§ 54-77. Definitions.

The following words, terms and phrases, when used in this article, shall have the meanings indicated to them in this section, except where the context clearly indicates a different meaning:

Accumulated contributions means a member's own contributions without interest. For those members who purchase credited service with interest or at no cost to the system, any payment representing the amount attributable to member contributions based on the applicable member contribution rate, and any payment representing interest and any required actuarially calculated payments for the purchase of such credited service, shall be included in accumulated contributions.

Actuarial equivalent means a benefit or amount of equal value, based upon the RP 2000 Mortality Table and an interest rate of eight and one-half percent per annum. This definition may only be amended by the city pursuant to the recommendation of the board with the advice of the plan's actuary, such that actuarial assumptions are not subject to city discretion.

Average final compensation , for members who are employed and not participating in the DROP on January 1, 2013, means one-twelfth of the average salary of the five best years of the last ten years of credited service prior to retirement, termination or death, or the career average as a full-time firefighter, whichever is greater. Provided, in no event shall the average final compensation of a member who is employed and not participating in the DROP on January 1, 2013, be less than one-twelfth of the average salary of the three best years of the last ten years of credited service prior to January 1, 2013. A year shall be 12 consecutive months. In the case of a member who has credited service as a full-time firefighter and as a volunteer firefighter, average final compensation shall be determined in accordance with this subsection, except that a separate calculation shall be made for service as a full-time firefighter and for service as a volunteer firefighter.

Beneficiary means the person or persons entitled to receive benefits under this article at the death of a member who has or have been designated in writing by the member and filed with the board. If no such designation is in effect, or if no person so designated is living, at the time of death of the member, the beneficiary shall be the estate of the member.

Board means the board of trustees, which shall administer and manage the system provided for in this article and serve as trustees of the fund.

City means the City of Port Orange, Florida.

Code means the Internal Revenue Code of 1986, as amended from time to time.

Credited service.

(1)

"Credited service" means the total number of years and fractional parts of years of service as a full-time firefighter with member contributions when required, omitting intervening years or fractional parts of years when such member was not employed by the city as a firefighter. Service as a volunteer firefighter shall be credited at one month of credited service for each complete year of volunteer service. If a member accumulates service as both a full-time firefighter and as a volunteer firefighter, credited service shall be calculated separately for full-time and volunteer service, with the sum of all years and fractional parts of years of service used only for vesting and benefit eligibility purposes. A member may voluntarily leave his accumulated contributions in the fund for a period of five years after leaving the employ of the fire and rescue department pending the possibility of being reemployed as a firefighter without losing credit for the time that he was a member of the system. If a vested member leaves the employ of the fire and rescue department, his accumulated contributions will be returned only upon his written request. If a member who is not vested is not reemployed as a firefighter with the fire and rescue department within five years, his accumulated contributions, if $1,000.00 or less, shall be returned. If a member who is not vested is not reemployed within five years, his accumulated contributions, if more than $1,000.00, will be returned only upon the written request of the member and upon completion of a written election to receive a cash lump sum or to rollover the lump sum amount on forms designated by the board. Upon return of a member's accumulated contributions, all of his rights and benefits under the system shall be forfeited and terminated. Upon any reemployment, a firefighter shall not receive credit for the years and fractional parts of years of services for which he has withdrawn his accumulated contributions from the fund unless he repays into the fund the contributions he has withdrawn, together with interest as determined by the board, within 90 days after his reemployment.

(2)

The years or fractional parts of years that a member performs "qualified military service" consisting of voluntary or involuntary "service in the uniformed services" as defined in the Uniformed Services Employment and Reemployment Rights Act (USERRA) (P.L. 103-353), after separation from employment as a firefighter with the city to perform training or service, shall be added to his years of credited service for all purposes, including vesting, provided that:

a.

The member is entitled to reemployment under the provisions of USERRA.

b.

The member returns to his employment as a firefighter with the city within one year from the earlier of the date of his military discharge or release from active service, unless otherwise required by USERRA.

c.

The maximum credit for military service pursuant to this paragraph shall be five years.

d.

This paragraph is intended to satisfy the minimum requirements of USERRA. To the extent that this paragraph does not meet the minimum standards of USERRA, as it may be amended from time to time, the minimum standards shall apply.

In the event a member dies on or after January 1, 2007, while performing USERRA qualified military service, the beneficiaries of the member are entitled to any benefits (other than benefit accruals relating to the period of qualified military service) as if the member had resumed employment and then died while employed.

Beginning January 1, 2009, to the extent required by section 414(u)(12) of the code, an individual receiving differential wage payments (as defined under section 3401(h)(2) of the code) from an employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of applying the limits on annual additions under section 415(c) of the code. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner.

Effective date means March 17, 1995, the date on which the ordinance from which this article is derived became effective.

Firefighter means an actively employed full-time person employed by the city, including his initial probationary employment period, who is certified as a firefighter as a condition of employment in accordance with the provisions of F.S. § 633.35, and whose duty it is to extinguish fires, to protect life and to protect property. The term "firefighter" shall also include a volunteer firefighter whose name is carried on the active membership rolls of the fire and rescue department and whose duty it is to extinguish fires, to protect life and to protect property. The term 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 firefighters, part-time firefighters, or auxiliary firefighters but does not include part-time firefighters or auxiliary firefighters.

Fund means the trust fund established in this article as part of the system.

Member means an actively employed firefighter who fulfills the prescribed membership requirements. Benefit improvements to the system which have been adopted in the past and which may be made in the future by amendments to this article shall apply prospectively and shall not apply to members who terminate employment or who retire prior to the effective date of any amendment to this article adopting such benefit improvements, unless such amendment specifically provides to the contrary.

Plan year means the 12-month period beginning October 1 and ending September 30 of the following year.

Retiree means a member who has entered retirement status.

Retirement means a member's separation from city employment with eligibility for immediate receipt of benefits under the system or entry in the deferred retirement option plan.

Salary means the member's fixed compensation (base pay) for services rendered to the city as a firefighter, plus all tax-deferred, tax-sheltered and tax-exempt items of income derived from elective employee payroll deductions or salary reductions. Base pay excludes overtime, education pay, specialty and incentive pay, lump sum payments of annual leave, sick leave, and compensation leave, and all other nonregular compensation. Compensation in excess of the limitations set forth in section 401(a)(17) of the Code. As of the first day of the plan year shall be disregarded for any purpose, including employee contributions or any benefit calculations. The annual compensation of each member taken into account in determining benefits or employee contributions for any plan year beginning on or after January 1, 2002, may not exceed $200,000.00, as adjusted for cost-of-living increases in accordance with Internal Revenue Code Section 401(a)(17)(B). Compensation means compensation during the fiscal year. The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year. If the determination period consists of fewer than 12 months, the annual compensation limit is an amount equal to the otherwise applicable annual compensation limit multiplied by a fraction, the numerator of which is the number of months in the short determination period, and the denominator of which is 12. If the compensation for any prior determination period is taken into account in determining a member's contributions or benefits for the current plan year, the compensation for such prior determination period is subject to the applicable annual compensation limit in effect for that prior period. The limitation on compensation for an eligible employee shall not be less than the amount which was allowed to be taken into account in effect on July 1, 1993. Eligible employee means an individual who was a member before the first plan year beginning after December 31, 1995.

Spouse means the lawful wife or husband of a member or a retiree at the time benefits become payable.

System means the city fire and rescue pension fund as contained in this article, and all amendments thereto.

(Ord. No. 2007-29, § 1, 9-18-07; Ord. No. 2010-26, § 1, 9-28-10; Ord. No. 2012-19, § 1, 9-25-2012; Ord. No. 2012-36, § 1, 12-20-2012; Ord. No. 2014-3, § 1, 3-18-2014; Ord. No. 2015-7 , § 1, 6-2-2015)

Editor's note

Ord. No. 2012-36, § 8, adopted Dec. 20, 2012, provides that the benefit changes contained in § 54-77 herein shall not apply to members who attained age 50 with ten or more years of credited service, or 20 years of credited service regardless of age, prior to the effective date of this ordinance.

Cross reference

Definitions and rules of construction generally, § 1-2.