§ 2-521. Definitions.

The following words and phrases as used in this division shall have the following meanings unless a different meaning is clearly required by the context:

Accumulated contributions shall mean the sum of all amounts deducted from the compensation of a member and credited to his/her individual account in the pension fund.

Actuarial deficiency shall mean the present value as of the date of actuarial valuation, or pension credit granted for service prior to the date of actuarial valuation of the pension plan, as the term is used in F.S. Ch. 175 and Ch. 185.

Actuarial equivalent shall mean a benefit of equal value or equal cost when computed based on the 1994 Group Annuity Mortality Basic Table Unisex 50/50 and an interest rate of 9.5 percent except as otherwise specified in section 2-526, below. This table and interest rate are used exclusively for calculation of actuarial equivalencies for optional forms of benefit.

Actuary shall mean one who is skilled in calculations involving compound interest and life contingencies who shall be a member of an actuarial society, association, or conference.

Advisory committee shall mean a committee established to advise the board of trustees on matters related to the pension plan as established in accordance with section 2-527.

Annuity shall mean annual payments for life to be paid in equal monthly installments on the last day of the month in which the same accrue. Such payments shall be made on a calendar month basis and the payments for any month may lie prorated if appropriate.

Base pay shall mean an employee's established rate of annual or monthly compensation, not including pay for overtime or bonuses.

Beneficiary shall mean any person, except a pensioner, who is in receipt of a pension or other benefits, payable from funds of the plan; or any person designated by a member of the plan to receive benefits from the plan upon the member's death.

Board shall mean the board of trustees created to administer this plan.

Credited service shall mean the total number of months of service with the city, expressed in terms of full and fractional years. Additional months of service shall be credited for unused sick leave and personal critical leave bank (PCLB) credits, assigning one day of service for each day of unused sick leave and unused personal critical leave, unless otherwise expressly provided for herein, in applicable personnel policies, collective bargaining agreements, or DROP provisions. For service earned on or after October 1, 2012, no additional months of service shall be credited for unused sick leave or PCLB credits earned on or after October 1, 2012. In calculating credited service on or after October 1, 2012, the lesser number of months between the additional months of service credited for unused sick leave or PCLB credits earned on or before September 30, 2012 and months of unused sick leave or PCLB credits available to a member at the time of his or her retirement shall be used. Employees of the Gainesville Police Department Communications Center at the time the combined communications center is activated who are hired by the Alachua County Sheriff on or about said date and who elect to remain members of this plan and the City of Gainesville Employees Disability Plan (GPD employees) shall designate some, none, or all of their city sick leave or PCLB balances at time of hire by the sheriff to be applied as credited service under the plan. Such sheriff department employee's sick leave (or equivalent benefit) balances at the time of termination from the sheriffs department shall not be applied towards credited service nor shall any cash out of such benefit be included in such member's final average earnings. GPD employees' employment with the city shall not be deemed to be terminated, for the purposes of this section, when hired by the Sheriff on or about the activation date. If the employment of a member is terminated, by reason of layoff, and the member is subsequently reemployed by the city, the credited service to which he/she was entitled as of his/her termination date shall be included in any further computation of credited service if the member refunds withdrawn contributions, if any, as described in section 2-626(i). Further provided, that if the employment of a member is terminated, other than layoff, and the member is subsequently reemployed by the city, the credited service to which he/she was entitled as of his/her termination date shall be included in any further computation of credited service.

(1)

If the member was entitled to a termination benefit; or

(2)

If the member was not entitled to a termination benefit and his/her number of calendar months that he/she was not employed is less than his/her aggregate months of service credited under the plan as of his/her termination date and he/she has repaid withdrawn contributions as provided in section 2-526(i).

(3)

If the member was not entitled to a termination benefit, and he/she remains in the continuous employ of the city for at least five years subsequent to his/her re-employment, and he/she has repaid withdrawn contributions as provided in section 2-526(i). Continuous employ shall not be deemed interrupted because of absence, when the absence shall have been granted in accordance with appropriate contract provisions or applicable personnel policies as approved by the city commission. Approved absences shall count as credited service under the plan, in accordance with the terms of the plan.

Deferred retirement option program shall mean an optional program of the city's retirement systems or plans for deferring retirement income while remaining in the active employ of the city. This shall also be known as a DROP.

Early retirement shall mean retirement, in accordance with the terms of the plan, at an age earlier than normal retirement age.

Earnings shall mean only base pay (which shall include all paid leaves), all overtime pay (which shall include time paid at time-and-a-half, double-time, and double-time-and-a-half), stand-by pay, call-back pay, working out of classification pay, acting out of classification pay, longevity pay, special assignment pay, and termination vacation pay, or for members entering a DROP any lump sum payment of some or all of such member's vacation balance upon entering the DROP, except as may be otherwise expressly provided for herein or in collective bargaining agreements. To calculate earnings for service earned on or after October 1, 2012 by members whose most recent appointment to employment with the city as a permanent or regular employee occurred on or before October 1, 2012, no more than 300 hours of overtime pay per year earned on or after October 1, 2012 shall be included, nor shall termination vacation pay earned on or after October 1, 2012 be included. To calculate earnings for service earned on or after October 2, 2012 by members whose most recent appointment to employment with the city as a permanent or regular employee occurred on or after October 2, 2012, no more than 150 hours of overtime pay per year earned on or after October 2, 2012 shall be included, nor shall termination vacation pay earned on or after October 2, 2012 be included. Effective October 1, 1996, earnings in excess of $150,000.00 annually shall be disregarded for all purposes of this plan. As of January 1 of each calendar year, the dollar limitation in Internal Revenue Code Section 401(a)(17) for that calendar year will become effective for the plan year commencing thereafter in lieu of the dollar limitation provided in the preceding sentence. For an employee who became a member of the plan prior to October 1, 1996, this limitation shall not be applicable.

Effective date of the plan shall mean the date on which the operation of the plan is to commence for the purpose of determining eligibility, benefits, and related matters, which is hereby fixed as the first day of August, 1965.

Employee shall mean a person employed by the city and so classified in the personnel records of the city, including probationary and permanent employees, but excluding employees defined in section 2-596. Any appointed officer shall be qualified under this plan under only one office, that office being the one from which he/she received the largest annual salary, compensation, or remuneration. Independent employees are excluded from participation in this plan.

Final average earnings shall mean:

(1)

For members whose most recent appointment to employment with the city as a permanent or regular employee occurred on or before October 1, 2007, the average of the annual (12 consecutive months) earnings received by an employee during any 36 consecutive months of employment by the city during which the employee received the highest earnings paid him/her by the city; provided, however, for employees who are demoted for disciplinary reasons by the city, the terms shall refer to the greater of:

a.

The average of the annual (12 consecutive months) earnings received by an employee his/her final 36 consecutive months of employment with the city; or

b.

The average of the annual (12 consecutive months) earnings received by an employee during any 36 consecutive months of employment by the city subsequent to the demotion during which the employee received the highest earnings paid him/her by the city.

(2)

For members whose most recent appointment to employment with the city as a permanent or regular employee occurred on or after October 2, 2007 but on or before October 1, 2012, the average of the annual (12 consecutive months) earnings received by an employee during any 48 consecutive months of employment by the city during which the employee received the highest earnings paid him/her by the city; provided, however, for employees who are demoted for disciplinary reasons by the city, the terms shall refer to the greater of:

a.

The average of the annual (12 consecutive months) earnings received by an employee his/her final 48 consecutive months of employment with the city; or

b.

The average of the annual (12 consecutive months) earnings received by an employee during any 48 consecutive months of employment by the city subsequent to the demotion during which the employee received the highest earnings paid him/her by the city.

(3)

For members whose most recent appointment to employment with the city as a permanent or regular employee occurred on or after October 2, 2012, the average of the annual (12 consecutive months) earnings received by an employee during any 60 consecutive months of employment by the city during which the employee received the highest earnings paid him/her by the city; provided, however, for employees who are demoted for disciplinary reasons by the city, the terms shall refer to the greater of:

a.

The average of the annual (12 consecutive months) earnings received by an employee his/her final 60 consecutive months of employment with the city; or

b.

The average of the annual (12 consecutive months) earnings received by an employee during any 60 consecutive months of employment by the city subsequent to the demotion during which the employee received the highest earnings paid him/her by the city.

(4)

If a member has been absent from work (performs no duties) due to an injury claimed to be compensable under F.S. Ch. 440 during the period of time which would be utilized to determine his/her final average earnings, then such period of absence shall not be considered months of employment for the purposes of this section. The months of employment immediately preceding the absence shall be deemed to be consecutive with the months of employment, if any, earned after his/her return to work.

(5)

If the employment of a member is terminated and such former member, who is not a retiree or receiving a termination benefit (or whose termination benefit was cashed out under section 2-526(a)(3)), is subsequently re-employed by the city as an eligible member, such member's final average earnings shall be calculated as follows, except as otherwise required by subsections (1), (2), and (3) of this definition: The months of employment immediately preceding the termination shall be deemed to be consecutive with the months of employment earned after the member's re-employment.

(6)

If a continuously employed member ceases to earn eligible service for more than one month during the period of such employment and subsequently begins to again earn eligible service, such member's final average earnings shall be calculated as follows, except as otherwise required by subsections (1), (2), and (3) of this definition: The months of employment during which eligible service were earned shall be deemed consecutive.

Fund or pension fund shall mean all sums of money paid into the plan by the city, and all gifts and contributions received by the fund, accepted from other sources, together with earnings and appreciation of the same, less disbursements made from such money, in accordance with the plan, and less any losses or depreciation of asset value.

Gross pay shall mean those types of compensation which presently (as of July 2000) have member contributions deducted therefrom. Types of compensation created, or first applied to members after July 2000, may, at the discretion of the city, have member contributions deducted therefrom provided that, unless otherwise agreed to, such types of compensation shall also thereafter be included in earnings effective upon the date contributions are deducted therefrom.

Interest shall mean the rate of interest adopted by the board for computation of pension plan costs and values, unless another meaning is clearly evident from the context in which the term is used.

Member shall mean any person who is included in the membership of the plan.

Normal annuity form shall mean a monthly annuity payable from date of retirement to death.

Normal cost shall mean the annually accruing cost of pension benefits granted under this article, as the term is used in F.S. Ch. 175 and Ch. 185.

Normal retirement age shall mean the age at which an employee first becomes eligible for normal retirement under the plan.

Past service cost shall mean the same as "actuarial deficiency" as the term is used in this division.

Pension shall mean an annual amount, payable in equal monthly installments throughout the life of a retired employee, payable from the funds of the plan.

Pensioner shall mean a member who has retired with a pension payable from the funds of the plan.

Permanent or regular employee shall mean an employee appointed to an authorized and budgeted position on a regular and continuous basis.

Plan, pension plan or employees' pension plan shall mean the system of retirement benefits provided under this division.

Plan year shall mean a twelve-month period beginning on Oct. 1 and ending on Sept. 30.

Predecessor retirement plan shall mean the employee's pension plan on July 31, 1965.

Retiree shall mean a former employee who is receiving, or a current employee who has deferred receipt (into a deferred retirement option plan account) of, a monthly retirement benefit from a defined benefit pension plan of the city.

Retirement shall mean withdrawal from the service of the city with a pension granted in accordance with the provisions of this plan.

Retirement annuity option shall mean an optional form of retirement income, other than the normal annuity form, which an employee may elect in accordance with the terms of this plan. Optional annuity forms are the joint and survivorship annuity and the social security option.

Service credit rules:

(1)

Day of service shall mean each day for which a member is:

a.

Paid or entitled to payment by the city for performance of duties;

b.

Paid or entitled to payment by the city on account of a period of time during which no duties are performed (e.g., vacation, holiday, illness, incapacity, layoff, jury duty, military duty or approved leave of absence);

c.

Each day for which back pay, irrespective of mitigation or damages, has been either awarded to or agreed to by the city; provided, however, that the same day shall not be credited as a day of service more than once.

(2)

Month of service shall mean a one-month period beginning on the day of the month corresponding to a member's date of employment, during which the member has earned at least ten days of service; provided, however, that ten days of service will be deemed to have been earned in each month of service in which occurs:

a.

An approved leave of absence, not to exceed 90 days, authorized by the city, in accordance with a uniform policy applied on a nondiscriminatory basis to all members similarly situated; or

b.

Voluntary or involuntary service in the armed forces of the United States for a period not greater than one enlistment, provided that the member is legally entitled to reemployment pursuant to the provisions of any federal law applicable to veterans' reemployment rights, and any amendments thereto, and is reemployed by the city within the manner provided by law and under the conditions prescribed by law; or such member dies while performing qualified military service as defined in Section 414(u) of the Internal Revenue Code, in which case the member shall be treated as if he or she had returned to employment and then terminated employment on account of death.

(3)

A member shall not earn any days or months of service for any purpose under the plan after entering in a DROP, except as a re-employed retiree, if applicable.

(4)

If the employment of a member is terminated, and the former member is subsequently reemployed by the city, the member's date of employment for purpose of determining additional months of service, shall be reestablished as his/her date of reemployment.

Service retirement shall mean retirement from employment of the city with a pension based upon service in the employ of the city, as distinct from retirement with a pension based on disability.

Service retirement age shall mean the age at which an employee first becomes eligible for service retirement.

Social security option shall mean an optional form of retirement annuity as described in this division.

Trustees shall mean the trustees of the pension plan established under this article.

(Code 1960, § 20-40.1; Ord. No. 3140, § 1, 6-24-85; Ord. No. 3867, § 1, 6-7-93; Ord. No. 951232, § 1, 4-8-96; Ord. No. 970592, §§ 1—4, 11-24-97; Ord. No. 981266, § 22, 7-12-99; Ord. No. 991457, § 1, 6-26-00; Ord. No. 000051, §§ 1—5, 9-11-00; Ord. No. 001385, § 1, 7-23-01; Ord. No. 120218, § 1, 9-10-12; Ord. No. 130122, § 1, 9-19-13)

Cross reference

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