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(a) The accumulated contribution accounts are hereby created. It shall be the accounts in which shall be accumulated at regular interest the contributions deducted from the compensation of members to finance their share of the costs of providing pensions, and from which refunds and transfers of accumulated contributions shall be made as provided in this subchapter.
(b) The contribution of members to the pension fund shall be 8% of the compensation paid by the city for services rendered to the city as a firefighter. Effective January 6, 2014, the contribution of a firefighter member shall be 9% of the employee's compensation; effective January 5, 2015, the contribution of a firefighter member shall be 10% of the employee's compensation.
(c) The officer responsible for making up the payroll shall cause the contributions provided for in division (b) above to be deducted from the compensation of each member on each and every payroll, for each and every payroll period, so long as he or she remains a member in the employ of the city. The contributions provided for in this section shall be made notwithstanding that the minimum compensation provided by law for any member shall be changed thereby. Each member shall be deemed to consent and agree to the deductions made and provided for in this section, and payment of his or her compensation less the deduction shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by the member during the period covered by the payment except as to benefits provided by this subchapter. The officer responsible for making up the payroll shall certify to the city finance director the contribution to be deducted from the compensation of each member for each and every payroll. Each of the amounts shall be deducted by the city finance director and when deducted shall be paid into the pension fund and credited to the individual accumulated contributions account of the member from whose compensation the deduction was made.
(d) At the expiration of a period of four years following the date a member's membership terminates any balance of accumulated contributions in his or her accumulated contributions account, unclaimed by the member or his or her legal representative, shall remain with the pension fund.
(e) In addition to the contributions deducted from the compensation of a member, as provided in this section, the member shall pay into the accumulated contributions account, by a single contribution within six months after the date of reemployment, the amount required to be repaid by § 39.308. In no case shall any member be given credit for service rendered prior to the date the member withdrew the accumulated contributions until the member repays to the accumulated contributions account all amounts due the accumulated contributions account by the member.
(f) (1) The city shall pick up the member contribution required by division (b) above for all compensation earned after the effective date of this division (f). The contributions so picked up shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code. The city shall pick up the member contributions from funds established and available in the salaries account, which funds would otherwise have been designated as member contributions and paid to the pension fund. Member contributions picked up by the city pursuant to this division (f)(1) shall be treated for all other purposes of this and other laws of the city in the same manner and to the same extent as member contributions made prior to the effective date of this division (f)(1).
(2) Member contributions to the pension fund shall be paid by the city on behalf of all members. Payment of the member's contribution picked up by the city shall be made by reducing the amount of the compensation payable to those members and making payment of the amount directly to the pension fund. Contributions, although designated as member contributions, are being paid by the city in lieu of contributions by the members. Members do not have the option of choosing to receive the contributed amounts directly instead of having them paid by the city to the pension fund.
(3) The effective date of this division (f)(3) shall be the first day of the first pay period after the city has received notification of approval from the Internal Revenue Service that, pursuant to § 414(h) of the United States Internal Revenue Code, the member contributions so picked up shall not be included in gross income for tax purposes until a time as they are distributed by refund or benefit payment, but the effective date shall not be prior to December 15, 2003.
(1957 Rev. Ords., § 2.1126; 1992 Code, § 35-106) (Ord. 4-82, passed 1-14-1982; Ord. 108-85, passed 12-2-1985; Ord. 59-86, passed 6-9-1986; Ord. 110-90, passed 12-3-1990; Ord. 88-91, passed 11-25-1991; Ord. 5-01, passed 1-16-2001; Ord. 55-02, passed 7-8-2002; Ord. 06-04, passed 1-12-2004; Ord. 24-13, passed 5-7-2013; Ord. 118-16, passed 12-20-2016)
(a) (1) The pension fund is hereby created. It shall be the fund in which shall be accumulated reserves for the payment of pensions payable from funds provided by the city.
(2) Upon the basis of the mortality and other tables of experience, and regular interest, as the board shall from time to time adopt, the actuary shall annually compute the reserves for:
A. Pensions being paid retirants and beneficiaries; and
B. Pensions likely to be paid on account of service rendered and to be rendered by members.
(3) The fund shall be financed by annual appropriations, to be made by the council, determined according to this division (a) and divisions (b), (c) and (d) below.
(b) The appropriations for members' current service shall be a percent of their annual compensations which will produce an amount which if paid annually by the city during their future service will be sufficient to provide the reserves at the time of their retirements, for the portions of the pensions to be paid them based upon their future service.
(c) The appropriation for members' accrued service shall be a percent of their annual compensations which will produce an amount which if paid annually by the city over a period of years, to be determined by the council, will amortize, at regular interest, the unfunded pension funds for the accrued service portions of the pensions to which they might be entitled.
(d) The appropriation for pensions being paid retirants and beneficiaries shall be a percent of the annual compensations of members which will produce an amount which if paid annually by the city over a period of years, to be determined by the council, will amortize, at regular interest, the unfunded amounts for pensions being paid retirants and beneficiaries.
(e) Until the reserves accumulated in the pension fund equal or exceed the present value of all pensions payable from the fund, the city's contributions to the pension fund, in any fiscal year, shall not be less than 12% of the aggregate compensations paid members during the preceding fiscal year.
(f) To cover all or part of the city's contributions to the pension fund, as provided in this section, the city may levy an annual tax upon the assessed valuation of the city for the current year, which levy shall be in addition to the amount authorized to be levied for general purposes. The levy shall be determined by the council as required in this section.
(g) All contributions made by the city under this pension fund shall be deposited in the pension fund. However, contributions made by the city are expressly conditioned upon the initial qualification of the pension fund under the Internal Revenue Code. Upon the city's request, a contribution which was made by mistake of fact or conditioned upon initial qualification shall be returned to the city within one year after the payment of the contribution or the denial of the qualification.
(h) Except as otherwise provided in this section, all assets of the pension fund, including investment income, shall be retained for the exclusive benefit of members and their beneficiaries, shall be used to pay benefits to those persons or to pay administrative expenses to the extent not paid by the city and shall not revert to or inure to the benefit of the city.
(i) In no event shall the city receive any amounts from the fund upon termination of the pension fund, except that, and notwithstanding any other provision of the pension fund, the city shall receive those amounts, if any, as may remain after the satisfaction of all liabilities of the pension fund and arising out of any variations between actual requirements and expected actuarial requirements.
(1957 Rev. Ords., § 2.1127; 1992 Code, § 35-107) (Ord. 2696, passed 7-27-1970; Ord. 119-84, passed 8-27-1984; Ord. 110-90, passed 12-3-1990; Ord. 36-95, passed 3-6-1995; Ord. 118-16, passed 12-20-2016)
All monies received by the city from the insurance department of the state, as the city's proportionate share of the insurance fund collected from the various insurance companies, shall be credited to the pension fund. All gifts, devises and bequests to the pension fund shall be credited to the pension fund.
(1957 Rev. Ords., § 2.1129; 1992 Code, § 35-109; Ord. 118-16, passed 12-20-2016)
(a) Any provision in this subchapter to the contrary notwithstanding, if in any year, the aggregate amount of pensions payable to retirants and beneficiaries is more than the total monies in the pension fund arising from:
(1) City and state contributions; and
(2) Contributions made by members on whose account pensions are being paid.
(b) Then the pensions being so paid shall be reduced pro rata so that the aggregate amount of the reduced pensions does not exceed the total of the monies in the pension fund arising from:
(1) City and state contributions; and
(2) Contributions made by members on whose account pensions are being paid.
(1957 Rev. Ords., § 2.1130; 1992 Code, § 35-110)
Any pensions being paid, at the effective date of the ordinance from which this subchapter derives, from funds of the predecessor Firefighters' Pension Fund shall become, as of the effective date, an obligation of the pension fund. The pensions shall be continued without change as to amount, subject to § 39.329. All property, assets and records of every description held in the name of the predecessor Firefighters' Pension Fund shall be transferred to the pension fund established by this subchapter.
(1957 Rev. Ords., § 2.1131; 1992 Code, § 35-111; Ord. 118-16, passed 12-20-2016)
(a) The retirement board shall be the trustees of the assets of the Firefighters' Pension Fund. The board shall have full and independent power to invest and reinvest the monies and assets of the fund and to hold, purchase, sell, assign, transfer and dispose of any securities and investments of the fund.
(b) The board shall establish a written investment policy, with the advice and counsel of the advisors as the board deems necessary, and the investment policy shall set forth the types of investments into which shall be placed the assets of the pension fund. The policy shall further set forth appropriate provisions with respect to those investments, including, but not limited to, the anticipated rate of return, quality of investment, class of investment, maturity and liquidity, cash reserves and acceptable risk. The investment policy shall be reviewed by the board periodically.
(c) The board shall have the authority to invest and reinvest the assets of the pension fund in the securities, investment vehicles or property, wherever situated and of whatever kinds, as shall be approved by the board and in accordance with the investment policy adopted by the board. The board may engage investment counsel or investment advisors in contract for investment advice when they deem it necessary.
(d) The board may select one or more funding agents or investment counsel for the management of the assets of the fund. The selection and the appointment of the funding agent or investment counsel shall be made by the board, and the board shall have the right to determine the form and substance of each and every agreement under which the funds are to be held and managed by the funding agents or investment counsel, provided that the agreement shall not be inconsistent with the provisions of this subchapter.
(1) The board shall require that any funding agent or investment counsel who has custody or control of any property of the plan to keep accurate and detailed accounts of all investments, receipts, disbursements and other transactions pertaining to trust property, and shall further require that all accounts, books and records pertaining thereto be open for inspection and audit at all reasonable times by the board or its designees and the city finance department or its designees. The board shall also be authorized to have conducted an independent audit at the expense of the fund.
(2) The board may retain the services of a qualified independent investment consultant who shall, at least on a semiannual basis, report on the relative performance of the fund's funding agent or investment counsel and recommend to the board the retention or replacement of the managers. A qualified independent investment consultant shall have the qualifications and experience as determined by the board from time to time.
(e) (1) The board shall, in selecting a funding agent or other investment counsel or advisor, exercise all judgment and care in the circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the management of their own affairs. Any funding agent or other investment counsel or advisor shall have a minimum of five years of experience.
(2) For the purposes of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning:
FUNDING AGENT. A corporate or individual trustee or trustees, insurance company or companies authorized to do business in the state, or combination thereof.
INVESTMENT ADVISOR. A corporation or individual who has registered with the United States Securities and Exchange Commission as an investment advisor and is authorized to do business in the state.
INVESTMENT COUNSEL. A corporation or individual authorized to do business under the Federal Investment Advisors Act of 1940, being 15 U.S.C. §§ 80b1 through 80-b-21, as amended from time to time, and authorized to do business in the state.
(f) The board of trustees may, unless restricted by law, transfer all or any portion of the assets of the pension fund to a collective or common group trust, as permitted under Revenue Ruling 81-100, Revenue Ruling 2011-1, Notice 2012-6, and Revenue Ruling 2014-24 (or subsequent guidance), that is operated or maintained exclusively for the commingling and collective investment of monies, provided that the funds in the group trust consist exclusively of trust assets held under plans qualified under § 401(a) of the Internal Revenue Code, individual retirement accounts that are exempt under § 408(e) of the Internal Revenue Code, eligible governmental plans that meet the requirements of § 457(b) of the Internal Revenue Code, and governmental plans under § 401(a)(24) of the Internal Revenue Code. For this purpose, a trust includes a custodial account or separate tax-favored account maintained by an insurance company that is treated as a trust under § 401(f) or under § 457(g)(3) of the Internal Revenue Code.
(g) Any collective or common group trust to which assets of the pension fund are transferred pursuant to the above shall be adopted by the board of trustees as part of the plan by executing appropriate participation, adoption agreements, and/or trust agreements with the group trust's trustee.
(h) The separate account maintained by the group trust for the plan shall not be used for, or diverted to, any purpose other than for the exclusive benefit of the members and beneficiaries of the plan.
(i) For purposes of valuation, the value of the separate account maintained by the group trust for the plan shall be the fair market value of the portion of the group trust held for the plan, determined in accordance with generally recognized valuation procedures.
(j) All assets of the pension fund shall be held for the sole purpose of meeting disbursements for annuities, pensions and other payments authorized by this subchapter and shall be used for no other purpose.
(1957 Rev. Ords., § 2.1133; 1992 Code, § 35-113) (Ord. 2649, passed 11-17-1969; Ord. 105-09, passed 12-7-2009; Ord. 118-16, passed 12-20-2016)
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