§ 13-5. Purpose; definitions.

It is the intent of the city that this Coral Springs Police Officers' Pension Plan at all times satisfy Internal Revenue Code "(IRC)" Section 401(a) by meeting the requirements of IRC Section 414(d).

As used herein, unless otherwise defined or required by the context, the following words and phrases shall have the meaning indicated:

(a)

Accrued benefit means the accrued benefit at any time shall be determined in the same manner as that for retirement at the normal retirement date except that continuous service and average monthly earnings and/or average monthly earnings plus shall be determined as of the date of termination or disability.

(b)

Accumulated contributions means a member's own contributions plus any interest credited thereto.

(c)

Actuarial equivalence or actuarially equivalent means that any benefit payable under the terms of this plan in a form other than the standard form of benefit for participants shall have the same actuarial present value on the date payment commences as such standard form of benefit. For the purposes of establishing the actuarially equivalent value of any form of payment, all future payments shall be determined by using seven (7) per cent interest as the discount factor and the unisex mortality table promulgated by the secretary of the treasury for purposes of calculating lump sum distributions pursuant to IRC Section 417(e)(3) as the mortality factor.

(d)

Amended plan effective date means July 3, 1979.

(e)

Average monthly earnings means one-twelfth ( 1/12 th) of the arithmetic average annual earnings for the highest consecutive four (4) years of the ten (10) full years immediately preceding the actual retirement or termination date of a member; provided that if a member shall have been employed for fewer than four (4) years such average shall be taken only over the period of his actual employment.

(f)

Average monthly earnings plus means one-twelfth ( 1/12 th) of the arithmetic average annual earnings for the highest consecutive three (3) of the ten (10) full years immediately preceding the actual retirement or termination date of a member; provided that if a member shall have been employed for fewer than three (3) years such average shall be taken only over the period of his actual employment.

(g)

Beneficiary means the person or persons entitled to receive benefits hereunder 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 at the time of death of the member, or if no person so designated is living at that time, or if no provision for an alternate or contingent beneficiaries is otherwise provided, or if no such alternate or contingent beneficiary is living at such time, the beneficiary shall be the member's estate.

(h)

Board means the board of trustees, which shall administer and manage the plan herein provided and serve as trustee of the fund.

(i)

City means City of Coral Springs, Florida.

(j)

City Commission means the City Commission of the City of Coral Springs, Florida.

(k)

Continuous service means the uninterrupted service (expressed as years and completed months), from the date a member last entered employment, until the date his employment shall be terminated by death, disability, retirement, resignation, or discharge; provided however, the continuous service of any member shall not be deemed to be interrupted by reason of:

(1)

Temporary layoff, not exceeding six (6) months;

(2)

Any authorized leave of absence with pay;

(3)

Any authorized leave of absence without pay but not exceeding six (6) months;

(4)

Military service in the U.S. Armed Forces provided such member is reemployed within three (3) months following termination of such service.

Except as otherwise required under subsection 13-17(f) of this Code, no credit for benefits or vesting shall be allowed for any period of time due to leave of absence or military service in excess of one (1) year. All members similarly situated in similar circumstances shall be treated alike pursuant to uniform, non-discriminatory rules and policies established by the board.

No credit shall be allotted for any period of time during which a police officer elects not to be a contributing member to the plan. However, those employees under the prior plan who joined the plan when first eligible to do so or who were hired prior to 1980 and joined the plan within one (1) year of becoming eligible shall receive credit from their date of employment. Provided, further, that any member may purchase credits for past service by paying the full cost thereof as determined by the board actuary.

Any officer may purchase up to two (2) years of pension credit after the completion of ten (10) yeas of continuous service. This purchase will only be available when an officer possesses an equal amount, up to two (2) years, of military or sworn law enforcement officer service for which the officer is not receiving or will not receive pension payments. The officer shall purchase these credits at the full cost to the plan as determined by the board actuary. Beginning on January 1, 2002, officers may use IRC Section 457 Deferred Compensation Plan retirement assets to purchase those pension credits. If an officer elects to use IRC Section 457 Deferred Compensation Plan assets to purchase pension credits, the purchase transfer must be made directly from the trustee of the IRC Section 457 Deferred Compensation Plan assets to the trustee of the plan. Once used to purchase pension credits, IRC Section 457 Deferred Compensation Plan retirement assets will be subject to the distribution rules set forth in this plan. The limits on nonqualified service credits do not apply to such IRC Section 457 Deferred Compensation Plan assets used to purchase pension credits.

Notwithstanding the above, any officer employed as of November 1, 2007 may purchase an additional one (1) year of pension credit. This credit shall be purchased by the officer at the full cost to the plan by February 29, 2008. However, in no event may purchased service credit exceed four (4) years.

(l)

Deferred retirement option plan means the optional program of accruing retirement income on a deferred basis while remaining in the active employ of the city. This shall also be known as the "DROP."

(m)

Earnings for an officer retiring or entering the DROP after September 30, 2012 and before December 16, 2015 means base salary only, excluding overtime, leave payouts at separation and off-duty details. For an officer retiring or entering the DROP after December 15, 2015, earnings means total cash remuneration excluding overtime, off-duty details, annual sick leave conversion payments, vacation payment incentives, and all end of career payouts (sick, vacation/annual, compensatory time). Total cash remuneration other than base salary shall be limited to seven and one-half (7½) per cent of base salary.

(n)

Earnings plus means all compensation excluding leave payouts at separation and off-duty details. For purposes of inclusion in earnings, overtime shall be limited to three hundred (300) hours per calendar year, or a prorated amount for a partial year. Effective November 16, 2006, compensation other than base salary shall be limited to fourteen and one-half (14½) per cent of base salary.

(o)

Eligible retired police officer means a member who has retired as an officer of the city (i) by reason of disability or (ii) on or after his or her normal retirement date and who is also a "public safety officer" as defined in IRC Section 402(l)(4)(C) and any applicable guidance thereunder.

(p)

F.O.P. means the Fraternal Order of Police, Lodge 87, a labor organization as defined in F.S. Ch. 447, which represents the city's police officers.

(q)

Fund means the trust fund established herein as part of the plan.

(r)

Initial effective dates means June 1, 1973.

(s)

Member means a police officer who fulfills the prescribed participation requirements.

(t)

Officer means any person who is employed by the city on a full time basis and who is classified by the city as a certified police officer and is covered by the F.O.P. I or II collective bargaining agreements.

(u)

Ordinance means this written instrument setting forth the provisions of the retirement system.

(v)

Plan means the City of Coral Springs Retirement Plan as contained herein and all amendments thereto.

(w)

Plan year means the period from October 1 through September 30.

(x)

Police officer means any officer or supervisory officer as those terms are defined herein.

(y)

Qualified health insurance premiums shall mean premiums for coverage for the eligible retired police officer (and his or her spouse and dependents, if applicable) under accident and health insurance (including an accident or health plan within the meaning of IRC Section 105(e)) or a qualified long-term care insurance contract as defined in IRC Section 7702B(b).

(z)

Qualified health insurance premium distribution shall mean an amount deducted from an eligible retired police officer's benefit payment under the plan and paid directly to the insurer, employer, agency or firm that is providing the coverage for which qualified health insurance premiums are paid. Such amount may not exceed the amount of the qualified health insurance premiums.

(aa)

Qualified military service means any service in the uniformed service (as defined in Chapter 43 of Title 38, United States Code) by any individual if such individual is entitled to reemployment rights under such chapter with respect to such service (IRC Section 414(u)(5)).

(bb)

Spouse shall mean the lawful spouse of a member.

(cc)

Supervisory officer means any person who is employed by the city on a full time basis and who is classified by the city as: a certified police sergeant, lieutenant, commander, assistant chief, chief or other supervisory certified police officer.

(dd)

USERRA means Uniformed Services Employment and Reemployment Rights Act (P.L. 103-353).

(Ord. No. 94-153, § 1, 12-6-94; Ord. No. 98-117, § 2, 7-21-98; Ord. No. 99-119, § 2, 7-20-99; Ord. No. 2001-114, § 2, 7-17-01; Ord. No. 2001-131, § 2, 12-3-01; Ord. No. 2004-118, § 3, 8-17-04; Ord. No. 2007-124, § 2, 12-11-07; Ord. No. 2008-113, § 2, 9-16-08; Ord. No. 2012-112, § 2, 9-18-12; Ord. No. 2015-125, § 2, 12-16-15; Ord. No. 2017-104, § 2, 5-17-17)