§ 2-523. Membership and service.

(a)

Eligible members. Members of the pension plan established under this division shall be:

(1)

All employees of the city as of August 1, 1965, who participated in, and contributed to, the predecessor retirement plan for employees of the city;

(2)

All permanent employees of the city as of August 1, 1965, who did not participate in and contribute to the predecessor retirement plan for employees of the city;

(3)

All subsequently hired regular employees become members of the plan established under this division on the first day of the month following (or coinciding with) the date of their employment as permanent employees.

(b)

Service before the effective date of the plan.

(1)

A member of the plan described in subsection (a)(1) will be given full credit for service prior to August 1, 1965, in this plan for all service to the city as a full-time permanent employee before August 1, 1965.

(2)

A member of the plan described in subsections (a)(2) and (a)(3) will be given full credit for service to the city from date of employment or from January 1, 1964, whichever date is later.

(c)

Members of the plan.

(1)

All regular employees of the city as described in subsection (a) will be members of the plan except as provided in subsection (c)(2) below.

(2)

Regular employees who elected/requested, in accordance with section 2-579 of this Code or the provisions of the city's § 401(a) Plan, to have future employer contributions made to the Deferred Compensation Plan (§ 457) or the § 401(a) Defined Contribution Plan in lieu of this plan are eligible for the disability benefit under section 5-526(d) of this plan but they are ineligible for any other benefits under this plan, unless such persons make an election(s) described in subsection (i), or are otherwise limited participants. Regular employees who are eligible employees as defined in section 2-596 of this Code are ineligible members of this plan.

(3)

Limited participation.

a.

Definitions:

1.

Ineligible member means an employee of the city who is not an eligible member.

2.

Limited participant means a member of the plan who, during part or parts of his/her employment with the city, is an eligible member and, during other parts of his/her employment with the city is an ineligible member.

3.

Limited participant service means, in the case of a limited participant, credited service as defined in the plan, but including service during all times of his/her employment with the city, whether an eligible member or an ineligible member, except while a retiree or a recipient of a termination benefit from any defined benefit pension plan of the city.

4.

Eligible service means, in the case of a limited participant, credited service as defined in the plan, during the part or parts of his/her employment during which he/she is an eligible member, except while a retiree or a recipient of a termination benefit from any defined benefit pension plan of the City of Gainesville.

b.

For the purpose of determining a limited participant's credited service for any purpose of this plan, except for the purpose of determining his/her accrued benefit, his/her credited service shall mean his/her limited participant service.

c.

For the purpose of determining a limited participant's accrued benefit, his/her credited service shall mean only his/her eligible service and calculation of final average earnings shall be based upon his/her eligible service earnings.

(d)

Temporary, part-time and seasonal employees. This plan shall not be construed to include any temporary, part-time or seasonal employees (e.g., summer recreation program) of the city. If a temporary employee, part-time employee or seasonal employee subsequently becomes a permanent employee of the city as defined in this division, he/she shall not receive credited service for the period of employment as a temporary, part-time or seasonal employee, except that a member's period of employment while a CETA employee, as determined by the city, shall be considered as service as a permanent employee. Part-time employees as used in this section shall include only those persons not defined as "permanent employees" in this division.

(e)

Questions and membership. The board shall decide any question as to who is a member of the plan and its decision shall be final and binding on all interested parties.

(f)

War service credit. If a member who, while employed by the city, entered or enters the armed forces of the United States in time of war or other national emergency recognized by the city commission, and reenters the employ of the city in accordance with the definition of "service credit rules" in section 2-521, such service in the armed forces shall be credited him/her as credited service provided that he/she refunds withdrawn contributions, if any, in accordance with section 2-526. In any case of doubt as to the period to be so credited any member, the board shall have final power to determine such period. During the period of such armed service and until the employee's return to employment by the city the individual's contributions to the fund shall be suspended.

(g)

Deferred benefits. A member of the plan who retires early in accordance with section 2-526 may elect to, in lieu of immediately receiving benefits, defer payment of benefits to a date subsequent to his/her early retirement date. In the event of such election, which shall be irrevocable, the employees' benefit shall be calculated in accordance with section 2-526, reduced for each month by which his/her benefit commencement date precedes his/her unreduced benefit commencement date.

(h)

Participants in Gainesville Gas Group Pension Plan. The City of Gainesville shall purchase the Group Pension Plan for employees of Gainesville Gas and shall place all of the cash, investments, and other assets of said plan in the trust fund of the City of Gainesville Employees Pension Plan (the "plan"). Retired and former participants shall remain entitled to the applicable benefits as described in the group pension plan, but shall not become members of the "plan." Active participants of the group pension plan who become employed by the City of Gainesville upon the city's acquisition of the Gainesville Gas Company shall become members of the "plan" on the first day following the acquisition date and shall be entitled to the benefits described below.

(1)

The accrued benefit for such members shall be:

a.

The accrued benefit earned under the Gainesville Gas Group Plan as of the acquisition date; plus

b.

Two percent of final average earnings times credited service earned after the acquisition date; plus

c.

For each year of credited service earned after the acquisition date, an additional two percent of final average earnings will be credited, not to exceed the service years earned under the accrued benefit formula under the Gainesville Gas Group Plan; less

d.

For each year of Gainesville Gas Group Plan service credited under subsection c. above, the portion of the accrued benefit determined under subsection a. above based on such year(s), payable as a monthly life annuity from normal retirement date, except as otherwise provided in this article.

(2)

For purposes of determining normal retirement date, service accrued under the Gainesville Gas Group Plan prior to the acquisition date will be counted as vesting service.

(3)

For the purpose of computing final average earnings, overtime and termination vacation pay shall not be included, except as provided below. For members retiring on or after October 1, 1996, overtime shall be included for the purpose of computing final average earnings, except as otherwise expressly provided for herein. To calculate earnings for service earned on or after October 1, 2012, no more than 300 hours of overtime pay per year earned on or after October 1, 2012 shall be included. For members retiring on or after May 1, 2016, termination vacation pay accrued and unused on or before October 1, 2012 shall be included in the calculation of final average earnings.

(i)

Re-entry; purchase of limited participant service.

(1)

Regular employees, actively employed on or after October 29, 2002, who previously elected/requested to have future employer contributions made to the Deferred Compensation Plan (§ 457) or the § 401(a) Defined Contribution Plan in lieu of this plan, may elect during the election periods described below to enter this plan as eligible members, and to have the employer cease employer contributions to the § 457 Deferred Compensation Plan or the § 401(a) Defined Contribution Plan. Elections may be made during the months of November, December, and January of each year.

(2)

If elected by the employee under (1) above, participation in this plan and cessation of employer contributions to the § 457 Deferred Compensation Plan or the § 401(a) Defined Contribution Plan shall be effective commencing with the first administratively feasible pay period following execution and submission by the participant of an election form.

(3)

An employee who has elected to enter this plan as an eligible member shall have the option during the periods of time described in subsection (i)(1) above to have some or all years of ineligible service count as eligible service by contributing to the plan the actuarial present value of benefits that are projected to be applicable for some or all the years of service as an ineligible member. If any particular "buy-back" involves less than all prior limited participant service, then in each case the period for which the employee receives credit must be for full years and must be the most recent unclaimed limited participant service. Such present value shall be determined by the Plan Actuary using the valuation applicable to the Budget Year in which the election is made. This option may be elected by the employee during any of the election periods described in subsection (1) above. Appropriate portions of those amounts contributed pursuant to this subsection (3) and (4) shall be considered employee contributions for the purpose of subsections 2-526(a)(3) and (e), (f), (g), and (h).

(4)

A limited participant may also "buy-back" prior service as described in subsection (3) above, provided that the funds are received by the plan within 60 days of the effective date of the limited participant's termination of employment.

(5)

Effective January 1, 2002, for purposes of contributing amounts to the plan, as described in subsection (i)(3) and (4) above, the plan will accept a cash or transfer of all or part of a member's account in the City of Gainesville's 457(b) Plan and will accept rollover contributions and/or direct rollovers of distributions (including after-tax contributions) made after December 31, 2001 that are eligible for rollover in accordance with Section 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), or 457(e)(16) of the Internal Revenue Code, from all of the following types of plans; (1) a qualified plan described in Section 401(a) or 403(a) of the Internal Revenue Code; (2) an annuity contract described in Section 403(b) of the Internal Revenue Code; (3) 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; and (4) an individual retirement account or annuity described in Section 408(a) or 408(b) of the Internal Revenue Code (including SEPs, and Simple IRAs after two years of participating in the Simple IRA). The amount distributed from such plan must be rolled over to this plan no later than the 60th day after distribution as made from the plan, unless otherwise waived by the IRS pursuant to Section 402(c)(3) of the Internal Revenue Code.

(j)

Re-employed retirees and recipients of termination benefits. A retiree or a former employee of the city receiving termination benefits from the city consolidated police officers and firefighters retirement plan, or this plan may, upon becoming re-employed by the City of Gainesville, become a new member of this plan, earn credited service, and become entitled to receive an additional retirement benefit subject to the following conditions:

(1)

Such member shall satisfy the eligibility requirements for participation in this plan.

(2)

Such member shall not be entitled to disability benefits under the city employees disability plan, or become entitled to any other disability pension benefit payable from a retirement system or plan of the city.

(3)

No service for which credit was received, or which remained unclaimed, at retirement or termination may be claimed or applied toward credited service earned following re-employment.

(4)

Such re-employed member shall not be entitled to purchase additional credit for service performed prior to re-employment.

(k)

Military service prior to employment. Members who are regular employees, actively employed after February 12, 2007, and not participating in the DROP, may have the year(s) that the member served on active duty in the military service of the Armed Forces of the United States, the United States Merchant Marine or the United States Coast Guard, voluntarily or involuntarily and honorably or under honorable conditions, prior to initial employment with the city, added to his/her years of credited service provided that:

1.

The member contributes to the fund an actuarially determined amount so that service purchased pursuant to the changes described in this plan amendment do not result in increase to the city's contribution to the plan. For purposes of purchasing service, the plan will accept cash or a transfer of all or part of a member's account in the city's 457 Deferred Compensation Plan or 401(a) defined contribution plans, and will accept rollover contributions and/or direct rollovers of distributions (including after tax contributions) made after December 31, 2001, that are eligible for rollover in accordance with Section 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), or 457(e)(16) of the Code, from of the following types of plans: (1) a qualified plan described in Section 401(a) or 403(a) of the Code; (2) an annuity contract described in Section 403(b) of the Code; (3) an eligible plan under Section 457(b) of the 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; and (4) an individual retirement account or annuity described in Section 408(a) or 408(b) of the Code (including SEP's and Simple IRA's after two years of participation in the Simple IRA). The amount distributed from such plan must be rolled over to this plan no later than the 60th day after distribution was made from the plan, unless otherwise waived by the IRS pursuant to Section 402(c)(3) of the Code. The plan shall absorb the cost of professional services for obtaining one actuarial estimate for a member. Any subsequent estimates shall be paid for in advance by the requesting member.

2.

Purchase of credited service for military service prior to employment shall be in increments of one or more whole years, except where the remaining service available to be purchased is less than one year. Purchases may not be made more frequently than once every 12 months. Purchase of service may be made from February 12, 2007 to March 30, 2007, and during the months of November, December and January of each year.

3.

Payment by the member of the required amount shall be made in one lump sum payment, upon receipt of which credited service shall be given, except as provided in subsection 4 below.

4.

Except as provided in subsection 5 below, service for which payment has been made pursuant to subsection 3 above shall not be deemed credited service under the plan until such date that the member is otherwise eligible for normal retirement under subsection 2-526(a)(1) or have reached age 55. In the event a member (or his or her beneficiary) begins receiving an amount under subsection 2-526(a)(3), the payments made pursuant to subsection 3 above shall be returned to member or beneficiary without interest at such time and no credited service given.

5.

Service may be purchased, and credited, or previously purchased service credited, in advance of retirement eligibility as described in subsection 4 above under the following circumstances: When a member who is a regular employee at time of death has at least 80 percent of the credited service, including sick leave or PCLB, necessary for normal or early retirement, and meets the applicable age requirements for such, if any. In this circumstance previously purchased military service shall be credited if such service, including any additional service purchased as described in the following sentence, would result in the member's beneficiary becoming entitled to receive an annuity benefit. If service so eligible for purchase existed, but was not purchased prior to death, the member's beneficiary shall have 90 days following the date of death of the member to purchase the service necessary to receive an annuity.

6.

The maximum credit purchased under this subsection (k) shall be four years.

7.

Credited service purchased pursuant to this subsection (k) shall count for all purposes under the plan.

8.

Purchase of credited service may not be requested unless the member has already earned at least five years of credited service at the time of the request.

9.

A member may not obtain a benefit, nor base the amount of benefit received, upon service purchased under this subsection if such service is claimed for retirement purposes under any other federal, state, or local retirement or pension system where "length of service" is a factor in determining the eligibility for, or the amount of compensation received, except where credit for such service has been granted in a pension system providing retired pay for non-regular service in the Armed Forces of the United States as provided in 10 U.S.C. Chapter 1223. Any member claiming credit under this subsection must certify on a form prescribed by the plan that credit for such service has not and will not be claimed for retirement purposes under any other federal, state, or local retirement or pension system where "length of service" is a factor in determining the eligibility for, or the amount of compensation received, except where credit for such service has been granted in a pension system providing retired pay for nonregular service in the Armed Forces of the United States as provided in 10 U.S.C. Chapter 1223. Such certification shall also include written authorization for the plan to have access to information from any above-described pension systems to confirm that the requirements of this subsection are being complied with. If the member dies prior to retirement, the member's beneficiary must make the required certification before credit may be claimed. If such certification is not made by the member or the member's beneficiary, credit for prior military service shall not be allowed. If it is determined that a benefit based upon such service leave has been claimed in violation of this section, no credit for such service will be allowed under this plan, which may effect the eligibility for, or amount of, any benefit provided under this plan, and amounts contributed for purchase of such service shall be forfeited.

(l)

Early separation program. Notwithstanding subsection (3) of service credit rules and subsection 2-534(c), certain members employed on October 1, 2009, having at that date 17 or more years of credited service, not including unused PCLB and sick leave, but including previously purchased prior military service eligible for use as credited service at that date, will be awarded an additional three years of credited service towards eligibility for service retirement, and towards the amount of his/her service retirement pension, effective beginning pension payments made at the end of the first month following separation, upon the following conditions: Said members must irrevocably agree to resign from employment with the city effective prior to January 1, 2010 and subsequently terminate employment pursuant to said agreement. Participation by members shall be restricted to those eligible members (as described above and below) whose offer to participate and resign is submitted between August 31, 2009 and September 30, 2009. Members who are general government employees below the level of department director, except as excluded below, are eligible to participate:

(1)

Traffic signal technician classifications;

(2)

A maximum of 4.5 positions in the planning division are eligible to participate, subject to:

a.

If more than the above number of eligible planning division employees apply by the end of the election period, the initially accepted group of individuals will be determined by lottery. At this point, the city manager may accept additional eligible employees from the original planning division applicant pool if, after a review of the division workforce as it would be constituted following the separation of the initially accepted employees, the division would, even with the loss of one or more additional personnel, suffer only a minimal loss of productivity based upon the ability to train other existing employees, or readily hire new employees (at or near the minimum of any applicable pay range) to provide any necessary skill sets.

b.

The number of additional eligible employees, if any, who may be accepted in the program will be determined as described above. If there are more eligible employees from the original applicant pool than additional openings in the program as described in (a) above, the criteria for selection will be as follows with the lowest scoring employee being eligible for the additional opening(s):

1.

Demonstrates broad knowledge of division operations;

2.

Achieves accurate results through speed and decisiveness; and

3.

Communicates openly and effectively within and without the division.

(m)

Early separation program.

(1)

Notwithstanding subsection (3) of service credit rules and subsection 2-534(c), members employed on June 1, 2010, having at that date 17 or more years of credited service, not including unused PCLB and sick leave, but including previously purchased prior military service eligible for use as credited service at that date, will be awarded an additional three years of credited service towards eligibility for service retirement, and towards the amount of such retirement pension, effective beginning pension payments made at the end of the first month following separation, upon meeting the conditions set forth herein.

(2)

Members employed on June 1, 2010, and on that date having attained age 55 and having at least 15 years of credited service, but less than 17 years of credited service, not including unused PCLB and sick leave, will be eligible for an early retirement benefit provided that the service retirement annuity would not be reduced by five-twelfths of one percent for each month by which his/her early retirement date is less than the date he/she would have reached age 65, upon meeting the conditions set forth herein.

(3)

Said members must irrevocably agree to resign from employment with the city effective prior to September 1, 2010, and subsequently terminate employment pursuant to said agreement.

(4)

Participation by members shall be restricted to those eligible members (as described above and below) whose offer to participate and resign is submitted between May 10, 2010, and June 10, 2010.

(5)

Members who are general government employees not assigned to the regional transit system and below the level of department director, except as excluded below, are eligible to participate:

a.

A maximum of one position in the traffic signal technician (TST) classifications.

b.

A maximum of four positions in the planning division.

c.

If more than one eligible employee in a TST classification, or more than four eligible planning division employees apply by the end of the election period, the initially accepted TST or planning division employees will be determined on the basis of the earliest proposed termination date, then if necessary, the earliest submitted application among equal early termination dates. At this point, the city manager may accept additional eligible employees from the original TST or planning division applicant pools if, after a review of the TST or division workforce as it would be constituted following the separation of the initially accepted employees, the city would, even with the loss of one or more additional personnel, suffer only a minimal loss of productivity based upon the ability to train other existing employees, or readily hire new employees (at or near the minimum of any applicable pay range) to provide any necessary skill sets. The number of additional eligible employees, if any, who may be accepted in the program will be determined as described above. If there are more eligible employees from the original applicant pool(s) than additional openings in the program as described in subsection a. or b. above, the criteria for selection will be as follows with the lowest scoring employee being eligible for the additional opening(s):

1.

Demonstrates broad knowledge of TST or division operations;

2.

Achieves accurate results through speed and decisiveness; and

3.

Communicates openly and effectively.

(n)

Temporary service prior to regular employment. A member who was actively employed on December 11, 2009, or thereafter as a regular employee, and is not receiving, as of September 15, 2010, a termination or retirement benefit, or then participating in the DROP, may have the months(s') that the member was employed as a full-time temporary employee with the city, added to his/her years of credited service, notwithstanding subsection 2-523(d), provided that:

(1)

The incident(s) of temporary employment sought to be added is/are each a minimum of six continuous months, ending no more than 30 days preceding a period of regular employment with the city for which credited service has been granted, or in the case of consecutive incidents of temporary employment (no break in service of more than 30 days), the last of which ended no more than 30 days preceding a period of regular employment with the city for which credited service has been granted.

(2)

The member contributes to the fund an actuarially determined amount so that service purchased pursuant this subsection (n) does not result in increase to the city's contribution to the plan. For purposes of purchasing service, the plan will accept cash or a transfer of all or part of a member's account in the City of Gainesville's 457 Deferred Compensation Plan or 401(a) defined contribution plans, and will accept rollover contributions and/or direct rollovers of distributions (including after tax contributions) made after December 31, 2001, that are eligible for rollover in accordance with Section 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), or 457(e)(16) of the Internal Revenue Code, from of the following types of plans: (1) a qualified plan described in Section 401(a) or 403(a) of the Code; (2) an annuity contract described in Section 403(b) of the Code; (3) an eligible plan under Section 457(b) of the 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; and (4) an individual retirement account or annuity described in Section 408(a) or 408(b) of the Code (including SEP's and Simple IRA's after two years of participation in the Simple IRA). The amount distributed from such plan must be rolled over to this plan no later than the 60 ^th day after distribution was made from the plan, unless otherwise waived by the IRS pursuant to Section 402(c)(3) of the Code. The plan shall absorb the cost of professional services for obtaining one actuarial estimate for a member. Any subsequent estimates shall be paid for in advance by the requesting member.

(3)

Purchase of credited service attributable full-time temporary employment prior to regular employment shall be for each entire incident of temporary employment sought to be purchased. In the case of a member not actively employed as a regular employee on October 7, 2010, and a member/regular employee actively employed on October 7, 2010, who has satisfactorily completed his/her initial probation period prior to October 7, 2010. such member(s) shall have 60 days from November 1, 2010, to purchase any and all eligible incidents of temporary employment ending prior October 7, 2010. In the case of eligible incidents of temporary employment ending after October 7, 2010, or in the case of a member who has not completed his/her initial probation period by October 7, 2010, such must be purchased within 60 days of the member vesting in the plan.

(4)

Payment by the member of the required amount shall be made in one lump sum payment, upon receipt of which credited service shall be given, except as provided in subsection (5) below.

(5)

Except as provided in subsection (6) below, service for which payment has been made pursuant to subsection (4) above shall not be deemed credited service under the plan until such date that the member is otherwise eligible for normal retirement under section 2-526(a)(l) or has reached age 55. In the event a member (or his or her beneficiary) begins receiving an amount under section 2-526(a)(3) or a benefit under Division 6 of Article VII of Chapter 2 (Disability Pension Plan Benefit), the payments made pursuant to subsection (4) above shall be returned to member or beneficiary without interest at such time and no credited service given for the temporary employment.

(6)

Service may be purchased, and credited, or previously purchased service credited, in advance of retirement eligibility as described in subsection (5) above under the following circumstances: When a member who is a regular employee at time of death has at least 80 percent of the credited service, including sick leave or PCLB, necessary for normal or early retirement, and meets the applicable age requirements for such, if any. In this circumstance, purchased temporary service shall be credited if such service, including any additional service purchased as described in the following sentence, would result in the member's beneficiary becoming entitled to receive an annuity benefit. If service so eligible for purchase existed, but was not purchased prior to death, the member's beneficiary shall have 90 days following the date of death of the member to purchase the service necessary to receive an annuity.

(7)

The maximum credit purchased under this subsection (n) shall be four years.

(8)

Credited service purchased pursuant to this subsection (n) shall count for all purposes under the plan.

(9)

Purchase of credited service for temporary service prior to regular employment may not be requested unless the member has already earned at least five years of credited service at the time of the request.

(Code 1960, § 20-40.3; Ord. No. 3140, § 3, 6-24-85; Ord. No. 3587, § 1, 1-8-90; Ord. No. 950189, § 1, 6-26-95; Ord. No. 951232, §§ 2, 3, 4-8-96; Ord. No. 951521, § 1, 6-10-96; Ord. No. 980761, §§ 1, 2, 3-8-99; Ord. No. 981266, § 23, 7-12-99; Ord. No. 990595, § 1, 12-13-99; Ord. No. 991457, §§ 2, 3, 6-26-00; Ord. No. 002141, §§ 1, 2, 2-25-02; Ord. No. 020464, § 1, 10-28-02; Ord. No. 060829, § 1, 2-12-07; Ord. No. 090114, § 1, 8-20-09; Ord. No. 090829, § 1, 5-6-10; Ord. No. 090969, § 1, 10-7-10; Ord. No. 120218, § 2, 9-10-12; Ord. No. 130122, § 3, 9-19-13; Ord. No. 140657 , § 1, 2-19-15; Ord. No. 150213 , § 1, 4-21-16)