Plan Terminology and Definitions
Accumulated contributions means a member's own contributions plus interest credited thereto, if any.
Actuarial equivalence or actuarially equivalent means 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 the 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:
(1) Ninety (90) days prior to the member's date of termination if distribution is made within six (6) months of
such date of termination, or
(2) Ninety (90) days prior to the distribution date if distribution is made later than six (6) months after the
member's date of termination.
Average Monthly Earnings (AME) means one-twelfth (1/12) of the average annual compensation of the five (5) best
years of the last ten (10) years of creditable service prior to retirement, termination or death; provided, however, that if a
member shall have been employed for fewer than ten (10) years, such average shall be taken only over the period of
his/her actual employment. Effective October 1, 2006, average monthly earnings for members who retire or enter the
DROP on or after October 1, 2006, shall mean one-twelfth ( 1/12) of the average annual compensation of the three (3)
best years of the last ten (10) years of creditable service prior to retirement, termination or death.
Average monthly earnings for Tier Two (2) members shall be based on one-twelfth (1/12) of the average annual compensation of the five (5) best years
of the last ten (10) years of creditable service prior to retirement, termination or death; provided, however, that if a Tier Two (2) members shall have
been employed for fewer than ten (10) years, such average shall be taken only over the period of his/her actual employment.
Beneficiary means the person entitled to receive benefits under this article at the death of a member, who has 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, or if no provision for an alternate or contingent beneficiary is otherwise provided for, or if no such alternate or contingent beneficiary is living at
such time, the beneficiary shall be the member's estate.
Board means the board of trustees, which shall administer and manage the plan provided for in this article and serve as trustee of the fund.
Deferred Retirement Option Plan or "DROP" means a local law plan retirement option in which a police officer may elect to participate. A police officer
may retire for all purposes of the plan and defer receipt of retirement benefits into a DROP account while continuing employment with his or her
employer. However, a police officer who enters the DROP and who is otherwise eligible to participate shall not thereby be precluded from participating,
or continuing to participate, in a supplemental plan in existence on, or created after, the effective date of this act.
Credited Service means uninterrupted service (expressed as years and completed months), from the date a member last entered employment, until the
date his or her employment shall be terminated by death, disability, retirement, resignation, or discharge; provided however, the credited service of any
member shall not be deemed to be interrupted by reason of:
(1) Temporary layoff;
(2) Paid vacation;
(3) Any authorized leave of absence.
Time spent in compulsory military service for the United States by a member shall be credited provided he or she reenters the service of the city as a
police officer within forty (40) days after the date of release from such military service. No credit for benefits or vesting shall be allowed for any period of
time due to leave of absence in excess of one (1) year. All members similarly situated in similar circumstances shall be treated alike pursuant to uniform,
nondiscriminatory rules and policies established by the board of trustees.
Earnings means a member's basic rate of pay from the city, exclusive of all overtime pay, bonuses, commissions and any other extraordinary
compensation; effective October 1, 2001 earnings shall include up to one hundred (100) hours of overtime per year. All such adjustments shall be
initially funded with premium tax revenue required to be used for this purpose under F.S. Ch. 185, and any cost thereafter shall be paid as provided by
law. The pension board shall have the authority to adopt administrative rules regarding the treatment of overtime. Effective October 1, 2002 earnings
shall include up to three hundred (300) hours of overtime per year.
Initial effective date means October 11, 1965.
Member means a police officer, as defined in this section, who fulfills the prescribed participation requirements. However, the police chief may elect not
to participate in this plan by submitting written notice to the board of trustees.
Ordinance means the City of Miramar Ordinance Number 80-21, codified and amended by Ordinance No. 87-11, and any subsequent ordinances,
setting forth the provisions of the retirement plan and trust.
Plan means the City of Miramar Retirement Plan as contained herein and all amendments thereto.
Police officer means any duly appointed and enrolled police officer who is employed full-time by the city; the police chief may not be included in this
definition, for purposes of this chapter.
Retirement means a police officer's separation from city employment as a police officer with immediate eligibility for receipt of benefits under the plan.
For purposes of a plan that includes a Deferred Retirement Option Plan (DROP), "retirement" means the date a police officer enters the DROP.
Spouse shall mean the lawful wife or husband or a member.
Tier One means the defined benefit pension program for police officers hired prior to the effective date as stated in the
“Benefit” section of this Plan.
Tier Two means the defined benefit pension program for police officers hired on or after the effective date as stated in the
“Benefit” section of this Plan. Tier Two benefits shall be administered in the same manner as Tier One benefits, except as follows: (1) the normal
retirement date for Tier Two participants shall be the completion of twenty-five (25) years of service rather than twenty (20) years of service for Tier One
participants; (2) the normal retirement benefit for Tier Two participants shall be calculated using a three (3) percent multiplier for each year of service
resulting in a seventy-five (75) percent benefit after twenty-five (25) years of service and a maximum benefit of eighty (80) percent of average monthly
earnings; and (3) Tier Two participants shall not be entitled to the COLA set forth in City of Miramar Code section 15-225. Tier Two shall be interpreted
at all times as is necessary to comply with all minimum benefits and standards under F.S. Ch. 185.
Trust means the trust established herein as part of the plan.
Glossary terms are provided by the City of Miramar’s Ordinance Code 1964, § 19-20; Ord. No. 91-43, § 2, 8-21-91; Ord. No. 00-32, § 6, 6-21-00; Ord. No. 04-24, § 1, 9-1-04; Ord.
No. 05-23, § 1, 9-21-05; Ord. No. 08-20, § 2, 6-10-08); and as defined in the Florida State Statute 185.02 and should only be used for illustrative purposes only. Applicable
benefits will be determined by the Ordinance in effect at the time of retirement.