE INTERNAL REVENUE CODE. A. It is the intention of the City and of the Board that the Plan remain at all times a qualified plan, as that term is defined under the Intemal Revenue Code. B. No member's annual benefit shall exceed the amounts permitted in Section 415 of the Intemal Revenue Code. c. In no event may a member's retirement benefit be delayed beyond the later of April 1 st following the calendar year in which the member attains age seventy and one-half (70-1/2), or such later date as may be set by terms of the Intemal Revenue Code, or April 1 st of the year following the calendar year in which the member retires. When a distribution of the participant's entire interest is not made in a lump sum, the distribution will be made in or more of the following ways: over the life of the participant; over the life of the participant and designated beneficiary; over a period certain not extending beyond the life expectancy of the participant; or over a period certain not extending beyond the joint life and last survivor expectancy of the participant and a designated beneficiary. D. If the distribution has commenced before the participant's death, the remaining interest will be distributed at least as rapidly as under the method of distribution being used as of the date of the participant's death. The method of distribution, if the participant dies before distribution is commenced, must satisfy the following requirements: 1. Any remaining portion of the participant's interest that is not payable to a beneficiary designated by the participant will be distributed within five (5) years after the participant's death; 2. Any portion of the participant's interest that is payable to a beneficiary designated by the participant will be distributed either: (I) within five (5) years after the participant's death; or (ii) over the life of the beneficiary, or over a period certain not extending beyond the life expectancy of the beneficiary, commencing not later than the end of the calendar year following the calendar year in which the participant died (or, if a designated beneficiary is the participant's surviving spouse, commencing not later than the end of the calendar year following the calendar year in which the participant would have attained age seventy and one-half (70-1/2)). Direct transfers of eligible distributions shall be made as follows: E. 1. General. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee's election under this subsection, a distributee may elect, at the time and in the manner prescribed by the Board, to have any portion of an eligible rollover distribution made directly to an eligible retirement plan specified by the distributee in a direct rollover. 2. Definitions. (a) Eligible Rollover Distribution. An Eligible Rollover Distribution is any distribution of all or any portion of the balance to the credit of a distributee, except that an eligible rollover distribution does not include: any distribution that is one (1) of a series of a substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under Section 401 (a)(9) of the Internal Revenue Code; and the portion of any distribution that is not includable in gross income. (b) Eligible Retirement Plan. An Eligible Retirement Plan is an individual retirement account described in Section 408(a) of the Intemal Revenue Code, an Individual Retirement Annuity described in Section 408(b) of the Intemal Revenue Code, an Annuity Plan described in Section 403(a) of the Internal Revenue Code, a plan described in Section 457 of tihe Intemal revenue Code, or a Qualified Trust described in Section 401 (a) of the Internal Revenue Code that accepts a distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to a surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity, (c) Distributee. A Distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse is a distributee with regard to the interest of the spouse. (d) Direct Rollover. A Direct Rollover is a payment by the Plan to the eligible retirement plan specified by the distributee, SECTION -' AMENDMENT OR TERMINATION OF THE SYSTEM. A. It is the intention of the City and the Board that this pension plan shall constitute an irrevocable trust and no portion of the assets may revert to the employer until all other obligations of the Plan, including the payment to the last surviving member and beneficiary has been paid. No amendment shall result in members receiving lower benefits than those in effect on the date the member commenced service with the City. B. In the event of termination or partial termination of the Plan, each participant's accrued pension benefit shall become nonforfeitable (100 percent vested) to the extent funded. At such time, the funds shall be appropriated and distributed in accordance with the provisions of Chapter 185. In the event that the Plan is terminated, the assets of the Plan shall first be distributed to retired members and their beneficiaries, If there is any asset value remaining after the apportionment to retired members and their beneficiaries, apportionment shall next be made to each member in the service who has completed at least ten (10) years of credited service and has contributed to the fund for at least ten (10) years and who is not otherwise eligible to retire. If there is any asset value after the apportionments to retirees and their beneficiaries and to vested members of the Plan, apportionment shall lastly be made in respect of each member in the service of the City in an amount not to exceed the total value of the member's contributions. In the event that there is any asset value remaining after full apportionment to all members and beneficiaries of the Plan, the excess, if any, shall revert proportionately to the City and the State of Florida on the basis of contributions to the Plan. SECTION -' DISTRIBUTION OF MARITAL INTERESTS IN THE PLAN. B. In the event that the Board is served with a domestic relations order or other legal process purporting to require the payment of any portion of a member's benefit to another person as a result of a dissolution of marriage, the Board shall cause such order to be reviewed to determine compliance with the provisions of the Plan. The Board of Trustees shall be authorized to intervene in any such dissolution of marriage proceeding to ensure that such domestic relations A. order is otherwise consistent with the distribution of an interest in a public employees retirement plan under state law. c. Any cost associated with the modification or correction of such domestic relations orders shall be the responsibility of the Plan member and payment of any such cost shall be a condition precedent to the receipt of benefits from the plan. SECTION -' MISCELLANEOUS. A. The present or future right of a person to money in the Pension Fund or to a retirement allowance, an optional allowance, a death benefit, the retum of contributions, or any other right accrued or accruing under the provisions of this Plan shall not be assignable and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency law or any other process of law whatsoever, except with respect to alimony, child support or medical payments to a former spouse or minor child. B. The Board shall have the power to examine into the facts upon which any pension has been granted under any prior or existing law or which may be granted in the future or obtained erroneously, fraudulently, or illegally for any reason. The Board is empowered to purge the pension rolls of any person who has been granted a pension under a prior or existing law, or who is hereafter granted a benefit under this ordinance if the granting of that pension is found to be erroneous, fraudulent, or illegal for any reason; and to reclassify any pensioner who has under any prior or existing law or who may under this Ordinance be erroneously, improperly or illegally classified. c. Should any change or error in retirement system records be discovered or result in any member or beneficiary receiving from the Retirement Plan more or less than he or she would have been entitled to receive had the records been correct, the Board shall have the power to correct such error and, as far as possible, adjust the payments in such a manner that the actuarial equivalent of a benefit to which such member or beneficiary was correctly entitled shall be paid. D. If any member or beneficiary is a minor or is under any other legal disability, the Board of Trustees shall have the power to withhold payment of benefits until the Board is presented with proof satisfactory to the Board of the appointment of a guardian. If the Board becomes aware that any member or beneficiary is incapable of personally receiving and giving a valid receipt for any payment due under the Plan, the Board shall cause notice to be given to that participant or beneficiary of a hearing to determine whether said benefits should continue to be paid until the appointment of a guardian. During the pendency of any such hearing, however, the Board may continue to pay benefits to the member or beneficiary and that such payment shall be a complete discharge of any liability under the Plan for such payment. E. Any person who willfully and knowingly makes. or causes to be made, or assists, conspires with, urges another to make, or causes to be made, any fraudulent, or misleading oral or written statement or withholds or conceals material information to obtain any benefit available under this plan shall be guilty of a misdemeanor of the first degree, punishable under sections 775.082 and 775.083, Florida Statutes. In addition to any applicable criminal penalty, any beneficiary or participant in this plan who is convicted of this offense may, in the discretion of the Board, be required to forfeit any benefits payable under this plan. For the purposes of this section, the term "conviction" shall mean a determination of guilt whether by plea or trial, whether or not adjudication is withheld. SECTIONS . RESERVED. Section 2, The City contribution, effective October 1, 2003 shall be fourteen and one-half (14.5%) percent of covered payroll. The employee contribution rate shall be six and three tenths (6.3%) percent. The assumed rate of Chapter 185 insurance premium tax rebates shall be five (5%) percent of covered payroll. Future contribution increases or decreases in the plan shall be shared equally between the employees and the City through September 30, 2005, Section 3. Employees hired as a City of Aventura police officer prior to October 1, 2000 shall be eligible to receive credited service from the initial date of employment as a police officer provided the member transfers all funds from the city 401(a)plan to the defined benefit plan effective October 1, 2003. The City shall make no further contributions to the 401(a) plan. Employees hired as a City of Aventura police officer after October 1, 2000 shall receive credited service effective October 1, 2003 and shall retain all balances to their credit in the 401 (a) plan; provided, however, that the City shall make no further contributions to the 401 (a) plan. Employees hired as a City of Aventura Police Officer on or after October 1, 2000 shall continue to accrue vesting rights in the 401 (a), but the City shall make no additional contributions. Section 4. Should this ordinance or any part thereof be declared invalid by a Court of competent jurisdiction, the invalidity of any part of this ordinance shall not otherwise affect the validity of the remaining provisions of this ordinance, which shall be deemed to have been enacted without the invalid provision. Section 5. It is the intention of the City Commission of the City of Aventura that the provisions of this ordinance shall become and be made a part of the Code of the City of Aventura, and that the word "ordinance" may be changed to "section," "article," or such other appropriate word or phrase in order to accomplish such intentions. Section 6, This ordinance shall become effective immediately upon its passage. The foregoing Ordinance was offered by Commissioner Holzberg, who moved its adoption on first reading. This motion was seconded by Commissioner Cohen, and upon being put to a vote, the vote was as follows: Commissioner lev Auerbach Commissioner Ken Cohen Commissioner Bob Diamond Commissioner Harry Holzberg Commissioner Manny Grossman Vice Mayor Jay R. Beskin Mayor Jeffrey M. Perlow yes yes yes yes yes yes yes The foregoing Ordinance was offered by Commissioner Dia8Dnd , who moved its adoption on second reading. This motion was seconded by Commissioner Cohen and upon being put to a vote, the vote was as follows: Commissioner lev Auerbach Commissioner Ken Cohen Commissioner Bob Diamond Commissioner Harry Holzberg Commissioner Manny Grossman Vice Mayor Jay R. Beskin Mayor Jeffrey M. Perlow yes yes yes absent: yes yes yes PASSED AND ADOPTED on first reading this 6th day of January, 2004. PASSED AND ADOPTED on second reading this 2nd day of March, 004. APPROVED AS TO LEGAL SUFFICIENCY: rI~~ CITY ATTORNEY ORDINANCE NO, 2004-13 AN ORDINANCE OF THE CITY OF AVENTURA, FLORIDA AMENDING ORDINANCE 2004-07 WHICH ADOPTED THE POLICE PENSION PLAN AND TRUST FUND AS REQUESTED BY THE STATE OF FLORIDA DIVISION OF RETIREMENT; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Aventura has determined that the creation of a local law pension plan is in the best interests of the police officers and citizens of the City of Aventura; WHEREAS, the City Commission of the City of Aventura concurs that establishment of a local law pension plan is the most efficient means of complying with state law and is in the best interests of the citizens and taxpayers of the City; and WHEREAS, the State of Florida Division of Retirement has requested clarification of plan language; NOW, THEREFORE, BE IT ORDAINED by the City Commission of the City of Aventura: Section 1. Sections hereby amended as follows: (I) and (L) of the Aventura City Code is SECTION -' DEFINITIONS. I. Credited Service shall mean membership credit upon which a member's eligibility to receive benefits under the Retirement Plan is based or upon which the amount of such benefits is to be determined and shall be calculated based on the aaareaate number of years of service and fractional parts of years of service of any police officer. omittina intervenina years and fractional parts of vears when such police officer mav not have been emploved bv the Citv, The term credited service shall be interpreted in accordance with Section 185.02, Florida Statutes. unless otherwise provided herein. L. Earnable Compensation shall mean a member's base pay for regular hours worked as an employee, overtime Ordinance No. 2004-13 Page 2 pay, amounts paid for administrative leave, bereavement leave, compensatory time paid in lieu of regular wages, court time, Garcia days for K-9 service, holiday leave taken in lieu of regular pay, job basis leave, jury duty, light duty, paid military leave, personal leave taken in lieu of regular pay, storm leave, storm/hurricane pay, suspension with pay, pay for time off due on the job injury, vacation leave taken in lieu of regular pay, and workers' compensation paid by the City; and, excluding pay received for off-duty details for third parties, whether or not the payment is made through the City. Earnable compensation shall not include payouts of accumulated leave taken as cash upon separation from service. Retroactive payments shall be credited to the calendar year in which such payments would have been received had they been timely paid. Compensation for any plan year shall not include any amounts in excess of the Internal Revenue Code Section 401 (a)(17) limitation as adjusted for change in the cost of living in the manner prescribed by the lAC, Section 401 (a)(17)(B). Pursuant to Section 440.21. Florida Statutes. pension contributions shall not be deducted from a member's workers' compensation award. Section 2, Section amended as follows: (H) (4) of the Aventura City Code is hereby SECTION_, SERVICE RETIREMENT BENEFIT. H. 4. Other Options. The Retirees may, by uniform rule, establish any other optional form of payment, which is the actuarial equivalent of any other form of retirement provided for in this Plan, or which optional form of payment is cost neutral to the Plan. An interest only option or an option providing guaranteed payments over a period in excess of twenty (20) years or beyond age eighty-five (85) may not be offered. The Board, in its sale discretion, may make a lump sum distribution which is the actuarial equivalent of the monthly benefit if the lump sum is not greater than $-1-;-7ëG $2.500.00. or if the monthlv retirement income is less than $100. Section 3. Section amended as follows: (A) of the Aventura City Code is hereby SECTION_, BUY-BACK FOR MILITARY SERVICE. A. Any member of the Plan who is employed by the City prior to entry into military service and who takes a leave of absence for the purpose of entering into military service in the Armed Forces of the United States and thereafter re-enters the employ of the City, and is vested, shall be entitled to purchase service credits for the period of absence by contributing the actuarial cost of the benefit which would have been earned had the member continued in City employment for the period of miiitary service Ordinance No, 2004-13 Page 3 based on the salary in effect on the date of the leave of absence, for each year being purchased; except to the extent that state or federal law shall require the provision of service credit without a member cantribution. There shall be no credit for military service prior to City employment as a police officer. In determinina the creditable service of anv Dolice officer. credit for UD to five (5) vears of the time spent in the militarv service of the Armed Forces of the United States shall be added to the years of actual service. if: 1. The police officer is in the active emplov of the municipalitY Drior to such service and leaves a Dosition. other than a temporarv position, for the purpose of voluntarv or involuntarv service in the Armed Forces of the United States, 2. The police officer is entitled to reemplovment under the provisions of the Uniformed Services Emplovment and Reemplovment Riahts Act. 3. The police officer returns to his or her employment as a police officer of the municipalitY within 1 vear from the date of his or her release from such active service. Section 4, Section (D), (F), (K), (l) and (N) of the Aventura City Code are hereby amended as follows: SECTION -' DISABiliTY, D. The service-incurred disability benefit shall be paid in equal monthly installments in an amount equal to the member's accrued benefit, but not less than forty-two (42%) percent of the member's final monthly compensation as of the date of disability retirement. This benefit shall be in addition to any short or long term disability benefit provided by the City; but, shall be subject to offset for workers' campensation paid by the City as permitted by law. Pursuant to Section 185.18(5), Florida Statutes service-incurred disabilitY benefits mav not be offset below 42% of averaae month Iv compensation. F. Disability benefits shall be paid on the first day of each month. No benefit shall be paid until the Board of Trustees has actually considered and voted upon entitlement to disability. The monthlv retirement income to which a police officer is entitled in the event of his or her disabilitY retirement shall be pavable on the first dav of the first month after the board of trustees determines such entitlement. However. the monthlv Ordinance No. 2004-13 Page 4 retirement income shall be Davable as of the date the board determines such entitlement. and anv portion due for a partial month shall be paid toaether with the first oavment. The last Davment will be. if the Dolice officer recovers from the disabIlIty. the oavment due next orecedina the date of such recoverv or. if the oolice officer dies without recoverina from his or her disabilitv. the oavment due next orecedina death or the 12Oth monthlv pavment. whichever is later. In lieu of the benefit oavment as orovided in this subsection. a oolice officer mav select an ootional form of benefit. Anv monthlv retirement income pavments due after the death of a disabled police officer shall be paid to the police officer's desianated beneficiarv or beneficiaries. K. 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 of Trustees 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 disability, the Board shall appoint a medical committee to be composed of not less than one nor more than three licensed physicians. The applicant for disability shall be required to submit to examination by the medical committee. The medical committee shall report its findings to the Board of the Trustees which shall include a determination, to the extent reasonably possible, the origin of the disability, whether the disability is permanent, and whether the disability is total. In making that determination, the medical committee shall be bound by the definition of disability set forth in this Plan. The decision to arant or denv a disability application shall rest exclusivelv within the discretion of the Board of Trustees. who shall comDlv with the provisions of this Plan as well as the disabilitv provisions of Chapter 185. Florida Statutes. L. Upon receipt of the report of the medical committee, the Trustees shall schedule a public hearing at which time the Board shall review all reports of the medical committee, together with any 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 member 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. SaiEl Aearil'lg will tlo saREI!oIsteEl seRsiBtaRt ",,'itA IRe ¡¡FiRSi¡¡laB at EI!oIe ¡¡raSaBB aREI tRa ¡¡,¡laB at aviElaAGe gaAÐFally ap¡¡lisallie ta aaA'liAiBtFati'/a ¡¡fÐsaaaiRgB BRall a¡¡ply, TRa Beara Bhall Aal/a tRa power Ordinance No, 2004-13 Page 5 N. t9 issue sulapeeRas 69FRpelliR! tAe aäeRaaR6e 9f 'tJitR96696. Þd 6aia !:IoaAR!) IRe applis8At FRay pFeseRt sl:IeR eFaI aRE! \"'ritteA eviE!eAee as tRe ilpplisaRt aeeFRs R96essary te estaelisA its elll'EleR sf pFosf. TAe Beara FRay appeiAt spssial oollRsel as aA aGl'JooatB te 6r9S6 sxamiRe VJitRe6se6 am:j to eJfer argUFRBRt iR eppesitieR te tAe applisatieR. TAB aäerRBY fer tl=Ie Beara 61=1all Ret 6erve BetA as aEl¥esaie aRa as aaviser Ie IRe BeaFEI iA tl=Ie same presgeaiA!. TRe appliSQAt aRe tRB geara si:1alll=Iave tile rigi:1t te examine aRe GFeS8 OXaFRiRe all witRes8es. The Board shall have the authoritv to adoPt administrative rules and reaulations aovernina disabilitv hearinas, 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. In the event that the disability benefit is denied, the applicant shall have the right to judicial review by complaint for common law certiorari in the Circuit Court of Miami-Dade County. No member shall be granted a disability pension upon a determination by the Board that the disability resulted from: 5. Excessive and habitual use of drugs, intoxicants or narcotics; Injury or disease sustained while wilfully and illegally participating in fights, riots, civil insurrections or while committing a crime; Injury or disease arising from service in the armed forces; Injury or disease sustained after employment as a police officer has ended; Iniurv or disease sustained while workina for anvone other than the citv and arisina out of such emDlovment. .'\AY eSSI:lFreASe arisiAg IreFR 6eR13eAsalale eFRpleYFReAt uRrelatea Ie reglliar City eFR3leyFRORt. 1. 2. 3. 4. Section 5. amended as follows: Section B of the Aventura City Code is hereby SECTION -' VESTING AND TERMINATION. B. A member who shall leave the service of the City prior to eligibility for normal service retirement or early service retirement, but who has completed ten (10) years of creditable service shall be entitled to receive retirement benefits commencing at the regular normal service retirement date. Such benefits will be based on final monthly compensation and credited service as of the date of termination, If anv deferred vested member who has been in the service of the municiDalitv for at least 10 vears elects to leave his or her accrued contributions with the Plan. the member may select earlv retirement upon attainina ace 50 or Ordinance No. 2004-13 Page 6 older. Earlv retirement benefits shall be paid at the actuarial equivalent of the amount of such retirement income otherwise pavable. as provided in Section 185.16(4). Florida Statutes. Section 6, The City contribution, effective October 1, 2003 shall be fourteen and one-half (14.5%) percent of covered payroll. The employee contribution rate shall be six and three tenths (6.3%) percent. The assumed rate of Chapter 185 insurance premium tax rebates shall be five (5%) percent of covered payroll. Future contribution increases or decreases in the plan shall be shared equally between the employees and the City through September 30, 2005. Consistent with the reQuirements of Section 112.66 and 185.07. Florida Statutes. the Citv shall contribute the amount necessarv to maintain the Plan on an actuariallv sound basis. To the extent that anv chances are reQuired in the member contribution rate. a separate amendment shall be reQuired to reflect the revised member contribution. Section 7. Employees hired as a City of Aventura police officer prior to October 1, 2000 shall be eligible to receive credited service from the initial date of employment as a police officer at the Plan's three (3%) benefit accrual rate, provided the member transfers all funds from the city 401 (a) plan to the defined benefit plan effective October 1, 2003. Emplovees hired as a Citv of Aventure police officer prior to October 1. 2000 who elect not to transfer all funds from the citv 401 (a) plan shall onlv receive prior credited service at a two percent (2%) benefit accrual rate. The City shall make no further contributions to the 401 (a) plan. Employees hired as a City of Aventura police officer after October 1, 2000 shall receive credited service effective October 1, 2003 and shall retain all balances to their credit in the 401 (a) plan; provided, however, that the City shall make no further contributions to the 401 (a) plan. Employees hired as a City of Aventura Police Officer on or after October 1, 2000 shall continue to accrue vesting rights in the 401 (a), but the City shall make no additional contributions. Section 8, Should this ordinance or any part thereof be declared invalid by a Court of competent jurisdiction, the invalidity of any part of this ordinance shall not otherwise affect the validity of the remaining provisions of this ordinance, which shall be deemed to have been enacted without the invalid provision. Section 9. It is the intention of the City Commission of the City of Aventura that the provisions of this ordinance shall become and be made a part of the Code of the City of Aventura, and that the word "ordinance" may be changed to "section," "article," or such other appropriate word or phrase in order to accomplish such intentions. Section 10. This ordinance shall become effective immediately upon its passage. Ordinance No, 2004-13 Page 7 The foregoing Ordinance was offered by Commissioner Holzberg, who moved its adoption on first reading. This motion was seconded by Commissioner Cohen, and upon being put to a vote, the vote was as follows: Commissioner lev Auerbach Commissioner Jay R. Beskin Commissioner Ken Cohen Commissioner Manny Grossman Commissioner Harry Holzberg Vice Mayor Bob Diamond Mayor Jeffrey M. Perlow yes yes yes yes yes yes yes The foregoing Ordinance was offered by Commissioner Cohen, who moved its adoption on second reading. This motion was seconded by Vice Mayor Diamond and upon being put to a vote, the vote was as follows: Commissioner lev Auerbach Commissioner Jay R. Beskin Commissioner Ken Cohen Commissioner Manny Grossman Commissioner Harry Holzberg Vice Mayor Bob Diamond Mayor Jeffrey M. Perlow yes yes yes yes yes yes yes PASSED AND ADOPTED on first reading this 4th day of May, 2004. Ordinance No. 2004-13 Page 8 PASSED AND ADOPTED on second reading this 1s1 day of June, 2004. /1F',~, MAYOR APPROVED AS TO LEGAL SUFFICIENCY: Jh--I Þ¿¡ ~ CITY ATTORNEY Statutes & Constitution :View Statutes: flsenate.gov Page 1 of27 Select Year: 2003 . §J The Florida Statutes CHAPTER 185 MUNICIPAL POLICE PENSIONS 185.01 Legislative declaration. 185.02 Definitions. 185.03 Municipal police officers' retirement trust funds; creation; applicability of provisions; participation by public safety officers. 185.04 Actuarial deficits not state obligations. 185.05 Board of trustees; members; terms of office; meetings; legal entity; costs; attorney's fees. 185.06 General powers and duties of board of trustees. 185.061 Use of annuity or insurance policies. 185.07 Creation and maintenance of fund. 185.08 State excise tax on casualty insurance premiums authorized; procedure. 185.09 Report of premiums paid; date tax payable. 185.10 Department of Revenue and Division of Retirement to keep accounts of deposits; disbursements. 185.105 Police and Firefighters' Premium Tax Trust Fund. 185.11 Funds received by municipalities, deposit in retirement trust fund. 185.12 Payment of excise tax credit on similar state excise or license tax. 185.13 Failure of insurer to comply with chapter; penalty. 185.16 Requirements for retirement. 185.161 Optional forms of retirement income. 185.162 Beneficiaries. 185.18 Disability retirement. 185.185 False, misleading, or fraudulent statements made to obtain public retirement benefits prohibited; penalty. 185.19 Separation from municipal service; refunds. 185.191 Lump.sum payment of small retirement income. http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&URL=ChO... 7/912004 Statutes & Constitution :View Statutes: flsenate.gov Page 2 of27 185.21 Death prior to retirement; refunds of contributions or payment of death benefits. 185.221 Annual report to Division of Retirement; actuarial valuations. 185.23 Duties of Division of Retirement; rulemaking authority; investments by State Board of Administration. 185.25 Exemption from tax and execution. 185.30 Depository for retirement fund. 185.31 Municipalities and boards independent of other municipalities and boards and of each other. 185.34 Disability in line of duty. 185.341 Discrimination in benefit formula prohibited; restrictions regarding designation of joint annuitants. 185.35 Municipalities having their own pension plans for police officers. 185.37 Termination of plan and distribution of fund. 185.38 Transfer to another state retirement system; benefits payable. 185.39 Applicability. 185.50 Retiree health insurance subsidy. 185.60 Optional participation. 185.01 Legislative declaration.-- (1) It is hereby found and declared by the Legislature that police officers as hereinafter defined perform both state and municipal functions; that they make arrests for violations of state traffic laws on public highways; that they keep the public peace; that they conserve both life and property; and that their activities are vital to public welfare of this state. Therefore the Legislature declares that it is a proper and legitimate state purpose to provide a uniform retirement system for the benefit of police officers as hereinafter defined and intends, in implementing the provisions of s. 14, Art. X of the State Constitution as they relate to municipal police officers' retirement trust fund systems and plans, that such retirement systems or plans be managed, administered, operated, and funded in such manner as to maximize the protection of police officers' retirement trust funds. Therefore, the Legislature hereby determines and declares that the provisions of this act fulfill an important state interest. (2) This chapter hereby establishes, for all municipal pension plans now or hereinafter provided for under this chapter, including chapter plans and local law plans, minimum benefits and minimum standards for the operation and funding of such plans, hereinafter referred to as municipal police officers' retirement trust funds. The minimum benefits and minimum standards set forth in this chapter may not be diminished by local ordinance or by special act of the Legislature, nor may the minimum benefits or minimum standards be reduced or offset by any other local, state, or federal plan that may include police officers in its operation, except as provided under s. 112.65. History.--s. 1, ch. 28230, 1953; s. 1, ch. 86-42; s. 41, ch. 99-1. 185.02 Definitions.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter, the following words and phrases as used in this chapter shall have the following meanings, unless a different meaning is plainly required by the context: http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 3 of27 (1) "Average final compensation" means one-twelfth of the average annual compensation of the 5 best years of the last 10 years of creditable service prior to retirement, termination, or death. (2) "Casualty insurance" means automobile public liability and property damage insurance to be applied at the place of residence of the owner, or if the subject is a commercial vehicle, to be applied at the place of business of the owner; automobile collision insurance; fidelity bonds; burglary and theft insurance; and plate glass insurance. "Multiple peril" means a combination or package policy that includes both property coverage and casualty coverage for a single premium. (3) "Chapter plan" means a separate defined benefit pension plan for police officers which incorporates by reference the provisions of this chapter and has been adopted by the governing body of a municipality as provided in s. 185.08. Except as may be specifically authorized in this chapter, provisions of a chapter plan may not differ from the plan provisions set forth in ss. 185.01- 185.341 and 185.37-185.39. Actuarial valuations of chapter plans shall be conducted by the division asprovidedbys.185.221(1)(b). (4) "Compensation" or "salary" means the total cash remuneration including "overtime" paid by the primary employer to a police officer for services rendered, but not including any payments for extra duty or a special detail work performed on behalf of a second party employer. However, a local law plan may limit the amount of overtime payments which can be used for retirement benefit calculation purposes, but in no event shall such overtime limit be less than 300 hours per officer per calendar year. (a) Any retirement trust fund or plan which now or hereafter meets the requirements of this chapter shall not, solely by virtue of this subsection, reduce or diminish the monthly retirement income otherwise payable to each police officer covered by the retirement trust fund or plan. (b) The member's compensation or salary contributed as employee-elective salary reductions or deferrals to any salary reduction, deferred compensation, or tax-sheltered annuity program authorized under the Internal Revenue Code shall be deemed to be the compensation or salary the member would receive if he or she were not participating in such program and shall be treated as compensation for retirement purposes under this chapter. (c) For any person who first becomes a member in any plan year beginning on or after January 1, 1996, compensation for any plan year shall not include any amounts in excess of the Internal Revenue Code s. 401 (a)(17) limitation (as amended by the Omnibus Budget Reconciliation Act of 1993), which limitation of $150,000 shall be adjusted as required by federal law for qualified government plans and shall be further adjusted for changes in the cost of living in the manner provided by Internal Revenue Code s. 401 (a)(17)(B). For any person who first became a member prior to the first plan year beginning on or after January 1, 1996, the limitation on compensation shall be not less than the maximum compensation amount that was allowed to be taken into account under the plan as in effect on July 1, 1993, which limitation shall be adjusted for changes in the cost of living since 1989 in the manner provided by Internal Revenue Code s. 401 (a)(17) (1991). (5) "Creditable service" or "credited service" means the aggregate number of years of service and fractional parts of years of service of any police officer, omitting intervening years and fractional parts of years when such police officer may not have been employed by the municipality subject to the following conditions: (a) No police officer will receive credit for years or fractional parts of years of service if he or she has withdrawn his or her contributions to the fund for those years or fractional parts of years of service, unless the police officer repays into the fund the amount he or she has withdrawn, plus interest as determined by the board. The member shall have at least 90 days after his or her reemployment to make repayment. (b) A police officer may voluntarily leave his or her contributions in the fund for a period of 5 years after leaving the employ of the police department, pending the possibility of his or her being rehired by the same department, without losing credit for the time he or she has participated actively as a police officer. If he or she is not reemployed as a police officer with the same http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 4 of27 department within 5 years, his or her contributions shall be returned to him or her without interest. (c) Credited service under this chapter shall be provided only for service as a police officer, as defined in subsection (11), or for military service and shall not include credit for any other type of service. A municipality may, by local ordinance, provide for the purchase of credit for military service occurring prior to employment as well as prior service as a police officer for some other employer as long as the police officer is not entitled to receive a benefit for such other prior service as a police officer. (d) In determining the creditable service of any police officer, credit for up to 5 years of the time spent in the military service of the Armed Forces of the United States shall be added to the years of actual service, if: 1. The police officer is in the active employ of the municipality prior to such service and leaves a position, other than a temporary position, for the purpose of voluntary or involuntary service in the Armed Forces of the United States. 2. The police officer is entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act. 3. The police officer returns to his or her employment as a police officer of the municipality within 1 year from the date of his or her release from such active service. (6) "Deferred Retirement Option Plan" or "DROP" means a local law plan retirement option in which a police officer may elect to participate. A police officer may retire for all purposes of the plan and defer receipt of retirement benefits into a DROP account while continuing employment with his or her employer. However, a police officer who enters the DROP and who is otherwise eligible to participate shall not thereby be precluded from participating, or continuing to participate, in a supplemental plan in existence on, or created after, the effective date of this act. (7) "Division" means the Division of Retirement of the Department of Management Services. (8) "Enrolled actuary" means an actuary who is enrolled under Subtitle C of Title III of the Employee Retirement Income Security Act of 1974 and who is a member of the Society of Actuaries or the American Academy of Actuaries. (9) "Local law municipality" is any municipality in which there exists a local law plan. (10) "Local law plan" means a defined benefit pension plan for police officers or for police officers and firefighters, where included, as described in s. 185.35, established by municipal ordinance or special act of the Legislature, which enactment sets forth all plan provisions. Local law plan provisions may vary from the provisions of this chapter, provided that required minimum benefits and minimum standards are met. Any such variance shall provide a greater benefit for police officers. Actuarial valuations of local law plans shall be conducted by an enrolled actuary as provided in s. 185.221(2)(b). (11) "Police officer" means any person who is elected, appointed, or employed full time by any municipality, who is certified or required to be certified as a law enforcement officer in compliance with s. 943.1395, who is vested with authority to bear arms and make arrests, and whose primary responsibility is the prevention 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 s. 943.10(6) and (8), respectively. For the purposes of this chapter only, "police officer" also shall include a public safety officer who is responsible for performing both police and fire services. Any plan may provide that the police chief shall have an option to participate, or not, in that plan. http://www.flsenate.gov/Statutes/index.cfin?p=2&App _IDode= DisplaL S tatute& URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 5 of27 (12) "Police Officers' Retirement Trust Fund" means a trust fund, by whatever name known, as provided under s. 185.03 for the purpose of assisting municipalities in establishing and maintaining a retirement plan for police officers. (13) "Retiree" or "retired police officer" means a police officer who has entered retirement status. For the purposes of a plan that includes a Deferred Retirement Option Plan (DROP), a police officer who enters the DROP shall be considered a retiree for all purposes of the plan. However, a police officer who enters the DROP and who is otherwise eligible to participate shall not thereby be precluded from participating, or continuing to participate, in a supplemental plan in existence on, or created after, the effective date of this act. (14) "Retirement" means a police officer's separation from city employment as a police officer with immediate eligibility for receipt of benefits under the plan. For purposes of a plan that includes a Deferred Retirement Option Plan (DROP), "retirement" means the date a police officer enters the DROP. (15) "Supplemental plan" means a plan to which deposits of the premium tax moneys as provided in s. 185.08 are made to provide extra benefits to police officers, or police officers and firefighters where included, under this chapter. Such a plan is an element of a local law plan and exists in conjunction with a defined benefit plan that meets the minimum benefits and minimum standards of this chapter. (16) "Supplemental plan municipality" means any local law municipality in which there existed a supplemental plan as of December 1, 2000. History.--s. 11, ch. 28230,1953; s. 1, ch. 29825, 1955; s. 1, ch. 59-320; s. 1, ch. 61-85; s. 7, ch. 79-380; s. 2, ch. 79-388; s. 2, ch. 86-42; s. 43, ch. 91-45; s. 40, ch. 93-193; s. 939, ch. 95-147; s. 14, ch. 95-154; s. 42, ch. 99-1; s. 28, ch. 2000-151; s. 3, ch. 2000-159; s. 2, ch. 2002-66. 185,03 Municipal police officers' retirement trust funds; creation; applicability of provisions; participation by public safety officers,--For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (1) There shall be established a special fund exclusively for the purpose of this chapter, which in the case of chapter plans shall be known as the "Municipal Police Officers' Retirement Trust Fund," in each municipality of this state, heretofore or hereafter created, which now has or which may hereafter have a regularly organized police department, and which now owns and uses or which may hereafter own and use equipment and apparatus of a value exceeding $500 in serviceable condition for the prevention of crime and for the preservation of life and property. (2) The provisions of this chapter shall apply only to municipalities organized and established pursuant to the laws of the state, and said provisions shall not apply to the unincorporated areas of any county or counties nor shall the provisions hereof apply to any governmental entity whose police officers are eligible to participate in the Florida Retirement System. (3) No municipality shall establish more than one retirement plan for public safety officers which is supported in whole or in part by the distribution of premium tax funds as provided by this chapter or chapter 175, nor shall any municipality establish a retirement plan for public safety officers which receives premium tax funds from both this chapter and chapter 175. History.--s. 1, ch. 28230, 1953; s. 2, ch. 29825,1955; s. 2, ch. 61-119; s. 1, ch. 65-152; s. 7, ch. 79-380; s. 2, ch. 79-388; s. 3, ch. 86-42; s. 43, ch. 99-1. 185.04 Actuarial deficits not state obligations.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter, actuarial deficits, if any, arising under this chapter are not the obligation of the state. History,--s. 1b, ch. 28230, 1953; s. 44, ch. 99-1. http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute& URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 6 of27 185.05 Board of trustees; members; terms of office; meetings; legal entity; costs; attorney's fees,--For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (1) In each municipality described in s. 185.03 there is hereby created a board of trustees of the municipal police officers' retirement trust fund, which shall be solely responsible for administering the trust fund. Effective October 1, 1986, and thereafter: (a) The membership of the board of trustees for chapter plans shall consist of five members, two of whom, unless otherwise prohibited by law, shall be legal residents of the municipality, who shall be appointed by the legislative body of the municipality, and two of whom shall be police officers as defined in s. 185.02 who shall be elected by a majority of the active police officers who are members of such plan. With respect to any chapter plan or local law plan that, on January 1,1997, allowed retired police officers to vote in such elections, retirees may continue to vote in such elections. The fifth member shall be chosen by a majority of the previous four members, and such person's name shall be submitted to the legislative body of the municipality. Upon receipt of the fifth person's name, the legislative body of the municipality shall, as a ministerial duty, appoint such person to the board of trustees as its fifth member. The fifth member shall have the same rights as each of the other four members appointed or elected as herein provided, shall serve as trustee for a period of 2 years, and may succeed himself or herself in office. Each resident member shall serve as trustee for a period of 2 years, unless sooner replaced by the legislative body at whose pleasure the member shall serve, and may succeed himself or herself as a trustee. Each police officer member shall serve as trustee for a period of 2 years, unless he or she sooner leaves the employment of the municipality as a police officer, whereupon the legislative body of the municipality shall choose a successor in the same manner as an original appointment. Each police officer may succeed himself or herself in office. (b) The membership of boards of trustees for local law plans shall be as follows: 1. If a municipality has a pension plan for police officers only, the provisions of paragraph (a) shall apply. 2. If a municipality has a pension plan for police officers and firefighters, the provisions of paragraph (a) shall apply, except that one member of the board shall be a police officer as defined in s. 185.02 and one member shall be a firefighter as defined in s. 175.032, respectively, elected by a majority of the active firefighters and police officers who are members of the plan. 3. Any board of trustees operating a local law plan on July 1,1999, which is combined with a plan for general employees shall hold an election of the police officers, or police officers and firefighters if included, to determine whether a plan is to be established for police officers only, or for police officers and firefighters where included. Based on the election results, a new board shall be established as provided in subparagraph 1. or subparagraph 2., as appropriate. The municipality shall enact an ordinance to implement the new board by October 1, 1999. The newly established board shall take whatever action is necessary to determine the amount of assets which is attributable to police officers, or police officers and firefighters where included. Such assets shall include all employer, employee, and state contributions made by or on behalf of police officers, or police officers and firefighters where included, and any investment income derived from such contributions. All such moneys shall be transferred into the newly established retirement plan, as directed by the board. With respect to any board of trustees operating a local law plan on June 30, 1986, nothing in this paragraph shall permit the reduction of the membership percentage of police officers or police officers and firefighters. (c) Whenever the active police officer membership of a closed chapter plan or closed local law plan as provided in s. 185.38 falls below 10, an active police officer member seat may be held by either a retired police officer or an active police officer member of the plan who is elected by the active and retired members of the plan. If there are no active or retired police officers remaining in the plan or capable of serving, the remaining board members may elect an individual to serve in the active police officer member seat. Upon receipt of such person's name, the legislative body of the municipality shall, as a ministerial duty, appoint such person to the board of trustees. This http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 7 of27 paragraph applies only to those plans that are closed to new members under s. 185.38(2), and does not apply to any other municipality having a chapter or local law plan. (d) If the chapter plan or local law plan with an active membership of 10 or more is closed to new members, the member seats may be held by either a retiree, as defined in s. 185.02, or an active police officer of the plan who has been elected by the active police officers. A closed plan means a plan that is closed to new members but continues to operate, pursuant to s. 185.38(2), for participants who elect to remain in the existing plan. This paragraph applies only to those plans that are closed to new members pursuant to s. 185.38(2) and does not apply to any other municipality that has a chapter plan or a local law plan. (2) The trustees shall by majority vote elect from its members a chair and a secretary. The secretary of the board shall keep a complete minute book of the actions, proceedings, or hearings of the board. The trustees shall not receive any compensation as such, but may receive expenses and per diem as provided by Florida law. (3) The board of trustees shall meet at least quarterly each year. (4) Each board of trustees shall be a legal entity that shall have, in addition to other powers and responsibilities contained herein, the power to bring and defend lawsuits of every kind, nature, and description. (5) In any judicial proceeding or administrative proceeding under chapter 120 brought under or pursuant to the provisions of this chapter, the prevailing party shall be entitled to recover the costs thereof, together with reasonable attorney's fees. (6) The provisions of this section may not be altered by a participating municipality operating a chapter or local law plan under this chapter. History.--s. 2, ch. 28230,1953; s. 2, ch. 59-320; s. 2, ch. 61-119; s. 4, ch. 86-42; s. 41, ch. 93-193; s. 940, ch. 95-147; s. 45, ch. 99-1; s. 6, ch. 2002-66. 185.06 General powers and duties of board of trustees.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (1) The board of trustees may: (a) Invest and reinvest the assets of the retirement trust fund in annuity and life insurance contracts of life insurance companies in amounts sufficient to provide, in whole or in part, the benefits to which all of the participants in the municipal police officers' retirement trust fund shall be entitled under the provisions of this chapter, and pay the initial and subsequent premiums thereon. (b) Invest and reinvest the assets of the retirement trust fund in: 1. Time or savings accounts of a national bank, a state bank insured by the Bank Insurance Fund, or a savings and loan association insured by the Savings Association Insurance Fund which is administered by the Federal Deposit Insurance Corporation or a state or federal chartered credit union whose share accounts are insured by the National Credit Union Share Insurance Fund. 2. Obligations of the United States or obligations guaranteed as to principal and interest by the United States. 3. Bonds issued by the State of Israel. 4. Bonds, stocks, or other evidences of indebtedness issued or guaranteed by a corporation organized under the laws of the United States, any state or organized territory of the United States, or the District of Columbia, provided: http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute& URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 8 of27 a. The corporation is listed on anyone or more of the recognized national stock exchanges or on the National Market System of the NASDAQ Stock Market and, in the case of bonds only, holds a rating in one of the three highest classifications by a major rating service; and b. The board of trustees shall not invest more than 5 percent of its assets in the common stock or capital stock of anyone issuing company, nor shall the aggregate investment in anyone issuing company exceed 5 percent of the outstanding capital stock of the company or the aggregate of its investments under this subparagraph at cost exceed 50 percent of the fund's assets. This paragraph shall apply to all boards of trustees and participants. However, in the event that a municipality has a duly enacted pension plan pursuant to, and in compliance with, s. 185.35 and the trustees thereof desire to vary the investment procedures herein, the trustees of such plan shall request a variance of the investment procedures as outlined herein only through a municipal ordinance or special act of the Legislature; where a special act, or a municipality by ordinance adopted prior to July 1, 1998, permits a greater than 50-percent equity investment, such municipality shall not be required to comply with the aggregate equity investment provisions of this paragraph. Notwithstanding any other provision of law to the contrary, nothing in this section may be construed to take away any preexisting legal authority to make equity investments that exceed the requirements of this paragraph. The board of trustees may invest up to 10 percent of plan assets in foreign securities. (c) Issue drafts upon the municipal police officers' retirement trust fund pursuant to this act and rules and regulations prescribed by the board of trustees. All such drafts shall be consecutively numbered, be signed by the chair and secretary, and state upon their faces the purposes for which the drafts are drawn. The city treasurer or other depository shall retain such drafts when paid, as permanent vouchers for disbursements made, and no money shall otherwise be drawn from the fund. (d) Finally decide all claims to relief under the board's rules and regulations and pursuant to the provisions of this act. (e) Convert into cash any securities of the fund. (f) Keep a complete record of all receipts and disbursements and of the board's acts and proceedings. (2) Any and all acts and decisions shall be effectuated by vote of a majority of the members of the board; however, no trustee shall take part in any action in connection with his or her own participation in the fund, and no unfair discrimination shall be shown to any individual employee participating in the fund. (3) The secretary of the board of trustees shall keep a record of all persons receiving retirement payments under the provisions of this chapter, in which shall be noted the time when the pension is allowed and when the pension shall cease to be paid. In this record, the secretary shall keep a list of all police officers employed by the municipality. The record shall show the name, address, and time of employment of such police officer and when he or she ceases to be employed by the municipality. (4) The sole and exclusive administration of, and the responsibilities for, the proper operation of the retirement trust fund and for making effective the provisions of this chapter are vested in the board of trustees; however, nothing herein shall empower a board of trustees to amend the provisions of a retirement plan without the approval of the municipality. The board of trustees shall keep in convenient form such data as shall be necessary for an actuarial valuation of the retirement trust fund and for checking the actual experience of the fund. (5)(a) At least once every 3 years, the board of trustees shall retain a professionally qualified independent consultant who shall evaluate the performance of any existing professional money manager and shall make recommendations to the board of trustees regarding the selection of money managers for the next investment term. These recommendations shall be considered by the board of trustees at its next regularly scheduled meeting. The date, time, place, and subject of http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov this meeting shall be advertised in the same manner as for any meeting of the board. Page 9 of27 (b) For the purpose of this subsection, the term "professionally Qualified independent consultant" means a consultant who, based on education and experience, is professionally qualified to evaluate the performance of professional money managers, and who, at a minimum: 1. Provides his or her services on a flat-fee basis. 2. Is not associated in any manner with the money manager for the pension fund. 3. Makes calculations according to the American Banking Institute method of calculating time- weighted rates of return. All calculations must be made net of fees. 4. Has 3 or more years of experience working in the public sector. (6) To assist the board in meeting its responsibilities under this chapter, the board, if it so elects, may: (a) Employ independent legal counsel at the pension fund's expense. (b) Employ an independent actuary, as defined in s. 185.02(8), at the pension fund's expense. (c) Employ such independent professional, technical, or other advisers as it deems necessary at the pension fund's expense. if the board chooses to use the municipality's or special district's legal counselor actuary, or chooses to use any of the municipality's other professional, technical, or other advisers, it must do so only under terms and conditions acceptable to the board. History.--s. 3, ch. 28230, 1953; s. 1, ch. 57-118; s. 3, ch. 59-320; s. 2, ch. 61-119; s. 1, ch. 65-366; ss. 22, 35, ch. 69-106; s. 5, ch. 86-42; s. 941, ch. 95-147; s. 2, ch. 98-134; s. 67, ch. 99-2; s. 18, ch. 99-392; s. 29, ch. 2000-151. 185.061 Use of annuity or insurance policies.--When the board of trustees of any municipality, chapter plan, local law municipality, or local law plan purchases annuity or life insurance contracts to provide all or part of the benefits promised by this chapter, the following principles shall be observed: (1) Only those officers who have been members of the retirement trust fund for 1 year or longer may be included in the insured plan. (2) Individual policies shall be purchased only when a group insurance plan is not feasible. (3) Each application and policy shall designate the pension fund as owner of the policy. (4) Policies shall be written on an annual premium basis. (5) The type of policy shall be one which for the premium paid provides each individual with the maximum retirement benefit at his or her earliest statutory normal retirement age. (6) Death benefit, if any, should not exceed: (a) One hundred times the estimated normal monthly retirement income, based on the assumption that the present rate of compensation continues without change to normal retirement date, or (b) Twice the annual rate of compensation as of the date of termination of service, or (c) The single-sum value of the accrued deferred retirement income (beginning at normal http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=DisplaL Statute&URL=ChO... 7/912004 Statutes & Constitution :View Statutes: flsenate.gov Page 100[27 retirement date) at date of termination of service, whichever is greatest. (7) An insurance plan may provide that the assignment of insurance contract to separating officer shall be at least equivalent to the return of the officer's contributions used to purchase the contract. An assignment of contract discharges the municipality from all further obligation to the participant under the plan even though the cash value of such contract may be less than the employee's contributions. (8) Provisions shall be made, either by issuance of separate policies, or otherwise, that the separating officer does not receive cash values and other benefits under the policies assigned to the officer which exceed the present value of his or her vested interest under the retirement plan, inclusive of the officer's contribution to the plan; the contributions by the state shall not be exhausted faster merely because the method of funding adopted was through insurance companies. (9) The police officer shall have the right at any time to give the board of trustees written instructions designating the primary and contingent beneficiaries to receive death benefit or proceeds and the method of the settlement of the death benefit or proceeds, or requesting a change in the beneficiary, designation or method of settlement previously made, subject to the terms of the policy or policies on the officer's life. Upon receipt of such written instructions, the board of trustees shall take the necessary steps to effectuate the designation or change of beneficiary or settlement option. History.--s. 4, ch. 59-320; s. 2, ch. 61-119; s. 942, ch. 95-147; s. 46, ch. 99-1. 185,07 Creation and maintenance of fund,--For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (1) The municipal police officers' retirement trust fund in each municipality described in s. 185.03 shall be created and maintained in the following manner: (a) By the net proceeds of the .85-percent excise tax which may be imposed by the respective cities and towns upon certain casualty insurance companies on their gross receipts of premiums from holders of policies, which policies cover property within the corporate limits of such municipalities, as is hereinafter expressly authorized. (b) Except as reduced or increased contributions are authorized by subsection (2), by the payment to the fund of 5 percent of the salary of each full-time police officer duly appointed and enrolled as a member of such police department, which 5 percent shall be deducted by the municipality from the compensation due to the police officer and paid over to the board of trustees of the retirement trust fund wherein such police officer is employed. No police officer shall have any right to the money so paid into the fund except as provided in this chapter. (c) By all fines and forfeitures imposed and collected from any police officer because of the violation of any rule adopted by the board of trustees. (d) By payment by the municipality or other sources of a sum equal to the normal cost and the amount required to fund any actuarial deficiency shown by an actuarial valuation as provided in part VII of chapter 112. (e) By all gifts, bequests and devises when donated to the fund. (f) By all accretions to the fund by way of interest or dividends on bank deposits or otherwise. (g) By all other sources of income now or hereafter authorized by law for the augmentation of such municipal police officers' retirement trust fund. (2) Member contribution rates may be adjusted as follows: (a) The employing municipality, by local ordinance, may elect to make an employee's http://www.flsenate.gov/Statutes/index.cfm?p=2&App- mode= Display - Statute&URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page II of27 contributions. However, under no circumstances may a municipality reduce the member contribution to less than one-half of 1 percent of salary. (b) Police officer member contributions may be increased by consent of the members' collective bargaining representative or, if none, by majority consent of police officer members of the fund to provide greater benefits. Nothing in this section shall be construed to require adjustment of member contribution rates in effect on the date this act becomes a law, including rates that exceed 5 percent of salary, provided that such rates are at least one-half of 1 percent of salary. History.--s. 4, ch. 28230,1953; s. 3, ch. 29825, 1955; s. 5, ch. 59-320; s. 2, ch. 61-119; s. 6, ch. 86-42; s. 943, ch. 95-147; s. 5, ch. 95-250; s. 47, ch. 99-1. 185.08 State excise tax on casualty insurance premiums authorized; procedure.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (1) Each incorporated municipality in this state described and classified in s. 185.03, as well as each other city or town of this state which on July 31, 1953, had a lawfully established municipal police officers' retirement trust fund or city fund, by whatever name known, providing pension or relief benefits to police officers as provided under this chapter, may assess and impose on every insurance company, corporation, or other insurer now engaged in or carrying on, or who shall hereafter engage in or carry on, the business of casualty insurance as shown by records of the Office of Insurance Regulation of the Financial Services Commission, an excise tax in addition to any lawful license or excise tax now levied by each of the said municipalities, respectively, amounting to .85 percent of the gross amount of receipts of premiums from policyholders on all premiums collected on casualty insurance policies covering property within the corporate limits of such municipalities, respectively. (2) In the case of multiple peril policies with a single premium for both property and casualty coverages in such policies, 30 percent of such premium shall be used as the basis for the .85- percent tax above. (3) The excise tax shall be payable annually March 1 of each year after the passing of an ordinance assessing and imposing the tax herein authorized. Installments of taxes shall be paid according to the provisions of s. 624.5092(2)(a), (b), and (c). History.--s. 5, ch. 28230, 1953; s. 2, ch. 61-119; s. 1, ch. 63-196; ss. 13, 35, ch. 69-106; s. 7, ch. 86-42; s. 24, ch. 87-99; s. 15, ch. 88-206; s. 11, ch. 89-167; s. 944, ch. 95-147; s. 48, ch. 99-1; s. 164, ch. 2003-261. 185.09 Report of premiums paid; date tax payable.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter, whenever any municipality passes an ordinance establishing a chapter plan or local law plan and assessing and imposing the tax authorized in s. 185.08, a certified copy of such ordinance shall be deposited with the division; and thereafter every insurance company, corporation, or other insurer carrying on the business of casualty insuring, on or before the succeeding March 1 after date of the passage of the ordinance, shall report fully in writing to the division and the Department of Revenue a just and true account of all premiums received by such insurer for casualty insurance policies covering or insuring any property located within the corporate limits of such municipality during the period of time elapsing between the date of the passage of the ordinance and the end of the calendar year. The aforesaid insurer shall annually thereafter, on March 1, file with the Department of Revenue a similar report covering the preceding year's premium receipts. Every such insurer shall, at the time of making such report, pay to the Department of Revenue the amount of the tax heretofore mentioned. Every insurer engaged in carrying on a general casualty insurance business in the state shall keep accurate books of account of all such business done by it within the limits of such incorporated municipality in such a manner as to be able to comply with the provisions of this chapter. Based on the insurers' reports of premium receipts, the division shall prepare a consolidated premium report and shall furnish to any municipality requesting the same a copy of the relevant section of that report. http://www.flsenate.gov/Statuteslindex.cfm?p=2&App - mode=Display - Statute&URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 12 of27 History.--s. 6, ch. 28230, 1953; s. 2, ch. 61-85; ss. 12, 13, 35, ch. 69-106; s. 42, ch. 93-193; s. 49, ch. 99-1; s. 7, ch. 2000-355. 185,10 Department of Revenue and Division of Retirement to keep accounts of deposits; disbursements.--For any municipality having a chapter plan or local law plan under this chapter: (1) The Department of Revenue shall keep a separate account of all moneys collected for each municipality under the provisions of this chapter. All moneys so collected must be transferred to the Police and Firefighters' Premium Tax Trust Fund and shall be separately accounted for by the division. The moneys budgeted as necessary to pay the expenses of the division for the daily oversight and monitoring of the police officers' retirement plans under this chapter and for the oversight and actuarial reviews conducted under part VII of chapter 112 are annually appropriated from the interest and investment income earned on the moneys collected for each municipality or special fire control district and deposited in the Police and Firefighters' Premium Tax Trust Fund. Interest and investment income remaining thereafter in the trust fund which is unexpended and otherwise un allocated by law shall revert to the General Revenue Fund on June 30 of each year. (2) The Chief Financial Officer shall, on or before July 1 of each year, and at such other times as authorized by the division, draw his or her warrants on the full net amount of money then on deposit pursuant to this chapter in the Police and Firefighters' Premium Tax Trust Fund, specifying the municipalities to which the moneys must be paid and the net amount collected for and to be paid to each municipality, respectively. The sum payable to each municipality is appropriated annually out of the Police and Firefighters' Premium Tax Trust Fund. The warrants of the Chief Financial Officer shall be payable to the respective municipalities entitled to receive them and shall be remitted annually by the division to the respective municipalities. In lieu thereof, the municipality may provide authorization to the division for the direct payment of the premium tax to the board of trustees. In order for a municipality and its retirement fund to participate in the distribution of premium tax moneys under this chapter, all the provisions shall be complied with annually, including state acceptance pursuant to part VII of chapter 112. History.--s. 7, ch. 28230, 1953; s. 2, ch. 29734, 1955; s. 2, ch. 61-119; ss. 13, 35, ch. 69-106; s. 1, ch. 74-297; s. 4, ch. 85-61; s. 8, ch. 86-42; s. 43, ch. 93-193; s. 13, ch. 94-259; s. 1458, ch. 95-147; s. 6, ch. 95-250; s. 50, ch. 99-1; s. 165, ch. 2003-261. '185,105 Police and Firefighters' Premium Tax Trust Fund.--The Police and Firefighters' Premium Tax Trust Fund is created, to be administered by the Division of Retirement of the Department of Management Services. Funds credited to the trust fund, as provided in chapter 95- 250, Laws of Florida, or similar legislation, shall be expended for the purposes set forth in that legislation. History.--s. 1, ch. 95-249. 'Note.--Also published at s. 175.1215. 185.11 Funds received by municipalities, deposit in retirement trust fund.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter, all state and other funds received by any municipality under the provisions of this chapter shall be deposited by the municipality immediately, and under no circumstances more than 5 days after receipt, with the board of trustees. In lieu thereof, the municipality may provide authorization to the division for the direct payment of the premium tax to the board of trustees. The board shall deposit such moneys in the Municipal Police Officers' Retirement Trust Fund immediately, and under no circumstances more than 5 days after receipt. Employee contributions, however, which are withheld by the employer on behalf of an employee member shall be deposited immediately after each pay period with the board of trustees of the municipal police officers' retirement trust fund. Employer contributions shall be deposited at least quarterly. History.--s. 8, ch. 28230, 1953; s. 2, ch. 61-119; s. 9, ch. 86-42; s. 51, ch. 99-1. 185.12 Payment of excise tax credit on similar state excise or license tax.--The tax herein authorized shall in nowise be additional to the similar state excise or license tax imposed by part http://www.flsenate.gov/Statutes/index.cfm?p=2&App -- mode=Display -- Statute& URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 13 of 27 IV, chapter 624, but the payor of the tax hereby authorized shall receive credit therefor on his or her state excise or license tax and the balance of said state excise or license tax shall be paid to the Department of Revenue as provided by law. History,--s. 9, ch. 28230, 1953; s. 3, ch. 61-85; ss. 13, 35, ch. 69-106; s. 10, ch. 86-42; s. 945, ch. 95-147; s. 52, ch. 99-1. 185.13 Failure of insurer to comply with chapter; penalty.--If any insurance company, corporation or other insurer fails to comply with the provisions of this chapter, on or before March 1 in each year as herein provided, the certificate of authority issued to said insurance company, corporation or other insurer to transact business in this state may be canceled and revoked by the Office of Insurance Regulation of the Financial Services Commission, and it is unlawful for any such insurance company, corporation or other insurer to transact any business thereafter in this state unless such insurance company, corporation or other insurer shall be granted a new certificate of authority to transact business in this state, in compliance with provisions of law authorizing such certificate of authority to be issued. The division shall be responsible for notifying the Office of Insurance Regulation regarding any such failure to comply. History.--s. 10, ch. 28230, 1953; ss. 13, 35, ch. 69-106; s. 53, ch. 99-1; s. 166, ch. 2003-261. 185.16 Requirements for retirement.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter, any police officer who completes 10 or more years of creditable service as a police officer and attains age 55, or completes 25 years of creditable service as a police officer and attains age 52, and for such period has been a member of the retirement fund is eligible for normal retirement benefits. Normal retirement under the plan is retirement from the service of the city on or after the normal retirement date. In such event, for chapter plans and local law plans, payment of retirement income will be governed by the following provisions of this section: (1) The normal retirement date of each police officer will be the first day of the month coincident with or next following the date on which the police officer has completed 10 or more years of creditable service and attained age 55 or completed 25 years of creditable service and attained age 52. (2) The amount of the monthly retirement income payable to a police officer who retires on or after his or her normal retirement date shall be an amount equal to the number of the police officer's years of credited service multiplied by 2 percent of his or her average final compensation. However, if current state contributions pursuant to this chapter are not adequate to fund the additional benefits to meet the minimum requirements in this chapter, only increment increases shall be required as state moneys are adequate to provide. Such increments shall be provided as state moneys become available, (3) The monthly retirement income payable in the event of normal retirement will be payable on the first day of each month. The first payment will be made on the police officer's normal retirement date, or on the first day of the month coincident with or next following the police officer's actual retirement, if later, and the last payment will be the payment due next preceding the police officer's death; except that, in the event the police officer dies after retirement but before receiving retirement benefits for a period of 10 years, the same monthly benefit will be paid to the beneficiary (or beneficiaries) as designated by the police officer for the balance of such 1 O-year period, or, if no beneficiary is designated, to the estate of the police officer, as provided in s. 185.162. If a police officer continues in the service of the city beyond his or her normal retirement date and dies prior to the date of actual retirement, without an option made pursuant to s. 185.161 being in effect, monthly retirement income payments will be made for a period of 10 years to a beneficiary (or beneficiaries) designated by the police officer as if the police officer had retired on the date on which death occurred, or, if no beneficiary is designated, to the estate of the police officer, as provided in s. 185.162. (4) Early retirement under the plan is retirement from the service of the city, with the consent of the city, as of the first day of any calendar month which is prior to the police officer's normal retirement date but subsequent to the date as of which the police officer has both attained the http://www.flsenate.gov/Statutes/index.cfin?p=2&App - mode=Display - Statute&URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 14 of27 age of 50 years and completed 10 years of contributing service. In the event of early retirement, payment of retirement income will be governed as follows: (a) The early retirement date shall be the first day of the calendar month coincident with or immediately following the date a police officer retires from the service of the city under the provisions of this section prior to his or her normal retirement date. (b) The monthly amount of retirement income payable to a police officer who retires prior to his or her normal retirement date under the provisions of this section shall be an amount computed as described in subsection (2), taking into account his or her credited service to the date of actual retirement and his or her final monthly compensation as of such date, such amount of retirement income to be actuarially reduced to take into account the police officer's younger age and the earlier commencement of retirement income payments. In no event shall the early retirement reduction exceed 3 percent for each year by which the member's age at retirement preceded the member's normal retirement age, as provided in subsection (1). (c) The retirement income payable in the event of early retirement will be payable on the first day of each month. The first payment will be made on the police officer's early retirement date and the last payment will be the payment due next preceding the retired police officer's death; except that, in the event the police officer dies before receiving retirement benefits for a period of 10 years, the same monthly benefit will be paid to the beneficiary designated by the police officer for the balance of such 10-year period, or, if no designated beneficiary is surviving, the same monthly benefit for the balance of such 10-year period shall be payable as provided in s. 185.162. History.--s. 14, ch. 28230,1953; s. 4, ch. 29825, 1955; s. 6, ch. 59-320; s. 5, ch. 61-85; s. 2, ch. 63-196; s. 1, ch. 70-128; s. 12, ch. 86-42; s. 946, ch. 95-147; s. 56, ch. 99-1. 185,161 Optional forms of retirement income.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (1 )(a) In lieu of the amount and form of retirement income payable in the event of normal or early retirement as specified in s, 185.16, a police officer, upon written request to the board of trustees and subject to the approval of the board of trustees, may elect to receive a retirement income or benefit of equivalent actuarial value payable in accordance with one of the following options: 1. A retirement income of larger monthly amount, payable to the police officer for his or her lifetime only. 2. A retirement income of a modified monthly amount, payable to the police officer during the joint lifetime of the police officer and a joint pensioner designated by the police officer, and following the death of either of them, 100 percent, 75 percent, 662/3 percent, or 50 percent of such monthly amount payable to the survivor for the lifetime of the survivor. 3. Such other amount and form of retirement payments or benefit as, in the opinion of the board of trustees, will best meet the circumstances of the retiring police officer. (b) The police officer upon electing any option of this section will designate the joint pensioner or beneficiary (or beneficiaries) to receive the benefit, if any, payable under the plan in the event of the police officer'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 approval by the pension committee. Such designation will name a joint pensioner or one or more primary beneficiaries where applicable. If a police officer has elected an option with a joint pensioner or beneficiary and his or her retirement income benefits have commenced, he or she may thereafter change the designated joint pensioner or beneficiary but only if the board of trustees consents to such change and if the joint pensioner last previously designated by the police officer is alive when he or she files with the board of trustees a request for such change. The consent of a police officer's joint pensioner or beneficiary to any such change shall not be required. The board of trustees may request such evidence of the good health of the joint pensioner that is being removed as it may require and the amount of the retirement income payable to the police officer upon the http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&URL=ChO... 7/912004 Statutes & Constitution :View Statutes: flsenate.gov Page 15 of27 designation of a new joint pensioner shall be actuarially redetermined taking into account the ages and sex of the former joint pensioner, the new joint pensioner, and the police officer. Each such designation will be made in writing on a form prepared by the board of trustees, and on completion will be filed with the board of trustees. In the event that no designated beneficiary survives the police officer, such benefits as are payable in the event of the death of the police officer subsequent to his or her retirement shall be paid as provided in s. 185.162. (2) Retirement income payments shall be made under the option elected in accordance with the provisions of this section and shall be subject to the following limitations: (a) If a police officer dies prior to his or her normal retirement date or early retirement date, whichever first occurs, no benefit will be payable under the option to any person, but the benefits, if any, will be determined under s. 185.21. (b) If the designated beneficiary (or beneficiaries) or joint pensioner dies before the police officer's retirement under the plan, the option elected will be canceled automatically and a retirement income of the normal form and amount will be payable to the police officer upon his or her retirement as if the election had not been made, unless a new election is made in accordance with the provisions of this section or a new beneficiary is designated by the police officer prior to his or her retirement and within 90 days after the death of the beneficiary. (c) If both the retired police officer and the designated beneficiary (or beneficiaries) die before the full payment has been effected under any option providing for payments for a period certain and life thereafter, made pursuant to the provisions of subparagraph (1 )(a)3., the board of trustees may, in its discretion, direct that the commuted value of the remaining payments be paid in a lump sum and in accordance with s. 185.162. (d) If a police officer continues beyond his or her normal retirement date pursuant to the provisions of s. 185.16(1) and dies prior to actual retirement and while an option made pursuant to the provisions of this section is in effect, monthly retirement income payments will be made, or a retirement benefit will be paid, under the option to a beneficiary (or beneficiaries) designated by the police officer in the amount or amounts computed as if the police officer had retired under the option on the date on which death occurred. (3) No police officer may make any change in his or her retirement option after the date of cashing or depositing his or her first retirement check. History.--s. 7, ch. 59-320; s. 13, ch. 86-42; s. 947, ch. 95-147; s. 57, ch. 99-1. 185,162 Beneficiaries.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (1) Each police officer may, on a form, provided for that purpose, signed and filed with the board of trustees, designate a choice of one or more persons, named sequentially or jointly, as his or her beneficiary (or beneficiaries) to receive the benefit, if any, which may be payable in the event of the police officer's death, and each designation may be revoked by such police officer by signing and filing with the board of trustees a new designation or beneficiary form. (2) If no beneficiary is named in the manner provided by subsection (1), or if no beneficiary designated by the member survives him or her, the death benefit, if any, which may be payable under the plan with respect to such deceased police officer shall be paid by the board of trustees to the estate of such deceased police officer, provided that in any of such cases the board of trustees, in its discretion, may direct that the commuted value of the remaining monthly income payments be paid in a lump sum. Any payment made to any person pursuant to this subsection shall operate as a complete discharge of all obligations under the plan with regard to such deceased police officer and shall not be subject to review by anyone, but shall be final, binding and conclusive on all persons ever interested hereunder. (3) Notwithstanding any other provision of law to the contrary, the surviving spouse of any pension participant member killed in the line of duty shall not lose survivor retirement benefits if the http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute& URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 16 of27 spouse remarries. The surviving spouse of such deceased member whose benefit terminated because of remarriage shall have the benefit reinstated as of July 1, 1994, at an amount that would have been payable had such benefit not been terminated. History.--s. 7, ch. 59-320; s. 5, ch. 94-171; s. 1459, ch. 95-147; s. 58, ch. 99-1. 185.18 Disability retirement.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (1) A police officer having 10 or more years of credited service, or a police officer who becomes totally and permanently disabled in the line of duty, regardless of length of service, may retire from the service of the city under the plan if he or she becomes totally and permanently disabled as defined in subsection (2) by reason of any cause other than a cause set out in subsection (3) on or after the effective date of the plan. Such retirement shall herein be referred to as disability retirement. (2) A police officer will be considered totally disabled if, in the opinion of the board of trustees, he or she is wholly prevented from rendering useful and efficient service as a police officer; and a police officer will be considered permanently disabled if, in the opinion of the board of trustees, such police officer is likely to remain so disabled continuously and permanently from a cause other than as specified in subsection (3). (3) A police officer will not be entitled to receive any disability retirement income if the disability is a result of: (a) Excessive and habitual use by the police officer of drugs, intoxicants, or narcotics; (b) Injury or disease sustained by the police officer while willfully and illegally participating in fights, riots, civil insurrections or while committing a crime; (c) Injury or disease sustained by the police officer while serving in any armed forces; (d) Injury or disease sustained by the police officer after employment has terminated; (e) Injury or disease sustained by the police officer while working for anyone other than the city and arising out of such employment. (4) No police officer shall be permitted to retire under the provisions of this section until examined by a duly qualified physician or surgeon, to be selected by the board of trustees for that purpose, and is found to be disabled in the degree and in the manner specified in this section. Any police officer retiring under this section may be examined periodically by a duly qualified physician or surgeon or board of physicians and surgeons to be selected by the board of trustees for that purpose, to determine if such disability has ceased to exist. (5) The benefit payable to a police officer who retires from the service of the city with a total and permanent disability as a result of a disability is the monthly income payable for 10 years certain and life for which, if the police officer's disability occurred in the line of duty, his or her monthly benefit shall be the accrued retirement benefit, but shall not be less than 42 percent of his or her average monthly compensation as of the police officer's disability retirement date. If after 10 years of service the disability is other than in the line of duty, the police officer's monthly benefit shall be the accrued normal retirement benefit, but shall not be less than 25 percent of his or her average monthly compensation as of the police officer's disability retirement date. (6) The monthly retirement income to which a police officer is entitled in the event of his or her disability retirement shall be payable on the first day of the first month after the board of trustees determines such entitlement. However, the monthly retirement income shall be payable as of the date the board determines such entitlement, and any portion due for a partial month shall be paid together with the first payment. The last payment will be, if the police officer recovers from the disability, the payment due next preceding the date of such recovery or, if the police officer dies http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Disp1ay - Statute&URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 17 of27 without recovering from his or her disability, the payment due next preceding death or the 120th monthly payment, whichever is later. In lieu of the benefit payment as provided in this subsection, a police officer may select an optional form as provided in s. 185.161. Any monthly retirement income payments due after the death of a disabled police officer shall be paid to the police officer's designated beneficiary (or beneficiaries) as provided in ss, 185.162 and 185.21. (7) If the board of trustees finds that a police officer who is receiving a disability retirement income is no longer disabled, as provided herein, the board of trustees shall direct that the disability retirement income be discontinued. Recovery from disability as used herein shall mean the ability of the police officer to render useful and efficient service as a police officer. (8) If the police officer recovers from disability and reenters the service of the city as a police officer, his or her service will be deemed to have been continuous, but the period beginning with the first month for which the police officer received a disability retirement income payment and ending with the date he or she reentered the service of the city may not be considered as credited service for the purposes of the plan. History.us. 16, ch. 28230, 1953; s. 6, ch. 59-320; s. 6, ch. 61-85; s. 2, ch. 61-119; s. 2, ch. 70-128; s. 14, ch. 86-42; s. 948, ch. 95-147; s. 59, ch. 99-1. 185,185 False, misleading, or fraudulent statements made to obtain public retirement benefits prohibited; penalty,-- (1) It is unlawful for a person to willfully and knowingly make, or cause to be made, or to assist, conspire with, or urge another to make, or cause to be made, any false, fraudulent, or misleading oral or written statement or withhold or conceal material information to obtain any benefit available under a retirement plan receiving funding under this chapter. (2)(a) A person who violates subsection (1) commits a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083. (b) In addition to any applicable criminal penalty, upon conviction for a violation described in subsection (1), a participant or beneficiary of a pension plan receiving funding under this chapter may, in the discretion of the board of trustees, be required to forfeit the right to receive any or all benefits to which the person would otherwise be entitled under this chapter. For purposes of this paragraph, "conviction" means a determination of guilt that is the result of a plea or trial, regardless of whether adjudication is withheld. History.us. 60, ch. 99-1. 185,19 Separation from municipal service; refunds.uFor any municipality, chapter plan, local law municipality, or local law plan under this chapter: (1) If any police officer leaves the service of the municipality before accumulating aggregate time of 10 years toward retirement and before being eligible to retire under the provisions of this chapter, such police officer shall be entitled to a refund of all of his or her contributions made to the municipal police officers' retirement trust fund without interest, less any benefits paid to him or her. (2) If any police officer who has been in the service of the municipality for at least 10 years elects to leave his or her accrued contributions, if contributions are required, in the municipal police officers' retirement trust fund, such police officer upon attaining age 50 years or more may retire at the actuarial equivalent of the amount of such retirement income otherwise payable to him or her, as provided in s. 185.16(4), or, upon attaining age 55 years, may retire as provided in s. 185.16(2). History. us. 17, ch. 28230,1953; s. 6, ch. 59-320; s. 7, ch. 61-85; s. 2, ch. 61-119; s. 949, ch. 95- 147; s. 61, ch. 99-1. http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Disp1ay - Statute&URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 18 of27 185,191 Lump-sum payment of small retirement income.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter, notwithstanding any provision of the plan to the contrary, if the monthly retirement income payable to any person entitled to benefits hereunder is less than $100 or if the single-sum value of the accrued retirement income is less than $2,500 as of the date of retirement or termination of service, whichever is applicable, the board of trustees, in the exercise of its discretion, may specify that the actuarial equivalent of such retirement income be paid in a lump sum. History,--s. 7, ch. 59-320; s. 62, ch. 99-1. 185,21 Death prior to retirement; refunds of contributions or payment of death benefits.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (1) If a police officer dies before being eligible to retire, the heirs, legatees, beneficiaries, or personal representatives of such deceased police officer shall be entitled to a refund of 100 percent, without interest, of the contributions made to the municipal police officers' retirement trust fund by such deceased police officer or, in the event an annuity or life insurance contract has been purchased by the board on such police officer, then to the death benefits available under such life insurance or annuity contract, subject to the limitations on such death benefits set forth in s. 185.061 whichever amount is greater. (2) If a police officer having at least 10 years of credited service dies prior to retirement, his or her beneficiary is entitled to the benefits otherwise payable to the police officer at early or normal retirement age. In the event that a death benefit paid by a life insurance company exceeds the limit set forth in s. 185.061 (6), the excess of the death benefit over the limit shall be paid to the municipal police officers' retirement trust fund. However, death benefits as provided pursuant to s. 112.19 or any other state or federal law shall not be included in the calculation of death or retirement benefits provided under this chapter. History,--s. 19, ch. 28230, 1953; s. 6, ch. 29825, 1955; s. 3, ch. 57-118; s. 6, ch. 59-320; s. 2, ch. 61-119; s. 15, ch. 86-42; s. 6, ch. 90-138; s. 950, ch. 95-147; s. 63, ch. 99-1. 185,221 Annual report to Division of Retirement; actuarial valuations.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter, the board of trustees for every chapter plan and local law plan shall submit the following reports to the division: (1) With respect to chapter plans: (a) Each year by February 1, the chair or secretary of each municipal police officers' retirement trust fund operating a chapter plan shall file a report with the division which contains: 1. A statement of whether in fact the municipality is within the provisions of s. 185.03. 2. An independent audit by a certified public accountant if the fund has $250,000 or more in assets, or a certified statement of accounting if the fund has less than $250,000 in assets, for the most recent plan year, showing a detailed listing of assets and methods used to value them and a statement of all income and disbursements during the year. Such income and disbursements shall be reconciled with the assets at the beginning and end of the year. 3. A statistical exhibit showing the total number of police officers on the force of the municipality, the number included in the retirement plan and the number ineligible classified according to the reasons for their being ineligible, and the number of disabled and retired police officers and their beneficiaries receiving pension payments and the amounts of annual retirement income or pension payments being received by them. 4. A statement of the amount the municipality, or other income source, has contributed to the retirement plan for the most recent plan year and the amount the municipality will contribute to the retirement plan for the current plan year. http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 19 of27 5. If any benefits are insured with a commercial insurance company, the report shall include a statement of the relationship of the insured benefits to the benefits provided by this chapter. This report shall also contain information about the insurer, basis of premium rates and mortality table, interest rate and method used in valuing retirement benefits. (b) In addition to annual reports provided under paragraph (a), by February 1 of each triennial year, an actuarial valuation of the chapter plan must be made by the division at least once every 3 years, as provided in s. 112.63, commencing 3 years from the last actuarial valuation of the plan or system for existing plans, or commencing 3 years from the issuance of the initial actuarial impact statement submitted under s. 112.63 for newly created plans. To that end, the chair of the board of trustees for each municipal police officers' retirement trust fund operating under a chapter plan shall report to the division such data as the division needs to complete an actuarial valuation of each fund. The forms for each municipality shall be supplied by the division. The expense of the actuarial valuation shall be borne by the municipal police officers' retirement trust fund established by s. 185.10. The requirements of this section are supplemental to the actuarial valuations necessary to comply with ss. 218.321 and 218.39. (2) With respect to local law plans: (a) Each year, on or before March 15, the trustees of the retirement plan shall submit the following information to the division in order for the retirement plan of such municipality to receive a share of the state funds for the then-current calendar year: 1. A certified copy of each and every instrument constituting or evidencing the plan. This includes the formal plan, including all amendments, the trust agreement, copies of all insurance contracts, and formal announcement materials. 2. An independent audit by a certified public accountant if the fund has $250,000 or more in assets, or a certified statement of accounting if the fund has less than $250,000 in assets, for the most recent plan year, showing a detailed listing of assets and a statement of all income and disbursements during the year. Such income and disbursements must be reconciled with the assets at the beginning and end of the year. 3. A certified statement listing the investments of the plan and a description of the methods used in valuing the investments. 4. A statistical exhibit showing the total number of police officers, the number included in the plan, and the number ineligible classified according to the reasons for their being ineligible, and the number of disabled and retired police officers and their beneficiaries receiving pension payments and the amounts of annual retirement income or pension payments being received by them. 5. A certified statement describing the methods, factors, and actuarial assumptions used in determining the cost. 6. A certified statement by an enrolled actuary showing the results of the latest actuarial valuation of the plan and a copy of the detailed worksheets showing the computations used in arriving at the results. 7. A statement of the amount the municipality, or other income source, has contributed toward the plan for the most recent plan year and will contribute toward the plan for the current plan year. When any of the items required hereunder is identical to the corresponding item submitted for a previous year, it is not necessary for the trustees to submit duplicate information if they make reference to the item in the previous year's report. (b) In addition to annual reports provided under paragraph (a), an actuarial valuation of the retirement plan must be made at least once every 3 years, as provided in s. 112.63, commencing 3 years from the last actuarial valuation of the plan or system for existing plans, or commencing 3 http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 20 of27 years from issuance of the initial actuarial impact statement submitted under s. 112.63 for newly created plans. Such valuation shall be prepared by an enrolled actuary, subject to the following conditions: 1. The assets shall be valued as provided in s. 112.625(7). 2. The cost of the actuarial valuation must be paid by the individual police officer's retirement trust fund or by the sponsoring municipality. 3. A report of the valuation, including actuarial assumptions and type and basis of funding, shall be made to the division within 3 months after the date of the valuation. If any benefits are insured with a commercial insurance company, the report must include a statement of the relationship of the retirement plan benefits to the insured benefits, the name of the insurer, the basis of premium rates, and the mortality table, interest rate, and method used in valuing the retirement benefits. History..-s. 7, ch. 59-320; s. 2, ch. 61-119; ss. 13, 35, ch. 69-106; s. 16, ch. 86-42; s. 44, ch. 93- 193; s. 951, ch. 95-147; s. 8, ch. 96-324; s. 64, ch. 99-1; s. 43, ch. 2001-266. 185,23 Duties of Division of Retirement; rulemaking authority; investments by State Board of Administration.-- (1) The division shall be responsible for the daily oversight and monitoring for actuarial soundness of the municipal police officers' retirement plans, whether chapter or local law plans, established under this chapter, for receiving and holding the premium tax moneys collected under this chapter, and, upon determining compliance with the provisions of this chapter, for disbursing those moneys to the municipal police officers' retirement plans. The funds to pay the expenses for such administration shall be annually appropriated from the interest and investment income earned on moneys deposited in the trust fund. (2) The division has authority to adopt rules pursuant to ss. 120.536(1) and 120.54 to implement the provisions of this chapter. (3) The State Board of Administration shall invest and reinvest the moneys in the trust fund in accordance with ss. 215.44-215.53. Costs incurred by the board in carrying out the provisions of this section shall be deducted from the interest and investment income accruing to the trust fund. History,--s. 20, ch. 28230, 1953; ss. 13, 35, ch. 69-106; s. 45, ch. 93-193; s. 7, ch. 95-250; s. 13, ch. 98-200; s. 65, ch. 99-1; s. 30, ch. 2000-151. 185,25 Exemption from tax and execution.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter, the pensions, annuities, or any other benefits accrued or accruing to any person under any municipality, chapter plan, local law municipality, or local law plan under the provisions of this chapter and the accumulated contributions and the cash securities in the funds created under this chapter are exempted from any state, county, or municipal tax of the state and shall not be subject to execution or attachment or to any legal process whatsoever and shall be unassignable. History,--s. 21, ch. 28230, 1953; s. 66, ch. 99-1. 185.30 Depository for retirement fund.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter, all funds of the municipal police officers' retirement trust fund of any municipality, chapter plan, local law municipality, or local law plan under this chapter may be deposited by the board of trustees with the treasurer of the municipality acting in a ministerial capacity only, who shall be liable in the same manner and to the same extent as he or she is liable for the safekeeping of funds for the municipality. However, any funds so deposited with the treasurer of the municipality shall be kept in a separate fund by the municipal treasurer or clearly identified as such funds of the municipal police officers' retirement trust fund. In lieu thereof, the board of trustees shall deposit the funds of the municipal police officers' retirement trust fund in a qualified public depository as defined in s. 280.02, which depository with regard to such funds shall conform to and be bound by all of the http://www.flsenate.gov/Statutes/index.cfin?p=2&App - mode=Display - Statute&URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov provisions of chapter 280. Page 21 of27 History,us. 26, ch. 28230,1953; s. 2, ch. 61-119; s. 19, ch. 86-42; s. 3, ch. 88-185; s. 954, ch. 95- 147; s. 69, ch. 99-1. 185.31 Municipalities and boards independent of other municipalities and boards and of each other,--In the enforcement and interpretation of the provisions of this chapter for any municipality, chapter plan, local law municipality, or local law plan under this chapter, each municipality shall be independent of any other municipality, and the board of trustees of the municipal police officers' retirement trust fund of each municipality shall function for the municipality which they are to serve as trustees. Each board of trustees shall be independent of each municipality for which it serves as board of trustees to the extent required to accomplish the intent, requirements, and responsibilities provided for in this chapter. History.--s. 27, ch. 28230, 1953; s. 2, ch. 61-119; s. 20, ch. 86-42; s. 70, ch. 99-1. 185.34 Disability in line of duty.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter, any condition or impairment of health of any and all police officers employed in the state caused by tuberculosis, hypertension, heart disease, or hardening of the arteries, resulting in total or partial disability or death, shall be presumed to be accidental and suffered in line of duty unless the contrary be shown by competent evidence. Any condition or impairment of health caused directly or proximately by exposure, which exposure occurred in the active performance of duty at some definite time or place without willful negligence on the part of the police officer, resulting in total or partial disability, shall be presumed to be accidental and suffered in the line of duty, provided that such police officer shall have successfully passed a physical examination upon entering such service, which physical examination including electrocardiogram failed to reveal any evidence of such condition, and, further, that such presumption shall not apply to benefits payable under or granted in a policy of life insurance or disability insurance. This section shall be applicable to all police officers only with reference to pension and retirement benefits under this chapter. History,--ss. 1, 2, ch. 57-340; s. 1, ch. 67-580; s. 62, ch. 79-40; s. 21, ch. 86-42; s. 72, ch. 99-1. 185.341 Discrimination in benefit formula prohibited; restrictions regarding designation of joint annuitants,--For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (1) No plan shall discriminate in its benefit formula based on color, national origin, sex, or marital status. (2)(a) If a plan offers a joint annuitant option and the member selects such option, or if a plan specifies that the member's spouse is to receive the benefits that continue to be payable upon the death of the member, then, in both of these cases, after retirement benefits have commenced, a retired member may change the designation of joint annuitant or beneficiary only twice. (b) Any retired member who desires to change the joint annuitant or beneficiary shall file with the board of trustees of his or her plan a notarized notice of such change either by registered letter or on such form as is provided by the administrator of the plan. Upon receipt of a completed change of joint annuitant form or such other notice, the board of trustees shall adjust the member's monthly benefit by the application of actuarial tables and calculations developed to ensure that the benefit paid is the actuarial equivalent of the present value of the member's current benefit. Nothing herein shall preclude a plan from actuarially adjusting benefits or offering options based upon sex, age, early retirement, or disability. (3) Eligibility for coverage under the plan must be based upon length of service, or attained age, or both, and benefits must be determined by a nondiscriminatory formula based upon: (a) Length of service and compensation; or (b) Length of service. http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Disp1ay - Statute&URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov History.--s. 22, ch. 86-42; s. 955, ch. 95-147; s. 73, ch. 99-1. Page 22 of27 185.35 Municipalities having their own pension plans for police officers.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter, in order for municipalities with their own pension plans for police officers, or for police officers and firefighters where included, to participate in the distribution of the tax fund established pursuant to s, 185.08, local law plans must meet the minimum benefits and minimum standards set forth in this chapter: (1) PREMIUM TAX INCOME.--If a municipality has a pension plan for police officers, or for police officers and firefighters where included, which, in the opinion of the division, meets the minimum benefits and minimum standards set forth in this chapter, the board of trustees of the pension plan, as approved by a majority of police officers of the municipality, may: (a) Place the income from the premium tax in s. 185.08 in such pension plan for the sole and exclusive use of its police officers, or its police officers and firefighters where included, where it shall become an integral part of that pension plan and shall be used to pay extra benefits to the police officers included in that pension plan; or (b) May place the income from the premium tax in s. 185.08 in a separate supplemental plan to pay extra benefits to the police officers, or police officers and firefighters where included, participating in such separate supplemental plan. The premium tax provided by this chapter shall in all cases be used in its entirety to provide extra benefits to police officers, or to police officers and firefighters, where included. However, local law plans in effect on October 1, 1998, shall be required to comply with the minimum benefit provisions of this chapter only to the extent that additional premium tax revenues become available to incrementally fund the cost of such compliance as provided in s. 185.16(2). When a plan is in compliance with such minimum benefit provisions, as subsequent additional tax revenues become available, they shall be used to provide extra benefits. For the purpose of this chapter, "additional premium tax revenues" means revenues received by a municipality pursuant to s. 185.10 that exceed the amount received for calendar year 1997 and the term "extra benefits" means benefits in addition to or greater than those provided to general employees of the municipality. Local law plans created by special act before May 23, 1939, shall be deemed to comply with this chapter. (2) ADOPTION OR REVISION OF A LOCAL LAW PLAN.--No retirement plan or amendment to a retirement plan shall be proposed for adoption unless the proposed plan or amendment contains an actuarial estimate of the costs involved. No such proposed plan or proposed plan change shall be adopted without the approval of the municipality or, where permitted, the Legislature. Copies of the proposed plan or proposed plan change and the actuarial impact statement of the proposed plan or proposed plan change shall be furnished to the division prior to the last public hearing thereon. Such statement shall also indicate whether the proposed plan or proposed plan change is in compliance with s. 14, Art. X of the State Constitution and those provisions of part VII of chapter 112 which are not expressly provided in this chapter. Notwithstanding any other provision, only those local law plans created by special act of legislation prior to May 23, 1939, shall be deemed to meet the minimum benefits and minimum standards only in this chapter. (3) Notwithstanding any other provision, with respect to any supplemental plan municipality: (a) Section 185.02(4)(a) shall not apply, and a local law plan and a supplemental plan may continue to use their definition of compensation or salary in existence on the effective date of this act. (b) Section 185.05(1 )(b) shall not apply, and a local law plan and a supplemental plan shall continue to be administered by a board or boards of trustees numbered, constituted, and selected as the board or boards were numbered, constituted, and selected on December 1, 2000. (c) The election set forth in paragraph (1 )(b) shall be deemed to have been made. (4) The retirement plan setting forth the benefits and the trust agreement, if any, covering the http://www .f1senate.gov/Statutes/index.cfm?p=2&App _mode=Display - Statute& URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 230[27 duties and responsibilities of the trustees and the regulations of the investment of funds must be in writing and copies made available to the participants and to the general public. History,--s. 7, ch. 59-320: s. 2, ch. 61-119; s. 3, ch. 63-196; ss. 13,35, ch. 69-106; s. 23, ch. 86-42; s. 47, ch. 93-193; s. 956, ch. 95-147; s. 74, ch. 99-1; s. 7, ch. 2002-66. 185,37 Termination of plan and distribution of fund.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter, the plan may be terminated by the municipality. Upon termination of the plan by the municipality for any reason, or because of a transfer, merger, or consolidation of governmental units, services, or functions as provided in chapter 121, or upon written notice to the board of trustees by the municipality that contributions under the plan are being permanently discontinued, the rights of all employees to benefits accrued to the date of such termination or discontinuance and the amounts credited to the employees' accounts are nonforfeitable. The fund shall be apportioned and distributed in accordance with the following procedures: (1) The board of trustees shall determine the date of distribution and the asset value to be distributed, after taking into account the expenses of such distribution. (2) The board of trustees shall determine the method of distribution of the asset value, that is, whether distribution shall be by payment in cash, by the maintenance of another or substituted trust fund, by the purchase of insured annuities, or otherwise, for each police officer entitled to benefits under the plan, as specified in subsection (3). (3) The board of trustees shall apportion the asset value as of the date of termination in the manner set forth in this subsection, on the basis that the amount required to provide any given retirement income shall mean the actuarially computed single-sum value of such retirement income, except that if the method of distribution determined under subsection (2) involves the purchase of an insured annuity, the amount required to provide the given retirement income shall mean the single premium payable for such annuity. (a) Apportionment shall first be made in respect of each retired police officer receiving a retirement income hereunder on such date, each person receiving a retirement income on such date on account of a retired (but since deceased) police officer, and each police officer who has, by such date, become eligible for normal retirement but has not yet retired, in the amount required to provide such retirement income, provided that, if such asset value is less than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such asset value. (b) If there is any asset value remaining after the apportionment under paragraph (a), apportionment shall next be made in respect of each police officer in the service of the municipality on such date who has completed at least 10 years of credited service, in the municipal police officers' retirement trust fund for at least 10 years, and who is not entitled to an apportionment under paragraph (a), in the amount required to provide the actuarial equivalent of the accrued normal retirement income, based on the police officer's credited service and earnings to such date, and each former participant then entitled to a benefit under the provisions of s. 185.19 who has not by such date reached his or her normal retirement date, in the amount required to provide the actuarial equivalent of the accrued normal retirement income to which he or she is entitled under s. 185.19, provided that, if such remaining asset value is less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. (c) If there is an asset value after the apportionments under paragraphs (a) and (b), apportionment shall lastly be made in respect of each police officer in the service of the municipality on such date who is not entitled to an apportionment under paragraphs (a) and (b) in the amount equal to the police officer's total contributions to the plan to date of termination, provided that, if such remaining asset value is less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&URL=ChO... 7/912004 Statutes & Constitution :View Statutes: flsenate.gov Page 24 of 27 (d) In the event that there is asset value remaining after the full apportionment specified in paragraphs (a), (b), and (c), such excess shall be returned to the municipality, less return to the state of the state's contributions, provided that, if the excess is less than the total contributions made by the municipality and the state to date of termination of the plan, such excess shall be divided proportionately to the total contributions made by the municipality and the state. (4) The board of trustees shall distribute, in accordance with the manner of distribution determined under subsection (2), the amounts apportioned under subsection (3). If, after a period of 24 months after the date on which the plan terminated or the date on which the board received written notice that the contributions thereunder were being permanently discontinued, the municipality or the board of trustees of the municipal police officers' retirement trust fund affected has not complied with all the provisions in this section, the division shall effect the termination of the fund in accordance with this section. History,--s. 8, ch. 61-85; s. 2, ch. 61-119; s. 4, ch. 63-196; s. 24, ch. 86-42; s. 48, ch. 93-193; s. 957, ch. 95-147; s. 76, ch. 99-1. 185.38 Transfer to another state retirement system; benefits payable,--For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (1) Any police officer who has a vested right to benefits under a pension plan created pursuant to the provisions of this chapter and who elects to participate in another state retirement system may not receive a benefit under the provisions of the latter retirement system for any year's service for which benefits are paid under the provisions of the pension plan created pursuant to this chapter. (2) When every active participant in any pension plan created pursuant to this chapter elects to transfer to another state retirement system, the pension plan created pursuant to this chapter shall be terminated and the assets distributed in accordance with s. 185.37. If some participants in a pension plan created pursuant to this chapter elect to transfer to another state retirement system and other participants elect to remain in the existing plan created pursuant to this chapter, the plan created pursuant to this chapter shall continue to receive state premium tax moneys until fully funded. if the plan is fully funded at a particular valuation date and not fully funded at a later valuation date, the plan shall resume receipt of state premium tax moneys until the plan is once again determined to be fully funded. "Fully funded" means that the present value of all benefits, accrued and projected, is less than the available assets and the present value of future member contributions and future plan sponsor contributions on an actuarial entry age cost funding basis. Effective May 31, 1998, for plans discussed herein, the plan shall remain in effect until the final benefit payment has been made to the last participant or beneficiary and shall then be terminated in accordance with s. 185.37. History,--s. 25, ch. 86-42; s. 77, ch. 99-1; s. 8, ch. 2002-66. 185,39 Applicability.--This act applies to all municipalities, chapter plans, local law municipalities, or local law plans presently existing or to be created pursuant to this chapter. Those plans presently existing pursuant to s. 185.35 and not in compliance with the provisions of this act must comply no later than December 31,1999. However, the plan sponsor of any plan established by special act of the Legislature shall have until July 1, 2000, to comply with the provisions of this act, except as otherwise provided in this act with regard to establishment and election of board members. The provisions of this act shall be construed to establish minimum standards and minimum benefit levels, and nothing contained in this act or in chapter 185 shall operate to reduce presently existing rights or benefits of any police officer, directly, indirectly, or otherwise. History.--s. 26, ch. 86-42; s. 78, ch. 99-1. 185,50 Retiree health insurance subsidy.--For any municipality, chapter plan, local law municipality, or local law plan under this chapter, under the broad grant of home rule powers under the Florida Constitution and chapter 166, municipalities have the authority to establish and administer locally funded health insurance subsidy programs. Pursuant thereto: http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute& URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 25 of27 (1) PURPOSE. --The purpose of this section is to allow municipalities the option to use premium tax moneys, as provided for under this chapter, to establish and administer health insurance subsidy programs which will provide a monthly subsidy payment to retired members of any municipal police officers' pension trust fund system or plan as provided under this chapter, or to beneficiaries who are spouses or financial dependents entitled to receive benefits under such a plan, in order to assist such retired members or beneficiaries in paying the costs of health insurance. (2) MUNICIPAL RETIREE HEALTH INSURANCE SUBSIDY TRUST FUNDS; ESTABLISHMENT AND TERMINATION.-- (a) Any municipality having a municipal police officers' pension trust fund system or plan as provided under this chapter may, in its discretion, establish by ordinance a trust fund to be known as the municipal police officers' retiree health insurance subsidy trust fund. This fund may be a separate account established for such purpose in the existing municipal police officers' pension fund, provided that all funds deposited in such account are segregated from, and not commingled with, pension funds or other public moneys and that the account otherwise conforms to the requirements of subsection (8). The trust fund shall be used to account for all moneys received and disbursed pursuant to this section. (b) Prior to the second reading of the ordinance before the municipal legislative body, an actuarial valuation must be performed by an enrolled actuary as defined in s. 185.02, and copies of the valuation and the proposed implementing ordinance shall be furnished to the division. (c) The subsidy program may, at the discretion of the municipal governing body, be permanently discontinued by municipal ordinance at any time, subject to the requirements of any applicable collective bargaining agreement, in the same manner and subject to the same conditions established for plan termination and fund distribution under s. 185.37. (3) FUNDING.--Trust funds established pursuant to this section shall be funded in the following manner: (a) By payment to the fund of an amount equivalent to one-half of the net increase over the previous tax year in the premium tax funds provided for in this chapter, said amount to be established in the implementing ordinance. (b) 8y no less than one-half of 1 percent of the base salary of each police officer, for so long as the police officer is employed and covered by a pension plan established pursuant to this chapter. The municipality, with approval of the board of trustees, may increase member contributions if needed to fund benefits greater than the minimums established in this section. (c) By payment by the municipality, on at least a quarterly basis, of whatever sum is determined necessary to maintain the actuarial soundness of the fund in accordance with s. 112.64. Such contributions and payments shall be submitted to the board of trustees of the police officers' pension trust fund, or the plan trustees in the case of local law plans established under s. 185.35, and deposited in the Municipal Police Officers' Retiree Health Insurance Subsidy Trust Fund, in the same manner and subject to the same time constraints as provided under s. 185.11. (4) ELIGIBILITY FOR RETIREE HEALTH INSURANCE SUBSIDY.--A person who has contributed to the Retiree Health Insurance Subsidy Trust Fund and retires under a municipal police officers' pension trust fund system or plan as provided under this chapter, including any local law plan as provided under s. 185.35, or a beneficiary who is a spouse or financial dependent entitled to receive benefits under such a plan, is eligible for health insurance subsidy payments provided under this section. However, the fund, with approval of the board of trustees and the municipality, may provide coverage to retirees and beneficiaries when the retirees have not contributed to the fund as provided in subsection (3). Payment of the retiree health insurance subsidy shall be made only after coverage for health insurance for the retiree or beneficiary has been certified in writing to the board of trustees of the municipal police officers' pension trust fund. (5) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--Beginning on the effective date established in http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=DisplaL Statute& URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov Page 26 of 27 the implementing ordinance, each eligible retiree, or beneficiary who is a spouse or financial dependent thereof, shall receive a monthly retiree health insurance subsidy payment equal to the aggregate number of years of service with the municipality, as defined in s, 185,02, completed at the time of retirement multiplied by an amount determined in the implementing ordinance, but no less than S3 for each year of service. Nothing herein shall be construed to restrict the plan sponsor from establishing, in the implementing ordinance, a cap of no less than 30 years upon the number of years' service for which credit will be given toward a health insurance subsidy or a maximum monthly subsidy amount. (6) PAYMENT OF RETIREE HEALTH INSURANCE SUBSIDY.--Beginning on the effective date established in the implementing ordinance, any monthly retiree health insurance subsidy amount due and payable under this section shall be paid to retired members, or their eligible beneficiaries, by the board of trustees of the police officers' pension trust fund, or the plan trustees in the case of local law plans established under s. 185,35, in the same manner as provided by s. 185.06(1)(c) for drafts upon the pension fund. (7) INVESTMENT OF THE TRUST FUND.--The trustees of the police officers' pension trust fund, or the plan trustees in the case of local law plans established under s. 185.35, are hereby authorized to invest and reinvest the funds of the Municipal Police Officers' Retiree Health Insurance Subsidy Trust Fund in the same manner and subject to the same conditions as apply hereunder to the investment of municipal police officers' pension funds under s. 185.06. (8) DEPOSIT OF PENSION FUNDS.--All funds of the health insurance subsidy fund may be deposited by the board of trustees with the treasurer of the municipality, acting in a ministerial capacity only, who shall be liable in the same manner and to the same extent as he or she is liable for the safekeeping of funds for the municipality. Any funds so deposited shall be segregated by said treasurer in a separate fund, clearly identified as funds of the health insurance subsidy fund. In lieu thereof, the board of trustees shall deposit the funds of the health insurance subsidy fund in a qualified public depository as defined in s. 280.02, which shall conform to and be bound by the provisions of chapter 280 with regard to such funds. In no case shall the funds of the health insurance subsidy fund be deposited in any financial institution, brokerage house trust company, or other entity that is not a public depository as provided by s. 280.02. (9) SEPARATION FROM SERVICE; REFUNDS.--Any police officer who terminates employment with a municipality having a Municipal Retiree Health Insurance Subsidy Trust Fund system or plan as provided under this section shall be entitled to a refund of all employee contributions he or she made to that trust fund, without interest, regardless of whether he or she has vested for purposes of retirement. Any police officer who has vested for purposes of retirement in the service of the municipality, and has contributed to the Municipal Police Officers' Retiree Health Insurance Subsidy Trust Fund for so long as he or she was eligible to make such contributions, may, in his or her discretion, elect to leave his or her accrued contributions in the fund, whereupon, such police officer shall, upon retiring and commencing to draw retirement benefits, receive a health insurance subsidy based upon his or her aggregate number of years of service with the municipality, as defined in s. 185.02. (10) ADMINISTRATION OF SYSTEM; ACTUARIAL VALUATIONS; AUDITS; RULES; ADMINISTRATIVE COSTS.--The board of trustees of the police officers' pension trust fund, or the plan trustees in the case of local law plans established under s. 185.35, shall be solely responsible for administering the health insurance subsidy trust fund. Pursuant thereto: (a) As part of its administrative duties, no less frequently than every 3 years, the board shall have an actuarial valuation of the municipal police officers' retiree health insurance subsidy trust fund prepared as provided in s. 112.63 by an enrolled actuary, covering the same reporting period or plan year used for the municipal police officers' pension plan, and shall submit a report of the valuation, including actuarial assumptions and type and basis of funding, to the division. (b) By February 1 of each year, the trustees shall file a report with the division, containing an independent audit by a certified public accountant if the fund has $250,000 or more in assets, or a certified statement of accounting if the fund has less than $250,000 in assets, for the most recent plan year, showing a detailed listing of assets and methods used to value them and a statement of all income and disbursements during the year. Such income and disbursements shall be reconciled http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&URL=ChO... 7/9/2004 Statutes & Constitution :View Statutes: flsenate.gov with the assets at the beginning of and end of the year. Page 27 of27 (c) The trustees may adopt such rules and regulations as are necessary for the effective and efficient administration of this section. (d) At the discretion of the plan sponsor, the cost of administration may be appropriated from the trust fund or paid directly by the plan sponsor. (11) BENEFITS.--Subsidy payments shall be payable under the municipal police officers' retiree health insurance subsidy program only to participants in the program or their beneficiaries. Such subsidy payments shall not be subject to assignment, execution, or attachment or to any legal process whatsoever, and shall be in addition to any other benefits to which eligible recipients are entitled under any workers' compensation law, pension law, collective bargaining agreement, municipal or county ordinance, or any other state or federal statute. (12) DISTRIBUTION OF PREMIUM TAXES; COMPLIANCE REQUIRED.--Premium tax dollars for which spending authority is granted under this section shall be distributed from the Police and Firefighters' Premium Tax Trust Fund and remitted annually to municipalities in the same manner as provided under this chapter for police officers' pension funds. Once a health insurance subsidy plan has been implemented by a municipality under this section, in order for the municipality to participate in the distribution of premium tax dollars authorized under this section, all provisions of this section, including state acceptance pursuant to part VII of chapter 112, shall be complied with, and said premium tax dollars may be withheld for noncompliance. History,--s. 2, ch. 92-51; s. 49, ch. 93-193; s. 14, ch. 94-259; s. 1460, ch. 95-147; s. 8, ch. 95-250; s. 80, ch. 99-1. 185.60 Optional participation.--A municipality may revoke its participation under this chapter by rescinding the legislative act, or ordinance which assesses and imposes taxes authorized in s. 185.08, and by furnishing a certified copy of such legislative act, or ordinance to the division. Thereafter, the municipality shall be prohibited from participating under this chapter, and shall not be eligible for future premium tax moneys. Premium tax moneys previously received shall continue to be used for the sole and exclusive benefit of police officers, or police officers and firefighters where included, and no amendment, legislative act, or ordinance shall be adopted which shall have the effect of reducing the then-vested accrued benefits of the police officers, retirees, or their beneficiaries. The municipality shall continue to furnish an annual report to the division as provided in s. 185.221. If the municipality subsequently terminates the defined benefit plan, they shall do so in compliance with the provisions of s. 185.37. History.--s. 82, ch. 99-1. Disclaimer: The information on this system is unverified. The journals or printed bills of the respective chambers shouid be consulted for official purposes. Copyright <!;J 2000-2004 State of Florida. http://www .flsenate.gov/Statutes/index.cfm?p=2&App _mode=Display -- Statute&URL=ChO... 7/9/2004 :statutes ði ConStItutIOn :Vlew Statutes :->2003->ChO112->Section 313 : flsenate.gov Page 1 of6 Select Year: 2003 §J The Florida Statutes Iilliù( Chapter 112 PUBLIC OFFICERS, EMPLOYEES, PUBLIC OFFICERS AND EMPLOYEES: AND RECORDS GENERAL PROVISIONS 112.313 Standards of conduct for public officers, employees of agendes, and local government attorneys." View Entire Chapter (1) DEFINITION.uAs used in this section, unless the context otherwise requires, the term "public officer" includes any person elected or appointed to hold office in any agency, including any person serving on an advisory body. (2) SOLICITATION OR ACCEPTANCE OF GIFTS, uNo public officer, employee of an agency, local government attorney, or candidate for nomination or election shall solicit or accept anything of value to the recipient, including a gift, loan, reward, promise of future employment, favor, or service, based upon any understanding that the vote, official action, or judgment of the public officer, employee, local government attorney, or candidate would be influenced thereby. (3) DOING BUSINESS WITH ONE'S AGENCY,..No employee of an agency acting in his or her official capacity as a purchasing agent, or public officer acting in his or her official capacity, shall either directly or indirectly purchase, rent, or lease any realty, goods, or services for his or her own agency from any business entity of which the officer or employee or the officer's or employee's spouse or child is an officer, partner, director, or proprietor or in which such officer or employee or the officer's or employee's spouse or child, or any combination of them, has a material interest, Nor shall a public officer or employee, acting in a private capacity, rent, lease, or sell any realty, goods, or services to the officer's or employee's own agency, if he or she is a state officer or employee, or to any political subdivision or any agency thereof, if he or she is serving as an officer or employee of that political subdivision. The foregoing shall not apply to district offices maintained by legislators when such offices are located in the legislator's place of business or when such offices are on property wholly or partially owned by the legislator. This subsection shall not affect or be construed to prohibit contracts entered into prior to: (a) October 1, 1975. (b) Qualification for elective office, (c) Appointment to public office. (d) Beginning public employment. (4) UNAUTHORIZED COMPENSATION. uNo public officer, employee of an agency, or local government attorney or his or her spouse or minor child shall, at any time, accept any compensation, payment, or thing of value when such public officer, employee, or local government attorney knows, or, with the exercise of reasonable care, should know, that it was given to influence a vote or other action in which the officer, employee, or local government attorney was expected to participate in his or her official capacity. (5) SALARY AND EXPENSES. uNo public officer shall be prohibited from voting on a matter affecting his or her salary, expenses, or other compensation as a public officer, as provided by law. No local government attorney shall be prevented from considering any matter affecting his or her salary, expenses, or other compensation as the local government attorney, as provided by law. (6) MISUSE OF PUBLIC POSITION. uNo public officer, employee of an agency, or local government attorney shall corruptly use or attempt to use his or her official position or any property or resource which may be within his or her trust, or perform his or her official duties, to secure a special privilege, benefit, or exemption for himself, herself, or others. This section shall not be http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&Search - Stn... 7/9/2004 ;statUtes t5l. constItutIOn: VIew Statutes :->2003->ChOI12->Section 313 : flsenate.gov Page 2 of6 construed to conflict with s. 1Q1J1.. (7) CONFLICTING EMPLOYMENT OR CONTRACTUAL RELATIONSHIP.-- (a) No public officer or employee of an agency shall have or hold any employment or contractual relationship with any business entity or any agency which is subject to the regulation of, or is doing business with, an agency of which he or she is an officer or employee, excluding those organizations and their officers who, when acting in their official capacity, enter into or negotiate a collective bargaining contract with the state or any municipality, county, or other political subdivision of the state; nor shall an officer or employee of an agency have or hold any employment or contractual relationship that will create a continuing or frequently recurring conflict between his or her private interests and the performance of his or her public duties or that would impede the full and faithful discharge of his or her public duties. 1. When the agency referred to is that certain kind of special tax district created by general or special law and is limited specifically to constructing, maintaining, managing, and financing improvements in the land area over which the agency has jurisdiction, or when the agency has been organized pursuant to chapter 298, then employment with, or entering into a contractual relationship with, such business entity by a public officer or employee of such agency shall not be prohibited by this subsection or be deemed a conflict per se. However, conduct by such officer or employee that is prohibited by, or otherwise frustrates the intent of, this section shall be deemed a conflict of interest in violation of the standards of conduct set forth by this section. 2. When the agency referred to is a legislative body and the regulatory power over the business entity resides in another agency, or when the regulatory power which the legislative body exercises over the business entity or agency is strictly through the enactment of laws or ordinances, then employment or a contractual relationship with such business entity by a public officer or employee of a legislative body shall not be prohibited by this subsection or be deemed a conflict. (b) This subsection shall not prohibit a public officer or employee from practicing in a particular profession or occupation when such practice by persons holding such public office or employment is required or permitted by law or ordinance. (8) DISCLOSURE OR USE OF CERTAIN INFORMATION,--No public officer, employee of an agency, or local government attorney shall disclose or use information not available to members of the general public and gained by reason of his or her official position for his or her personal gain or benefit or for the personal gain or benefit of any other person or business entity. (9) POSTEMPLOYMENT RESTRICTIONS; STANDARDS OF CONDUCT FOR LEGISLATORS AND LEGISLATIVE EMPLOYEES.-- (a)1. It is the intent of the Legislature to implement by statute the provisions of s. 8(e), Art. II of the State Constitution relating to legislators, statewide elected officers, appointed state officers, and designated public employees. 2. As used in this paragraph: a. "Employee" means: (I) Any person employed in the executive or legislative branch of government holding a position in the Senior Management Service as defined in s. 110.402 or any person holding a position in the Selected Exempt Service as defined in s, ~ or any person having authority over policy or procurement employed by the Department of the Lottery. (II) The Auditor General, the director of the Office of Program Policy Analysis and Government Accountability, the Sergeant at Arms and Secretary of the Senate, and the Sergeant at Arms and Clerk of the House of Representatives. (III) The executive director of the Legislative Committee on Intergovernmental Relations and the http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&Search - Stn... 7/9/2004 "lalules ð(; \...onsmunon : VIeW ~tatUtes :->LUU3->ChUIIL->Section 313 : flsenate.gov executive director and deputy executive director of the Commission on Ethics, Page 3 of6 (IV) An executive director, staff director, or deputy staff director of each joint committee, standing committee, or select committee of the Legislature; an executive director, staff director, executive assistant, analyst, or attorney of the Office of the President of the Senate, the Office of the Speaker of the House of Representatives, the Senate Majority Party Office, Senate Minority Party Office, House Majority Party Office, or House Minority Party Office; or any person, hired on a contractual basis, having the power normally conferred upon such persons, by whatever title. (V) The Chancellor and Vice Chancellors of the State University System; the general counsel to the 1Board of Regents; and the president, vice presidents, and deans of each state university, (VI) Any person having the power normally conferred upon the positions referenced in this sub- subparagraph. b. "Appointed state officer" means any member of an appointive board, commission, committee, council, or authority of the executive or legislative branch of state government whose powers, jurisdiction, and authority are not solely advisory and include the final determination or adjudication of any personal or property rights, duties, or obligations, other than those relative to its internal operations. c. "State agency" means an entity of the legislative, executive, or judicial branch of state government over which the Legislature exercises plenary budgetary and statutory control. 3. No member of the Legislature, appointed state officer, or statewide elected officer shall personally represent another person or entity for compensation before the government body or agency of which the individual was an officer or member for a period of 2 years following vacation of office. No member of the Legislature shall personally represent another person or entity for compensation during his or her term of office before any state agency other than judicial tribunals or in settlement negotiations after the filing of a lawsuit. 4. No agency employee shall personally represent another person or entity for compensation before the agency with which he or she was employed for a period of 2 years following vacation of position, unless employed by another agency of state government. 5, Any person violating this paragraph shall be subject to the penalties provided in s. 11Lill and a civil penalty of an amount equal to the compensation which the person receives for the prohibited conduct. 6, This paragraph is not applicable to: a. A person employed by the Legislature or other agency prior to July 1, 1989; b. A person who was employed by the Legislature or other agency on July 1, 1989, whether or not the person was a defined employee on July 1, 1989; c. A person who was a defined employee of the State University System or the Public Service Commission who held such employment on December 31, 1994; d. A person who has reached normal retirement age as defined in s. .12LQ21(29), and who has retired under the provisions of chapter 121 by July 1, 1991; or e. Any appointed state officer whose term of office began before January 1, 1995, unless reappointed to that office on or after January 1, 1995. (b) In addition to the provisions of this part which are applicable to legislators and legislative employees by virtue of their being public officers or employees, the conduct of members of the Legislature and legislative employees shall be governed by the ethical standards provided in the respective rules of the Senate or House of Representatives which are not in conflict herewith. http://www.flsenate.gov/Statutes/index.cfin?p=2&App - mode=Display - Statute&Search - Stri... 7/9/2004 è>laLUleS eX L,OnSUmUon : vIew ðtatutes :->LUUJ->ChU1l2->Sectíon 313 : flsenate.gov Page 4 0[6 (10) EMPLOYEES HOLDING OFFICE.-- (a) No employee of a state agency or of a county, municipality, special taxing district, or other political subdivision of the state shall hold office as a member of the governing board, council, commission, or authority, by whatever name known, which is his or her employer while, at the same time, continuing as an employee of such employer. (b) The provisions of this subsection shall not apply to any person holding office in violation of such provisions on the effective date of this act. However, such a person shall surrender his or her conflicting employment prior to seeking reelection or accepting reappointment to office. (11) PROFESSIONAL AND OCCUPATIONAL LICENSING BOARD MEMBERS.--No officer, director, or administrator of a Florida state, county, or regional professional or occupational organization or association, while holding such position, shall be eligible to serve as a member of a state examining or licensing board for the profession or occupation. (12) EXEMPTION.--The requirements of subsections (3) and (7) as they pertain to persons serving on advisory boards may be waived in a particular instance by the body which appointed the person to the advisory board, upon a full disclosure of the transaction or relationship to the appointing body prior to the waiver and an affirmative vote in favor of waiver by two-thirds vote of that body. In instances in which appointment to the advisory board is made by an individual, waiver may be effected, after public hearing, by a determination by the appointing person and full disclosure of the transaction or relationship by the appointee to the appointing person. In addition, no person shall be held in violation of subsection (3) or subsection (7) if: (a) Within a city or county the business is transacted under a rotation system whereby the business transactions are rotated among all qualified suppliers of the goods or services within the city or county. (b) The business is awarded under a system of sealed, competitive bidding to the lowest or best bidder and: 1. The official or the official's spouse or child has in no way participated in the determination of the bid specifications or the determination of the lowest or best bidder; 2. The official or the official's spouse or child has in no way used or attempted to use the official's influence to persuade the agency or any personnel thereof to enter such a contract other than by the mere submission of the bid; and 3. The official, prior to or at the time of the submission of the bid, has filed a statement with the Department of State, if the official is a state officer or employee, or with the supervisor of elections of the county in which the agency has its principal office, if the official is an officer or employee of a political subdivision, disclosing the official's interest, or the interest of the official's spouse or child, and the nature of the intended business. (c) The purchase or sale is for legal advertising in a newspaper, for any utilities service, or for passage on a common carrier. (d) An emergency purchase or contract which would otherwise violate a provision of subsection (3) or subsection (7) must be made in order to protect the health, safety, or welfare of the citizens of the state or any political subdivision thereof, (e) The business entity involved is the only source of supply within the political subdivision of the officer or employee and there is full disclosure by the officer or employee of his or her interest in the business entity to the governing body of the political subdivision prior to the purchase, rental, sale, leasing, or other business being transacted. (f) The total amount of the transactions in the aggregate between the business entity and the agency does not exceed $500 per calendar year. http://www.flsenate.gov/Statutes/index.cfin?p~2&App - mode~Display - Statute&Search - Stri... 7/9/2004 ~Ia{mes (5¿ LOnSmUIIOn : View :statutes :->2UU3->ChOI12->Section 313 : flsenate.gov Page 5 of6 (g) The fact that a county or municipal officer or member of a public board or body, including a district school officer or an officer of any district within a county, is a stockholder, officer, or director of a bank will not bar such bank from qualifying as a depository of funds coming under the jurisdiction of any such public board or body, provided it appears in the records of the agency that the governing body of the agency has determined that such officer or member of a public board or body has not favored such bank over other qualified banks. (h) The transaction is made pursuant to s, 100'!.22 or s, 1J)Q1,],J and is specifically approved by the president and the chair of the university board of trustees. The chair of the university board of trustees shall submit to the Governor and the Legislature by March 1 of each year a report of the transactions approved pursuant to this paragraph during the preceding year. (i) The public officer or employee purchases in a private capacity goods or services, at a price and upon terms available to similarly situated members of the general public, from a business entity which is doing business with his or her agency. (j) The public officer or employee in a private capacity purchases goods or services from a business entity which is subject to the regulation of his or her agency and: 1. The price and terms of the transaction are available to similarly situated members of the general public; and 2. The officer or employee makes full disclosure of the relationship to the agency head or governing body prior to the transaction, (13) COUNTY AND MUNICIPAL ORDINANCES AND SPECIAL DISTRICT AND SCHOOL DISTRICT RESOLUTIONS REGULATING FORMER OFFICERS OR EMPLOYEES. -- The governing body of any county or municipality may adopt an ordinance and the governing body of any special district or school district may adopt a resolution providing that an appointed county, municipal, special district, or school district officer or a county, municipal, special district, or school district employee may not personally represent another person or entity for compensation before the government body or agency of which the individual was an officer or employee for a period of 2 years following vacation of office or termination of employment, except for the purposes of collective bargaining. Nothing in this section may be construed to prohibit such ordinance or resolution. (14) LOBBYING BY FORMER LOCAL OFFICERS; PROHIBITION,--A person who has been elected to any county, municipal, special district, or school district office may not personally represent another person or entity for compensation before the governing body of which the person was an officer for a period of 2 years after vacating that office. (15) ADDITIONAL EXEMPTION.--No elected public officer shall be held in violation of subsection (7) if the officer maintains an employment relationship with an entity which is currently a tax-exempt organization under s, 501 (c) of the Internal Revenue Code and which contracts with or otherwise enters into a business relationship with the officer's agency and: (a) The officer's employment is not directly or indirectly compensated as a result of such contract or business relationship; (b) The officer has in no way participated in the agency's decision to contract or to enter into the business relationship with his or her employer, whether by participating in discussion at the meeting, by communicating with officers or employees of the agency, or otherwise; and (c) The officer abstains from voting on any matter which may come before the agency involving the officer's employer, publicly states to the assembly the nature of the officer's interest in the matter from which he or she is abstaining, and files a written memorandum as provided in s. Ul..]JAlc (16) LOCAL GOVERNMENT ATTORNEYS.-- http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&Search - Stri... 7/9/2004 i:>lalUles ð[ \.-onsmunon : vIew :)Iatutes :->:lUUJ->ChUI12->Section 313 : flsenate.gov Page 6 of6 (a) For the purposes of this section, "local government attorney" means any individual who routinely serves as the attorney for a unit of local government, The term shall not include any person who renders legal services to a unit of local government pursuant to contract limited to a specific issue or subject, to specific litigation, or to a specific administrative proceeding. For the purposes of this section, "unit of local government" includes, but is not limited to, municipalities, counties, and special districts. (b) It shall not constitute a violation of subsection (3) or subsection (7) for a unit of local government to contract with a law firm, operating as either a partnership or a professional association, or in any combination thereof, or with a local government attorney who is a member of or is otherwise associated with the law firm, to provide any or all legal services to the unit of local government, so long as the local government attorney is not a full-time employee or member of the governing body of the unit of local government. However, the standards of conduct as provided in subsections (2), (4), (5), (6), and (8) shall apply to any person who serves as a local government attorney. (c) No local government attorney or law firm in which the local government attorney is a member, partner, or employee shall represent a private individual or entity before the unit of local government to which the local government attorney provides legal services. A local government attorney whose contract with the unit of local government does not include provisions that authorize or mandate the use of the law firm of the local government attorney to complete legal services for the unit of local government shall not recommend or otherwise refer legal work to that attorney's law firm to be completed for the unit of local government. History.--s. 3, ch, 67-469; s, 2, ch. 69-335; ss. 10, 35, ch. 69-106; s. 3, ch. 74-177; ss. 4,11, ch. 75-208; s. 1, ch. 77-174; s. 1, ch, 77-349; s, 4, ch, 82-98; s. 2, ch, 83-26; s. 6, ch. 83-282; s. 14, ch. 85-80; s. 12, ch. 86-145; s. 1, ch, 88-358; s, 1, ch. 88-408; s. 3, ch. 90-502; s. 3, ch. 91-85; s. 4, ch. 91-292; s. 1, ch. 92-35; s. 1, ch, 94-277; s. 1406, ch. 95-147; s, 3, ch. 96-311; s, 34, ch. 96,318; s. 41, ch, 99-2; s. 29, ch, 2001-266; s, 20, ch. 2002-1; s. 894, ch. 2002-387, 1Note.--Abolished by s, 3, ch. 2001-170. Disclaimer: The infonnation on this system is unverified. The journals or printed bills of the respective chambers should be consulted for official purposes. Copyright \0 2000-2004 State of Florida. http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&Search - Stri... 7/9/2004 Statutes & Constitution :View Statutes :->2003->ChO112->Section 3143: flsenate.gov Page 1 of2 Select Year: 2003 §] The Florida Statutes Iitltl PUBUC OFFICERS, EMPLOYEES, AND RECORDS 112.3143 Voting conflicts.-- ~ill PUBLIC OFFICERS AND EMPLOYEES: GENERAL PROVISIONS Yiew Entire ~~ (1) As used in this section: (a) "Public officer" includes any person elected or appointed to hold office in any agency, including any person serving on an advisory body. (b) "Relative" means any father, mother, son, daughter, husband, wife, brother, sister, father-in- law, mother-in-law, son-in-law, or daughter-in-law, (2) No state public officer is prohibited from voting in an official capacity on any matter. However, any state public officer voting in an official capacity upon any measure which would inure to the officer's special private gain or loss; which he or she knows would inure to the special private gain or loss of any principal by whom the officer is retained or to the parent organization or subsidiary of a corporate principal by which the officer is retained; or which the officer knows would inure to the special private gain or loss of a relative or business associate of the public officer shall, within 15 days after the vote occurs, disclose the nature of his or her interest as a public record in a memorandum filed with the person responsible for recording the minutes of the meeting, who shall incorporate the memorandum in the minutes. (3)(a) No county, municipal, or other local public officer shall vote in an official capacity upon any measure which would inure to his or her special private gain or loss; which he or she knows would inure to the special private gain or loss of any principal by whom he or she is retained or to the parent organization or subsidiary of a corporate principal by which he or she is retained, other than an agency as defined in s. 112.312(2); or which he or she knows would inure to the special private gain or loss of a relative or business associate of the public officer. Such public officer shall, prior to the vote being taken, publicly state to the assembly the nature of the officer's interest in the matter from which he or she is abstaining from voting and, within 15 days after the vote occurs, disclose the nature of his or her interest as a public record in a memorandum filed with the person responsible for recording the minutes of the meeting, who shall incorporate the memorandum in the minutes. (b) However, a commissioner of a community redevelopment agency created or designated pursuant to s. ~ or s, 161..3.5Z, or an officer of an independent special tax district elected on a one-acre, one-vote basis, is not prohibited from voting, when voting in said capacity. (4) No appointed public officer shall participate in any matter which would inure to the officer's special private gain or loss; which the officer knows would inure to the special private gain or loss of any principal by whom he or she is retained or to the parent organization or subsidiary of a corporate principal by which he or she is retained; or which he or she knows would inure to the special private gain or loss of a relative or business associate of the public officer, without first disclosing the nature of his or her interest in the matter, (a) Such disclosure, indicating the nature of the conflict, shall be made in a written memorandum filed with the person responsible for recording the minutes of the meeting, prior to the meeting in which consideration of the matter will take place, and shall be incorporated into the minutes. Any such memorandum shall become a public record upon filing, shall immediately be provided to the other members of the agency, and shall be read publicly at the next meeting held subsequent to the filing of this written memorandum. (b) In the event that disclosure has not been made prior to the meeting or that any conflict is http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&Search - Stri... 7/9/2004 Statutes & Constitution :View Statutes :->2003->ChO112->Section 3143 : flsenate.gov Page 2 0£2 unknown prior to the meeting, the disclosure shall be made orally at the meeting when it becomes known that a conflict exists. A written memorandum disclosing the nature of the conflict shall then be filed within 15 days after the oral disclosure with the person responsible for recording the minutes of the meeting and shall be incorporated into the minutes of the meeting at which the oral disclosure was made. Any such memorandum shall become a public record upon filing, shall immediately be provided to the other members of the agency, and shall be read publicly at the next meeting held subsequent to the filing of this written memorandum. (c) For purposes of this subsection, the term "participate" means any attempt to influence the decision by oral or written communication, whether made by the officer or at the officer's direction. (5) Whenever a public officer or former public officer is being considered for appointment or reappointment to public office, the appointing body shall consider the number and nature of the memoranda of conflict previously filed under this section by said officer. History.--s, 6, ch, 75-208; s. 2, ch. 84-318; s, 1, ch, 84-357; s. 2, ch. 86-148; s. 5, ch, 91-85; 5.3, ch, 94-277; s. 1408, ch. 95-147; s. 43, ch, 99-2. Oisclaimer: The infDnnatiDn Dn this system is unverified. The journals Dr printed bills Df the respective chambers should be consulted for official purposes. Copyright <0 2000-2004 State of FlDrida. http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Disp1ay - Statute&Search - Stn... 7/9/2004 Statutes & Constitution :View Statutes :->2003->ChOI12->Section 3144 : flsenate.gov Page 1 of3 Select Year: 2003 ~ The Florida Statutes Iitk.x PUBLIC OFFICERS, EMPLOYEES, AND RECORDS Chapter 112 PUBLIC OFFICERS AND EMPLOYEES: GENERAL PROVISIONS ~œ Chapter 112.3144 Full and public disclosure of financial interests.-- 1 (1) An officer who is required by s. 8, Art, II of the State Constitution to file a full and public disclosure of his or her financial interests for any calendar or fiscal year shall file that disclosure with the Florida Commission on Ethics. (2) A person who is required, pursuant to s. 8, Art, II of the State Constitution, to file a full and public disclosure of financial interests and who has filed a full and public disclosure of financial interests for any calendar or fiscal year shall not be required to file a statement of financial interests pursuant to s. ~(2) and (3) for the same year or for any part thereof notwithstanding any requirement of this part, except that a candidate for office shall file a copy of his or her disclosure with the officer before whom he or she qualifies, (3) For purposes of full and public disclosure under s. 8(a), Art. II of the State Constitution, the following items, if not held for investment purposes and if valued at over $1,000 in the aggregate, may be reported in a lump sum and identified as "household goods and personal effects": (a) Jewelry; (b) Collections of stamps, guns, and numismatic properties; (c) Art objects; (d) Household equipment and furnishings; (e) Clothing; (f) Other household items; and (g) Vehicles for personal use. (4) Forms for compliance with the full and public disclosure requirements of s, 8, Art. II of the State Constitution shall be created by the Commission on Ethics. The commission shall give notice of disclosure deadlines and delinquencies and distribute forms in the following manner: (a) Not later than May 1 of each year, the commission shall prepare a current list of the names and addresses of and the offices held by every person required to file full and public disclosure annually by s. 8, Art. II of the State Constitution, or other state law. In compiling the list, the commission shall be assisted by each unit of government in providing at the request of the commission the name, address, and name of the office held by each public official within the respective unit of government. (b) Not later than 30 days before July 1 of each year, the commission shall mail a copy of the form prescribed for compliance with full and public disclosure and a notice of the filing deadline to each person on the mailing list. 2(C) Not later than 30 days after July 1 of each year, the commission shall determine which persons on the mailing list have failed to file full and public disclosure and shall send delinquency notices by certified mail to such persons. Each notice shall state that a grace period is in effect http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&Search - Stn... 7/9/2004 Statutes & Constitution :View Statutes :->2003->ChOI12->Section 3144 : flsenate.gov until September 1 of the current year. Page 2 of3 (d) Statements must be filed not later than 5 p.m. of the due date. However, any statement that is postmarked by the United States Postal Service by midnight of the due date is deemed to have been filed in a timely manner, and a certificate of mailing obtained from and dated by the United States Postal Service at the time of the mailing, or a receipt from an established courier company which bears a date on or before the due date, constitutes proof of mailing in a timely manner. (e) Any person who is required to file full and public disclosure of financial interests and whose name is on the commission's mailing list but who fails to timely file is assessed a fine of $25 per day for each day late up to a maximum of $1,500; however this S1 ,500 limitation on automatic fines does not limit the civil penalty that may be imposed if the statement is filed more than 60 days after the deadline and a complaint is filed, as provided in s. ~ The commission must provide by rule the grounds for waiving the fine and the procedures by which each person whose name is on the mailing list and who is determined to have not filed in a timely manner will be notified of assessed fines and may appeal. The rule must provide for and make specific the following: 1. The amount of the fine due is based upon the earliest of the following: a. When a statement is actually received by the office. b. When the statement is postmarked. c. When the certificate of mailing is dated. d. When the receipt from an established courier company is dated. 2. Upon receipt of the disclosure statement or upon accrual of the maximum penalty, whichever occurs first, the commission shall determine the amount of the fine which is due and shall notify the delinquent person. The notice must include an explanation of the appeal procedure under subparagraph 3. Such fine must be paid within 30 days after the notice of payment due is transmitted, unless appeal is made to the commission pursuant to subparagraph 3, The moneys shall be deposited into the General Revenue Fund. 3. Any reporting person may appeal or dispute a fine, based upon unusual circumstances surrounding the failure to file on the designated due date, and may request and is entitled to a hearing before the commission, which may waive the fine in whole or in part for good cause shown. Any such request must be made within 30 days after the notice of payment due is transmitted. In such a case, the reporting person must, within the 30-day period, notify the person designated to review the timeliness of reports in writing of his or her intention to bring the matter before the commission. (f) Any person subject to the annual filing of full and public disclosure under s. 8, Art. II of the State Constitution, or other state law, whose name is not on the commission's mailing list of persons required to file full and public disclosure is not subject to the fines or penalties provided in this part for failure to file full and public disclosure in any year in which the omission occurred, but nevertheless is required to file the disclosure statement. (g) The notification requirements and fines of this subsection do not apply to candidates or to the first filing required of any person appointed to elective constitutional office or other position required to file full and public disclosure, unless the person's name is on the commission's notification list and the person received notification from the commission, The appointing official shall notify such newly appointed person of the obligation to file full and public disclosure by July 1. The notification requirements and fines of this subsection do not apply to the final filing provided for in subsection (5). (h) Notwithstanding any provision of chapter 120, any fine imposed under this subsection which is not waived by final order of the commission and which remains unpaid more than 60 days after the notice of payment due or more than 60 days after the commission renders a final order on the appeal must be submitted to the Department of Financial Services as a claim, debt, or other http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&Search - Stri... 7/9/2004 Statutes & Constitution :View Statutes :->2003->ChOI12->Section 3144: flsenate.gov Page 3 of3 obligation owed to the state, and the department shall assign the collection of such fine to a collection agent as provided in s. 17.20. (5) Each person required to file full and public disclosure of financial interests shall file a final disclosure statement within 60 days after leaving his or her public position for the period between January 1 of the year in which the person leaves and the last day of office or employment, unless within the 60-day period the person takes another public position requiring financial disclosure under s. 8, Art. II of the State Constitution, or is otherwise required to file full and public disclosure for the final disclosure period. The head of the agency of each person required to file full and public disclosure for the final disclosure period shall notify such persons of their obligation to file the final disclosure and may designate a person to be responsible for the notification requirements of this subsection. (6) The commission shall adopt rules and forms specifying how a person who is required to file full and public disclosure of financial interests may amend his or her disclosure statement to report information that was not included on the form as originally filed. If the amendment is the subject of a complaint filed under this part, the commission and the proper disciplinary official or body shall consider as a mitigating factor when considering appropriate disciplinary action the fact that the amendment was filed before any complaint or other inquiry or proceeding, while recognizing that the public was deprived of access to information to which it was entitled. History,--s. 1, ch. 82-98; s. 3, ch. 88-358; s. 19, ch. 91-45; s. 4, ch. 94-277; s. 1409, ch. 95-147; s. 2, ch. 2000-243; s. 30, ch. 2000-258; s. 127, ch. 2003-261. 1Note.--As created by s. 30, ch. 2000-258. Subsection (1), as created by s. 2, ch, 2000-243, reads: (1) A person who is required, pursuant to s. 8, Art. II of the State Constitution, to file a full and public disclosure of financial interests for any calendar or fiscal year shall file the disclosure with the Florida Commission on Ethics. 2Note.--As amended by s. 30, ch. 2000-258. Paragraph (4)(c), as amended by s. 2, ch. 2000-243, reads: (c) Not later than 30 days after July 1 of each year, the commission shall determine which persons on the mailing list have failed to file full and public disclosure and shall send delinquency notices by certified mail to such persons, Each notice must state that a grace period is in effect until September 1 of the current year and that, if the statement is not filed by September 1 of the current year, a $25 fine for each day late will be imposed, up to a maximum penalty of $1,500; and that, if upon the filing of a sworn complaint the commission finds that the person has failed to timely file the statement within 60 days after September 1 of the current year, such person will also be subject to the penalties provided in s. 112,317. Disclaimer: The information on this system is unverified. The joumals or printed bills of the respective chambers should be consulted for official purposes. Copyright <c 2000-2004 State of Florida. http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&Search - Stn... 7/9/2004 Statutes & Constitution :View Statutes :->2003->ChOI12->Section 3173 : flsenate.gov Page 1 00 Select Year: 2003 §J The Florida Statutes IillfJ( PUBLIC OFFICERS, EMPLOYEES, AND RECORDS Chapter 112 PUBLIC OFFICERS AND EMPLOYEES: GENERAL PROVISIONS View I;:n.ti.œ Qla¡¡)g[ 112.3173 Felonies involving breach of public trust and other specified offenses by public officers and employees; forfeiture of retirement benefits.-- (1) INTENT.--It is the intent of the Legislature to implement the provisions of s. B(d), Art. II of the State Constitution. (2) DEFINITIONS.--As used in this section, unless the context otherwise requires, the term: (a) "Conviction" and "convicted" mean an adjudication of guilt by a court of competent jurisdiction; a plea of guilty or of nolo contendere; a jury verdict of guilty when adjudication of guilt is withheld and the accused is placed on probation; or a conviction by the Senate of an impeachable offense. (b) "Court" means any state or federal court of competent jurisdiction which is exercising its jurisdiction to consider a proceeding involving the alleged commission of a specified offense, (c) "Public officer or employee" means an officer or employee of any public body, political subdivision, or public instrumentality within the state. (d) "Public retirement system" means any retirement system or plan to which the provisions of part VII of this chapter apply. (e) "Specified offense" means: 1, The committing, aiding, or abetting of an embezzlement of public funds; 2, The committing, aiding, or abetting of any theft by a public officer or employee from his or her employer; 3, Bribery in connection with the employment of a public officer or employee; 4. Any felony specified in chapter 838, except ss. lli,j2 and ~; 5. The committing of an impeachable offense; or 6. The committing of any felony by a public officer or employee who, willfully and with intent to defraud the public or the public agency for which the public officer or employee acts or in which he or she is employed of the right to receive the faithful performance of his or her duty as a public officer or employee, realizes or obtains, or attempts to realize or obtain, a profit, gain, or advantage for himself or herself or for some other person through the use or attempted use of the power, rights, privileges, duties, or position of his or her public office or employment position. (3) FORFEITURE...Any public officer or employee who is convicted of a specified offense committed prior to retirement, or whose office or employment is terminated by reason of his or her admitted commission, aid, or abetment of a specified offense, shall forfeit all rights and benefits under any public retirement system of which he or she is a member, except for the return of his or her accumulated contributions as of the date of termination. (4) NOTICE,-- http://www.flsenate.gov/Statutes/index.cfin?p=2&App - mode=Display - Statute&Search - Stri... 7/9/2004 Statutes & Constitution :View Statutes :->2003->ChOI12->Section 3173: flsenate.gov Page 2 of3 (a) The clerk of a court in which a proceeding involving a specified offense is being conducted against a public officer or employee shall furnish notice of the proceeding to the Commission on Ethics, Such notice is sufficient if it is in the form of a copy of the indictment, information, or other document containing the charges, In addition, if a verdict of guilty is returned by a jury or by the court trying the case without a jury, or a plea of guilty or of nolo contendere is entered in the court by the public officer or employee, the clerk shall furnish a copy thereof to the Commission on Ethics. (b) The Secretary of the Senate shall furnish to the Commission on Ethics notice of any proceeding of impeachment being conducted by the Senate. In addition, if such trial results in conviction, the Secretary of the Senate shall furnish notice of the conviction to the commission. (c) The employer of any member whose office or employment is terminated by reason of his or her admitted commission, aid, or abetment of a specified offense shall forward notice thereof to the commission. (d) The Commission on Ethics shall forward any notice and any other document received by it pursuant to this subsection to the governing body of the public retirement system of which the public officer or employee is a member or from which the public officer or employee may be entitled to receive a benefit. When called on by the Commission on Ethics, the Department of Management Services shall assist the commission in identifying the appropriate public retirement system. (5) FORFEITURE DETERMINATION.-- (a) Whenever the official or board responsible for paying benefits under a public retirement system receives notice pursuant to subsection (4), or otherwise has reason to believe that the rights and privileges of any person under such system are required to be forfeited under this section, such official or board shall give notice and hold a hearing in accordance with chapter 120 for the purpose of determining whether such rights and privileges are required to be forfeited. If the official or board determines that such rights and privileges are required to be forfeited, the official or board shall order such rights and privileges forfeited, (b) Any order of forfeiture of retirement system rights and privileges is appealable to the district court of appeal. (c) The payment of retirement benefits ordered forfeited, except payments drawn from nonemployer contributions to the retiree's account, shall be stayed pending an appeal as to a felony conviction, If such conviction is reversed, no retirement benefits shall be forfeited. If such conviction is affirmed, retirement benefits shall be forfeited as ordered in this section. (d) If any person's rights and privileges under a public retirement system are forfeited pursuant to this section and that person has received benefits from the system in excess of his or her accumulated contributions, such person shall pay back to the system the amount of the benefits received in excess of his or her accumulated contributions. If he or she fails to pay back such amount, the official or board responsible for paying benefits pursuant to the retirement system or pension plan may bring an action in circuit court to recover such amount, plus court costs. (6) FORFEITURE NONEXCLUSIVE.'- (a) The forfeiture of retirement rights and privileges pursuant to this section is supplemental to any other forfeiture requirements provided by law. (b) This section does not preclude or otherwise limit the Commission on Ethics in conducting under authority of other law an independent investigation of a complaint which it may receive against a public officer or employee involving a specified offense. History.--s. 14, ch. 84-266; s. 4, ch. 90-301; s. 44, ch. 92-279; s, 55, ch. 92-326; s, 22, ch. 94-249; s, 1414, ch. 95-147; s. 13, ch. 99-255. http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display -- Statute&Search - Stri... 7/9/2004 :statutes /5[ ConstItution :Vlew Statutes :->2003->ChOI12->Section 3173 : flsenate.gov Page 3 of3 Disclaimer: The information on this system is unverified. The journals or printed bills of the respective chambers should be consulted for official purposes. Copyright ~ ZOOO,ZOO4 State of Florida, http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=DisplaL Statute&Search - Stri... 7/9/2004 ~tatutes & ConstItutIon :View Statutes :->2003->ChOl12->Section 63 : flsenate.gov Page 1 0£2 Select Year: 2003 ~ The Florida Statutes Iit!fJ( PUBLIC OFFICERS, EMPLOYEES, AND RECORDS Chapter 112 PUBLIC OFFICERS AND EMPLOYEES: GENERAL PROVISIONS View Entire Chapter 112.63 Actuarial reports and statements of actuarial impact; review.-- (1) Each retirement system or plan subject to the provisions of this act shall have regularly scheduled actuarial reports prepared and certified by an enrolled actuary, The actuarial report shall consist of, but shall not be limited to, the following: (a) Adequacy of employer and employee contribution rates in meeting levels of employee benefits provided in the system and changes, if any, needed in such rates to achieve or preserve a level of funding deemed adequate to enable payment through the indefinite future of the benefit amounts prescribed by the system, which shall include a valuation of present assets, based on statement value, and prospective assets and liabilities of the system and the extent of unfunded accrued liabilities, if any. (b) A plan to amortize any unfunded liability pursuant to s. 112.64 and a description of actions taken to reduce the unfunded liability. (c) A description and explanation of actuarial assumptions. (d) A schedule illustrating the amortization of unfunded liabilities, if any. (e) A comparative review illustrating the actual salary increases granted and the rate of investment return realized over the 3-year period preceding the actuarial report with the assumptions used in both the preceding and current actuarial reports. (f) A statement by the enrolled actuary that the report is complete and accurate and that in his or her opinion the techniques and assumptions used are reasonable and meet the requirements and intent of this act. The actuarial cost methods utilized for establishing the amount of the annual actuarial normal cost to support the promised benefits shall only be those methods approved in the Employee Retirement Income Security Act of 1974 and as permitted under regulations prescribed by the Secretary of the Treasury . (2) The frequency of actuarial reports must be at least every 3 years commencing from the last actuarial report of the plan or system or October 1, 1980, if no actuarial report has been issued within the 3-year period prior to October 1, 1979. The results of each actuarial report shall be filed with the plan administrator within 60 days of certification. Thereafter, the results of each actuarial report shall be made available for inspection upon request. Additionally, each retirement system or plan covered by this act which is not administered directly by the Department of Management Services shall furnish a copy of each actuarial report to the Department of Management Services within 60 days after receipt from the actuary. The requirements of this section are supplemental to actuarial valuations necessary to comply with the requirements of ss. lli,121 and ~ (3) No unit of local government shall agree to a proposed change in retirement benefits unless the administrator of the system, prior to adoption of the change by the governing body, and prior to the last public hearing thereon, has issued a statement of the actuarial impact of the proposed change upon the local retirement system, consistent with the actuarial review, and has furnished a copy of such statement to the division. Such statement shall also indicate whether the proposed changes are in compliance with s. 14, Art. X of the State Constitution and with s. ~ http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display _Statute&Search - Stri... 7/9/2004 Statutes & Constitution :View Statutes :->2003->ChOl12->Section 63 : flsenate.gov Page 2 of2 (4) Upon receipt, pursuant to subsection (2), of an actuarial report, or upon receipt, pursuant to subsection (3), of a statement of actuarial impact, the Department of Management Services shall acknowledge such receipt, but shall only review and comment on each retirement system's or plan's actuarial valuations at least on a triennial basis. If the department finds that the actuarial valuation is not complete, accurate, or based on reasonable assumptions, or if the department does not receive the actuarial report or statement of actuarial impact, the department shall notify the local government and request appropriate adjustment. If, after a reasonable period of time, a satisfactory adjustment is not made, the affected local government or the department may petition for a hearing under the provisions of ss. 1lQ.2Q2 and 1lQ.5L If the administrative law judge recommends in favor of the department, the department shall perform an actuarial review or prepare the statement of actuarial impact. The cost to the department of performing such actuarial review or preparing such statement shall be charged to the governmental entity of which the employees are covered by the retirement system or plan. If payment of such costs is not received by the department within 60 days after receipt by the governmental entity of the request for payment, the department shall certify to the Chief Financial Officer the amount due, and the Chief Financial Officer shall pay such amount to the department from any funds payable to the governmental entity of which the employees are covered by the retirement system or plan. If the administrative law judge recommends in favor of the local retirement system and the department performs an actuarial review, the cost to the department of performing the actuarial review shall be paid by the department. (5) Payments made to the fund as required by this chapter shall be based on the normal and past service costs contained in the most recent actuarial valuation, subject to being state-accepted, (6) Beginning July 1, 1980, each retirement system or plan of a unit of local government shall maintain, in accurate and accessible form, the following information: (a) For each active and inactive member of the system, a number or other means of identification; date of birth; sex; date of employment; period of credited service, split, if required, between prior service and current service; and occupational classification. (b) For each active member, current pay rate, cumulative contributions together with accumulated interest, if credited, age at entry into system, and current rate of contribution. (c) For each inactive member, average final compensation or equivalent and age at which deferred benefit is to begin, (d) For each retired member and other beneficiary, a number or other means of identification, date of birth, sex, beginning date of benefit, type of retirement and amount of monthly benefit, and type of survivor benefit, History...s. 1, ch. 78-170; s, 15, ch. 79,183; s. 3, ch. 83-37; s. 48, ch. 92-279; s. 55, ch. 92-326; s, 23, ch. 94-249; s. 1418, ch. 95-147; s. 2, ch. 96-324; s. 16, ch, 96-410; s. 21, ch. 99-255; s. 1, ch. 99-392; s. 31, ch. 2001-266; s. 132, ch. 2003-261, Disclaimer: The information on this system is unverified. The journals or printed bills of the respective chamber. should be consulted ror official purposes. Copyright <0 2000-2004 State of Florida. http://www.flsenate.gov/Statutes/index.cfin?p=2&App - mode=Display - Statute&Search - Stri... 7/9/2004 Statutes & Constitution :View Statutes :->2003->ChOI12->Section 656 : flsenate.gov Page 1 of 1 Select Year: 2003 §] The Florida Statutes ~ Chapter 112 PUBLIC OFFICERS, EMPLOYEES, PUBLIC OFFICERS AND EMPLOYEES: AND RECORDS GENERAL PROVISIONS 112.656 Fiduciary dutie$; certain officials included as fiduciaries," View Entire Chapter (1) A fiduciary shall discharge his or her duties with respect to a plan solely in the interest of the participants and beneficiaries for the exclusive purpose of providing benefits to participants and their beneficiaries and defraying reasonable expenses of administering the plan. (2) Each retirement system or plan shall have one or more named fiduciaries with authority to control and manage the administration and operation of the retirement system or plan. However, the plan administrator, and any officer, trustee, and custodian, and any counsel, accountant, and actuary of the retirement system or plan who is employed on a full-time basis, shall be included as fiduciaries of such system or plan. (3) A retirement system or plan may purchase insurance for its named fiduciary to cover liability or losses incurred by reason of act or omission of the fiduciary, History,--s. 18, ch. 79-183; s. 724, ch, 95-147. Oisclaimer: The information on this system is unverified. The joumals or printed bills of the respective chambers should be consulted for official purposes. Copyright <C 2000-2004 State of Florida. http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&Search - Stri... 7/9/2004 Statutes & Constitution :View Statutes :->2003->ChO112->Section 661 : flsenate.gov Page 1 of3 Select Year: 2003 ~ The Florida Statutes Iit.lelí Chapter 112 PUBLIC OFFICERS, EMPLOYEES, PUBLIC OFFICERS AND EMPLOYEES: AND RECORDS GENERAL PROVISIONS 112.661 Investment policies.--Investment of the assets of any local retirement system or plan must be consistent with a written investment policy adopted by the board. Such policies shall be structured to maximize the financial return to the retirement system or plan consistent with the risks incumbent in each investment and shall be structured to establish and maintain an appropriate diversification of the retirement system or plan's assets. ~e (;'hapter (1) SCOPE.-- The investment policy shall apply to funds under the control of the board. (2) INVESTMENT OBJECTIVES.--The investment policy shall describe the investment objectives of the board. (3) PERFORMANCE MEASUREMENT.--The investment policy shall specify performance measures as are appropriate for the nature and size of the assets within the board's custody. (4) INVESTMENT AND FIDUCIARY STANDARDS.--The investment policy shall describe the level of prudence and ethical standards to be followed by the board in carrying out its investment activities with respect to funds described in this section. The board in performing its investment duties shall comply with the fiduciary standards set forth in the Employee Retirement Income Security Act of 1974 at 29 U.S.L s. 1104(a)(1 )(A)-(C). In case of conflict with other provisions of law authorizing investments, the investment and fiduciary standards set forth in this section shall prevail. (5) AUTHORIZED INVESTMENTS.-- (a) The investment policy shall list investments authorized by the board. Investments not listed in the investment policy are prohibited. Unless otherwise authorized by law or ordinance, the investment of the assets of any local retirement system or plan covered by this part shall be subject to the limitations and conditions set forth in s. lliÆ(1 )-(8), (10), and (16), (b) If a local retirement system or plan has investments that, on October 1, 2000, either exceed the applicable limit or do not satisfy the applicable investment standard, such excess or investment not in compliance with the policy may be continued until such time as it is economically feasible to dispose of such investment. However, no additional investment may be made in the investment category which exceeds the applicable limit, unless authorized by law or ordinance. (6) MATURITY AND LIQUIDITY REQUIREMENTS.--The investment policy shall require that the investment portfolio be structured in such manner as to provide sufficient liquidity to pay obligations as they come due. To that end, the investment policy should direct that, to the extent possible, an attempt will be made to match investment maturities with known cash needs and anticipated cash-flow requirements, (7) PORTFOLIO COMPOSITION,--The investment policy shall establish guidelines for investments and limits on security issues, issuers, and maturities. Such guidelines shall be commensurate with the nature and size of the funds within the custody of the board. (8) RISK AND DIVERSIFICATION.--The investment policy shall provide for appropriate diversification of the investment portfolio. Investments held should be diversified to the extent practicable to control the risk of loss resulting from overconcentration of assets in a specific maturity, issuer, instrument, dealer, or bank through which financial instruments are bought and sold. Diversification strategies within the established guidelines shall be reviewed and revised periodically, as deemed necessary by the board. http://www.f1senate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&Search - Stn... 7/9/2004 :statutes & ConstItutIon :View Statutes :->2003->ChOI12->Section 661 : flsenate.gov Page 2 of3 (9) EXPECTED ANNUAL RATE OF RETURN.--The investment policy shall require that, for each actuarial valuation, the board determine the total expected annual rate of return for the current year, for each of the next several years, and for the long term thereafter. This determination must be filed promptly with the Department of Management Services and with the plan's sponsor and the consulting actuary. The department shall use this determination only to notify the board, the plan's sponsor, and consulting actuary of material differences between the total expected annual rate of return and the actuarial assumed rate of return. (10) THIRD-PARTY CUSTODIAL AGREEMENTS.-,The investment policy shall provide appropriate arrangements for the holding of assets of the board. Securities should be held with a third party, and all securities purchased by, and all collateral obtained by, the board should be properly designated as an asset of the board. No withdrawal of securities, in whole or in part, shall be made from safekeeping except by an authorized member of the board or the board's designee. Securities transactions between a broker-dealer and the custodian involving purchase or sale of securities by transfer of money or securities must be made on a "delivery vs. payment" basis, if applicable, to ensure that the custodian will have the security or money, as appropriate, in hand at the conclusion of the transaction. (11) MASTER REPURCHASE AGREEMENT,--The investment policy shall require all approved institutions and dealers transacting repurchase agreements to execute and perform as stated in the Master Repurchase Agreement. All repurchase agreement transactions shall adhere to the requirements of the Master Repurchase Agreement. (12) BID REQUIREMENT. -- The investment policy shall provide that the board determine the approximate maturity date based on cash-flow needs and market conditions, analyze and select one or more optimal types of investment, and competitively bid the security in question when feasible and appropriate. Except as otherwise required by law, the most economically advantageous bid must be selected. (13) INTERNAL CONTROLS. --The investment policy shall provide for a system of internal controls and operational procedures, The board shall establish a system of internal controls which shall be in writing and made a part of the board's operational procedures. The policy shall provide for review of such controls by independent certified public accountants as part of any financial audit periodically required of the board's unit of local government. The internal controls should be designed to prevent losses of funds which might arise from fraud, error, misrepresentation by third parties, or imprudent actions by the board or employees of the unit of local government. (14) CONTINUING EDUCATION.--The investment policy shall provide for the continuing education of the board members in matters relating to investments and the board's responsibilities. (15) REPORTING.--The investment policy shall provide for appropriate annual or more frequent reporting of investment activities. To that end, the board shall prepare periodic reports for submission to the governing body of the unit of local government which shall include investments in the portfolio by class or type, book value, income earned, and market value as of the report date, Such reports shall be available to the public. (16) FILING OF INVESTMENT POLlCY,--Upon adoption by the board, the investment policy shall be promptly filed with the Department of Management Services and the plan's sponsor and consulting actuary. The effective date of the investment policy, and any amendment thereto, shall be the 31st calendar day following the filing date with the plan sponsor. (17) VALUATION OF ILLIQUID INVESTMENTS.--The investment policy shall provide for the valuation of illiquid investments for which a generally recognized market is not available or for which there is no consistent or generally accepted pricing mechanism. If those investments are utilized, the investment policy must include the criteria set forth in s. lliAZ(6), except that submission to the Investment Advisory Council is not required. The investment policy shall require that, for each actuarial valuation, the board must verify the determination of the fair market value for those investments and ascertain that the determination complies with all applicable state and federal requirements. The investment policy shall require that the board disclose to the Department of Management Services and the plan's sponsor each such investment for which the fair market value http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&Search - Stri... 7/9/2004 Statutes & ConstItutIon :View Statutes :->2003->ChOI12->Section 661 : flsenate.gov is not provided. Page 3 of3 History,us, 2, ch, 2000-264, o;,claimec: The information on thi, 'ystem i, unverified. The journals or printed bill, of the ,e'pective chambeo; ,hould be consulted fo' official purposes. Copyright <C 2000-2004 State of Florida. http://www.flsenate.gov/Statutes/index.cfm?p=2&App - mode=Display - Statute&Search - Stri... 7/9/2004 CITY OF AVENTURA POLICE PENSION PLAN SUMMARY PLAN DESCRIPTION DRAFT DATED: June 1,2004 SUMMARY PLAN DESCRIPTION CITY OF AVENTURA POLICE PENSION PLAN INTRODUCTION This document is intended to be a plain language summary of the administration and benefits provided by the City of Aventura Police Pension Plan. While efforts have been made by the Board of Trustees to provide an accurate summary, this document is not the official plan document and your actual benefits are governed by the appropriate provisions of the actual statutes and ordinances which create this Plan, the Code of the City of Aventura, and Chapters 112, Part VII and Chapter 185, Florida Statutes. If there is any conflict between those legislative provisions and this summary, the legislative provisions control. The plan was recently adopted with the ,copies of which are available upon request. enactment of Ordinance Number (NOTHING IN THIS DOCUMENT IS INTENDED TO NOR DOES IT CREATE A CONTRACT OF EMPLOYMENT OR A CONTRACT FOR BENEFITS GREATER THAN THAT PROVIDED BY LAW.) Any questions you have regarding your rights or benefits under this Plan should be directed to the Plan Administrator: -1- WHAT IS THE OFFICIAL NAME OF THE PLAN? The official name of the Plan is the City of Aventura Police Pension Fund. WHAT TYPE OF PLAN IS THIS? This is a defined benefit plan. This means the amount of benefits that you receive is a percentage of your salary multiplied by years of service in the Police Department. Money is contributed to the Fund by you, the City and the State of Florida pursuant to an insurance premium rebate program established by the State of Florida pursuant to Chapter 185, Florida Statutes. Under Florida law, the City is ultimately responsible for making certain that the Plan is actuarially sound. HOW IS THE PLAN ADMINISTERED? The Plan is administered by a five member Board of Trustees. Two of the Trustees are active police officers who are elected by active members of the Plan; two of the Trustees are appointed by the City and must be legal residents of the City, and a fifth member is appointed by the other four by majority vote, The fifth member need not be a resident of the City. The Board of Trustees is responsible for directing the investment of the assets of the Pension Fund to ensure that there will be adequate monies for future benefits. The Fund's money is invested by professional money managers whose performance is monitored by investment professionals on a quarterly basis to ensure that the Board is receiving a proper return on the investment of pension assets. -2- The Fund employs a professional actuary who helps determine the cost of future benefits; accountants who determine the proper allocation of monies; and an attorney with expertise in the area of public pension law to advise the Board of Trustees. With the assistance ofthese professionals, the Board ofTrustees is responsible for interpreting and applying the pension ordinance and for determining eligibility on all benefit claims. The Trustees serve a two year term and are eligible for re-election or re- appointment. The Trustees receive no compensation for their service, and they only receive reimbursement for travel and for educational activities on behalf of the Fund. In order to keep up on the latest trends in pension management, Trustees are expected to regularly attend schools and seminars pertaining to the management of pension funds for public employees. The current Board of Trustees are: In accordance with Florida law, the Chairman is the registered agent for service of process and his business address is: -3- In the absence of the designated Chairman, any member of the Board of Trustees is subject to service of process. WHO ADMINISTERS THE DAILY BUSINESS OF THE PLAN? The Board has delegated daily administrative tasks to whose address is: Telephone number: The day-to-day record-keeping functions of the Plan are the responsibility of the Plan Administrator. All records and books of the Plan, except medical records, are available for public inspection at the office of the Pension Administrator. WHAT ARE THE LEGAL DOCUMENTS CREATING THE PLAN? The Plan arises out of the Code of the City of Aventura, Chapter 112, Florida Statutes and Chapter 185, Florida Statutes, which provides a system for the taxation of certain insurance policies covering property located within the City of Aventura. WHAT IS REQUIRED TO PARTICIPATE IN THE PLAN? The Plan is open solely to active police officers of the City of Aventura. A police officer is any person employed full time in the Police Department of the City, who is certified as a police officer as a condition of employment in accordance with the provisions of Florida Statutes and whose duty it is to protect life and property and exercise lawful -4- arrest powers of the State of Florida. This definition includes all supervisory and command personnel whose duties include, in whole or in part, the supervision, training, guidance, and management responsibilities of full time police officers. All full time police officers of the City of Aventura, except the Chief of Police, must participate in this pension plan. WHAT MUST I CONTRIBUTE TO THE PLAN? Each active member of the Plan contributes 6.3% of their compensation to the Plan. This contribution is accomplished through what is known as a "pick up" plan. A pick up plan provides for the withdrawal from an employee's pay of the 6.3% contribution prior to the time that the pay is subjected to federal income taxation. The money is then placed directly in the Pension Plan on behalf of the employee by the City. The purpose of the pick up plan is to allow an employee to defer taxation on the contribution until such time as an employee actually receives a pension. The pick up plan is authorized pursuant to City Ordinance and the provisions of Section 414(h)(2) of the Internal Revenue Code. WHAT BENEFITS DO I RECEIVE FROM THE FUND? The following benefits are available from the Pension Fund: a. Normal Retirement Date. Members are eligible for normal service retirement on the first day of the month on or next following the date upon which the member has reached age 55 with ten yeas of service, or has completed twenty-five (25) years of credited service. In determining when the member has completed twenty-five (25) years -5- of service, years of service are computed by measuring months from the employment date through the termination date, counting each whole month as 1/12 year and ignoring partial months. b. Normal Retirement Benefit. Upon reaching their normal retirement date, members who have attained a vested interest in the Plan are entitled to a retirement benefit of 3% of final monthly average compensation, multiplied by the number of whole and partial years of service up to a maximum of eighty (80%) percentforthe first forty (40) years of total service. After forty (40) years of service, benefit accrual recommences at a rate of two (2%) percent per year. c. Final Monthly Compensation. Final monthly compensation means the average monthly rate of the Participant's Compensation for the five best out of the past ten years of credited service. Final monthly compensation includes a Participant's base pay for regular hours worked as an employee, overtime pay, amounts paid for administrative leave, bereavement leave, compensatory time paid in lieu of regular wages, court time, Garcia days for K-9 service, holiday leave taken in lieu of regular pay, job basis leave, jury duty, light duty, paid military leave, personal leave taken in lieu of regular pay, storm leave, storm/hurricane pay, suspension with pay, pay for time off due on the job injury, vacation leave taken in lieu of regular pay, and workers' compensation paid by the City, but excludes pay received for off-duty details for third parties, whether or not the payment is made through the City. Final monthly compensation shall not include payouts of accumulated leave taken as cash upon separation from service. Retroactive payments shall be credited to the calendar year in which such payments would have been received had they been timely paid. -6- d. Years of Service. Years of service are computed in whole and partial years by measuring months from the Employment Date through the Termination Date counting each whole completed month as 1/12 year and ignoring any partial months. e. Earlv Retirement. If a member completes ten (10) years of service and is age forty-five (45), the member may elect an early retirement benefit. The early retirement benefit will be payable on the first day of each month on or after the date that the Participant actually retires. The amount of the benefit is the amount the Participant could have received as a normal retirement benefit reduced for early payment so that it is the actuarial equivalent of the normal retirement benefit. f. Dutv Disabilitv Benefit. If a member becomes permanently and totally disabled from useful and efficient service as a police officer as the result of an accident, illness, or injury arising in the line of duty, a member is entitled to a disability pension which is the greater of either the member's accrued benefit at the time of disability, or 42% of final average earnings. A duty disability pension is payable in the form of a ten (10) year certain and life annuity (described below in subsection i), unless the member selects an optional form of payment (described below in subsection j). g. Non-dutv disability benefit. If a vested member with ten or more years of service credited is injured outside the line of duty, the member is eligible for a non-service connected disability retirement. The non-service incurred disability benefit shall be paid on a monthly basis in an amount equal to three (3%) percent of final monthly compensation multiplied by the number of years of credited service, but shall not be less than thirty (30%) percent of average monthly compensation -7- Payments of disability benefits for either duty or non-duty disabilities continue until the death of the member or recovery from the disability. h. Disability Procedure. A member seeking a disability retirement should request a disability application from the administrator and is required to submit proof of the disability. After reviewing a disability application, the Board shall require the applicant to submit to an independent medical examination conducted by a physician or physicians selected by the Board. A member applying for a disability benefit has the right to request a formal evidentiary hearing at which time medical reports will be considered, and the member will have an opportunity to present his or her own evidence and cross examine all witnesses. A member who receives a disability pension can be reexamined by the Board at any time prior to the member's normal retirement date, and if found to have recovered, must resume active service with the City. If a member recovers, yet refuses reemployment with the City, the disability pension will be terminated. Disability benefits may not be awarded to a member whose employment terminated prior to the member's becoming disabled, nor may a member receive a disability benefit as the result of a self-inflicted injury or any disability resulting from the habitual use of narcotics or alcoholic beverages. i. Payment of Normal Retirement Benefit. Pension benefits may be paid in a number of ways. The normal form of retirement is a ten-year certain and life annuity. This means that a member is guaranteed 120 payments regardless of whether the member dies prior to the 120th payment. If the member dies prior to receiving at least 120 monthly payments, monthly payments will be made to the member's beneficiary until a total of 120 payments -8- have been made. If a member dies after his or her normal retirement date but before receiving benefits, the member's beneficiary shall be entitled to 120 monthly payments in an amount equal to that which the member would have received had the member retired on the date of death. If a member is still alive after the payment of the 120th pension check, the pension continues for the life of the member, but there is no survivorship benefit paid to a spouse or any other beneficiary upon the member's death. j. Optional forms. Members may also take other forms of a joint and survivor annuity. This means that a member may choose to receive a benefit during the member's lifetime and to have the benefit continue after death to the member's spouse or other designated survivor for the remainder of the spouse's or other designated survivor's life. The options for the joint survivor annuity are to leave a fifty (50%) percent, sixty-six and two-thirds (66 2/3%) percent, seventy-five (75%) percent, or one hundred (100%) percent benefit to the surviving beneficiary. The consent of a member's joint annuitant is not required for the selection of any option. After electing a joint and survivor annuity, a retiree may thereafter change the designated joint pensioner, but only if the Board consents to such change and if the joint pensioner last previously designated is still alive. The consent of a member's joint pensioner to any such change shall not be required. The Board may request evidence of the good health of the joint pensioner that is being removed and the amount of the retirement income payable to the retiree upon the designation of a new joint pensioner shall be actuarially redetermined taking into account the ages and sex of the former joint pensioner, the new joint pensioner, and the member. -9- If a joint pensioner dies before the member has retired, the selected option is canceled and the retirement income automatically converts to a straight life pension payment, unless the member designates a new beneficiary prior to retirement. Another option a member may choose is a single life annuity. This means that a members benefit will continue for his or her life, but upon death the benefit ceases. There is no minimum payment guaranteed and no survivor benefit under this option. k. Vesting. A member is considered "vested" upon the completion of 10 years of credited service. If a police officer leaves the service of the City with less than 10 years of credited service, all accumulated contributions are returned to the member. If the member earns 10 years of credited service and then leaves the Police Department, the member may receive either a return of contributions or an accrued benefit with payment beginning at the member's normal retirement date. Refunded contributions may be paid directly to the member or may be rolled over to another qualified plan, including an individual retirement account (IRA), If contributions are refunded to a member, the member will no longer be eligible for a pension benefit from the Plan. ARE BENEFITS IN THIS PLAN FORFEITABLE? As discussed above, if you separate from service before you vest, you will not receive any benefits from the Plan, although you are entitled to a refund of your contributions. In addition, benefits are forfeitable pursuant to the provisions of Section 112.3173, Florida Statutes, which provides for the forfeiture of retirement benefits of persons convicted of specific crimes. -10- ARE MY PENSION BENEFITS SUBJECT TO CLAIMS FOR ALIMONY, CHILD SUPPORT OR ANY OTHER CREDITOR? Under state law and local ordinance, this Plan is exempt from claims of creditors. The only exception is a court award of child support or spousal support. Under Florida law, there is a specific exemption permitting these payments to be made from the Fund. In a divorce proceeding, a court can order a police officer to pay a portion of his or her benefits to a spouse once that benefit is received. Once pension monies are actually paid to a retiree, the pension money is no longer exempt from attachment or claim by any creditor. In order to guarantee that the Pension Board follows the requirements of properly entered divorce decrees, members are required to submit all divorce decrees to the Board of Trustees. Members are encouraged to submit draft copies of divorce orders to the Pension Board for review, prior to the entry of a final divorce decree. ARE MY PENSION BENEFITS TAXABLE? Service retirement payments and non-duty disability pensions are taxable as ordinary income. The retiree will receive a tax form from the Pension Fund at the end of each January reporting the income received in the prior year. Service-connected disability retirement pensions, coordinated with Worker's Compensation, are generally considered to be tax exempt. Service connected death benefits are also exempt from taxation. For specific tax advice you should consult a qualified tax expert. -11- HOW DO I APPLY FOR BENEFITS? Application for service retirement benefits is made by submitting a retirement application with the Pension Administrator. Application for disability retirement requires the completion of a disability application form and submission to such medical exams as may be determined by the Board. All applications may be obtained from the Administrator. If a member is dissatisfied with any benefit application brought before the Board, the member has the opportunity to appeal that decision within 30 days of the date of any written decision by the Board by filing a petition for common law certiorari in the Circuit Court of Miami-Dade County, Florida. ON WHAT BASIS ARE PLAN RECORDS KEPT? The Board keeps accurate and detailed accounts of all investments, receipts, disbursements, and other transactions pertaining to Fund property. The Board's secretary keeps a record of all its proceedings and they are available for public inspection. The Board's meetings are open to the public, under the Government In Sunshine Law. ARE THERE COLLECTIVE BARGAINING AGREEMENTS THAT GOVERN THE PLAN? From time to time, the membership and the City may negotiate Plan changes. Any contract provision must be made effective by changing the ordinances which govern this Plan. The current collective bargaining agreement between the City and the Police Benevolent Association provides for this Plan in Article 29. The contract expires in September, 2005. -12- WHAT IF I HAVE FURTHER QUESTIONS REGARDING MY BENEFITS? All questions should be directed in writing to the Plan Administrator. SUMMARY The foregoing Summary Plan Description has been designed to help answer some of your questions about how your Pension Plan is organized and managed. The final authority on any interpretation ofthe Pension Plan, however, is the actual legislation which created the Plan. In the event of any conflict between this booklet and those laws, the provisions in law control. The ordinances governing your Plan can be found within the Code of the City of Aventura. IlIpl030033\Summary Plan Description -13- CITY OF AVENTURA POLICE PENSION FUND OPERATING RULES & PROCEDURES DRAFT CONTENTS Page TABLEOFCONTENTS ...,."....,...,.....1 RULE 1 BOARD OF TRUSTEES ..,...."....,...,..2-7 RULE 2 COMMUNICATIONS AND RELATIONS WITH THE City... " ."". ..,.8-10 MEETINGS ..,."...."..."...,....,..11-14 RULE 3 RULE 4 INVESTMENT OF FUND ASSETS ..........15-19 RULE 5 PROFESSIONAL SERVICES, . , . . . . . . . . , , . 20-23 RULE 6 PAYMENT OF BENEFITS, . . . . . . . , . . , , . . . 24-27 RULE 7 DISABILITY PROCEEDINGS. . , . . . . , , . . , . . 28-33 RULE 8 CODE OF ETHICS FOR TRUSTEES......,. 34-36 SIGNATURE PAGE .,.......,....,...,..,,37 -1- RULE 1 BOARD OF TRUSTEES 1,1 FUNCTIONS The Board of Trustees shall: act as the named fiduciary of the Fund as defined by Florida law; have the exclusive authority to operate, maintain and interpret the provisions of the local ordinances establishing the Pension Fund; be responsible for establishing and executing the investment policy of the Fund; select and retain professional advisors to the Fund, including but not limited to accountants, actuaries, administrators, attorneys, banks and custodians, investment managers, performance monitors and any others deemed necessary to the Fund's operation; determine all claims for retirement or disability benefits; prepare and distribute a Summary Plan Description as provided by Section 112.66, Florida Statutes; direct such actuarial and accounting functions as are required by law; file reports with the State of Florida, the City Commission, and other appropriate bodies; and fulfill all other such duties as may be required by prudence and law. All business of the Fund and of the Trustees shall be conducted pursuant to the provisions of the Aventura City Code, Florida Statutes and applicable federal law. -2- 1.2 DEFINITION OF FIDUCIARY A fiduciary shall be defined as a person responsible for the discharge of their duties with respect to the pension plan for the exclusive purpose of providing benefits to participants and their beneficiaries and defraying the reasonable expenses of administering the plan. The Board of Trustees as fiduciaries of the Fund shall hold, manage, control and safeguard the Fund solely in the interests of members of the plan. The Trustees are authorized by law to purchase fiduciary liability insurance at the expense of the plan. 1.3 ELECTION PROCEDURES The Board of Trustees shall consist of five persons, two of whom shall be appointed by the City Commission, two of whom shall be elected by active members of the plan, and a fifth member who shall be chosen by a majority of the other four Trustees and appointed as a ministerial act by the City Commission. The two City appointed Trustees shall be legal residents of the City, They shall each be appointed in odd-numbered years for a term of two years but shall serve at the pleasure of the City. Elections for the two Trustees elected by members of the plan shall be conducted fþ~ by the yu~ in even-numbered years. Elections shall be by ballot. The two candidates receiving the highest number of votes shall be certified elected by the City Clerk. They shall take office immediately upon being certified...",d UfJon ~ ,!:¡ II,,=, vall, of officI!. Elected Trustees shall serve a two-year term, unless they terminate employment during their term, -3- The Fifth Trustee shall be chosen by a majority of the other four Trustees and may be an active or retired member of the Plan. Appointment of this fifth member must be made as soon as is practicable following the election of the elected Trustees, The fifth Trustee shall also serve a two-year term. The Fifth Trustee shall be appointed by the City as a ministerial act. All Trustees are obligated to maintain their fiduciary roles as Trustees until such time as their replacements are named, appointed or elected as the case may be, and receive the oath of office. Vacancies on the Board of City-appointed Trustees shall be filled by the City Commission. Trustees appointed by the City Commission to fill vacancies on the Board shall serve the remainder of the term of the Trustee who created the vacancy. Vacancies on the Board of elected Trustees shall be filled by special election to be conducted in the same manner as the regular biennial election. Trustees so elected shall serve until the end of the two-year term in which the vacancy occurred. In the event of a vacancy in the fifth Trustee position, the Board shall choose a successor in the same manner as the initial selection. The Fifth Trustee selected in this manner shall serve until the end of the two-year term in which the vacancy occurred. 1.4 OFFICES The Trustees shall elect from among their members a Chairman and a Secretary who shall serve for two years. -4- The Chairman shall be responsible for the conduct of all meetings of the Board and shall have voting rights the same as other members of the Board. The Chairman shall be the agent for service of legal process, unless the Trustees by a majority vote shall name another agent. The Chairman is authorized to give direction to legal counsel and others having business with the Fund between meetings. Such activities shall be reported to the other Trustees at the next meeting. The Chairman shall perform such other duties as the Trustees may assign. In the Chairman's absence, the Secretary shall serve as Acting Chairman. The Secretary shall be responsible for the minutes of all regular and special Board meetings and shall be the official custodian of records of the Fund. The Secretary together with the Chairman shall execute all official contracts of the Fund. 1.5 DISCLOSURE AND CONFLICT OF INTEREST All Trustees shall complete financial disclosure forms on an annual basis as required by law. Said disclosure forms shall be filed with the Supervisor of Elections of Miami-Dade County. Conflicts of interest in voting shall be governed by the provisions of Section 112.3143, Florida Statutes, the Code of Ethics for public officials. Notwithstanding any other provision of law, no Trustee shall vote or participate in a determination of any matter in which that Trustee shall receive a personal gain, except in the case of employee Trustees voting on benefits applicable to all members of the plan. -5- 1.6 COMMITTEES The Board may, from time to time, delegate any of its functions to a committee of one or more Trustees, In the event that a committee shall consist of more than one Trustee, the committee shall meet in accordance with the provisions of the Florida Government in the Sunshine Law. All committees shall be appointed by the Chairman or the Board. 1.7 PER DIEM AND REIMBURSEMENT Trustees shall serve without compensation. However, Trustees are entitled to receive a per diem and reimbursement for reasonable expenses incurred in conducting the business of the Fund. The per diem and reimbursement rate for all Trustees shall be no less than that provided for in Florida Statutes Chapter 112, and may be increased in the Board's discretion. The per diem r te, $100.0 as of the date of adoption of these rules, does not include lodging but does inclu e meals and other miscellaneous expenses. The r mile, or the IRS rate, whichever is greater, when traveling outside Miami-Oa advance shall be refunded for any days not used. 1.8 TRUSTEE EDUCATION All Trustees are encouraged to attend educational programs in connection with their duties and responsibilities as Trustees. Registration fees, travel and hotel expenses, as well as per diem and reimbursement for other reasonable expenses are ButeFRatic3Hy approveq for any Tru:tee who is available to attend programs offered by the Florida Public \~ {1.~~ -6- ~ ~ '~~ ' Pension Trustees Association (FPPTA), the National Conference on Public Employee Retirement Systems (NCPERS), the International Foundation of Employee Benefit Plans (International Foundation) and the Florida State University Police Officers' and Firefighters' Trustees' Schools. Other conferences and schools may be approved by a majority vote of the Board on a case-by-case basis. Following the conference, trustees are expected to report to the Board at the next scheduled meeting on topics of interest from the conference along with any educational information that may be relevant to the operation of the Fund. 1.9 OPERATING RULES AND PROCEDURES The Board of Trustees is authorized by law to establish rules of procedure for the operation of the Fund. No rule or regulation of the Fund may conflict with any lawful ordinance, charter provision or state law. All rule changes shall occur at a regular meeting of the Board. Prior to any rule change, an opportunity shall be offered to members and beneficiaries of the Fund to comment on any rule change and to make appearance before the Board as they shall desire. All rules to be adopted by the Fund shall be in writing and shall be adopted by a majority vote of the Board. The Board shall review its rules and regulations on a periodic basis. The rules and regulations of the Fund shall be reproduced and distributed, upon request, to any Plan member. -7- RULE 2 COMMUNICATIONS AND RELATIONS WITH THE CITY 2,1 INDEPENDENT ENTITY The Board of Trustees is an independent entity established by state law and City ordinance. As provided in Chapter 185, Florida Statutes, the Board of Trustees shall not be considered a component part of nor subordinate to the City of Aventura government. However, the Trustees shall establish and maintain communications with City departments as is necessary for the management of the plan. 2.2 CITY AS INDEPENDENT CONTRACTOR In accepting services from the City of Aventura, the Board shall treat the City as an independent contractor. To this end, the Board may deem it advantageous to reduce the precise duties of the City to writing the same as any other contract for services entered into by the Board. 2,3 PENSION ORDINANCE The City Commission has continuing power to amend or supplement the ordinances affecting the pension plan. The Board may make recommendations to the City ~~~IIIIIII~:>itJn concerning amendments. Proposed ordinances shall be reviewed by the Board's attorney who shall pass on the form and correctness of the ordinance. All proposed ordinance changes that carry an economic benefit shall be reviewed by the Board's actuary to determine the cost. No benefit change shall occur without an actuarial -8- impact study as required by state law. All such actuarial impact studies shall be at the expense of the Fund. 2.4 COLLECTIVE BARGAINING The Board of Trustees acknowledges that it is neither an employee organization nor an employer as defined byChapter447, Part II, Florida Statutes. Therefore, the Board does not engage in collective bargaining on behalf of the City of Aventura or on behalf of any employee organization. The Board shall make itself available as a resource to labor organizations and the City for all matters relating to pensions and retirement. The Board may make its professional advisors available as a resource in the collective bargaining process and in this event will assume responsibility for professional fees incurred. 2.5 ACTUARIAL IMPACT STUDIES When a change in actuarial assumptions is considered by the Board, reasonable notice shall be given to the City Manager prior to the first meeting of the Board to consider any such change or any proposal or recommendation related thereto. Notice by agenda publication and the forwarding of a copy of the agenda to the City Manager's attention shall constitute notice hereunder. Reasonable notice shall be given of any subsequent meetings at which the issue of a change in the actuarial assumptions or a related proposal or recommendation is to be considered. -9- 2.6 APPEARANCE AT CITY COMMISSION MEETINGS The Board of Trustees may, through one of its members, its administrator or its attorney, be represented at all City Commission meetings where a discussion of matters of interest to the Board is scheduled to occur. The Board may, prior to said meeting, designate an official spokesman to speak on behalf of the Fund, -10- RULE 3 MEETINGS 3.1 SCHEDULE The Board of Trustees shall set its own schedule of meetings, which shall be held 7 at least quarterly. As of the date of the adoption of these Rules, the Board has scheduled regular meetings on the second Tuesday of each month. The regular meeting held at the end of each calendar quarter is designated as the quarterly meeting for receipt of investment reports. Special meetings may be called by the Chairman or by a majority of the Trustees upon notice as set forth in these Rules. 3.2 ATTENDANCE AT MEETINGS In recognition of the importance of the work of the Board, regular attendance at Board meetings is expected of all Trustees. Any Trustee who fails to attend two consecutive meetings of the Board or who misses 3 meetings in a 6-month period without an excuse acceptable to the other Trustees shall be warned in writing of the Board's attendance policy. In the case of a City-appointed Trustee, notice shall also be sent to the City Commission. Trustees who are called into the active service of the City at the time of a Board meeting shall automatically be deemed excused. After a Trustee has been warned by the Board regarding their attendance, any further unexcused absences shall result in remedial action by the Board. -11- 3.3 GOVERNMENT IN THE SUNSHINE All meetings of the Board shall be held in a location where public access is reasonably available, An adequate meeting room in the City administrative complex shall be the preferred location; however the Trustees may select another location as long as it is accessible to the public. All meetings of the Board shall be conducted in accordance with the provisions of Section 286.011, Florida Statutes, the Government in the Sunshine Act. No Trustee shall engage in communications with another Trustee outside of a public meeting on any matters of official Board business. Committees consisting of two or more Trustees shall hold meetings in accordance with the Government in the Sunshine Law. 3.4 PUBLIC RECORDS Records of all Board and Committee proceedings shall be maintained and open to public inspection in accordance with Chapter 119, Florida Statutes, the Public Records Law. Such records shall reflect a complete and comprehensive account of the discussions and actions taken by the Board. Copies of the minutes shall be sent promptly to the City Clerk, as custodian of the City's records. Medical records of any plan participants and certain personal information are excepted by law and shall be maintained so as to insure security of privileged information concerning participants' medical and other exempt records. 3.5 NOTICES Notices of all regular and special Board meetings, as well as meetings of committees of two or more members, shall be posted in advance of the meeting as -12- required by City ordinance and state law. Notices shall contain, at a minimum, the meeting agenda and the date, time and place of the meeting. Notices shall be posted in a prominent place in the Police Department and shall be provided at least five business days in advance of the meeting to the City Clerk for posting a~ j Ðù +. Q- ~ 3,6 AGENDAS; MEETING MATERIALS An agenda shall be prepared for each regular and special meeting of the Board. The agenda shall set forth those items upon which the Board anticipates having discussion or taking action. Each agenda item shall if possible have included with it backup material necessary for consideration by the Board. Agendas shall also inform members of the public that should they wish to appeal any decision made by the Board they will need a record of the proceedings and that they may need to insure a verbatim record which includes testimony and evidence upon which the appeal is based. All agendas and meeting materials are public records as defined by Chapter 119, Florida Statutes. 3,7 WORKSHOPS The Board may from time to time wish to conduct workshop meetings for the purpose of developing policies or procedures of the Board or for review of investment or other data. Workshops shall be conducted in a public forum the same as any other meeting and shall have a published agenda in advance of the workshop. -13- 3.8 RULES OF ORDER In recognition of the importance of accomplishing the objectives of the Board in an orderly manner, the Board may establish parliamentary rules of order for the conduct of its meetings. In the event that a question of procedure should arise for which no rule has been previously established, the Board may rely on rules and procedures contained in the current edition of Roberts Rules of Order Newly Revised. No rule or procedure adopted by the Trustees may conflict with any City ordinance or state law. -14- RULE 4 INVESTMENT OF FUND ASSETS 4.1 INVESTMENT POLICY STATEMENT The Board shall establish written investment goals and objectives. The goals and objectives shall set forth the allocation of the Fund to be distributed to each investment category and shall establish expected rates of return. Review of the Board's investment policy shall take place at least annually. 4.2 INVESTMENT MANAGERS In recognition of the importance of professional guidance in the investment of the assets of the Fund, all investments shall be performed by qualified, professional investment managers. The Board may employ a multi-manager team in order to diversify plan assets and minimize the risk associated with dependence on the success of one enterprise. Managers shall be selected at official meetings of the Board of Trustees by a majority vote of the Board. All proposals for investment manager services shall be presented in writing. Such written proposals shall be made a part of the records of the Board. Managers may be selected to provide diversification of orientation (e.g., value versus growth) as well as for their expertise in the investment of stocks versus bonds. -15- Each investment manager shall enter into a written contract with the Board. All contracts shall be reviewed by the Board's legal counsel. The contract shall set forth the written investment standards and performance goals and objectives applicable to that manager. Each contract shall include an acknowledgment by the manager that it is familiar with the ordinances of the City of Aventura and the provisions of Chapters 112 and 185, Florida Statutes, The contract shall also provide that the manager shall make no purchases that are prohibited by law and in the event such purchase is made, the plan shall be made whole for any loss incurred in the divestiture of said investment. Managers shall agree in writing that they are fiduciaries. The Trustees shall direct each manager to provide monthly written reports of the status of the portion of the Fund under their management. Quarterly reports shall be presented in person by a representative of the investment manager who has authority to make discretionary decisions with regard to the plan's account and to settle any claims or disputes arising from their contract. Attendance at Board meetings shall be at the manager's expense. The Board shall give all investment managers proxy-voting responsibility, which the Trustees shall monitor. Records of all proxy votes shall be maintained and made available to the Trustees. The managers acting on behalf of the Board shall vote all proxies to the benefit of fund assets. In an effort to recapture a portion of brokerage commissions paid by managers in connection with transactions in the Fund's account, the Trustees may arrange with one or more firms to provide such services for the plan. Commission recapture -16- programs are not intended to hamper the effectiveness of the managers. Funds received from the commission recapture program shall be set aside in a separate account and used for educational or administrative purposes. No manager shall be compensated with other than hard dollars. Termination of any manager may be with or without cause. 4.3 PERFORMANCE MONITOR The City of Aventura pension ordinance provides that the Board may retain a professionally qualified independent consultants to evaluate the performance of its investment managers. The Board may, in its discretion, engage a performance monitor on an ongoing basis. The performance monitor shall attend at least 1 meeting per quarter and shall report on the performance of each manager. The report shall include a comparison of the relative performance of each manager to the various stock and bond indices, as appropriate. The performance monitor shall recommend in writing to the Board the retention or discharge of investment managers and the reasons supporting its recommendations. Attendance at Board meetings shall be at the performance monitor's expense, As the investment advisor to the Fund, the performance monitor shall continuously monitor the investments to be certain that they are in compliance with the Board's investment guidelines, City ordinances and applicable laws, and shall promptly alert the Trustees of any deviation. -17- The performance monitor shall recommend to the Board a transfer of assets between managers to achieve the desired balance, shall assist in a periodic review of the goals and objectives of the Fund and shall conduct a manager search as directed by the Trustees. The performance monitor shall be compensated on a fixed fee basis. The performance monitor shall agree in writing that it is a fiduciary. Termination may be with or without cause, 4.4 RETAINING NEW INVESTMENT MANAGERS AND ADVISORS In the event the Board elects to consider retaining a new manager or performance monitor, a Request for Proposal (RFP) shall be prepared and distributed to candidates known for their expertise in the public pension field. The Trustees may consult their legal counsel, present investment advisor or other professionals for advice on the language of the RFP. The initial screening of prospective managers and investment advisors may be performed by the Board or a committee of the Board as well as such professionals as the Board deems advisable. A short list of at least three candidates in each category the Trustees seek to fill shall be invited to make personal presentations to the Board. The Board may develop a weighted list of attributes including proposed fees to be used in making its final selection, which shall be by majority vote. All contracts for services shall be prepared by Fund counsel. -18- 4.5 CUSTODIAN The Board shall be authorized to use the services of a custodian who shall have custody of the assets of the Fund and who shall perform the banking functions of the Board. The custodian shall be duly licensed, insured and bonded and shall meet all requirements of Florida Statutes. The custodian shall keep accurate and detailed accounts of all investments, receipts, disbursements and other transactions pertaining to assets of the Fund. All accounts, books and records relating to the Fund shall be open for inspection and audit at all reasonable times by the City, the Board or their designees. The Trustees shall provide written instructions authorizing the custodian to accept direction as to disbursements or other Fund transactions and shall identify those individuals or officers from whom direction may be accepted. -19- RULE 5 PROFESSIONAL SERVICES The Board of Trustees has authority to retain professional advisors for assistance in the performance of its duties. In engaging professional services, the Board shall conduct an appropriate investigation into the qualifications and reputation of the applicants. While seeking competitive bids is a good general rule in the fulfillment of its fiduciary responsibility, the Board shall not be required to obtain competitive bids for professional services unless in its own discretion it shall choose to do so. All professional service providers may be terminated with or without cause. 5.1 ACTUARIAL SERVICES The Board of Trustees shall retain the services of an enrolled actuary. An enrolled actuary shall mean an actuary who is enrolled under Subtitle C of Title II of the Employment Retirement Income Security Act of 1974 (ERISA) and who is a member of the Society of Actuaries or the American Academy of Actuaries. An actuarial valuation shall be performed annually. All actuarial reports shall be in accordance with the City of Aventura ordinance code and state law. The actuary shall report to the Board on not less than an annual basis sufficient actuarial data so that the Board may establish the adequacy of employer and employee contribution rates. The amount of the employer contribution shall be certified in writing to the City in accordance with provisions of the ordinance. -20- No proposed change in retirement benefits shall be made without an actuarial determination of the cost impact of said change. Other actuarial services shall include attendance at one or more Board meetings each year, as may be deemed appropriate by the Board, preparation of individual employee benefit statements and calculation of benefits for those leaving the plan. The actuary shall also annually review the Board's actuarial assumptions and recommend any changes. In order to avoid conflicts of interest in the delivery of actuarial services, the Board shall not retain actuaries who are employed by the City of Aventura, unless the Board is determined to be the client. 5.2 ACCOUNTING SERVICES The Board shall retain the services of a Certified Public Accountant who is familiar with Trust Fund accounting to perform an annual audit of the assets and liabilities of the plan. The auditor shall attend at least one meeting of the Board to review the final report and discuss the findings developed in the course of the audit. The auditor shall promptly provide a complete copy ofthe audit report to the actuary for use in determining the current assets and future liabilities of the plan. In addition, a copy shall be provided to the Board of Trustees, the State of Florida Department of Insurance, Board Counsel, and the custodian of the Fund's assets. In order to avoid conflicts of interest, the Board shall not retain auditors who are employed by the City of Aventura unless the Board shall be determined to be the client. -21- 5.3 ADMINISTRATIVE SERVICES The Board may, in its discretion, retain the services of a qualified administrative manager to assist the Trustees, members of the plan and other professional advisors engaged by the Trustees. The administrator shall exercise no discretionary authority or control respecting the Fund but shall serve solely at the direction of the Trustees. The administrator shall be principally charged with assisting the Trustees in the discharge of their duties, maintaining necessary Fund records, responding to the participants' inquiries and needs for service, and public records requests made to the Fund. In order to avoid conflicts of interest, the Board shall not retain administrators who are employed by the City of Aventura. 5.4 LEGAL SERVICES The Board shall select and appoint a general counsel who shall be licensed to practice law in the State of Florida. Such counsel shall have demonstrated experience in the area of public employee retirement systems in the State of Florida, Counsel for the Trustees or a qualified attorney from the firm shall attend all meetings of the Board, unless otherwise instructed. In order to avoid conflicts of interest and in recognition of the responsibilities of the City Attorney to the City of Aventura and the potential for representing competing interests, the office of the City Attorney may not serve in any legal capacity on the part of the Fund. In all dealings between its attorney and the Board, the Board shall be deemed the client rather than any individual member of the Board. All communications between -22- the Board and its attorney shall be privileged communications except where otherwise governed by the Government in the Sunshine Law. The attorney shall take direction from the Board ofTrustees as may be given at the various meetings of the Fund. In between meetings of the Fund, direction to the attorney shall be given by the Chairman. All files of the Fund in the possession of the attorney shall be open for inspection by any Trustee. -23- RULE 6 PAYMENT OF BENEFITS 6.1 BOARD EXAM The Board of Trustees is authorized by law to conduct its own physical examination in addition to or in conjunction with the City employment physical. Employees shall, as a condition of membership in the plan, undergo such additional physical examination as the Board shall deem appropriate. Applicants for membership in the plan shall execute such releases as are necessary for the Board to review the results of said medical examination in the event that a member applies for a disability retirement. The examination by the Pension Board shall be conducted by a licensed physician and the results shall be sealed unless requested by the Board, 6.2 PRE-EXISTING CONDITIONS Any condition or impairment of health found to exist at the time of employment may not be the source of service connected disability or death benefits under the Fund. 6.3 SELECTION AND COMPENSATION OF PHYSICIANS The Board shall select and compensate physicians the same as any other independent contractor of the Board. All such contracts shall be in writing and approved by the Board. -24- 6.4 MAINTENANCE OF PARTICIPANTS' RECORDS The Fund office shall maintain a file for each current, terminated and retired participant. All new active employees shall be asked to provide a beneficiary designation form to be kept on file in the Fund office. In anticipation of vesting in the plan, members are also asked to elect a payout option in the event they should die before retirement. Confidentiality of records shall be provided for to the extent permitted by law. 6.5 APPLICATION FOR BENEFITS All applications for benefits shall be in writing on a form established by the Board ofTrustees, Application forms shall be maintained in the Fund office and shall be available upon request by any member. Upon receipt of an application for benefits, the Administrator shall contact the City's payroll department to determine the employee's final day of employment and to obtain sufficient payroll data to determine the employee's average salary for the 36 highest consecutive months, or the average of the best five of the last ten years, of service. The applicant's benefit options shall then be calculated and presented to the applicant for his or her election. In addition. the applicant shall be asked to furnish a birth certificate (or other proof of age), beneficiary's birth certificate (or other proof of age), indication of federal income tax withholding, direct deposit preference and any other matters to complete the application file. All of the pertinent information shall then be presented to the Trustees for approval. The first benefit payment shall be effective the first of the month following the member's eligibility for benefits, termination of employment and receipt of notice that the member wishes retirement benefits to begin. At the applicant's option, the latest actuarial report may be used as the basis for approving the -25- initial benefit amount, which shall be adjusted retroactively to the retirement date when data is available to calculate the final correct benefit. 6.6 ADMINISTRATIVE HEARINGS In the event that any member of the Fund shall make a request to the Board concerning any matter other than disability, said proceeding shall be conducted in accordance with the following procedure. In the event that any person shall be denied membership or any benefit in the Fund, other than disability, the member shall be advised in writing of the reason for denial. The member shall be advised of the right to appeal to a full hearing before the Board. All such notices shall be by certified or registered mail. Should the member elect a full hearing before the Board, the member shall be advised in writing as to the time, place and date of the meeting. The member shall have the right to be accompanied by counsel and to present such witnesses and evidence as the member deems probative of the claim, The Chairman shall be the presiding officer in any such hearing and shall make all rulings regarding evidence. In any such proceeding strict rules of evidence shall not apply and the Board shall be guided by general principles for the conduct of hearings under the Florida Administrative Procedures Act. Following the close of any such hearing, the Board shall conduct a public discussion and vote either granting or denying the request of the employee. The ruling of the Board shall be reduced to writing and mailed to the member by certified mail or registered mail. Said notice shall advise the member of the motion made, the vote -26- and the stated reason for said vote. The letter shall also advise the member of any existing appellate rights and the time limits for said rights. In the event that any employee wishes to have the proceedings before the Board stenographically recorded, said recording shall be at the expense of the employee. Any notice of hearing shall advise the applicant of the right to make a stenographic record and of the applicant's responsibility to make arrangements for same. 6.7 PARTICIPANT INQUIRIES In the course of administering the plan, the Trustees, administrator and other providers of service to the plan receive inquiries from members, The Board is desirous of maintaining cost control over fees charged by providers of services to the plan. No participant is authorized to incur expenses on the part of the administrator, attorney, accountant, actuary, investment manager or performance monitor without the express approval of the Chairman or the Board of Trustees. In the event that any such providers receive a direct inquiry from a plan member, the inquiry shall be referred to the Chairman or to the Board of Trustees who shall determine the appropriate response to be made. No provider of services to the plan is authorized to bill the plan for any services incurred in direct response to a participant inquiry without the approval of the Chairman or the Board of Trustees. -27- RULE 7 DISABILITY PROCEEDINGS 7.1 APPLICATION FOR BENEFITS All applications for benefits for disability retirement shall be in writing. The form of the disability application shall be uniform and established by the Board of Trustees. Applications shall be maintained in the office of the Pension Fund and shall be available upon request by any member. Each application for benefits for disability must be accompanied by a certificate of a physician or physicians of the employee's choosing as to whether the employee is permanently and totally disabled from further performance of services for the City, and the cause of such disability. The employee's application must include a statement indicating whether the employee has asked the City to make a reasonable accommodation under the Americans with Disabilities Act, and the City's response thereto. 7.2 MEDICAL RELEASES Each application for disability benefits shall be accompanied by release of medical information authorizing the Board or any of its agents to have full access to all medical records of the applicant whether or not the subject of the particular claim of disability, including City pre-employment and post conditional offer of employment physicals given by the City and/or the Board. In addition, all applicants shall authorize the Board of -28- Trustees to conduct a public discussion of the medical condition of the applicant and shall release the Board from any liability for the public discussion of the medical condition of the applicant. 7.3 EXAMINATION BY A PHYSICIAN The Board may establish a medical committee consisting of physicians of various disciplines who shall, upon request of the Board, examine applicants for disability retirement. Upon receipt of a complete application for disability retirement benefits, the Board may refer the applicant to a physician of the Board's choosing for evaluation of the applicant's medical condition. The physician appointed by the Board will review the applicant's records and examine the applicant, if necessary, and shall file a written report of his findings to the Board. The term "physician" as utilized in these rules shall mean any licensed medical doctor, or as otherwise determined by the Board. All such examinations shall be conducted at the expense of the Board. 7.4 PRIVATE INVESTIGATORS The Chairman, after consultation with Board Counsel, shall have the authority to retain a Private Investigator to conduct surveillance on applicants for disability benefits. The Investigator shall enter into a written contract with the Chainman on behalf of the Board which shall be reviewed by the Board's legal counsel. The contract for services shall be at a reasonable and competitive rate. The Investigator shall file a written report of the surveillance with the Chairman upon the conclusion of the surveillance. Once the report -29- is filed, the Board shall be apprised of the surveillance and approve the expenditure related to the surveillance at the next Board meeting. 7.5 DISABILITY HEARINGS All questions relating to eligibility for initial payment and continuance of disability benefits will be determined by the Board. Following receipt of a completed application, the Board will consider, at a public meeting, the reports of its physician, those of the applicant's treating physician and any other statements which the applicant or his representative choose to make or present to the Board, The Board will thereafter conclude whether the employee is permanently and totally disabled within the meaning of the ordinance, and the cause of such disability. In reaching this determination, the Board may consider not only the physicians' reports presented, but can also consider the type of work that the employee is capable of performing, if any, whether the employee has requested the City to make a reasonable accommodation for him or her under the Americans with Disabilities Act, the City's response to such requests, and any other evidence deemed pertinent by the Board. If the Board determines that the employee is permanently and totally disabled, ¡twill grant the disability. If the pension application is denied following this preliminary review, the employee will be informed in writing as to the denial and the reasons therefor. The employee shall also be advised that he or she may request a full evidentiary review by the Board. If the applicant requests such evidentiary hearing, the Board will schedule a public hearing. Written notice will be sent to the applicant, advising the applicant of the date, time and place of the hearing, and that the applicant has the right to be represented by an -30- attorney, to present evidence and to cross-examine witnesses. The applicant will also be told that if he or she chooses to have a verbatim transcript of the hearing, the applicant will need to engage the services of a court reporter. At the hearing, the burden of proof is on the applicant to demonstrate that he or she is entitled to a disability retirement. At the hearing, the Board will consider the reports of the physicians, any evidence offered by the employee or employer, whether or not the employee has requested a reasonable accommodation under the Americans with Disabilities Act, and the City's response thereto. At the hearing, the employee may call such witnesses as are deemed appropriate and shall have the right to examine or cross-examine the physician appointed by the Board. In the event that a physician cannot attend the meeting of the Board, the Board shall authorize the use of deposition testimony. 7.6 APPEAL PROCEDURES AND JUDICIAL REVIEW In the event that the Board shall deny disability benefits to an applicant, the applicant shall be informed in writing of the specific reason or reasons for the denial. The applicant shall have 30 days from the date of the written order of the Board in which to appeal the decision of the Board to the Circuit Court of the Seventeenth Judicial Circuit of Florida in and for Broward County, Said review shall be by certiorari as set forth in the Florida Rules of Appellate Procedure. -31- 7.7 EFFECTIVE DATE FOR DISABILITY RETIREMENTS As a result of the above proceedings, the final date of determination by the Board of Trustees is often several months after the filing of the application. In the event that a disability proceeding results in a grant of benefits to the employee, the Board hereby establishes as a policy that the effective date of the disability shall be the date of the application unless a delay in the proceedings was attributed to the member's refusal to cooperate with medical examinations or providing of requested information. In such circumstances, the amount of time attributable to the delay shall be added to the date of application and that adjusted date shall be the effective date of the disability payment, subject to appropriate offsets for periods when cooperation was received. 7.8 RE-EXAMINATION OF DISABILITY RETIREES Until such time as a disability retiree reaches normal retirement age, the Board may cause such disability retiree to undergo periodic physical examinations, on not more than an annual basis, to determine the continued existence of the disabling condition. Said re- examination shall be at the expense of the Board. Any disability retiree who refuses a re- examination may be subject to denial of future pension benefits. All disability retirees who are to be re-examined shall be advised in writing, by certified mail, return receipt requested of the date and time of their re-examination. Disability retirees shall be required to execute such releases as the Board shall deem necessary to conduct the medical examination and to discuss the results. In the event that a disability retiree is found to have recovered, the retiree shall be restored to employment with the City of Aventura in the same position and pay rate that the retiree would have occupied but for the disability. In such event, disability -32- benefits shall be terminated. In the event that a disability retiree refuses an offer of re- employment with the City, disability benefits shall be discontinued. -33- RULE 8 CODE OF ETHICS FOR TRUSTEES 8.1 PURPOSE This section shall set forth a code of ethical conduct for Trustees in the course of their dealings on behalf of the Pension Fund. 8.2 STANDARD The Trustees in all transactions shall abide by the "Prudent Person Rule" as generally recognized in the American Law of Trusts. 8.3 EXISTING LAW The Trustees recognize that in addition to the provisions of these rules, they are governed by Florida Statutes, Chapter 112, Part III, the Code of Ethics for Public Officials and Employees, Chapter 185, and all applicable local ordinances. 8.4 CONFLICTS OF INTEREST No Trustee shall engage in any transaction or vote in any matter in which the Trustee shall receive any direct or indirect personal gain. This shall not include, however, employee Trustees voting on benefit increases applicable to all Pension Fund members and beneficiaries. -34- 8.5 DISCLOSURE OF CONFLICTS Prior to voting on any matter in which a fiduciary would reasonably believe a conflict of interest exists, the Trustee shall publicly announce the conflict and refrain from voting. The conflict statement required by law shall be recorded in the minutes of the Board meeting. In determining whether a conflict exists, Trustees shall in all actions endeavor to avoid the appearance of impropriety. 8.6 PRIOR COMMUNICATION WITH BENEFIT APPLICANTS Trustees shall not engage in prior communications with any applicant for benefits on any matter that is currently pending a hearing before the Board of Trustees. This shall not preclude Trustees from answering questions of general application to members where the information provided involves a restatement of benefits under the Trust and does not involve consideration of matters which will be presented in any evidentiary proceeding, All requests for information in conflict with this rule shall be referred in writing to the administrator or other appropriate staff member for a written response. 8.7 STANDARD OF CARE Trustees should remain cognizant that statements regarding benefits may be relied upon by applicants to their detriment thereby creating an estoppel for the Board. Trustees in addressing benefit questions by members should clearly indicate that they are in no way capable of binding the Fund and that all questions are ultimately settled by the Board. -35- 8.8 PRIOR COMMUNICATION WITH POTENTIAL CONTRACTORS All contacts by potential contractors shall be referred to the administrator or to the Board. 8.9 COMMUNICATION WITH INVESTMENT MANAGERS All communications between individual Trustees and investment managers shall be for information purposes only. No individual Trustee may bind or promise any consideration on behalf of the Pension Fund except as approved by the Board. 8,10 APPLICABILITY TO STAFF AND CONTRACTORS All staff members and contractors shall be bound by this Code of Ethics in their dealings with the Trustees and the Fund. All such persons are responsible to the Board of Trustees and Pension Fund and not to any individual Trustee. 8.11 REPORTING OF GIFTS Any Trustee, staff or fiduciary receiving anything of value, excepting meals under $100.00, shall disclose said gift in writing and the disclosure shall be made a part of the records of the Fund, -36- ADOPTED BY THE BOARD OF TRUSTEES OF THE CITY OF AVENTURA POLICE PENSION FUND this - day of ,2004. Chairman Secretary Trustee Trustee Trustee IlIpl03003310peratíng Rules and Procedures -37- CITY OF AVENTURA POLICE PENSION FUND REQUEST FOR PROPOSAL FOR THIRD PARTY PENSION ADMINISTRATION (This request for proposal consists of 4 paqes) The City of Aventura Police Pension Fund (hereinafter, "the Plan"), a defined benefit public employees retirement system, is seeking proposals from qualified bidders to provide administrative services to the Plan, The Plan is a defined benefit retirement system serving approximately ------ active police officers, The Plan is managed by a Board of Trustees consisting of elected and appointed members. Administrative duties are currently being performed by the city. The successful biddèr will be asked to sign a written agreement setting forth the terms of the parties' relationship. The agreement will be subject to cancellation by the bidder on 90 days written notice to the Board and on 30 days written notice by the Board to the bidder, In order to be considered a qualified bidder, an applicant must be able to provide the following services: 1. 2. Preparation of meeting agenda, with all relevant back-up material and provide sufficient copies for all trustees, the Board's legal counsel, and the City not less than ten (10) days prior to the scheduled monthly meeting, Provide a designated employee special meetings of the Board, attend all regular and to 3. Take detailed notes and prepare minutes for all regular and special meetings of the Board which shall accurately reflect all actions taken by the Board. 4. Prepare and process all resolutions authorizing payment to retirees, beneficiaries and separated employees, 5. Coordinate with City payroll officials and accurately calculate the amount of payments to retirees and beneficiaries, 6. Confirm data regarding survivorship benefits, 7. Coordinate with the Board's legal counsel on such matters as litigation, domestic relations orders, disability hearings and legal opinions, 8. 9. 10. 11, 12. 13 , Schedule medical appointments for disability benefit applicants; coordinate gathering of relevant information from City Risk Management officials; schedule hearings on disability applications. Coordinate with investment advisors, compare custodial trading confirmations with reports from the investment manager; arrange for quarterly reporting by the investment manager. Assist active employees in the processing of applicants for retirement; review options; and provide general pre-retirement counseling, Assist the actuary in the timely gathering of data for the required actuarial valuation, Provide timely assistance to outside auditors for preparation of the annual financial statement, Perform such other duties as the trustees may require. Your response to the RFP should be in writing and provide the following information: 1. 2. 3, 4, 5. 6, Corporate name, Name of any parent or subsidiary company, Names and experience of the person(s) to be assigned to this account. A description of your company including the number of employees; relevant pension experience; and your plan for implementing administrative services. A list of references containing a brief description of the service provided and the name, address and phone number of a contact person, Attach the declarations page for any fidelity bond and professional liability insurance. The Board requires a $250,000 minimum fidelity bond and a $1 million minimum professional liability policy. If no such bond and insurance are maintained, provide an explanation of your company's ability to protect the Plan from any act or omission on your part, -2- 7. The location of the office from which the contract services will be performed. 8. Advise the Board of any legal action taken against your firm for any reason and the outcome of that litigation, The term "litigation" includes any claim made and settled, whether or not suit was filed. 9, Advise the Board whether any employee or officer of the company has been charged (whether or not convicted) with any offense involving fraud, theft or dishonesty. 10. Provide a detailed fee schedule. Ten (10) copies of the response to the RFP should be sent to: Robert D. Klausner, Board Counsel 10059 NW pt Court Plantation, FL 33324 (954) 916-1202 (954) 916-1232 (fax) E-mail bob@robertdklausner.com The envelope should be clearly marked "Response to RFP - Pension Administration," No telephonic or other communication should be made with any member of the Board. All inquiries concerning the RFP should be sent to: Robert D, Klausner, Board Counsel RFP's are due not later than 5:00 p.m. on: The Board will conduct interviews on at -----p,m. at the Aventura Government Center 19200 West Country Club Drive Aventura, FL 33180 -3- utllllleo lJOcumem Page 1 0[2 Actuaries BUCK CONSULTANTS Jose Fernandez 200 Galleria Parkway Suite 1900 Atlanta, GA 30339 Ph: 770-916-4105 Fx: 770-933-8336 E-mail: jfernandeztCùbuckconsultants.com Website: buckconsultants.com DULANEY & COMPANY, INC. Don DuLaneYr Jr. 10691 N. Kendall Drive Suite 310 Miami, FI 33176 Ph: 305-274-9970 Fx: 305-274-9946 E-mail: Don.dulaneytCùdulaneyco.com EFI ACTUARIES Ed Friend 1150 18th Street N.W. Suite 225 Washington D.c. 20036 Ph: 202-785-4985 Fx: 202-463-0347 E-mail: edfriendtCùefi-actuaries,com Website: www.efi-actuaries.com GABRIEL, ROEDER, SMITH & COMPANY George Ling 301 East Las alas Blvd. Suite 200 Ft Lauderdale, FI 33301 Ph: 954-527-1616 Fx: 954-525-0083 E-mail: georgeli@grsnetcom Website: grsnetcom PUBLIC PENSION PROFESSIONALS Ira Summer http://www.fþpta.orgisp/Service%20Providers/actuaries.html 7/9/2004 ummea vocument Page 2 of2 121 Mackinnon Place Oakland, CA 94610 Ph: 510-652.8420 Fx: 510-652-8421 E-mail- irasummer@pensioncube.com Website: pensioncube.com STANLEY, HOLCOMBE &. ASSOCIATES Randall Stanley 2000 Riveredge Parkway Suite 540 Atlanta, GA 30328 Ph: 770-933-1933 Fx: 770-933-8918 E-mail: randy@stanleyholcombe.com Website: stanleyholcombe.com THE SEGAL COMPANY Leon (Rocky) F, Joyner, Jr, Kevin Leonard 1000 Parkwood Circle Suite 200 Atlanta, GA 30339 Ph: 770-955-4003 Fx: 770-955-0011 E-mail: Ixi@segalco.com http://www.fppta.org!sp/Service%20Providers/actuaries.html 7/9/2004 UllUllt;U lJUlOUrn"m Investment Consultant ASSET CONSULTING GROUP, INC. Randall L. Kirkland 7700 Bonhomme #650 Clayton, MO 63105 Ph: 314-862-4848 Fx: 314-862-5967 E-mail: rkirkland@acgnetcom BOGDAHN CONSULTING, LLC, Joseph Bogdahn 62 4th Street S.W. Winter Haven, FI 33880 Ph: 863-293-8289 Fx: 863-298-6762 E-mail: joe@bogahnconsulting.com Website: bogdahnconsulting.com BURGESS CHAMBERS &. ASSOCIATES, INC. Burgess Chambers 601 North New York Avenue Suite 200 Winter Park, FL 32789 Ph: 407-644-0111 Fx: 407-644-0694 E-mail: burgess@)burgesschambers.com CALLAN ASSOCIATES, INC. Jeanne Valcik Six Concourse Parkway Suite 2900 Atlantar GA 30328 Ph: 770-804-5585 Fx: 770-804-5586 E-Mail: valcik@callan.com Website: callan.com DAHAB ASSOCIATES Greg McNeillie 450 Washington Street http://www.fþpta.orgisp/Service%20Providers/investmenthtml Page 1 of4 7/9/2004 ulltItJel1 vocument Page 2 of 4 Suite 308 Dedham, MA 02026 Ph: 781-461-1140 Fx: 781-329-8229 Email: Greg.Dahab.MA@earthlink,net Website: www.dahab.com DOVER CONSULTING GROUP Richard A. Campbell, CFA 3033 S, Kettering Blvd. Suite 320 Daytonr OH 45439 Ph: 937-643-2866 Fx: 937-299-7565 E-mail: Rich@Dover-Consulting.com Website: www.dover-consuiting.com FISHER INVESTMENTS, INC. Justin Arbuckle 13100 Skyline Blvd. Woodside, CA 94062 Ph: 650-851-7925 Fx: 650-745-1005 E-mail: jarbuckle@fi.com Website: fi.com Products: Domestic Equities Seperate Accounts, Large Cap Core, Small Cap Value International Equities Large Cap Core International Categories Global, EAFE FRANK RUSSELL COMPANY William J. Rizzo 590 Madison Avenue 40th Floor New York, NY 10022 Ph: 212-702-7956 Fx: 212-702-7901 Email: wrizzo@russell.com Website: russell. com Products: Domestic Equity Commingled, Domestic Fixed Income Commingled, International Equities Commingled, International Categories Commingled, International Fixed Income Commingled GRS Asset Consulting Group George Ling 301 East Las alas Blvd. Suite 200 Ft. Lauderdale, FI 33301 http://www.fþpta.orgisp/Service%20Providers/investment.html 7/9/2004 unllueu uocument Page 3 of 4 Ph: 954-527-1616 Fx: 954-525-0083 E-mail: Georgeli(â)grsnetcom Website: grsnetcom KALSON & ASSOCIATES Grant D. Kalson Kimberly Savander 27 Blacksmith Road Suite 201 Newtown, PA 18940 Ph: 215-968-6851 Fx: 215-968-6605 E-mail: kalson@)voicenetcom RICHMOND CAPITAL MANAGEMENT Jo Ann Stoddard 10800 Midlothian Turnpike # 217 Richmond, VA 23235 Ph: 804-379-8280 Fx: 804-379-9362 E-Mail: jstoddard@)richmondcap.com Products: Domestic Fixed Income Separate Accounts, Government, Corporate, Agencies, Short Term Yield, Core SENTINEL FIDUCIARY SERVICES William G. Talley, III 605 Delaney Avenue Orlando, FI 32801 Ph: 407-246-7221 Fx: 407-246-7266 E-mail: williamt@sfs.cc Website: www.sfs.cc SMITH BARNEY CONSULTING GROUP Charles H. Mulfinger, II 100 North Tampa Street Suite 3000 Tampa, FI 33602 Ph: 813-282-0655 ext. 2061 Fx: 813-227-2070 E-mail: Charles.mulfinger.ii@smithbarnev.com Website: .fc,smithbarney.com/charles mulfinger UBS FINACIAL SERVICES, INC. Gary W. Owens, CIMA http://www.fþpta.org/sp/Service%20Providers/investment.html 7/9/2004 untIuea lJocument Page 4 of 4 5100 Town Center Circle Boca Raton, FI 33486 Ph: 561-367-1876 or 800-937-7071 Fx: 561-393-0446 Email: Garv.owens@ubs.com http://www.fþpta.org!sp/Service%20Providers/investmenthtml 7/9/2004 ummea LJocument Third Party Administration BENIFITS USA Pete Prior and Carolyn Furlong 3810 Inverrary Blvd, Suite 208 Lauderhíll, FI 33319 Ph: 954-730-2068 Fx: 954-730-0738 E-mail: pk911@bellsouth.net www.benefits-usa.net PENSION RESOURCE CENTER Scott Baur Margie Bruce 4360 Northlake Blvd. Suite 206 Palm Beach Gardens, FI 33410 Ph: 800-206-0116 Fx: 561-624-3278 h ttp :/ /www.fþpta.org/sp/Service%2 0 Pro vi ders/thirdyp artyadmin. h tIn! Page 1 of 1 7/9/2004 CITY OF AVENTURA POLICE PENSION FUND REQUEST FOR PROPOSAL FOR ACTUARIAL SERVICES (This request for proposal consists of 3 paqes) The City of Aventura Police Pension Fund (hereinafter, "the Plan"), a defined benefit public employees retirement system, is seeking proposals from qualified bidders to provide actuarial services to the Plan, The Plan is a defined benefit retirement system serving approximately ------ active police officers, The Plan is managed by a Board of Trustees consisting of elected and appointed members, As a newly created retirement system, the Plan is not currently under contract with any actuarial firm, The successful bidder will be asked to sign a written agreement setting forth the terms of the parties' relationship, The agreement will be subject to cancellation by the bidder on 90 days written notice to the Board and on 30 days written notice by the Board to the bidder, The agreement will require the bidder to acknowledge fiduciary responsibility to the Fund for advice given. In order to be considered a qualified bidder, an applicant must be able to provide the following services: 1. preparation of an annual Actuarial Valuation as of February 1 of each year in accordance with Florida Statute, Chapter 185,221; 2, Attendance at Board meeting at least once a year to present the annual valuation; 3, preparation of participants; Statements annual Benefit for Plan 4, Provide option factors and calculate retirements benefits based on those options, At present, there are currently - standard forms of retirement; 5, Consulting changes; services and/or assumption regarding benefit 6, Coordinate with other service providers; administrator, auditor, e,g. , attorney, 7, Preparation of actuarial impact statements as necessary; 8, 9, Provide telephone consultation on Plan matters; and All other assistance as required or requested by the Trustees. Your response to the RFP should be in writing and provide the following information: 1. Corporate name, 2, Name of any parent or subsidiary company, 3, Names and experience of the person(s) to be assigned to this account. 4, A description of your company including the number of employees; relevant pension experience; and your plan for implementing actuarial services, 5, A list of references containing a brief description of the service provided and the name, address and phone number of a contact person, 6, Attach the declarations page for any fidelity bond and professional liability insurance. The Board requires a $250,000 minimum fidelity bond and a $1 million minimum professional liability policy. If no such bond and insurance are maintained, provide an explanation of your company's ability to protect the Plan from any act or omission on your part. 7, The location of the office from which the contract services will be performed. 8, Advise the Board of any legal action taken against your firm for any reason and the outcome of that litigation, The term "litigation" includes any claim made and settled, whether or not suit was filed, 9. Advise the Board whether any employee or officer of the company has been charged (whether or not convicted) with any offense involving fraud, theft or dishonesty, 10, Provide a detailed fee schedule, Fees should be quoted on an annual basis and must be guaranteed for three (3) years, For those services to which an hourly rate would apply, indicate the hourly rate for the category of professional contributing -2- to the task, Fees should be inclusive, No other charges will be allowed unless specifically authorized by the Board. 11. Provide a sample valuation report, Ten (10) copies of the response to the RFP should be sent to: Robert D. Klausner, Board Counsel 10059 NW 1st Court Plantation, FL 33324 (954) 916-1202 (954) 916-1232 (fax) E-mail: bob@robertdklausner,com The envelope should be clearly marked "Response to RFP - Pension Actuary, " No telephonic communication should be made with any member of the Board, All inquiries concerning the RFP should be sent to: Robert D, Klausner, Board Counsel RFP's are due not later than 5:00 p,m. on: The Board will conduct interviews on at -----p.m. at the Aventura Government Center 19200 West Country Club Drive Aventura, FL 33180 You will be notified of the exact time and date of the interview after the RFP is filed. The Plan reserves the right to reject any or all responses to the RFP in its sole and exclusive discretion, Submission of the lowest bid is no guarantee of selection. By submitting a response, a service provider agrees to be bound by the Plan's determination in this matter and waives any claim against the Plan, its trustees and their agents for any matter connected with this request. -3- CITY OF AVENTURA POLICE PENSION FUND REOUEST FOR PROPOSAL FOR THIRD PARTY PENSION ADMINISTRATION (This request for proposal consists of 4 paqes) The City of Aventura Police Pension Fund (hereinafter, "the Plan"), a defined benefit public employees retirement system, is seeking proposals from qualified bidders to provide administrative services to the Plan. The Plan is a defined benefit retirement system serving approximately ------ active police officers. The Plan is managed by a Board of Trustees consisting of elected and appointed members. Administrative duties are currently being performed by the city. The successful bidder will be asked to sign a written agreement setting forth the terms of the parties' relationship, The agreement will be subject to cancellation by the bidder on 90 days written notice to the Board and on 30 days written notice by the Board to the bidder, In order to be considered a qualified bidder, an applicant must be able to provide the following services: 1. 2, Preparation of meeting agenda, with all relevant back-up material and provide sufficient copies for all trustees, the Board's legal counsel, and the City not less than ten (10) days prior to the scheduled monthly meeting. Provide a designated employee special meetings of the Board, attend all regular and to 3, Take detailed notes and prepare minutes for all regular and special meetings of the Board which shall accurately reflect all actions taken by the Board, 4, Prepare and process all resolutions authorizing payment to retirees, beneficiaries and separated employees, 5, Coordinate with City payroll officials and accurately calculate the amount of payments to retirees and beneficiaries. 6, Confirm data regarding survivorship benefits. 7, Coordinate with the Board's legal counsel on such matters as litigation, domestic relations orders, disability hearings and legal opinions, 8, 9. 10. 11, 12. 13 . Schedule medical appointments for disability benefit applicants; coordinate gathering of relevant information from City Risk Management officials; schedule hearings on disability applications. Coordinate with investment advisors, compare custodial trading confirmations with reports from the investment manager; arrange for quarterly reporting by the investment manager. Assist active employees in the processing of applicants for retirement; review options; and provide general pre-retirement counseling, Assist the actuary in the timely gathering of data for the required actuarial valuation. Provide timely assistance to outside auditors for preparation of the annual financial statement. Perform such other duties as the trustees may require. Your response to the RFP should be in writing and provide the following information: 1. 2, 3, 4, 5. 6. Corporate name, Name of any parent or subsidiary company, Names and experience of the person(s) to be assigned to this account. A description of your company including the number of employees; relevant pension experience; and your plan for implementing administrative services, A list of references containing a brief description of the service provided and the name, address and phone number of a contact person, Attach the declarations page for any fidelity bond and professional liability insurance. The Board requires a $250,000 minimum fidelity bond and a $1 million minimum professional liability policy. If no such bond and insurance are maintained, provide an explanation of your company's ability to protect the Plan from any act or omission on your part, -2- 7. The location of the office from which the contract services will be performed, 8. Advise the Board of any legal action taken against your firm for any reason and the outcome of that litigation, The term "litigation" includes any claim made and settled, whether or not suit was filed. 9, Advise the Board whether any employee or officer of the company has been charged (whether or not convicted) with any offense involving fraud, theft or dishonesty. 10. Provide a detailed fee schedule. Ten (10) copies of the response to the RFP should be sent to: Robert D. Klausner, Board Counsel 10059 NW 1st Court Plantation, FL 33324 (954) 916-1202 (954) 916-1232 (fax) E-mail bob@robertdklausner,com The envelope should be clearly marked "Response to RFP - Pension Administration." No telephonic or other communication should be made with any member of the Board. All inquiries concerning the RFP should be sent to: Robert D, Klausner, Board Counsel RFP's are due not later than 5:00 p.m, on: The Board will conduct interviews on at -----p.m. at the Aventura Government Center 19200 West Country Club Drive Aventura, FL 33180 -3- CITY OF AVENTURA POLICE PENSION FUND REQUEST FOR PROPOSAL FOR INDEPENDENT INVESTMENT CONSULTING SERVICES (This request for proposal consists of 4 paqes) The City of Aventura Police Pension Fund (hereinafter, "the Plan"), a defined benefit public employees retirement system, is seeking proposals from qualified bidders to provide investment consulting services to the Plan, The Plan is a defined benefit retirement system serving approximately active police officers, The Plan is managed by a Board of Trustees consisting of elected and appointed members, Administrative duties are currently being performed by the city, As a newly created retirement system, the Board currently oversees approximately $ of Plan assets, The Board seeks to employ one or more investment manager (s) or mutual funds to structure a balanced portfolio of securities, The successful bidder will be asked to sign a written agreement setting forth the terms of the parties' relationship. The agreement will be subject to cancellation by the bidder on 90 days written notice to the Board and on 30 days written notice by the Board to the bidder. Qualifications In order to be considered a qualified bidder, meet the following requirements: an applicant must 1. Be an investment advisor registered with the securities and Exchange Commission under the Investment Advisor's Act of 1940, The consultant shall be a fiduciary of the Fund in accordance with the provisions of Florida Statutes, Section 112,656, The consultant will not be expected to render legal, accounting, or actuarial advice, nor to prepare any such documents, Satisfy the definition of "professionally qualified independent consultant" set forth in Section 185,06, Florida Statutes, Provide services on a flat-fee basis. Not be associated in any manner with the money manager for the pension fund, Have substantial experience (at a minimum 3 or more years) working in the public sector, 2, 3. 4. 5. Responsibilities In order to be considered a qualified bidder, must be able to provide the following services: 2, an applicant 1. Provide a designated employee to regularly attend all quarterly investment meetings and any special meetings, as requested by the Board. Evaluate the performance of any existing professional money manager and make recommendations to the Board regarding the selection of money managers for the next investment term. Provide a review and analysis of rates of return and other pertinent data with respect to the investment portfolio of the Fund. Reports will be expected on a quarterly basis, The report shall detail the beginning and ending balance of each investment advisor's portfolio as designated by the Board, detailing the beginning value, the ending value, and the percentage rate of return. The quarterly report should also contain an analysis of the Fund as a whole, and separate analyses of common stocks, long-term fixed income, convertible securities, and sort-term investments. The consultant will also be expected to provide a continuing overview of the current investment environment with comments on the present investment strategy and recent performance, The consultant will be expected to assist the Board in monitoring the investments to make certain that they meet the investment policy as set by the Board, The consultant will be asked to assist the Board in developing an investment policy, including manager selection and asset allocation, 3, Make calculations according to the American Banking Institute method of calculating time-weighted rates of return, All calculations must be made net of fees. 4, Reconcile and verify custodial trading confirmations with reports from the investment manager(s); arrange for quarterly reporting by the investment manager, 5, Coordinate with the Board's legal counsel matters as may arise from time to time, on such legal 6, Assist the actuary in the timely gathering of data for the required actuarial valuation. 7, Provide timely assistance to outside auditors for preparation of the annual financial statement. -2- 8. Perform such other duties as the trustees may require, Proposal Your response to the RFP should be in writing and provide the following information: 2, 1. Corporate name, Name of any parent or subsidiary company. 3, Names and experience of the person(s) to be assigned to this account, 4, A description of your company including the number of employees; relevant pension experience; and your plan for implementing consulting services, 5. A list of references containing a brief description of the service provided and the name, address and phone number of a contact person, 6, Attach the declarations page for any fidelity bond and professional liability insurance, The Board requires a $500, 000 minimum fidelity bond and a $3 million minimum professional liability policy, If no such bond and insurance are maintained, provide an explanation of your company's ability to protect the Plan from any act or omission on your part, 7. The location of the office from which the contract services will be performed, 8. Advise the Board of any legal action taken against your firm for any reason and the outcome of that litigation, The term "litigation" includes any claim made and settled, whether or not suit was filed, 9. Advise the Board whether any employee or officer of the company has been charged (whether or not convicted) with any offense involving fraud, theft or dishonesty, 10. Provide a detailed fee proposal, The fee proposal should address the above-described services on both a soft dollar and hard dollar, fixed fee basis. The fee proposal should also address the applicable cost if the Trustees add an additional -3- money manager, If there is a separate cost for conducting a manager search, asset allocation search, or any other service, that cost should be specified. In addition, any reimbursable cost claimed by the consultant should be set forth, Ten (10) copies of the response to the RFP should be sent to: Robert D, Klausner, Board Counsel 10059 NW 1ßt Court Plantation, FL 33324 (954) 916-1202 (954) 916-1232 (fax) E-mail bob@robertdklausner.com The envelope should be clearly marked "Response to RFP - Investment Consulting Services," No telephonic communication should be made with any member of the Board, All inquiries concerning the RFP should be sent to: Robert D, Klausner, Board Counsel RFP's are due not later than 5:00 p,m. on: The Board will conduct interviews on at -----y.m, at the Aventura Government Center 19200 West Country Club Drive Aventura, FL 33180 You will be notified of the exact time and date of the interview after the RFP is filed, The Board reserves the right to reject any or all responses to the RFP in its sole and exclusive discretion, Submission of the lowest bid is no guarantee of selection. By submitting a response, a service provider agrees to be bound by the Board's determination in this matter and waives any claim against the Board, its trustees and their agents for any matter connected with this request. -4- 2003 Annual Report For The City: MUNICIP AL POLICE OFFICERS' FUND Please direct all correspondençe to: Municipal Police Officers' and Retirement Trust Funds Office Division of Retirement Post Office Box 3010 Tallahassee, Florida Phone (850) Suncom Fax Web Email Firefighters' 32315-3010 922-0667 292-0667 (850) 921-2161 http://www,myflorida,com/frs/mpf mpf@frs,state,fl,us DATE RECEIVED Annual Report Audit Actuarial Valuation ANNUAL REPORT FOR YEAR 2003 (CITY) (NAME OF FUND) (ADDMSS OF FUND) STATE OF Florida COUNTY OF We declare that the information given in this Annual Report and any attachments thereto is true and complete to the best of our information, knowledge and belief. We declare that the plan is within the provisions of s, 185,03, F.S, CHAIRMAN * Signature Please Type: Name of Chairman * Must be a member of the Board of Trustees Mailing Address Area Code Te1ephone/Suncom Emai1 (optional) SECRETARY * Signature Please Type: Name of Secretary Mailing Address Area Code Telephone/Suncom Emai1 (optional) CONTACT PERSON FOR ANNUAL REPORT: Name: Please Type The Municipal Police Officers' and Firefighters' Retirement Trust Funds Office is hereby authorized to contact the person listed above for additional information and/or corrections regarding the annual report, Title Mailing Address Area Code Telephone/Suncom C'"h~~_'h~..J -_..J ------- ~- 'n~_- 1. BOARD OF TRUSTEES Makeup of Board specified in: Ordinance No. - Section - Dated Names of Trustees Trustees Elected/Appointed By* * For each Trustee Specify: City Appointee, Police Officer, Elected Fifth Member, or Designated in Ordinance (example: Finance Director, City Clerk or Treasurer), Attach separate page, if necessary, 2, Required Quarterly Board Meetings, one Board meeting in each quarter: List the date (month, day, year) of 1st 2nd 3rd 4th 3. List all ordinances passed during this reporting period that affect your pension fund, An impact statement ~ be performed for each new ordinance. Any ordinance having no actuarial impact upon the plan must have a letter from your actuary attesting to this fact, Please indicate whether or not the ordinance enacted a benefit improvement that was mandated by Chapter 99-1. If yes, please identify whether the benefit improvement was (a) required minimum benefit or (b) extra benefit. Y/N a/b ord. Number Date Passed Impact Statement Date Required by Chapter 99-1? Y/N a/b Ord. Number Date Passed Impact Statement Date Required by Chapter 99-1? Y/N a/b Ord. Number Date Passed Impact Statement Date Required by Chapter 99-1? Y/N a/b Ord. Number Date Passed Impact Statement Date Required by Chapter 99-1? 4. CHAPTER FUNDS ONLY List any benefit improvements implemented during this reporting period and the date effective: 1. ACTUARIAL VALUATION Contributions (Page 5, Line 3) for this accordance with the valuation performed by, reporting Name of Actuarial Firm Contact Person Mailing Address Area Code Telephone Number Period Covered Date of Valuation 2. CERTIFIED PUBLIC ACCOUNTANT Name of Firm Contact Person Mailing Address Area Code Telephone Number 3. MONEY MANAGER Name of Firm Contact Person Mailing Address Area Code Telephone Number 4, PERFORMANCE EVALUATION Name of Firm Contact Person Mailing Address Area Code Telephone Number Date of Evaluation Period Covered 5. LEGAL ADVISOR Name of Firm Mailing Address Attorney Telephone/Suncom Number Area Code 6, PLAN ADMINISTRATOR Name of Firm Administrator Mailing Address period were made in CITY NAME NAME OF PENSION FUND STATEMENT OF ASSETS AND LIABILITIES AS OF 9/30/2003 Month/Day/Year ASSETS MARKET VALUE 1. CASH, CHECKING AND SAVINGS (From pg,7) 2. CERTIFICATES OF DEPOSIT (From pg. 7) 3, SHORT TERM INVESTMENTS (From pg, 7) 4. OTHER CASH AND EQUIVALENTS (From pg. 8) 5. U. S, BONDS AND BILLS (From pg, 8) 6. FEDERAL AGENCY GUARANTEED SECURITIES (From pg, 8) 7. CORPORATE BONDS (From pg, 8) 8. STOCKS (From pg, 9) 9, OTHER SECURITIES (From pg, 9) 10, REAL ESTATE (From pg, 9) 11, INVESTMENTS HELD BY INSURANCE COMPANY (From pg, 9) 12. (From pg. 10) 13. (From pg, 10) 14. ACCOUNTS RECEIVABLE (From pg. 10) 15. ACCRUED INTEREST 16, TOTAL ASSETS (sum of lines 1-15) LIABILITIES 17. REFUNDS PAYABLE 18. PENSIONS PAYABLE 19. UNPAID EXPENSES 20. DROP PLAN PAYABLE 21. 22. TOTAL LIABILITIES (sum of lines 17-21) 23. FUND RAT.ANr'j¡', ("",ht-r~~'" 1 <~~ ~~ &_-- ,,- - ." CITY NAME NAME OF PENSION FUND STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCE FOR THE PERIOD ENDING 9/30/2003 Month/Day/Year REVENUES 1. CONTRIBUTIONS FROM POLICE OFFICERS (From pg, 14) 2, CONTRIBUTIONS FROM STATE OF FLORIDA (From pg. 6) 3, CONTRIBUTIONS FROM CITY (From pg, 6) 4. CONTRIBUTIONS FROM CITY - FOR POLICE OFFICERS 5. BUYBACKS/REPAYMENT OF CONTRIBUTIONS 6. 7. UNREALIZED GAINS/LOSSES 8, INTEREST AND DIVIDENDS 9. GAIN FROM SALE OF INVESTMENTS 10. TOTAL REVENUE (sum of lines 1-9) EXPENDITURES 11. RETIREMENT PENSION PAYMENTS (From pg, 12) 12. DISABILITY PENSION PAYMENTS (From pg. 12) 13. BENEFICIARY PENSION PAYMENTS (From pg. 12) 14. TOTAL PENSION PAYMENTS (sum of lines 11-13) 15. TERMINATION PAYMENTS (From pg, 13) 16. DROP PLAN PAYMENTS 17. INSURANCE PREMIUM PAYMENTS 18, EXPENSES (From pg, 6) 19. 20. 21. LOSS FROM SALE OF INVESTMENTS 22. TOTAL EXPENDITURES (sum of lines 14-21) 23. NET INCREASE / (DECREASE) (subtract line 22 from line 10) 24. FUND BALANCE - BEGINNING OF YEAR:October 1. 200~ 1 ,TOTAL CALENDAR YEAR 2003 POLICE DEPARTMENT PAYROLL: ** IMPORTANT ** $ This figure must be on a calendar year basis, Police Department Payroll - includes all employees of the Police Department (secretaries, dispatchers, police officers, etc,). If lower than last year, or significantly higher, pl.ease expl.ain! 2,STATE OF FLORIDA PREMIUM TAX MONEY List each deposit separately Date of Deposit ~ TOTAL (Page 5, Line 2) 3.CITY CONTRIBUTION Date of Deposit Amount Date of Deposit Amount TOTAL CITY CONTRIBUTION (page 5, Line 3) 4. DETAIL OF EXPENSES ADMINISTRATIVE EXPENSES Item Amount Item Amount Sub-Total Admin. Expenses INVESTMENT EXPENSES Item Amount Item Amount Sub Total -- TnVPRrmpnr RvnpnQpQ City Name: 2003 ACTUARIAL CONFIRMATION OF THE USE OF STATE MONEYS (LOCAL LAW PLANS ONLY) TO BE FORWARDED TO THE PLAN ACTUARY FOR COMPLETION AND RETURNED TO THE MUNICIPALITY AS SOON AS POSSIBLE, SO THAT IT MAY BE SUBMITED TOGETHER WITH THE ANNUAL REPORT DUE ON MARCH 15, 2004. The Plan's actuary must provide the following information in order for the MPF office to determine that State premium tax revenues are being used in accordance with the provisions of sections 175,351 and 185.35, Florida Statutes, as amended by Chapter 99-1, Laws of Florida, A, Name of actuarial firm B. Date of most recent actuarial valuation C, Use of State money -- Please provide the following information: (1) Annual cost of qualifying benefit improvements -- required minimum benefit improvements or "extra benefit" improvements enacted during the fiscal year, Ordinance . Number (s) 1999 - 2002 $ $- (Previously reported) 2003 (2) For the Fiscal Year 2003, please indicate the amount of State premium tax moneys that are available to be used by the plan sponsor toward the minimum required contributions, (NOTE: If there have been no qualifying benefit improvements since the enactment of Chapter 99-1, Laws of Florida, this amount can be no more than the 1997 base year amount.) Police $ (3) Are there any remaining minimum benefit improvements required to be made subject to the provisions of Chapter 99-1, Laws of Florida? If yes, please identify, Attach additional page, if necessary. YES NO (4) As of Fiscal Year End 2003, please provide the cumulative balance of additional premium tax revenues that are remaining to be used to provide future minimum or "extra benefit" improvements. If the sum total of all qualifying benefit improvements enacted since Chapter 99-1 exceeds the total additional premium tax revenues received this year, this may be a negati ve balance; however, negati ve balances are not cumulative, NOTE: Investment Earnings, if included, may not be negative in the aggregate, Total Accumulated Balance 9/30/03 $ (Includes Investment Earnings of -) D, Actuary representing the Plan: INVESTMENTS NAME OF PENSION FUND 1, Ordinance describing the Fund's investment guidelines: Ordinance No, Section Date 2, SCHEDULE OF INVESTMENTS AT ~ET VALUE Institution Holding Deposit Amount Interest Rate (1) CASH, Checking & Savings Total (Page 4, Line 1) (2) CERTIFICATES OF DEPOSIT Total (Page 4, Line 2) (3) SHORT-TERM INVESTMENTS 2. SCHEDULE OF INVESTMENTS - continued Institution Holding Deposit Amount Interest Rate (4) OTHER CASH & EQUIVALENTS Total (Page 4, Line 4) (5) U, S, BONDS & BILLS Total (page 4, Line 5) (6) FEDERAL AGENCY GUARANTEED SECURITIES Total (Page 4, Line 6) (7) CORPORATE BONDS Total (Page 4, Line 7) 2, SCHEDULE OF INVESTMENTS - continued Institution Holding Deposit Amount Interest Rate (8) STOCKS Total (Page 4, Line 8) (9) OTHER SECURITIES Total (Page 4, Line 9) (10) REAL ESTATE Total (Page 4, Line 10) (11) INVESTMENTS HELD BY INSURANCE COMPANY Total (Page 4, Line 11) 2. SCHEDULE OF INVESTMENTS - continued Institution Holding Deposit Amount Interest Rate (12) Total (Page 4, Line 12) (13) Total Page 4, Line 13) (14) ACCOUNTS RECEIVABLE * DUE FROM ** DATE OF PAYMENT AMOUNT TOTAL ACCOUNTS RECEIVABLE Page 4, Line 14) * State of Florida Contribution May NOT Be Listed As A Receivable, ** Required For All Receivables, INSURED PLANS TO BE FORWARDED TO INSURANCE COMPANY FOR COMPLETION AND RETURNED TO MUNICIPALITY AS SOON AS POSSIBLE, BUT PRIOR TO FILING DATE OF REPORT, MARCH 15, 2004, A, NAME OF CARRIER: B, TYPE AND CONTRACT NUMBER: C, TYPE AND BASIS OF FUNDING: CURRENT SERVICE: PAST SERVICE: D, NUMBER OF EMPLOYEES COVERED: RETIRED: NON-RETIRED: E, DATE OF LAST PLAN AMENDMENT (IF ANY) : F, INSURANCE COMPANY REPRESENTATIVE HANDLING REPORT FOR MUNICIPALITY: NAME: TITLE: PHONE NUMBER: I have forwarded to the person completing this report a copy of the contractholder's account statement as of (date) showing a balance of $ (amount), invested with this company. (Signature) (Date) NOTE: A copy of the contractholder's account statement as of the reporting date of the Annual Report must be submitted with the Annual Report, The statement must show all changes to the reserve account, The contractholder's account statement is required even though pages 4 and 5 are completed by the insurance company, IMPORTANT Before completing instructions, pages 12, 13, 14 and 15, please read these Pages 12, 13, 14 and 15, must be completed using the same reporting period as pages 1 through 11, All statistical data on these pages should be based on employment as a certified (or to be certified within one year of employment) police officer, Complete all columns on each page, The statistical data on this year's report will be compared to the statistical data on last year's report. Please check to be sure that all police officers are accounted for and that all dates are correct. The totals on pages 12, 13, 14 and 15, must be the same as the totals on page 5, lines 1, 11, 12, 13, 15, and 16, 2003 Ro,ort N"""of"" POLICE OFFICERS' PENSION DATA N'm""or"o'"áPol¡"Offk=oo~""- - "_¡agpoi"" _--L.J- 10 ....J_'- So.,1 N,m, D.., D"<or N,m, D"<or P,rnl" MooOhlyP,rnl" T"aIR",I"d ....." tFI~wrtaIFhahol"Uy) ,r RdI"'DI,,hillly ""abill'y ,r Blrtb,r °p"" R...""'ByR""" "'"R'F,rtl,. N,mb" L.u< ';n" MJ Blrtb ""d"."~"R'D) Coo,, .."'~"'" ...,~"'" EI,,',d" ""'~"b" F,ri,' . ""abiliNC",",. I-H""'Di~= 2.H""",_00 3-E...hy,=, 4-I,j,,> S-"""(pl~"""fy) 6-C~", P""""'dI",..LOD/NLOD .. P"_ooO""ooC,,,", I.Lif,&IOY.C",., 2 - Lif"'m' or Ro'= ""'y 3-Jo'a'&S~¡"cr (A) "" (O,,"," (OP" (DI"'" 4-0~"(pl="F"¡fy) S-DROP S,h.."" R"¡,=m' ~ ~ D..,Miry 'oo'¡;Ó.ry ~ TOTAL F""om~' """"Fa,......, - (m""_w¡~p.."S,Ii",¡-¡¡--- (12) 2003 .epo" N,meofPl,n POLICE OFFICERS' TERMINATIONS NombuofTom;",", '01;" Ofli,= " "';"'P°rt "Poo;oO'.,;od ~~- ill ~~- S.d.1 N.m. D... D... D.,. Am.... S"ori', (P'_..rt.'.b,b".",) ,r .r .r Roo... .,rood"" N.mb" ""', F~n', MI Su Birtb Emp'~,m." T"min,"" Tm.,;."" T,=i..O," TOTAL, p....OtI;,m' T""""",mP.ym.." I (m"".....,_;'" ,..".1;'. 15) (13) "0_0"'" "0.0."""""",,°"<0'00."- POLICE OFFICERS' STATISTICAL EXIDBIT "",.",Pmi'" -L.-'-. ---'---'- So"" N,., "", ."", Ynn"Cn.'" """".try M"tOl,S.m T""C"'Co.O".'" A..."C,,'.b",'" Smrl', (pI,., on "P""¡"'~J " Emp'.,.n'., So"",f,P.'" ""p"", "~=::~~~~::~.. ',"""ri."", ,.'" '" om", N..~, '~.PI~M' "riO ,.. A,. """Qffl<" ........"",. .........",.. 'opo.'""ri'" D.ri., ,,"'" ,-V.) """om....' Co""""" , 'm.","""""",'"") ,>Of No__""" N..b.ofP_¡;"om.~...i,R"", DROP PLAN PARTICIPANT RALANCE ROLLFORWARD '.",'m,""" ---'---'~. -'---'~ 50<'" N.., Dol. """I D...II:'", Smrily ~1.mH".Ip..""I"'Iy) ,r 'mplo,..., ",.DROP "",RI" ""00 ""'I ,..~, ~""..M' m~. ".. .".." M.~.. """y", ",..~",..d ",.,..",... .".." . -¡¡¡¡;;:;;:;;;- --- ~--'" .L--....;......!.....--...;. , I'"~