(A) This subchapter establishing the system and Fund, and subsequent ordinances pertaining to said system and Fund, may be modified, terminated, or amended, in whole or in part; provided that if this or any subsequent ordinance shall be amended or repealed in its application to any person benefiting hereunder, the amount of benefits which at the time of any such alteration, amendment, or repeal shall have accrued to the member or beneficiary shall not be affected thereby, except to the extent that the assets of the Fund may be determined to be inadequate.
(B) If this subchapter shall be repealed, or if contributions to the system are discontinued or if there is a transfer, merger or consolidation of government units, services or functions as provided in F.S. Ch. 121, the Board shall continue to administer the system in accordance with the provisions of this subchapter, for the sole benefit of the then members, any beneficiaries then receiving retirement allowances, and any future persons entitled to receive benefits under one of the options provided for in this ordinance who are designated by any of said members. In the event of repeal, discontinuance of contributions, or transfer, merger or consolidation of government units, services or functions, there shall be full vesting 100% of benefits accrued to date of repeal and the assets of the system shall be allocated in an equitable manner to provide benefits on a proportionate basis to the persons so entitled in accordance with the provisions thereof.
(C) (1) The following shall be the order of priority for purposes of allocating the assets of the system as of the date of repeal of this subchapter, or if contributions to the system are discontinued, with the date of such discontinuation being determined by the Board.
(a) Apportionment shall first be made in respect of each retiree receiving a retirement or disability benefit hereunder on such date, each person receiving a benefit on such date on account of a retired or disabled (but since deceased) member, and each member who has, by such date, become eligible for normal retirement but has not yet retired, an amount which is the actuarial equivalent of such benefit, provided that, if such asset value be less than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such asset value.
(b) If there be any asset value remaining after the apportionment under division (C)(1)(a) above, apportionment shall next be made in respect of each member in the service of the city on such date who is vested and who is not entitled to an apportionment under division (C)(1)(a) above, in the amount required to provide the actuarial equivalent of the vested portion of the accrued normal retirement benefit (but not less than accumulated contributions), based on the credited service and average final compensation as of such date, and each vested former member then entitled to a deferred benefit who has not, by such date, begun receiving benefit payments, in the amount required to provide said actuarial equivalent of the vested portion of the accrued normal retirement benefit (but not less than accumulated contributions), provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value.
(c) If there be any asset value after the apportionments under divisions (C)(1)(a) and (b) above, apportionment shall be made in respect of each member in the service of the city on such date who is not entitled to an apportionment under divisions (C)(1)(a) and (b) above in the amount equal to member's accumulated contributions, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder such latter amount shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value.
(d) If there be any asset value remaining after the apportionments under divisions (C)(1)(a) through (c) above, apportionment shall lastly be made in respect of each member included in division (C)(1)(c) above to the extent of the actuarial equivalent of the non-vested accrued normal retirement benefit, less the amount apportioned in division (C)(1)(c) above, based on the credited service and average final compensation as of such date, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such amounts shall be reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value.
(e) In the event that there be asset value remaining after the full apportionment specified in divisions (C)(1)(a) through (d) above, such excess shall be returned to the city, less return of the state's contributions to the state, provided that, if the excess is less than the total contributions made by the city and the state to the date of termination such excess shall be divided proportionately to the total contributions made by the city and the state.
(2) The allocation of the Fund provided for in this division may, as decided by the Board, be carried out through the purchase of insurance company contracts to provide the benefits determined in accordance with this division. The Fund may be distributed in one sum to the persons entitled to said benefits or the distribution may be carried out in such other equitable manner as the Board may direct. The Fund may be continued in existence for purposes of subsequent distributions.
(3) (a) If, at any time during the first ten years after the effective date of the ordinance originally establishing this system, the system shall be terminated or the full current costs of the system shall not have been met, anything in the system to the contrary notwithstanding, city contributions which may be used for the benefit of any one of the 25 highest paid members on the effective date, whose anticipated annual retirement allowance provided by the city's contributions at member's normal retirement date would exceed $1,500, shall not exceed the greater of either:
1. Twenty thousand dollars, or
2. An amount computed by multiplying the smaller of $10,000 or 20% of such member's average annual earnings during his or her last five years of service by the number of years of service since the effective date.
(b) In the event that it shall hereafter be determined by statute, court decision, ruling by the Commissioner of Internal Revenue, or otherwise, that the provisions of this division are not then necessary to qualify the system under the Internal Revenue Code, this division shall be ineffective without the necessity of further amendment of this subchapter.
(D) After all the vested and accrued benefits provided hereunder have been paid and after all other liabilities have been satisfied, then and only then shall any remaining funds revert to the general fund of the city.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2019-08, passed 3-20-19)