(A) There is hereby created the City of Hollywood Chapter 175 Share Plan.
(B) The plan shall be managed and administered by the Board of Trustees of the City of Hollywood Firefighters' pension system.
(C) The plan shall be funded exclusively through excess, undedicated Chapter 175 insurance premium rebate taxes as further described in this section.
(D) The membership of the plan shall consist of all Tier 1 and Tier 2 members in active service as of July 16, 2009, excluding retirees and persons who entered the DROP prior to July 16, 2009.
(E) For the period worked by any participant from October 1, 2004 through September 30, 2008, the participant shall receive a one-half share for each six months or part thereof up to a maximum of four shares. The value of each share shall be determined by dividing the total number of shares into the aggregate excess insurance premium tax revenue on September 30, 2008. For the purposes of this section, AGGREGATE EXCESS INSURANCE PREMIUM TAX REVENUE shall mean the sum of the excess insurance premium tax revenue not otherwise committed to the payment of existing defined benefits. The premium tax revenue committed to existing defined benefits is the amount set forth in the 2005 actuarial valuation report and the 2008 actuarial valuation report. Commencing on July 3, 2013, AGGREGATE EXCESS INSURANCE PREMIUM TAX REVENUE shall mean the amount, if any, by which the Chapter 175 insurance premium rebate taxes received in a particular year exceeds $1,562,180 and for the period commencing in 2014, up through and including 2017 only, any excess premium tax above the limit in this section shall also be included.
(F) For each calendar year commencing with 2009, each employee or former employee who earned credited service in the pension plan during the previous calendar year shall receive one-half share for each six months or any part thereof of credited service (including approved leave and military leave) earned during said previous year. These shares, if any, shall be inclusive of the shares earned in division (E) above and shall not be in addition thereto. The value of the share for any year shall be determined by dividing the available insurance premium tax money received for that year (regardless of when received) by the total number of shares earned. For the purposes of this section, the term AVAILABLE INSURANCE PREMIUM TAX MONEY shall have the same meaning as aggregate excess insurance premium tax revenue.
(G) Eligible Tier 1 and Tier 2 members shall earn shares for all active service prior to entering the DROP. For all service after entry into the DROP, the member shall not receive additional shares.
(H) Share plan assets shall be invested by the Board in government insured certificates of deposit, fixed income instruments, mutual funds, money market funds or commingled funds thereof, as determined by the Board.
(I) Should a member of the share plan terminate service with the city prior to vesting in the defined benefit plan, all shares shall be deemed forfeited and the proceeds
divided during the following January among those share plan members who earned shares during the year of termination.
(J) Distribution of shares upon retirement and separation from service shall be made by lump sum or by rollover consistent with the applicable provisions of the Internal Revenue Code.
(K) The share plan shall be at no actuarial or other cost to the city. All administrative expenses of the share plan shall be deducted from each year's available premium tax money before it is credited to the share accounts to pay for the administration of the Board. No participant in the share plan shall have any constitutionally-protected contract or property rights to any benefits in the share plan except with regard to those shares already accrued. In the event the State of Florida shall terminate the insurance premium tax rebate program, the plan shall be administered solely on the basis of shares then accumulated.
(L) The Board shall have the power to promulgate uniform rules for the management of the share plan.
(Ord. O-2010-30, passed 7-21-10; Am. Ord. O-2013-14, passed 7-3- 13; Am. Ord. O-2019-08, passed 3-20-19)