§ 2-549. Supplemental benefit.

There is hereby established an additional supplemental retirement, termination, death and disability benefit to be paid in addition to the benefits provided for in the previous sections of this division, such benefit shall be funded solely and entirely by a portion of the existing excess state premium tax reserve in the amount of $1,505,738.00 ("reserve amount"), and future premium tax revenues in excess of $200,000.00, beginning with the plan year ending September 30, 2017, all of which represent premium tax monies received or to be received by the plan pursuant to F.S. ch. 175.

(a)

Individual member share accounts. The board shall create individual share accounts for all retirees who retire on or prior to September 30, 2014 ("eligible retiree"), retirees retiring after September 30, 2014 ("recent retiree") and all current and future members, and shall maintain appropriate books and records showing the respective interest of each eligible retiree or member hereunder. Current members and members hired on or after the effective date of the ordinance adopting this provision, as well as recent retirees as provided for in subsection (c)(1), receive an allocation of the tax revenues in excess of the 2013 base amounts, forfeitures and income and expense adjustments relating thereto. Members and eligible retirees of the plan shall have a portion of the reserve amount allocated to their share account. The board shall maintain a separate membership share account for each member and eligible retiree, however, the maintenance of separate accounts is for accounting purposes only and a segregation of the assets of the trust fund to each account shall not be required or permitted. Members shall be provided annual statements setting forth their share account balance as of the end of the calendar year.

Retirees who again become active firefighters shall be deemed new members and shall receive an allocation based solely on the credited service in the new participation period.

(b)

Share account funding.

(1)

Allocation of available reserve amount. An initial calculation shall be conducted to divide the reserve amount, less 20 percent of the reserve amount, such resulting amount to be known as the available reserve amount, into "unallocated reserve amounts" to be attributed to each member and eligible retiree as of September 30, 2014. Twenty percent of the reserve amount shall not be included in the calculation and shall remain in the reserve account to be used to offset any future required City funding as provided for in subsection (b)(4) below. The "available reserve amount" shall be allocated as provided for in this subsection (b)(1).

The unallocated reserve amount to be attributed to each member and eligible retiree shall be determined as of September 30, 2014, and shall be an amount equal to a fraction of the available reserve amount, the numerator of which shall be the total years and fractional parts of years of credited service of the member or eligible retiree to whom the unallocated reserve amount is to be attributed, and the denominator of which shall be the sum of the total years and fractional parts of years of credited service of all the members and eligible retirees as of September 30, 2014. Members or eligible retirees shall have no interest in this unallocated reserve amount until such time that amounts are actually allocated to share accounts.

(2)

Eligible retiree allocations. Effective as of December 31, 2014, and on each December 31 thereafter until all unallocated reserve amounts attributable to eligible retirees are fully allocated to share accounts, an amount shall be allocated to all eligible retiree share accounts from the available reserve amount. The amount to be allocated to each eligible retiree's share account shall be the greatest dollar amount that can be allocated to an eligible retiree from that eligible retiree's unallocated reserve amount, without exceeding the limitation set forth in Code Section 457(e)(11), as adjusted (see subsection (j) below), or the balance of the eligible retiree's unallocated reserve amount, if less, or without exceeding the amount that can be distributed to the eligible retiree as limited by section 2-540, maximum pension. Amounts allocated pursuant to this subsection shall reduce an eligible retiree's unallocated reserve amount by the amount of the allocation. Each year, upon determination of the allocation provided for in this subsection, the entire balance of the share account of the eligible retiree shall be paid in a lump sum (or rolled over if otherwise eligible) to the eligible retiree, provided that no distribution shall be made which exceeds the limits set forth in section 2-540, maximum pension and subsection (j) below. Once all allocations and distributions of the unallocated reserve amount of an eligible retiree are made pursuant to this subsection, allocation and distributions to that eligible retiree shall cease.

(3)

Member allocations. Beginning on December 31, 2014 and on each December 31 thereafter, and subject to the limitation in subsection (j) below, individual member share accounts (but not eligible retiree accounts) shall be credited with:

a.

Florida Statutes ch. 175, premium tax revenues received in a plan year in excess of the 2013 base amounts, if any, beginning with the plan year ending September 30, 2014, and all similar premium tax revenues received in subsequent fiscal years which exceed the 2013 base amounts shall also be allocated to member share accounts as provided for in subsection (c)(2)a., plus

b.

A portion of the reserve amount, as calculated in subsection (b)(1) above, which will be incrementally allocated to member share accounts as provided in subsection (c)(2)b.

c.

In addition, any forfeitures as provided in subsection (f), shall be allocated to the individual member share accounts in accordance with the formula set forth in subsection (c)(2)a.

d.

Investment gains or losses as provided in subsection (d), shall be allocated to the individual member share accounts in accordance with subsection (d).

(4)

City reserve. Twenty percent of the reserve amount shall remain in the reserve account to be used only to reduce or eliminate any future required funding requirement of the City, as determined by the most recent actuarial valuation.

(c)

Future allocation of F.S. ch. 175 contributions.

(1)

Effective as of December 31, 2014, the amount of premium tax monies in excess of the 2013 base amounts, if any, of the plan year ending September 30, 2014, shall be allocated to all individual member share accounts, but not eligible retiree accounts, as provided for in this subsection. Members retiring on or after September 30, 2014 ("recent retirees") shall receive a final allocation on the next valuation date following their retirement. In addition, all premium tax monies actually received in any subsequent plan year which exceed the 2013 base amounts shall also be allocated as provided for in this subsection. All monies received from F.S. ch. 175, premium tax rebates for the previous plan year, shall be allocated to individual member and recent retiree share accounts at the end of each calendar year on December 31 (a "valuation date"). (e.g., The amount received for the plan year ending September 30, 2014 will be allocated on December 31, 2014.)

(2)

On each valuation date, each current member of the plan and each recent retiree (not eligible retirees), beneficiary, or terminated vested person who is otherwise eligible for an allocation as of the valuation date shall receive a share allocation as follows:

a.

The total funds subject to allocation on each valuation date in excess of the 2013 base amounts for the immediately preceding plan year shall be allocated to the share account of those members and recent retirees eligible for an allocation in an amount equal to a fraction of the total amount, the numerator of which shall be the total years and fractional parts of years of credited service as of September 30 immediately preceding the valuation date of the member or recent retiree to whom the allocation is attributable, and the denominator of which shall be the sum of the total years and fractional parts of years of credited service of all members and recent retirees to whom allocations are being made.

b.

In addition to the allocation set forth in [subsection] a. above and after the allocation of investment gains and losses pursuant to subsection (d) below, and any allocation of forfeitures pursuant to subsection (f) below, an amount shall also be allocated from the member's or recent retiree's unallocated reserve amount to the member's or recent retiree's share account from the available reserve amount. The allocated amount shall be determined in the same manner described in subsection (b)(2) above.

(d)

Allocation of investment gains and losses. On each valuation date, each individual member or recent retiree share account (but, not eligible retiree accounts) shall be adjusted to reflect the net earnings or losses resulting from investment during the immediately preceding plan year. The investment earnings or losses allocated to the individual member or recent retiree share accounts shall be determined prior to the allocation for that year and shall be in the same percentage as are earned or lost by the total net investment earnings or losses of the fund as a whole, net of all investment related costs, fees and expenses of the fund. No adjustment may be made that would cause the benefit to exceed the limitation in subsection (j) below.

(e)

No right to allocation. The fact of allocation or credit of an allocation to a member's share account by the board shall not vest in any member any right, title, or interest in the assets of the trust or in F.S. ch. 175 tax revenues except at the time or times, to the extent, and subject to the terms and conditions provided in this section. All assets of the trust or in the F.S. ch. 175 tax revenues will remain solely the property and right of the City or state, as applicable, subject only the claims of the City's or state's general creditors, as applicable, until made available to the member or the member's beneficiary.

(f)

Forfeitures. Any member who has less than five years of credited service (non-vested) and who is not otherwise eligible for payment of benefits after (1) termination of membership as a Volunteer Firefighter or (2) death, shall forfeit his individual member share account. Forfeited amounts shall be redistributed to all the other individual member accounts on each valuation date in an amount determined in accordance with subsection (c)(2)a. Unallocated reserve amounts attributable to the non-vested terminating or deceased member shall be redesignated as a plan reserve.

(g)

Eligibility for benefits. Any member who terminates membership as a Volunteer Firefighter, upon application filed with the board, shall be entitled to be paid the value of his individual member share account, subject to the following criteria, and subject to the limitation of subsection (j) below:

(1)

Retirement benefit.

a.

A Member shall be entitled to 100 percent of the value of his share account upon normal or early retirement.

b.

Such payment shall be made as provided in subsection (h).

(2)

Termination benefit.

a.

In the event that a member's membership as a Volunteer Firefighter is terminated by reason other than retirement, death, or disability, he shall be entitled to receive the value of his share account only if he is vested in accordance with section 2-534 and subsection (f) above.

b.

Such payment shall be made as provided in subsection (h).

(3)

Disability benefit.

a.

In the event that a member is determined to be eligible for either an in-line of duty disability benefit pursuant to subsection 2-533(a), or a not-in-line of duty disability benefit pursuant to subsection 2-533(c), he shall be entitled to 100 percent of the value of his share account.

b.

Such payment shall be made as provided in subsection (h).

(4)

Death benefit.

a.

In the event that a member dies while an active Volunteer Firefighter, 100 percent of the value of his share account shall be paid to his designated beneficiary as provided in section 2-536, but only if he is vested in accordance with section 2-534 and subsection (f) above.

b.

Such payment shall be made as provided in subsection (h).

(h)

Payment of benefits.

(1)

Form of payment. If a member terminates membership as a Volunteer Firefighter for any reason and is otherwise entitled to receive all or a portion of the balance in the member's share account, the member's share account shall be valued on the next valuation date as provided for in subsection (c) above, following termination of membership. Except as otherwise provided in subsection (j) below, payment of the calculated share account balance shall be payable in one lump sum payment and only upon written request of the member on forms designated by the board. No optional forms of payments shall be permitted.

(2)

Unallocated reserve amounts. In the event that a member or recent retiree retires or terminates participation as a firefighter and has not received an allocation to his share account of the full amount of his unallocated reserve amount, allocations of the unallocated reserve amount attributed to such person shall continue to be allocated in the same manner as for eligible retirees as provided for in subsection (b)(2) until the remaining balance of the unallocated reserve amount is allocated and distributed to such person as provided for in subsection (b)(2), subject to the limitation of subsection (j) below.

(i)

Benefits not guaranteed. All benefits payable under this section 2-549 shall be paid only from the assets accounted for in individual member share accounts. Neither the City nor the board shall have any duty or liability to furnish any additional funds, securities or other assets to fund share account benefits. Neither the board nor any trustee shall be liable for the making, retention, or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the share account balances, except due to his or its own negligence, willful misconduct or lack of good faith. All investments shall be made by the board subject to the restrictions otherwise applicable to fund investments.

(j)

Maximum benefit. Notwithstanding any provision of the system, pursuant to Code Section 457(e)(11)(B)(ii), the aggregate amount of length of service awards occurring for any member under the system with respect to any year of credited service shall not exceed $3,000.00, taking into account the benefit under this section and any other section of this division.

( Ord. No. 2015-02 , § 1, 3-3-15; Ord. No. 2015-10 , § 1, 8-4-15; Ord. No. 2017-21 , § 1, 11-21-17)