§ 54-122. Definitions.

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

Actuarial equivalence and actuarially equivalent mean that any benefit payable under the terms of this plan in a form other than the normal form of benefit shall have the same actuarial present value on the date payment commences as the normal form of benefit. The determination of the actuarial present value of any form of benefit, including lump sum distributions, shall be based on:

(1)

The RP-2000 static mortality table (h) unisex 50/50 for healthy lives projected to 2010 for healthy participants and the RP-2000 static mortality (d) unisex 50/50 projected to 2010 for disabled participants; and

(2)

The interest discount rate of eight percent per annum, compounded annually.

Average final compensation, for a participant hired on or before January 31, 2011, shall mean one-twelfth of the average annual compensation of the three highest years of service prior to the employee's normal retirement date. "Average final compensation" for a participant hired after January 31, 2011 shall mean one-twelfth of the average annual compensation of the five highest years of service prior to the employee's normal retirement date. Effective January 31, 2011, annual compensation for all participants shall be as defined below.

Board of trustees means the trustees designated in this article, and any successor trustees selected as provided in this article.

Compensation means the monthly salary paid a member by the city for work performed arising from that employment, to include: overtime payments up to 300 hours per year paid from a salary fund; lump-sum payments for accumulated sick and annual leave upon termination of employment, but not to exceed the hours of sick and annual leave accumulated as of March 1, 2011 plus one-half of the hours of sick and annual leave accumulated between March 1, 2011 and March 1, 2012; amounts withheld for tax-sheltered annuities, deferred compensation programs, or any other type of salary reduction plan authorized under the Internal Revenue Code; and payments in addition to the employee's base rate of pay if all of the following apply:

(1)

The payments are paid according to a formal written policy that applies to all eligible employees equally;

(2)

The payments are paid for as long as the employee continues his or her employment; and

(3)

The payments are paid at least annually.

Compensation shall exclude lump sum payments for accumulated sick and annual leave accumulated on or after March 1, 2012, except as otherwise provided above. Compensation for any plan year shall not include any amounts in excess of the maximum amount specified in section 401(a)(17) of the Internal Revenue Code, adjusted in accordance with U.S. Treasury Department regulations. Compensation for any plan year shall not include overtime compensation in excess of 300 hours per calendar year, lump-sum payments for accumulated sick and annual leave upon termination of employment for more than the hours of sick and annual leave accumulated as of March 1, 2011 plus one-half of the hours of sick and annual leave accumulated between March 1, 2011 and March 1, 2012; or extra duty or special detail work performed on behalf of a second party employer.

Notwithstanding the definition of compensation above, compensation for employees hired after January 31, 2011 shall exclude lump sum payments for accumulated sick and annual leave.

Covered employment means service for which an employee is obligated to pay contributions to this pension plan.

Married means a participant who is married on the date of receipt of pension benefits. A participant shall also be considered married if the participant dies before receipt of such benefits, but the participant was married on the date of the participant's death.

Maternity or paternity leave.

(1)

Maternity or paternity leave means a participant's absence from work by reason of:

a.

The pregnancy of the participant;

b.

The birth of a child of the participant;

c.

The placement of a child with the participant in connection with the adoption of such child by the participant; or

d.

The caring for such child by the participant for a period beginning immediately following such birth or placement.

(2)

Solely for purposes of determining whether a break in service has occurred as provided in section 54-125(a), and not for purposes of vesting or benefit accrual, a participant who is absent from work in covered employment due to maternity or paternity leave shall be credited with the hours of service which otherwise would normally have been credited to the participant but for such absence, not to exceed three months per plan year. The hours of service absent from work due to maternity or paternity leave shall be credited, solely for purposes of excusing a break in service:

a.

During the plan year in which the absence began if the crediting of those hours is necessary to prevent a break in service in that plan year; or

b.

In all other cases, in the next following plan year.

Pension and pension benefit mean an early retirement benefit, a normal retirement benefit, or a disability retirement benefit.

Pension plan and plan mean the City of Port Orange Police Pension Plan.

Plan year means the 12-month period from October 1 to the following September 30.

Police officer means any person employed full-time by the city who satisfies the definition of police officer in F.S. § 185.02(11).

Retirement, retired, retires or retire means a participant's separation from city employment with eligibility for and actual receipt of pension benefits under this pension plan.

Service means years and completed months of full-time employment as a police officer of the city, commencing on the date of hire, during which a person contributes to the plan and for which the person is paid, or entitled to payment, by the city:

(1)

For the performance of duties;

(2)

For reasons other than the performance of duties, including vacations, holidays, temporary disability, illness, jury duty, military duty, administrative leave, paid leave or approved leave of absence; or

(3)

As the result of back pay being awarded, or agreed to, by the city, irrespective of mitigation of damages.

Service includes time spent in the military service of the United States or United States Merchant Marine by a police officer on leave of absence; provided that the police officer must have reentered the city's police service within one year of the date of release from service and is entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act. The amount of service shall be ascertained from the most accurate records available, including records of hours, work shifts, days or weeks for which payment is made or owing, as reported to the board of trustees. Service shall be credited for each year for which duties were performed, or, if no duties were performed, then during the year for which the payment relates.

Vested means a nonforfeitable right to a pension benefit under this pension plan.

(Ord. No. 1993-43, § 2, 9-28-1993; Ord. No. 1998-73, § 1, 11-17-1998; Ord. No. 1999-60, § 1, 1-18-2000; Ord. No. 2000-43, § 1, 9-26-2000; Ord. No. 2003-59, §§ 1, 2, 2-18-2003; Ord. No. 2010-23, § 1, 9-7-2010; Ord. No. 2011-2, § 1, 1-31-2011; Ord. No. 2011-3, § 1, 2-15-2011; Ord. No. 2012-4, § 1, 4-15-2012; Ord. No. 2014-20, § 1, 10-28-2014; Ord. No. 2014-24 , § 1, 1-6-2015)

Cross reference

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