§ 2-596. Definitions.

The following words and phrases used in this division shall have the meanings set forth below, unless a different meaning is plainly required by the context:

Accrued benefit shall mean, as of the date of termination or entry into the DROP, whichever is earlier, the member's monthly retirement benefit in an amount equal to 2.5 percent or 2.625 percent of final average earnings times credited service. Except as otherwise provided herein, credited service attributable to service prior to October 1, 2005 shall be multiplied by 2.5; credited service attributable to service from October 1, 2005 on, shall be multiplied by 2.625. For members who are police officers, credited service attributable to service prior to October 1, 2005 shall be multiplied by 2.5, credited service attributable to service from October 1, 2005 to June 30, 2013 shall be multiplied by 2.625, and credited service attributable to service from July 1, 2013 on, shall be multiplied by 2.5. For members who are firefighters, credited service attributable to service prior to October 1, 2005 shall be multiplied by 2.5, credited service attributable to service from October 1, 2005 to December 31, 2013 shall be multiplied by 2.625, and credited service attributable to service from January 1, 2014 on, shall be multiplied by 2.5.

Actuarial-equivalent or equivalent actuarial value shall mean a benefit of equivalent value to the benefit which otherwise would have been provided to the member, based on the 1994 Group Annuity Mortality Basic Table-Unisex 50/50 and an interest rate of 9.5 percent, unless otherwise specified in this ordinance.

Enrolled actuary shall mean an actuary who is enrolled under Subtitle C of Title III of the Employee Retirement Income Security Act of 1974 and who is a member of the Society of Actuaries or the American Academy of Actuaries.

Beneficiary shall mean a person, or persons designated to receive benefits payable in the event of a member's death.

Benefit determination date shall mean the date(s) upon which calculations of benefits are based when determining final average earnings and credited service.

Deferred retirement option program means an optional program of the City of Gainesville'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 regular DROP or reverse DROP.

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), working out of classification pay, longevity pay, State of Florida city firefighters supplemental education incentive payments, State of Florida police officer educational salary incentive payments, police security ("billable" overtime), special assignment pay, special duty assignment pay, paramedic certification pay, stand-by pay, call-back pay, acting out of classification pay, and termination vacation pay or for members entering a DROP any lump sum payment of some or all 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 July 1, 2013 by members who are police officers, no more than 300 hours of overtime pay (including "billable" overtime) per year earned on or after July 1, 2013 shall be included, nor shall termination vacation pay or any lump sum payment of a member's vacation balance upon entering DROP earned on or after July 1, 2013 be included. To calculate earnings for service earned on or after January 1, 2014 by members who are firefighters, no more than 300 hours of overtime pay (including "billable" overtime) per year earned on or after January 1, 2014 shall be included, nor shall termination vacation pay or any lump sum payment of a member's vacation balance upon entering DROP earned on or after January 1, 2014 be included. For any person who first becomes a member in any plan year beginning on or after January 1, 1996, compensation for any plan year shall not include any amounts in excess of the Internal Revenue Code § 401(a)(17) limitation (as amended by the Omnibus Budget Reconciliation Act of 1993), which limitation of $150,000.00 shall be adjusted as required by federal law for qualified government plans and shall be further adjusted for changes in the cost of living in the manner provided by Internal Revenue Code § 401(a)(17)(b). For any person who first became a member prior to the first plan year beginning on or after January 1, 1996, the limitation on compensation shall be not less than the maximum compensation amount that was allowed to be taken into account under the plan as in effect on July 1, 1993, which limitation shall be adjusted for changes in the cost of living since 1989 in the manner provided by Internal Revenue Code § 401(a)(17)(1991).

Effective date shall mean the date on which the operation of the plan is to commence.

Eligible employee shall mean any full-time regular employee who is certified as a firefighter as a condition of employment in accordance with the provisions of F.S. § 633.35, and whose duty it is to extinguish fires, to protect life, and to protect property, or any full-time regular employee who is certified or required to be certified as a law enforcement officer in compliance with F.S. § 943.14, who is vested with authority to bear arms and make arrests, and whose primary responsibility is the prevention and detection of crime or the enforcement of the penal, criminal, traffic, or highway laws of the state. This definition includes all certified, supervisory, and command personnel whose duties include, in whole or in part, the supervision, training, guidance, and management responsibilities of full-time law enforcement officers or firefighters, part-time law enforcement officers or firefighters, or auxiliary law enforcement officers or firefighters, but does not include part-time law enforcement officers or firefighters or auxiliary law enforcement officers or firefighters. Employees whose work is primarily secretarial or clerical are not classified as eligible employees. An otherwise eligible employee may elect to waive, in accordance with section 2-579, certain claims/rights arising under this plan, and become an ineligible employee as described in subsection 2-598(c)(1)a. Based on October 17, 2005 advice from the municipal members and firefighters trust funds office, a non-certified police officer or firefighter may be an eligible employee and earn credited service in the plan under the following circumstances: A non-certified employee that is hired in a firefighter or police officer position should be enrolled in the plan upon hire and earn credited service while so employed. If the employee fails to meet the certification requirements under F.S. chs. 633 or 943 within one year, then the employee's contributions should be refunded and the employee would be removed from the plan and would not receive credited service in the plan for that period of time. Such non-certified employee may not leave his/her contributions in the plan, nor later repay such refunded contributions for the purpose of obtaining credited service for that period, nor purchase credited service for such period pursuant to subsection 2-600(n).

Final average earnings shall mean:

(1)

The average of a member's monthly earnings for the 36 consecutive months which produces the highest average, as of the date of benefit determination, except as otherwise expressly provided herein. Final average earnings shall be determined by dividing the total earnings earned and received by the member during the applicable 36-month period by 36.

(2)

For a member whose most recent appointment to employment with the city as a police officer occurred on or after July 1, 2013, the average of a member's monthly earnings for the 48 consecutive months which produces the highest average, as of the date of benefit determination. Final average earnings shall be determined by dividing the total earnings earned and received by such member during the applicable 48-month period by 48.

(3)

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.

Firefighter shall mean any eligible employee who is certified as a firefighter as a condition of employment in accordance with the provisions of F.S. § 633.35, and whose duty it is to extinguish fires, to protect life, and to protect property. This definition includes all certified, supervisory, and command personnel whose duties include, in whole or in part, the supervision, training, guidance, and management responsibilities of full-time firefighters, part-time firefighters, or auxiliary firefighters, but does not include part-time firefighters or auxiliary firefighters.

Gross pay shall mean those types of compensation which as of July 1, 1999, have member contributions deducted therefrom. Types of compensation created, or first applied to members after July 1, 1999 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.

Member shall mean any eligible employee who participates in the plan pursuant to section 2-598.

Normal form of benefit shall be a monthly annuity, payable for the lifetime of the member, in accordance with the provisions of this division.

Plan shall mean the consolidated police officers and firefighters retirement plan, as set forth in this division, and as it may from time to time in the future be amended.

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

Police officer shall mean any eligible employee who is certified or required to be certified as a law enforcement officer in compliance with F.S. § 943.14, who is vested with authority to bear arms and make arrests, and whose primary responsibility is the prevention and detection of crime or the enforcement of the penal, criminal, traffic, or highway laws of the state. This definition includes all certified supervisory and command personnel whose duties include, in whole or in part, the supervision, training, guidance, and management responsibilities of full-time law enforcement officers, part-time law enforcement officers, or auxiliary law enforcement officers, but does not include part-time law enforcement officers or auxiliary law enforcement officers as the same are defined in F.S. § 943.10(6) and (8), respectively.

Retiree shall mean a former employee who has entered retirement status. A member who enters the DROP shall be considered a retiree for all purposes of the plan.

Retirement or retire shall mean a member's separation from city employment as an eligible employee with immediate eligibility for receipt of benefits under the plan. For purposes of the plan, "retire" also means the date a member commences the DROP.

Service credit rules shall mean the following:

(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 five years of the time spent in the military service of the Armed Forces of the United States shall be added to the years of actual service, if:

1.

The member is in the city's active employ as an eligible employee prior to such service and leaves such position for the purpose of voluntary or involuntary service in the Armed Forces of the United States.

2.

Such member is entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act.

3.

The member returns to his or her employment as an eligible employee within one year from the date of his or her release from such active service.

(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 such former member is subsequently reemployed by the city, the member's date of employment, for purposes of determining additional months of service, shall be reestablished as his/her date of reemployment.

(5)

Credited service shall mean the aggregate number of months of service with the city as an eligible employee, expressed in terms of full and fractional year, subject to the following:

a.

Additional months of service shall be credited for unused sick leave credits, assigning one day of service for each day of unused sick leave, unless otherwise expressly provided for herein, in applicable personnel policies, collective bargaining agreements, or DROP provisions. For service earned on or after July 1, 2013 by members who are police officers, no additional months of service shall be credited for unused sick leave earned on or after July 1, 2013. In calculating credited service on or after July 1, 2013, the lesser number of months between the additional months of service credited for unused sick leave earned on or before June 30, 2013 and months of unused sick leave available to members who are police officers at the time of their retirement shall be used. For service earned on or after January 1, 2014 by members who are firefighters, no additional months of service shall be credited for unused sick leave earned on or after January 1, 2014. In calculating credited service on or after January 1, 2014, the lesser number of months between the additional months of service credited for unused sick leave earned on or before December 31, 2013 and months of unused sick leave available to members who are firefighters at the time of their retirement shall be used. Additional months of service and fractions thereof, as determined by the city, shall be credited to members for periods of employment while a CETA employee. Additional months of service attributable to public safety and military service prior to employment may be credited pursuant to subsection 2-600(n).

b.

No member will receive credit for years or fractional parts of years of service if he or she has withdrawn his or her contributions to the fund for those years or fractional parts of years of service, unless the member repays into the fund the amount he or she has withdrawn, plus interest as determined by the board. The multiplier applied to such service, and interest payments associated with the repayment, shall utilize the multiplier in effect at the time repayment is made. The member shall have 90 days after his or her re-employment to make repayment, except if re-employed after March 1, 2004, but prior to June 12, 2007, in which case the member shall have three years and six months after his or her re-employment to make repayment.

c.

A member may voluntarily leave his or her contributions in the fund for a period of five years after ceasing to be an eligible employee, pending the possibility of his or her being rehired as an eligible employee, without losing credit for the time he or she has participated actively as a member. If he or she is not re-employed as an eligible employee within five years, his or her contributions shall be returned to him or her without interest.

(6)

Notwithstanding any provision of this plan to the contrary, effective as of December 12, 1994, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of the Internal Revenue Code of 1986, as amended, USERRA and F.S. chs. 175 and 185, as applicable.

Trust fund shall mean the cash and other assets accumulated, held and maintained by the board of trustees of the consolidated plan in accordance with this division, including individual accounts authorized under the DROP and the Supplemental Retirement Program for Police Officers.

(Code 1960, § 20-110.1; Ord. No. 3075, § 3, 11-19-84; Ord. No. 3127, §§ 1, 2, 5-13-85; Ord. No. 3342, § 1, 6-1-87; Ord. No. 3439, §§ 1—5, 6-20-88; Ord. No. 3528, §§ 1, 2, 3-27-89; Ord. No. 3545, §§ 1—3, 7-10-89; Ord. No. 3867, § 2, 6-7-93; Ord. No. 950189, § 3, 6-26-95; Ord. No. 970591, §§ 1, 2, 11-24-97; Ord. No. 981266, §§ 1—9, 7-12-99; Ord. No. 000050, § 1, 6-26-00; Ord. No. 020202, § 1, 9-9-02; Ord. No. 070012, § 1, 7-9-07; Ord. No. 120680, § 1, 6-20-13; Ord. No. 130203, § 1, 9-19-13; Ord. No. 130411, § 1, 12-5-13)

Editor's note

Section 27 of Ord. No. 981266 states: "Sections 1 and 2 of this ordinance are effective on July 1, 1999, provided, however, that the elimination of the Social Security offset to pension payments shall apply prospectively only, commencing with the July 1999 monthly benefit (payable August 1, 1999)."

Cross reference

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