§ 54-146. Definitions.

(a)

The following words and phrases shall have the meanings stated below unless a different meaning is plainly required by the context:

Accrued benefit: As of a given date (on or before the participant's termination of service for any reason), accrued benefit shall mean, subject to the limitations of section 54-149, the monthly retirement income computed in accordance with subsection 54-150(b)(1) or (b)(2)b. based on the participant's average monthly compensation as of such given date multiplied by the participant's number of years of credited service, (whichever is applicable) which he has accrued to such given date.

Notwithstanding the provisions of this subsection 54-146(a)(1), a participant who has satisfied the requirements for early retirement as specified in subsection (a)(11) herein, shall have an accrued benefit not less than his largest accrued benefit after satisfying the early retirement requirements.

A participant's accrued benefit at any moment in time on or before his normal retirement date shall be considered as payable to him commencing on his normal retirement date in the normal form of payment unless elsewhere herein modified as to right of payment, timing of payment, amount of payment, or form of payment.

Actuarial equivalent: The equality in value of aggregate amounts expected to be received under different forms of payment. The assumptions as to interest and mortality used in such calculations shall be based on the 1983 Group Annuity Mortality Table post-retirement only and eight percent interest pre- and post-retirement.

Anticipated average monthly compensation: The average monthly compensation determined on the assumption that the basic compensation paid the participant in the last plan year (in which he was paid for 12 months of service) next preceding his date of death, termination of service, or disability, whichever is applicable, would have been paid each plan year, without change, to his normal retirement date.

Anticipated credited service: The sum of the credited service actually earned by the participant as of the end of the plan year next preceding the date of termination of service for any reason plus the additional years and fractions thereof, from the end of the plan year next preceding such date until his normal retirement date.

Anticipated monthly retirement income at normal retirement date: The participant's retirement income calculated as for normal retirement as set forth in section 54-150, but based on his anticipated credited service and anticipated average monthly compensation.

Average monthly compensation.

(1)

For participants hired prior to January 1, 2012, the participant's average monthly rate of basic compensation from the city for the five successive plan years out of the ten plan years immediately preceding the date on which the service terminates for any reason, which give the highest average monthly rate of basic compensation for the participant. The participant's average monthly rate of basic compensation will be determined by dividing the total of the basic compensation received during the five-plan-year period by 60. If there are less than five full plan years available, the participant's average monthly rate of basic compensation will be determined by dividing the total of the basic compensation received during the period (up to a maximum of 60 months) from the participants date of hire to his date of termination, by the number of months in such period (to a maximum of 60). If such participant has been employed for more than 60 months (but less than five full plan years), the period of 60 successive months that include the highest total earnings will be used.

(2)

For participants hired on or after January 1, 2012, the participant's average monthly rate of basic compensation from the city for the eight successive plan years out of the ten plan years immediately preceding the date on which the service terminates for any reason, which give the highest average monthly rate of basic compensation for the participant. The participant's average monthly rate of basic compensation will be determined by dividing the total of the basic compensation received during the eight plan year period by 96. If there are less than eight full plan years available, the participant's average monthly rate of basic compensation will be determined by dividing the total of the basic compensation received during the period (up to a maximum of 96 months) from the participants date of hire to his date of termination, by the number of months in such period (to a maximum of 96). If such participant has been employed for more than 96 months (but less than eight full plan years), the period of 96 successive months that include the highest total earnings will be used.

Basic compensation: The total compensation actually paid to a participant in a plan year by the city, excluding any overtime pay, payments for accrued annual leave, payments for accrued sick leave, payments for accrued compensatory leave, commissions, bonus payments, expense allowances and all other forms of extraordinary compensation, plus all tax deferred or tax exempt items of compensation.

Beneficiary: If a participant is legally married under the laws of the state then his spouse shall be his beneficiary for any death benefit payable under the plan. The participant may designate someone other than his spouse as his beneficiary, which may include a trust, providing the spouse has consented in writing and such consent is witnessed by the retirement committee or a notary public to waive his or her rights to any death benefit payable under the plan. Also the spouse must acknowledge on the consent form who the nonspouse designated beneficiary is and the relationship to the participant. Notwithstanding this consent requirement, if the participant establishes to the satisfaction of the retirement committee that such written consent may not be obtained because there is no spouse or the spouse cannot be located, a waiver will be deemed a qualified election. If a participant is not married than he may designate the beneficiary of his choice.

City: City of Port Orange.

Credited service: The total period of an employee's service computed in years and completed calendar months, from his last date of employment until his normal retirement date or, if earlier, his date of actual retirement or termination of service, except as provided in section 54-152 and the following paragraph.

The period of any absence of 31 days or more will be excluded from an employee's credited service unless he receives regular compensation from the city during such absence and except as otherwise provided in this section.

An employee shall be eligible to receive up to five years of credited service in the uniformed services of the United States as provided in the Uniformed Services Employment and Reemployment Rights Act of 1994 as amended, provided that the employee:

(1)

Was employed by the city when he or she entered the uniformed services;

(2)

Is reemployed by the city within the time specified in the act;

(3)

Leaves his or her contributions in the plan during the period of military service; and

(4)

Deposits into the fund within a period that does not exceed the period of military service the participant contributions that would have been required to have been made by participants during the period of such service based on the participant's basic compensation prior to entering military service, for each month of credited service, together with interest at the rate of five percent from the date of reemployment to the date of deposit.

The foregoing paragraph is intended to comply with all applicable provisions of the Uniform Services Employment and Reemployment Rights Act of 1994, as amended, and in the event of any conflict or inconsistency with the act, the provisions of the act shall be controlling.

A participant may voluntarily leave his or her mandatory participant contributions in the trust fund for a period of five years after leaving the employ of the city, pending the possibility of being rehired by the city. If the participant is not reemployed within five years, and his or her contributions (including interest) do not exceed $1,000.00, the contributions shall be returned with interest credited to the date of termination pursuant to section 54-148, and without interest from the date of termination to the date the contributions are returned. If the amount of contributions (including interest) exceeds $1,000.00, the contributions shall be returned to the participant upon the participant's request, with interest credited to the date of termination pursuant to section 54-148, and without interest from the date of termination to the date the contributions are returned.

Effective October 1, 2008, credited service shall also include any part of completed calendar months of service that an active participant previously served as an employee with the city, for which the participant received a refund of contributions from the City of Port Orange General Employees Defined Benefit Retirement Plan, provided that the active participant contributes to the trust fund an amount which represents the actuarial equivalent of the value of the benefits attributable to such prior service credits on date of deposit, along with the costs of all professional services rendered to the retirement committee in connection with the calculation. Provided however, effective October 1, 2008, a participant of the City of Port Orange General Employees Defined Benefit Retirement Plan may purchase credited service for employment with the city on and after October 1, 2003, but only for prior service that the participant was previously a participant of the City of Port Orange General Employees Defined Benefit Retirement Plan.

Early retirement date: The first day of the month coincident with or next following the date an employee retires after he has both attained age 55 and his credited service equals or exceeds ten years, but prior to his normal retirement date.

Early retirement reduction factor: The factor specified in the schedule below:

Months by Which the Early Retirement Date
Precedes the Normal Retirement Date

No. of months	Factor	No. of months	Factor	No. of months	Factor
120	.7000	80	.8000	40	.9000
119	.7025	79	.8025	39	.9025
118	.7050	78	.8050	38	.9050
117	.7075	77	.8075	37	.9075
116	.7100	76	.8100	36	.9100
115	.7125	75	.8125	35	.9125
114	.7150	74	.8150	34	.9150
113	.7175	73	.8175	33	.9175
112	.7200	72	.8200	32	.9200
111	.7225	71	.8225	31	.9225
110	.7250	70	.8250	30	.9250
109	.7275	69	.8275	29	.9275
108	.7300	68	.8300	28	.9300
107	.7325	67	.8325	27	.9325
106	.7350	66	.8350	26	.9350
105	.7375	65	.8375	25	.9375
104	.7400	64	.8400	24	.9400
103	.7425	63	.8425	23	.9425
102	.7450	62	.8450	22	.9450
101	.7475	61	.8475	21	.9475
100	.7500	60	.8500	20	.9500
99	.7525	59	.8525	19	.9525
98	.7550	58	.8550	18	.9550
97	.7575	57	.8575	17	.9575
96	.7600	56	.8600	16	.9600
95	.7625	55	.8625	15	.9625
94	.7650	54	.8650	14	.9650
93	.7675	53	.8675	13	.9675
92	.7700	52	.8700	12	.9700
91	.7725	51	.8725	11	.9725
90	.7750	50	.8750	10	.9750
89	.7775	49	.8775	9	.9775
88	.7800	48	.8800	8	.9800
87	.7825	47	.8825	7	.9825
86	.7850	46	.8850	6	.9850
85	.7875	45	.8875	5	.9875
84	.7900	44	.8900	4	.9900
83	.7925	43	.8925	3	.9925
82	.7950	42	.8950	2	.9950
81	.7975	41	.8975	1	.9975
				0	1.0000

 

Effective date of the plan: April 1, 1979.

Employer: City of Port Orange.

General employee: Any duly employed general employee in the regular full-time service of the city; provided, however, that such term shall not include the mayor, city council members, police officers, firefighters or any person employed for a temporary period or for a temporary job.

Leave of absence: An absence from the active service of the city because of sickness, disability, jury duty, military duty, a temporary layoff by the city, or any other reason on the basis of uniform policy applied by the city without discrimination. Such a leave of absence will not terminate an employee's service provided he or she returns to the active employment of the city at or prior to the expiration of the leave of absence or, if not specified therein, within the period of time which accords with the city's policy or federal law with respect to permitted absences. If the employee does not return to the active service of the city at or prior to the expiration of the leave of absence as above defined, his or her service will be considered terminated as of the date on which the leave of absence began.

Leave of absence shall also include an absence from work for any period by reason of the employee's pregnancy, birth of the employee's child, placement of a child with the employee in connection with the adoption of such child, or any absence for the purpose of caring for such child for a period immediately following such birth or placement. Such a leave of absence will not terminate an employee's service and shall be considered as credited service under the plan to the extent required by the Family and Medical Leave Act of 1993 ("FMLA"), provided he or she complies with all of the requirements of federal law in order to be entitled to reemployment and benefit rights for employees taking leaves under the FMLA, and provided further that he or she returns to the active service upon the expiration of the leave period as required by the FMLA. If the employee does not return to the active service of the city at or prior to the expiration of the leave of absence as above defined, his or her service will be considered terminated as of the date on which the leave of absence began.

Normal form of payment: A monthly income payable on the first day of each month. The first payment will be made on the first day of the month immediately following the participant's actual retirement date. The last payment will be the payment due next preceding the retired participant's death.

Any participant with a spouse shall receive retirement income in the form of a qualified joint and contingent annuity unless the participant and his spouse elect otherwise in writing. The amount of annuity payable to a participant under the qualified joint and contingent annuity shall be the actuarial equivalent of the normal form of payment payable under the provisions of the plan.

Any participant that is not married shall receive retirement income on a life only basis unless the participant elects otherwise in writing.

Normal retirement date: The first day of the month coincident with or next following both the attainment of age 65 and the completion of ten years of credited service.

Participant: Any employee who has met the requirements of section 54-147 hereof and any retired, disabled or terminated person who has rights to benefits under the provisions of the plan. An active participant shall be any participant who is currently employed by the city and making contributions to the plan.

Participant contribution accounts:

Mandatory contribution account means a separate account which will consist of mandatory participant contributions as required by section 54-148 plus credited interest.

Voluntary employee contribution account means a separate account which will consist of voluntary participant contributions as set forth in section 54-148 of the plan plus credited gains and losses.

Plan: The City of Port Orange General Employees' Retirement System (now named the City of Port Orange General Employees Defined Benefit Retirement Plan), effective April 1, 1979, as amended and restated effective October 1, 2003, as set forth in this document and as it may hereafter be amended from time to time.

Plan year: A plan year is the 12-month period beginning on October 1 and ending on the next September 30.

Qualified joint and contingent annuity: An annuity for the life of the participant with a survivor annuity for the life of the participant's surviving spouse which is 50 percent of the amount of the annuity payable during the joint lives of the participant and spouse. A qualified joint and contingent annuity shall be the actuarial equivalent of the normal form of payment payable under the provisions of the plan.

Retirement committee: The committee appointed by the city council from time to time to administer the plan pursuant to the provisions of section 54-169 hereof.

Service: The period of an employee's employment with the city from the employee's last date of employment to the date of his or her termination of service for any reason. Any absence from the active service of the city, including but not limited to absences by reason of discharge or resignation, which is not deemed a leave of absence will be considered a termination of service.

Single-sum value: The present value, as of a specified date, of a series of defined payments, where each payment is multiplied by the probability of survival to the time of that payment and then discounted back to the specified date at an assumed rate of interest. All computations shall be on the basis of the interest and mortality assumptions in effect on the specified date.

Superseded plan: The City of Port Orange General Employees' Retirement System, effective April 1, 1979 and subsequently amended and amended and restated effective October 1, 2003.

Supplement: Any supplement which is attached to and made a part of the plan and shall apply only to the eligible employees described therein.

Termination of service: The interruption of an employee's service because of any absence from the active service of the city, including, but not limited to, absences by reason of discharge or resignation, which is not deemed a leave of absence.

Total and permanent disability: A disability which is, in the opinion of the retirement committee, due to sickness or injury and which disability is likely to be continuous and permanent from a cause other than specified in section 54-152(c) hereof; and which permanently prevents the participant from rendering useful and efficient service as an officer or employee with the city.

Trustee: The individual trustee(s) and/or the corporate trustee(s), as the case may be, appointed from time to time pursuant to the provisions of the plan to administer the trust fund maintained for the purposes of the plan.

Trust fund: The trust fund established pursuant to the terms of the plan.

Vested percentage: The percentage determined in accordance with the following schedule:

Vesting service	Vested percentage
Less than 5 years	0%
5 years but less than 6	25%
6 years but less than 7	40%
7 years but less than 8	55%
8 years but less than 9	70%
9 years but less than 10	85%
10 years or more	100%

 

(b)

The terms "herein" and "hereunder" and similar terms refer to this plan, unless otherwise qualified by the context.

(c)

The pronouns "he", "him" and "his" used in the plan shall also refer to similar pronouns of the feminine gender unless otherwise qualified by the context.

(d)

The retirement committee shall provide each person receiving payment of a benefit hereunder with an officially approved notice supplied by the secretary of the treasury which specifies certain information regarding the income tax treatment of certain plan benefits.

(Ord. No. 2003-27, § 1, 7-15-03; Ord. No. 2007-6, § 1, 2-27-07; Ord. No. 2009-1, § 1, 2-17-09; Ord. No. 2011-37, § 1, 1-3-12)