§ 16-64. Definitions.

For the purpose of this article, the following terms shall have the meanings hereinafter set forth:

(a)

Average final compensation means the average annual compensation of the highest two (2) years of annual pay received by a member in the last five (5) years immediately preceding retirement, termination, or death. A member must, however, have been in his or her present pay grade for a minimum of six (6) months prior to retirement before the annual pay for that pay grade is used in calculating final compensation for accumulated leave. If a member has not been in his [or her] present pay grade for a minimum of six (6) months as stated above, final compensation for accumulated leave shall be calculated at the annual rate of pay said member was receiving before advancement to present pay grade. For persons who first become members of the retirement system on or after October 1, 1979, "annual pay" 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 "eligible employees" shall be not less than the amount which was allowed to be taken into account under the system as in effect on July 1, 1993. For this purpose, an eligible employee is an individual who is a member of the retirement system before September 30, 1996. The effective date of this section shall be October 1, 1995.

(b)

Actuarial equivalence or actuarially equivalent shall mean that any benefit payable under the terms of the pension fund in a form other than the normal retirement pension shall have the same actuarial present value on the date payment commences as the normal retirement pension. For purposes of establishing the actuarial present value of any form of payment, all future payments shall be discounted for interest and mortality by using six-per-cent interest and the 1951 Group Annuity Mortality Table for Males, projected to 1970, with ages set ahead five (5) years in the case of disability retirees.

(c)

Board of trustees or board means the board of trustees of the Lake Worth Firefighters Pension Trust Fund.

(d)

City means the City of Lake Worth.

(e)

City commission means the city commission of the City of Lake Worth.

(f)

(1)

Credited service means the total number of years, and fractional parts of years, of service expressed as years and completed months, during which a person serves as a duly appointed and enrolled firefighter in any rank or capacity whatever in said city, omitting intervening years and fractional parts of years, when such firefighter may not be employed by the city, but including all service as a "paid volunteer" firefighter for the city; provided, however, such person may have without interrupting his or her years of credited service, up to one (1) year's leave of absence.

(2)

Notwithstanding the foregoing, no firefighter will receive credit for years or fractional parts of years of service for which he or she has withdrawn his or her contributions to the pension fund for those years or fractional parts of years of service unless the firefighter repays into the pension fund the contributions he or she has withdrawn, with interest.

(3)

Further, a firefighter may voluntarily leave his or her contributions in the pension fund after leaving the employ of the fire department, pending the possibility of his or her being rehired by the fire department without losing credit for the time he or she has participated actively as a firefighter. If he or she does not become reemployed as a firefighter his or her contributions shall be returned to him or her without interest, unless the member is otherwise vested in the plan.

(4)

It is provided further, that any service, voluntary or involuntary, in the armed forces of the United States during a period of national emergency, provided the firefighter is legally entitled to reemployment under the provisions of the universal training and service act or any similar law; and provided further that said firefighter shall apply for reemployment within the time prescribed by law and in the manner and under the conditions prescribed, shall not interrupt his or her years of credited service, and all years of such military service shall count as credited service for purposes of retirement. For any person who becomes a member of the retirement system on or after October 1, 1978, such military service shall not be credited if he or she is receiving or will receive in the future a retirement benefit from the federal government based in whole or in part on such military service.

(5)

Credited service may include any prior service as a temporary employee of the city subsequent to November 1, 1967, upon:

(i)

The board's determination that such time spent as a temporary employee is creditable service, but in no case shall less than ten (10) days' service in a calendar month constitute a month of service, nor shall less than nine (9) months' service in a calendar year constitute a year of service, nor shall more than one (1) year of service be creditable for all service rendered in one (1) calendar year; and

(ii)

For temporary service prior to October 3, 1976, a deposit into the pension fund of a sum equal to five (5) percent of the employee's earnings as a temporary employee during that period for which credit is sought, plus interest thereon at the rate of five (5) percent compounded annually from the date of temporary service until the date of deposit into the pension fund. For temporary service after October 3, 1976, a deposit into the pension fund of a sum equal to six (6) percent of the employee's earnings as a temporary employee, plus interest thereon at the rate of five (5) percent compounded annually from the period of temporary service until the date of deposit into the pension fund.

(6)

Notwithstanding any of the foregoing, a maximum of five (5) members who, as of October 15, 1993, lack eighteen (18) or fewer months of credited service in order to be eligible for normal retirement under section 16-74 hereof, may apply to purchase up to eighteen (18) months of additional credited service under the following terms and conditions:

(i)

The application must be received by the city clerk no later than 5:00 p.m. on October 15, 1993;

(ii)

The purchase price for such additional creditable service shall be based upon the employee contribution rate and the member's compensation as of August 31, 1993;

(iii)

The purchase price shall be paid in full by the member to the retirement system by the date on which the member retires;

(iv)

As a condition of purchasing the additional creditable service, the member shall make an irrevocable application to the retirement system for regular retirement on a date designated by the city manager which must be between October 15, 1993 and March 31, 1994 and shall retire on the date so designated unless the retirement date is extended by the mutual agreement of the member and the city manager; and

(v)

If more than five (5) members timely apply for early retirement incentives, then only the applications of the five (5) applying members with the highest ranks within the fire department shall be granted; should members of the same rank or job classification apply, then eligibility shall be determined first by the highest base pay, and second by the greatest amount of creditable service (before the purchase of additional creditable service).

(7)

Notwithstanding any of the foregoing, credited service may include the years or fractional parts of years that a member serves or has served in full-time, active duty in the military service of the Armed Forces of the United States of America (Army, Navy, Air Force, Marines, Coast Guard, National Guard, Reserves, U. S. Public Health Service), voluntarily or involuntarily, prior to first or initial employment with the city, provided that:

(i)

The member did not receive a dishonorable discharge from the armed forces; and

(ii)

The member did not receive credited service for the time spent in the armed forces from any other governmental or military retirement or pension system; and

(iii)

The member contributes to the fund the full actuarial cost of all service credits purchased; and

(iv)

The purchase of credited service under this section by a member shall be paid in full prior to the member's retirement date, and in accordance with all terms, rules, procedures or regulations established by the board of trustees; and

(v)

The maximum credit which may be purchased by a member for any military service in the Armed Forces of the United States of America, under this section shall be four (4) years.

(vi)

All credited service purchased pursuant to this section shall count toward vesting.

(8)

Payment by rollover. The member contribution for military buy-back may be made by rollover from another qualified plan or individual retirement account.

(9)

Purchase of prior fire service credit. At any time prior to retirement or entry into the DROP, members shall be permitted to purchase all prior years of creditable service as a full-time firefighter employed by another city, county, state, federal or other public agency. Members purchasing service credit shall provide the board of trustees with proof of the prior service. No service credit may be purchased if the member is receiving or will receive any other retirement benefit based on this service. The board shall establish a uniform rule for the implementation of this provision.

Prior service shall not be granted until the member has paid to the pension fund the full actuarial cost, as determined by the actuary for the plan.

The contribution by the member of the actuarially determined cost of the buyback may be made by rollover, by lump sum cash payment, or may be made by payroll deductions in installments for a period of time which shall not exceed the number of years being purchased. A member electing to make installment payments shall be charged interest based on the actuarially assumed rate of return for the plan. A member taking installment payments shall complete all required payments prior to payment of any benefit under this section. A member who terminates service prior to vesting in the plan shall be entitled to a refund, without interest, of all money paid to buyback prior fire service.

(g)

Fire department means the fire department of the city.

(h)

Firefighter means any person employed in the fire department who is certified as a firefighter as a condition of employment in accordance with the provisions of Section 633.35, Florida Statutes, and whose duty it is to extinguish fires, to protect life, and to protect property. Firefighter shall not include any person hired by an individual contract of employment.

(i)

Pension fund or retirement system means the Lake Worth Firefighters Pension Trust Fund.

(j)

Plan year or limitation year means each twelve-month period ending on September 30th.

(Ord. No. 88-25, § 1, 10-17-88; Ord. No. 89-9, § 1, 5-15-89; Ord. No. 93-11, § 1, 6-1-93; Ord. No. 93-23, § 1, 10-5-93; Ord. No. 96-2, § 1, 2-6-96; Ord. No. 96-20, § 1, 7-2-96; Ord. No. 99-7, § 1, 3-16-99; Ord. No. 99-30, § 1, 11-16-99; Ord. No. 2002-10, § 1, 4-16-02; Ord. No. 2003-31, § 1, 9-16-03)