(A) Effective on October 1, 2010, the total "applicable frozen amount" of Chapter 175 premium tax revenues, as reflected in the actuarial impact statement for the Pompano Beach Police and Firefighters' Retirement System, and future actuarial valuation reports, shall be increased to $821,230. The city may use all Chapter 175 premium tax revenues received during the plan year (or in the case of a supplemental distribution, revenues applicable to the plan year even if received after the end of the plan year), up to the "applicable frozen amount," to reduce the city's required contributions to the Retirement System during the following fiscal year. Except as otherwise provided in subsection (B) below, any premium tax revenues received by the city in excess of the $821,230 "applicable frozen amount" during any plan year beginning October 1, 2010 or later shall be used for the supplemental pension benefit as described in subsection (C) below.
(B) Effective September 30, 2022, the supplemental retirement benefit for firefighters established by Ordinance 2011-68 is terminated and repealed. Effective October 1, 2022, in accordance with Section 175.351, Florida Statutes, the city and the union representing city firefighters have mutually agreed that all Chapter 175 premium tax revenues received each year shall be used to offset city pension contributions, and there shall be no further allocations of Chapter 175 premium tax revenues to the supplemental retirement benefit for firefighters or individual share accounts after that date. Firefighter members who have an individual share account balance in the supplemental retirement benefit plan on September 30, 2022, shall choose to receive either an in-service distribution of all or a portion of their share account balance as of that date, to transfer or roll over all or a portion of their share account balance to an IRA or qualified retirement plan or a combination of both. The provisions of this subsection (B) shall remain in effect until modified by mutual agreement of the city and the union representing city firefighters.
(C) Effective October 1, 2022, a defined contribution plan component, the firefighter’s share plan, is hereby established as required by § 175.351(6), Florida Statutes. The city and the union representing firefighters have mutually agreed that no Chapter 175, Florida Statutes, premium tax revenues will be allocated to the share plan. The share plan shall not be activated unless and until Chapter 175, Florida Statutes, premium tax revenues are allocated to the share plan by mutual agreement of the city and the union representing the city firefighters and said union and the city agree upon the details of the share plan.
(D) The supplemental pension retirement benefit shall consist of an individual share account for each active firefighter, including DROP participants, for the City of Pompano Beach. The supplemental retirement benefit shall be funded solely by premium tax revenues received by the city pursuant to Chapter 175, Florida Statutes, as provided for by the City of Pompano Beach Code of Ordinances. The total initial amount to be allocated to the participants' share accounts as provided herein shall be $2,540,196. For plan years beginning October 1, 2010 and later, all premium tax revenues received by the city pursuant to Chapter 175, Florida Statutes, in excess of $821,230 shall be allocated to the participants' share accounts as provided for herein. Participants' share accounts shall be credited with premium tax revenues and investment earnings or losses, and interest, and distributed as follows:
(1) Initial crediting. The share account of each active firefighter and DROP participant on the city's payroll as of September 30, 2010, shall be credited retroactively as follows. Each member who was employed on September 30, 2010 as a firefighter shall receive one share for each month of continuous service, as defined in § 34.045 of the City of Pompano Beach Code of Ordinances earned from the date of hire through September 30, 2010. The total number of shares thus determined shall be divided into the initial amount of premium tax revenues to be allocated ($2,540,196) to derive the initial value of each share.
(2) Annual crediting. Effective January 1, 2012, and each January 1 thereafter, the share account of each active firefighter and DROP participant on the city's payroll as of the preceding September 30 shall be credited as follows. Each active firefighter and DROP participant who was employed on the preceding September 30 shall receive one share for each month of continuous service, as defined in § 34.045, earned during the plan year ending on the same September 30. The total number of shares thus determined shall be divided into the premium tax revenues received during that plan year (or in the case of a supplemental distribution, revenues applicable to that plan year even if received after the end of the plan year) in excess of $821,230, to determine the amount to be credited to the share account of each eligible share plan participant.
(3) Investment earnings and losses, or interest. Effective January 1, 2012, and each January 1 thereafter, the share account of each active firefighter and DROP participant shall be credited or debited with earnings or losses based upon the amount in the share account at the close of the immediately preceding calendar year at a rate equal to the pension plan's actual net rate of investment return for the preceding plan year. In the alternative, share plan participants who are within five years of their expected termination of employment date shall have the option to make a one-time irrevocable election, in writing to the Board of Trustees for the Retirement System, to have interest credited to their share account from a money market mutual fund selected by the Board of Trustees, rather than credited or debited at the pension plan's actual net rate of investment return. All share plan participants' accounts will be credited with the pension plan's actual net rate of investment return unless otherwise elected by a member as provided for herein.
(4) Distribution of share accounts. An active firefighter or DROP participant with seven or more years of continuous service upon termination of employment and eligibility for receipt of pension benefits shall be eligible to receive a distribution of 50% of the balance in his or her share account, together with all earnings and losses and interest credited to the share account through the date of termination of employment. An active firefighter or DROP participant with 15 or more years of continuous service upon termination of employment and eligibility for receipt of pension benefits shall be eligible to receive a distribution of 75% of the balance in his or her share account, together with all earnings and losses and interest credited to the share account through the date of termination of employment. An active firefighter or DROP participant with 20 or more years of continuous service upon termination of employment and eligibility for receipt of pension benefits shall be eligible to receive a distribution of 100% of the balance in his or her share account, together with all earnings and losses and interest credited to the share account through the date of termination of employment. No benefit shall be payable to an active firefighter who terminates covered employment with less than seven years of credited service. The share account balances of such non-vested terminated members shall be redistributed among all eligible participants' share accounts in the same manner as premium tax revenues in the following calendar year. The designated beneficiary of an active firefighter who dies shall receive the accumulated total of his or her share account balance, and an active firefighter awarded a disability pension from the pension plan shall receive the accumulated total of his or her share account balance. There shall be no forfeiture of a member's share account based on the member's death, disability or termination of employment with seven or more years of credited service. Payment of share account benefits shall be by lump sum, which shall consist of the accumulated total balance of the active firefighter's share account, or, at the participant's direction, the share account balance may be rolled over to another qualified plan in accordance with § 34.0571(D) of this plan, with an additional payment made for any amount credited in the year following termination of employment.
(Ord. 2011-68, passed 7-26-11; Am. Ord. 2012-31, passed 3-13-12; Ord. 2023-10, passed 11-8-22; Am. Ord. 2023-19, passed 12-13-22; Am. Ord. 2023-31, passed 1-24-23)