Fort Walton Beach Ordinance — 2168--Amending COO Section 2.06.03 Firefiighters' Pension Trust Fund — reading text

Sgt 2nd ORDINANCE 2168 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, AMENDING THE CITY OF FORT WALTON BEACH MUNICIPAL FIREFIGHTERS' PENSION TRUST FUND; AMENDING SECTION 2. 06.03( BB) SUPPLEMENTAL BENEFIT COMPONENT FOR SPECIAL BENEFITS, CHAPTER 175 SHARE ACCOUNTS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Municipal Firefighters' Pension Trust Fund is administered by a Board of Trustees; WHEREAS, Chapter 175 provides for premium tax monies to be collected and dispersed to firefighter pension plans; WHEREAS, Florida Statute 175. 351 requires that a Share Plan must be established for each firefighter pension plan; WHEREAS, the premium tax monies received for 2023 exceeded the agreed upon amount that the City may use to offset its annual contribution to the Plan; WHEREAS, the additional premium tax monies are to be allocated to Member Share Accounts; WHEREAS, the Plan needs to enact provisions that allow for the allocation and distribution of Share Plan funds while also establishing the eligibility requirements for a Member to receive their Share Plan balance; WHEREAS, the Board of Trustees has determined that this Ordinance is in the best interest of the Plan Members and their Beneficiaries; WHEREAS, the Board of Trustees has determined that this Ordinance is also in the best interest of the City and the Municipal Fire Department as it will help to retain qualified Firefighters; and WHEREAS, the City of Fort Walton Beach City Council finds that it would be in the best interest of the citizens of the City and the Members and Beneficiaries of the Municipal Firefighters' Pension Trust Fund to amend the Plan as set forth below. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA: SECTION 1: That section 2. 06. 03( bb) of the Municipal Firefighters' Pension Trust Fund is hereby amended as follows: bb) Supplemental Benefit Component for Special Benefits; Chapter 175 Share Accounts. There is hereby established an additional pla-m eemponefit to pr-evide speeial benefits in a the € ef of a- upplemenW retirement, rP} miiudrorr- death disability benefits - e.• ix  PU NJ ThereThere isis herebyhereby establishedestablished anan additionaladditional planplan componentcomponent toto provideprovide specialspecial benefitsbenefits inin thethe formform ofof aa supplementalsupplemental retirement,retirement, termination,termination, deathdeath andand disabilitydisability benefitbenefit toto bebe inin additionaddition toto thethe benefitsbenefits providedprovided forfor inin thethe previousprevious Sections Sections ofof thisthis plan,plan, suchsuch benefitbenefit toto bebe fundedfunded solelysolely andand entirelyentirely byby ChapterChapter 175,175, FloridaFlorida Statutes,Statutes, premiumpremium taxtax moniesmonies forfor eacheach planplan yearyear whichwhich areare allocatedallocated toto thisthis supplementalsupplemental componentcomponent asas providedprovided forfor inin SectionSection 175.175. 351,351, FloridaFlorida Statutes.Statutes. Amounts Amounts allocatedallocated toto thisthis supplementalsupplemental componentcomponent (" (" ShareShare Plan"), Plan"), ifif any,any, shallshall bebe furtherfurther allocatedallocated toto thethe MembersMembers andand DROPDROP participants participants asas follows:follows: 1)1) IndividualIndividual MemberMember ShareShare Accounts.Accounts. TheThe BoardBoard shallshall createcreate individualindividual " " MemberMember ShareShare Accounts"Accounts" forfor allall activelyactively employedemployed planplan MembersMembers andand DROPDROP participantsparticipants andand maintainmaintain appropriate appropriate booksbooks andand recordsrecords showingshowing thethe respectiverespective interestinterest ofof eacheach Member Member oror DROPDROP participantparticipant hereunder.hereunder. EachEach Member Member oror DROPDROP participant participant shallshall havehave aa Member Member ShareShare Account Account forfor hishis shareshare ofof thethe ChapterChapter 175,175, FloridaFlorida Statutes,Statutes, taxtax revenuesrevenues describeddescribed above,above, forfeituresforfeitures andand incomeincome adjustmentsadjustments relatingrelating thereto.thereto. TheThe BoardBoard shallshall maintainmaintain separateseparate Member Member ShareShare Accounts,Accounts, however,however, thethe maintenancemaintenance ofof separateseparate accountsaccounts isis forfor accountingaccounting purposespurposes onlyonly andand aa segregationsegregation ofof thethe assetsassets ofof thethe trusttrust fundfund toto eacheach account account shallshall notnot bebe required required oror permitted.permitted. 2).. 2).. ShareShare AccountAccount Funding.Funding. a.a. IndividualIndividual Member Member ShareShare AccountsAccounts shallshall bebe establishedestablished asas ofof SeptemberSeptember 30,30, 20232023 forfor allall MembersMembers andand DROPDROP participantsparticipants whowho werewere activelyactively employedemployed asas ofof OctoberOctober 1,1, 2022.2022. IndividualIndividual Member Member ShareShare AccountsAccounts shallshall bebe creditedcredited withwith anan allocationallocation asas providedprovided forfor inin thethe followingfollowing subsectionsubsection ( ( 3)3) ofof anyany premiumpremium taxtax moniesmonies whichwhich havehave beenbeen allocatedallocated toto thethe shareshare planplan forfor thatthat PlanPlan Year,Year, beginningbeginning withwith thethe PlanPlan YearYear endingending SeptemberSeptember 30,30, 2023.2023. b.b. AnyAny forfeituresforfeitures asas providedprovided inin subsection subsection ( ( 4),4), shallshall bebe usedused asas partpart ofof futurefuture allocations allocations toto thethe individual individual Member Member ShareShare AccountsAccounts inin accordance accordance withwith thethe formulaformula setset forthforth inin subsectionsubsection ( ( 3)3) a.a. AllocationAllocation ofof MoniesMonies toto ShareShare Accounts.Accounts. a.a. Allocation Allocation ofof ChapterChapter 175175 Contributions.Contributions.  1. Effective as of September 30, 2023, the amount of any premium tax monies allocated to the share plan shall be allocated to individual Member Share Accounts as provided for in this subsection. Members retiring (or entering DROP) on or after October 1, 2022 and prior to September 30, 2023 shall receive an allocation. In addition, all premium tax monies allocated to the Share Plan in any subsequent Plan Year shall also be allocated as provided for in this subsection. Available premium tax monies shall be allocated to individual Member Share Accounts at the end of each Plan Year on September 30 ( a " valuation date"). 2. On each valuation date, each current actively employed Member of the plan not participating in the DROP, each DROP participant and each Retiree who retires or DROP participant who has terminated DROP participation in the Plan Year ending on the valuation date ( including each disability retiree), or Beneficiary of a deceased Member (not including terminated vested persons) who is otherwise eligible for an allocation as of the valuation date shall receive a share allocation as follows: 3. The total funds subject to allocation on each valuation date shall be allocated to each Member Share Account of those eligible for an allocation in an amount equal to a fraction of the total amount, the numerator of which shall be the individual' s total years and fractional parts of years of Credited Service as of the valuation date, and the denominator of which shall be the sum of the total years and fractional parts of years of Credited Service as of the valuation date of all individuals to whom allocations are being made. Beneficiaries shall receive an allocation based on the years of Credited Service of the deceased Member or DROP participant. 4. Re- employed Retirees shall be deemed new employees and shall receive an allocation based solely on the Credited Service in the reemployment period. b. Allocation of Investment Gains and Losses.  On each valuation date, each individual Member Share Account shall be adjusted to reflect the net earnings or losses resulting from investments during the year. The net earnings or losses allocated to the individual Member Share Accounts shall be the same percentage which is earned or lost by the total plan investments, including realized and unrealized gains or losses, net of brokerage commissions, transaction costs and management fees. Net earnings or losses are determined as of the last business day of the fiscal year, which is the valuation date, and are debited or credited as of such date. For purposes of calculating net earnings or losses on a Member's share account pursuant to this