§ 2-41. Definitions.

As used herein, unless otherwise defined or required by the context, the following words and phrases shall have the meanings indicated:

Accumulated contributions means a member's own contributions plus interest and contributions picked up on behalf of a member.

Actuarial equivalence or actuarial equivalent means that any benefit payable under the terms hereof 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, all future payments shall be discounted for interest and mortality by using seven (7) percent interest and the 1971 Group Annuity Mortality Tables for Males.

Agreement means this written instrument setting forth the provisions of the retirement system.

Average monthly earnings, effective October 1, 2003, for Tier One members, means one-twelfth ( 1/12 ) of the arithmetic average of annual earnings for the highest consecutive three (3) years of the ten (10) full years immediately preceding the actual retirement or termination date of a Tier One member; provided, that if a Tier One member shall have been employed for fewer than five (5) years such average shall be taken only over the period of his actual employment. Average monthly earnings for Tier Two members who retire with less than twenty-five (25) years of credited service shall mean one-twelfth ( 1/12 ) of the arithmetic average of annual earnings for the highest consecutive four (4) years of the ten (10) full years immediately preceding the actual retirement or termination date of a member. Average monthly earnings for Tier Two members who retire with twenty-five (25) years or more of credited service shall mean one-twelfth ( 1/12 ) of the arithmetic average of annual earnings for the highest consecutive three (3) years of the ten (10) full years immediately preceding the actual retirement or termination date of a member. Notwithstanding the foregoing, if a Tier Two member has been employed for fewer than five (5) years such average shall be taken only over the period of his/her actual employment.

Beneficiary means the person or persons entitled to receive benefits hereunder at the death of a member who has or have been designated in writing by the member and filed with the board. If no such designation is in effect at the time of death of the member, or if no person so designated is living at that time, the beneficiary shall be the member's estate.

Board means the board of trustees, which shall administer and manage the system herein provided and serve as trustee of the fund.

City means the City of Lauderhill, Florida.

City commission means the city commission of the City of Lauderhill, Florida.

Credited service means the aggregate number of years of service, and fractional parts of years of service, of any firefighter, omitting intervening years and fractional parts of years when such firefighter may not have been employed by the City of Lauderhill as a firefighter, subject to the following conditions:

(a)

No firefighter 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 firefighter repays into the fund the amount he or she has withdrawn, plus interest determined by the board. The member shall have at least ninety (90) days after his or her re-employment, or the passage date of this part, whichever is later, to make repayment.

(b)

A firefighter may voluntarily leave his or her contributions in the fund for a period of five (5) years after leaving the employ of the fire department, pending the possibility of being re-hired by the same department, without losing credit for the time he or she has participated actively as a firefighter. If the firefighter is not re-employed as a firefighter, with the City of Lauderhill, within five (5) years, his or her contributions shall be returned without interest.

(c)

The credited service of any member shall include

1.

Any authorized leave of absence or paid vacation not in excess of six (6) months, provided that all members similarly situated in similar circumstances shall be treated alike pursuant to uniform, nondiscriminatory rules.

2.

Any service, voluntary or involuntary, in-the Armed Forces of the United States, provided the member is legally entitled to re-employment under federal law applicable to such re-employment, and provided further, that the member must have re-entered the city's fire department as a firefighter within one (1) year of the date of service.

However, no credit for benefits under the system shall be allowed for any period of leave of absence in excess of five (5) years for military service or an excess of six (6) months for any other reason.

DROP means a Deferred Retirement Option Plan.

Earnings means the fixed monthly remuneration paid by the city to a firefighter. Compensation in excess of limitations set forth in Section 401(a)(17) of the Internal Revenue Code shall be disregarded.

Effective date means July 1, 1977, the date on which this division and system became effective.

Firefighter means any person employed by the City of Lauderhill Fire Department 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, or to protect property. However, for the purposes of this ordinance only, firefighter also includes public safety officers who are responsible for performing both police and fire services, who are certified as police officers or firefighters, and who are certified by their employers to the insurance commissioner and treasurer as participating in this chapter prior to October 1, 1979.

Fund or trust means the trust fund established herein as part of the system.

Member means a firefighter who fulfills the prescribed participation requirements.

Normal form of benefit means a monthly benefit which shall commence on the firefighter's normal retirement date and be paid on the first day of the month. Unless otherwise elected by the member, the last payment will be the payment due next preceding the firefighter's death; except that, if the firefighter dies after his retirement but before he has received retirement benefits for a period of ten (10) years, the same monthly benefit will be paid to the beneficiary or beneficiaries as designated by the firefighter for the balance of such ten-year period, or, if no beneficiary is designated, to the estate.

Pick-up or picked up means the city shall pay the amount of the member's contribution and then deduct the amount from the member's earnings before income tax and Social Security taxes are deducted, and as further defined in subsection 2-68(a)(1). No member subject to such agreement shall have the option of choosing to receive the contributed amounts directly instead of having them paid by the city directly to the plan. The amount of member contributions "picked up" or paid by the city will be added to the amount distributed on a current basis in order to determine earnings for benefit calculation purposes.

Plan year means the twelve-month period beginning October 1, and ending September 30.

Premium tax revenues means state insurance premium tax revenues remitted annually to the city, which are collected on casualty insurance policies in the city in accordance with F.S. ch. 175.

Spouse shall mean the lawful wife or husband of a member.

System means the City of Lauderhill Firefighters' Retirement System as contained herein, and all amendments thereto.

Tier One means the defined benefit pension program for firefighters hired prior to October 1, 2009.

Tier One member means a firefighter hired prior to October 1, 2009.

Tier Two means the defined benefit pension program for firefighters hired on or after October 1, 2009. Tier Two benefits shall be administered in the same manner as Tier One benefits, except as follows:

(1)

The normal retirement benefit for Tier Two members shall be calculated using a three (3) percent multiplier for each year of service with a maximum seventy-five (75) percent benefit after twenty-five (25) years of service, however, such members may increase their pension multiplier to three and one-half (3.5) percent provided that all costs associated with such an increase are borne solely by the member;

(2)

Average monthly earnings for Tier Two members who retire with less than twenty-five (25) years of credited service shall mean one-twelfth ( 1/12 ) of the arithmetic average of annual earnings for the highest consecutive four (4) years of the ten (10) full years immediately preceding the actual retirement or termination date of a member and for Tier Two members who retire with twenty-five (25) years or more of credited service average monthly earnings shall mean one-twelfth ( 1/12 ) of the arithmetic average of annual earnings for the highest consecutive three (3) years of the ten (10) full years immediately preceding the actual retirement or termination date of a member;

(3)

Tier Two members shall have their monthly retirement increased by a sum equal to the net return of the plan per year, with a one and one-half (1.5) percent cap and zero (0) percent floor per year ("Tier Two COLA");

(4)

A Tier Two member must have been retired for three (3) years before he/she is entitled to a Tier Two Cola;

(5)

A Tier Two member may enter into the DROP on the first day of the month following the member's completion of twenty-five (25) years of credited service for a maximum of sixty (60) months, however, the DROP term shall be reduced by one (1) month for each month of eligibility following the completion of twenty-five (25) years of service during which the members do not participate in the DROP; and

(6)

Tier Two member DROP accounts shall be credited at a rate of interest equal to the actual rate of return achieved by the trust fund net of administrative expenses.

Tier Two member means a firefighter hired on or after October 1, 2009.

(Ord. No. 00O-6-33, § 1, 6-26-00; Ord. No. 01O-9-58, § 1, 9-24-01; Ord. No. 02O-11-178, § 1, 12-9-02; Ord. No. 03O-01-100, § 1, 1-27-03; Ord. No. 04O-07-152, § 2, 9-13-04; Ord. No. 07O-04-126, § 1, 5-14-07; Ord. No. 11O-05-123, § 2, 6-13-11; Ord. No. 17O-01-103, § 2, 2-13-2017; Ord. No. 17O-10-152, § 3, 11-13-2017)