AGENDA MEMORANDUM

 

 

Meeting Date:           November 24, 2008

 

From:                          Edward F. Smyth, Jr., Deputy City Manager

 

Subject:                      Ordinance amending the City of Leesburg Municipal Firemen's Retirement plan by adding section 2.6, “Leesburg Firefighters' Supplemental Share Program " to place additional premium tax revenues and earnings in a separate supplemental share account within the plan to pay extra benefits to city firefighters

 

 

Staff Recommendation:

Staff recommends adopting amendment four to the Municipal Firemen’s Retirement plan as presented.

Analysis:

Over the past few years, the Municipal Firemen’s Retirement plan has received premium tax funds under §175.101 Florida Statutes, in excess of the base amount $110,449.00 the plan is eligible to receive.  The City is required to either provide additional pension benefit under the existing plan, or return the excess funds to the State.  Until recently, the Pension Board had not provided an additional benefit that was actuarially neutral.

At the Board’s September 17, 2008 meeting, the board proposed placing this excess income into a separate plan fund to pay extra benefits to those participating firefighters.  Foster & Foster, the plan’s actuary, reports that this proposal is actuarially neutral.

Options:

1.  Adopt the Amendment as presented; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact

The cumulative amount of excess state premium tax moneys as of September 30, 2007 is $273,727.49.  There is no actuarial liability now or in the future for this additional benefit.

 

Submission Date and Time:    11/20/2008 11:12 AM____


 

Department: Administration

Prepared by:  EF Smyth, DCM                     

Attachments:         Yes  X    No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

 

Attorney Review :       Yes X   No ____

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. ___________JB_____                                     

                              

Deputy C.M. ________EFS________                                                                         

 

Submitted by:

City Manager ___________________

 

Account No. _________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________

 


ORDINANCE NO 08-______

 

AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, ADOPTING AMENDMENT FOUR TO  THE CITY OF LEESBURG MUNICIPAL FIREMEN'S RETIREMENT PLAN BY CREATING SECTION 2.6 CREATING THE LEESBURG FIREFIGHTERS' SUPPLEMENTAL SHARE PROGRAM;  PROVIDING THAT INVALIDITY OF ANY PORTION HEREOF SHALL NOT AFFECT THE REMAINING PORTIONS OF THIS ORDINANCE; PROVIDING FOR SEVERABILITY;AND PROVIDING FOR AN EFFECTIVE DATE.

 

WHEREAS, Section 175.351(1), Florida Statutes, provides that if a municipality has a pension plan for firefighters which meets the minimum benefits and minimum standards set forth in Chapter 175, Florida Statutes, the board of trustees of the pension plan may (a) place the income from the premium tax in Section 175.101, Florida Statutes, in such pension plan where it shall be used to pay extra benefits, or (b) place the income from the premium tax in Section 175.101, Florida Statutes, in a separate supplemental plan to pay extra benefits to firefighters participating in such supplemental plan; and

WHEREAS, Section 175.351, Florida Statutes, provides that when a plan is in compliance with such minimum benefit provisions, as subsequent additional premium tax revenues become available they shall be used to provide extra benefits; and

WHEREAS, Section 175.351, Florida Statutes, provides that extra benefits means benefits in addition to or greater than those provided to general employees of the municipality and in addition to those in existence for firefighters on March 12, 1999; and

WHEREAS, according to Foster & Foster, Inc., Actuarial Consultants for Public Pension Plans, the current frozen state contributions that can be used for current benefits is $110,449.18; and

WHEREAS, currently any state premium tax moneys in excess of $110,449.00 per calendar year must be used for extra benefits in addition to those in existence for firefighters on March 12, 1999; and

WHEREAS, for calendar year 2005, the City of Leesburg Municipal Firemen's Retirement Plan received $138,695.36 in state premium tax moneys; and

WHEREAS, for calendar year 2006, the City of Leesburg Municipal Firemen's Retirement Plan received $179,780.63 in state premium tax moneys; and

WHEREAS, according to Foster & Foster, Inc., Actuarial Consultants for Public Pension Plans, as of September 30, 2007, the cumulative amount of excess state premium tax moneys that must be used for extra benefits, in addition to those benefits in existence for firefighters on March 12, 1999, is $208,819.95; and

WHEREAS, for calendar year 2007, the City of Leesburg Municipal Firemen's Retirement Plan, prior to September 30, 2008, received $177,356.72 in state premium tax moneys; and         

WHEREAS, as of September 30, 2008, there is $273,727.49 in state premium tax moneys that must be used for extra benefits; and

WHEREAS, according to a state report of "Brief Summary of Plan Benefits" with date of 1/22/2007, twenty-five (25) retirement plans have SHARE programs; and

WHEREAS, there is no actuarial cost to the City of Leesburg, now or in the future, to establish a SHARE Program as such program is solely funded by the excess state premium tax moneys and the earnings thereon; and

WHEREAS, pursuant to the terms of the SHARE Program, there is no administrative cost to the City of Leesburg; and

WHEREAS, the City Commission of the City of Leesburg has the power by virtue of Section 3.5 of said amended and restated Retirement Plan to amend the City of Leesburg Municipal Firemen's Retirement Plan; and

WHEREAS, the Retirement Committee of the City of Leesburg Municipal Firemen's Retirement Plan, in consultation with the Retirement Committee's attorney has recommended the amendment of the Plan as set forth in attached Amendment Four; and

WHEREAS, the Leesburg City Commission has considered the changes set forth in the attached Amendment Four, and desires to hereby adopt and establish same in force and effect in the City of Leesburg, Florida;

NOW, THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA:

SECTION I

The City of The City of Leesburg Municipal Firemen's Retirement Plan as amended and restated, effective April 1, 2000, as further amended effective October 1, 2003, as further amended effective January 28, 2008, is hereby amended as set forth in the attached Amendment Four which is attached to this Ordinance and by reference incorporated herein and made a part hereof, and said Amendment Four is hereby approved and adopted.

SECTION II

The provisions of said Amendment Four to the City of Leesburg Municipal Firemen's Retirement Plan shall be effective October 1, 2008.

SECTION III

The Mayor and City Clerk of the City of Leesburg are hereby authorized and directed to execute said Amendment Four attached to this Ordinance for and on behalf of the City of Leesburg.

SECTION IV

The provisions of this Ordinance are severable and if any section, sentence, clause, or phrase hereof is for any reason held to be unconstitutional, invalid or ineffective, such holding shall not affect the validity of the remaining portions of this Ordinance, it being expressly declared to be the City Commission's intent that it would have passed the valid portions of this Ordinance without the inclusion therein of any invalid portion or portions.

SECTION V

All ordinances or parts of ordinances which are in conflict with this Ordinance are hereby repealed.

SECTION VI

This Ordinance shall become effective upon its passage and adoption according to law.

PASSED ON THE SECOND READING AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida held on this ____ day of _________________, 2008.

THE CITY OF LEESBURG, FLORIDA

 

 

BY:                                                                 

Mayor

 

 

Attest:                                                            

                        City Clerk


AMENDMENT FOUR

CITY OF LEESBURG MUNICIPAL FIREMEN'S RETIREMENT PLAN

            The City of Leesburg Municipal Firemen's Retirement Plan as amended and restated, effective April 1, 2000, as further amended effective October 1, 2003, as further amended effective January 28, 2008, is hereby amended by creating the following, effective October 1,

2008:

 

2.6 - LEESBURG FIREFIGHTERS' SUPPLEMENTAL SHARE PROGRAM


            (A)  Creation and Purpose.

 

(1)          Pursuant to Florida Statute § 175.351(1)(a), the City Commission of the City of Leesburg hereby creates a supplemental share program within the City of Leesburg Municipal Firemen's Retirement Plan to be entitled "The Leesburg Firefighters' Supplemental Share Program." The purpose of this supplemental share program is to place additional premium tax revenues in Florida Statute §§ 175.101 and 175.351, and earnings generated therefrom, in a separate supplemental share account within the plan to pay extra benefits to city firefighters participating in such separate supplemental share program. This supplemental share program has been approved by the Board of Trustees / Retirement Committee. The separate supplemental share program hereby created shall be in addition to any other benefits under the City of Leesburg Municipal Firemen's Retirement Plan, and nothing herein shall in any way affect any other benefits that now or hereafter exist.

 

(2)       The city shall not be required to levy any additional taxes on its residents or to make any contributions to the supplemental share program.


            (B)  Definitions.

 

            The following words and phrases shall, unless otherwise defined or required by the context, for the purpose of the supplemental share program, have the meanings indicated below.

 

(1)     Account means the participant's supplement share program account credited with (i)    allocations of initial allocation of additional premium tax revenues under paragraph (C)                      hereof, (ii) subsequent annual allocation of additional premium tax revenues under paragraph (D) hereof, (iii) allocations of forfeitures under paragraph (D) (4) hereof, and (iv) allocation of the net investment return of the share program under paragraph (D) (5) hereof. 

(2)     Additional premium tax revenues means revenues received by the city pursuant to Florida Statute § 175.121, that exceed the amount received for calendar year 1997, as adjusted because of benefit improvements.

(3)     Beneficiary means any person, persons or entity designated by a participant to receive any benefits payable in the event of the participant's death. If no beneficiary designation is in effect at the participant's death, or if no person, persons or entity so designated survives the participant, the participant's beneficiary shall be the participant's estate.

(4)     Board or board of trustees means the Retirement Committee of the City of Leesburg Municipal Firemen's Retirement Plan, who shall likewise serve as the Retirement Committee for this supplemental share program. The board shall be the administrative board, which shall hold title to, supervise, administer and manage the assets of this supplemental share program.

(5)     Effective date means October 1, 2008, the date on which this supplemental share program shall take effect.

(6)     Extra benefits  means benefits in addition to or greater than those provided to the general employees of the city and in addition to those in existence for the city's firefighters on March 12, 1999.

(7)     Forfeiture means the termination of a participant's account under paragraph (G) (4)                                "forfeiture for cause" and, "nonvesting forfeiture" of this share program.

(8)     Net investment return for the retirement system  means the retirement system's rate of investment return on the retirement system's assets as a whole as reported by the retirement system's investment consultant, net of investment expenses and any administrative expense incurred by the retirement system.

(9)     Net investment return for the share program means the net investment return for the retirement system, net of any investment expenses and any administrative expenses incurred by the share program.

(10)  Share Participant means (i) any retired firefighter who separated on or after October 1, 1984, or beneficiary thereof receiving monthly benefits from this Plan; (ii) any terminated, vested firefighter or beneficiary thereof, upon commencement of payment of monthly benefits from this plan; (iii) any firefighter employed as of October 1, 2008, or beneficiary thereof; and (iv) any one who became a firefighter after October 1, 2008 or beneficiary thereof.

(11)  Supplemental share program or share program means the Leesburg Firefighters' Supplemental Share Program as provided herein.

(12)  Supplemental share program year or share program year means January 1 through December 31. 

(13)  Valuation date, annual means the last business day of on or before September 30. The annual valuation date shall be the date upon which the fair market value of the assets of the supplemental share program shall be determined. 

 

            (C)   Allocation of Cumulative Balance of Additional State Premium Tax Moneys as                                  of 10/01/2008.

 

            The cumulative balance of additional state premium tax moneys as of October 1, 2008 shall be allocated by the board as follows:

 

(1)          Each firefighter who retired before October 1, 2008, or their beneficiary, who on October 1, 2008 are receiving monthly benefits from the City of Leesburg Municipal Firemen's Retirement Plan shall be allocated two thousand dollars ($2,000.00), unless he/she is eligible for an allocation pursuant to paragraph (C) (2) which is more than two thousand dollars ($2,000.00).  If a deceased firefighter has more than one beneficiary, said two thousand dollars ($2,000.00) shall be paid in the same percentages as they are receiving monthly benefits.  Such allocation shall be distributed on or before December 31, 2008.

 

            (2)       The balance shall be allocated as follows:

 

(a)          Each firefighter, regardless of whether or not the firefighter was employed            on October 1, 2008, but excluding any firefighter or beneficiary who received two thousand dollars ($2,000.00) pursuant to paragraph (C)(1), who had twelve (12) completed months of credited service during the following calendar years shall receive one (1) share for each of the following years:

 

1.                  January 1, 1998 – December 31, 1998.

2.                  January 1, 1999 – December 31, 1999.

3.                  January 1, 2000 – December 31, 2000.

4.                  January 1, 2001 – December 31, 2001.

5.                  January 1, 2002 – December 31, 2002.

6.                  January 1, 2003 – December 31, 2003.

7.                  January 1, 2004 – December 31, 2004.

8.                  January 1, 2005 – December 31, 2005.

9.                  January 1, 2006 – December 31, 2006.

10.              January 1, 2007 – December 31, 2007.

 

(b)          Provided, however, any firefighter who separated from service as a firefighter prior to October 1, 2008, who had less than ten (10) years of credited service at time of separation and who has received a refund of contributions, or who died without being eligible for benefits, shall not be entitled to any shares.  Any firefighter, or beneficiary or estate thereof, who has received a lump sum distribution, shall not be entitled to any shares.

 

(c)          If a firefighter who is entitled to a share during any of the aforesaid ten       (10) calendar years has died and is eligible for benefits, the firefighter's beneficiary, or if none, the firefighter's estate, shall receive the firefighter's share.  If a firefighter has more than one (1) beneficiary, the beneficiaries shall receive the deceased firefighter's share in the same percentages as they are receiving monthly benefits.

 

(d)          If a firefighter who is entitled to a share for any of the aforesaid ten (10) calendar years separates from service as a firefighter on or after October 1, 2008, with less than ten (10) years of credited service at the time of separation who receives a refund of contributions and without qualifying for disability benefits or death benefits from the City of Leesburg  Municipal Firemen's Retirement Plan, said firefighter's share plus an yearnings thereon shall be equally allocated among the remaining active firefighters who are employed on October 1st immediately following the forfeiture who had twelve (12) completed months of credited service during the previous calendar year.

 

(3)       Each eligible retired firefighter, or firefighter's beneficiary or estate, who is receiving monthly benefits on October 1, 2008, shall receive his or her initial distribution on or before December 31, 2008, either in a lump sum distribution paid directly or a direct rollover.  Any subsequent distributions shall be made on or before December 31st following the plan year in which a firefighter, who previously had been allocated shares of the cumulative balance as of October 1, 2008, separated and had commenced payment of monthly benefits.

 

            (D)  Allocation of Additional Excess Premium Tax Moneys Received After                   10/01/2008.

 

For any state premium tax moneys collected for calendar year 2008 and received thereafter, and for each calendar year collections thereafter, under the provisions of Florida Statutes § 175.121, in excess of the then current frozen state contributions amount as determined by the Plan's actuary, the board shall allocate to each participant's account each year as follows:

 

                        (1)       Ten percent (10%) shall be allocated equally among all firefighters who retired on or after January 1, 1978, who on October 1, 2009 and each October 1st thereafter, or their beneficiary, are receiving monthly benefits from the City of Leesburg Municipal Firemen's Retirement Plan.  Such yearly allocation shall be distributed on or before December 31st of each year.  If a deceased firefighter has more than one beneficiary who is receiving monthly benefits, the amount otherwise allocated to the deceased firefighter shall be allocated in the same percentages as they are receiving monthly benefits.

 

            (2)       Ninety percent (90%) shall be allocated equally among all firefighters employed on October 1, 2009 and each October 1st thereafter who had twelve (12) completed months of credited service during the previous January 1st – December 31st.

 

(a)          If a firefighter separates from service as a firefighter after October 1, 2008, with less than ten (10) years of credited service at the time of separation and who has received a refund of contributions and without qualifying for disability benefits or death benefits from the City of Leesburg Municipal Firemen's Retirement Plan, said firefighter's share plus any earnings thereon shall be equally allocated among the remaining active firefighters who are employed on October 1st immediately following the calendar year in which the firefighter separated and who had twelve (12) completed months of credited service during the previous calendar year.

 

(3)       Provided however, a firefighter who retires on December 31st with twelve (12)     completed months of credited service for that calendar year shall receive for the          following distribution the greater of his/her share of the 10% annual distribution as a retired member or his/her share of the 90% distribution as a member who had twelve (12) completed months of credited service for the calendar year in question.

 

(4)       The board shall make the allocation of the additional premium tax revenues it receives to the share program as soon as possible after its receipt of such additional premium tax revenues. Thereafter, the board shall forthwith allocate to each share participant's account the participant's allocable share thereof based on the participant's credited service during the corresponding calendar year in which the additional premium tax revenues were paid to and collected by the state.

 

(5)       Allocations of forfeitures.  As of each October 1st, all amounts forfeited since the preceding October 1st shall be prorated and credited to the accounts of the eligible individual share participants who are employed on October 1st and who had twelve (12) completed months of credited service during the previous calendar year. 

 

(6)       Allocation of net investment return.  The board shall invest the supplemental share program assets together with the assets of the retirement system. The board shall value the share program's assets as of each September 30th valuation date and shall allocate to the share participant's account his or her allocable share of the change in the fair market value of the share program's assets. For the purpose of allocation of net investment return, the net investment return for the retirement system shall be the retirement system's rate of investment return of the retirement system's assets as a whole as reported by the retirement system's investment consultant, net of investment expenses. The share program's net investment return shall be the same as the retirement system's net investment return, net of investment expenses and any administrative expenses incurred by the share program. 

 

            (E)       Maximum allocation limitation. 

 

Notwithstanding any provision of this supplemental share program to the contrary, the maximum amount allocated to the share participant's account for any calendar year shall not exceed the limitations set forth in I.R.C. Section 415 and any regulations issued thereunder. 

 

(F)          Allocation of costs and expenses. 

 

Any allocation to a share participant's account shall be net of the participant's allocable portion of the share program's costs, expenses and fees of administering the share program based on the participant's accrued credited service during the relevant period. 

 

            (G)  Benefits, Forfeitures and Distributions.

 

            (1)       A share participant shall receive a distribution of benefits from this supplemental share program on or before December 31st after the September 30th immediately following the share participant's termination of employment, award of disability retirement benefits, or death of the participant who qualifies for death benefits from the retirement system.  However, no participant shall receive a benefit from the share program in excess of the amount allocated to the share participant's account.

 

            (2)   Termination of employment or disability retirement.   

 

                  (a)      If a share participant (i) terminates employment as a firefighter for any reason whatsoever or (ii) is awarded a disability retirement benefit from the retirement system, having accrued at least ten (10) years of credited service under the retirement system, then the participant shall receive a benefit equal to entire amount of the participant's account.

 

                          (b)      In the event a share participant, having accrued less than ten (10) years of credited service under the retirement system, is awarded a service incurred disability benefit from the retirement system, then the participant           shall receive a benefit equal to the entire accrued amount of the participant's account as of the date of the award of the service incurred disability retirement.

 

            (3)   Death.   

 

(a)          If a share participant dies, having accrued at least ten (10) years of             credited service under the retirement system, before complete       distribution of the entire amount of the share participant's account,   then such undistributed portion(s) of the share participant's account        shall be paid to the participant's beneficiary.

 

(b)        In the event a share participant suffers a service incurred death       having accrued less than ten (10) years of credited service under   the retirement system, then the entire accrued amount of the             share participant's account, as of the date of death, shall be paid to             the participant's beneficiary.

 

(c)        The board may require and rely upon such proof of death and such           evidence of the right of any beneficiary to receive the value of the account of a deceased participant as the board may deem proper    and its determination of the right of that beneficiary to receive    payment shall be conclusive.

 

            (4)   Forfeitures.   

 

(a)       Forfeiture for cause.  Notwithstanding anything in the plan to the contrary, if a share participant is convicted of a specified offense as set forth in Florida Statute § 112.3173, as same may be amended from time to time, the provisions of Florida Statute § 112.3173, as same may be amended from time to time shall apply and the participant shall forfeit all rights to receive a benefit from the supplemental share program in accordance with the provisions of such Florida Statute § 112.3173. For purposes of this paragraph, "convicted" and "specified offense" shall have the meanings given to them in Florida Statute § 112.3173. 

 

                       

 

                        (b)   Non vesting forfeiture. 

 

                                    (i)         If a share participant terminates employment and receives a             refund of contributions, then the share participant's account                              shall be forfeited and allocated as set forth herein and not paid to           the participant.

 

 (ii)       Notwithstanding subparagraph (i) above, if a share participant, having accrued less than ten (10) years credited service under the retirement system, is (a) awarded a service incurred disability retirement benefit in accordance with the retirement system, or (b) suffers a service incurred death, then the participant's account shall not be forfeited and allocated as set forth herein, but shall be distributed and paid to the participant or his or her beneficiary as set forth herein.

 

            (5)   Payment of benefits. 

 

Benefits shall be payable as soon as possible following the yearly valuation date coincident with or next following (a) the participant's termination of employment       as a firefighter or (b) award of disability retirement benefits under the retirement system. Acceptance of any partial or full payment of a participant's account shall be in full settlement of all claims of a participant against the supplemental share program as to the partial or full payment received. 

 

(a)            Provided a participant has ten (10) years or more credited service under the retirement system, then on or before December 31st  after the yearly valuation date next succeeding (i) the participant's termination of employment as a firefighter or (ii) award of disability retirement benefits under the retirement system, the then existing balance of the participant's account shall be distributed to the participant, including allocation of forfeitures and allocations of share program net investment returns accruing through the date of termination or award of disability benefits.

(b)            On or before December 31st  after the next succeeding subsequent annual allocation of additional premium tax revenues, the          allocable portion of the participant's allocation of subsequent additional premium tax revenues, both excess and supplemental under Florida Statute § 175.121, and the allocable portion of the participant's allocation of forfeitures shall be distributed to the participant.

 

            (6)   Required distributions. 

In no event shall the provisions of this supplemental share program operate so as          to allow the distribution of a participant's account to begin after the later of April 1st following (i) the calendar year in which the participant attains age seventy and one-half (70 1/2) or (ii) the calendar year in which the participant terminates employment (the "required beginning date"). In the event a participant is required to begin receiving payments while in service, the participant may elect to receive payments while in service in accordance as follows: 

 

(a)  A participant may receive one (1) lump sum payment on or before the participant's required beginning date equal to the entire account balance and annual lump sum payments thereafter of amounts accrued during each calendar year; or

(b)  A participant may receive annual payments of the minimum amount necessary to satisfy the minimum distribution requirements of I.R.C. Section 401 (a) (9). Such minimum amount will be determined on the basis of the joint life expectancy of the participant and the designated beneficiary. Such life expectancy will not be recalculated.  An election under this subparagraph shall be made by a participant by giving written notice to the board within the ninety-day period prior to the participant's required beginning date. Upon the participant's subsequent termination of employment or award of disability benefits under the retirement system, payment of the participant's account shall be made in accordance with the provisions of this paragraph. In the event a participant fails to make an election under this subparagraph, payment shall be made in accordance with subparagraph (a) above.

 

            (7)   Distribution limitation. 

 

Notwithstanding any other provision of this supplemental share program, all distributions from this share program shall conform to the regulations issued under I.R.C. Section 401(a)(9), including the incidental death benefit provisions          of I.R.C. Section 401(a)(9)(G). Further, such regulations shall override any provision of this supplemental share program that is inconsistent with I.R.C.        Section 401(a) (9). 

 

            (8)   Direct rollover of certain distributions. 

 

Notwithstanding any provision of this supplemental share program to the             contrary that would otherwise limit a distributee's election under this paragraph (8), a distributee may elect, at the time and in the manner prescribed by the board, to have any portion of an eligible rollover distribution paid directly by the supplemental share program to an eligible retirement plan specified by the distributee in a direct rollover. The following definitions apply to the terms used in this paragraph (8): 

 

(a)          Eligible rollover distribution means any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include any distribution to the extent such distribution is required under Section 401(a)(9) of the Code, and the portion of any distribution that is not includible in gross income;

 

(b)          Eligible retirement plan means an individual retirement account described in Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the Code, an annuity plan described in Section 403(a) of the Code, a deferred compensation plan described in Section 457 of the Code, or a qualified trust described in Section 401(a) of the Code, that accepts the distributee's eligible rollover distribution.

 

(c)          Distributee means an employee or former employee. In addition, the employee's surviving spouse is a distributee with regard to the interest of the spouse; and

 

(d)          Direct rollover means a payment by the fund to the eligible retirement plan specified by the distributee.

 

            (H)   Participation.

Establishment of share program account.  An account shall be established for each share participant, including firefighters and beneficiaries entitled to receive monthly benefits.  Provided however, a terminated firefighter who is vested but not yet receiving monthly benefits shall not have any additional allocations to his account, except for net investment returns, until such time as the retired firefighter or beneficiary starts receipt of monthly benefits. 

 

            (I)         Conflict of Laws.

To the extent that any provision of this Supplemental Share Program is in conflict with Florida Statutes §§ 112.60-112.67, or those provisions of Florida Statutes, Chapter 175, that apply to local law plans established by municipal ordinance, or to the extent that any provision of this section would result in the loss of tax exempt status of the retirement system, the Board of Trustees is hereby delegated the authority to adopt by rule changes to this program in order to comply with said laws, which shall have the force of law.

 

          (J)         Administration of Program.

(1)          Rules.  The Board of Trustees shall make such rules as are necessary for the effective and efficient administration of this Supplemental Share Program, provided that such rules are not inconsistent with the terms of any collective bargaining agreement entered into by the City and the certified bargaining agents for firefighters concerning Supplemental Share Program. Notwithstanding any other provision of this program to the contrary, any provision of this program shall be construed and         administered in such manner that such program will qualify as a qualified governmental pension plan under existing or hereafter enacted provisions of the Internal Revenue Code of the United States, and the Board of Trustees may adopt any rule necessary to accomplish the purpose of this Share Program as is necessary to retain tax qualification, which rule shall have the force of law.

 

(2)          Payment of costs, expenses and fees.   All costs, expenses and fees of administering the supplemental share program shall be paid from the assets of the supplemental share program in such fashion as the board shall determine.  Any allocation to a participant's account shall be net of the participant's allocable portion of the share program's costs, expenses and fees of administering the share program based on the participant's accrued credited service during the relevant period.

 

(3)          Exclusive benefit rule.  No part of the assets of the supplemental share program shall be used for, or diverted to any purpose whatsoever other than for the exclusive benefit of share participants and beneficiaries thereof.  No person shall have any interest in, or right to, any part of the assets of the supplemental share program, except as and to the extent expressly provided in the supplemental share program.

 

(4)          Custody of fund assets.  The board shall hold all assets of the supplemental share program in trust solely for use in paying the benefits provided by the supplemental share program in accordance with the terms hereof and paying expenses of the supplemental share program.

 

            (K)  Miscellaneous provisions.

 

(1)   Non-alienation of benefits.  The benefits provided by this supplemental share program shall not be subject to garnishment, attachment, execution or any other legal process, except the board may authorize the deductions in accordance with Florida Statutes § 175.061(7). 

 

 (2) City's responsibilities.  The city shall have no responsibility for the operation of this supplemental share program except those specified herein. 

 

 (3)  Facility of payment.  If the board shall find that a share participant or other person entitled to a benefit is unable to care for the participant's affairs or             is a minor, or is legally incapacitated, the board may direct that any benefit due the share participant shall be paid to the share participant's duly appointed legal representative. Any payment so made shall be a complete discharge of the liabilities of this supplemental share program for that benefit. 

 

(4)    Information.  Each share participant, beneficiary or other person entitled to a benefit, before any benefit shall be payable to the share participant or on the participant's account under the fund, shall file with the board the information that it shall require to establish the share participant's rights and benefits under the plan. 

 

(5)  Amendment.  The provisions of the plan are intended to meet the requirements of a qualified profit sharing plan under I.R.C. Section 401(a) and to be tax-exempt under I.R.C. Section 501(a). Should any changes be required to this Supplemental Share Program for it to comply or to continue to comply with the provisions of I.R.C. Sections 401(a) and 501(a), the board shall recommend to the city commission any such required changes to the supplemental share program. 

 

            (6)   Severability of provisions.  If any provision of this supplemental share program is for any reason held unconstitutional, inoperative or void, such holding shall not affect the remaining provisions of this supplemental share program. It is the intent of the city commission to create this supplemental share program without such unconstitutional, inoperative or void provision and the remainder of the supplemental share program, after          the exclusion of such provision, shall be deemed and held to be valid as if such provision had not been included herein. 

 

            (7)       Gender.  Whenever used in this supplemental share program, the masculine shall include the feminine and the singular shall include the plural, unless the context indicates otherwise. 

 

            (8)   Captions.  The caption preceding the paragraphs and subparagraphs of this supplemental share program are for convenience only. In the case of ambiguity or inconsistency, the text rather than the caption shall control. 

 

            (9)       Reports.  The board shall issue a report of this supplemental share                                                 program's operations at least annually. 

 

            (10)     Reservation of right to amend supplemental share program.  Subject to the provisions of Florida Statutes, Chapter 447, Part II, the city reserves the right at any time to amend or modify this supplemental share program, provided that no amendment shall cause any part of the supplemental share program assets to be used or diverted to purposes other than the exclusive benefit of the share participants and their beneficiaries. 

 

            (11)     Termination and discontinuance.   

 

(a)   Notwithstanding any other provision of this supplemental share program to the contrary, upon the date of either full or partial termination of this share program, upon complete discontinuance of contributions of additional premium tax revenues to this supplemental share program, an affected participant's right to their accrued benefit under the terms and conditions of this supplemental share program shall be one hundred percent (100%) non-forfeitable.

 

 (b)   Subject to the provisions of Florida Statutes, Chapter 447, Part II, this supplemental share program may be terminated by the city. Upon termination of this share program, the share program assets shall be apportioned and distributed in accordance with the accrual formulas set forth herein.

 

Except as herein amended, the Plan shall remain in full force and effect.

 

            IN WITNESS WHEREOF, the CITY OF LEESBURG, as Employer, has caused these   presents to be executed by its duly authorized officers on this        day of                        , 2008, effective October 1, 2008.

 

CITY OF LEESBURG,

as Employer

 

 

 

BY: ______________________________

                              Mayor

 

ATTEST:

 

 

 

 

_________________________________

              City Clerk