(A) Upon termination of the system by the city for any reason or because of a transfer, merger, or consolidation of governmental units, services, or functions as provided in Chapter 121, Florida Statutes, or upon written notice by the city to the Board that contributions under the system are being permanently discontinued, the rights of all members to benefits accrued to the date of such termination and the amounts credited to the members' accounts are nonforfeitable. The Fund shall be distributed in accordance with the following procedures:
(1) The Board shall determine the date of distribution and the asset value required to fund all the nonforfeitable benefits after taking into account the expenses of such distribution. The Board shall inform the city if additional assets are required. in which event the city shall continue to financially support the system until all nonforfeitable benefits have been funded.
(2) The Board shall determine the method of distribution of the asset value, whether distribution shall be by payment in cash, by the maintenance of another or substituted trust fund, by the purchase of insured annuities, or otherwise, for each member entitled to benefits under the system as specified in division (3) below.
(3) The Board shall distribute the asset value as of the date of termination in the manner set forth in this division, on the basis that the amount required to provide any given retirement income is the actuarially computed single-sum value of such retirement income, except that if the method of distribution determined under division (2) above involves the purchase of an insured annuity, the amount required to provide the given retirement income is the single premium payable for such annuity. The actuarial single-sum value may not be less than the member's accumulated contributions to the system, with interest if provided by the system, less the value of any system benefits previously paid to the member.
(4) If there is asset value remaining after the full distribution specified in division (3) above, and after the payment of any expenses incurred with such distribution, such excess shall be returned to the city, less return to the state of the state's contributions, provided that, if the excess is less than the total contributions made by the city and the state to date of termination of the system, such excess shall be divided proportionately to the total contributions made by the city and the state.
(5) The Board shall distribute, in accordance with division (2) above, the amounts determined under division (3) above.
(B) If, after 24 months after the date the system terminated or the date the Board received written notice that the contributions thereunder were being permanently discontinued, the city or the Board of the system's pension trust fund affected has not complied with all the provisions in this section, the Department of Management Services shall effect the termination of the fund in accordance with this section.
(`69 Code, § 5-183) (Ord. 557, passed 2-19-81; Am. Ord. 1353, passed 9-20-00; Am. Ord. 1443, passed 6-18-03; Am. Ord. 1480, passed 3-17-04; Am. Ord. 1767, passed 1-15-14)