HomeMy WebLinkAboutExhibit A FR/SREXHIBIT A
NIIAMI FIRE FIGHTERS' RELIEF
AND
PENSION FUND
11,3 -?(/6(
MIAMI FIRE FIGHTERS' RELIEF
AND
PENSION FUND
TABLE OF CONTENTS
Section 1 Introduction 1
Section 2 Definitions 1
Section 3 Funding 11
Section 4 Participation 12
Section 5 Allocation To Accounts 13
Section 6 Benefits 15
Section 7 Administration 37
Section 8 Miscellaneous Provisions 41
MIAMI FIRE FIGHTERS' RELIEF AND PENSION FUND
Section 1 Introduction
The purpose of this ordinance is to implement the provisions of Chapter 19112, Acts of Florida,
1939 and Chapter 175, Florida Statutes, and to provide means whereby Fire Fighters of the City of
Miami, Florida may receive benefits from the funds provided for that purpose by Chapter 19112,
Acts of Florida,. 1939 and Chapter 175, Florida Statutes. The fund hereby created shall be in
addition to any other pension plan of the City of Miami, Florida and nothing herein shall in any way
affect the operation of, or the benefits under, any other pension plan of the City of Miami, Florida
that presently exists.
Section 2 Definitions
The following words and phrases shall, for the purpose of this ordinance, have the meanings
indicated below.
(a) "Account" means the account credited with contributions under Section 3, eligible forfeiture
contributions pursuant to Section 5, eligible rollover contributions pursuant to Section 3(e),
and earnings on those contributions.
(b)
"Account Balance" means the value of the Account as of the last valuation date in the
calendar year immediately preceding the distribution calendar year (valuation calendar year)
increased by the amount of any contributions made and allocated or forfeitures allocated to
the Account Balance as of dates in the valuation calendar year after the valuation date and
decreased by distributions made in the valuation calendar year after the valuation date. The
Account Balance for the valuation calendar year includes any amounts rolled over or
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(c)
transferred to the Plan either in the valuation calendar year or in the distribution calendar
year if distributed or transferred in the valuation calendaryear.
"Active Duty" means service for which an employee receives compensation as a Fire Fighter
with Permanent Status in the Fire Department of the City.
(d) "Annual Addition" means the following amounts credited to a Participant for a calendar
year under this Plan:
(I) Plan Contributions under Section 3(a);
(II) Forfeitures under Section 5(b);
(III) Similar contributions or amounts under such other plans deemed to be maintained by
the Participant under the Code; and
(IV) Any additional amounts required by regulations under Code section 415.
(d) "Beneficiary" means any person, persons or entity designated by a Participant to receive
any benefits payable in the event of the Participant's death. If no Beneficiary designation is
in effect at the Participant's death, or if no person, persons or entity so designated survives
the Participant, the Participant's surviving spouse, if any, shall be deemed to be the
Beneficiary; otherwise the Beneficiary shall be the Participant's estate.
ff . (e)-"Board" means the Board of Trustees named to supervise and administer the Fund, as
provided in Section 7.
(1)-"City" means the City of Miami, Florida, and the lands under its jurisdiction from time to
time, as determined by law.
(h) (g) !'Code" means the Internal Revenue Code of 1986, as from time to time amended.
(h) "Compensation" means the remuneration paid a Fire Fighter for services rendered to the
City. Compensation in excess of limitations set forth in Section 401(a)(17) of the Code shall
be disregarded.
(I) The Participant's Compensation 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 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.
(II) The Participant's Compensation or Salary does not include:
(1) any contributions (other than elective contributions described in Internal
Revenue Code Sections 402(e)(3), 408(k)(6), 408(p)(2)(A)(i) or 457(b)) made
by the Employer to a plan of deferred compensation (including a simplified
employee pension described in Code Section 408(k) or a simple retirement
account described in Code Section 408(p), and whether or not qualified) to the
extent that the contributions are not includible in the gross income of the
Participant for the taxable year in which contributed. In addition, any
distributions from a plan of deferred compensation (whether or not qualified)
are not considered Compensation, regardless of whether such amounts are
includible in the gross income of the Participant when distributed.
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(2) Any amounts that receive special tax benefits, such as premiums for group
term life insurance (but only to the extent that the premiums are not includible
in the gross income of the Participant and are not salary reduction amounts
that are described in Code Section 125).
(III) For any person who first becomes a Participant 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 Section 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
Section 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 Section 401(a)(17).
(IV) Annual Compensation means Compensation paid during the Plan Year or such other
consecutive 12-month period over which Compensation is otherwise determined
under the Plan ("determination period"). The cost -of -living adjustment in effect for
the calendar year applies to annual Compensation for the determination period that
begins with or within such calendar year. Amounts under Code Section 125 exclude
any amounts not available to a Participant in lieu of group health coverage (deemed
Code Section 125 compensation). An amount will be treated as an amount under
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Code Section 125 only if the Employer does not request or collect information
regarding the Participants' other health coverage as part of the enrollment process for
the health plan.
(i)-"Credit" means, with respect to any Participant, each calendar month during which he is
on Active Duty for at least 15 days.
(k) (})-"Designated Beneficiary" means the individual who is designated by the Participant (or
the Participant's surviving spouse) as the Beneficiary of the Participant's interest under the
Fund and who is the designated beneficiary under § 401(a)(9) of the Code and § 1.401(a)(9)-
4 of the regulations.
(11) (k) "Direct rollover" means a payment by the Fund to the eligible retirement plan specified
by the Distributee.
(I)-"Disabilitv" means total and permanent disability, as defined herein:
(I) Total Disability means a situation where, if, in the opinion of the Board of Trustees,
the Fire Fighter is wholly prevented from rendering useful and efficient service as a
Fire Fighter; and
(11) Permanent Disability means a situation where, in the opinion of the Board of
Trustees, the Fire Fighter is likely to remain so disabled continuously and
permanently from a cause other than is specified in Section 2(m)(III)(1).
(III) A Fire Fighter will not be entitled to receive any Disability Retirement Benefit under
Section 6(c) if the Disability is a result of:
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(1) Excessive and habitual use by the Fire Fighter of drugs, intoxicants, or
narcotics:
(2) Injury or disease sustained by the Fire Fighter while willfully and illegally
participating in fights, riots, or civil insurrections or while committing a
crime;
(3) Injury or disease sustained by the Fire Fighter while serving in any armed
forces; or
(4) Injury or disease sustained by the Fire Fighter after his or her employment has
terminated.
(IV) No Fire Fighter shall be permitted to retire due to Disability until he or she is
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 Section 175.191, Florida Statutes. Any Fire Fighter retiring due to
Disability 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.
(m) "Distributed Participant" means any Participant who no longer has an account balance
in the Fund and has no credit due for prior service.
{n) "Distributee" means an employee or former employee. In addition, the employee's or
former employee's surviving spouse are distributees with regard to the interest of the spouse
or former spouse.
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(o) "Distribution Calendar Year" means a calendar year for which a minimum distribution
is required. For distributions beginning before the Participant's death, the first distribution
calendar year is the calendar year immediately preceding the calendar year which contains
the Participant's Required Beginning Date. For distributions beginning after the Participant's
death, the first distribution calendar year is the calendar year in which distributions are
required to begin under Section 6(h)(II)(2). The required minimum distribution for the
Participant's first distribution calendar year will be made on or before the Participant's
Required Beginning Date. The required minimum distribution for other distribution calendar
years, including the required minimum distribution for the distribution calendar year in
which the Participant's Required Beginning Date occurs, will be made on or before
December 31 of that distribution calendar year.
(p)-"DROP Participant" means any Participant who has elected to participate in the deferred
retirement option program (DROP) from the City of Miami Fire Fighters' and Police Officers'
Retirement Trust (FIPO).
(q) "Eligible Retirement Plan" means any of the following types of plans that accept the
distributee's eligible rollover distribution:
(I) a qualified plan described in Section 401(a) of the Code;
(II) an annuity plan described in Section 403(a) of the Code:,
(III) an individual retirement account or individual retirement annuity described in Section
408(a) or 408(b) of the Code, respectively;
(IV) an annuity contract described in Section 403(b) of the Code; and
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(V) an eligible plan under Section 457(b) of the Code which is maintained by a state,
political subdivision of a state, or any agency or instrumentality of a state or political
subdivision of a state and which agrees to separately account for amounts transferred
into such plan from this Fund.
(r3—"Eligible Rollover Distribution" means any distribution of all or any portion of the
balance to the credit of the distributee, except that an eligible rollover distribution does not
include:
(I) any distribution that is one of a series of 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 years or more; and
(II) any distribution to the extent such distribution is required under Section 401(a)(9) of
the Code; and
(III) after-tax amounts unless such amount is transferred to an individual retirement
account or individual retirement annuity described in Section 408(a) or 408(b) of the
Code, respectively, or transferred to a defined contribution plan qualified under
Section 401(a) of the Code that agrees to separately account for such amount.
ft) "FIPO" means the City of Miami Fire Fighters' and Police Officers' Retirement Trust, a
defined benefit plan established by the City of Miami, Florida.
(s) "FIPO DROP Account" means a DROP account under FIPO.
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(t)-'Fire Fighter" means anyone defined as a firefighter in Chapter Section 175.032, Florida
Statutes, as amended.
(u) "Fund" means the Miami Fire Fighters' Relief and Pension Fund, as provided for herein.
(v) "Fund Year" means the calendar year, which shall be the fiscal year on which the Fund's
records shall be kept.
(yl (w) "Leave" means (I) any period during which an employee is absent due to (li) service in
the uniformed services of the United States; `2i4) the birth or adoption of a child, or caring for
a child, spouse or parent who has a serious health condition or (iii) his own serious health
condition if Credit or Vesting Service, as the case may be, is required to be given for such
periods under the Uniformed Services Employment and Reemployment Rights Act of 1994
or the Family and Medical Leave Act of 1993, respectively, and (II) any other period of leave
as approved on a non-discriminatory basis by the Board.
(x) "Life Expectancy" means the life expectancy as computed by use of the Single Life
Table in § 1.401(aX(9)-9, Q&A-1, of the regulations.
(aa) "Maximum Permissible Amount" means the maximum Annual Addition that may be
contributed or allocated to a Participant's Account under the Plan for any calendar year in
accordance with Treasury Regulation 1.415(c)-1(a)(1), which is the lesser of $40,000, as
adjusted for cost -of -living under Code section 415(d) or 100% of a Participant's
Compensation for such calendar year.
(bb) (y) "Participant" means every Fire Fighter in Permanent Status.
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(cc) (z) "Permanent Status" means employment as a Fire Fighter who has been regularly
appointed, after serving a probationary period not to exceed two years, to a position which
normally involves continuous year-round service.
(dd) (aa) "Plan" means the Miami Fire Fighters' Relief and Pension Fund, as provided for herein.
(ee) (cc) "Required Beginning Date" means the later of the April 1 following (i) the calendar
year in which the Participant attains age 70'A or (ii) the calendar year in which the Participant
terminates his employment.
(ff) (dd) "State" shall mean the State of Florida.
(gg) (ee) "Trustee" means any member of the Board.
(hh) (ff) "Valuation Date" means the first business day of any calendar quarter and such other
dates as the Board may deem necessary.
ii (gg)-"Vesting Service" means, with respect to a Participant, each calendar month as a
Participant for which he receives compensation from the City for at least 15 days; and each
calendar month during which he is absent on a Leave for at least 15 days; provided, however,
Vesting Service shall not include any Leave within the meaning of paragraph (k)(II) of
Sep on 2 Section 2(x)(II) which exceeds five years.
Section 3 Funding
(a) Contributions. The City shall contribute to the Fund each year an amount equal to the
amount it receives under the provisions of Chapter 175, Florida Statutes, as amended. The
City shall make its contributions to the Fund as soon as possible but in no event later than
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five days of its receipt of such amount. The City shall not be required to levy any additional
taxes on its residents to make any contributions to the Fund. Notwithstanding anything in
this subsection (a) to the contrary, premium to the contrary in this subsection (a), premium
tax revenues received in calendar year 2013 in the amount of $3,380,875, and premium tax
revenue received in calendar year 2014 in the amount of $3,380,875, shall be transferred
from the Fund to the City of Miami Fire Fighters' and Police Officers' Retirement Trust
("FIPO") to reduce the City's annual required contribution to FIPO for the 2012-2013 and
2013-2014 plan years. Provided, if the actual amount of premium tax revenues received in
calendar year 2013 or 2014 is less than $3,530,875, then the actual amount received less the
administrative cost of the Fund shall be transferred to FIPO to reduce the City's annual
required contribution to FIPO for the 2012-2013 and 2013-2014 plan years, respectively. The
transfer of premium tax revenues provided in the preceding sentences shall occur within ten
days following the date the premium tax revenues are received by the Fund, and in no event
later than October 31, 2013 for the 2012-2013 plan year and September 30, 2014 for the
2013-2014 plan year. In the event the transfer of premium tax revenues provided above is
not approved by the Florida Division of Retirement, contributions to FIPO shall be increased
by a percentage of firefighter payroll that equals $3,380,875, annually for each year that the
transfer of premium tax revenues is not approved and premium tax revenues equal to
$3,380,875 shall be transferred from the Fund to FIPO and used to reduce the employee
contribution back to the current level.
Payment of Costs, Expenses and Fees. All costs, expenses and fees of administering the
Fund shall be paid from the assets of the Fund in such fashion as the Board shall determine.
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(c) Exclusive Benefit Rule. No part of the corpus or income of the Fund shall be used for, or
diverted to, purposes other than for the exclusive benefit of Participants and other persons
entitled to benefits under the Fund and paying the expenses of the Fund not paid directly by
any other party. No person shall have any interest in, or right to, any part of the earnings of
the assets of the Fund, or any right in, or to, any part of the assets held under the Fund, except
as and to the extent expressly provided in this ordinance.
(d) Custody of Fund Assets. The Board shall hold all assets of the Fund in trust solely for use
in paying the benefits provided by this ordinance and paying the expenses of the Fund as
described in paragraph (b) of this Section 3 Section 3(b). The Board shall deposit all assets
of the fund held in cash in a National or State chartered financial institution whose deposits
are Federally insured. The Board shall keep all securities and evidences of ownership of
other assets of the Fund in a safe deposit box or shall deposit them with a corporate
custodian. Current inventories of such securities and other assets shall be kept as a part of
the permanent records of the Board, which will be audited annually by a Certified Public
Accountant.
Section 4 Participation.
(a) Participation. An Account shall be established for each Participant on the effective date of
this ordinance and for each Fire Fighter who attains Permanent Status subsequent to the
(b)_
Termination of Participation. Every Fire Fighter who becomes a Participant shall remain a
Participant until his Account is fully distributed to him. If a former Fire Fighter on the
reemployment register due to a layoff is rehired within three years of his layoff, the Board
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may, in its sole discretion, give him credit for his prior Vesting Service; provided, however,
the Board shall exercise its discretion in a uniform and non-discriminatory manner with
respect to all persons similarly situated.
Section 5 Allocation To Accounts
(a) Allocation of Contributions. As of each Valuation Date, all contributions made by the City
since the preceding Valuation Date shall be allocated among the Participants' Accounts. The
allocation shall be made solely in the proportion the total number of months of Credit
accrued by each Participant in the immediately preceding calendar year bears to the total
months of Credit of all Participants in that calendar year with no credit given on account of a
Participant's seniority, rank or Compensation.
(b)
Allocation of Forfeitures. As of the last Valuation Date in each Fund Year, and at such
other Valuation Dates as the Board may determine, all amounts forfeited under pas
(a) and (d) of Section 6 Section 6(a) and Section 6(e -) since the preceding date as of which
forfeitures were allocated shall be prorated and credited to the Accounts of the individual
Participants in the same manner as the City's contributions allocated under paragraph (a) of
this Section 5 Section 5(a).
(c) Allocation of Accounts. A Participant may elect, in a time and manner determined by the
Board, to allocate
under paragraphs (a) and (b) of this Section 5 and such portion of his existing Account as the
Board may, in its sole discretion, determine, to a separate investment account established by
the Board pursuant to paragrapl (e)TTI of Section 7 Section i(�.(e)(-II). Any allocations
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made pursuant to this paragraph (c) Section 5(c) shall become effective as of the first
Valuation Date after the expiration of any notice period established by the Board.
(d) Allocation of Investment Gains. The Board shall value the Fund's assets as of each
Valuation Date and shall allocate to the Account of each Participant his share of the increase
or decrease in the fair market value of the Fund's assets. If a separate investment account has
been established by the Board pursuant to paragraph (o)IT) of Section 7 Section 4-7(,e)(-I�,
it shall be valued separately from the rest of the Fund and the Board shall allocate to the
Account of each Participant his share of the increase or decrease in the fair market value of
the separate investment account's assets. The Participant's share of the increase or decrease
in the fair market value of the Fund or the separate investment account shall bear the same
ratio to the total amount of the increase or decrease in the Fund or the separate investment
account, as the case may be, as the value of the portion of the Participant's Account invested
in the Fund or the separate investment account bears to the total value of the Fund or the
separate investment account, as the case may be.
(e) Allocations After Termination. Except as otherwise provided in this paragraph (e) Section
5(e), no amounts shall be credited to a Participant's Account under paragraph (a) and (b) of
this Section 5 Section 5(a) and Section 5(b) after he ceases to be on Active Duty. However,
until completely distributed to him, the Account of a Participant not on Active Duty shall
continue to be invested as part of the Fund and shall continue to share in the investment gains
and losses of the Fund in accordance with the provisions of paragraph (d) of this Section 5
Section 5(d). A Participant shall continue to receive allocations of contributions and
forfeitures under paragraphs (a) and (b) of this Section 5 Section 5(a) and Section 5(b) after
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(f)
(g)
he ceases to be on Active Duty if such contributions and forfeitures are attributable to a
period when he was on Active Duty.
Determination of Account Value. Whenever an event requires the determination of the
value of a Participant's Account, the value shall be computed as of the Valuation Date
coincident with or immediately following the date of the determination.
Maximum Allocation Limitation. Notwithstanding any provision of this ordinance to the
contrary, the Maximum Permissible Amount allocated to the Participant's
Account for any calendar year under the provisions of paragraphs (a` and (b` of ths Sectio 5
Section 5(a) and Section 5(b) shall not exceed the limitations set forth in Section 415 of the
Code and any regulations issued thereunder.
Section 6 Benefits
A Participant shall receive a benefit from the Fund upon his termination of employment, disability,
retirement or death in accordance with this Section 6. However, no Participant shall receive a
benefit from the Fund in excess of the amount credited to his Account.
(a) Termination of Employment. Except as otherwise provided in this Section 6, if a
Participant terminates his employment with the Fire Department for any reason whatsoever
prior to completing nine years of Vesting Service, he shall receive a benefit equal to the
vested portion of his Account determined as follows:
Years of Vesting Service Vested Portion of Account
Less than 3 years 25%
3 years but less than 6 years 50%
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(b)
6 years but less than 9 years 75%
9 or more years 100%
The portion of the Participant's Account which is not vested on his termination of
employment shall be forfeited and allocated to the Accounts of all remaining Participants in
accordance with the provisionsof paragraph (b) of Section 5 Section 5(b). Notwithstanding
the foregoing, a Participant shall be 100% vested in, and have a non -forfeitable right to, his
entire Account f on the termination of the Fund or the complete discontinuation of the
City's contributions to the Fund, (ii) upon attainment of "normal retirement age" as such term
is defined in Section 411(a)(8) of the Code and (iii) in any eligible rollover contributions
made to the Fund pursuant to paragraph (j) of Section 6 Section 6(i).
Death. If a Participant dies before payment of his benefits begin, the Participant shall be
deemed to be 100% vested in his entire Account and the entire amount of his Account shall
be paid to his Beneficiary. The. Board may requireand rely upon such proof of death and
such evidence of the right of any Beneficiary or other person to receive the value of the
Account of a deceased Participant as the Board may deem proper and its determination of the
right of that Beneficiary or other person to receive payment shall be conclusive.
(c) Retirement or Disability. A Participant who retires by reason of length of service or
disability under any other pension plan of the City shall receive the entire amount of his
Account.
(d) Forfeiture for Cause.
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al Notwithstanding anything in this ordinance to the contrary, if a Participant is
convicted of a specified offense, the provisions of ChapterSection 112.3173, Florida
Statutes, as amended, from time to time., shall apply and he shall forfeit all rights to
receive a benefit from the Fund in accordance with the provisions of such
ChapterSection. For purposes of this paragraph (d) Section 6(d), "convicted" and
"specified offense" shall have the meanings given to them in ChapterSection
112.3173.
ICI In addition, upon conviction of any violation in which a Participant or beneficiary
willfully and knowingly makes, or causes to be made, or assists, conspires with, or
urges another to make, or causes to be made, any false, fraudulent, or misleading oral
or written statement or withhold or conceal material information to obtain any benefit
under the Plan, the provisions of Section 175.195, Florida Statute& as amended, shall
apply and a Participant or beneficiary receiving funding under this Plan 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 Plan. For
purposes hereunder, "conviction" means a determination of guilt that is the result of a
plea or trial, regardless of whether adjudication is withheld.
(e) Form of Benefit. A Participant shall receive his benefit in a single lump sum unless he
elects to take it in one of the following optional forms:
al Equal annual payments over a period, designated by the Participant, not to exceed the
life expectancy of the last to survive of the Participant and his Beneficiary. In the
event the Participant dies before all installments have been paid, the remaining
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balance in his Account shall be paid in an immediate lump sum to his Beneficiary, if
still living, or if the Participant does not have a Beneficiary or if the Beneficiary has
predeceased the Participant, to the Participant's estate. Uponwritte„ regue t of the
portion of his unpaid Account after payment of the benefit has commenced.
Notwithstanding the foregoing, if the value of the Participant's Account does not
exceed $1,000, the vested value of the Participant's Account shall be paid from the
Plan pursuant to this Section 6 in a lump -sum. The value of the Participant's vested
Account for purposes of this Section 6(e)(I) shall be determined by including rollover
contributions (and earning allocable thereto) within the meaning of Code Section
402(c), 403(a)C4), 403(b)(8), 408(d)(3)(a)(ii), and 457(e)(16).
al A combination of a lump sum and annual installments as provided in sub 4)
Section 6(e)(I) above.
A written notice of election to receive payments in an optional form must be filed with the
Board upon a form prescribed by the Board, and must be sworn to by the person entitled to
receive such monies. Upon written request of the Participant (or his Beneficiary in the event
of the Participant's death), the Board may permit the Participant (or his Beneficiary, as the
case may be) to withdraw all or any portion of his unpaid Account after payment of the
benefit has commenced. The Board may, upon written request by the Participant, or by a
dependent when authorized by either a Participant or Beneficiary, authorize the Fund to
withhold from the annual payments those funds that are necessary to pay for benefits being
received through the City; to pay the certified bargaining agent of the City; or to make any
18
payments for child support or alimony. The Board may, upon written request of the
Participant, recognize elections made pursuant to Section 845 of the Pension Protection Act
of 2006 or otherwise.
Payment of Benefits. Benefits under this Section 6 shall be payable as soon as possible
following the Valuation Date coincident with or next following the Participant's termination
of employment with the Fire Department unless the Participant elects, in a time and manner
determined by the Board, either (i) to have his benefits commence as of a later Valuation
Date or (ii) to transfer up to his vested balance (determined in accordance with paragraph (a)
of this Sectio„ 6 Section 6(a)) prior to the Participant's termination of employment for the
sole purpose of purchasing credited service in the City of Miami Fire Fighters' and Police
Officers' Retirement Trust pursuant to paragraph {g) of this Section 6 Section 6(g).
However, in no event shall benefits commence after the first Valuation Date coincident with
or immediately following the later of the Participant's -Required Beginning Date under 65th
Section 6(h) or his termination of
employment with the Fire Department. Payment of a Participant's Account as provided in
this Section 6 shall be in full settlement of all claims of a Participant against the Fund.
Purchase of Credited Service. Upon approval of the Board of Trustees of the City of
Miami Fire Fighters' and Police Officers' Retirement Trust, a Participant shall be permitted to
purchase credited service in, and in accordance with the provisions of, that trust, prior to the
Participant's termination of employment using benefits paid by the Fund under paragraph-(4)
of this Section 6 Section 6(f).
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(h) Required Distributions. In no event shall the provisions of this ordinance operate so as to
allow the distribution of a Participant's Account to begin after the later of the April 1
he terminates his employment on after (the Participant's Required Beginning Date4-as such
term is defined in Section 2(ee). In the event a Participant is required to begin receiving
elect to receive payments while in service in accordance with option (I) or (II) as follows:
(1)
A Participant may receive one lump sum payment on or before his required beginning
ual lump sum -payments -thereafter -of
satisfy-the-minimum-distfibutien-Fequirements-ef-Seetien-40-1-(a)(9)-ef-the-Cede
the Participant and his Beneficiary. Such life expectancy will not be recalculated.
An election under this paragraph (h) shall be made by a Participant by giving written notice
to the Board within the 90 day period prier to his required beginning date. Upon the
in accordance with the provisions of this Section 6. In the event a Participant fails to make
(II) above.
distributions from the Fund shall conform to the regulations issued tinder Section 101(a)(9)
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Code. Further, such regulations shall override any provision of this ordinance that is
ine nsi to t „ itl, Section '10 (a(o) eft a Cod0
or after January 1, 2007, the Plan will apply t
'101(a)(9) that were proposed on January 17, 2001.
(I) With respect to distributions made for distribution calendar years beginning on and
after January ,, 2007, tIle Plan , ,:l appl„ the ,,, ,,, distr;b„to,, r mentn of Section
'101(a)(9) of the Code in accordance with the regulations under Section 401(a)(9) that wcrc
(B), as follows:
(A) One lump sum payment en or before the Participant's required
beginning .sate a ,a t^ hie entire Account balance. or
Eu) n „nual ents ^f the .,, ,nt „ t,, satisfy the
rements of Section 101(a)(9) of the Code. With
respect to distribution calendar years commencing on and after January 1,
2007,n c nt Gh ll tt, be e to f. o
(1) the quotient obtained by dividing the Participant's Accounts by the
di-sst rvution- perio--n^r--cntl'e-Uniforrm r—nrretime—Table—s t f rth Se tie
21
(2) if the Participant% sole designated beneficiary for the distribution
calendar year is the Participant's spousc, the quotient obtained by dividing the
forth in Section 1.101(a)(9) 9 of the Treasury regulatiens, using the
An election under this Section shall be made by a Participant by giving written notice
to the Board within the 90 day period prior to his required beginning datc. The
Lion ^72 a de T tho t . Panic t f i t� ke
�tHi�9$eS-{-�f-��cxvrr�s-vrtl3$-�vu�� u�-mcrpc'arrzzzirs-co�nmcv
abeam
n n
Code and Section 1.101(a)(9) 1, Q&A '1 of the Treasury regulations.
(ii) "Distribution calendar year" means a calendar year for which a
11 1 11 1
s
Accounts of the last Val„ntio., Date r. the c lender . iediately
preceding the -distribution calendar year ("valuation calendar year") incre :red
by he a unt of contributions made and allocated or f rfeitaFes allocated to
thc Participant's Accounts as of dates in the valuation calendar year after such
last Valuation Date and decreased by distributions made in the valuation
calen yeaar a 'er suc t-31eluaton Dates. TTe—rPa tieipa ''s Aeeeunts for
year if distrib„ter? or transf rred in the valuation calendar ,mar
beginning with the first distribution calendar year and up to and including the
distribution calendar year that includes the Participant's date of death.
established by thc Board pursuant to paragraph (e)(II) of Section 7 and the value of
constitute an annuity starting date for purposes of Sectiox 72 of the Code. In the
nde aoaerda ee with the proviniona cif Subaeetie (ll)(B) above
23
The provisions of Section 401(a)(9) of the Code -and the regulations thereunder shall
(i) General Rules
(1) Notwithstanding any other provision of this Fund, all distributions from the
Fund shall conform to the requirements of Section 401(a)(9) of the Code,
including the incidental death benefit provisions of Section 401(a)(9)(G) of
the Code. Such requirements shall be administered in accordance with the
regulations issued under Section 401(a)(9) of the Code.
(2) Effective Date. The provisions of this Section 6(i) will apply for purposes of
determining required minimum distributions for calendar years beginning with
the 2003 calendar year.
(3) TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of
this Section 6(h), distributions may be made under a designation made before
January 1, 1984, in accordance with section 242(b)(2) of the Tax Equity and
Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate
to section 242(b)(2) of TEFRA.
(II) Time and Manner of Distribution.
(1) Required Beginning Date. The Participant's entire interest will be distributed,
or begin to bedistributed, to the Participant no later than the Participant's
Required Beginning Date.
24
(2) Death of Participant Before Distributions Begin. If the Participant dies before
distributions begin, the Participant's entire interest will be distributed, or begin
to be distributed, no later than as follows:
(a) If the Participant's surviving spouse is the Participant's sole designated
beneficiary, then distributions to the surviving spouse will begin by
December 31 of the calendar year immediately following the calendar
year in which the Participant died, or by December 31 of the calendar
year in which the Participant would have attained age 70 1/2, if later.
(b)
If the Participant's surviving spouse is not the Participant's sole
designated beneficiary, then distributions to the designated beneficiary
will begin by December 31 of the calendar year immediately following
the calendar year in which the Participant died.
(c) If there is no designated beneficiary as of September 30 of the year
following the year of the Participant's death, the Participant's entire
interest will be distributed by December 31 of the calendar year
containing the fifth anniversary of the Participant's death.
(d) If the Participant's surviving spouse is the Participant's sole designated
beneficiary and the surviving spouse dies after the Participant but
before distributions to the surviving spouse begin, this Section
6(h)(II)(2), other than Section 6(h)(II)(2)(a), will apply as if the
surviving spouse were the Participant.
For purposes of this Section 6(h)(II)(2) and Section 6(h)(IV)(2) unless Section
6(h)(II)(2)(d) applies, distributions are considered to begin on the participant's
Required Beginning Date. If Section 6(h)(II)(2)(d) applies, distributions are
considered to begin on the date distributions are required to begin to the surviving
spouse under Section 6(h)(II)(2)(a). If distributions under an annuity purchased from
an insurance company irrevocably commence to the Participant before the
Participant's Required Beginning Date (or to the Participant's surviving spouse before
the date distributions are required to begin to the surviving spouse under Section
6(h)(H)(2)(a)) the date distributions are considered to begin is the date distributions
actually commence.
(3) Forms of Distribution. Unless the Participant's interest is distributed in the
form of an annuity purchased from an insurance company or in a single sum
on or before the Required Beginning Date, as of the first distribution calendar
year distributions will be made in accordance with Section 6(h)(III) and
Section 6(h)(IV)(2). If the Participant's interest is distributed in the form of an
annuity purchased from an insurance company, distributions thereunder will
be made in accordance with the requirements of Section 401(a)(9) of the Code
and the Treasury regulations.
(III) Required Minimum Distributions During Participant's Lifetime.
1l) Amount of Required Minimum Distribution For Each Distribution Calendar
Year. During the Participant's lifetime, the minimum amount that will be
distributed for each distribution calendar year is the lesser of:
26
(a) the quotient obtained by dividing the Participant's account balance by
the distribution period in the Uniform Lifetime Table set forth in
Section 1.401(a)(9)-9 of the Treasury regulations, using the
Participant's age as of the Participant's birthday in the distribution
calendar year; or
(b) if the Participant's sole designated beneficiary for the distribution
calendar year is the Participant's spouse, the quotient obtained by
dividing the Participant's account balance by the number in the Joint
and Last Survivor Table set forth in Section 1.401(a)(9)-9 of the
Treasury regulations, using the Participant's and spouse's attained ages
as of the Participant's and spouse's birthdays in the distribution
calendar year.
(2) Lifetime Required Minimum Distributions Continue Through Year of
Participant's Death. Required Minimum Distributions will be determined
under this Section 6(h)(III) beginning with the first distribution calendar year
and up to and including the distribution calendar year that includes the
Participant's date of death.
(IV) Required Minimum Distributions After Participant's Death:
(1) Death On or After Date Distributions Begin
(a) Participant Survived by Designated Beneficiary. If the Participant dies
on or after the date distributions begin and there is a designated
27
beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant's death is the
quotient obtained by dividing the Participant's account balance by the
longer of the remaining life expectancy of the Participant or the
remaining life expectancy of the Participant's designated beneficiary,
determined as follows:
(1) The Participant's remaining life expectancy is calculated using
the age of the Participant in the year of death, reduced by one
for each subsequent year.
(2) If the Participant's surviving spouse is the Participant's sole
designated beneficiary, the remaining life expectancy of the
surviving spouse is calculated for each distribution calendar
year after the year of the Participant's death using the surviving
spouse's age as of the spouse's birthday in that year. For
distribution calendar years after the year of the surviving
spouse's death, the remaining life expectancy of the surviving
spouse is calculated using the age of the surviving spouse as of
the spouse's birthday in the calendar year of the spouse's death,
reduced by one for each subsequent calendar year.
(3) If the Participant's surviving spouse is not the Participant's sole
designated beneficiary, the designated beneficiary's remaining
life expectancy is calculated using the age of the beneficiary in
the year following the year of the Participant's death, reduced
by one for each subsequent year
(b) No Designated Beneficiary. If the Participant dies on or after the date
distributions begin and there is no designated beneficiary as of
September 30 of the year after the year of the Participant's death, the
minimum amount that will be distributed for each distribution calendar
year after the year of the Participant's death is the quotient obtained by
dividing the Participant's account balance by the Participant's
remaining life expectancy calculated using the age of the Participant in
the year of death, reduced by one for each subsequent year.
(2) Death Before Date Distributions Begin.
(a) Participant Survived by Designated Beneficiary. If the Participant dies
before the date distributions begin and there is a designated
beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant's death is the
quotient obtained by dividing the Participant's account balance by the
remaining life expectancy of the Participant's designated beneficiary,
determined as provided in Section 6(h)(IV)(1).
(b) No Designated Beneficiary. If the Participant dies before the date
distributions begin and there is no designated beneficiary as of
September 30 of the year following the year of the participant's death,
distribution of the Participant's entire interest will be completed by
December 31 of the calendar year containing the fifth anniversary of
the Participant's death.
(c) Death of Surviving Spouse Before Distributions to Surviving Spouse
Are Required to Begin. If the Participant dies before the date
distributions begin, the Participant's surviving spouse is the
Participant's sole designated beneficiary, and the surviving spouse dies
before distributions are required to begin to the surviving spouse under
Section 6(h)(II)(2)(a), this Section 6(h)(IV)(2) will apply as if the
surviving spouse were the Participant.
(V) Election to Apply 5-Year Rule to Distributions to Designated Beneficiaries. If the
Participant dies before distributions begin and there is a designated beneficiary.,
distribution to the designated beneficiary is not required to begin by the date specified
in Section 6(h)(II)(2), but the Participant's entire interest will be distributed to the
designated beneficiary by December 31 of the calendar year containing the fifth
anniversary of the Participant's death. If the Participant's surviving spouse is the
Participant's sole designated beneficiary and the surviving spouse dies after the
Participant but before distributions to either the Participant or the surviving spouse
begin, this election will apply as if the surviving spouse were the Participant.
(VI) Election to Allow Participants or Beneficiaries to Elect 5-Year Rule. Participants or
beneficiaries may elect on an individual basis whether the 5-year rule or the life
expectancy rule in Section 6(h)(II)(2) and Section 6(h)(IV)(2) of the Plan applies to
distributions after the death of a Participant who has a designated beneficiary. The
30
election must be made no later than the earlier of September 30 of the calendar year
in which distribution would be required to begin under Section 6(h)(II)(2), or by
September 30 of the calendar year which contains the fifth anniversary of the
Participant's (or, if applicable, surviving spouse's) death. If neither the Participant nor
beneficiary makes an election under this paragraph, distributions will be made in
accordance with Section 6(h)(II)(2) and Section 6(h)(IV)(2) and, if applicable, the
elections in Section 6(h)(V) above.
(VII) Election to Allow Designated Beneficiary Receiving Distributions Under 5-Year Rule
to Elect Life Expectancy Distributions. A designated beneficiary who is receiving
payments under the 5-year rule may make a new election to receive payments under
the -life -expectancy -rule -until -December 31, 2-003 provided-4hat-all ounts4hat
would have been required to be distributed under the life expectancy rule for all
distribution calendar years before 2004 are distributed by the earlier of December 31,
2003 or the end of the 5-year period.
(VIII) TEFRA Section 242(b)(2) Elections
(1) Notwithstanding the other requirements of this article distribution on behalf of
any employee who has made a designation under § 242(b)(2) of the Tax
Equity and Fiscal Responsibility Act (a "section 242(b)(2) election") may be
made in accordance with all of the following requirements (regardless of
when such distribution commences):
(a) The distribution by the plan is one which would not have disqualified
such plan under § 401(a)(9) of the Internal Revenue Code as in effect
prior to amendment by the Deficit Reduction Act of 1984.
(b) The distribution is in accordance with a method of distribution
designated by the employee whose interest in the plan is being
distributed or, if the employee is deceased, by a beneficiary of such
employee.
(c) Such designation was in writing, was signed by the employee or the
beneficiary, and was made before January 1, 1984.
(d) The employee had accrued a benefit under the plan as of December 31,
1983.
(e) The method of distribution designated by the employee or the
beneficiary specifies the time at which distribution will commence, the
period over which distributions will be made, and in the case of any
distribution upon the employee's death, the beneficiaries of the
employee listed in order of priority.
(2) A distribution upon death will not be covered by this transitional rule unless
the information in the designation contains the required information described
above with respect to the distributions to be made upon the death of the
employee.
(3) For any distribution which commences before January 1, 1984, but continues
14)
after December 31, 1983, the employee, or the beneficiary, to whom such
distribution is being made, will be presumed to have designated the method of
distribution under which the distribution is being made if the method of
distribution was specified in writing and the distribution satisfies the
requirements in Section 6(h)(VIII)(1)(a) and (e).
If a designation is revoked, any subsequent distribution must satisfy the
requirements of § 401(a)(9) of the Code and the regulations thereunder. If a
designation is revoked subsequent to the date distributions are required to
begin, the plan must distribute by the end of the calendar year following the
calendar year in which the revocation occurs the total amount not vet
distributed which would have been required to have been distributed to satisfy
§ 401(a)(9) of the Code and the regulations thereunder, but for the section
242(b)(2) election. For calendar years beginning after December 31, 1988,
such distributions must meet the minimum distribution incidental benefit
requirements. Any changes in the designation will be considered to be a
revocation of the designation. However, the mere substitution or addition of
another beneficiary (one not named in the designation) under the designation
will not be considered to be a revocation of the designation, so long as such
substitution or addition does not alter the period over which distributions are
to be made under the designation, directly or indirectly (for example, by
altering the relevant measuring life).
(51 In the case in which an amount is transferred or rolled over from one plan to
another plan, the rules in § 1.401(a)(9)-8, Q&A-14 and Q&A-15, shall apply.
(j) Direct Rollover of Certain Distributions. Notwithstanding any provision of this wee
Fund to the contrary that would otherwise limit a Distributee's election under this par-agfapil
Section 6(j), a Distributee may elect, at the time and in the manner prescribed by the Board,
to have any portion of an Eligible Rollover Distribution paid directly by the Fund to an
Eligible Retirement Plan specified by the Distributee in a Direct Rollover.
balance to the credit of the distributee, -except that an eligible rollover distribution
does not include any distribution to the extent such distribution is required under
Sectien-1O1(a)() -o€-the-Code,, and -he portion of di tribution that is not
.ludible e;
(II) "Eligible retirement plan" means an individual retirement account described in
secctien-408(a) o e Cod d tirem � desepil d tion
c.� ca-iiiuri�k cznei�i-zscJcrrvcar-in�cacron
'108(b) of the Code, an annuity plan described in section 403(a) of the Code, or a
individual retirement a ,ity.
(III) "Distributee" means an employee or former employee. In addition, the employee's
the-spouset and
34
(IV) "Direct rollover" means a payment by the Fund to the eligible -retirement plan
specified by the distributee.
in a Direct Rollover.
k(� (k). Death of Retired or Separated Participant. Upon the death of a Retired or Separated
Participant, such Participant's surviving spouse shall have all the distribution options that
were available to the Retired or Separated Participant pursuant to this Section 6.
f (I) Loans and/or Hardship Distributions. Loans and/or distributions on account of
hardship shall not be permitted under the Plan.
: (m) Claims Procedures.
(I) Filing a Claim for Plan Distributions. A Participant or Beneficiary who has been
denied a request for a distribution and desires to make a claim for the Vested portion
of his or her Account shall file a request (either in writing or in any other form
permitted under rules promulgated by the IRS and acceptable to the Board of
Trustees) with the Board of Trustees. If such request is required in writing, such
request must be made on a form provided or acceptable to the Board of Trustees for
such purpose. The request shall set forth the basis of the claim. The Board of
Trustees is authorized to conduct such examinations as may be necessary to facilitate
35
the payment of any benefits to which the Participant or the Beneficiary may be
entitled under the terms of the Plan.
(II) Denial of a Claim. Whenever a claim for a Plan distribution submitted in accordance
with this Section 6(1) by any Participant or Beneficiary has been wholly or partially
denied, the Board of Trustees must furnish such Participant or Beneficiary notice
(either in writing or in any other form promulgated by the IRS and acceptable by the
Board of Trustees) of the denial as soon as administratively practicable after the
original claim was filed. The notice shall set forth the specific reasons for the denial.,
specific reference to pertinent Plan provisions on which the denial is based, a
description of any additional information or material needed to perfect the claim, an
explanation of why such additional information or material is necessary and an
explanation of the procedures for appeal.
(III) Remedies Available. The Participant or Beneficiary shall have sixty (60) days from
receipt of the denial notice in which to make written application for review by the
Board of Trustees. The Participant or Beneficiary may request that the review be .in
the nature of a hearing. The Participant or Beneficiary shall have the right to
representation, to review pertinent documents and to submit comments in writing (or
in any other form permitted under rules promulgated by the IRS). The Board of
Trustees shall issue a decision on such review within a reasonable time after receipt
of an
application for review as provided for in this Section 6(1). Upon a decision
unfavorable to. the Participant or Beneficiary, such Participant or Beneficiary shall be
entitled to bring such actions in law or equity as may be necessary or appropriate to
clarify his or her rights to benefits under the Plan.
36
Section 7 Administration
(a) Board of Trustees. There is hereby created a Board of Trustees of the Miami Fire Fighter's
Relief and Pension Fund. The Board shall consist of three Participants in the Fund to be
elected by Participants, the Fire Chief, and a fifth member appointed by the Participants
elected as Trustees. Trustees shall be elected to serve as Trustee for a three year term. The
fifth Trustee appointed to the Board shall serve for a term of one year. The Board shall
annually elect from its membership a Chairman and a Secretary and a Treasurer. The
Chairman, when present, shall preside at all meetings. The Secretary shall keep complete
minutes of all proceedings of the Board. The Treasurer shall supervise the books and records
which record the receipts and disbursements of the Fund and the inventory of assets of the
Fund. The Treasurer shall report at each quarterly meeting, and at such other times as the
Board may determine, the assets and liabilities of the Fund as of the date of such meeting.
Any and all acts and decisions of the Board, except for the appointment of the fifth Trustee,
shall be by at least three affirmative votes of the Board, a quorum being present. Three or
more Trustees shall constitute a quorum. Trustees shall receive no compensation for their
service as such.
(b)
Elections. All elections of Fire Fighters to the Board shall be by secret written ballot. Only
Participants shall be eligible for nomination and election to the Board and shall be eligible to
vote in such elections. Notice of each election shall be given at least two weeks prior to the
date upon which such elections shall be held.
(c) Meetings. The Board will hold regular meetings at least quarterly or more often as
determined by the Board. Special meetings may be called by the Chairman and Secretary or
37
by any three Trustees. Ten days written notice of a special meeting shall be given in writing
to all Trustees, which notice shall contain the purpose, date, time and place of the special
meeting. If any Trustee fails to attend two consecutive meetings of the Board without cause,
as determined by the Board, his membership on the Board shall be terminated. Written
notice of his termination shall be given to the Trustee whose membership is thus terminated.
(d) Replacement of Board Members. If at any time between elections a vacancy occurs on the
Board for any reason whatsoever, the remaining Trustees, by majority vote, shall fill the
vacancy. The new Trustee so chosen shall serve until the next election of the Board of
Trustees, at which time a new Trustee shall be elected to serve the remainder of the term of
the Trustee whose position became vacant.
(e) Powers of the Board. The Board shall have the power and authority as follows:
(I) To invest and reinvest the assets of the Fund and keep them invested, without
distinction between principal and income, in stocks, bonds, stock options, option contracts of
any type, contracts for the immediate or future delivery of financial instruments and other
property, or other securities or certificates of participation or shares of any mutual investment
company, trust or fund, or deposits which bear a reasonable rate of interest, or term life,
annuity or investment contracts issued by an insurance company, or other property of any
kind, real or personal, tangible or intangible, as a prudent man would do under like
circumstances with due regard for the purpose of this Fund. Notwithstanding anything to the
contrary in this Section 7(e), the Board shall be governed by State laws relating
to the investments of fiduciary funds when investing the Fund's assets.
38
(II) To establish one or more separate investment accounts within the Fund. The Board shall
transfer to each such separate investment account such portion of the Fund's assets as the
Participants direct in accordance with the provisions of paragraph (c) of Section 5 Section
5(c). The Board shall invest and reinvest the assets which have been allocated to a separate
investment account in accordance with the investment guidelines, objectives and restrictions
which have been established by the Board for that separate investment account.
(III) To keep such amounts of cash as it, in its sole discretion, shall deem necessary or
advisable as part of the Fund.
(IV) To approve disbursements, pay claims, and authorize payments from the Fund by
warrants signed by at least three Trustees.
(V) To construe and interpret the provisions of this ordinance including, but not limited to,
determination of an individual's eligibility to participate in the Fund, the right and amount of
any. benefit payable under the Fund and the date on which any individual ceases to be a
Participant. The determination of the Board as to the interpretation of this ordinance or any
disputed question shall be conclusive and final to the extent permitted by applicable law.
(VI) To promulgate necessary rules respecting (i) the operation and administration of the
Fund and the transaction of its business and (ii) the elections of Trustees, not in conflict with
the wording or clear intent of this ordinance.
(VII) To authorize expenditures in connection with preliminary research, and for technical,
legal, consulting and accounting services; to contract for employees necessary to the general
39
administration of the Fund and to employ legal counsel, auditors and others necessary to the
proper administration of the Fund.
(VIII) To appoint from their number such committees with such powers as they shall
determine and to allocate among themselves all or such portion of their duties under this
ordinance as they, in their sole discretion, shall decide.
(IX) To take or do any other actions or things permitted to be taken or done by trustees under
any applicable State law.
Bonding. All persons, including Trustees and employees, who sign checks or handle money,
securities or other assets of the Fund shall be bonded by a qualified surety.
Limitation of Liability and Indemnification. The Trustees and any officer, employer or
agent of the Trustees or of the Fund shall not incur any liability individually or on behalf of
any other individuals or on behalf of the Board or the Fund for any act or failure to act, made
in good faith in relation to the Fund or the assets of the Fund. To the extent permitted by
applicable law and the assets of the Fund, the Trustees and the officers, employees and
agents of the Board and the Fund shall be indemnified from the assets of the Fund against
any and all liabilities arising by reason of any act, or failure to act, in relation to the Fund or
the assets of the Fund, including, without limitation, expenses reasonably incurred in the
defense of any claim relating to the Fund or the assets of the Fund and amounts paid in any
compromise or settlement relating to the Fund or the assets of the Fund, except for actions or
failures to act made in bad faith.
40
Section 8 Miscellaneous Provisions
(a) Nonalienation of Benefits. The benefits provided by the Fund shall not be subject to
garnishment, attachment, execution of any other legal process.
(b) City's Responsibilities. The City shall have no responsibility for the operation of the
Fund except those specified herein and shall bear no expense in connection therewith.
(c) Facility of Payment. If the Board shall find that a Participant or other person entitled to a
benefit is unable to care for his affairs or is a minor, or is legally incapacitated, the Board
may direct that any benefit due him shall be paid to his duly appointed legal representative.
Any payment so made shall be a complete discharge of the liabilities of the Fund for that
benefit.
(d) Information. Each Participant, Beneficiary or other person entitled to a benefit, before any
benefit shall be payable to him or on his account under the Fund, shall file with the Board the
information that it shall require to establish his rights and benefits under the Plan.
(e) Amendment. The provisions of this ordinance and the Fund are intended to meet the
requirements of a qualified profit sharing plan under Section 401(a) of the Code and to be
tax-exempt under Section 501(a) of the Code. Should any changes be required to the
ordinance for the ordinance or the Fund to comply or to continue to comply with the
provisions of Sections 401(a) and 501(a) of the Code, the Board shall prepare a statement for
the City describing the changes and the City shall, after reviewing the Board's statement,
make any such required changes to the ordinance.
41
(fl Termination. The Plan may be terminated by the City, subject to full compliance with all
applicable federal, state and local laws and regulations. Written notice of the termination and
effective date thereof shall be given to the Participants and Beneficiaries and any vendors
providing services to the Plan. Until all of the Plan assets havebeen distributed, the Plan will
be kept in full compliance with current laws and regulations by making appropriate
amendments to the Plan and by taking such other measures as may be required. Upon
termination of the Plan, each Participant shall become 100% vested in his or her Account and
the balance shall be non -forfeitable. The balance of each Participant's Account will be
distributed in a lump sum as soon as administratively practicable following the effective date
of the Plan's termination.
(g) USERRA. Notwithstanding any provision of this plan to the contrary, contributions,
benefits and service credit with respect to qualified military service will be provided in
accordance with Code section 414(u).
42