Establishment and operation of Fund.
(A) As part of the system, there is hereby established the Fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the system, including the assets of the prior firefighters' pension systems of the city.
(B) The actual custody and supervision of the Fund (and assets thereof) shall be vested in the Board. Payment of benefits and disbursements from the Fund shall be made by the disbursing agent but only upon written authorization from the Board.
(C) All funds of the Firefighters' Pension System may be deposited by the Board with the Treasurer of the city, acting in a ministerial capacity only, who shall be liable in the same manner and to the same extent as he or she is liable for the safekeeping of funds for the city. However, any funds so deposited with the Treasurer of the city shall be kept in a separate fund by the Treasurer or clearly identified as such funds of the system. In lieu thereof, the Board shall deposit the funds of the system in a qualified public depository as defined in F.S. § 280.02, which depository with regard to such funds shall conform to and be bound by all of the provisions of F.S. Ch. 280. In order to fulfill its investment responsibilities as set forth herein, the Board may retain the services of a custodian bank, an investment consultant, one or more investment advisors (investment managers) registered under the Investment Advisors Act of 1940 or otherwise exempt from such required registration, an insurance company, or a combination of these, for the purposes of investment decisions and management. Such investment advisor(s) shall have discretion, subject to the provisions of division (F) below, in the investment of all Fund assets.
(D) All funds and securities of the system may be commingled in the Fund, provided that accurate records are maintained at all times reflecting the financial composition of the Fund, including accurate current accounts and entries as regards the following:
(1) Current amounts of accumulated contributions of members on both an individual and aggregate account basis; and
(2) Receipts and disbursements; and
(3) Benefit payments; and
(4) Current amounts clearly reflecting all monies, funds and assets whatsoever attributable to contributions and deposits from the city; and
(5) All interest, dividends and gains (or losses) whatsoever; and
(6) Such other entries as may be properly required so as to reflect a clear and complete financial report of the Fund.
(E) An audit shall be performed annually by a certified public accountant for the most recent fiscal year of the system showing a detailed listing of assets and a statement of all income and disbursements during the year. Such income and disbursements must be reconciled with the assets at the beginning and end of the year. Such report shall reflect a complete evaluation of assets on both a cost and market basis, as well as other items normally included in a certified audit.
(F) The Board shall have the following investment powers and authority:
(1) The Board shall be vested with full legal title to said Fund, subject, however, and in any event to the authority and power of the Hollywood City Commission to amend or terminate this Fund, provided that no amendment or Fund termination shall ever result in the use of any assets of this Fund except for the payment of regular expenses and benefits under this system, except as otherwise provided herein. All contributions from time to time paid into the Fund, and the income thereof, without distinction between principal and income, shall be held and administered by the Board or its agent in the Fund and the Board shall not be required to segregate or invest separately any portion of the Fund.
(2) The Board shall have exclusive charge of the investment of any assets in the Fund not needed for the Fund's current obligations, and may invest such assets in accordance with the written investment policy adopted by the Board pursuant to division (F)(3) below. Board members must discharge their duties with respect to the system solely in the interest of the participants and beneficiaries and:
(a) For the exclusive purpose of providing benefits to participants and their beneficiaries, and defraying reasonable expenses of administering the system;
(b) With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; and
(c) By diversifying the investments of the system so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.
(3) The Board shall adopt and periodically update a written investment policy in accordance with F.S. § 112.661, as such statute may be amended in the future. Within the limitations of the foregoing standards and investment policy, the Board is authorized to acquire and retain in the Fund every kind of investment, specifically including, but not limited to, stocks, bonds, securities, debentures, real estate, mutual funds, trusts, and other obligations which persons of prudence, discretion and intelligence acquire or retain for their own account.
(4) The intent of this division is to exclude any and all restrictions on investments otherwise imposed by F.S. Ch. 175, but only if this subsection, with the exclusion of such restrictions, is in compliance with the provisions of F.S. Ch. 175. If this division, with the exclusion of the restrictions imposed by F.S. Ch. 175, is deemed not to be in compliance with F.S. Ch. 175, then such restrictions shall be incorporated herein in their entirety.
(5) In carrying out its investment duties, the Board shall engage such custodial, investment management, and other professional consultants as the Board deems necessary and prudent.
(6) At least once every three years, and more often as determined by the Board, the Board shall retain a professionally qualified independent consultant, as defined F.S. § 175.071 to evaluate the performance of all current investment managers and make recommendations regarding the retention of all such investment managers. These recommendations shall be considered by the Board at its next regularly scheduled meeting.
(7) The Board may retain in cash and keep unproductive of income such amount of the Fund as it may deem advisable, having regard for the cash requirements of the system.
(8) The Board may cause any investment in securities held by it to be registered in or transferred into its name as trustee or into the name of such nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the Fund.
(9) The Board is empowered, but is not required, to vote upon any stocks, bonds, or securities of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations, consolidations, and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust or any protective or like committee with the trustees or with depositories designated thereby; to amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally to exercise any of the powers of an owner with respect to stocks, bonds, or other investments comprising the Fund which it may deem to be to the best interest of the Fund to exercise.
(10) The Board shall not be required to make any inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power contained herein.
(11) Where any action which the Board is required to take or any duty or function which it is required to perform either under the terms herein or under the general law applicable to it as trustee under this subchapter, can reasonably be taken or performed only after receipt by it from a member, the city, or any other entity, of specific information, certification, direction or instructions, the Board shall be free of liability in failing to take such action or perform such duty or function until such information, certification, direction or instruction has been received by it.
(12) Any overpayments or underpayments from the Fund to a member, retiree or beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the Board in such a manner that the actuarial equivalent of the benefit to which the member, retiree or beneficiary was correctly entitled, shall be paid. Overpayments shall be charged against payments next succeeding the correction or collected in another manner if prudent. Underpayments shall be made up from the Fund in a prudent manner.
(13) The Board shall sustain no liability whatsoever for the sufficiency of the Fund to meet the payments and benefits provided for herein.
(14) In any application to or proceeding or action in the courts, only the Board shall be a necessary party, and no member or other person having an interest in the Fund who is not a party to the proceeding shall be entitled to any notice or service of process. Any judgment entered in such a proceeding or action shall be conclusive upon all persons.
(15) Any of the foregoing powers and functions reposed in the Board may be performed or carried out by the Board through duly authorized agents, provided that the Board at all times maintains continuous supervision over the acts of any such agent; provided further, that legal title to said Fund shall always remain in the Board.
(Ord. O-2010-30, passed 7-21-10)