The Board of Trustees has created and has been authorized to distribute an annual supplemental pension benefit which is payable on September 30 of each year. This supplemental pension benefit shall be calculated, administered and distributed as follows:
(A) The actuary for the system shall determine the percentage rate of investment return on the Fund assets during the 12-month period ending each September 30 ("annual investment return"). The rate determined shall be the rate reported in the most recent actuarial report submitted pursuant to F.S. Ch. 112, Part VII.
(B) If the annual investment return exceeds the actuary's annual fund earnings assumption rate of 8%, then a supplemental pension distribution shall be made to eligible recipients. If the annual investment return equals or is less than the assumption rate, no supplemental pension distribution shall be made that year.
(C) The value of the supplemental pension benefit fund shall be equal to the value of the positive difference, if any, between the annual investment return (up to a maximum rate of 10%) and the annual fund earnings assumption rate of 8% to a maximum annual investment return value of up to 2% as calculated on the eligible retirees' portion of the Fund's earnings attributable to assets apportioned to retiree benefit liability.
(D) Supplemental pension benefit distributions shall be paid only to:
(1) Pension recipients who retired or entered into the DROP (i) on or before September 30, 2011 and (ii) at least ten years prior to September 30 of the year for which supplemental pension benefits are to be paid and their surviving spouses who have not remarried; and
(2) Pension recipients who are (or were, prior to separation) Tier 1 members and who retired or entered into the DROP or the reformed plan retirement benefit (i) on or before March 20, 2019 and (ii) at least ten years prior to September 30 of the year for which supplemental pension benefits are to be paid and their surviving spouses who have not remarried.
(E) The supplemental pension benefit fund shall be divided into equal shares, the number of which shall equal the aggregate number of eligible recipients. On an annual basis, one share shall be awarded and paid, when appropriate, to each eligible recipient.
(F) The benefits provided for in this section shall not exceed $12,000 per year for any Tier 1 member who retires or enters the deferred retirement option plan on or after July 16, 2009.
(G) The supplemental benefits provided under this section shall only be paid after such time as the system has recovered any aggregate losses experienced beginning with the actuarial experience on or after October 1, 2008. If the plan has failed to recover any such aggregate losses, then no supplemental benefit shall be paid.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2011-26, passed 9-7- 11; Am. Ord. O-2019-08, passed 3-20-19)