Chapter 120 - GENERAL EMPLOYEES AND CORRECTIONS OFFICER PENSION PLANS AND ALL EMPLOYEES DEFINED CONTRIBUTION RETIREMENT PLANS

Sec. 119.110. - JEA and the Water and Sewer Expansion Authority authorization. Chapter 121 - POLICE AND FIREFIGHTERS PENSION PLAN Chapter 120 - GENERAL EMPLOYEES AND CORRECTIONS OFFICER PENSION PLANS AND ALL EMPLOYEES DEFINED CONTRIBUTION RETIREMENT PLANS[1]

Footnotes: --- (1) ---

Editor's note— Ord. 2005-432-E, §§ 1, 2, amended the Code by repealing former Ch. 120, §§ 120.101—120.115, 120.201—120.211, 120.301, 120.302, 120.401—120.405, and adding a new Ch. 120, which was subsequently renamed by Ord. 2007-1136-E and Ord. 2017-258-E. Former Ch. 120 pertained to pensions and retirement, and derived from the following:

EXPAND Ord. No. Ord. No. Ord. No. Ord. No. 68-38-26 83-21-27 91-110-580 96-745-406 69-298-462 83-438-237 91-990-398 97-342-E 70-650-526 83-591-400 91-1099-579 97-441-E 71-397-181 84-189-107 92-1650-1393 97-971-E 71-863-477 84-716-356 92-1651-1459 98-229-E 72-50-3 85-880-695 93-99-41 98-992-E 72-577-276 85-904-537 93-303-183 2000-624-E 73-90-24 86-706-401 93-444-241 2000-787-E 74-56-131 86-1136-591 93-1474-1071 2000-1224-E 74-669-297 86-1216-688 93-1773-1045 2000-1225-E 74-725-435 86-1305-736 93-1994-1193 2001-700-E 74-1377-657 87-698-358 94-500-287 2001-838-E 75-668-377 87-927-611 94-622-588 2002-860-E 75-1158-508 87-1136-645 94-1172-662 2002-971-E 76-956-533 87-1207-595 94-1200-678 2002-1023-E 76-1017-561 88-144-298 95-106-55 2002-1213-E 76-1018-562 88-509-221 95-411-420 2003-573-E 81-717-347 88-588-311 95-488-771 2003-618-E 82-402-400 88-590-313 95-1129-684 2004-610-E 82-405-379 89-877-471 96-110-674 82-406-380 90-543-292 96-111-82

Charter reference— Retirement and pension benefits, art. 16.

State Law reference— Retirement or pension rights unaffected by consolidation or merger of governmental agencies, F.S. § 112.0515; The 1969 Florida Supplemental Retirement Act, F.S. § 112.361; Florida Protection of Public Employee Retirement Benefits Act, F.S. § 112.60 et seq.; State and County officers and employees' retirement system, F.S. Ch. 122; social security for public employees, F.S. Ch. 650.

State rule references—Local retirement systems, F.A.C. Ch. 60T-1; social security coverage for public employees, F.A.C. Ch. 60X-1; social security payments on account of sickness, F.A.C. Ch. 60X-2.

PART I. - PROVISIONS APPLICABLE TO THE SYSTEM AS A WHOLE

Sec. 120.101. - Retirement system established; name; operative date; minimum benefits.

(a)

A Retirement System is hereby established and placed under the exclusive administration and management of a Board of Trustees for the purpose of providing retirement benefits pursuant to the provisions of this Chapter and for defraying the reasonable expenses of the Retirement System.

(b)

The Retirement System established by this Chapter shall be known as the City of Jacksonville Retirement System. The System shall consist of two separate plans, administered by a common Board of Trustees. The plans shall be known as the City of Jacksonville General Employees Retirement Plan and the City of Jacksonville Corrections Officers Retirement Plan.

(c)

This System shall be the successor to all rights, privileges and obligations of the repealed ordinances and there shall be no gap between this System and the prior plan.

(Ord. 2005-432-E, § 2)

Sec. 120.102. - Administration of the retirement system.

(a)

The sole and exclusive administration of and the responsibility for the proper, effective operation of the Retirement System and for implementing the provisions of this Chapter is vested in a Board of Trustees. The powers and duties of the Board shall be set forth in this Section.

(b)

The Board of Trustees shall consist of nine persons who shall be selected as follows:

(1)

The Mayor's Chief Administrative Officer or designee.

(2)

The City's Chief Financial Officer or designee.

(3)

The City's Chief Human Resources Officer, by whatever title known.

(4)

Chairperson of the General Employees' Pension Advisory Committee.

(5)

A General Employees' Pension Plan retiree elected by the General Employees' Retired Employees' Association.

(6)

Chairperson of the Corrections Officers' Advisory Committee.

(7)

The Vice-Chairperson of the Corrections Officers' Advisory Committee until October 1, 2012; effective October 1, 2012 and continuing until October 1, 2014, a Corrections Officers' Plan retiree chosen by the Corrections Officers' Advisory Committee; and effective on and after October 1, 2014, a retired Corrections Officer elected by the Corrections Officers' Retired Employees' Association.

(8)

Two citizens shall be appointed by the City Council. Each citizen shall have professional experience in at least one of the following disciplines: finance, investments, economics, pension management, pension administration and/or accounting.

(c)

Each citizen Trustee shall serve a term of three years and the General Employees' Plan retiree Trustee shall serve a term of two years. Effective October 1, 2012, the Corrections Officers' Plan retiree Trustee shall serve a term of two years. If a vacancy shall occur prior to the expiration of a Trustee member's term, a replacement member shall be chosen in the same manner as the person who has left office. A citizen Trustee or retiree Trustee who misses three consecutive meetings without an excuse satisfactory to the Board shall be deemed to have resigned as a Trustee and the position shall be declared vacant. A replacement Trustee shall serve a full term measured from the date of replacement. All Trustees shall serve until their replacements are selected.

(d)

There shall be a General Employees' Plan Advisory Committee consisting of seven persons of whom shall be elected by the active, contributing general employee members as follows: (i) two of whom are employees of JEA; (ii) four of whom shall be employees of the City of Jacksonville, the Jacksonville Housing Authority, Clerk of Courts State Funded Employees and the Transportation Planning Organization (herein "City Employees"), with each of these employees casting three votes; and (iii) one retired member of the Plan who shall be elected by the Retired Employees' Association.

There shall be one ballot cast by each active, contributing general employee for the General Employees' Plan Advisory Committee, with each active, contributing general employee casting up to six (6) votes per ballot for the individuals of their choice. The top two individuals with the highest votes from the JEA employee candidates shall be elected as the JEA members of the General Employees' Plan Advisory Committee and the top four individuals with the highest votes from the City Employees candidates shall be elected as the City Employees members of the General Employees' Plan Advisory Committee.

The powers and duties of the Advisory Committee shall be set forth in this Section. An Advisory Committee Member who misses three consecutive meetings without an excuse satisfactory to the Committee shall be deemed to have resigned as a Member and the position shall be declared vacant.

Vacancies in the General Employees' Plan Advisory Committee shall be filled in the following manner. If a seat filled by a JEA employee is vacated more than 30 days prior to a scheduled election, the JEA employee candidate with the next highest votes from the most recent election shall fill the vacancy for the remainder of the term. If a seat filled by a City Employee is vacated prior to a scheduled election, the City Employee candidate with the next highest votes from the most recent election shall fill the vacancy for the remainder of the term. In either case, if the next highest candidate has already been added to the General Employees' Plan Advisory Committee through a prior vacancy or is not willing or able to serve on the General Employees' Plan Advisory Committee, the vacancy will be filled by continuing down the list of the next highest votes from the most recent election.

(e)

There shall be a Corrections Officers' Plan Advisory Committee elected by the active, contributing Corrections Officer members of the Plan consisting of five persons who shall be active contributing Corrections Officer members of the Plan. The powers and duties of the Corrections Officers' Advisory Committee shall be identical to those of the General Employees' Advisory Committee as they relate solely to Corrections Officer members of the Plan. An Advisory Committee Member who misses three consecutive meetings without an excuse satisfactory to the Committee shall be deemed to have resigned as a Member and the position shall be declared vacant.

(f)

The Board of Trustees shall prescribe a uniform procedure for the election of the Advisory Committees.

(g)

All Trustees and Advisory Committee members shall serve without compensation, but they shall be reimbursed from the Fund for all necessary expenses authorized by the Board, including, but not limited to, reimbursement for leave time used for educational conferences approved by the Board. The Board shall be permitted to prescribe uniform rules for reimbursement for travel expenditures by Board members and Advisory Committee members, consistent with City travel policy.

(h)

The Board of Trustees shall annually select a chairperson, vice-chairperson and secretary. The chairperson shall be selected from one of the two citizen Trustees. The chair, vice chair and secretary shall each have individual authority to execute all documents on behalf of the Board.

(i)

The General Employees' Plan Advisory Committee shall annually select a chairperson and a vice chairperson who shall execute all documents on behalf of the Advisory Committee. The Corrections Officers' Advisory Committee shall annually select a chairperson, vice-chairperson and secretary and each shall have authority to execute all documents on behalf of the Advisory Committee.

(j)

A majority of the members of the Board shall constitute a quorum for the transaction of business and shall have full power to act under the terms of the Plan. Five concurring votes shall be required of the Board to take action.

(k)

A majority of the members of the General Employees' Plan Advisory Committee shall constitute a quorum for the transaction of business and shall have full power to act under the terms of the Plan. Four concurring votes shall be required of the Committee to take action. A majority of the members of the Corrections Officers' Advisory Committee shall constitute a quorum for the transaction of business and shall have the full power to act under the terms of the Plan on matters relating solely to Corrections Officers. Three concurring votes shall be required for the Committee to take action.

(l)

The Board shall keep minutes of all meetings and a record of any action taken by the Board shall be kept in written form and maintained by the Board.

(m)

The Advisory Committees shall keep minutes of all meetings and a record of any action taken shall be kept in written form and maintained by the Advisory Committees.

(n)

The Board of Trustees shall have the authority to make such uniform rules and regulations and to take such action as may be necessary to carry out the provisions of the Plan and all decisions of the Board of Trustees, made in good faith, shall be final, binding and conclusive on all parties.

(o)

The Board of Trustees shall be deemed the named fiduciary of the Plan and shall discharge its responsibilities solely in the interest of the members and beneficiaries of the Plan for the exclusive purpose of providing benefits to the members and their beneficiaries and to defray the reasonable expenses of the Plan. The Trustees shall exercise those fiduciary responsibilities with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a similar character and with similar aims. This Section shall not relieve any other person of fiduciary responsibility who has otherwise been made a fiduciary pursuant to F.S. § 112.656 or by contract.

(p)

The Board of Trustees shall have the following administrative duties:

(1)

To maintain such records as are necessary for calculating and distributing retirement benefits.

(2)

To maintain such records as are necessary for financial accounting and reporting of funds of the respective Plans comprising the System;

(3)

To maintain such records as are necessary for actuarial evaluation of the Retirement Plans comprising the System, including investigations into the mortality, service and compensation experience of its members and beneficiaries;

(4)

To compile such other administrative or investment information as is necessary for the management of the Retirement System;

(5)

To process, certify and/or respond to all correspondence, bills and statements received by the Retirement System, as well as all applications submitted to the Board for retirement benefits;

(6)

To establish and maintain communication with City departments and other agencies of government as is necessary for the management of the Retirement System, including preparing, filing and distributing such reports and information as are required by law to be prepared, filed or distributed on behalf of the Retirement Plans comprising the System;

(7)

To determine all questions relating to all applications for eligibility, participation and benefits;

(8)

To distribute at regular intervals to employees, a comprehensive Summary Plan Description and periodic reports regarding the financial and actuarial status of the Plans comprising the System;

(9)

To retain and compensate such professional and technical experience as is necessary to fulfill its fiduciary responsibilities;

(10)

To make recommendations to the City Council regarding changes in the provisions of any Plan within the System;

(11)

To assure the prompt deposit of all member contributions, City contributions, and investment earnings;

(12)

To establish a uniform set of rules and regulations for the management of the Trust;

(13)

To take such other action as the Trustees shall deem, in their sole and exclusive discretion, as being necessary for the efficient management of the System.

(q)

The Board shall have the authority to retain its own legal counsel, accountants, actuaries and other professional advisors to assist the Board in the performance of its duties. The Board may act without independent investigation upon the professional advice of the advisors so retained.

(r)

The Board is authorized to prosecute or defend actions, claims or proceedings of any nature or kind for the protection of the Fund assets or for the protection of the Board in the performance of its duties.

(s)

The Advisory Committees shall have the following administrative duties with regard to their respective memberships:

(1)

Review and recommend action to the Board on all applications for membership and benefits;

(2)

Conduct inquiry into disability applications and recommend final action to the Board;

(3)

Recommend to the Board amendments to the System documents;

(4)

No benefit or allowance shall be paid from the Plan without first being reviewed by the Advisory Committee.

(5)

Such other duties as may be prescribed by the City Charter or Ordinance Code.

(t)

Neither the Board nor any of its individual members nor the Advisory Committees and any of their individual members shall have any personal liability for any action taken in good faith. The Trustees and Advisory Committee members individually and the Board and the Advisory Committee as a whole shall be entitled to the protections in F.S. § 768.28. The Trustees shall also be authorized to purchase from the assets of the Fund, errors and omission insurance to protect the Trustees and the Advisory Committee members in the performance of their duties. Such insurance shall not provide protection against a Trustee's or Advisory Committee member's fraud, intentional misrepresentation, willful misconduct or gross negligence.

(u)

No Trustee or Advisory Committee member shall be responsible, at his or her own expense, to take legal action to correct the misconduct of any other member of the Board of Trustees or of the Advisory Committees. A Trustee or Advisory Committee member shall have an affirmative obligation, however, to publicly reveal any misfeasance, malfeasance or nonfeasance by a co-Trustee or co-Advisory Committee member, and upon making such revelation in a public meeting, shall be relieved of further individual responsibility of the actions of that co-Trustee or co-Advisory Committee member.

(v)

No proposed legislation affecting any Plan in the System shall be adopted prior to its presentation to the appropriate Pension Advisory Committee and the Board of Trustees for its comment. The City Council shall consider those comments but shall not be bound by them. No legislation shall be adopted on final reading before an actuarial impact statement is filed with the State Division of Retirement as provided by State law.

(Ord. 2005-432-E, § 2; Ord. 2008-369-E, § 1; Ord. 2014-375-E, § 1)

Sec. 120.103. - System management and investments.

(a)

The System is hereby established, pursuant to authority granted in the City Charter, as an irrevocable trust fund into which shall be deposited all of the assets of the System of every kind and description.

(b)

The actual custody and supervision of the System shall be vested in the Board. All assets of the Plans within the System may be commingled, provided that accurate records are maintained at all times reflecting the financial composition of the Fund, including accurate accounts regarding the following:

(1)

Current amounts of accumulated contributions of members, both on an individual and aggregate basis;

(2)

Receipts and disbursements;

(3)

Benefits payments;

(4)

All contributions from the City;

(5)

All interest, dividends, gains and losses from investment;

(6)

Such other entries as may be required for a clear, complete financial report of the status of the Fund.

(c)

The Board shall establish a written investment policy, with the advice and counsel of such advisors as the Board deems necessary, and said investment policy shall set forth the types of securities and other types of investments into which shall be placed the assets of the System. The policy shall further set forth appropriate limitations on those investments, including, but not limited to, anticipated rate of return, quality of investment, class of investment and acceptable risk. The Board shall have the authority to invest and reinvest the assets of the System in such securities or property, real or personal, as the Board deems appropriate, provided the investment is consistent with the investment policy adopted by the Board of Trustees in accordance with F.S. § 112.661. The Board shall give notice to the City Council Finance Committee Chairperson of any proposed change in the investment policy not less than 60 days prior to the final meeting for adoption of such change.

(d)

The Board may determine the percentage of each type of investment to be held.

(e)

The Board shall be authorized to retain one or more money managers for the management of property held in the System, and the Board shall convey property of the System to such money managers for investment and reinvestment in accordance with the terms of this Chapter and the investment policies established by the Board. Any such money manager contracting with the Board for the investment of its assets shall be deemed a fiduciary of the System.

(f)

The Board shall have a continuing duty to observe and evaluate the performance of any money manager retained by the Board. The Board shall, in selecting a money manager or other investment counsel, exercise all judgment and care in the circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the management of their own affairs.

(g)

The Board shall require that any money manager or other agent who has custody or control of any property of the System to keep accurate and detailed accounts of all investments, receipts, disbursements and other transactions pertaining to such Trust property, and the Board shall further require that all accounts, books and records pertaining thereto be open to inspection and audit at all reasonable times by the City, the Board or their designees.

(h)

The Board shall also keep accurate and detailed accounts of all investments, receipts, disbursements or other transactions pertaining to the Trust property and all accounts, books and records pertaining thereto shall be open to inspection and audit at all reasonable times by the City or its designees.

(Ord. 2005-432-E, § 2)

Sec. 120.104. - Compliance with the Internal Revenue Code.

(a)

It is the intention of the City and of the Board that the System remain at all times a qualified plan, as that term is defined under the Internal Revenue Code.

(b)

No member's annual benefit shall exceed the amounts permitted in Section 415 of the Internal Revenue Code.

(c)

Unless the member is still employed with the City, a member's retirement benefit may not be delayed beyond the later of April 1 following the calendar year in which the member attains age 70½, or such later date as may be set by terms of the Internal Revenue Code, or April 1 of the year following the calendar year in which the member retires.

When a distribution of the participant's entire interest is not made in a lump sum, the distribution will be made in one or more of the following ways: over the life of the participant; over the life of the participant and designated beneficiary; over a period certain not extending beyond the life expectancy of the participant; or over a period certain not extending beyond the joint life and last survivor expectancy of the participant and a designated beneficiary.

(d)

If the distribution has commenced before the participant's death, the remaining interest will be distributed at least as rapidly as under the method of distribution being used as of the date of the participant's death.

The method of distribution, if the participant dies before distribution is commenced, must satisfy the following requirements:

(1)

Any remaining portion of the participant's interest that is not payable to a beneficiary designated by the participant will be distributed within five years after the participant's death;

(2)

Any portion of the participant's interest that is payable to a beneficiary designated by the participant will be distributed either: (i) within five years after the participant's death; or (ii) over the life of the beneficiary, or over a period certain not extending beyond the life expectancy of the beneficiary, commencing not later than the end of the calendar year following the calendar year in which the participant died (or, if a designated beneficiary is the participant's surviving spouse, commencing not later than the end of the calendar year following the calendar year in which the participant would have attained age 70½).

(e)

Direct transfers of eligible distributions shall be made as follows:

(1)

General. Notwithstanding any provision of the System to the contrary that would otherwise limit a distributee's election under this subsection, a distributee may elect, at the time and in the manner prescribed by the Board, to have any portion of an eligible rollover distribution made directly to an eligible retirement plan specified by the distributee in a direct rollover.

(2)

Definitions.

(i)

Eligible Rollover Distribution. An Eligible Rollover Distribution is any distribution of all or any portion of the balance to the credit of a distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of a substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Internal Revenue Code; and the portion of any distribution that is not includable in gross income.

(ii)

Eligible Retirement Plan. An Eligible Retirement Plan is an individual retirement account described in Section 408(a) of the Internal Revenue Code, an Individual Retirement Annuity described in Section 408(b) of the Internal Revenue Code, an Annuity Plan described in Section 403(a) of the Internal Revenue Code, a plan described in Section 457 of the Internal Revenue Code, or a Qualified Trust described in Section 401(a) of the Internal Revenue Code that accepts a distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to a surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity.

(iii)

Distributee. A Distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse is a distributee with regard to the interest of the spouse.

(iv)

Direct Rollover. A Direct Rollover is a payment by the Plan to the eligible retirement plan specified by the distributee.

(f)

In the case of combined benefits from defined benefit and defined contribution plans sponsored by the City, the maximum benefit shall not exceed that permitted by Section 415 of the Internal Revenue Code.

(g)

Any benefits in excess of those permitted under Section 415 of the Code shall be paid through an excess benefit arrangement in a form approved by the Code.

(Ord. 2005-432-E, § 2)

Sec. 120.105. - Reserved.

Editor's note— Ord. No. 2007-1136-E, § 1, amended the Code by repealing former § 120.105 in its entirety. Former § 120.105 pertained to pensioner's rights upon reemployment by the City, and derived from Ord. 2005-373-E, § 1.

PART II. - THE GENERAL EMPLOYEES RETIREMENT PLAN

Sec. 120.201. - Definitions.

The following words and phrases as used in this Part shall have the following meaning:

(a)

Accumulated Contributions shall mean the sum of all amounts deducted from a member's compensation and/or picked up on behalf of a member.

(b)

Active Membership shall mean membership in the Retirement System as an employee.

(c)

Actuarial Equivalent shall mean that any benefit payable under the terms of this system other than the normal form of benefit shall have the same actuarial present value on the date the payment commences as the normal form of benefit. For purposes of establishing the actuarial present value of any form of benefit, other than a lump sum distribution, all future payments shall be discounted for interest and mortality using the RF-2000 mortality table with an interest rate of 8.4 percent. In the case of a lump sum distribution, the actuarial present value shall be determined on the basis of the same mortality rates as set forth in this Section.

(d)

And shall have a conjunctive meaning.

(e)

Beneficiary/Retiree shall mean any person receiving a retirement allowance and/or other benefit from the Retirement System.

(f)

Benefit shall mean a retirement allowance and/or other payment provided by the Retirement System.

(g)

Board or Board of Trustees shall mean the Board of Trustees of the Retirement System.

(h)

City shall mean the City of Jacksonville Florida, JEA, the Jacksonville Housing Authority, the Jacksonville Police and Fire Pension Board of Trustees, and those City agencies with employees who are active members of the Retirement Plan.

(i)

Credited Service shall mean membership credit upon which a member's eligibility to receive benefits under the retirement plan is based, or upon which the amount of such benefits is to be determined; provided that employees of JEA actively employed on the effective date of a Recapitalization Event shall be granted credited service pursuant to Section 120.209(b)(1) and (2).

(j)

Disability shall mean the permanent and total incapacity to perform regular and continuous duties as an employee or officer for the City. The term regular and continuous as used in this definition shall not require that an employee or officer be able to perform all of the duties set forth in the job description, but shall mean the ability to perform work within the employee or officer's classification for which a position has been made available by the City, consistent with the physical or mental health of the member.

(k)

Early Service Retirement shall mean a member's withdrawal from service under circumstances permitting the payment of a retirement benefit before such member is eligible for normal service retirement.

(l)

Earnable Compensation shall mean a member's base pay for regular hours worked as an employee, plus service raises and excluding bonuses, adjusted compensation, overtime or any extra compensation over and above regularly budgeted salaries. Earnable compensation shall not include payouts of accumulated leave taken as cash upon separation from service. Retroactive payments shall be credited to the calendar year in which such payments would have been received had they been timely paid. Compensation for any plan year shall not include any amounts in excess of the Internal Revenue Code Section 401(a)(17) limitation as adjusted for change in the cost of living in the manner prescribed by the IRC, Section 401(a)(17)(B).

(m)

Employee shall mean a person currently employed by the City and for whom contributions are being made to the Plan. The term "employee" shall include general employees, all other eligible employees of the City, JEA, the Jacksonville Housing Authority and the Jacksonville Police and Fire Pension Board of Trustees, and employees of outside agencies covered by this Plan.

(n)

Final Monthly Compensation shall mean a member's average monthly rate of earnable compensation from the City during the highest 36 consecutive months (78 pay periods) out of the last ten years of employment.

(o)

Advisory Committee for General Employees shall mean the committee charged with the review of applications for benefits under the Plan, except those matters relating solely to corrections officers.

(p)

Fund or System shall mean the City of Jacksonville Retirement System.

(q)

May shall mean a permissive term.

(r)

Member shall mean an employee, as defined by subsection (m) above, actively employed by the City for whom contributions to the Retirement Plan are made as required by this Chapter and shall be consistent with the provisions of Section 120.202(a).

(s)

Pension shall mean a series of periodic payments payable in bi-weekly installments.

(t)

Pick-Up Amounts shall mean employer contributions derived from a member's earnable compensation through a reduction in the member's earnable compensation.

(u)

Plan Year shall mean the period from and including October 1 through September 30 of the following year.

(v)

Retirement shall mean a member's withdrawal from active membership with a benefit granted to the member pursuant to the provisions of this Chapter.

(w)

Retirement Allowance shall mean a pension provided by the Retirement Plan.

(x)

Retirement Plan shall mean the City of Jacksonville General Employees' Retirement Plan.

(y)

Service shall mean active service as an employee.

(z)

Summary Plan Description shall mean a document created by the Board containing a brief description of the benefits offered by the Plan. In the case of a conflict between this Chapter, Florida Statutes, and the summary plan description, the terms of this Chapter shall prevail.

(aa)

Time Service Retirement shall mean a member's retirement from active service under circumstances permitting payment of a retirement allowance without reduction because of age or length of service and without special qualifications such as disability. Time service retirement shall be considered normal retirement.

(bb)

Trustee shall mean a member of the Board of Trustees of the Retirement System.

(cc)

Vested Benefit shall mean an immediate or deferred benefit to which a member has gained a nonforfeitable right under the provisions of this Chapter.

(dd)

Minimum Vesting shall mean five years of credited service before the member is entitled to retirement benefits except for service-incurred disability retirement income or service incurred death benefits. Employees of JEA actively employed on the effective date of a Recapitalization Event shall be deemed to have reached Minimum Vesting without regard to the number of years of Credited Service.

(ee)

General Employee shall mean an employee of the City, other than a corrections officer, for whom contributions are made to this Plan.

(ff)

JEA shall mean the former Jacksonville Electric Authority and its employees who shall be considered employees under the terms of this Plan. The term JEA shall also be construed to mean former employees of the St. Johns River Power Park (SJRPP).

(gg)

Vested Separated Member shall mean a person who has earned a vested benefit and has separated from the City but has not commenced receipt of benefits.

(hh)

Recapitalization Event shall mean the closing and funding of a transaction or a series of related transactions in accordance with Article 21 of the Charter of the City of Jacksonville and any other applicable law that results in either (i) unencumbered cash proceeds to the City of Jacksonville of at least $3,000,000,000 or (ii) at least 50 percent of the net depreciated property, plant and equipment value of either JEA's electric system or JEA's water and wastewater system being transferred, assigned, sold or otherwise disposed of. The effective date of a Recapitalization Event shall be the date of closing of a transaction that results in either of the above two contingencies occurring, or in the case of a series of related transactions, the date of a closing of a transaction that, when combined with other prior transactions in the series, results in either of the above two contingencies.

(Ord. 2005-432-E, § 2; Ord. 2015-422-E, § 1; Ord. 2017-258-E, § 1; Ord. 2019-566-E, § 1)

Sec. 120.202. - Membership.

(a)

Consistent with the provisions of Chapter 16 of the City Charter, full-time civil service employees not eligible for membership in another City-sponsored pension plan shall become members of the Plan if hired before October 1, 2017. Any full-time civil service employee hired on or after October 1, 2017, shall not be eligible for membership in the Plan but shall be a member of the defined contribution plan as provided for in Part V, Subpart A.

(1)

Employees who previously met the requirements of Members, who leave employment with the City of Jacksonville but do not remove their contributions from the Retirement Plan, upon being rehired, may re-enroll in the Retirement Plan and be considered Members as defined herein.

(2)

Employees who previously met the requirements of Members, who leave employment with the City of Jacksonville and remove their contributions from the Retirement Plan, upon being rehired, shall not be entitled to re-enroll in the Retirement Plan and shall not be considered Members as defined herein.

(3)

Employees hired on or after October 1, 2017, shall never be eligible to be Members of the Retirement Plan. Employees hired on or after October 1, 2017, shall be members of the General Employees Defined Contribution plan provided for in Part V, Subpart A. This prohibition shall apply to employees of JEA regardless of method of accrual or computation of years of Credited Service.

(4)

JEA employees who received additional Credited Service pursuant to Section 120.209(b) may be reemployed by the City of Jacksonville, and if otherwise eligible, re-enroll in the Retirement Plan. However, the employee will not receive additional credited service or be required to make employee contributions until their actual period of employment by the City following re-enrollment in the Plan exceeds the period of Credited Service granted to them pursuant to Section 120.209(b).

(b)

Appointed and elected officials and permanent employees not in the civil service system may opt to become members of the Plan, consistent with Section 16.04 of the City Charter. Elected officials eligible to receive benefits under this System or any prior Plan shall be permitted to continue to receive those benefits.

(c)

All persons hired on or after the beginning of the first full pay period after October 1, 2009, and before October 1, 2017, must elect between the General Employees Retirement Plan (DB plan) and the GEDC plan following New Employee Orientation (NEO). Failure to make a timely election shall be deemed an election to enroll in the DB plan. Any general employee hired on or after October 1, 2017 shall be a member of the GEDC.

(d)

If a new employee chooses the GEDC plan, the employee may elect to revert to the DB plan not later than the employee's fifth anniversary of employment, following certification that the employee has completed the intensive training program sponsored by the City. In addition, the employee shall have a one-time option after the employee's fifth anniversary of employment and prior to retirement to convert back to the DC plan. For purposes of this Section as it applies to JEA employees only, the fifth anniversary shall be based on the actual period of JEA employment and not years of Credited Service pursuant to Section 120.206(a) or Section 120.209(b).

(e)

If a new employee initially chooses the DB plan, and then elects to transfer to the GEDC plan within the first five years of employment, then the employee will have the remaining portion of the initial five-year period of employment to elect to transfer to the DB plan. This initial five-year window will be open to a new employee regardless of his or her initial choice of Plan, but the number of changes from one Plan to the other will be limited to three during such five-year period. All employees seeking to revert from the DB plan to the DC plan must be certified to have completed the intensive training program sponsored by the City. A new employee who elects the DB plan will have an additional option after the first five years of employment to convert to the DC plan at any time prior to retirement from the City. A new employee who elects the GEDC plan will not have any option after the end of the first five years of employment to convert to the DB plan. For purposes of this Section as it applies to JEA employees, the fifth anniversary or first five years of employment or five-year window shall be based on the actual period of JEA employment and not years of Credited Service pursuant to Section 120.206(a).

(f)

JEA employees hired before October 1, 2017 who are members of the General Employees Defined Contribution Plan and who are actively employed on the effective date of a Recapitalization Event shall be permitted to transfer to the DB Plan. Such JEA employees who transfer to the DB Plan will receive Credited Service under the DB Plan for the actual period of their JEA employment prior to the transfer, as well as Credited Service granted pursuant to Section 120.209(b)(1) or (2). JEA employees hired before October 1, 2017 and who are actively employed on the effective date of a Recapitalization Event but who are not yet vested shall be subject to the provisions of Section 120.209(b)(1).

(Ord. 2005-432-E, § 2; Ord. 2007-1136-E, § 1; Ord. 2013-167-E, § 1; Ord. 2015-311-E, § 2; Ord. 2017-258-E, § 1; Ord. 2019-566-E, § 1)

Sec. 120.203. - Contributions; refunds of contributions.

(a)

The City shall pick-up, rather than deduct from each member's pay, beginning with the date of membership, eight percent of the member's earnable compensation, prior to October 1, 2017. On and after October 1, 2017 the City shall pick-up, rather than deduct from each member's pay, beginning with the date of membership, ten percent of the member's earnable compensation. The monies so picked-up shall be deposited in the Plan immediately after each pay period. An account record shall be maintained continuously for each member. Pick-up contributions shall continue until death, disability or termination of service, whichever shall occur first. Contributions shall remain in the Plan unless withdrawn as provided in the Plan. No member shall have the option to choose to receive the contributed amounts directly instead of having them paid by the City directly to the System. All such pick-up contributions by the City shall be deemed and be considered as part of the member's accumulated contributions and subject to all provisions of the Plan pertaining to accumulated contributions of members. The intent of this provision is to comply with Section 414(h)(2) of the Internal Revenue Code. For the purpose of accruing and calculating pension benefits, and for all other purposes of calculating wage-related benefits and calculations, the amounts picked-up under this Section shall be considered part of the earnable compensation of a member.

(b)

All benefits payable under this Plan are in lieu of a refund of accumulated contributions.

(c)

In order to assure the City's statutory and constitutional guarantee of the actuarial soundness of the Plan, the City shall make such contribution which together with contributions picked-up on behalf of members and the Plan's earnings, will maintain the Plan on a sound actuarial basis, as determined by the Board in conjunction with its actuary. The City's contributions may be made in a lump sum at the commencement of the fiscal year or in equal bi-weekly installments or in equal quarterly installments.

(1)

In any year, beginning with Fiscal Year 2017-18, that the Plan's liquidity ratio, meaning the market value of assets divided by the annual benefit payments, falls below five, the City shall, subject to annual appropriation, make a contribution or payment in an amount sufficient to restore the Plan's liquidity ratio to at least five, as determined by the plan actuary.

(2)

Beginning with Fiscal Year 2017-18, regardless of the amount of revenue received from the Pension Liability Surtax and the applicable Actuarially Determined Employer Contribution, the City shall hereinafter, subject to annual appropriation, make an annual contribution from a source other than the Pension Liability Surtax proceeds (provided for in Chapter 776) in a minimum amount of 60 million dollars, less any amount paid under subsection (1) above.

(3)

The provisions of subsections (1) and (2) shall remain in effect until the Plan is 100 percent funded.

(d)

Expenses, charges and fees attributable to the management of the Plan shall be paid from the Plan.

(e)

The City shall have no right, title or interest in the Plan or in any part thereof, and no contribution made thereto shall revert to the City, except such part of the Plan, if any, which remains therein after the satisfaction of all liabilities to persons entitled to benefits under the Plan.

(f)

In the event that a member is separated from employment prior to vesting, all employee contributions, less applicable federal income taxes, shall be returned, without interest, either by lump sum payment or rollover, and the employee shall cease to be a member of the Plan.

(g)

In lieu of the right to any future benefit from the Plan, a separated vested member may rescind the vesting election and receive a refund of contributions, without interest, either by lump sum payment or by rollover, as provided in this Section, provided the application to rescind vested rights is received by the Plan not less than six months prior to the date the separated vested benefit would be payable.

(h)

In the event of the death of a separated member prior to vesting or in the case of a separated vested member prior to the date of eligibility for benefits, the employee contributions shall be refunded to the surviving spouse, or if none, to the member's named beneficiary, or if none, to the member's estate.

(i)

Members in receipt of workers' compensation may only make contributions to the Plan to continue to accrue credited service for a period not to exceed six months from the date of first receiving workers' compensation benefits.

(j)

In consideration of the exit of JEA employees from active membership in the Plan upon a Recapitalization Event and the additional benefits granted to them in Section 120.209(b), JEA shall make an additional contribution to the Plan in a lump sum within 14 days following the funding of a Recapitalization Event. That additional contribution shall be calculated as an amount necessary to maintain the Plan's level of Unfunded Actuarial Accrued Liability, as calculated for funding purposes, and shall be based on an actuarial valuation agreed upon by JEA and the City Finance Department as near as practical to the date of execution of definitive documents. Other events during the year may affect the Unfunded Actuarial Accrued Liability. However, the objective underlying the calculation of this additional contribution from JEA is for the Plan's Unfunded Actuarial Accrued Liability not to be affected by the transaction, i.e., the Unfunded Actuarial Accrued Liability shall be the same before as after the date of the Recapitalization Event. This objective and the calculation of the additional contribution shall recognize the actuarial gain occurring due to the exit of all Plan members employed by JEA, converting from active employees to either retirees or vested separated members, and shall recognize the cost of the additional benefits granted to such members and as described in this Part II by reason of the Recapitalization Event. Following a Recapitalization Event, and the payment by JEA of the contribution required by this Section, the Plan's Unfunded Actuarial Accrued Liability attributable to JEA shall be an obligation of the City of Jacksonville.

After the Recapitalization Event and the exit of JEA employees from active membership in the Plan, the Plan shall not have any recourse against JEA or its successor for any employer contribution or other amortization payments on the Unfunded Actuarial Accrued Liability.

(Ord. 2005-432-E, § 2; Ord. 2007-1136-E, § 1; Ord. 2017-258-E, § 1; Ord. 2019-566-E, § 1)

Sec. 120.204. - Credited service; time connections; prior service.

(a)

Active Members shall be entitled to receive time service credit for any previous period of paid full time employment with the City, either continuous or broken, including paid sick leave, vacation, or other paid leave of absence for which contributions have been made, provided such service has not been used for entitlement to benefits under any other pension system. To be entitled to credit, a member shall make application for credit to the Board at any time prior to retirement. Furthermore, time connections under this subsection shall become effective upon the payment of an employee contribution at the rate of eight percent of the member's earnable compensation in effect when the time connection is made prior to October 1, 2017. Time connections under this subsection shall become effective upon the payment of an employee contribution rate of ten percent of the member's earnable compensation in effect when the time connection is made on or after October 1, 2017. Such contributions may be made by lump sum payment, roll over from another qualified retirement plan, through additional pick-up contributions, without interest, over a period not to exceed five years, or a combination of payment options. When contributions are made over a period of time, they shall be based on the contribution rate at the time the member elected to connect time. Only payroll deductions may be made by pre-tax contributions under Section 414(h)(2) of the Internal Revenue Code. Lump sum payments, other than by plan-to-plan rollover transfer, shall be made with after-tax dollars.

(b)

Credited service shall be granted only for paid, full-time service with the City, except for the specific reasons provided for in this Section.

(c)

No credited service will be granted for unauthorized or unpaid leaves of absence. Credited service shall be granted for approved leaves of absence, including but not limited to certain military leaves and workers' compensation leaves under the conditions described in paragraphs (d) and (e) of this Section. The Board shall determine any questions arising under this Section.

(d)

Members who are in receipt of workers' compensation may only gain credited service by self-paying the contributions which would have been paid had the member been in a regular pay status. If a member is in receipt of partial pay in addition to workers' compensation benefits, the member shall have contributions picked up from the partial pay at the same rate as if the member was in a full pay status.

(e)

Members on approved leave of absence without pay status, and who are not terminated from employment, may elect to make employee contributions and receive credited service in the Plan for a period not to exceed six months.

(f)

Members with prior paid full time service with an agency of the City, may also be entitled to purchase and connect such service with such agency. The agencies and their employees eligible shall be defined to include:

(1)

Duval County prior to consolidation;

(2)

Any agency of the judicial branch of government in Duval County under the Florida Retirement System;

(3)

The State Attorney in Duval County;

(4)

The Public Defender in Duval County;

(5)

The Jacksonville Transportation Authority;

(6)

The Duval County School Board;

(7)

The former Duval County Hospital Authority;

(8)

The employees or officers of any Duval County constitutional officer who served under the Florida Retirement System;

(9)

Agriculture Department employees who participated in the Florida Retirement System;

(10)

The Jacksonville Port Authority;

(11)

The Jacksonville Aviation Authority;

(12)

The Medical Examiner's Office.

(g)

Active Members with eligible service in a Section 120.204(f) agency, who did not participate in, or who received a return of contributions from, another Plan, or who were not vested or who did not participate in such other Plan, shall be eligible to receive credit for that prior service if they meet the following requirements:

(1)

The employee must be a member of the Plan and meet all eligibility requirements.

(2)

The prior service must have been full-time service, defined by uniform Board rule.

(3)

The member shall pay to the Plan contributions for the prior service based on the full actuarial cost of the service purchased. Such contributions may be made by lump sum payment, roll over from another qualified retirement plan, through additional pick-up contributions, without interest, over a period not to exceed five years, or a combination of payment options. Only payroll deductions may be made by pre-tax contributions under Section 414(h)(2) of the Internal Revenue Code. Lump sum payments, other than by plan-to-plan rollover transfer, shall be made with after-tax dollars.

(4)

The cost and contributions due shall be determined by the actuary for the System.

(5)

The application for time connection shall be made prior to retirement.

(6)

No service upon which a time connection is based may be used for benefits under any other plan sponsored by any public employer including the City and the covered agencies.

(7)

No rollover or plan to plan transfer may violate any provision of the Internal Revenue Code or the regulations of the Department of the Treasury.

(8)

The Board of Trustees may promulgate administrative rules to implement this Section.

(h)

Notwithstanding Sections 120.204(f) and 120.204(g), any employee of the Jacksonville Port Authority, the Jacksonville Aviation Authority or the First Coast Metropolitan Planning Organization who is an active member of the Retirement Plan as of the effective date of this Chapter shall be eligible to purchase time service credit for any previous period of paid, full-time employment with the City and such agency of the City pursuant to and in accordance with Section 120.204(a) and shall not be subject to Sections 120.204(f) and 120.204(g).

(i)

In the event that a member transfers from a City department or agency which has its own retirement plan to a position covered in this Plan, without a break in service, the member shall be required to become a member of this Plan. The member shall receive credited service for the completed months and years served in the prior plan for computation of pension benefits.

(j)

Notwithstanding any provision of this Chapter to the contrary, in the case of members hired on or after March 1, 2009, all purchases of service and time connections in excess of ten (10) years shall be made at the full actuarial cost of the service as determined by the actuary for the System. For members hired prior to March 1, 2009, the current program of unlimited time connection shall be continued through February 28, 2011. Failure of an eligible member to commence payment for the time connection prior to that date shall be deemed a voluntary waiver of such right and the member shall be treated for the purposes of this Section as if first employed on or after March 1, 2009. Persons eligible for membership in the Plan shall remain eligible to elect membership and purchase prior service notwithstanding prior participation in Social Security.

(Ord. 2005-432-E, § 2; Ord. 2007-1136-E, § 1; Ord. 2017-258-E, § 1)

Sec. 120.205. - Purchase of military service credit.

(a)

Members who are vested and eligible for retirement benefits may purchase up to two years of active duty military service time as credited service.

(b)

Service may be active duty wartime or nonwartime service, provided that the nonwartime service shall not exceed one year. All military service purchased under this Section must have occurred prior to any employment with the City.

(c)

Wartime service shall be for any period as determined by the Florida Legislature or by Presidential Executive Order, or by Congressional Resolution. Military service shall mean service in the United States Army, Navy, Air Force, Marines, Coast Guard, National Guard, NOAA or other branches of government service as provided in Title 38 of the United States Code.

(d)

Credited service under this Section may be purchased through the deposit of 20 percent of the member's earnable compensation. Payment of the required contributions shall be under the same conditions as provided for purchase of prior service credit.

(e)

Service credit for members on military leaves of absence shall be as provided in Section 116.501(a), Ordinance Code.

(f)

The Board shall promulgate rules for the implementation of this Section.

(Ord. 2005-432-E, § 2)

Sec. 120.206. - Time service retirement benefit; cost-of-living adjustments.

(a)

A member may retire on the next pay period following: the date upon which the member completes 30 years of credited service, regardless of age; or the date upon which the member attains age 55 with 20 years of credited service or the date upon which the member attains age 65 with five years of credited service. There shall be no mandatory retirement age.

(b)

A normal retirement benefit shall be determined by multiplying 2.5 percent of final monthly compensation as defined in Section 120.201 by the number of years of credited service to a maximum of 80 percent. Members actively employed by JEA on the effective date of a Recapitalization Event who are, at that time, eligible for time service retirement benefits pursuant to Section 120.206(a) shall be treated in all respects as retired as of such date and entitled to immediate retirement benefits and attendant rights as described in this Part II.

(c)

A service retirement benefit shall be payable on bi-weekly basis. The benefit payments shall commence on the first payday coincident with or next following the member's actual retirement and shall continue until the death of the member.

(d)

Early retirement shall be available to a member the first full pay period following the completion of 25 or more years of service, but less than 30 years of service, regardless of age with a benefit of two percent per year of credited service or the attainment of age 50 and a completion of 20 years of credited service with the benefit of 2.5 percent per year of credited service reduced by 0.5 percent for each month the benefit commencement precedes age 55.

(e)

The payment of the early retirement income shall be subject to the same conditions as normal retirement income.

(f)

In the event a member elects early retirement, the benefit formula in effect on the early retirement date shall be applicable to the member.

(g)

Notwithstanding any provision of this Section to the contrary, there shall be a minimum retirement benefit of $25 multiplied by the number of whole years of credited service not to exceed 30 years. For members retiring on or after August 14, 1995, the minimum payment shall be increased at a compounded rate of four percent annually on each October 1. The minimum benefit for survivors of a retired member shall be 75 percent of minimum benefit provided in this Section.

(h)

Each retiree or survivor shall be eligible to receive an annual cost-of-living adjustment equal to three percent of the retiree's or survivor's annual benefit, compounded annually. For all benefits commencing on or after October 1 of any year but before the following September 30, the commencement date of the cost-of-living adjustment shall be deemed to be the April 1 next following the October 1 of the year in which the benefit commences. The cost-of-living adjustment shall then be paid on the pay date for the first full pay period following April 1 occurring five years after the commencement of the COLA eligibility period.

(i)

In addition to the cost-of-living benefit set forth in this Section, retirees and survivors shall receive a monthly supplemental benefit equal to $5 multiplied by the number of years of credited service. The benefit shall be not less than $25 per month or more than $150 per month.

(Ord. 2005-432-E, § 2; Ord. 2019-566-E, § 1)

Sec. 120.207. - Surviving spouse benefits; children's benefits; orphans' benefits; dependent parents; funeral expenses.

(a)

Upon the death of a retired member, the surviving spouse shall receive 75 percent of the member's retirement benefit on the date of the retired member's death. The benefit shall be payable for the life of the surviving spouse and shall not be affected by remarriage. The surviving spouse benefit shall be increased by ten percent for each of the retiree's children under the age of 18 years, to a maximum of 100 percent of the retiree's pension. In order to be deemed a surviving spouse of a retired member under the terms of this Section, the spouse must have been married to and living with the retired member at the time of the retired member's death and have been married to the member for not less than 365 consecutive days immediately preceding the death of the member. A spouse shall be deemed living with the member if the member or spouse is confined to a nursing or hospital facility at the time of the member's death. Any factual questions arising from this definition shall be resolved by the Advisory Committee.

(b)

In the event of the death of an active member who is not eligible for a time service retirement, the surviving spouse, as defined in subsection (j), shall receive 75 percent of the pension the member would have received if the member had retired with a time service retirement based on a two percent annual accrual rate, without regard to the actual amount of accrued, credited service at the time of the member's death. If the active member is eligible for a time service retirement at the time of death, the benefit shall be calculated as if the deceased member was a retiree. The surviving spouse benefit shall be increased by ten percent for each of the retiree's children under the age of 18 years, to a maximum of 100 percent of the retiree's pension.

(c)

Unmarried children under the age of 18 years who are orphaned by the death of an employee or retiree shall receive the same benefit as a surviving spouse without children. The benefit shall continue until the earlier of the child's marriage or reaching age 18. In the case of a benefit paid to multiple children, the full amount shall continue to be paid to the orphan or orphans remaining eligible, in an amount not to exceed the maximum surviving spouse benefit provided in this Plan. At age 18, any unpaid employee contributions shall be distributed as a lump sum to the eligible child or children in equal shares.

(d)

Unmarried children under the age of 18 years whose parent is a member or retiree of the Plan shall receive a benefit of $300 per child per month upon the death of the retiree or member, where no other survivorship benefit is available, but not to exceed the member's maximum benefit. The benefit shall continue until the earlier of the child's marriage or reaching age 18. At age 18, any unpaid employee contributions shall be distributed as a lump sum to the eligible child or children in equal shares.

(e)

In the event that any combination of survivorship benefits exceeds the maximum allowable under this Section, the available benefits shall be prorated among the eligible recipients in a manner that will not exceed the maximum available amount.

(f)

In the event that a father or mother of a deceased member is solely dependent on the member for support, the dependent parent(s) shall receive an aggregate benefit equal to 75 percent of the pension the member would have received if the member had retired with a time service retirement based on a two percent annual accrual rate, without regard to the actual amount of accrued, credited service at the time of the member's death and assuming no surviving children. The term dependent parent means that the dependent parent has no source of income other than the deceased member.

(g)

In the event of the death of a member with no survivor entitled to the receipt of a death benefit, the Plan will reimburse the estate of the member or the person paying the member's funeral expenses in an amount not to exceed $2,500 or one-half the accumulated member contributions, without interest, whichever is less. The remaining contributions will be paid to the estate of the member.

(h)

No application for benefits under this Section shall be valid unless filed with the Board within two years of the initial date of eligibility.

(i)

No survivor benefit shall be paid to any person who intentionally and unlawfully killed or participated in procuring the death of the retiree or member.

(j)

In order to be deemed a surviving spouse of an active member under the terms of this Section, the spouse must have been married to the active member at the time of the active member's death.

(k)

Notwithstanding any other provision of this Section, benefits payable to a disabled child shall be payable for the life of the child subject to the conditions set forth in this Section. In order to qualify for benefits under this Section, a child or a guardian of the child must make proper application for benefits and secure the approval of the Advisory Committee and the Trustees. Such approval shall be based upon a comprehensive review of all documents and evidence pertaining to the nature, severity and continuance of the disabling condition. The standards for the disability determination shall generally conform to those employed by the Social Security Administration in conjunction with the payment of supplemental security income benefits for children with disabilities. For the purposes of this subsection, a child will be considered disabled if he or she has a physical or mental condition or combination of conditions that results in "marked and severe functional limitations." The disabling condition must last or be expected to last at least 12 months or be expected to result in the child's death.

(l)

For members actively employed by JEA on the effective date of the Recapitalization Event as described in Section 120.209(b)(1) and 120.209(b)(2) that receive additional credited service and will have a deferred retirement benefit, in the event of the death of such a member subsequent to the effective date of a Recapitalization Event but prior to the date of eligibility for monthly benefits or the date of application to rescind the deferred vested accrued benefit, the eligible surviving spouse shall receive a benefit of 75 percent of the deferred benefit but based on a two percent accrual instead of 2.5 percent. The supplement paid will be based on actual service.

(1)

The benefit shall be paid immediately effective the day after the death of the former employee.

(2)

The benefit will be increased by ten percent for each surviving child under 18 until the child turns 18 up to a maximum of 100 percent of the former employee benefit calculated at the two percent accrual rate.

(3)

If there is no eligible spouse, minor children will receive a benefit of $300 per month until age 18 (with no supplement) up to the same maximum.

(4)

Orphaned children will be paid the same benefit as the spouse.

(5)

In the case of multiple children, the benefit is to be paid in an amount not to exceed the total eligible spousal benefit.

(6)

In the cases with child benefits with no eligible spouse, if employee contributions remain after all payments are made to children they will be paid to any eligible children after the last child turns 18.

(7)

If there is no eligible surviving spouse or surviving children, the estate will be paid the value of the employee contributions only.

(Ord. 2005-432-E, § 2; Ord. 2019-566-E, § 1)

Sec. 120.208. - Disability.

(a)

A member shall be disabled if the member has suffered an illness, injury or disease which renders the member permanently and totally incapacitated, physically or mentally, as established by competent medical evidence from regular and continuous duty as an employee or officer of the City, as established by competent medical evidence. The term "regular and continuous" as used in the foregoing sentence shall not require that an employee or officer be able to perform all of the duties set forth in the job description, but shall mean the ability to perform work within the employee or officer's classification for which a position has been made available by the City, consistent with the physical or mental health of the member.

(b)

In the case of a disability arising from an accident, injury or illness incurred in the performance of service with the City, the long-term disability benefits shall be equal to 50 percent of the member's earnable compensation at the time of disability. There shall be no minimum period of service for a service-related disability.

(c)

In the case of a disability not arising from an accident, illness or injury arising in the performance of service with the City, the long-term disability benefit shall be equal to 25 percent of the member's earnable compensation at the time of disability. In the event the member has more than five years of service, the non-service related disability benefit shall be increased by two and one-half percent of the member's earnable compensation for each year after five years of service to a maximum of 50 percent. There shall be no non-service-related disability benefits for members with less than five years of service at the time of disability. In that event, members separating from service shall receive a return of employee contributions.

(d)

Long-term disability benefits shall be payable until the earlier of recovery and return to work or death; upon the death of a member, the benefit shall be paid at 75 percent to the eligible surviving spouse as defined in Section 120.207(a).

(e)

No member shall be eligible to receive disability benefits during any period of time that the member is receiving a salary from the City. Disability benefits shall not be reduced because the member is or was receiving workers' compensation payments unless the sum of the disability benefits and workers' compensation exceed the compensation on which workers' compensation benefits are computed. In such case, the disability benefits shall be reduced to an amount which when added to the workers' compensation payment will equal the compensation on which workers' compensation benefits are computed.

(f)

Disability benefits shall be paid bi-weekly. No benefit shall be paid until the Pension Board of Trustees has actually considered and approved the members' entitlement to disability.

(g)

No disability benefit payable shall be reduced by any outside income from any gainful employment or occupation engaged in while disabled.

(h)

In the case of a member who is vested at the time of the disability, any time service retirement benefit payments from the Plan shall be reduced by the amount of disability benefit payments received, up to the amount of the disability benefit. If the accrued time service retirement benefit payment exceeds the disability benefit payment, the Plan shall pay the difference. In the case of a vested member who is receiving disability benefits and who dies prior to the date of eligibility for Plan benefits, the employee contributions to the Plan shall be refunded in accordance with the provisions of Section 120.203(h). In the case of a non-vested member who becomes eligible to receive disability benefits, the employee contributions to the Plan shall be refunded in accordance with the provisions of Section 120.203(h). Vested members who are receiving disability benefits shall not be entitled to any retirement benefits except as stated in this paragraph.

(i)

The Pension Board of Trustees shall have the continuing right to require disabled members to submit to a medical examination to determine that the member remains disabled. In order for a member to be deemed recovered, the Board-approved physician must recommend to the Board of Trustees that the member has sufficiently recovered to again engage in gainful employment and that the City has certified that it has a position within its work force available for the member consistent with the member's medical condition. The decision by the Board to examine some but not all disability retirees shall not be deemed an abuse of the Board's discretion or denial of equal protection of the law.

(j)

Upon finding that a member is no longer disabled, the member shall return to work at the same rank and position previously occupied and shall be placed into the appropriate pay rate based on cost-of-living (COLA) allowances and merit increases which the member would have received but for the disability, as determined by the City. The member shall again become an active member of the Plan, if reemployment is accepted. There shall be no creditable service for any period of time in which the member was receiving disability benefits. If the member declines reemployment with the City, the member shall be deemed to have terminated employment on the date that the disability commenced. In such event, the member may receive a return of contributions unless, prior to that date, the member has received disability benefits equal to or greater than the amount of the accumulated contributions.

(k)

Application for disability shall be made on a form prescribed by the Pension Board of Trustees. The member shall execute such medical releases as are necessary to permit the Board of Trustees to review the medical records needed to determine the question of disability and to discuss said records at a public meeting. Upon receipt of an application for disability, the Board shall appoint not less than one or more than three licensed physicians. The applicant for disability may be required to submit to examination by the Board-designated physician(s). The Board-designated physician(s) shall report its findings to the Pension Advisory Committee and Board of Trustees, which shall include a determination, to the extent reasonably possible, of the origin of the disability, whether the disability is permanent, and whether the disability is total. In making that determination, the Board-designated physician(s) shall be bound by the definition of disability in this Section.

(l)

Upon receipt of the report of the Board-designated physician(s), the Pension Advisory Committee shall schedule a public hearing at which time the Committee shall review all reports of the Board-designated physician(s), together with any such documentary evidence as the applicant may wish to submit. The Committee shall make a preliminary determination as to whether the member is permanently and totally disabled based upon the written documentation presented. If the Committee does not recommend that the Board of Trustees grant the application based on the written documentation, it shall inform the member in writing of the reasons for the denial of the application. The member may, within 30 days of receipt of the Committee's preliminary denial, request a full evidentiary hearing before the Committee. Said hearing will be conducted consistent with the principles of due process and the rules of evidence generally applicable to administrative proceedings shall apply. The Committee shall have the power to issue subpoenas compelling the attendance of witnesses. At said hearing the applicant may present such oral and written evidence as the applicant deems necessary to establish its burden of proof. The applicant and the Committee shall have the right to examine and cross-examine all witnesses. The recommended decision of the Committee shall be based solely upon the evidence presented and applicable law. Following the conclusion of the hearing, the Committee shall render an opinion in writing setting forth the reasons for recommending the grant or denial of the benefit. The Committee's recommendation shall be reported to the Board, which makes the final determination. If the Committee recommends denial of the disability benefit, the applicant may make a formal appeal to the Board.

(m)

The Pension Board of Trustees may prescribe rules of procedure to implement the provisions of the Disability Program relating to the conduct of disability hearings.

(n)

No member shall be granted a disability benefit upon a determination by the Pension Board of Trustees that the disability resulted from:

(i)

Excessive and habitual use of drugs, intoxicants or narcotics;

(ii)

Injury or disease sustained while willfully and illegally participating in fights, riots, or civil insurrections, or while committing a crime;

(iii)

Injury or disease arising from service in the armed forces which entitle the member to disability benefits from the former employer;

(iv)

Self-inflicted wounds or conditions.

(o)

A portion of the member contributions, as defined in Section 120.203(a), equal to three tenths percent (0.3%), shall be picked-up to fund the disability benefit. The City shall contribute such additional sums as are necessary to fund the disability benefit on a sound actuarial basis.

(Ord. 2005-432-E, § 2; Ord. 2007-1136-E, § 1; Ord. 2017-258-E, § 1)

Sec. 120.209. - Vesting, termination, re-employment.

(a)

Except as otherwise provided in this Section, all rights to benefits under this Plan shall terminate when a member's employment terminates for any reason other than normal service retirement, early service retirement, or disability retirement. Any member who completes five years of credited service and whose contributions remain in the Plan has a vested right to accrued benefits from the System. No member who has completed less than five years of credited service shall have a vested interest in any accrued benefit.

(b)

A member who shall leave the service of the City prior to eligibility for normal service retirement or early service retirement, but who has completed five years of creditable service shall be entitled to receive retirement benefits commencing at age 65 at a 2.5 percent accrual rate for each year of creditable service. Such benefits will be based on final monthly compensation as defined in Section 120.201(n) and credited service as of the date of termination.

(1)

Notwithstanding any provision to the contrary in this Part II, members actively employed by JEA on the effective date of a Recapitalization Event who have, at that time, completed less than five years of credited service:

a.

Shall be treated for all purposes under this Part II has having, as of such date, completed five years of credited service for vesting eligibility and for benefit accrual purposes and shall be considered vested in such accrued benefit and treated as a Vested Separated Member;

b.

Shall be entitled to receive such monthly accrued benefit commencing on the date otherwise applicable to Members as set forth in Section 120.209(b) based on five years of credited service and final monthly compensation determined based on the member's average monthly compensation for the highest 36 consecutive months of JEA service, or if the member's actual period of JEA service is less than 36 months, the monthly average for the actual period of service, to the effective date of such Recapitalization Event;

c.

May rescind the deferred vested accrued benefit and, in lieu of the right to any future benefit from the Plan, receive a single sum amount equal to twice the accumulated employee contributions, without interest, either by lump sum payment or by rollover, as provided in Section 120.203, provided the application to rescind vested rights is received by the Plan not less than six months prior to the date the deferred vested benefit would be payable; and

(2)

Notwithstanding any provision to the contrary in this Part II, members actively employed by JEA on the effective date of the Recapitalization Event who have, at that time, completed five or more years of credited service but who have not satisfied the conditions for time service requirement set forth in Section 120.206(a) shall:

a.

Shall be treated for all purposes under this Part II as a vested separated member;

b.

Shall have additional years of credited service added for benefit accrual purposes as follows: each such vested separated member's monthly deferred vested benefit accrued as of the effective date of such Recapitalization Event shall be determined using the number of years of credited service such member would have as of their earliest normal retirement date (i.e., the earliest date the conditions set forth in Section 120.206(a) would be satisfied if such member were to continue to working in covered employment until such date);

c.

Shall have the monthly vested benefit accrued as of the effective date of such Recapitalization Event determined using the member's final monthly compensation as of the effective date of such Recapitalization Event;

d.

Shall have the monthly vested benefit accrued as of the effective date of such Recapitalization Event determined with recognition of any minimum benefit applicable under Section 120.206(g) including any indexation of the minimum as described therein;

e.

Shall be entitled to receipt of such monthly vested benefit accrued commencing on the earliest normal retirement date (i.e., the earliest date the conditions set forth in Section 120.206(a) would be satisfied if such member were to continue to work in covered employment until such date).

(3)

Following a Recapitalization Event, and the accrual of additional service pursuant to Section 120.209, JEA employees shall have no further accruals under the Retirement Plan unless reemployed by the City and in accordance with Section 120.202(a)(4).

(c)

If a retiree or separated vested member re-enters City service in a position covered by this Plan, benefit payments shall cease and the retiree or separated vested member shall again become an active member of the Plan. Upon subsequent retirement, the new pension benefit shall be computed in accordance with the provisions of Section 120.206, but based on a final monthly compensation computed as if there were no gap in time between the original retirement date and the reemployment date, provided that the period of re-employment exceeds one year. This Section shall not apply to retired members re-hired as poll workers, part-time workers or temporary workers.

(d)

Notwithstanding the provisions of subparagraph (c) above, or any other City ordinance to the contrary, any time service retiree of the City of Jacksonville General Employees Retirement Plan, who otherwise qualifies, may be re-employed by the City on a part-time or temporary basis without the cessation of retirement benefits payable to such retiree pursuant to Chapter 120, Ordinance Code, because of, and during, such re-employment. For purposes of this subparagraph (d), the term "part-time" shall mean a position routinely requiring fewer than 25 hours of work per week (50 hours per pay period) on a regular and recurring basis, and the term "temporary" shall mean a full-time temporary position required for less than six months on a special assignment or to replace an employee on leave. Part time employees working for the Supervisor of Elections may, during the period beginning eight weeks before and ending two weeks after an election conducted by the Supervisor of Elections, work more than 25 hours per week (50 hours per pay period) without the cessation of retirement benefits payable under Chapter 120, Ordinance Code. In no event shall any time service retiree of the City of Jacksonville General Employees Retirement Plan acquire time service credit or any other benefit under Chapter 120, Ordinance Code, during, or in connection with, such re-employment, nor shall any amendment to the Plan not otherwise applicable to retired members apply to any re-employed retired member.

(e)

Members of the General Employees Retirement Plan may be re-employed by the City on a full-time basis in any capacity. In that event, payment of retirement benefits and accrual of COLA benefits shall be suspended for the period of re-employment and the retired members shall again become active members of the Plan. Upon the completion of the period of re-employment, and provided that the period of re-employment exceeds one year, the time service retirement benefit shall be re-computed, taking into account the additional credited service and any change in final monthly compensation occurring from the period of re-employment, as provided in Section 120.209(c). In the case of a member of the General Employees Retirement Plan who is re-employed in accordance with this Section, the member may, in lieu of continuing in the Plan, make a one-time, irrevocable election to join the Defined Contribution Plan as set forth in Sections 120.501A, et seq. Such election must be made within 90 days of re-employment. In the case of such an election, the member's benefits in the General Employees Retirement Plan shall be frozen at the level in effect at the time of re-employment and will re-commence at the same amount upon separation from service. Members electing to join the Defined Contribution Plan shall not accrue any additional benefits, service, pensionable compensation, plan amendment or any other benefit from the General Employees Retirement Plan except for the benefits to be restarted upon separation from service; provided however that the accrual of COLA benefits under the General Employees Retirement Plan shall not be affected during such re-employment period.

(Ord. 2005-432-E, § 2; Ord. 2006-1391-E, § 2; Ord. 2007-1136-E, § 1; Ord. 2017-258-E, § 1; Ord. 2019-566-E, § 1; Ord. 2022-412-E, § 2)

Sec. 120.210. - Reserved.

Editor's note— Ord. 2011-235-E, § 1, amended the Code by repealing former § 120.210 in its entirety. Former § 120.210 pertained to transfer of terminal leave, and derived from Ord. 2005-432-E, § 2.

Sec. 120.211. - Amendment or termination of the plan.

(a)

It is the intention of the City and the Board that this pension plan shall constitute an irrevocable trust and no portion of the assets may revert to the employer until all other obligations of the Plan, including the payment to the last surviving member and beneficiary has been paid. No amendment shall result in members receiving lower benefits than those in effect on the date the member commenced service with the City.

(b)

In the event of termination or partial termination of the Plan, each participant's accrued pension benefit shall become nonforfeitable (100 percent vested) to the extent funded. At such time, the funds shall be appropriated and distributed as provided by law.

In the event that the Plan is terminated, the assets of the Plan shall first be distributed to retired members and their beneficiaries. If there is any asset value remaining after the apportionment to retired members and their beneficiaries, apportionment shall next be made to each member in the service who has completed at least five years of credited service and has contributed to the fund for at least five years and who is not otherwise eligible to retire. If there is any asset value after the apportionments to retirees and their beneficiaries and to vested members of the Plan, apportionment shall lastly be made in respect of each member in the service of the City in an amount not to exceed the total value of the member's contributions. In the event that there is any asset value remaining after full apportionment to all members and beneficiaries of the Plan, the excess, if any, shall revert to the City.

(Ord. 2005-432-E, § 2)

Sec. 120.212. - Distribution of marital interests in the plan.

(a)

In the event that the Board is served with a domestic relations order or other legal process purporting to require the payment of any portion of a member's benefit to another person as a result of dissolution of marriage, the Board shall cause such order to be reviewed to determine compliance with the provisions of the System. As federal law on qualified domestic relations orders does not apply to the Plan, the Plan shall not be required to honor such orders. The Plan shall only be required to honor income deduction orders as provided by Florida law. In the event that the Florida Legislature adopts laws in conflict with this Section, the State law shall control.

(Ord. 2005-432-E, § 2)

Sec. 120.213. - Miscellaneous.

(a)

The present or future right of a person to money in the Plan or to a retirement allowance, an optional allowance, a death benefit, the return of contributions, or any other right accrued or accruing under the provisions of this Plan shall not be assignable and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency law or any other process of law whatsoever, except with respect to alimony, child support or medical payments to a former spouse or minor child. A retiree may authorize deductions from the benefits in this Section for payment of City-sponsored health insurance or dues to retiree organizations of which the retiree is a member.

(b)

The Board shall have the power to examine the facts upon which any pension has been granted under any prior or existing law or which may be granted in the future or which has been obtained erroneously, fraudulently, or illegally for any reason. The Board is empowered to purge the pension rolls of any person who has been granted a pension under a prior or existing law, or who is hereafter granted a benefit under this Chapter if the granting of that pension is found to be erroneous, fraudulent, or illegal for any reason; and to reclassify any pensioner who has under any prior or existing law or who may under this Chapter be erroneously, improperly or illegally classified.

(c)

Should any change or error in retirement system records be discovered or result in any member or beneficiary receiving from the Retirement Plan more or less than he or she would have been entitled to receive had the records been correct, the Board shall have the power to correct such error and, as far as possible, adjust the payments in such a manner that the actuarial equivalent of a benefit to which such member or beneficiary was correctly entitled shall be paid.

(d)

If any member or beneficiary is a minor or is under any other legal disability, the Board of Trustees shall have the power to withhold payment of benefits until the Board is presented with proof satisfactory to the Board of the appointment of a guardian. If the Board becomes aware that any member or beneficiary is incapable of personally receiving and giving a valid receipt for any payment due under the Plan, the Board shall cause notice to be given to that participant or beneficiary of a hearing to determine whether said benefits should continue to be paid until the appointment of a guardian. During the pendency of any such hearing, however, the Board may continue to pay benefits to the member or beneficiary and that such payment shall be a complete discharge of any liability under the Plan for such payment.

(e)

No award of back pay entered by an arbitrator, the Civil Service Board, or a court shall have the effect of creating a liability in this Plan without said award having first been reviewed by the appropriate Advisory Committee and the actuarial impact of said award having been provided for by the payment of appropriate contributions to the Plan. No such award shall be enforceable to the extent it permits the payment of benefits not otherwise provided for in this Plan.

(Ord. 2005-432-E, § 2)

Sec. 120.214. - BACKDROP.

(a)

There is hereby created a BACKDROP retirement option (the "BACKDROP") to the Retirement Plan, which shall allow any member, who has 30 or more years of credited service, to elect to have that member's retirement benefits calculated as if the member actually had retired at any earlier date after the date the member earned 30 years of credited service.

(b)

Any member who has 30 or more years of credited service is eligible to participate in the BACKDROP.

(c)

(1)

An eligible member may elect to participate in the BACKDROP by submitting the following to the Pension Department:

(i)

One copy of a signed and submitted letter of resignation dated effective as of the date of election to participate in the BACKDROP.

(ii)

A properly completed BACKDROP application on forms provided by the Pension Department, which, once submitted, shall be irrevocable by the member.

(iii)

Subject to Section 120.214(e), selection of the dates that begin and end the period of participation in the BACKDROP (the "BACKDROP Period).

(iv)

Any other documents or information as may be reasonably required by the Pension Department.

(2)

For purposes of this Section, each eligible member who elects to participate in the BACKDROP and satisfies all of the requirements of this Section shall be referred to as a "BACKDROP Participant."

(d)

A BACKDROP Participant must resign and retire from the City as of the date of election to participate in the BACKDROP. No benefits shall be paid under this Section unless and until the BACKDROP Participant has resigned and retired from the City.

(e)

A BACKDROP Participant's BACKDROP Period shall not:

(1)

Commence prior to October 1, 2005;

(2)

Commence at any date earlier than the date the BACKDROP Participant earned 30 years of credited service; and

(3)

Exceed 60 months.

(f)

(1)

Provided the BACKDROP Participant has satisfied all requirements set forth in this Section, the BACKDROP Participant shall be entitled to receive an amount equal to:

(a)

The amount of the normal retirement benefits the BACKDROP Participant was eligible to receive during the BACKDROP Period had the BACKDROP Participant actually retired at the commencement of the BACKDROP Period instead of electing to participate in the BACKDROP, as determined by an actuary engaged by the Retirement Plan; and

(b)

The amount of interest to be credited pursuant to Section 120.214(g).

(2)

Upon expiration of the BACKDROP Period, the BACKDROP Participant thereafter shall be eligible to receive normal retirement benefits pursuant to Section 120.206.

(3)

A BACKDROP Participant shall not accrue additional credited service under the Retirement Plan after the commencement of the BACKDROP Period.

(g)

For each year during the BACKDROP Participant's BACKDROP Period, the amount of the BACKDROP Participant's BACKDROP benefits shall be credited with interest at the General Employees Retirement Plan's earned actuarial rate of return, but, in no event, shall such rate of return be less than a negative four percent rate of return per annum or more than a positive four percent rate of return per annum, as determined by an actuary engaged by the Retirement Plan.

(h)

A BACKDROP Participant shall not be entitled to receive any cost-of-living increase during the BACKDROP Period. The five-year wait period to receive cost-of-living increases, as set forth in Section 120.206(h), shall commence at the expiration of the BACKDROP Participant's BACKDROP Period.

(i)

(1)

Provided the BACKDROP Participant has satisfied all requirements set forth in this Section, within 90 days from the date of expiration of the BACKDROP Period or as soon as practical thereafter, the Retirement Plan shall disburse the amount of the BACKDROP Participant's BACKDROP benefits to the BACKDROP Participant in a single sum amount, either through a cash payment or direct rollover, less any taxes required to be withheld and remitted to the Internal Revenue Service.

(2)

All disbursements made pursuant to Section 120.214(i)(1) shall be made subject to and in accordance with all applicable provisions of the Internal Revenue Code.

(Ord. 2005-1139-E, § 1)

Sec. 120.215. - Partial lump-sum.

(a)

General. There is hereby created a partial lump-sum payment option (the "PLOP") to the Retirement Plan, which shall allow any eligible member to elect to receive up to 15 percent, in increments of five percent, of the actuarial present value of the member's retirement benefits as a one-time, lump-sum payment upon retirement, with the member's remaining retirement benefits to be paid via a bi-weekly life annuity, which shall be actuarially reduced to reflect the lump-sum payment made to the member, each as determined by an actuary engaged by the Retirement Plan.

(b)

Eligibility. Any retiring member who retires from the City on or after January 1, 2006 shall be eligible to participate in the PLOP.

(c)

Election.

(1)

Any eligible member may elect to participate in the PLOP by submitting the following to the Pension Office:

(i)

A properly completed PLOP application on forms provided by the Pension Office, which, once submitted, shall be irrevocable by the member.

(ii)

Any other documents or information as may be reasonably required by the Pension Office.

(2)

A member who elects to participate in the PLOP shall not be eligible, entitled or permitted to participate in the BACKDROP set froth in Section 120.214. A member who elects to participate in the BACKDROP shall not be eligible, entitled or permitted to participate in the PLOP.

(3)

For purposes of this Section, each eligible member who elects to participate in the PLOP and satisfies all of the requirements of this Section shall be referred to as a "PLOP Participant."

(d)

PLOP Benefit. Provided the PLOP Participant has satisfied all requirements set forth in this Section, the PLOP Participant shall receive up to 15 percent of the actuarial present value of the PLOP Participant's retirement benefits as a one-time, lump-sum payment upon retirement, with the PLOP Participant's remaining retirement benefits to be paid via a bi-weekly life annuity, which shall be actuarially reduced to reflect the lump-sum payment made to the PLOP Participant, each as determined by an actuary engaged by the Retirement Plan. The foregoing benefits shall be in lieu of the retirement benefits the PLOP Participant would have received had the PLOP Participant not elected to receive a partial lump-sum payment pursuant to this Section.

(e)

Disbursement.

(1)

Within 90 days from the date of retirement or as soon as practical thereafter, the Retirement Plan shall disburse the partial lump-sum payment to the PLOP Participant in a single sum amount, either through a cash payment or direct rollover, less any taxes required to be withheld and remitted to the Internal Revenue Service.

(2)

All disbursements made pursuant to this Section shall be made subject to and in accordance with all applicable provisions of the Internal Revenue Code.

(f)

No Negative Actuarial Impact to Retirement Plan. Notwithstanding the provisions set forth elsewhere in this Section, no election or benefit paid pursuant to this Section shall have a negative actuarial impact to the Retirement Plan.

(Ord. 2005-1284-E, § 2)

Sec. 120.216. - 2021 Limited Retirement Option.

(a)

City Employee Members and Jacksonville Housing Authority Members.

(1)

Notwithstanding any other provision in this Part II to the contrary, a member, excluding JEA employees, may retire between April 1, 2021, and September 30, 2021, if on the date of such retirement the member has attained:

a.

Age 55 with ten years of credited service; or

b.

Age 60 with five years of credited service.

A member who retires pursuant to this subsection (1) must retire between April 1, 2021 and September 30, 2021 and shall receive a benefit of 2.5 percent per year of credited service based on final monthly compensation and credited service, defined by subsections 120.201(i) and (n), as of the date of termination.

(2)

Notwithstanding any other provision in this Part II to the contrary, early retirement shall be available to a member, excluding JEA employees, between April 1, 2021, and September 30, 2021, if on the date of early retirement the member has completed 20 or more years of credited service, but less than 30 years of credited service, regardless of age. A member who retires pursuant to this subsection (2) must retire between April 1, 2021 and September 30, 2021 and shall receive a benefit of two percent per year of credited service, based on final monthly compensation and credited service, defined by subsections 120.201(i) and (n), as of the date of termination.

(3)

To be eligible for retirement under subsection (1) or (2) above, in addition to meeting the age and/or time service credit requirements, a member must submit written or electronic notice of the retirement election and the date of retirement to the Board between April 1, 2021 and May 31, 2021. Such election shall be binding on the member and irrevocable. In the event of the death of a member after providing notice of election but before the date of retirement, the provisions of subsections (1) and (2) shall not apply. All time service credit purchases, whether existing prior to or initiated during the early retirement period, must be completed no later than the date of retirement in order for the service purchased to be included in the member's benefit calculation.

(4)

Any member who elects to retire pursuant to subsection (1) or (2) above shall be prohibited from being re-employed by the City for a period of one year from the date of retirement, except that such member may be re-employed on a part-time or temporary basis pursuant to Sec. 120.209(d). If a member who elects to retire pursuant to subsection (1) or (2) above is re-employed by the City on a full-time basis more than one year after retirement, the member shall be prohibited from becoming an active member of the General Employees Retirement Plan and shall not accrue any additional benefits, service, pensionable compensation, plan amendment or any other benefit from the General Employees Retirement Plan, and payment of retirement benefits except accrual of COLA benefits shall be suspended for the period of re-employment.

(5)

In lieu of retirement under the General Employees Retirement Plan, members meeting the age and/or time service credit requirements of subsection (1) or (2) may elect to convert to the GEDC Plan in accordance with Section 120.202(e), and shall be subject to all of the terms, requirements, and restrictions of subsections (3) and (4) above.

(b)

JEA Members.

(1)

Notwithstanding any other provision in this Part II to the contrary, a JEA member may retire between May 1, 2021, and October 31, 2021, if on the date of such retirement the member has attained:

a.

Age 55 with 10 years of credited service; or

b.

Age 60 with five years of credited service.

A member who retires pursuant to this subsection (1) must retire between May 1, 2021 and October 31, 2021 and shall receive a benefit of 2.5 percent per year of credited service based on final monthly compensation and credited service, defined by subsections 120.201(i) and (n), as of the date of termination.

(2)

Notwithstanding any other provision in this Part II to the contrary, early retirement shall be available to a JEA member between May 1, 2021, and October 31, 2021, if on the date of early retirement the member has completed 20 or more years of credited service, but less than 30 years of credited service, regardless of age. A member who retires pursuant to this subsection (2) must retire between May 1, 2021 and October 31, 2021 and shall receive a benefit of two percent per year of credited service, based on final monthly compensation and credited service, defined by subsections 120.201(i) and (n), as of the date of termination.

(3)

To be eligible for retirement under subsection (1) or (2) above, in addition to meeting the age and/or time service credit requirements, a member must submit written or electronic notice of the retirement election and the date of retirement to the Board between May 1, 2021 and June 30, 2021. Such election shall be binding on the member and irrevocable. In the event of the death of a member after providing notice of election but before the date of retirement, the provisions of subsections (1) and (2) shall not apply. All time service credit purchases, whether existing prior to or initiated during the early retirement period, must be completed no later than the date of retirement in order for the service purchased to be included in the member's benefit calculation.

(4)

Any member who elects to retire pursuant to subsection (1) or (2) above shall be prohibited from being re-employed by the City for a period of one year from the date of retirement, except that such member may be re-employed on a part-time or temporary basis pursuant to subsections 120.209(d). If a member who elects to retire pursuant to subsection (1) or (2) above is re-employed by the City on a full-time basis more than one year after retirement, the member shall be prohibited from becoming an active member of the General Employees Retirement Plan and shall not accrue any additional benefits, service, pensionable compensation, plan amendment or any other benefit from the General Employees Retirement Plan, and payment of retirement benefits except accrual of COLA benefits shall be suspended for the period of re-employment.

(5)

In lieu of retirement under the General Employees Retirement Plan, members meeting the age and/or time service credit requirements of subsection (1) or (2) may elect to convert to the GEDC Plan in accordance with Section 120.202(e), and shall be subject to all of the terms, requirements, and restrictions of subsections (3) and (4) above.

(Ord. 2020-529-E, § 1)

PART III. - CORRECTIONS OFFICERS' RETIREMENT PLAN

Sec. 120.301. - Definitions.

The following words and phrases as used in this Part shall have the following meaning:

(a)

Accumulated Contributions shall mean the sum of all amounts deducted from a member's compensation and picked up on behalf of a member.

(b)

Active Membership shall mean membership in the Retirement System as an employee.

(c)

Actuarial Equivalent shall mean that any benefit payable under the terms of this system other than the normal form of benefit shall have the same actuarial present value on the date the payment commences as the normal form of benefit. For purposes of establishing the actuarial present value of any form of benefit, other than a lump sum distribution, all future payments shall be discounted for interest and mortality using the RF-2000 mortality table with the current actuarial rate of return. In the case of a lump sum distribution, the actuarial present value shall be determined on the basis of the same mortality rates as set forth in this Section.

(d)

Advisory Committee for Corrections Officers shall mean the committee created by State law for the purpose of addressing issues currently reserved to the Corrections Officers Advisory Committee that relate solely to correction officers. The Corrections Officer Advisory Committee shall review benefit applications for Corrections Officers.

(e)

And shall have a conjunctive meaning.

(f)

Beneficiary/Retiree shall mean any person receiving a retirement allowance and/or other benefit from the Retirement System.

(g)

Benefit shall mean a retirement allowance and/or other payment provided by the Retirement System.

(h)

Board or Board of Trustees shall mean the Board of Trustees of the Retirement System.

(i)

City shall mean the City of Jacksonville, Florida and those agencies of the City whose employees and officers are eligible for participation in the Fund.

(j)

Corrections Officer shall mean a person certified as a corrections officer under Florida Statutes, Chapter 943 and for whom contributions are made to this Plan.

(k)

Credited Service shall mean membership credit upon which a member's eligibility to receive benefits under the Retirement Plan is based, or upon which the amount of such benefits is to be determined.

(l)

Disability shall mean the permanent and total incapacity to perform regular and continuous duties as a corrections officer. The term regular and continuous as used in this definition shall not require that an employee or officer be able to perform all of the duties set forth in the job description, but shall mean the ability to perform work within the employee or officer's classification for which a position has been made available by the City, consistent with the physical or mental health of the member.

(m)

Earnable Compensation shall mean a member's base pay for regular hours worked as an employee, plus service raises and excluding bonuses, adjusted compensation, overtime or any extra compensation over and above regularly budgeted salaries. Earnable compensation shall not include payouts of accumulated leave taken as cash upon separation from service. Retroactive payments shall be credited to the calendar year in which such payments would have been received had they been timely paid. Compensation for any plan year shall not include any amounts in excess of the Internal Revenue Code Section 401(a)(17) limitation as adjusted for change in the cost of living in the manner prescribed by the IRC, Section 401(a)(17)(B).

(n)

Employee shall mean a person currently employed by the City and for whom contributions are being made to the Plan. The term "employee" shall include corrections officers and shall exclude all other employees of the City.

(o)

Final Monthly Compensation shall mean a member's average monthly rate of earnable compensation from the City during the highest 36 consecutive months (78 pay periods) out of the last ten (10) years of employment.

(p)

Fund or System shall mean the City of Jacksonville Retirement System.

(q)

Jacksonville Sheriff's Office shall mean the constitutional office of the Sheriff of Duval County who appoints corrections officers covered under this Plan.

(r)

May shall mean a permissive term.

(s)

Member shall mean an employee actively employed by the City for whom contributions to the Retirement Plan are made as required by this Ordinance and shall be consistent with the requirements of Section 120.302(a).

(t)

Minimum Vesting shall mean five (5) years of credited service before the member is entitled to retirement benefits except for service-incurred disability retirement income or service incurred death benefits.

(u)

Pension shall mean a series of periodic payments payable in bi-weekly installments.

(v)

Pick-Up Amounts shall mean employer contributions derived from a member's earnable compensation through a reduction in the member's earnable compensation.

(w)

Plan Year shall mean the period from October 1 through and including September 30 of the following year.

(x)

Retirement shall mean a member's withdrawal from active membership with a benefit granted to the member pursuant to the provisions of this Ordinance.

(y)

Retirement Allowance shall mean a pension provided by the Retirement Plan.

(z)

Retirement Plan shall mean the City of Jacksonville Corrections Officers' Retirement Plan.

(aa)

Service shall mean active service as an employee.

(bb)

Summary Plan Description shall mean a document created by the Board containing a brief description of the benefits offered by the Plan. In the case of a conflict between this Ordinance, or Florida Statutes, and the summary plan description, the terms of the ordinance or statute shall prevail.

(cc)

Time Service Retirement shall mean a member's retirement from active service under circumstances permitting payment of a retirement allowance without reduction because of age or length of service and without special qualifications such as disability. Time service retirement shall be considered normal retirement.

(dd)

Trustee shall mean a member of the Board of Trustees of the Retirement System.

(ee)

Vested Benefit shall mean an immediate or deferred benefit to which a member has gained a non-forfeitable right under the provisions of this Part.

(ff)

Vested Separated Member shall mean a person who has earned a vested benefit and has separated from the City but has not commenced receipt of benefits.

(Ord. 2005-432-E, § 2; Ord. 2006-1229-E, § 2; Ord. 2017-258-E, § 1)

Sec. 120.302. - Membership.

(a)

Consistent with the provisions of Chapter 16 of the City Charter, full-time civil service employees not eligible for membership in another City-sponsored pension plan shall become members of the Plan.

(1)

Employees who previously met the requirements of Members, who leave employment with the City of Jacksonville but do not remove their contributions from the Retirement Plan, upon being rehired, may re-enroll in the Retirement Plan and be considered Members as defined herein.

(2)

Employees who previously met the requirements of Members, who leave employment with the City of Jacksonville and remove their contributions from the Retirement Plan, upon being rehired, shall not be entitled to re-enroll in the Retirement Plan and shall not be considered Members as defined herein.

(3)

Employees hired on or after October 1, 2017, shall never be eligible to be Members of the Retirement Plan. Employees hired on or after October 1, 2017, shall be members of the Corrections Employees Defined Contribution Plan provided for in Part V, Subpart B.

(b)

Appointed and elected officials and permanent employees not in the civil service system may opt to become members of the Plan, consistent with Section 16.04 of the City Charter. Elected officials eligible to receive benefits under this System or any prior Plan shall be permitted to continue to receive those benefits.

(c)

All applicants for membership in the System shall be required to undergo a physical examination for the purpose of determining pre-existing medical conditions. No condition of health shall preclude a person elected or hired by the City from membership, but no application for disability retirement shall be based on a pre-existing medical condition revealed by the physical examination provided for in this paragraph. Any applicant determined to have a pre-existing medical condition shall, as a condition of admission to the System, waive the right to receive a disability or pre-retirement death benefit based on that condition in a form acceptable to the Board.

(d)

Membership in the System shall be deemed to commence after an applicant has completed the required physical examination, has executed any appropriate waiver forms, and has submitted all required enrollment forms, and shall be coincident with the first pay period in which employee contributions are made.

(Ord. 2005-432-E, § 2; Ord. 2017-258-E, § 1)

Sec. 120.303. - Contributions; refunds of contributions.

(a)

The City shall pick-up, rather than deduct from each member's pay, beginning with the date of membership, ten percent of the member's earnable compensation. The monies so picked-up shall be deposited in the Fund immediately after each pay period. An account record shall be maintained continuously for each member. Pick-up contributions shall continue until death, disability or termination of service, whichever shall occur first. Contributions shall remain in the Fund unless withdrawn as provided in the Plan. No member shall have the option to choose to receive the contributed amounts directly instead of having them paid by the City directly to the System. All such pick-up contributions by the City shall be deemed and be considered as part of the member's accumulated contributions and subject to all provisions of the Plan pertaining to accumulated contributions of members. The intent of this provision is to comply with Section 414(h)(2) of the Internal Revenue Code. For the purpose of accruing and calculating pension benefits, and for all other purposes of calculating wage-related benefits and calculations, the amounts picked-up under this Section shall be considered part of the earnable compensation of a member.

(b)

All benefits payable under this Plan are in lieu of a refund of accumulated contributions.

(c)

In order to assure the City's statutory and constitutional guarantee of the actuarial soundness of the Plan, the City shall make such contribution which together with contributions picked-up on behalf of members and the Plan's earnings, will maintain the Fund as required by relevant statutes and ordinances, including Chapter 776, as determined by the Board in conjunction with its actuary. The City's contributions may be made in a lump sum at the commencement of the fiscal year or in equal bi-weekly installments or in equal quarterly installments.

(1)

In any year, beginning with Fiscal Year 2017-18, that the Plan's liquidity ratio, meaning the market value of assets divided by the annual benefit payments, falls below five, the City shall, subject to annual appropriation, make a contribution or payment in an amount sufficient to restore the Plan's liquidity ratio to at least five, as determined by the plan actuary.

(2)

Beginning with Fiscal Year 2017-18, regardless of the amount of revenue received from the Pension Liability Surtax and the applicable Actuarially Determined Employer Contribution, the City shall hereinafter, subject to annual appropriation, make an annual contribution from a source other than the Pension Liability Surtax proceeds (provided for in Chapter 776) in a minimum amount of 10 million dollars, less any amount paid under subsection (1) above.

(3)

The provisions of subsections (1) and (2) shall remain in effect until the Plan is 100 percent funded.

(d)

Expenses, charges and fees attributable to the management of the System shall be paid from the Fund.

(e)

The City shall have no right, title or interest in the Fund or in any part thereof, and no contribution made thereto shall revert to the City, except such part of the Fund, if any, which remains therein after the satisfaction of all liabilities to persons entitled to benefits under the Plans within the System.

(f)

In the event that a member is separated from employment prior to vesting, all employee contributions, less applicable federal income taxes, shall be returned, without interest, either by lump sum payment or rollover, and the employee shall cease to be a member of the Plan.

(g)

In lieu of the right to any future benefit from the Plan, a separated vested member may rescind the vesting election and receive a refund of contributions, without interest, either by lump sum payment or by rollover, as provided in this Section, provided the application to rescind vested rights is received by the Plan not less than six months prior to the date the separated vested benefit would be payable.

(h)

In the event of the death of a separated member prior to vesting or in the case of a separated vested member prior to the date of eligibility for benefits, the employee contributions shall be refunded to the surviving spouse, or if none, to the member's named beneficiary, or if none, to the member's estate.

(i)

Members in receipt of workers' compensation may only make contributions to the Plan to continue to accrue credited service for a period not to exceed six months from the date of first receiving workers' compensation benefits.

(Ord. 2005-432-E, § 2; Ord. 2017-258-E, § 1))

Sec. 120.304. - Credited service; time connections; prior service.

(a)

Active Members shall be entitled to receive time service credit for any previous period of paid full time employment with the City, either continuous or broken, including paid sick leave, vacation, or other paid leave of absence for which contributions have been made, provided such service has not been used for entitlement to benefits under any other pension system. To be entitled to credit, a member shall make application for credit to the Board at any time prior to retirement. Furthermore, time connections under this subsection shall become effective upon the payment of an employee contribution at the rate of eight percent of the member's earnable compensation in effect when the time connection is made prior to October 1, 2017. Time connections under the subsection shall become effective upon the payment of an employee contribution at the rate of ten percent of the member's earnable compensation in effect when the time connection is made on or after October 1, 2017. Such contributions may be made by lump sum payment, roll over from another qualified retirement plan, through additional pick-up contributions, without interest, over a period not to exceed five years, or a combination of payment options. When contributions are made over a period of time, they shall be based on the contribution rate at the time the member elected to connect time. Only payroll deductions may be made by pre-tax contributions under Section 414(h)(2) of the Internal Revenue Code. Lump sum payments, other than by plan-to-plan rollover transfer, shall be made with after-tax dollars.

(b)

Credited service shall be granted only for paid, full-time service with the City, except for the specific reasons provided for in this Section.

(c)

No credited service will be granted for unauthorized or unpaid leaves of absence. Credited service shall be granted for approved leaves of absence, including but not limited to certain military leaves and workers' compensation leaves under the conditions described in paragraphs (d) and (e) of this Section. The Board shall determine any questions arising under this Section.

(d)

Members who are in receipt of workers' compensation may only gain credited service by self-paying the contributions which would have been paid had the member been in a regular pay status. If a member is in receipt of partial pay in addition to workers' compensation benefits, the member shall have contributions picked up from the partial pay at the same rate as if the member was in a full pay status.

(e)

Members on approved leave of absence without pay status, and who are not terminated from employment, may elect to make employee contributions and receive credited service in the Plan for a period not to exceed six months.

(f)

Members with prior paid full time service with an agency of the City or as a Correctional Officer with the Florida Department of Corrections, which provides services for the benefit of the City, may also be entitled to purchase and connect such service with such agency. The agencies and their employees eligible shall be defined to include:

(1)

Duval County prior to consolidation;

(2)

Any agency of the judicial branch of government under the Florida Retirement System;

(3)

The State Attorney;

(4)

The Public Defender;

(5)

The Jacksonville Transportation Authority;

(6)

The Duval County School Board;

(7)

The former Duval County Hospital Authority;

(8)

The employees or officers of any Duval County constitutional officer who served under the Florida Retirement System;

(9)

Agriculture Department employees who participated in the Florida Retirement System;

(10)

The Jacksonville Port Authority;

(11)

The Jacksonville Aviation Authority;

(12)

The Medical Examiner's Office;

(13)

The Florida Department of Corrections, but only with respect to Correctional Officers as defined by F.S. § 112.531(2).

(g)

Active Members with eligible service in a Section 120.304(f) agency, who did not participate in, or who received a return of contributions from, another Plan, or who were not vested or who did not participate in such other Plan, shall be eligible to receive credit for that prior service if they meet the following requirements:

(1)

The employee must be a member of the Plan and meet all eligibility requirements.

(2)

The prior service must have been full-time service, defined by uniform Board rule.

(3)

The member shall pay to the Plan contributions for the prior service based on the full actuarial cost of the service purchased. Such contributions may be made by lump sum payment, roll over from another qualified retirement plan, through additional pick-up contributions, without interest, over a period not to exceed five years, or a combination of payment options. Only payroll deductions may be made by pre-tax contributions under Section 414(h)(2) of the Internal Revenue Code. Lump sum payments, other than by plan-to-plan rollover transfer, shall be made with after-tax dollars.

(4)

The cost and contributions due shall be determined by the actuary for the System.

(5)

The application for time connection shall be made prior to retirement.

(6)

No service upon which a time connection is based may be used for benefits under any other plan sponsored by any public employer including the City and the covered agencies.

(7)

No rollover or plan to plan transfer may violate any provision of the Internal Revenue Code or the regulations of the Department of the Treasury.

(8)

The Board of Trustees may promulgate administrative rules to implement this Section.

(h)

Notwithstanding Sections 120.304(f) and 120.304(g), any employee of the Jacksonville Port Authority, the Jacksonville Aviation Authority or the First Coast Metropolitan Planning Organization who is an active member of the Retirement Plan as of the effective date of this Chapter shall be eligible to purchase time service credit for any previous period of paid, full-time employment with the City and such agency of the City pursuant to and in accordance with Section 120.304(a) and shall not be subject to Sections 120.304(f) and 120.304(g).

(i)

In the event that a member transfers from a City department or agency which has its own retirement plan to a position covered in this Plan, without a break in service, the member shall be required to become a member of this Plan. The member shall receive credited service for the completed months and years served in the prior plan for computation of pension benefits.

(Ord. 2005-432-E, § 2; Ord. 2008-340-E, § 2; Ord. 2017-258-E, § 1)

Sec. 120.305. - Purchase of military service credit.

(a)

Members who are vested and eligible for retirement benefits may purchase up to two years of active duty military service time as credited service.

(b)

Service may be active duty wartime or nonwartime service, provided that the nonwartime service shall not exceed one year. All military service purchased under this Section must have occurred prior to any employment with the City.

(c)

Wartime service shall be for any period as determined by the Florida Legislature or by Presidential Executive Order, or by Congressional Resolution. Military service shall mean service in the United States Army, Navy, Air Force, Marines, Coast Guard, National Guard, NOAA or other branches of government service as provided in Title 38 of the United States Code.

(d)

Credited service under this Section may be purchased through the deposit of 20 percent of the member's earnable compensation. Payment of the required contributions shall be under the same conditions as provided for purchase of prior service credit.

(e)

Service credit for members on military leaves of absence shall be as provided in Section 116.501(a), Ordinance Code.

(f)

The Board shall promulgate rules for the implementation of this Section.

(Ord. 2005-432-E, § 2)

Sec. 120.306. - Time service retirement benefit; cost-of-living adjustments.

(a)

Effective as of December 1, 2008, a member may retire on the next pay period following: the date upon which the member completes 20 years of credited service, regardless of age; or, if earlier, the date upon which the member attains age 65 with five years of credited service. There shall be no mandatory retirement age.

(b)

A member's time service retirement benefit shall be determined and calculated as follows: for the member's first 20 years of credited service, the number of years of credited service shall be multiplied by three percent of final monthly compensation, up to a maximum of 60 percent of final monthly compensation. If the member has more than 20 years of credited service, then the number of years of credited service in excess of 20 years shall be multiplied by two percent of final monthly compensation, up to a maximum of 20 percent of final monthly compensation. In no event shall a member's time service retirement benefit under this Section exceed 80 percent of final monthly compensation.

(c)

A service retirement benefit shall be payable on bi-weekly basis. The benefit payments shall commence on the first payday coincident with or next following the member's actual retirement and shall continue until the death of the member.

(d)

Notwithstanding any provision of this Section to the contrary, there shall be a minimum retirement benefit of $25 multiplied by the number of whole years of credited service not to exceed 30 years. For members retiring on or after August 14, 1995, the minimum payment shall be increased at a compounded rate of four percent annually on each October 1. The minimum benefit for survivors of a retired member shall be 75 percent of minimum benefit provided in this Section.

(e)

For members of the Correctional Officer Retirement Plan retiring prior to December 1, 2006, each retiree or survivor shall be eligible to receive an annual cost-of-living adjustment equal to three percent of the retiree's or survivor's annual benefit, compounded annually. For all benefits commencing on or after October 1 of any year but before the following September 30, the commencement date of the cost-of-living adjustment shall be deemed to be the April 1 next following the October 1 of the year in which the benefit commences. The cost-of-living adjustment shall then be paid on the pay date for the first full pay period following April 1 occurring five years after the commencement of the COLA eligibility period.

(f)

For members of the Correctional Officer Retirement Plan retiring on or after December 1, 2006, beginning with the first full bi-weekly pay period after December 1, 2008, and for the first full bi-weekly pay period after each succeeding December 1, each retiree and survivor shall receive an annual cost-of-living adjustment equal to three percent of the retiree's or survivor's prior annual benefit amount actually received (exclusive of one-time bonuses or adjustments).

(g)

In addition to the cost-of-living benefit set forth in this Section, retirees and survivors shall receive a monthly supplemental benefit equal to $5 multiplied by the number of years of credited service. The benefit shall be not less than $25 per month or more than $150 per month.

(Ord. 2005-432-E, § 2; Ord. 2006-1229-E, § 2; Ord. 2008-983-E, § 2)

Sec. 120.307. - Surviving spouse benefits; children's benefits; orphans' benefits; dependent parents; funeral expenses.

(a)

Upon the death of a retired member, the surviving spouse shall receive 75 percent of the member's retirement benefit on the date of the retired member's death. The benefit shall be payable for the life of the surviving spouse and shall not be affected by remarriage. The surviving spouse benefit shall be increased by ten percent for each of the retiree's children under the age of 18 years, to a maximum of 100 percent of the retiree's pension. In order to be deemed a surviving spouse of a retired member under the terms of this Section, the spouse must have been married to and living with the retired member at the time of the retired member's death and have been married to the member for not less than 365 consecutive days immediately preceding the death of the member. A spouse shall be deemed living with the member if the member or spouse is confined to a nursing or hospital facility at the time of the member's death. Any factual questions arising from this definition shall be resolved by the Advisory Committee.

(b)

In the event of the death of an active member who is not eligible for a time service retirement, the surviving spouse, as defined in subsection (j), shall receive 75 percent of the pension the member would have received if the member had retired with a time service retirement based on a two percent annual accrual rate, without regard to the actual amount of accrued, credited service at the time of the member's death. If the active member is eligible for a time service retirement at the time of death, the benefit shall be calculated as if the deceased member was a retiree. The surviving spouse benefit shall be increased by ten percent for each of the retiree's children under the age of 18 years, to a maximum of 100 percent of the retiree's pension.

(c)

Unmarried children under the age of 18 years who are orphaned by the death of an employee or retiree shall receive the same benefit as a surviving spouse without children. The benefit shall continue until the earlier of the child's marriage or reaching age 18. In the case of a benefit paid to multiple children, the full amount shall continue to be paid to the orphan or orphans remaining eligible, in an amount not to exceed the maximum surviving spouse benefit provided in this plan. At age 18, any unpaid employee contributions shall be distributed as a lump sum to the eligible child or children in equal shares.

(d)

Unmarried children under the age of 18 years whose parent is a member or retiree of the Plan shall receive a benefit of $300 per child per month upon the death of the retiree or member, where no other survivorship benefit is available, but not to exceed the member's maximum benefit. The benefit shall continue until the earlier of the child's marriage or reaching age 18. At age 18, any unpaid employee contributions shall be distributed as a lump sum to the eligible child or children in equal shares.

(e)

In the event that any combination of survivorship benefits exceeds the maximum allowable under this Section, the available benefits shall be prorated among the eligible recipients in a manner that will not exceed the maximum available amount.

(f)

In the event that a father or mother of a deceased member is solely dependent on the member for support, the dependent parent(s) shall receive an aggregate benefit equal to 75 percent of the pension the member would have received if the member had retired with a time service retirement based on a two percent annual accrual rate, without regard to the actual amount of accrued, credited service at the time of the member's death and assuming no surviving children. The term dependent parent means that the dependent parent has no source of income other than the deceased member.

(g)

In the event of the death of a member with no survivor entitled to the receipt of a death benefit, the Plan will reimburse the estate of the member or the person paying the member's funeral expenses in an amount not to exceed $2,500 or one-half the accumulated member contributions, without interest, whichever is less. The remaining contributions will be paid to the estate of the member.

(h)

No application for benefits under this Section shall be valid unless filed with the Board within two years of the initial date of eligibility.

(i)

No survivor benefit shall be paid to any person who intentionally and unlawfully killed or participated in procuring the death of the retiree or member.

(j)

In order to be deemed a surviving spouse of an active employee under the terms of this Section, the spouse must have been married to the active member at the time of the active member's death.

(k)

Notwithstanding any other provision of this Section, benefits payable to a disabled child shall be payable for the life of the child subject to the conditions set forth in this Section. In order to qualify for benefits under this Section, a child or a guardian of the child must make proper application for benefits and secure the approval of the Advisory Committee and the Trustees. Such approval shall be based upon a comprehensive review of all documents and evidence pertaining to the nature, severity and continuance of the disabling condition. The standards for the disability determination shall generally conform to those employed by the Social Security Administration in conjunction with the payment of supplemental security income benefits for children with disabilities. For the purposes of this subsection, a child will be considered disabled if he or she has a physical or mental condition or combination of conditions that results in "marked and severe functional limitations." The disabling condition must last or be expected to last at least 12 months or be expected to result in the child's death.

(Ord. 2005-432-E, § 2)

Sec. 120.308. - Disability.

(a)

A member shall be disabled under the terms of the Plan if the member has suffered an illness, injury or disease which renders the member permanently and totally incapacitated, physically or mentally, from regular and continuous duty as a corrections. A disability benefit cannot be based on a condition which pre-existed membership in the Plan unless the nature of the injury or illness giving rise to the disability would reasonably be expected to give rise to a disability in a person without the pre-existing condition.

(b)

A member shall be eligible for a service-incurred disability retirement from the entry date into the Plan. A service-incurred disability retirement shall mean that the disability arose as a result of an act occurring, or presumed by law to have occurred, in the performance of service with the City.

(c)

A member shall be eligible for a nonservice incurred disability retirement upon the completion of five years of credited service. A nonservice incurred disability shall be an illness, injury, or disease, which did not occur as a result of an act in the performance of service with the City.

(d)

The service-incurred disability benefit shall be paid on a bi-weekly basis in an amount equal to 50 percent of the average salary earned by the member in the last three years immediately preceding disability retirement, including any period of leave of absence without pay.

(e)

The nonservice-incurred disability benefit for members with five years of credited service shall be paid on a bi-weekly basis in an amount equal to 25 percent of the average salary earned by the member in the last three years immediately preceding disability retirement, including any period of leave of absence without pay. For each additional year of credited service in excess of five, the benefit shall be increased at the rate of 2.5 percent to a maximum of 50 percent.

(f)

Disability benefits shall be paid bi-weekly. No benefit shall be paid until the Board of Trustees has actually considered and approved the member's entitlement to disability.

(g)

Disability retirement income shall continue until the death of the member, or recovery from disability or upon the death of a member, the benefit would be paid at 75 percent to the eligible surviving spouse as defined in Section 120.307(a).

(h)

The Board of Trustees shall have the continuing right to require disabled members to submit to a medical examination to determine that the member remains disabled. In order for a member to be deemed recovered, the Board-approved physician must recommend to the Board of Trustees that the member has sufficiently recovered to again engage in gainful employment and that the City has certified that it has a position within its work force available for the member consistent with the member's medical condition. The decision by the Board to examine some but not all disability retirees shall not be deemed an abuse of the Board's discretion.

(i)

Upon finding that a member is no longer disabled, the member shall return to work at the same rank and position previously occupied and shall be placed into the appropriate pay rate based on cost-of-living (COLA) allowances and merit increases which the member would have received but for the disability, as determined by the City. The member shall again become an active member of the Plan if reemployment is accepted. There shall be no creditable service for any period of time in which the member was receiving disability benefits from the System. If the member declines reemployment with the City, the member shall be deemed to have terminated employment on the date that the disability commenced. In such event, the member may receive a return of contributions unless, prior to that date, the member has received disability benefits equal to or greater than the amount of the accumulated contributions.

(j)

No member shall be eligible to receive disability benefits from the retirement plan during any period of time that the member is receiving a salary from the City. This Section shall not apply to the receipt of workers' compensation benefits.

(k)

Application for disability retirement shall be made on a form prescribed by the Board of Trustees. The member shall execute such medical releases as are necessary to permit the Board of Trustees to review the medical records needed to determine the question of disability and to discuss said records at a public meeting. Upon receipt of an application for disability, the Board shall appoint not less than one or more than three licensed physicians. The applicant for disability shall be required to submit to examination by the Board-designated physician(s). The Board-designated physician(s) shall report its findings to the Pension Advisory Committee and Board of Trustees, which shall include a determination, to the extent reasonably possible, of the origin of the disability, whether the disability is permanent, and whether the disability is total. In making that determination, the Board-designated physician(s) shall be bound by the definition of disability set forth in this Plan.

(l)

Upon receipt of the report of the Board-designated physician(s), the Pension Advisory Committee shall schedule a public hearing at which time the Committee shall review all reports of the Board-designated physician(s), together with any such documentary evidence as the applicant may wish to submit. The Committee shall make a preliminary determination as to whether the member is permanently and totally disabled based upon the written documentation presented. If the Committee does not recommend that the Board of Trustees grant the application based on the written documentation, it shall inform the member in writing of the reasons for the denial of the application. The member may, within 30 days of receipt of the Committee's preliminary denial, request a full evidentiary hearing before the Committee. Said hearing will be conducted consistent with the principles of due process and the rules of evidence generally applicable to administrative proceedings shall apply. The Committee shall have the power to issue subpoenas compelling the attendance of witnesses. At said hearing the applicant may present such oral and written evidence as the applicant deems necessary to establish its burden of proof. The applicant and the Committee shall have the right to examine and cross-examine all witnesses. The recommended decision of the Committee shall be based solely upon the evidence presented and the law applicable to this System. Following the conclusion of the hearing, the Committee shall render an opinion in writing setting forth the reasons for recommending the grant or denial of the benefit. The Committee's recommendation shall be reported to the Board, which makes the final determination. In the event that the disability benefit is denied, the applicant may make a formal appeal to the Board.

(m)

The Board of Trustees may prescribe rules of procedure to implement the provisions of this System relating to the conduct of disability hearings.

(n)

No member shall be granted a disability pension upon a determination by the Board that the disability resulted from:

(1)

Excessive and habitual use of drugs, intoxicants or narcotics;

(2)

Injury or disease sustained while willfully and illegally participating in fights, riots, civil insurrections or while committing a crime;

(3)

Injury or disease arising from service in the armed forces which entitle the member to disability benefits from the former employer;

(4)

Self-inflicted wounds or conditions;

(5)

Pre-existing physical conditions determined from the initial physical examination at time of entry into the Plan.

(o)

No disability benefit payable from this Plan shall be reduced by any outside income from any gainful employment or occupation engaged in after retirement.

(Ord. 2005-432-E, § 2)

Sec. 120.309. - Vesting, Termination, and Re-employment.

(a)

Except as otherwise provided in this Section, all rights to benefits under this Plan shall terminate when a member's employment terminates for any reason other than normal service retirement or disability retirement. Any member who completes five years of credited service and whose contributions remain in the Plan has a vested right to accrued benefits from the System. No member who has completed less than five years of credited service shall have a vested interest in any accrued benefit.

(b)

A member who leaves the service of the City prior to eligibility for normal service retirement, but who has completed five years of creditable service, shall be entitled to receive retirement benefits commencing at age 65 at a three percent accrual rate for each year of creditable service. Such benefits will be based on final monthly compensation and credited service as of the date of termination.

(c)

Except as set forth in subsections (d) and (e), if a retiree or separated vested member re-enters City service in a position covered by this Plan, benefit payments shall cease and the retiree or separated vested member shall again become an active member of the Plan. Upon subsequent retirement, the new pension benefit shall be computed with the original final monthly compensation and credit given for the additional service at the percentage accrual rate provided in Section 120.306(b). For periods of re-employment equal to or greater than four years, the final monthly compensation shall be computed based on the average monthly salary at the percentage rate provided in Section 120.306(b). In no instance shall total benefit exceed 80 percent of final monthly compensation.

(d)

The provisions of subsection (c) shall not apply to any retiree of this Corrections Officers Retirement Plan employed in a full-time, part-time, or temporary capacity by the City or any of its officers as (i) court bailiff, (ii) logistical and technical support officer, (iii) corrections bond custodian, (iv) chaplain, (v) stable manager, (vi) corrections mail coordinator, (vii) aviation supervisor, (viii) court bailiff supervisor, or (ix) Community Projects inmates work crew supervisor. Being employed in one of the positions identified in this subsection (d) shall not prevent a retiree of this Plan from continuing to receive such retirement benefits as would be available had the retiree not begun employment in one of the previously-mentioned positions. Being employed in one of the positions identified in this subsection (d) shall not permit nor require a retiree of this Plan to be a member of one of the pension plans created by Part II or III of this Chapter or a member of the pension plan created pursuant to Chapter 121. Being employed in one of the positions identified in this subsection (d) shall not permit a retiree to acquire any time service credit in any one of the pension plans created by Part II or III of this Chapter or created pursuant to Chapter 121.

(e)

The provisions of subsection (a) through (c) shall not apply to the re-employment of any retiree of the Corrections Officers Retirement Plan as a temporary corrections officer if:

(1)

the re-employment assists the emergency response associated with Emergency Executive Proclamation 2020-001 issued by the Mayor on March 13, 2020; and

(2)

the Sheriff has determined that the Emergency has caused, or is likely to cause, a significant reduction in the number of full-time corrections officers available for duty and temporary corrections officers are needed to provide sufficient law enforcement and corrections services to the City of Jacksonville.

The re-employment of such retirees shall be at the pleasure of the Sheriff and may continue until 60 days after the expiration of Emergency Executive Proclamation 2020-001, or any extension thereof.

To be eligible for re-employment, retirees must have a current Florida Department of Law Enforcement corrections officer certification.

Being employed as a temporary corrections officer shall not prevent a retiree of this plan from continuing to receive such retirement benefits as would be available had the retiree not begun employment as a temporary corrections officer. Being employed as a temporary corrections officer shall not permit or require a retiree of this plan to be a member of one of the pension plans created by Part II or III of this Chapter 120 or a member of the pension plan created pursuant to Chapter 121. Being employed as a temporary corrections officer shall not permit a retiree to acquire, accrue or exercise any of the rights or benefits provided to active and employed members of the City of Jacksonville General Employees Retirement Plan in any one of the pension plans created by Part II or III of this Chapter or created pursuant to Chapter 121 including but not limited to accrual of time service benefits or credits, the right to purchase time connections, disability benefits, death benefits, children's benefits, participation in BACKDROP, PLOP, etc.

(Ord. 2005-432-E, § 2; Ord. 2006-1229-E, § 2; Ord. 2007-1136-E, § 1; Ord. 2017-759-E, § 1; Ord. 2020-220-E, § 1)

Sec. 120.310. - Reserved.

Editor's note— Ord. 2011-235-E, § 1, amended the Code by repealing former § 120.310 in its entirety. Former § 120.310 pertained to transfer of terminal leave, and derived from Ord. 2005-432-E, § 2.

Sec. 120.311. - Amendment or termination of the plan.

(a)

It is the intention of the City and the Board that this pension plan shall constitute an irrevocable trust and no portion of the assets may revert to the employer until all other obligations of the Plan, including the payment to the last surviving member and beneficiary has been paid. No amendment shall result in members receiving lower benefits than those in effect on the date the member commenced service with the City.

(b)

In the event of termination or partial termination of the Plan, each participant's accrued pension benefit shall become nonforfeitable (100 percent vested) to the extent funded. At such time, the funds shall be appropriated and distributed as provided by law.

(c)

In the event that the Plan is terminated, the assets of the Plan shall first be distributed to retired members and their beneficiaries. If there is any asset value remaining after the apportionment to retired members and their beneficiaries, apportionment shall next be made to each member in the service who has completed at least five years of credited service and has contributed to the fund for at least five years and who is not otherwise eligible to retire. If there is any asset value after the apportionments to retirees and their beneficiaries and to vested members of the Plan, apportionment shall lastly be made in respect of each member in the service of the City in an amount not to exceed the total value of the member's contributions. In the event that there is any asset value remaining after full apportionment to all members and beneficiaries of the Plan, the excess, if any, shall revert to the City.

(Ord. 2005-432-E, § 2)

Sec. 120.312. - Distribution of marital interests in the plan.

(a)

In the event that the Board is served with a domestic relations order or other legal process purporting to require the payment of any portion of a member's benefit to another person as a result of dissolution of marriage, the Board shall cause such order to be reviewed to determine compliance with the provisions of the System. As federal law on qualified domestic relations orders does not apply to the Plan, the Plan shall not be required to honor such orders. The Plan shall only be required to honor income deduction orders as provided by Florida law. In the event that the Florida Legislature adopts laws in conflict with this Section, the State law shall control.

(Ord. 2005-432-E, § 2)

Sec. 120.313. - Miscellaneous.

(a)

The present or future right of a person to money in the Plan or to a retirement allowance, an optional allowance, a death benefit, the return of contributions, or any other right accrued or accruing under the provisions of this Plan shall not be assignable and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency law or any other process of law whatsoever, except with respect to alimony, child support or medical payments to a former spouse or minor child. A retiree may authorize deductions from the benefits in this Section for payment of City-sponsored health insurance or dues to retiree organizations of which the retiree is a member.

(b)

The Board shall have the power to examine the facts upon which any pension has been granted under any prior or existing law or which may be granted in the future or which has been obtained erroneously, fraudulently, or illegally for any reason. The Board is empowered to purge the pension rolls of any person who has been granted a pension under a prior or existing law, or who is hereafter granted a benefit under this Chapter if the granting of that pension is found to be erroneous, fraudulent, or illegal for any reason; and to reclassify any pensioner who has under any prior or existing law or who may under this Chapter be erroneously, improperly or illegally classified.

(c)

Should any change or error in retirement system records be discovered or result in any member or beneficiary receiving from the Retirement Plan more or less than he or she would have been entitled to receive had the records been correct, the Board shall have the power to correct such error and, as far as possible, adjust the payments in such a manner that the actuarial equivalent of a benefit to which such member or beneficiary was correctly entitled shall be paid.

(d)

If any member or beneficiary is a minor or is under any other legal disability, the Board of Trustees shall have the power to withhold payment of benefits until the Board is presented with proof satisfactory to the Board of the appointment of a guardian. If the Board becomes aware that any member or beneficiary is incapable of personally receiving and giving a valid receipt for any payment due under the Plan, the Board shall cause notice to be given to that participant or beneficiary of a hearing to determine whether said benefits should continue to be paid until the appointment of a guardian. During the pendency of any such hearing, however, the Board may continue to pay benefits to the member or beneficiary and that such payment shall be a complete discharge of any liability under the Plan for such payment.

(e)

No award of back pay entered by an arbitrator, the Civil Service Board, or a court shall have the effect of creating a liability in this Plan without said award having first been reviewed by the appropriate Advisory Committee and the actuarial impact of said award having been provided for by the payment of appropriate contributions to the Plan. No such award shall be enforceable to the extent it permits the payment of benefits not otherwise provided for in this Plan.

(Ord. 2005-432-E, § 2)

Sec. 120.314. - Deferred Retirement Option Program.

In general, and subject to the provisions of this Section, the Deferred Retirement Option Program, hereinafter referred to as the DROP, is a program under which an eligible member of the plan may elect to participate, deferring receipt of normal retirement benefits while continuing employment with the City without loss of any other employee benefits. Upon an eligible member's election to participate in the DROP, the years of credited service and final monthly compensation become frozen for purposes of determining pension benefits. Additional service beyond the date of entry into the DROP shall no longer accrue any additional benefits under the Retirement Plan. The deferred monthly retirement benefits under the DROP shall accrue in the Fund on behalf of the participant, plus interest compounded monthly, as provided in Section 120.314(c)(1), for the specified period of the DROP participation, as provided in Section 120.314(b)(2). Upon termination of employment, the participant shall receive the total DROP benefits, as provided in Section 120.314(c), and begin to receive the previously-determined normal retirement benefits.

(a)

Eligibility of member to participate in the DROP. All members who are eligible may elect participation in the DROP, provided members comply administratively with the rules and regulations established by the Board for the administration of the DROP.

(1)

A member who is eligible to receive normal retirement benefits under Section 120.306 may participate in the DROP, provided the member elects to participate within the time limits contained in Section 120.314(b)(2).

(2)

Effective December 1, 2006, election to participate is made on a date following the date on which the member first reaches the minimum normal retirement benefit after completion of 29 years of credited service.

(3)

Effective December 1, 2007, election to participate is made on a date following the date on which the member first reaches the minimum normal retirement benefit after completion of 25 years of credited service.

(4)

Effective December 1, 2008, election to participate is made on a date following the date on which the member first reaches the minimum normal retirement benefit after completion of 20 years of credited service.

(5)

An eligible member may elect to participate in the DROP by complying with the election process established by the Board.

(b)

Participation in the DROP.

(1)

Upon the effective date of the beginning date of the initial DROP period (12/1/06), and for 183 days thereafter an eligible Member may elect to participate in the DROP for a period not to exceed a maximum of 130 full bi-weekly pay periods (60 months) following the date on which the Member begins participation in the DROP. After the 183-day period, the following time limits will apply for eligibility to elect to participate in the DROP.

(2)

An eligible member may elect to participate in the DROP for a period not to exceed a maximum of 130 full bi-weekly pay periods (60 months) following the date on which the member begins participation in the DROP. The following time limits will apply for eligibility to elect to participate in the DROP: EXPAND Years of Credited Service at Time Election Maximum Pay Periods of Participation Maximum Months of Participation 20 but less than 30 years 130 bi-weekly 60 30 but less than 31 years 78 bi-weekly 36 31 but less than 32 years 52 bi-weekly 24

A member who reaches 32 years of service after the effective date of this Section and who fails to make an election prior to attaining 32 years of service shall forfeit all rights to participate in the DROP.

(3)

The beginning date of the DROP period shall be the first full bi-weekly day period after the first day of January, April, July or October subsequent to the date of election to participate, or as soon as administratively practical thereafter, and shall not exceed the DROP participation period, as provided in Section 120.314(b)(2).

(4)

Upon electing to participate in the DROP, the member shall submit on forms prescribed and required by the Board:

(i)

A written election to participate in the DROP.

(ii)

Selection of the DROP participation and retirement dates, which satisfy the limitation stated in Section 120.314(b)(2). Such retirement date shall be in a binding application for retirement with the employer establishing a deferred retirement date. The member may change the deferred retirement date within the limitations of Section 120.314(b)(2) on forms required by the Board.

(iii)

A written notification advising the member's employer of the date on which the DROP shall begin for the member.

(iv)

A properly completed DROP application for service retirement, as provided in this Section.

(v)

Any other forms required by the Board.

(5)

The DROP participant shall be a retiree under the Retirement Plan for calculation of increased pension benefits, unless otherwise prescribed herein, but not for the purposes of employment with the City, and the availability of employee benefits and programs related thereto. DROP participants shall additionally continue to be eligible to vote for members of the Advisory Committee for Corrections Officers.

(6)

Except as provided by Section 120.314(g) with respect to elected or appointed officials, election to participate in the DROP, once approved by the Board, is irrevocable.

(c)

Benefits payable under the DROP.

(1)

Effective with the date of DROP participation, the member's initial normal retirement benefit, including creditable service, final monthly compensation and the effective date of retirement shall be fixed. Such normal retirement benefits, together with annual cost of living adjustments, as provided in Section 120.306(f), and interest shall accrue monthly in the Fund for the benefit of the DROP participant. Such interest shall produce an annual rate of return equal to the rate of return earned on the investment portfolio held by the City of Jacksonville Retirement System, with a minimum of two percent. Interest calculations shall be administered in accordance with rules prescribed by the Board and interest distributions shall be credited using the 30-day month/360-day year method of calculation.

(2)

The normal retirement benefit and interest thereon shall continue to accrue in the DROP until the established termination date of the DROP, or 90 days after the participant actually retires and no longer is working as a Correctional Officer with the City of Jacksonville. Although individual DROP accounts shall not be established, a separate accounting of each participant's accrued benefits under the DROP shall be calculated and provided to participants annually by the Board.

(3)

At the conclusion of the participant's DROP and termination of employment with the City, the Board shall distribute the participant's total accumulated DROP benefits, as soon as administratively practical, subject to the following provisions:

(i)

The Board shall receive written verification by the participant's employer that such participant has terminated employment.

(ii)

The terminated DROP participant or if deceased, such participant's surviving spouse or representative, shall elect on forms provided by the Board to receive payment of the DROP benefits in accordance with one of the options listed below. For a DROP participant who fails to elect a method of payment within 90 days of termination of the DROP, interest shall no longer accrue in the Fund for the benefit of the DROP participant. For a surviving spouse of a current or former DROP participant who fails to elect a method of payment within 90 days of the date of death of the current or former DROP participant, interest shall no longer accrue in the Fund for the benefit of the DROP participant.

(a)

Lump sum. All accrued DROP benefits, plus interest, less withholding taxes remitted to the Internal Revenue Service, shall be paid to the DROP participant or surviving spouse.

(b)

Direct rollover. All accrued DROP benefits, plus interest, shall be paid from the DROP directly to the custodian of an eligible retirement plan as defined in Section 402(c)(8)(B) of the Internal Revenue Code. However, in the case of an eligible rollover distribution to the surviving spouse of the deceased participant, an eligible retirement plan is an individual retirement account or an individual retirement annuity as described in Section 402(c)(9) of the Internal Revenue Code. For purpose of this subsection, an eligible retirement plan shall also mean an annuity contract described in Section 403(b) of the Internal Revenue Code and an eligible plan under Section 457(b) of the Internal Revenue Code which is maintained by a State, political subdivision of a State, or any agency or instrumentality of a State or political subdivision of a State which accepts rollovers and which agrees to separately account for amounts transferred into such plan from this plan. However, in the case of an eligible rollover distribution to the surviving spouse of the deceased participant, an eligible retirement plan is an individual retirement account or an individual retirement annuity as described in Section 402(c)(9) of the Internal Revenue Code.

(c)

Partial lump sum. A portion of the accrued DROP benefits shall be paid to the DROP participant or surviving spouse, less withholding taxes remitted to the Internal Revenue Service, and the remaining DROP benefits shall either be transferred directly to the custodian of an eligible retirement plan as defined in Section 402(c)(8)(B) of the Internal Revenue Code or distributed in a monthly amount paid bi-weekly in the manner described in option (d) below. However, in the case of an eligible rollover distribution to the surviving spouse of a deceased participant, an eligible retirement plan is an individual retirement account or an individual retirement annuity as described in Section 402(c)(9) of the Internal Revenue Code. The proportions shall be specified by the DROP participant or surviving spouse.

(d)

Monthly distribution. The account balance shall be distributed in a monthly amount paid bi-weekly of substantially equal amounts until the DROP account is depleted over a stipulated number of bi-weekly periods to be selected by the participant or the surviving spouse, consistent with current corrections pension actuarial mortality tables, less withholding taxes remitted to the Internal Revenue Service. Such selection once made, cannot be changed, unless changed to option (a) or (b) above. The annual rate of interest to be factored into such distribution period shall be the actual rate of return with a floor of 0 percent and a ceiling of 14 percent.

(4)

The accrued benefits of any DROP participant and any contributions accumulated under such program shall not be subject to assignment, execution, attachment or to any legal process whatsoever, except for federal income tax levies.

(5)

DROP participants shall not be eligible for the disability retirement benefits provided in Section 120.308 during participation in the DROP.

(d)

Death benefits under the DROP.

(1)

Upon the death of a DROP participant, contributions to the DROP shall cease and the surviving spouse shall be entitled to apply for and receive the accrued benefits in the DROP and apply for surviving spouse benefits in accordance with the provisions of Section 120.307. If there is no surviving spouse, the accrued benefits in the DROP will be paid to the estate of the member as provided by law.

(2)

The normal retirement benefit accrued for the benefit of the DROP participant during the month of a participant's death shall be the final monthly benefit credited for such DROP participant.

(3)

Eligibility to participate in the DROP terminates upon the death of the participant. If the participant dies on or after the effective date of enrollment in the DROP, but prior to the first monthly benefit being credited to the DROP, retirement benefits shall be paid to the surviving spouse in accordance with the provisions of Section 120.307.

(e)

Cost of living adjustment. On the first full bi-weekly pay period after December 1, 2008, or as soon as administratively practical thereafter, and for the first full bi-weekly pay period after each succeeding December 1st, the deferred retirement benefit shall be increased pursuant to Section 120.306(f).

(f)

Supplemental benefit. DROP participants are not eligible for the supplemental benefit set forth in Section 120.306(g) until termination of employment is effectuated.

(g)

DROP rescission for elected or appointed officials or appointed employees. The irrevocable nature of DROP participation shall not apply in the case of a DROP participant who becomes an elected or appointed official or an appointed employee with such member being granted the option of rescinding DROP participation within one calendar year of election or appointment. In such event of DROP rescission, the elected or appointed official or the appointed employee shall be granted pension service credit for DROP participation periods, the City shall be assessed the amount of City contributions that otherwise would have been remitted to the Fund by the City during the DROP period, the member will be required to make the contributions in accordance with the provisions of Section 120.306, and the retirement leave account frozen and removed shall be restored. All deposits plus interest into the DROP account will revert to the Fund. Such appointed and elected officials or appointed employees shall be permitted to re-enroll into the DROP at a later date. However, members who were former DROP participants and who retired while in such status shall not be eligible to rejoin membership into the Fund.

(h)

Contributions and deductions.

(1)

The participant's employer shall not be required to make any contributions to the DROP.

(2)

A deduction of two percent per annum shall be made from all base pay and service raise of DROP participants as the contribution from the participant during the period of DROP participation, with such amount being credited to the Fund.

(3)

Members of the Fund may be removed from the regular City payroll for a variety of reasons. Such circumstances may include various forms of requested leaves of absence without pay, suspensions without pay, terminations under appeal and removals pending the outcome of criminal charges. DROP participants who may be removed from the regular City payroll for all or a portion of a particular pay period(s), which is not covered by the use of leave balances, are unable to comply with the obligation to make the payment of the two percent per annum deduction from earnable compensation. During such period of noncompliance (except in the case of military leaves of absence which shall be governed in accordance with F.S. § 115.12), the participant shall experience an interruption in the bi-weekly remittances to the participant's DROP account and such period of interruption shall count against the selected period of DROP participation. However, in the event that any such period of involuntary leave without pay was reversed and such period was accompanied by the award of back-pay from which the required DROP contribution is assessed, the DROP remittances which were interrupted during such period shall be credited to the participant's DROP account, along with any deferred interest related thereto.

(i)

Forfeiture of retirement benefits. Nothing in this Section shall be construed to remove DROP participants from the scope of Fla. Const. Article II, Section 8(d), or F.S. § 112.3173. A DROP participant who commits a specified felony offense while employed will be subject to forfeiture of all retirement benefits, including DROP benefits, pursuant to those provisions of law.

(j)

Administration of the DROP. The Board shall make such rules as are necessary for the effective and efficient administration of the DROP. Neither the Board nor staff of the Fund shall advise members of the federal tax consequences of an election related to the DROP. A copy of the rules and regulations governing the DROP shall be on file with the Council Secretary and with the Board.

(k)

Retirement leave account distribution during the DROP. Members who have a balance in their retirement leave account will have the account paid in accordance with Section 116.606(a), (b), and (c).

(Ord. 2006-1229-E, § 2; Ord. 2007-1112-E, § 2; Ord. 2008-983-E, § 2; Ord. 2017-258-E, § 1)

Sec. 120.315. - Continuation of Benefits.

The City and any authorized certified bargaining agent shall have all of the rights and be subject to the provisions of F.S. Ch. 447, including but not limited to the requirement for negotiations, the term limitation set forth in F.S. § 447.309(5), and the impasse process, provided however, that the City shall not unilaterally alter Members' pension benefits, as authorized by F.S. § 447.403(4)(d), for a period of three years from October 1, 2017, and such period shall automatically extend for two additional three-year periods, and one additional one-year period, under the following circumstances: if the fiscal condition of the economy for the City of Jacksonville, as determined and certified in writing by the City's Director of Finance and Administration, within 90 days after the termination of the first three-year period, and, if applicable, within 90 days after the termination of the second three-year period, and, if applicable, within 90 days after the termination of the third three-year period, meets the all of the following requirements:

(i)

The average annual growth rate of the City of Jacksonville's total share of ad valorem revenues collected for Duval County for the three most recent fiscal years is no less than 2.5 percent, as provided in writing by the City's Director of Finance and Administration. For the purposes of this subsection, during a particular fiscal year, if (1) there is a millage rate reduction, and (2) the 2.5 percent threshold is not met, that particular fiscal year shall not be counted as part of the three most recent fiscal years' average and instead on the remaining non-effected fiscal years shall be used to calculate the average annual growth; and

(ii)

The time-weighted, average annual gross return on investment for the General Employees Pension Fund for Correctional Officers for the three most recent fiscal years is no less than the actuarial assumed rate of return, less one percent, as provided in writing by the General Employees Pension Fund investment consultant.

(iii)

The three most recent fiscal years shall be the three fiscal years terminating prior to or during the 90-day period(s) noted above;

(iv)

The automatic extension referenced above shall not take effect if the certified collective bargaining agent declares an impasse on retirement benefits; and

(v)

The average annual growth rate in ad valorem taxes, provided for in subsection (i) above, shall be the actual cash collections, as determined by the Chief Financial Officer within 90 days of the end of the prior fiscal year.

(Ord. 2017-258-E, § 1)

PART IV. - EXCESS BENEFIT ARRANGEMENT

Sec. 120.401. - Excess benefit arrangement.

(a)

General. The City of Jacksonville herby creates and establishes a qualified excess benefit arrangement pursuant to Section 415(m) of the Internal Revenue Code of 1986, as amended (the "Code"). The excess benefit arrangement shall be separate from and in addition to both the City of Jacksonville General Employees' Retirement Plan and the City of Jacksonville Corrections Officers' Retirement Plan (collectively, the "Retirement System").

(b)

Purpose. The purpose of the excess benefit arrangement is to pay to eligible payees of the Retirement System certain benefits that exceed, and otherwise would be reduced by, the limitations on benefits imposed by Section 415(b) of the Code.

(c)

Eligibility. Any payee under the Retirement System shall be eligible to participate in the excess benefit arrangement whenever his or her earned benefit under the Retirement System exceeds the maximum benefit limit imposed by Section 415(b) of the Code. Participation in the excess benefit arrangement shall continue for as long as the payee's earned benefit under the Retirement System is reduced by the application of the maximum benefit limit imposed by Section 415(b) of the Code.

(d)

Benefit.

(1)

During the period of eligibility, each eligible payee of the Retirement System shall be entitled to receive an amount equal to the difference of the gross amount of the bi-weekly retirement benefit the payee would have been entitled to receive under the Retirement System if not for the limitations on benefits imposed by Section 415(b) of the Code and the gross amount of the reduced bi-weekly retirement benefit actually paid to the payee under the Retirement System, as determined by an actuary engaged by the Pension Board of Trustees.

(2)

Benefits due under the excess benefit arrangement shall be paid by the City of Jacksonville directly to each payee. All payments under the excess benefit arrangement shall be made on or about the same date the City of Jacksonville pays the payee his or her regular bi-weekly retirement or survivor benefit due under the Retirement System and shall be made by separate transaction.

(3)

The benefits provided by this Section shall not be subject to execution, garnishment, attachment or any other process of any court with respect to a payee under the excess benefit arrangement, except for income deduction orders and federal income tax levies.

(e)

Administration.

(1)

The City of Jacksonville hereby appoints the Pension Board of Trustees to administer the excess benefit arrangement for and on behalf of the City of Jacksonville.

(2)

The Pension Board of Trustees shall compile and maintain all records necessary or appropriate for the administration of the excess benefit arrangement pursuant to this Section.

(f)

Funding.

(1)

The Pension Board of Trustees, in consultation with an actuary engaged by the Pension Board of Trustees for purposes of this Section, shall advise the City of Jacksonville of the annual amount necessary to fund and pay benefits pursuant to this Section and such other information as the City of Jacksonville reasonably deems necessary.

(2)

All amounts required to be funded and paid by the City of Jacksonville pursuant to this Section shall be maintained in a separate account and shall not be co-mingled with any asset of the Retirement System.

(3)

If additional retirements during the then current year result in the need for additional funds by the City of Jacksonville, as determined by the Pension Board of Trustees in consultation with an actuary engaged by the Pension Board of Trustees for purposes of this Section, then the Pension Board of Trustees shall promptly inform the City of Jacksonville of the same by, and the City of Jacksonville shall promptly fund such additional amounts.

(4)

The City of Jacksonville shall be solely responsible for funding the excess benefit arrangement. No payee contributions or deferrals, directly or indirectly, by election or otherwise shall be made or allowed under the excess benefit arrangement. The excess benefit arrangement shall be unfunded within the meaning of federal tax law.

(5)

The City of Jacksonville shall pay the amounts required by this Section at the same time it pays the normal cost to the Retirement System.

(g)

Actuarial Gain. Any actuarial gain resulting from this Section shall be credited to the City of Jacksonville's normal cost in the next following actuarial valuation.

(Ord. 2005-859-E, § 1)

PART V. - DEFINED CONTRIBUTION PLANS[2]

There is hereby created a defined contribution retirement system which shall include a General Employees Defined Contribution Plan, a Corrections Employees Defined Contribution Plan, and a Police and Fire Employees Defined Contribution Plan. The system and these plans shall be separate from the retirement system identified in Part I-IV of this Chapter and from the retirement system created by Chapter 121. All provisions of this Part V shall be administered and managed by the City.

Footnotes: --- (2) ---

Editor's note— Ord. 2017-258-E, § 1, amended the Code by repealing former Pt. V, §§ 120.501—120.510, and adding a new Pt. V. Former Pt. V pertained to the general employees defined contribution plan, and derived from Ord. 2007-1136-E; Ord. 2008-1092-E; Ord. 2009-336-E; Ord. 2013-167-E; and Ord. 2015-311-E.

SUBPART A. - GENERAL EMPLOYEES DEFINED CONTRIBUTION PLAN

Sec. 120.501A. - Plan established.

There is hereby created a General Employees Defined Contribution Plan, known as the GEDC plan, effective as of the beginning of the first full pay period after October 1, 2009.

(Ord. 2017-258-E, § 1)

Sec. 120.502A. - Membership.

(a)

Membership shall be comprised of all general employees of the City as defined in Section 120.201(m), Ordinance Code, hired on or after October 1, 2017, including those JEA employees actively employed as of the effective date of the Recapitalization Event.

The membership shall also include any employee hired prior to October 1, 2017 who pursuant to the provisions of Section 120.202 elects to become a member of the GEDC.

(Ord. 2017-258-E, § 1; Ord. 2019-566-E, § 1)

Sec. 120.503A. - Contributions.

Member contributions shall be eight percent of earnable compensation as defined in Section 120.201(l) of the Ordinance Code. Member contributions shall be picked-up rather than contributed as provided in Section 414(h) of the Internal Revenue Code. A portion of the Member contributions, equal to 0.3 percent, shall be used to fund the disability and survivor benefits outlined below. The City shall contribute the minimum amount necessary to maintain the City's exemption from Social Security, but not less than 7.7 percent of earnable compensation. On and after October 1, 2017, the City's contribution shall be 12 percent. A portion of the City contributions, equal to 0.3 percent, shall be used to fund the disability and survivor benefits outlined below; however, the City shall contribute such additional sums, as necessary, to fund the disability and survivor benefits on a sound actuarial basis. Members may make additional contributions on an after-tax basis, to the extent permitted by law. Members may also rollover to the GEDC plan benefits accrued in other qualified plans consistent with the then prevailing provisions of the Internal Revenue Code. Members actively employed by JEA on the effective date of a Recapitalization Event, as defined in Section 120.201(hh), who are members of the GEDC Plan, will be deemed separated from service on that date and deemed fully vested in their employer contributions and earnings credited to that date pursuant to Section 120.504A. JEA will make no further contributions to the GEDC plan on behalf of such members following a Recapitalization Event.

(Ord. 2017-258-E, § 1; Ord. 2019-566-E, § 1)

Sec. 120.504A. - Vesting.

Upon leaving employment, GEDC plan members will be entitled to 100 percent of their own contributions and earnings and will be entitled to the following percentages of the employer's contribution and earnings after the indicated number of years of service: Members of the GEDC plan shall be 25 percent vested upon the conclusion of two years of credited service and shall vest an additional 25 percent each year thereafter until fully vested upon the conclusion of five years of credited service. Provided, however, that Members actively employed by JEA on the effective date of a Recapitalization Event shall be deemed fully vested in their employer contributions and earnings credited to that date.

(Ord. 2017-258-E, § 1; Ord. 2019-566-E, § 1)

Sec. 120.505A. - Administration of the GEDC Plan.

The City shall be responsible for the Administration of the GEDC plan. Notwithstanding any other provision of this Chapter, the Board of Trustees for the retirement system shall not manage or administer the GEDC Plan.

(Ord. 2017-258-E, § 1)

Sec. 120.506A. - Investment of Member Accounts; New Employee Orientation; Member Education.

(a)

All members of the GEDC plan shall have individual member accounts. Member accounts shall be invested in one or more commingled or mutual funds selected from a list chosen by the City. At least one such fund shall be a diversified model portfolio, with automatic rebalancing and limited volatility, and designed to minimize risk of loss. The City shall have continuing due diligence responsibility in the selection, monitoring and replacement of investment options, but not for the individual investment decisions of GEDC plan participants.

(b)

As part of New Employee Orientation, the City shall provide formal, intensive training, on such terms as the City deems most efficient, on the rights, benefits, and obligations of membership in a DB and GEDC plan to enable members to make a knowing and meaningful election as to the retirement program which best serves the needs of the individual employee. The City shall also provide ongoing training as part of the NEO program to reinforce the needed employee education. In addition, the City shall provide, on an ongoing basis, educational programs for members on investments and financial planning. Any failure by the City to provide training shall not result in any liability on the part of the City to any employee.

(c)

The System and the City shall not incur any liability arising from the investment decisions of GEDC plan participants or from the above education and training programs.

(d)

The City shall, at its own expense, arrange for all Members of the GEDC to meet with a financial advisor to provide financial counseling three times during each Member's career. These meetings will occur: (1) when the Member is in the initial 90 days of employment; (2) upon the Member's completion of ten years of employment; and (3) upon the Member's completion of 20 years of employment.

(Ord. 2017-258-E, § 1)

Sec. 120.507A. - Loans and Qualified Domestic Relations Orders Prohibited; Exemption from Claims of Creditors.

(a)

Member loans shall not be permitted.

(b)

Qualified domestic relations orders (QDRO) for the distribution of marital property rights shall not be permitted; provided, however, this shall not alter the provisions of Florida law relating to equitable distribution.

(c)

All member accounts shall be exempt from claims of creditors, bankruptcy, insolvency, or legal process of any kind, except for the payment of alimony, child support, or federal tax levies as provided by law. Member accounts may not be pledged or assigned; provided however, retired members may elect direct payment of a portion of the accrued retirement benefit, upon separation from service, to the payment of any City-sponsored benefit program, or for the payment of dues for the retired employees association.

(Ord. 2017-258-E, § 1)

Sec. 120.508A. - Reserved.

Sec. 120.509A. - Participation in City's Health Insurance Plan.

Retiree members of the GEDC plan shall be entitled to participate in the City's health insurance plan in the same manner as a retiree of the DB plan, beginning on the next pay period following the date upon which the GEDC plan member retires from the City after attaining (a) age 50 with 20 years of credited service, (b) age 65 with five years of credited service, or (c) any age with 25 years of credited service.

(Ord. 2017-258-E, § 1)

Sec. 120.510A. - Compliance with the Internal Revenue Code.

The GEDC plan shall at all times be maintained as a qualified plan in accordance with the applicable provisions of the Internal Revenue Code. Contributions shall not exceed the maximum amount permitted under Section 415 of the Internal Revenue Code. Section 120.104 of the Ordinance Code, to the extent applicable, is incorporated by reference.

(Ord. 2017-258-E, § 1)

Sec. 120.511A. - Surviving spouse benefits; children's benefits; orphans' benefits; dependent parents; funeral expenses.

(a)

In the event of the death of a fully vested, active, permanent member of the DC plan, the surviving spouse, as defined in subsection (i), shall receive 75 percent of 60 percent of the member's earnable compensation at the time of the member's death.

(b)

Unmarried children under the age of 18 years who are orphaned by the death of an employee shall receive the same benefit as a surviving spouse without children. The benefit shall continue until the earlier of the child's marriage or reaching age 18, unless the child is disabled, in which case the benefits will continue for the life of the child or during the presence of the disabling condition. In the case of a benefit paid to multiple children, the full amount shall continue to be paid to the orphan or orphans remaining eligible, in an amount not to exceed the maximum surviving spouse benefit provided in this Plan. At age 18, any unpaid employee contributions shall be distributed as a lump sum to the eligible child or children in equal shares.

(c)

If there is a surviving spouse, who chooses to receive the spousal benefit described above, unmarried children under the age of 18 years shall receive a benefit of $300 per child per month upon the death of the member, where no other survivorship benefit is available. The benefit shall continue until the earlier of the child's marriage or reaching age 18. At age 18, any unpaid employee contributions shall be distributed as a lump sum to the eligible child or children in equal shares.

(d)

In the event that any combination of survivorship benefits exceeds 80 percent of the deceased member's earnable compensation, the available benefits shall be prorated among the eligible recipients in a manner that will not exceed 80 percent of the deceased member's earnable compensation. That said, the survivor benefit will include an annual three percent cost of living adjustment, to begin five years after the commencement of the survivor benefit, to be applied each January 1.

(e)

In the event that a father or mother of a deceased member is solely dependent on the member for support, the dependent parent(s) shall receive the same benefit as a surviving spouse, outlined in subsection (a) above, only if there is no surviving spouse and no qualifying surviving children. The term dependent parent means that the dependent parent has no source of income other than the deceased member.

(f)

In the event of the death of a member with no survivor entitled to the receipt of a death benefit, the Plan will reimburse the estate of the member or the person paying the member's funeral expenses in an amount not to exceed $2,500 or one-half the accumulated member contributions, without interest, whichever is less. The remaining contributions will be paid to the estate of the member.

(g)

No application for benefits under this Section shall be valid unless filed within two years of the initial date of eligibility.

(h)

No survivor benefit shall be paid to any person who intentionally and unlawfully killed or participated in procuring the death of the retiree or member.

(i)

In order to be deemed a surviving spouse of a member under the terms of this Section, the spouse must have been married to and living with the member at the time of the member's death and have been married to the member for not less than 365 consecutive days immediately preceding the death of the member. A spouse shall be deemed living with the member if the member or spouse is confined to a nursing or hospital facility at the time of the member's death.

(j)

If death benefits are paid to any survivor, such benefits will be in lieu of the payment of the employee's contributions and earnings in the GEDC and any employer contributions and earning to which the employee had a vested right.

(k)

In the event of the death of a non-fully vested, active, permanent full-time employee or in the event that a fully vested employee's qualified survivors decline the benefits described above, the deceased employee's designated beneficiaries will receive the employee's contributions and earnings to the GEDC plan and any employer contributions and earnings to which the employee had a vested right.

(Ord. 2017-258-E, § 1)

Sec. 120.512A. - Disability Benefits.

(a)

A member shall be disabled if the member has suffered an illness, injury or disease which renders the member permanently and totally incapacitated, physically or mentally, from regular and continuous duty as an employee or officer of the City. The term "regular and continuous" as used in the foregoing sentence shall not require that an employee or officer be able to perform all of the duties set forth in the job description, but shall mean the ability to perform work within the employee or officer's classification for which a position has been made available by the City, consistent with the physical or mental health of the member. A disability benefit cannot be based on a condition which pre-existed membership in the GEDC plan unless the nature of the injury or illness giving rise to the disability would reasonably be expected to give rise to a disability in a person without the pre-existing condition.

(b)

Disability Benefits shall be provided as follows:

(1)

In the case of a disability arising from an accident, injury or illness incurred in the performance of service with the City, the long-term disability benefits shall be equal to 50 percent of the member's earnable compensation at the time of disability. There shall be no minimum period of service for a service-related disability.

(2)

In the case of a disability not arising from an accident, illness or injury arising in the performance of service with the City, the long-term disability benefit shall be equal to 25 percent of the member's earnable compensation at the time of disability. In the event the member has more than five years of service, the non-service related disability benefit shall be increased by two and one-half percent of the member's earnable compensation for each year after five years of service to a maximum of 50 percent. There shall be no non-service-related disability benefits for members with less than five years of service at the time of disability. In that event, members separating from service shall receive a return of employee contributions.

(3)

Long-term disability benefits shall be payable until the earlier of recovery and return to work or death. Upon the death of a member receiving a long-term disability benefit, the benefit shall be paid at 75 percent to the eligible surviving spouse as defined in Section 120.511A, in lieu of the payment of the employee's contributions and earnings in the GEDC to which the employee had a vested right.

(4)

No member shall be eligible to receive disability benefits during any period of time that the member is receiving a salary from the City. Disability benefits shall not be reduced because the member is or was receiving workers' compensation payments unless the sum of the disability benefits and workers' compensation exceed the compensation on which workers' compensation benefits are computed. In such case, the disability benefits shall be reduced to an amount which when added to the workers' compensation payment will equal the compensation on which workers' compensation benefits are computed.

(5)

Disability benefits shall be paid bi-weekly. No benefit shall be paid until the City has actually considered and approved the members' entitlement to disability.

(6)

No disability benefit payable from the Disability Program shall be reduced by any outside income from any gainful employment or occupation engaged in while disabled.

(c)

No member shall be granted a disability benefit upon a determination that the disability resulted from:

(1)

Excessive and habitual use of drugs, intoxicants or narcotics;

(2)

Injury or disease sustained while willfully and illegally participating in fights, riots, civil insurrections or while committing a crime;

(3)

Injury or disease arising from service in the armed forces which entitles the member to disability benefits from the former employer;

(4)

Self-inflicted wounds or conditions.

(Ord. 2017-258-E, § 1)

SUBPART B. - CORRECTIONS EMPLOYEES DEFINED CONTRIBUTION PLAN

Sec. 120.501B. - Plan established.

There is hereby created a Corrections Employees Defined Contribution Plan, known as the CDC plan, effective as of October 1, 2017.

(Ord. 2017-258-E, § 1)

Sec. 120.502B. - Membership.

(a)

Membership shall be comprised of all Corrections Officer employees, as defined in Section 120.301(j), who are not enrolled in another City-sponsored retirement program. All Corrections Officer employees hired on or after October 1, 2017, must be a Member of the CDC.

(b)

The City shall create and manage employee education programs, including the right to hire third party educational services.

(c)

The System and the City shall not incur any liability arising from the investment decisions of CDC plan participants or from the above education and training programs.

(Ord. 2017-258-E, § 1)

Sec. 120.503B. - Contributions.

Member contributions shall be ten percent of earnable compensation as defined in Section 120.301(m) of the Ordinance Code. Member contributions shall be picked-up rather than contributed as provided in Section 414(h) of the Internal Revenue Code. A portion of the Member contributions, equal to 0.3 percent, shall be used to fund the disability and survivor benefits outlined below. The City shall contribute 25 percent of earnable compensation. A portion of the City contributions, equal to 0.3 percent, shall be used to fund the disability and survivor benefits outlined below; however, the City shall contribute such additional sums, as necessary, to fund the disability and survivor benefits on a sound actuarial basis. Members may make additional contributions on an after-tax basis, to the extent permitted by law. Members may also rollover to the CDC plan benefits accrued in other qualified plans consistent with the then prevailing provisions of the Internal Revenue Code. General administrative plan fees will be paid by the City. Fees charged to individual accounts will be paid by the individuals.

(Ord. 2017-258-E, § 1)

Sec. 120.504B. - Vesting.

Upon leaving employment, CDC plan members will be entitled to 100 percent of their own contributions and earnings and will be entitled to the following percentages of the employer's contribution and earnings after the indicated number of years of service: Members of the CDC plan shall be 25 percent vested upon the conclusion of six months of credited service; shall be vested 50 percent vested upon conclusion of one year of credited service; shall be vested 75 percent upon conclusion of two years of credited service; and shall be fully vested upon the conclusion of three years of credited service.

(Ord. 2017-258-E, § 1)

Sec. 120.505B. - Administration of the CDC Plan.

The City shall be responsible for the Administration of the CDC plan. However, with input from the bargaining unit, the City will select, through its procurement process, and manage a third-party fund manager. Notwithstanding any other provision of this Chapter, the Board of Trustees for the retirement system shall not manage or administer the CDC Plan.

(Ord. 2017-258-E, § 1)

Sec. 120.506B. - Investment of Member Accounts; New Employee Orientation; Member Education.

(a)

All members of the CDC plan shall have individual member accounts. Member accounts shall be invested in one or more commingled or mutual funds selected from a list chosen by the City. At least one such fund shall be a diversified model portfolio, with automatic rebalancing and limited volatility, and designed to minimize risk of loss. The City shall have continuing due diligence responsibility in the selection, monitoring and replacement of investment options, but not for the individual investment decisions of CDC plan participants.

(b)

The City shall, at its own expense, arrange for all Members of the CDC to meet with a financial advisor to provide financial counseling three times during each Member's career. These meetings will occur: (1) when the Member is in the initial training academy; (2) upon the Member's completion of ten years of employment; and (3) upon the Member's completion of 20 years of employment.

(c)

The City shall not incur any liability arising from the investment decisions of CDC plan participants or from the above education and training programs.

(Ord. 2017-258-E, § 1)

Sec. 120.507B. - Loans and Qualified Domestic Relations Orders Prohibited; Exemption from Claims of Creditors.

(a)

Member loans shall not be permitted.

(b)

Qualified domestic relations orders (QDRO) for the distribution of marital property rights shall not be permitted; provided, however, this shall not alter the provisions of Florida law relating to equitable distribution.

(c)

All member accounts shall be exempt from claims of creditors, bankruptcy, insolvency, or legal process of any kind, except for the payment of alimony, child support, or federal tax levies as provided by law. Member accounts may not be pledged or assigned; provided however, retired members may elect direct payment of a portion of the accrued retirement benefit, upon separation from service, to the payment of any City-sponsored benefit program, or for the payment of dues for the retired employees association.

(Ord. 2017-258-E, § 1)

Sec. 120.508B. - Continuation of Benefits.

The City and any authorized certified bargaining agent shall have all of the rights and be subject to the provisions of F.S. Ch. 447, including but not limited to the requirement for negotiations, the term limitation set forth in F.S. § 447.309(5), and the impasse process, provided however, that the City shall not unilaterally alter Members' retirement benefits, as authorized by F.S. § 447.403(4)(d), for a period of three years from October 1, 2017, and such period shall automatically extend for two additional three-year periods, and one additional one-year period, under the following circumstances: if the fiscal condition of the economy for the City of Jacksonville, as determined and certified in writing by the City's Director of Finance and Administration, within 90 days after the termination of the first three-year period, and, if applicable, within 90 days after the termination of the second three-year period, and, if applicable, within 90 days after the termination of the third three-year period, meets the all of the following requirements:

(a)

The average annual growth rate of the City of Jacksonville's total share of ad valorem revenues collected for Duval County for the three most recent fiscal years is no less than 2.5%, as provided in writing by the City's Director of Finance and Administration. For the purposes of this subsection, during a particular fiscal year, if (1) there is a millage rate reduction, and (2) the 2.5% threshold is not met, that particular fiscal year shall not be counted as part of the three most recent fiscal years' average and instead on the remaining non-effected fiscal years shall be used to calculate the average annual growth; and

(b)

The time-weighted, average annual gross return on investment for the General Employees Pension Fund for Correctional Officers for the three most recent fiscal years is no less than the actuarial assumed rate of return, less 1%, as provided in writing by the General Employees Pension Fund investment consultant.

(c)

The three most recent fiscal years shall be the three fiscal years terminating prior to or during the 90-day period(s) noted above;

(d)

The automatic extension referenced above shall not take effect if the certified collective bargaining agent declares an impasse on retirement benefits; and

(e)

The average annual growth rate in ad valorem taxes, provided for in subsection (i) above, shall be the actual cash collections, as determined by the Chief Financial Officer within 90 days of the end of the prior fiscal year.

(Ord. 2017-258-E, § 1)

Sec. 120.509B. - Participation in City's Health Insurance Plan.

Retiree members of the CDC plan shall be entitled to participate in the City's health insurance plan in the same manner as a retiree of the DB plan, beginning on the next pay period following the date upon which the CDC plan member retires from the City after attaining (a) age 65 with five years of credited service, or (b) any age with 20 years of credited service.

(Ord. 2017-258-E, § 1)

Sec. 120.510B. - Compliance with the Internal Revenue Code.

The CDC plan shall at all times be maintained as a qualified plan in accordance with the applicable provisions of the Internal Revenue Code. Contributions shall not exceed the maximum amount permitted under Section 415 of the Internal Revenue Code. Section 120.104 of the Ordinance Code, to the extent applicable, is incorporated by reference.

(Ord. 2017-258-E, § 1)

Sec. 120.511B. - Surviving spouse benefits; children's benefits.

(a)

In the event of the death of an active full-time Corrections Officer, the surviving spouse, as defined in subsection (i), shall receive 75 percent of 60 percent (plus an additional two percent for each full year of service in excess of 20 years) of the Member's average salary received in the 52 pay periods immediately preceding the member's death. The surviving spouse shall be entitled to a three percent cost of living adjustment to be administered each January 1.

(b)

If there is no surviving spouse, unmarried children under the age of 18 years shall receive the greater of $200 a month or a proportionate share of the same benefit as a surviving spouse without children. The benefit shall continue until the earlier of the child's marriage or reaching age 18. If there is no surviving spouse, unmarried children over the age of 18 who are qualified students shall receive $200 a month. The benefit shall continue until the earlier of the child's marriage or reaching the age of 22.

(c)

If there is a surviving spouse, unmarried children under the age of 18 years, or up to 22 years if a qualified student, shall receive a benefit of $200 per child per month upon the death of the member, where no other survivorship benefit is available. The benefit shall continue until the child's marriage or upon reaching age 18, unless they are a qualified student, wherein the benefit shall continue until reaching age 22, unless the child is disabled, in which case, the benefits will continue for the life of the child or during the presence of the disabling condition. The children shall be entitled to a three percent cost of living adjustment applied each January 1.

(d)

If the total surviving benefit of a spouse and children exceeds 60 percent (plus an additional two percent for each full year of service in excess of 20 years), of the average salary received by the Member for the 52 pay periods immediately preceding the Member's death, the survivors' benefits shall be prorated.

(e)

The survivor benefit will include a supplemental benefit of $5 per month for each year of actual credited service, which will be no less than $25 and no more than $150 per month.

(f)

In the event that a deceased employee's qualified survivors decline the benefits described above, the deceased employee's designated beneficiaries will receive the employee's contributions and earnings in the CDC plan, and any employer contributions and earning to which the deceased employee had a vested right.

(g)

No survivor benefit shall be paid to any person who intentionally and unlawfully killed or participated in procuring the death of the retiree or member.

(h)

In order to be deemed a surviving spouse of an active employee under the terms of this Section, the spouse must have been married to the member at the time of the member's death.

(i)

If death benefits are paid to any survivor, such benefits will be in lieu of the payment of the employee's contributions and earnings to the CDC plan, and any employer contributions and earning to which the deceased employee had a vested right.

(Ord. 2017-258-E, § 1)

Sec. 120.512B. - Disability.

(a)

A member shall be disabled if the member has suffered an illness, injury or disease which renders the member permanently and totally incapacitated, physically or mentally, from regular and continuous duty as a Corrections Officer, as established by competent medical evidence. A disability benefit cannot be based on a condition which pre-existed membership in the CDC plan unless the nature of the injury or illness giving rise to the disability would reasonably be expected to give rise to a disability in a person without the pre-existing condition.

(b)

A member shall be eligible for a disability retirement from the entry date into the CDC plan.

(c)

The disability benefit shall be paid on a bi-weekly basis in an amount equal to 60 percent of the member's average salary in the 52 pay periods immediately preceding the time of the disability.

(d)

Disability retirement income shall continue until the death of the member, or recovery from disability, or upon the death of a member.

(e)

A member receiving the disability benefit shall be entitled to a three percent cost of living adjustment to be applied each January 1.

(f)

A member receiving the disability benefit shall also be entitled to a supplemental benefit of $5 per month for each full year of actual service, which will be no less than $25 and no more than $150 per month.

(g)

No member shall be granted a disability benefit upon a determination that the disability resulted from:

(1)

Excessive and habitual use of drugs, intoxicants or narcotics;

(2)

Injury or disease sustained while willfully and illegally participating in fights, riots, civil insurrections or while committing a crime;

(3)

Injury or disease arising from service in the armed forces which entitle the member to disability benefits from the former employer;

(4)

Self-inflicted wounds or conditions.

(Ord. 2017-258-E, § 1)

SUBPART C. - POLICE AND FIRE EMPLOYEES DEFINED CONTRIBUTION PLAN

Sec. 120.501C. - Plan established.

There is hereby created a Police and Fire Employees Defined Contribution Plan, known as the PFDC plan, effective as of October 1, 2017.

(Ord. 2017-258-E, § 1)

Sec. 120.502C. - Membership.

(a)

Membership shall be comprised of all police officers and fire fighters, who are not enrolled in another City-sponsored retirement program. All police officers and fire fighters hired on or after October 1, 2017, must be a Member of the PFDC.

(b)

The City shall create and manage employee education programs, including the right to hire third party educational services.

(c)

The System and the City shall not incur any liability arising from the investment decisions of CDC plan participants or from the above education and training programs.

(Ord. 2017-258-E, § 1)

Sec. 120.503C. - Contributions.

Member contributions shall be ten percent of earnable compensation as defined in Section 121.113(a)(1) of the Ordinance Code. Member contributions shall be picked-up rather than contributed as provided in Section 414(h) of the Internal Revenue Code. A portion of the Member contributions, equal to 0.3 percent, shall be used to fund the disability and survivor benefits outlined below. The City shall contribute 25 percent of earnable compensation. A portion of the City contributions, equal to 0.3 percent, shall be used to fund the disability and survivor benefits outlined below; however, the City shall contribute such additional sums, as necessary, to fund the disability and survivor benefits on a sound actuarial basis. Members may make additional contributions on an after-tax basis, to the extent permitted by law. Members may also rollover to the PFDC plan benefits accrued in other qualified plans consistent with the then prevailing provisions of the Internal Revenue Code. General administrative fees will be paid by the City. Fees charged to individual accounts will be paid by the employee.

(Ord. 2017-258-E, § 1)

Sec. 120.504C. - Vesting.

Upon leaving employment, PFDC plan members will be entitled to 100 percent of their own contributions and earnings and will be entitled to the following percentages of the employer's contribution and earnings after the indicated number of years of service: Members of the PFDC plan shall be 25 percent vested upon the conclusion of six months of credited service, shall be vested 50 percent upon conclusion of one year of credited service, shall be vested 75 percent upon conclusion of two years of credited service, and shall be fully vested upon the conclusion of three years of credited service.

(Ord. 2017-258-E, § 1)

Sec. 120.505C. - Administration of the PFDC Plan.

The City shall be responsible for the Administration of the PFDC plan. However, with input from the bargaining unit, the City will select, through its procurement process, and manage a third-party fund manager. Notwithstanding any other provision of this Chapter, the Board of Trustees for the retirement system shall not manage or administer the PFDC Plan.

(Ord. 2017-258-E, § 1)

Sec. 120.506C. - Investment of Member Accounts; New Employee Orientation; Member Education.

(a)

All members of the PFDC plan shall have individual member accounts. Member accounts shall be invested in one or more commingled or mutual funds selected from a list chosen by the City. At least one such fund shall be a diversified model portfolio, with automatic rebalancing and limited volatility, and designed to minimize risk of loss. The City shall have continuing due diligence responsibility in the selection, monitoring and replacement of investment options, but not for the individual investment decisions of PFDC plan participants.

(b)

The City shall, at its own expense, arrange for all Members of the PFDC to meet with a financial advisor to provide financial counseling three times during each Member's career. These meetings will occur: (1) when the Member is in the initial training academy; (2) upon the Member's completion of ten years of employment; and (3) upon the Member's completion of 20 years of employment.

(c)

The City shall not incur any liability arising from the investment decisions of PFDC plan participants or from the above education and training programs.

(Ord. 2017-258-E, § 1)

Sec. 120.507C. - Loans and Qualified Domestic Relations Orders Prohibited; Exemption from Claims of Creditors.

(a)

Member loans shall not be permitted.

(b)

Qualified domestic relations orders (QDRO) for the distribution of marital property rights shall not be permitted; provided, however, this shall not alter the provisions of Florida law relating to equitable distribution.

(c)

All member accounts shall be exempt from claims of creditors, bankruptcy, insolvency, or legal process of any kind, except for the payment of alimony, child support, or federal tax levies as provided by law. Member accounts may not be pledged or assigned; provided however, retired members may elect direct payment of a portion of the accrued retirement benefit, upon separation from service, to the payment of any City-sponsored benefit program, or for the payment of dues for the retired employees association.

(Ord. 2017-258-E, § 1)

Sec. 120.508C. - Continuation of Benefits.

The City and any authorized certified bargaining agent shall have all of the rights and be subject to the provisions of F.S. Ch. 447, including but not limited to the requirement for negotiations, the term limitation set forth in F.S. § 447.309(5), and the impasse process, provided however, that the City shall not unilaterally alter Members' retirement benefits, as authorized by F.S. § 447.403(4)(d), for a period of three years from October 1, 2017, and such period shall automatically extend for two additional three-year periods, and one additional one-year period, under the following circumstances: if the fiscal condition of the economy for the City of Jacksonville, as determined and certified in writing by the City's Director of Finance and Administration, within 90 days after the termination of the first three-year period, and, if applicable, within 90 days after the termination of the second three-year period, and, if applicable, within 90 days after the termination of the third three-year period, meets the all of the following requirements:

(a)

The average annual growth rate of the City of Jacksonville's total share of ad valorem revenues collected for Duval County for the three most recent fiscal years is no less than 2.5 percent, as provided in writing by the City's Director of Finance and Administration. For the purposes of this subsection, during a particular fiscal year, if (1) there is a millage rate reduction, and (2) the 2.5 percent threshold is not met, that particular fiscal year shall not be counted as part of the three most recent fiscal years' average and instead on the remaining non-effected fiscal years shall be used to calculate the average annual growth; and

(b)

The time-weighted, average annual gross return on investment for the Police and Fire Pension Fund for the three most recent fiscal years is no less than the actuarial assumed rate of return, less one percent, as provided in writing by the Police and Fire Pension Fund investment consultant.

(c)

The three most recent fiscal years shall be the three fiscal years terminating prior to or during the 90-day period(s) noted above;

(d)

The automatic extension referenced above shall not take effect if the certified collective bargaining agent declares an impasse on retirement benefits; and

(e)

The average annual growth rate in ad valorem taxes, provided for in subsection (i) above, shall be the actual cash collections, as determined by the Chief Financial Officer within 90 days of the end of the prior fiscal year.

(Ord. 2017-258-E, § 1)

Sec. 120.509C. - Participation in City's Health Insurance Plan.

Retiree members of the PFDC plan shall be entitled to participate in the City's health insurance plan in the same manner as a retiree of the DB plan, beginning on the next pay period following the date upon which the PFDC plan member retires from the City after attaining (a) age 65 with five years of credited service, or (b) any age with 20 years of credited service.

(Ord. 2017-258-E, § 1)

Sec. 120.510C. - Compliance with the Internal Revenue Code.

The PFDC plan shall at all times be maintained as a qualified plan in accordance with the applicable provisions of the Internal Revenue Code. Contributions shall not exceed the maximum amount permitted under Section 415 of the Internal Revenue Code. Section 120.104 of the Ordinance Code, to the extent applicable, is incorporated by reference.

(Ord. 2017-258-E, § 1)

Sec. 120.511C. - Surviving spouse benefits; children's benefits.

(a)

In the event of the death of an active full-time police officer or fire fighter, the surviving spouse, as defined in subsection (i), shall receive 75 percent of 60 percent (plus an additional two percent for each full year of service in excess of 20 years) of the Member's average salary received in the 52 pay periods immediately preceding the Member's death. The surviving spouse shall be entitled to a three percent cost of living adjustment to be applied each January 1.

(b)

If there is no surviving spouse, unmarried children under the age of 18 years shall receive the greater of $200 a month or a proportionate share of the same benefit as a surviving spouse without children. The benefit shall continue until the earlier of the child's marriage or reaching age 18. If there is no surviving spouse, unmarried children over the age of 18 who are qualified students shall receive $200 a month. The benefit shall continue until the earlier of the child's marriage or reaching the age of 22. The children shall be entitled to a three percent cost of living adjustment applied each January 1.

(c)

If there is a surviving spouse, unmarried children under the age of 18 years, or up to 22 years if a qualified student, shall receive a benefit of $200 per child per month upon the death of the member, where no other survivorship benefit is available. The benefit shall continue until the child's marriage or upon reaching age 18, unless they are a qualified student, wherein the benefit shall continue until reaching age 22, unless the child is disabled, in which case the benefits will continue for the life of the child or during the presence of the disabling condition. The children shall be entitled to a three percent cost of living adjustment to be applied each January 1.

(d)

If the total surviving benefit of a spouse and children exceeds 60 percent (plus an additional two percent for each full year of service in excess of 20 years), of the average salary received by the Member for the 52 pay periods immediately preceding the Member's death, the survivors' benefits shall be prorated.

(e)

The survivor benefit will include a supplemental benefit of $5 per month for each year of actual credited service, which will be no less than $25 and no more than $150 per month.

(f)

In the event that a deceased employee's qualified survivors decline the benefits described above, the deceased employee's designated beneficiaries will receive the employee's contributions and earnings in the PFDC plan, and any employer contributions and earning to which the deceased employee had a vested right.

(g)

No survivor benefit shall be paid to any person who intentionally and unlawfully killed or participated in procuring the death of the retiree or member.

(h)

In order to be deemed a surviving spouse of an active member under the terms of this Section, the spouse must have been married to the active member at the time of the active member's death.

(i)

If death benefits are paid to any survivor, such benefits will be in lieu of the payment of the employee's contributions and earnings to the PFDC plan, and any employer contributions and earning to which the deceased employee had a vested right.

(Ord. 2017-258-E, § 1)

Sec. 120.512C. - Disability.

(a)

A member shall be disabled if the member has suffered an illness, injury or disease which renders the member permanently and totally incapacitated, physically or mentally, from regular and continuous duty as a police officer or fire fighter, as established by competent medical evidence. A disability benefit cannot be based on a condition which pre-existed membership in the PFDC plan unless the nature of the injury or illness giving rise to the disability would reasonably be expected to give rise to a disability in a person without the pre-existing condition.

(b)

A member shall be eligible for a disability retirement from the entry date into the PFDC plan.

(c)

The disability benefit shall be paid on a bi-weekly basis in an amount equal to 60 percent of the member's average salary in the 52 pay periods immediately preceding the time of the disability.

(d)

Disability retirement income shall continue until the death of the member, or recovery from disability, or upon the death of a member.

(e)

A member receiving the disability benefit shall be entitled to a three percent cost of living adjustment to be applied each January 1.

(f)

A member receiving the disability benefit shall also be entitled to a supplemental benefit of $5 per month for each full year of actual service, which will be no less than $25 and no more than $150 per month.

(g)

No member shall be granted a disability benefit upon a determination that the disability resulted from:

(1)

Excessive and habitual use of drugs, intoxicants or narcotics;

(2)

Injury or disease sustained while willfully and illegally participating in fights, riots, civil insurrections or while committing a crime;

(3)

Injury or disease arising from service in the armed forces which entitle the member to disability benefits from the former employer;

(4)

Self-inflicted wounds or conditions.

(Ord. 2017-258-E, § 1)

PART VI. - CITY DISABILITY PROGRAM[3]

Footnotes: --- (3) ---

Editor's note— Ord. 2017-258-E, § 1, amended the Code by repealing former Pt. VI, §§ 120.601—120.608, and adding a new Pt. VI. Former Pt. VI pertained to similar subject matter, and derived from Ord. 2007-1136-E; Ord. 2008-1092-E; and Ord. 2009-336-E.

Sec. 120.601. - Disability Program Repealed.

Effective as of the beginning of the first full pay period after October 1, 2017, all disability benefits created pursuant to Part VI are repealed. Members receiving disability benefits pursuant to the Disability Program established in Part VI, as of September 30, 2017, shall continue to receive disability benefits through the disability program for the type of plan they were a member of at the time of their application for disability, i.e. defined benefit or defined contribution, and consistent with the terms of each respective program. The remaining assets of the Disability Program, together with any earnings and the actuarial liability for benefits payable, as of September 30, 2017, shall proportionally transfer to the respective plans based on the number of members eligible for disability benefits under each program.

(Ord. 2017-258-E, § 1)

Sec. 119.110. - JEA and the Water and Sewer Expansion Authority authorization. Chapter 121 - POLICE AND FIREFIGHTERS PENSION PLAN