(A) Fire Share Plan established. The Palm Bay Firefighter Share Plan (hereinafter "Fire Share Plan") is hereby established. The purpose of this section is to implement the provisions of Chapter 175, Florida Statutes, and to provide a mechanism to pay required "special benefits" pursuant to Section 175.351, Fla. Stat. The Fire Share Plan shall be funded exclusively with available premium tax revenue received from the State of Florida pursuant to Chapter 175 and shall be in addition to the monthly defined benefit payable under the system. "Available premium tax revenues" means the amount in excess of $150,000 in the excess state monies reserve as of October 1, 2015 as provided in subsection (B) below, and the annual amount of Chapter 175 premium tax revenues in excess of $825,324 as provided in subsection (C) below. The Fire Share Plan shall be administered by the Board.
(B) Creation of share accounts and initial contribution. The Fire Share Plan shall be initially funded with the sum of $7,840.00, representing unallocated Chapter 175 funds in the excess state money reserve as of October 1, 2015 in excess of $150,000. For accounting purposes, an individual share account shall be established for each active firefighter member, including DROP participants. An eligible active Fire Share Plan "member" is defined as a firefighter who is currently making contributions to the System, on military leave, or participating in the DROP, on or after September 30, 2015. The initial allocation of the excess state monies reserve shall be made to the share accounts of eligible members based on the credited service of each eligible member. Each eligible member shall receive an initial allocation equal to the total months of credited service of the individual member divided by the total months of credited service of the all eligible members. The Fire 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 175 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. § 175.351. Premium tax revenue is not available for payment into the Fire Share Plan unless the annual premium tax distribution exceeds $825,324 (hereinafter the "special benefit threshold"). If the annual premium tax distribution exceeds the special benefit threshold, fifty percent (50%) of the sum above $825,324 shall be paid into the Fire 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 an equal share of the available funds received during the fiscal year, less administrative expenses, deposited into his/her share account.
(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 Fund's investment consultant. Available funds and share account balances shall be commingled with assets of the System for investment purposes, and invested by the Board with other System assets. The Plan Administrator shall provide an annual statement to the Board and each Fire Share Plan member on or before June 1 of each year showing each member individual share account balance and the interest credited to the members account for that year. The expense of administering the Fire 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, administration fees shall be paid by the Fire Pension Plan.
(E) Share Plan distributions. Distributions shall only be available for members who separate from City employment after having been granted an early, normal or non-duty disability pension, and have attained a minimum of ten (10) years of credited service, or after having been granted an in-line-of-duty disability pension, hereinafter "vested" Fire Share Plan members. In the event a Fire Share Plan member separates from City employment without having become a vested Share Plan member, 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 Fire Share Plan member who separates from City employment after having become a vested Share Plan member shall be entitled to a vested share balance. Fire Share Plan funds shall be distributed as follows, depending on the date that a vested Fire Share Plan member separates from service:
(1) Separation prior to annual approval. If a vested Fire 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 90 days. The remainder shall be distributed within 90 days after the Board approves the share balances for the most recent September 30th.
(2) Separation after annual approval. If a vested Fire 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 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 55.30
(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 Fire Share Plan.
(Ord. 2017-34, passed 5-4-17; Am. Ord. 2017-100, passed 1-4-18)