CITY OF LEESBURG FIREFIGHTERS' RETIREMENT PLAN SUMMARY PLAN DESCRIPTION Pursuant to Section 112.66, Florida Statutes 1. Introduction. The following summary is a brief description of the City of Leesburg Firefighters Retirement Plan, which consist of ordinances of the City of Leesburg. Please keep in mind that this Summary Plan Description is a summary only and it is not meant to interpret, extend, or change the provisions of the Firefighters' Retirement Plan. This Summary Plan Description may be changed from time to time. If there are any conflicts between the information contained in this Summary Plan Description and the actual provisions of the Firefighters Retirement Plan, the Plan will govern. The Plan is also administered in accordance with state and federal laws. A copy of the codified ordinances that governs the Firefighters Retirement Plan can be obtained from the attorney for the Board of Trustees, James B. Loper, 15438 N Florida Ave #101, Tampa, Florida 33618, (813) 964-0577, e-mail address of jloper@loperlaw. 2. The Name and Type of Administration of the Plan. The City of Leesburg Firefighters Retirement Plan is a governmental defined benefit plan created by ordinances of the City of Leesburg. The administration of the plan is conducted by a board of trustees consisting of five (5) persons. The Plan is also subject to the provisions of Sections 112.60-112.67, Florida Statutes, cited as the "Florida Protection of Employee Retirement Benefits Act"; and certain provisions of Chapter 175, Florida Statutes. 2059. 3. The Name and Address of the Person Designated as Agent for the Service of Process. The person designated as agent for the service of legal process is James B. Loper, Attorney for the Board of Trustees, 15438 N Florida Ave #101, Tampa, Florida 33618-2059. 4. The Name and Address of the Administrator. The Board of Trustees has the ultimate responsibility for the administration of the retirement plan. The Board of Trustees address is City of Leesburg Firefighters' Retirement Plan, PO Box 493258, Leesburg Fl 34749. The Board of Trustees is assisted by its general counsel, James B. Loper, Landmark Office Center, 14310 N. Dale Mabry Hwy., Suite 290, Tampa, Florida 33618; as well as by the Board's actuary, investment manager, custodial bank and professionally qualified independent consultant. 5. The Names, Titles and Addresses of the Trustees.
The names, titles and business addresses of the five (5) trustees are: 1. Walter Roenbeck, Chair 2. Kenneth Reinhart, Secretary 3. Steve Allen, Trustee 4. Ronnie Goeler, Trustee 5. John Kriete, Trustee The business address for each trustee in their capacity as trustee is City of Leesburg Firefighters' Retirement Plan, PO Box 493258, Leesburg Fl 34749. 6. A Description of the Relevant Provisions of any Collective Bargaining Agreement. The City shall continue to contribute monthly into the municipal firemen s retirement plan for the City of Leesburg on each employee covered by the Collective Bargaining Agreement in accordance with requirement of the Plan, and with the approval of the City Commission. 7. The Plan's Requirements Respecting Eligibility for Participation and Benefits. a. Eligibility for Participation. Any actively employed full-time person employed by the City of Leesburg, who is certified as a Firefighter as a condition of employment in accordance with Section 633.35, Florida Statutes, and whose duty it is to extinguish fires, to protect life and to protect property, is a member of the City of Leesburg Firefighters' Retirement Plan, including during the initial probationary employment period. b. Eligibility for Benefits. (1) Normal Retirement Benefits. A firefighter vests upon completion ten (10) years of credited service as firefighter. After separation from employment as a firefighter, payment of benefits commence on the first day of the month following the completion of both twenty-five (25) years of credited service and the attainment of age 52, or attainment of age fifty-five (55), whichever comes first. (2) Early Retirement Benefits. After completion of ten (10) years of credited service as a firefighter, a member may separate from employment and start receipt of retirement benefits after attaining the age of fifty (50). However, the monthly retirement benefit is actuarially reduced for each month that payment of retirement benefits commences prior to the time that the member would have attained age fifty-five (55). (3) Pre-Separation Death Benefits. Paid regardless of years of service, based on a formula. 2
(4) Disability Benefits. A member is eligible for disability benefits if the member becomes totally and permanently disabled while an active member of the city fire department to the extent that the he/she is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a firefighter. To be eligible for line of duty disability benefits, the disability must be directly caused by the performance of his or her duty as a firefighter. A member is eligible for line of duty disability benefits and non-line of duty disability benefits regardless of years of service. (5) Cost of Living Increase. On October 1, 2009 and every three (3) years thereafter the Board of Trustees reviews the possibility of granting a Cost-of- Living increase, not to exceed 3% per year (maximum of those three (3) years), to those Participants that have been retired under the Normal Retirement provision of the Plan for three (3) years or more. If the results of such review indicates to the Board of Trustees that the additional liability could be added without having an effect on the current funding of the Plan then the Board of Trustees may vote to increase the monthly income payments payable to such Participants or provide for a one time payment and submit the information to the City Commission for its approval. Additionally, any Participant that retires under the Normal Retirement provisions of the Plan on or after January 1, 2011 and before the attainment of age 65 shall be entitled to a monthly Supplemental Retirement Income of $10.50 per month per year of Credited Service. The Supplemental Retirement Income payments shall be payable commencing with the payment of monthly retirement benefits for Normal Retirement, Early Retirement, or Disability Retirement for one hundred fifty-six (156) monthly payments, or until Participants death, whichever comes first. (6) SHARE Program. Generally stated, firefighters who were employed during the period of January 1, 1998 December 31, 2007, received a share of the excess state premium tax monies collected January 1, 1998 December 31, 2007. Additional Excess Premium Tax Moneys received after 10/01/2008 will be allocated with 10% to retired firefighters and 90% to active firefighters. After retirement, the firefighter will receive his allocated share of the excess premium tax monies with interest at the fund s net investment return (positive or negative) less administrative expenses. 8. A Description of the Provisions Providing for Nonforfeitable Pension Benefits. Contributions and retirement benefits are not assignable or subject to garnishment for debt, execution, or other legal process. However, authorized deductions include: a. Federal income tax withholdings. 3
b. Deductions for premiums for health, long term health care and other types of insurance. c. Repayment of overpayments of retirement benefits. d. Payment to an alternate payee for alimony or child support pursuant to an income deduction order under Section 61.1301, Florida Statutes. e. Federal income tax levies. 9. The Circumstances Which May Result in Disqualification, Ineligibility, or Denial or Forfeiture of Benefits. Retirement benefits are subject to forfeiture pursuant to Section 112.3173, Florida Statutes, titled "Felonies involving breach of public trust and other specified offenses by public officers and employees; forfeiture of retirement benefits". Retirement benefits may be subject to forfeiture pursuant to Section 175.191, Florida Statutes, titled "False, misleading, or fraudulent statements made to obtain public retirement benefits prohibited; penalty". 10. The Source of Financing of the Plan and the Identity of Any Organization Through Which Benefits Are Provided. Financing of the plan is from member contributions, state contributions made pursuant to Chapter 175, Florida Statutes, City of Leesburg contributions and from return on investments of the assets of the retirement system. The employer's contribution to the Retirement Fund is determined through annual actuarial studies prepared by the Board's actuary. The City is responsible for assuring that the Plan is actuarially sound. The Retirement Plan provides that employee contribution towards benefits is 6.5% of basic compensation. The employee contribution is deducted from each paycheck. The City implemented employer "pickup" of contributions effective October 1, 1991, thus all employee contributions thereafter is made on a pre-tax basis. Basic compensation is the total compensation actually paid to a Participant in a calendar year by the City, excluding any overtime pay, shift differential, commissions, bonus payments, accrued annual leave, accrued sick leave, accrued compensatory time, expense allowances, working out of class pay and all other extraordinary compensation, plus all tax deferred or tax exempt items of compensation. Once the Board of Trustees determines entitlement to benefits, checks or direct deposits are issued from the Trustees' custodial bank, Salem Trust. 11. The Date of the End of the Plan Year and Whether the Records of the Plan are Kept on a Calendar, Policy or Fiscal Year Basis. 4
September 30 is the end of the plan year. Records are kept on a fiscal year basis of October 1 September 30. 12. The Procedures to be Followed in Presenting Claims for Benefits Under the Plan and the Remedies Available Under the Plan for the Redress of Claims Which are Denied in Whole or in Part. The Trustees have adopted an "Application for Retirement Benefits" form, which form requires the firefighter to select the type of retirement (normal service retirement, early service retirement, or disability retirement). Persons requesting disability retirement must also complete "Application for Disability Benefits" form. The Trustees have also adopted a written "Disability Policy and Procedures", which must be complied with in connection with an application for disability benefits. All members and beneficiaries have the right to have their claim for benefits determined by the Board of Trustees. Timely adequate written notice is given to any member or beneficiary whose claim for benefits under the terms of the retirement system has been denied, setting forth the specific reasons for such denial. The Board of Trustees provides a quasi-judicial (due process) hearing before the Board of Trustees to any member or beneficiary whose claim for benefits is denied in whole or in part. 13. Citations to the Relevant Provisions of State or Local Law and Regulations Governing the Establishment, Operation, and Administration of the Plan. The provisions of the City of Leesburg Firefighters' Retirement Plan are contained in city ordinances which can be obtained from the City Clerk, or from the Board of Trustees General Counsel, James B. Loper. The plan is also subject to the provisions of Sections 112.60 112.67, Florida Statutes, cited as the "Florida Protection of Public Employee Retirement Benefits Act", and applicable provisions of Chapter 175, Florida Statutes, cited as "Marvin B. Clayton Firefighters Pension Trust Fund Act". 14. A Description of Those Provisions Which Specify Conditions Under Which Pension Benefits Become Vested Pension Benefits. A member who has ten (10) years or more of credited service upon termination shall be entitled to a monthly retirement benefit determined in the same manner as for normal or early retirement. A member who has less than ten (10) years of credited service upon termination is entitled to a refund of his/her accumulated contributions, or may leave the contributions with the retirement system pending re-employment. For a service pension, a member needs ten (10) years of credited service to become vested. For a line of duty disability pension, and a non-line of duty disability pension, a member needs no years of service and vests upon being determined to be disabled by the Board of Trustees. 5
For a line of duty death pension or a non-line of duty death pension, a member needs no years of service. 15. A Report of Pertinent Financial and Actuarial Information on the Solvency and Actuarial Soundness of the Plan. On a quarterly basis, the Board of Trustees' investment manager provides a written report as to the retirement system's investment status. Also on a quarterly basis, the Board of Trustees' professionally qualified independent consultant provides a written performance evaluation evaluating the investment manager. On a yearly basis, the Board of Trustees' actuary provides a written actuarial valuation as of October 1, which report establishes the contribution requirements of the plan and is pursuant to Chapters 112 and 175, Florida Statutes. The retirement system is funded on a sound actuarial basis. Copies of these reports are available to the public upon request pursuant to Florida's public records law. 16. Benefit Calculation for Normal Retirement Benefit. A member of the Department who has 10 or more years of credited service is entitled to an amount equal to the number of the member's years of credited service multiplied by 3.0% multiplied by the member's average monthly compensation, with payment accruing on the 1st of the month after age 55, and paid at the end of the month.. Average Monthly Compensation is determined by computing the average monthly compensation of the member's three (3) successive calendar years of credited service out of the last 5 calendar years. 17. Normal Form of Payment 120 Monthly Payments Guaranteed. A member who retires or dies with 10 or more years of credited service, or a member who retires on line of duty disability regardless of years of service, the member and/or the member's designated beneficiary, are guaranteed 120 monthly payments at 100% of the member's earned pension, unless the member has elected and started receipt of the life only payment option or the joint pensioner payment option. 18. Forms of Payment of Retirement Benefits. The retiring member must select how retirement benefits are to be paid. Prior to receipt of the first monthly retirement payment, a member shall select the retirement benefits to which the member is entitled in accordance with one of the following: 6
NORMAL FORM OF PAYMENT A monthly benefit payable to the retired member for his/her lifetime. In the event the member dies before benefits are received for at least 120 monthly payments, the same monthly benefit is payable to the member's designated beneficiary(ies) until the total number of years of benefit payments to both the retired member and beneficiary(ies) equals 120 monthly payments. The benefit to the beneficiary stops at the end of 120 monthly payments and there are no further payments to the beneficiary(ies). A trust could be designated as a beneficiary. OPTION 1 An increased monthly benefit payable to the retired member for member's lifetime. Upon the member s death, the benefit will cease and member's beneficiary(ies) will receive only a refund of contributions the member paid in excess of the amount the member received in benefits, if any. This option does not provide a continuing benefit to a beneficiary or joint pensioner. This is the maximum monthly benefit payable to a retiring member for life. To provide a survivor with a monthly benefit after the member s death, one of the other options should be considered. OPTION 2 - A reduced monthly benefit payable to the retired member and a joint pensioner containing 4 sub-options. Upon the death of the retired member: [A] the same monthly benefit (100%) is payable to the joint pensioner for the joint pensioner's lifetime; or [B] The monthly benefit is reduced to 75%, and is payable to the joint pensioner for the joint pensioner's lifetime; or [C] The monthly benefit is reduced to 66-2/3%, and is payable to the joint pensioner for the joint pensioner's lifetime; or [D] The monthly benefit is reduced to 50%, and is payable to the joint pensioner for the joint pensioner's lifetime. A participant may change his joint pensioner at any time without the consent of the joint pensioner. However, the monthly benefit will be actuarially re-determined. The benefit payable under OPTION 1 or the four ([A]-[D]) sub options under OPTION 2 shall be the actuarial equivalent of Normal Form of Payment and based upon the actuarial adopted tables. OPTION 3 In addition to the previous form of payment elected, a partial lump sum distribution, not to exceed the amount of the participant s contributions without interest, may also be requested. If approved, the remaining monthly benefits otherwise payable under the previous form of payment selected will be actuarially reduced. PLEASE NOTE ONCE BENEFITS COMMENCE, SERVICE MAY NOT BE ADDED AND OPTION SELECTED MAY NOT BE CHANGED. HOWEVER, A MEMBER MAY CHANGE THE DESIGNATED BENEFICIARY(IES) UNDER THE NORMAL FORM OF 7
PAYMENT; AND MAY CHANGE THE JOINT PENSIONER UNDER OPTION 2 UNDER CERTAIN CONDITIONS. RETIREMENT OPTION SELECTED IS FINAL WHEN THE FIRST BENEFIT CHECK IS RECEIVED. BENEFITS ARE PAYABLE ON THE LAST DAY OF THE MONTH FOR THE CURRENT MONTH. 19. Pre-Separation Death Designation of Beneficiary. In the event of death prior to separation, all active members should sign and file with the Board of Trustees by delivery to Sonja Vicchiollo, Leesburg Fire Department, the following approved form: (a) Pre-Separation Death Designation of Beneficiary Form for Monthly Benefits. A member should sign and submit this form to Sonja Vicchiollo, Leesburg Fire Department. It is the member's responsibility to keep this form current. This form may be changed at any time by signing a new form and filing such with Sonja Vicchiollo, Leesburg Fire Department. At the time of separation, a member must sign an Application for Retirement Benefits which also provides for a designation of whom shall receive any benefits, if any, upon the death of the member. 20. Additional Information. (1) Military Service After Initial Employment. Effective for firefighters in the employ of the City on or after October 1, 2008, for military service after initial employment with the Leesburg Fire Department, a member is entitled to credited pension service while the member is absent from duty with the Department because of active military service after March 12, 1999 up to a maximum of five (5) years if: a. The member is entitled to reemployment under Uniformed Services Employment and Re-employment Rights Act, and b. The member returns to employment as a firefighter with the Leesburg Fire Department within one (1) year of release from active military service. The member is not required to make any pension contributions to obtain this credited pension service for this military service. NOTE: Military service completed prior to employment with the Department does not count toward years of service for retirement from the Department. 8
(2) Summary of Pension Ordinances. The retirement plan was completely restated by Ordinance No. 00-47, passed 9/25/2000, effective 04/01/2000, since then, there have been seven (7) amendments to the retirement plan. Amendment One by Ordinance No. 04-55, passed 08/09/2004, effective 10/01/2003, which increased the amount of supplement retirement income. Amendment Two by Ordinance No. 08-10, passed 01/28/2008, relating to beginning date of employee contributions. Amendment Three by Ordinance No. 08-102, passed 12/08/2008, effective October 1, 2008, which adopted minimum standards required by Florida Statutes, Chapter 175. Amendment Four by Ordinance No. 08-103, passed 12/08/2008, effective October 1, 2008, which created a SHARE program. Amendment Five by Ordinance No. 10-20, passed 02/22/2010, effective October 1, 2009. Amendment Six by Ordinance No. 10-51, passed 07/12/2010, effective January 1, 2010. Amendment Seven by Ordinance No. 11-20, passed 03/14/2011, effective January 1, 2011. Amendment Eight by Ordinance No. 15-31, passed 09/14/2015, effective August 1, 2015. Amendment Nine by Ordinance No. 17-22, passed 05/22/17, effective May 22nd, 2017 Those pages from the latest Actuarial Valuation titled "SUMMARY OF PLAN PROVISIONS" are attached hereto. 9