A presentation to various City of Lakeland work groups

1. RETIREMENT SERVICES

2. EMPLOYEES’ PENSION PLAN
Salary means all regular pay, including salary, wages,
bonuses and overtime plus any special educational
allowances and proficiency payments. For the purposes of
determining the limits under Section 415 of the Code, for
Plan Years beginning after December 31, 2000, this
definition of "salary" shall include employee deferrals,
such as those under Section 132(f) of the Code, as
required under Section 415(c)(3)(D) of the Code.
 Does not define payout of accrued leave balances

3. EMPLOYEES’ PENSION PLAN
 Defines final payout of accrued balances
 Further defines how accrued sick leave is calculated for
pensionable earnings

4. EMPLOYEES’ PENSION PLAN
Chapter 2009-97, Florida Laws
 Complies with ss. 175.071(8), requiring the BOT to identify and report and
holdings it may have in any scrutinized company, and to sell, redeem, divest, or
withdraw all publicly traded securities it may have in that company beginning
January 1, 2010. Such divestiture must be completed by 9-30-2010 for Ch. 175
plans.
 Expands BOT ability to invest in foreign securities from 10% to 25% on a market
value basis matching the foreign investment parameters found in s 215.47(5) F.S.
 Allows pensioner to change joint pensioner or beneficiary up to 2 times.
 Complies with termination provisions by eliminating apportionment
requirement.
 Requires BOT determine date of distribution and the asset value required
to fund all nonforfeitable benefits, after taking into account the expenses
of the distribution.
 Requires the BOT to inform the municipality if additional assets are
required.

5. EMPLOYEES’ PENSION PLAN
Internal Revenue Code Compliance
 Section 1: Amends definition of salary to comply with current
practice (see next slide)
 Section 3: Amends definition of effective date of DROP (to
comply with current practice)
 Section 4: Amends definition of maximum pension
 Section 5: Provides prior service credit for non-vested
terminated members who have left contributions in the plan (to
comply with current practice)
 Section 6: Provides miscellaneous IRC & DOL provisions
 Section 7: Provides invalid provision or application
 Section 8: Provides effective date (board attorney suggests date
of passage)

6. EMPLOYEES’ PENSION PLAN
Salary means all regular pay, including salary, wages, overtime, proficiency payments,
longevity, final payout of accrued sick leave balances, and some special
educational allowances that are classified as pensionable per City Policy, and
includes any elective deferral (as defined in Code Section 402(g)(3) of the Internal
Revenue Code), and any amount which is contributed or deferred by the
employer at the election of the Member and which is not includible in the gross
income of the Member by reason of Section 125 or 457 of the Internal Revenue
Code. Pensionable earnings of the final payout of accrued leave balances
included in this calculation shall be limited to the amount that is payable as a
lump sum upon separation from service subject to limitations on the percentage
payable and the maximum lump sum payable in accordance with City Policy
which may include vacation, compensatory time, saved holiday, floating holiday
in addition to unused sick leave. Pensionable unused sick leave is based upon
the same period of time used to calculate average final compensation and
subject to certain reductions as specified by City Policy. For the purposes of
determining the limits under Section 415 of the Code, for Plan Years beginning
after December 31, 2000, this definition of "salary" shall include employee
deferrals, such as those under Section 132(f) of the Code, as required under
Section 415(c)(3)(D) of the Code.
 Further defines final payout of accrued leave balances to include
vacation, comp time, saved holiday, floating holiday in addition to
accrued sick leave.

7. EMPLOYEES’ PENSION PLAN
Cross-Credit Provision
 Allows a person to move between plans and
have total years of service as COL employee
count towards vesting.
Example: Begin @ city as dispatcher – 4 years
Employee Pension then move to Police
Pension for next 21 years.
 4 year EPP benefit + 21 year PPP benefit

8. POLICE OFFICERS’
RETIREMENT SYSTEM
Internal Revenue Code Compliance
 Section 62-51 Definitions: Actuarial equivalent pursuant to IRC; Credited
service to remove provision for unused sick leave
 Section 62-52 Membership: Provide Tier 1 members to elect to
participate in DROP
 Section 62-53 BOT: Term of office from 2 to 4 years (2009-97 LOF)
 Section 62-54 Fund Mgmt: Allows international allocation up to 25%
 Section 62-61 Forms of Benefit: Pensioner must provide proof of good
health of joint pensioner if changed
 Section 62-69 Plan Termination: If assets not enough to cover payment of
accrued benefits to all members, City must come up with difference (2009-
97 LOF)
 Section 62-70 Retiree Directed Payments: Allow retiree deductions for
payment of health insurance
 Section 62-78 Prior Police Service: Allow service purchase for federal,
other state, county and municipal service (2009-97 LOF)
Section 62-82 Survivor Benefit Fund: Provide all retirees benefit pursuant
to Ord. No. 4955