Submitted By: William E. Sexton, City Attorney
Presentation By: William E. Sexton
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Department: City Attorney
FORMAL TITLE:
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Ordinance 2027-9 amending and revising Chapter 43, Article V, Police Officers’ Retirement System as a revisers’ ordinance to supplement changes by Ordinance 2026-21
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PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The City of Ocala, Florida provides a pension plan for the police officers employed by the City through the Ocala Police Officers’ Retirement System.
In or about July of this year, Ordinance 2026-21 amended said pension plan to implement the provisions of the collective bargaining agreement between Florida State Fraternal Order of Police Lodge #129 and the City of Ocala and this ordinance adjusts certain administrative details which need to be added to make said pension plan complete.
FINDINGS AND CONCLUSIONS:
The City Council of the City of Ocala, Florida finds, determines and concludes that administrative changes to the Police Officers’ Retirement System contained herein; do not result in a significant impact to the finances of the City of Ocala, Florida; are intended to and does protect and promotes the health, safety and welfare of the citizens of the City of Ocala, Florida; and is in the best interest of the City of Ocala, Florida and its citizens.
FISCAL IMPACT:
Adoption of this ordinance will not have any fiscal impact on the City of Ocala, Florida.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
This ordinance has been drafted, reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny
ORDINANCE 2027-9
AN ORDINANCE OF THE CITY OF OCALA, FLORIDA, AMENDING AND REVISING CHAPTER 43, ARTICLE V, CODE OF ORDINANCES, CITY OF OCALA, FLORIDA, (POLICE OFFICERS’ RETIREMENT SYSTEM) AS A REVISERS’ ORDINANCE TO SUPPLEMENT CHANGES BY ORDINANCE 2026-21; AMENDING SECTION 43-115, CONTRIBUTIONS; AMENDING SECTION 43-116 BENEFIT AMOUNTS AND ELIGIBILITY; AMENDING SECTION 43-138. DEFERRED RETIREMENT OPTION PLAN; AMENDING SECTION 43-138.1 F.S. CHAPTER 185 SHARE ACCOUNTS; AMENDING SEC. 43-140. COST OF LIVING ADJUSTMENT (COLA) FUND; DELETING SECTION 43-141 DROP INTEREST PROVISIONS; PROVIDING FOR SEVERABILITY OF PROVISIONS; PROVIDING FOR CODIFICATION; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Ocala, Florida provides a pension plan for the police officers employed by the City through the Ocala Police Officers’ Retirement System (“System”); and
WHEREAS, Ordinance 2026-21 amended said pension plan to implement the provisions of the collective bargaining agreement between Florida State Fraternal Order of Police Lodge #129 and the City of Ocala; and
WHEREAS, the City Council of the City of Ocala, Florida has determined that certain administrative details need to be added to make said pension plan complete; and
WHEREAS, the City Council of the City of Ocala, Florida finds and determines that this ordinance and the amendment to the Code of Ordinances, City of Ocala, Florida contained herein, is intended to and does protect the health, safety and welfare of the citizens of Ocala, Florida; and
WHEREAS, the City Council of the City of Ocala, Florida finds and determines that this ordinance and the amendment to the Code of Ordinances, City of Ocala, Florida contained herein is in the best interest of the City of Ocala, Florida and its citizens; and
NOW THEREFORE, be it ordained, by the City Council of the City of Ocala, Florida, in regular session, as follows:
Section 1. Ratification, Adoption and Incorporation of Recitals.
The City Council of the City of Ocala, Florida ratifies the above-outlined recitals as true and correct; adopts and incorporates them herein as part and parcel of this ordinance.
Section 2. Purpose and Authority for Ordinance.
This ordinance is adopted for the purpose of amending and revising Chapter 43, Article V, Code of Ordinances, City of Ocala, Florida, so as to add detail to said code provision for consistency in administration of the changes agreed to by the City of Ocala, Florida and the Florida State Fraternal Order of Police Lodge #129 and is adopted pursuant to the authority granted by Chapter 166, Florida Statutes; and other relevant provisions of Florida and federal law.
Section 3. Amendment of Section 43-115, Code of Ordinances, City of Ocala, Florida.
Chapter 43, Pensions and Retirements, Article V, City of Ocala Police Officers’ Retirement System, of the Code of Ordinances, City of Ocala, Florida is hereby amended at Section 43-115, Contributions, by adding language which is underlined and eliminating language which is stricken-through, in subsection (a)(1) and (b), and deleting subsection (e) as follows:
Sec. 43-115. Contributions.
(a) Member contributions.
(1) Amount. Each member of the system shall be required to make regular contributions to the fund in the amount of eight nine percent (9%) of his salary. Additionally, effective October 1, 2025, DROP members will contribute five (5) percent of salary during their DROP participation period. Member contributions withheld by the city on behalf of the member shall be deposited with the board immediately after each pay period. The contributions made by each member to the fund shall be designated as employer contributions pursuant to § 414(h) of the Code. Such designation is contingent upon the contributions being excluded from the members’ gross income for Federal Income Tax purposes. For all other purposes of the system, such contributions shall be considered to be member contributions.
(2) Method. Such contributions shall be made by payroll deduction.
(b) State contributions. Any monies received or receivable by reason of laws of the State of Florida, for the express purpose of funding and paying for retirement benefits for police officers of the city shall be deposited in the fund comprising part of this system immediately and under no circumstances more than five days after receipt by the city. Effective beginning with the Chapter 185 State monies received in calendar year 2026, the first Three Hundred Thousand Dollars ($300,000.00) received annually shall be applied to reduce the City’s required contribution to the Plan. Fifty percent (50%) of Chapter 185 revenues received in excess of $300,000.00 shall be applied to the COLA Fund and fifty percent (50%) shall be applied to offset the City’s required contribution.
(c) City contributions. So long as this system is in effect, the city shall make quarterly contributions to the fund in an amount equal to the required city contribution as shown by applicable actuarial valuation of the system.
(d) Other. Private donations, gifts and contributions may be deposited to the fund, but such deposits must be accounted for separately and kept on a segregated bookkeeping basis. Funds arising from these sources may be used only for additional benefits for members, as determined by the board, and may not be used to reduce what would have otherwise been required city contributions.
(e) Chapter 185 Allocation. Beginning with Chapter 185 premium tax revenues received in calendar year 2026, the first Three Hundred Thousand Dollars ($300,000.00) received annually shall be applied to reduce the City’s required contribution to the Plan. Fifty percent (50%) of Chapter 185 revenues received in excess of $300,000.00 shall be applied to the COLA Fund and fifty percent (50%) shall be applied to offset the City’s required contribution.
Section 4. Amendment of Section 43-116(f) and 43-116(g), Code of Ordinances, City of Ocala, Florida.
Chapter 43, Pensions and Retirements, Article V, City of Ocala Police Officers’ Retirement System, of the Code of Ordinances, City of Ocala, Florida is hereby amended at subsection (f), (g) of Section 43-116, by adding language which is underlined and eliminating language which is stricken-through, as follows:
Sec. 43-116. Benefit amounts and eligibility.
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(f) Pensioner benefit increases. Periodically the board will review the adequacy of pension benefits of retirees and beneficiaries retired before October 1, 2025 with respect to increases in the cost of living and has authority to recommend increases, if warranted, to the city council.
(g) Limitation on Supplemental Benefits. Effective November 1, 2015, and consistent with collective bargaining agreements in effect thereafter, no supplemental benefit shall accrue for any retiree service performed after November 1, 2015, except as expressly provided in this Article. Nothing herein shall be construed to impair benefits vested on prior to that date. All current retirees as of November 1, 2015 and future retirees who were within five years of retirement on November 1, 2015 and their joint pensioners or beneficiaries, excluding vested terminated persons, shall receive a monthly supplemental benefit equal to $10.00 for each full year of credited service provided that the minimum monthly supplement shall be $30.00. This supplement shall be offset by the monthly supplements provided for in subsection (e), above.
Section 5. Amendment of Section 43-138(b)(5)a Code of Ordinances, City of Ocala, Florida
Chapter 43, Pensions and Retirements, Article V, City of Ocala Police Officers’ Retirement System, of the Code of Ordinances of the City of Ocala, Florida is hereby amended, by adding language which is underlined and eliminating language which is stricken-through, at subsection (b)(5)a of Section 43-138, as follows:
Sec. 43-138. Deferred retirement option plan.
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(b) Participation.
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(5) Effect of DROP participation on the system.
a. A member's credited service and his accrued benefit under the system shall be determined on the date his election to participate in the DROP first becomes effective. For purposes of determining the accrued benefit, the member's salary for the purposes of calculating his average final compensation shall include an amount equal to any lump sum payments which would have been paid to the member and included as salary as defined herein, had the member retired under normal retirement and not elected DROP participation. Member contributions attributable to any lump sums used in the benefit calculated and not actually received by the member shall be deducted from the first payments to the member's DROP account. The member shall not accrue any additional credited service or any additional benefits under the system (except for any supplemental benefit payable to DROP participants or any additional benefits provided under any cost-of-living adjustment for retirees in the system) while he is a participant in the DROP. After a member commences participation, he shall not be permitted to again contribute to the system nor shall he be the member is no longer eligible for disability or pre-retirement death benefits, except as provided for in section 43-139, Reemployment after retirement. Members will contribute 5% of salary during their DROP participation period.
Section 6. Amendment of Section 43-139.1, Code of Ordinance, City of Ocala, Florida
Chapter 43, Pensions and Retirements, Article V, City of Ocala Police Officers’ Retirement System, of the Code of Ordinances, City of Ocala, Florida is hereby amended, by adding language which is underlined and eliminating language which is stricken-through, at Section 43-139.1, as follows:
Sec. 43-139.1. Supplemental benefit component for special benefits; F.S. Chapter 185 share accounts.
There is hereby established an additional plan component to provide special benefits in the form of a supplemental retirement, termination, death and disability benefits to be in addition to the benefits provided for in the previous sections of this plan, such benefit to be funded solely and entirely by F.S. ch. 185, premium tax monies for each plan year which are allocated to this supplemental component as provided for in F.S. § 185.35. This benefit is not currently funded. If the benefit provided for in this section is funded, the amounts Amounts allocated to this supplemental component ("share plan") shall be further allocated to the members and DROP participants as follows:
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Section 7. Amendment of Section 43-140(a), 43-140(b), 43-140(e) and 43-140 (f), Code of Ordinances, City of Ocala, Florida
Chapter 43, Pensions and Retirements, Article V, City of Ocala Police Officers’ Retirement System, of the Code of Ordinances, City of Ocala, Florida is hereby amended, by adding language which is underlined and eliminating language which is stricken-through, at subsection (a), (b), (e) and by adding a new subsection (f) to Section 43-140, as follows:
43-140. Cost of Living Adjustment (COLA) Fund.
(a) Establishment. Effective October 1, 2025, a Cost-of-Living Adjustment (COLA) Fund is established to provide a lifetime COLA benefit to eligible retirees. The COLA will be paid monthly as an increase to the regular monthly benefit.
(b) Funding Sources. The COLA Fund shall be funded by:
(1) Fifty percent (50%) of Chapter 185 revenues in excess of $300,000.00 beginning in calendar year 2026;
(2) Member contributions in excess of eight percent (8%) of salary;
(3) Five percent (5%) contributions made by DROP members; and
(4) Net investment return attributable to the Fund for the preceding year less brokerage commissions, transaction costs, and management fees. The net investment return is calculated by the system’s investment consultant using the system’s custodial statements. Should the Board determine to invest the COLA Fund as a separate investment, then the net investment return credited to the COLA Fund will be the investment return on that separate investment, less brokerage commissions, transaction costs, and management fees.
(c) Eligibility.
(1) COLA benefits shall be payable only to members who retire or separate from service on or after October 1, 2025;
(2) COLA benefits shall be payable only for the lifetime of the retiree;
(3) COLA benefits shall not be payable to survivors.
(d) Service Credit Calculation.
(1) A full year shall mean twelve (12) completed months;
(2) A month shall be deemed complete if the member is in service more than fifteen (15) days in a calendar month;
(3) In-line-of-duty deaths and in-line-of-duty disabilities shall be treated as having at least twenty-five (25) years of credited service for COLA purposes;
(4) Deferred vested members shall begin receiving COLA benefits at their early or normal retirement date, when benefits commence.
(e) Asset-Based Distribution. COLA benefits shall be payable only to the extent sufficient assets exist in the COLA Fund and no COLA benefit is guaranteed. There is no guarantee of an annual payment or growth of the payment. The payments may be more or less than the original payment schedule contained in the actuarial study. Since significant funding is anticipated to come from the Chapter 185 State monies, the benefits are also dependent upon the Plan continuing to qualify to receive the state monies. The COLA is not an actuarial liability of the City.
(f) Distributions.
(1) The COLA benefit distribution will be determined by the board, based solely on available COLA assets and the recommendation of the actuary for the System, using a benefit table created by the actuary, in accordance with Florida laws, using generally accepted actuarial principles and prudent reserves. The COLA amounts shall be identified and distributed in a defined tabular format.
(2) The benefits payable to each retiree will be determined based on:
i. Full years of credited service at the retiree’s retirement and termination of service as a police officer, including years of service while in the DROP (for purposes of this annual adjustment only); and
ii. Full years of retirement following separation of service, excluding years when the retiree is rehired by the City or in the DROP.
(3) The first distribution is expected to be made as of October 1, 2036. This is the date that the COLA Fund is expected to have sufficient assets to pay the COLA benefits and provide for a prudent reserve.
(4) The distribution table is subject to modification by the board annually based solely upon available assets and recommendations by the plan actuary, using generally accepted actuarial principles and prudent reserves.
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Section 8. Deletion of Section 43-141, Code of Ordinances, City of Ocala, Florida.
Section 43-141 Code of Ordinances, City of Ocala, Florida, is hereby deleted in its entirety.
Section 9. Direction to Staff.
The City Council of the City of Ocala, Florida directs staff to take any and all steps necessary to effectuate the adoption and implementation of this ordinance; and all other matters as provided for above and herein as well as to ensure the orderly and effective administration and implementation of the intent of this ordinance and the specific matters outlined herein.
Section 10. Direction to the Codifier.
It is the intention of the City Council of the City of Ocala, Florida that (1) this ordinance shall become and be made a part of the Code of Ordinances, City of Ocala, Florida, (2) the sections and paragraphs of this ordinance may be renumbered or relettered in order to accomplish said intention; (3) terms or headings not affecting the intent of this ordinance may be changed to further accomplish said intention; and (4) any scrivener’s error(s) contained herein which do not affect the intent of this ordinance be corrected with the authorization of the City Manager or their designee and without the need for additional public hearings or consideration by the City Council.
Section 11. Repealing Inconsistent and/or Conflicting Provisions.
The City Council of the City of Ocala, Florida hereby specifically repeals, to the extent of any such conflict, any and all ordinances, resolutions, policies, procedures and/or other articles which are conflicting and/or inconsistent with this ordinance and the intent and direction provided by the City Council herein.
Section 12. Severability of Ordinance Provisions.
If any section, phrase, sentence or portion of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, it is the intent of the City Council of the City of Ocala, Florida that (1) such portion shall be deemed a separate, distinct and independent provision; (2) such holding shall not affect the validity of the remaining portions hereof; and (3) this ordinance be adopted as though any such provision was not included herein.
Section 13. Modifications Arising from Consideration at a Public Hearing.
It is the intention of the City Council of the City of Ocala, Florida that (1) the provisions of this ordinance may be modified as a result of its consideration by the City Council of matters that may arise during the public hearing(s) at which this ordinance is considered; and (2) any such modifications shall be incorporated into the final version of this ordinance.
Section 14. Effective Date of Ordinance.
This ordinance shall become effective immediately upon approval by the Mayor or becoming law without such approval.
PASSED AND ADOPTED, in a regular session with a quorum present and voting, by the City Council of the City of Ocala, Florida this ____ day of December 2026.
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs Ire J. Bethea Sr.
City Clerk President, Ocala City Council
Approved/Denied by me as Mayor of the City of Ocala, Florida, on __________________, 2026.
By: __________________________________
Ben Marciano
Mayor
Approved as to form and legality:
By: _________________________________
William E. Sexton
City Attorney
Ordinance No: 2027-XX
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