(A) Share Plan established. The Palm Bay Police Share Plan (hereinafter "Police Share Plan") is hereby established as of October 1, 2016. The purpose of this section is to implement the provisions of F.S. Chapter 185 and to provide a mechanism to pay required "special benefits" pursuant to F.S. § 185.35. The Police Share Plan shall be funded exclusively with available premium tax revenues received from the State of Florida pursuant to Chapter 185 and shall be in addition to the monthly defined benefit payable by the under the system. "Available premium tax revenues" means the amount in excess of $380,000 in the excess state monies reserve as of June 1, 2016 as provided in subsection (b) below, and the annual amount of Chapter 185 premium tax revenues in excess of $520,734.08 as provided in subsection (c) below. The Police Share Plan shall be administered by the Board.
(B) Creation of share accounts and initial contribution. The Police Share Plan shall be initially funded with the sum of $6,474.59, representing unallocated Chapter 185 funds in the excess state monies reserve as of June 1, 2016 in excess of $380,000. Effective October 1, 2016, for accounting purposes, an individual share account shall be established for each active police officer member, including DROP participants. An eligible active "member" is defined as a police officer who is currently making contributions to the System, on military leave, or participating in the DROP. The initial allocation of the excess state monies reserve shall be made to the share accounts of eligible members based on each eligible member's number of shares. A "share" is defined as one (1) full month of credited service in the System as identified by the Board. (Example: one (1) month of credited service is equal to one (1) share; one (1) year of credited service is equal to twelve (12) shares.) The Police Share Plan shall account for each member's share account balance as provided herein.
(C) Annual determination. Each year, after receipt of the annual distribution of Chapter 185 money from the State, the Board, in consultation with their actuary, shall determine the amount of available premium tax revenue, if any, received pursuant to F.S. § 185.35. Premium tax revenue is not available for payment into the Police Share Plan unless the annual premium tax distribution exceeds $520,734.08 (hereinafter the "special benefit threshold"). If the annual premium tax distribution exceeds the special benefit threshold, fifty percent (50%) of the sum above $520,734.08 shall be paid into the Police Share Plan. The remaining fifty percent (50%) shall be used to reduce the City's annual pension contribution. In future years in which there are available funds, each member on September 30th of each year shall receive shares of the available funds received during the fiscal year, less administrative expenses, as follows:
(1) Annually the Board will calculate the number of shares earned by each active member of the Police Share Plan.
(2) Annually, the Board shall calculate the total number of shares earned by active members and the value of shares using (i) any available Chapter 185 premium tax revenue received during the year under subsection 55.29(c) and (ii) funds forfeited from members who separate from service without having been granted an early, normal or disability pension. The Board will calculate the value of the available funds and divide it by the total number of shares earned by active members to determine the monetary value of one (1) share for the year, less administrative expenses. The Board shall report the value of one (1) share to the FOP and the City annually.
(Example 1: A member with 10 years of credited service would earn 120 shares. If the value of a share is $2.00 per share, a member's share value will be $240.00 at the time of distribution. Example 2: A member with 25 years of credited service would earn three hundred (300) shares. If the value of a share is $2.000 per share, a member's share value will be $600.00 at the time of distribution.)
(3) In the event a Police Share Plan member separates from City employment without having been granted an early, normal or disability pension, the member shall forfeit his/her share account balance, and the forfeited account balance shall be added to the available funds for that year. A member who separates from City employment on or after being granted an early, normal or disability pension shall be entitled to a vested share balance.
(D) Interest crediting. On September 30 of each year share accounts shall be credited with interest at an annual rate equal to the market rate of return on pension fund investments for that fiscal year ended September 30, net of investment related expenses as reported by the System's Investment Consultant. Available funds and share account balances shall be commingled with assets of the Fund for investment purposes, and invested by the Board with other Fund assets. The Plan Administrator shall provide an annual statement to the Board and each Police Share Plan member on or before June 1 of each year showing each member's individual share account balance and the interest credited to the member's account for the preceding year. The expense of administering the Police Share Plan for the preceding year shall be determined by the Board and charged against the available funds received for that year, before allocations are made to the member share accounts. If no funds are available, Police administration fees shall be paid by the Police Fund.
(E) Share Plan Distributions. Distributions shall only be available for members who separate from City employment after having been granted an early, normal or disability pension, hereinafter "vested" Police Share Plan members. Police Share Plan funds shall be distributed as follows, depending on the date that a vested Police Share Plan member separates from service:
(1) Separation prior to annual approval: If a vested Police Share Plan member separates from City employment between October 1st and the date the Board approves the share balances of the most recent September 30th, eighty percent (80%) of the last share balance that was approved by the Board shall be paid within ninety (90) days. The remainder shall be distributed within ninety (90) days after the Board approves the share balances for the most recent September 30th.
(2) Separation after annual approval: If a vested Police Share Plan member separates from City employment after the date the Board approves the share balances of the most recent September 30th, the full share balance as of the most recent September 30th shall be distributed within ninety (90) days.
(F) Rollovers. All or any portion of a member's share account distribution may be rolled over to an IRA or other qualified plan in accordance with the Internal Revenue Code. If a member dies before retirement, the member's share account balance on the date of death shall be distributed in a lump sum to the member's designated beneficiary or estate in accordance with subsection 55.29
(E)(1) or (E)(2) above.
(G) Rule-making authority. The Board shall be authorized to adopt any rules necessary for the administration of the Police Share Plan.
(Ord. 2017-29, passed 4-6-17)