§ 2-88.7. Vesting and termination; purchase of prior covered service.

(a)

Except as otherwise provided in this section, all rights to benefits under this plan shall terminate when a member's employment terminates for any reason other than normal service retirement, early retirement, or disability retirement. Any member who completes seven (7) years of credited service and whose contributions remain in the plan has a vested right to accrued benefits from the plan. No member who has completed less than seven (7) years of credited service shall have a vested interest in any accrued benefit. Notwithstanding anything to the contrary, a member hired after March 1, 2009 who completes ten (10) years of credited service and whose contributions remain in the plan has a vested right to accrued benefits from the plan. No member hired after March 1, 2009 who has completed less than ten (10) years of credited service shall have a vested interest in any accrued benefit. Notwithstanding the foregoing, any elected official who completes five (5) years of credited service and whose contributions remain in the plan has a vested right to accrued benefits from the plan.

(b)

A member who shall leave the service of the city prior to eligibility for normal service retirement or early service retirement, but who has completed not less than seven (7) years of creditable service shall be entitled to receive retirement benefits commencing at the attainment of age sixty-two (62). Such benefits will be based on final monthly compensation and credited service as of the date of termination. Notwithstanding anything to the contrary, a member hired after March 1, 2009 who completes ten (10) years of credited service and whose contributions remain in the plan has a vested right to accrued benefits from the plan. No member hired after March 1, 2009 who has completed less than ten (10) years of credited service shall have a vested interest in any accrued benefit. Notwithstanding the foregoing, an elected official who shall leave the service of the city prior to eligibility for normal service retirement or early service retirement, but who has completed not less than five (5) years of creditable service shall be entitled to receive retirement benefits commencing at the attainment of age fifty-five (55).

(c)

Every member shall have the right to elect to receive, in lieu of all benefits under the plan, a return of the member's accumulated contributions, with interest, at the rate of three (3) percent, compounded annually.

(d)

A member who elects a lump sum return of contributions releases and discharges the City of Lauderhill and the retirement plan from the right to any other benefits from the plan.

(e)

In no instance shall a member's benefits from the plan be less than the value of the employees contributions, with interest.

(f)

Members may purchase up to five (5) years of credited service at an accrual rate of a three (3) percent multiplier by tendering the employee and employer contributions as determined by the actuary for the plan. The city shall pay the balance of any cost of the service being purchased in the preceding sentence as determined by the actuary. A member must make an election to purchase this credited service by April 1, 2006. No member(s) shall be entitled to elect to or purchase credited service after April 1, 2006. Confidential/managerial employees that are members of the 401(a) or 457 plan may purchase credited service back to October 1, 1994, at an accrual rate of a two and five-tenths (2.5) percent multiplier. Employees in a 401(a) account may transfer their entire account balances and receive credit for years of service to October 1, 1994, or date of hire, whichever is later. Employees in a city contributed 457 account may transfer assets equal to the city's contributions, plus gains and losses to be determined by the actuary, and receive credit for the years of service to October 1, 1994, or date of hire, whichever is later; provided that an amount equal to the employee contribution portion of the cost must be made from an alternate source. Notwithstanding any provision to the contrary, confidential/managerial employees shall be provided a one-time option, which option expires on April 1, 2006, to purchase credited service back to their date of hire, at an accrual rate of a two and five-tenths (2.5) percent multiplier, provided that the member tenders the refunded employee contributions plus cumulative interest at an agreed-upon rate. For the limited purpose of the buyback provision set forth in the immediately preceding sentence, members electing the one-time buyback option shall be permitted to cash in up to forty-five (45) days of vacation and sick time at their full value to pay for the buyback. The member must maintain a balance of two hundred twenty-five (225) hours of sick time while employed. No balance is required to be maintained for vacation time. The cost for the service buyback under this subsection may be made in one (1) lump sum or may be made in installments. An employee making installment payments shall complete all required payments prior to payment of any benefit under this section. If installment payments are not completed at the time an employee retires, the employee shall not receive prior service credit for the remaining period for which payments were not made. Upon separation from employment with the city, a member may either use all or a portion of the two hundred twenty-five (225) hours of sick time to complete a buyback under this section, and/or rollover all or a portion of the sick time to a qualified retirement plan. Should an employee die prior to completing any installment payments, employee's designated beneficiary or joint annuitant shall be given the opportunity to complete the buyback and receive the outstanding credited service by making one (1) lump-sum payment of the entire balance due within ninety (90) days of the date of the employee's death. Notwithstanding anything to the contrary, effective March 1, 2009, members may purchase up to five (5) years of credited service at an accrual rate of a three (3) percent multiplier by tendering the full actuarial cost of the credited service. The purchase may be made by lump-sum payment or in installment payments with interest at eight (8) percent. The lump-sum payment must be made within sixty (60) days from receipt of the actuarial calculation determining the cost of the service to be purchased. If making installment payments, the period of the installment payments must be affirmatively selected by the member. A member making installment payments shall complete all required payments prior to payment of any benefit under this section. If installment payments are not completed at the time a member retires, the member shall not receive prior service credit for the remaining period for which payments were not made.

(g)

Members of the General Employees Retirement System shall receive credited service in this plan for all service in a covered position as of the date of the adoption of the plan.

(Ord. No. 02O-09-165, § 1, 12-9-02; Ord. No. 04O-01-108, § 2, 5-10-04; Ord. No. 05O-06-157, § 3, 8-29-05; Ord. No. 06O-03-116, § 1, 4-10-06; Ord No. 09O-06-125, § 1, 6-29-09; Ord. No. 10O-07-139, § 1, 7-26-2010; Ord. No. 17O-07-129, § 3, 8-28-2017; Ord. No. 18O-01-102, § 1, 1-29-2018)