§ 16-25. Definitions.

(a)

Accumulated contributions. The term "accumulated contributions" shall mean the total of all amounts deducted from the compensation of a participant as required in section 16-40(b).

(b)

Actuarial equivalence or actuarially equivalent. "Actuarial equivalence" or "actuarially equivalent" shall mean that any benefit payable under the terms of this plan in a form other than the normal form of benefit shall have the same actuarial present value on the date payment commences as the normal form of benefit. For purposes of establishing the actuarial present value of any form of payment, other than a lump sum distribution, all future payments shall be discounted for interest and mortality by using seven (7) percent interest and the 1983 Group Annuity Mortality Table for Males, with ages set ahead five (5) years in case of disability retirees. In the case of a lump sum distribution, the actuarial present value shall be determined on the basis of the same mortality rates as just described and the Pension Benefit Guaranty Corporation's interest rates for terminating single employer plans which rates are in effect: (a) ninety (90) days prior to the participant's date of termination if distribution is made within six (6) months of such date of termination, or (b) ninety (90) days prior to the distribution date if distribution is made later than six (6) months after the participant's date of termination.

(c)

Average final compensation. For purposes of service accruals earned prior to October 1, 2010, "average final compensation" shall mean one-twelfth ( 1/12 ) of the average of the highest annual pay received by a participant during a period of two (2) consecutive years of service contained within his ten (10) years of service immediately preceding September 30, 2010. For purposes of service accruals earned subsequent to September 30, 2010, "average final compensation" shall mean one-twelfth ( 1/12 ) of the average of the highest annual pay received by a participant during a period of five (5) consecutive years of service contained within his ten (10) years of service immediately preceding retirement. For persons who first become participants of the retirement system on or after October 1, 1979, average final compensation shall exclude payments for all accumulated leave, compensatory time and overtime.

Compensation in excess of the limitations set forth in section 401(a)(17) of the Internal Revenue Code shall be disregarded. The limitation on compensation for an employee who was a participant of this fund on or before October 1, 1996, shall not be less than the amount which was allowed to be taken into account under this division as in effect on July 1, 1993.

(d)

Board of trustees. The term "board of trustees" shall mean the trustees designated in this ordinance, and any successor trustees selected as provided therein, acting in a group as the administrator of this pension plan.

(e)

City. The term "city" means the City of Lake Worth, Florida, a municipal corporation.

(f)

Compensation. The term "compensation" shall mean all salary paid to an employee within the meaning of IRC Section 415(c)(3). For persons who first became participants of the retirement system on or after October 1, 1979, "compensation" shall exclude payments for all accumulated leave, compensatory time and overtime.

(g)

Covered employment. The term "covered employment" shall mean service for which an employee is obligated to pay contributions to this pension plan.

(h)

Employee. The term "employee" shall mean all full-time employees of the city, except:

(1)

Firefighters;

(2)

Police officers;

(3)

Persons compensated on a fee or contractual basis;

(4)

The city manager, unless participation in this retirement system is so provided in the city manager's contract or compensation resolution, and the assistant city manager(s);

(5)

The city attorney, his or her deputies and assistants, unless participation in this retirement system is so provided in the person's contract or compensation resolution;

(6)

City commissioners and the mayor;

(7)

Elected officials;

(8)

Temporary or emergency employees, unless participation in this retirement system is so provided in the person's contract or compensation resolution, unless the person was formerly a participant in this retirement system and participation in this retirement system is so provided in the contract;

(9)

Part-time employees;

(10)

Persons whose city compensation in a period of three (3) consecutive years' averages less than four hundred dollars ($400.00) per year;

(11)

Non-interim and non-acting department directors and assistant directors;

(12)

The city clerk and the deputy city clerk; and

(13)

The internal auditor.

(i)

Highly compensated employee. The term "highly compensated employee" shall mean an employee described in IRC section 414(q) and the regulations thereunder and generally means an employee, whether or not employed during the "determination year", who received "415 Compensation" during the "look-back year" from the city in excess of eighty thousand dollars ($80,000.00), and was in the "top paid group" of employees for such "look-back year."

The "determination year" shall be the plan year for which testing is being performed, and the "look-back year" shall be the immediately preceding twelve-month period.

"Top paid group" means the top twenty (20) percent of the employees who performed services for the city during the applicable year ranked according to the amount of "415 Compensation" received from the city during such year. For the purpose of determining the number of active employees in any year, the following employees shall be excluded; however, such employees shall still be considered for the purpose of identifying the particular employees in the "top paid group":

(1)

Employees with less than six (6) months of service;

(2)

Employees who normally work less than seventeen and one-half (17½) hours per week;

(3)

Employees who normally work less than six (6) months during a year; and

(4)

Employees who have not yet attained age twenty-one (21).

The foregoing exclusions set forth in this section shall be applied on a uniform and consistent basis for all purposes for which the IRC section 414(q) definition is applicable.

The foregoing shall not apply if section 415 of the Internal Revenue Code is made inapplicable to this plan either by statute or regulation.

(j)

Married:

(1)

The term "married" means a participant who is married on the date of receipt of pension benefits; or

(2)

A participant shall also be considered "married" if the participant dies before receipt of such benefits, participant was married on the date of the participant's death.

(k)

Maternity or paternity leave:

(1)

[ Reasons for leave. ] The term "maternity or paternity leave" means a participant's absence from work by reason of:

a.

The pregnancy of the participant; or

b.

The birth of a child of the participant; or

c.

The placement of a child with the participant in connection with the adoption of such child by the participant; or

d.

The caring for such child by the participant for a period beginning immediately following such birth or placement.

(2)

Crediting hours of leave. Solely for purposes of determining whether a break in service has occurred as provided in subsection 16-28(a) (breaks in service), and not for purposes of vesting or benefit accrual, a participant who is absent from work in covered employment due to maternity or paternity leave shall be credited with the hours of service which otherwise would normally have been credited to the participant but for such absence, not to exceed three (3) months per plan year.

(3)

Crediting period. The hours of service absent from work due to maternity or paternity leave shall be credited, solely for purposes of excusing a break in service:

a.

During the plan year in which the absence began if the crediting of those hours is necessary to prevent a break in service in that plan year, or, in all other cases;

b.

In the next following plan year.

(l)

Pension. The term "pension" or "pension benefit" shall mean an early retirement benefit, a normal retirement benefit, a death benefit or a disability retirement benefit.

(m)

Pension plan. The term "pension plan" shall mean the City of Lake Worth Employees' Police Retirement System.

(n)

Plan year or limitation year. The terms "plan year" and "limitation year" shall mean the twelve-month period from October first to the following September thirtieth.

(o)

Retirement. The term "retirement" or "retired" shall mean the complete withdrawal of a participant from any further employment as an employee of the city.

(p)

Service:

(1)

The term "service" means years and completed months of continuous employment as an employee of the city, commencing on the date of hire, for which a person is paid, or entitled to payment, by the city:

a.

For the performance of duties; or

b.

For reasons other than the performance of duties, including vacations, holidays, temporary disability, illness, jury duty, military duty, administrative leave, paid leave or approved paid leave of absence; or

c.

As the result of backpay being awarded, or agreed to, by the city (irrespective of mitigation of damages), provided that participant contributions on such backpay amounts are received by the retirement system.

d.

The term "service" shall also mean time spent in the military service of the United States or United States Merchant Marine by the employee on leave of absence; provided that the employee must have re-entered the city's employment within one (1) year of date of release from such service.

e.

The term "service" shall also mean time spent in the military service of the United States or United States Merchant Marine by the employee prior to employment with the city; provided that the employee contributes to the fund the full actuarial cost of all such service, and complies with section 16-27(e) herein.

(2)

Noncovered employment. A person who is paid, or entitled to payment, by the city shall also be credited with service for purposes of participation, benefit eligibility, and breaks in service (but not for benefit computation purposes) based upon service in noncovered full-time employment for the city, provided that the person worked for the city full-time in covered employment immediately before or immediately after the noncovered employment, and further provided that no quit, discharge or retirement occurred between the covered employment and the noncovered employment.

(3)

Determination of amount of service. The amount of service shall be ascertained from the most accurate records available, including records of hours, work shifts, days or weeks for which payment is made or owing, as reported to the board of trustees. The board of trustees shall fix and determine how much service in any year is equivalent to one vesting credit; however, at least ten (10) days' service in a calendar month must constitute one (1) month's service and at least nine (9) months' service in a year shall constitute one year's service.

(4)

Crediting period. Service shall be credited for each year for which duties were performed, or if no duties were performed, then during the year for which the payment relates.

(q)

Vested. The term "vested" shall mean a non-forfeitable right to a pension benefit under this pension plan.

(Ord. No. 97-4, § 1, 2-18-97; Ord. No. 99-8, § 1, 4-6-99; Ord. No. 2003-24, § 1, 7-15-03; Ord. No. 2007-1, § 1, 1-16-07; Ord. No. 2010-19, § 4, 9-24-10; Ord. No. 2014-20, § 2, 7-1-14; Ord. No. 2017-07, § 3, 4-4-17)