§ 2-608. Supplemental retirement program for police officers.

(a)

Definitions. The following words and phrases used in this section shall have the meanings set forth below, unless a different meaning is plainly required by the context:

(1)

Additional premium tax revenues means the premium tax revenues received from the state pursuant to F.S. § 185.10, in plan years 2001 through and including 2006 that exceeded $485,156.16 annually; and premium tax revenues received from the state pursuant to F.S. § 185.10, in plan years 2007 and thereafter that exceed $558,361.13 annually.

(2)

Annual allocation means the pro rata amount for each share eligible member, calculated on an annual basis, of premium tax revenues received from the state in plan years 2013 and thereafter pursuant to F.S. § 185.10, that exceed $558.361.13, plus prior plan year forfeited balances.

(3)

Effective date means July 1, 2013, the date on which this supplemental share program shall take effect.

(4)

Forfeiture means the termination of a member's account, or eligibility for annual or initial allocations, pursuant to F.S. § 112.3173, section 2-604, section 2-608(d)(3), or other forfeiture required by law, and reversion of such funds to the plan.

(5)

Initial allocation means the pro rata amount for each share eligible member, calculated on an annual basis, of premium tax revenues received from the state in each plan year 2001 through and including 2006 that exceeded $485,156.16, premium tax revenues received from the state in each plan year 2007 through and including 2012 that exceeded $558,361.13. Based on the foregoing, the premium tax revenues available for pro rata distribution for plan years 2001 through and including 2012 shall be as follows:

2001: $47,489.07

2002: $92,473.27

2003: $128,534.50

2004: $113,964.78

2005: $122,126.39

2006: $147,619.49

2007: $55,989.29

2008: $83,458.87

2009: $109,443.49

2010: $55,897.01

2011: $51,242.95

2012: $41,547.90

Sum total: $1,049,787.01

(6)

Member means any police officer who was or is in the regular, full-time employ of the city on or after October 1, 2000.

(7)

Premium tax revenue means the revenues received by the city from the tax assessed on premiums collected on casualty insurance policies pursuant to section 2-599(b)(2). Said tax is collected on policies issued in a calendar year within the city and remitted to the state. Following an annual review and approval of the consolidated plan by the state, said tax, less state fees, is provided to the board, in approximately August or September of the following calendar year.

(8)

Retired means any member who is receiving a retirement benefit under sections 2-600(a), (b), or (c), a member who met the conditions set forth in section 2-601(b)(4) regardless of the form of benefit, or a member who died in the line of duty, as defined and determined by the board, consistent with F.S. § 185.34, regardless of years of credited service, or months of credited service in the plan year prior to death. A member eligible for re-employment under USERRA who died while performing qualified military services as defined in USERRA shall be deemed to have retired on the day before he died regardless of years of credited service at time of death. Members who are employed by the city and participants in the deferred retirement option program (DROP) under the consolidated plan are not considered retired for purposes of this section.

(9)

Service credit rules shall mean the following:

a.

Day of service shall mean each day for which a member is:

i.

Paid, or entitled to payment, by the city for performance of duties as a police officer;

ii.

Paid, or entitled to payment, by the city on account of a period of time during which no duties are performed as a police officer (e.g., vacation, holiday, illness, incapacity, layoff, jury duty, military duty or approved leave of absence);

iii.

Each day for which back pay as a police officer, irrespective of mitigation or damages, has been either awarded to or agreed to by the city; provided, however, that the same day shall not be credited as a day of service more than once.

b.

Month of service shall mean a one-month period beginning on the day of the month corresponding to a member's most recent date of employment with the city as a police officer, during which the member has earned at least ten days of service; provided however, that ten days of service will be deemed to have been earned in each month of service in which occurs:

i.

An approved leave of absence, not to exceed 90 days, authorized by the city, in accordance with a uniform policy applied on a nondiscriminatory basis to all members similarly situated; or

ii.

Voluntary or involuntary service in the Armed Forces of the United States for a period not greater than five years of the time spent in the military service of the Armed Forces of the United States shall be added to the years of actual service, if: the member is in the city's active employ as an eligible employee prior to such service and leaves such position for the purpose of voluntary or involuntary service in the Armed Forces of the United States; such member is entitled to re-employment under the provisions of the USERRA; and the member returns to his or her employment as a police officer as an eligible employee within one year from the date of his or her release from such active service.

c.

A member shall earn days or months of service for purposes of calculating benefits due under the share program after entering in a DROP.

d.

If the employment of a member as a police officer with the city is terminated, and such former member is subsequently re-employed by the city as a police officer, the member's date of employment, for purposes of determining credited service, shall be based on the member's subsequent re-employment date as a police officer.

e.

Credited service shall mean the aggregate number of months of service with the city as a police officer, expressed in terms of full and fractional year, subject to the following:

i.

No additional months of service shall be credited for unused sick leave.

ii.

No member shall receive credit for years or fractional parts of years of service if he or she has withdrawn his or her contributions to the consolidated plan for those years or fractional parts of years of service, even if the member repays into the consolidated plan the amount he or she has withdrawn, plus interest as determined by the board.

(10)

Share eligible member means a member of the program who meets the eligibility criteria set forth in section 2-608(c).

(11)

Supplemental share program, share program, or program means the Supplemental Retirement Program for Police Officers, as set forth in this section, and as it may be amended from time to time in the future.

(b)

Establishment. There is hereby created for the police officers of the city a program to be known as the "Supplemental Retirement Program for Police Officers," also referred to in this section as the "program," "supplemental share program," or "share program." The creation and maintenance of the assets of the program, the benefits provided for and the administration of the program shall be in accordance with the provisions of this section.

(c)

Eligibility.

(1)

Eligibility to receive the initial allocation.

a.

For members retired on or before the effective date to be eligible to receive the initial allocation for each plan year from 2001 to 2012, an individual must be a member of the program and must have:

i.

Retired and terminated employment in connection therewith;

ii.

Been employed by the city as a police officer for the entire plan year.

b.

For members employed by the city after the effective date to be eligible to receive the initial allocation for each plan year from 2001 to 2012, an individual must be a member of the program and must have been employed by the city as a police officer for the entire plan year.

(2)

Eligibility to receive the annual allocation.

a.

For retired members to be eligible to receive the annual allocation, an individual must be a member of the program and must have:

i.

Retired and terminated employment in connection therewith prior to the actual receipt of premium tax revenues by the board for the plan year; and

ii.

Been employed by the city as a police officer for the entire plan year.

b.

For members employed by the city to be eligible to receive the annual allocation, an individual must be a member of the program and must have:

i.

Been employed on the date the premium tax revenues are received by the board for the plan year; and

ii.

Been employed by the city as a police officer for the entire plan year.

(3)

Forfeiture. Members whose retirement benefits have been forfeited pursuant to F.S. § 112.3173, section 2-604, or any other law, and members who terminate their employment with the city as a police officer prior to the completion of at least ten years of credited service are not eligible for any distributions or allocations under the share program.

(4)

Re-employed retirees and recipients of termination benefits. A former employee of the city receiving retirement or termination benefits from the City of Gainesville Employees Disability Plan, the City of Gainesville Employees Pension Plan, or retirement benefits or monthly termination benefits under the consolidated plan may, upon becoming re-employed by the city become a member of the share program, earn credited service, and become entitled to receive a supplemental retirement benefit subject to the following conditions:

a.

Such member shall re-satisfy the eligibility requirements for participation in this program.

b.

No service for which credit was received, or which remained unclaimed, at retirement or termination may be claimed or applied toward service credit earned following renewed membership.

c.

Such re-employed member shall not be entitled to purchase additional credit for service performed prior to re-employment for which retirement or termination benefits are being received.

(d)

Funding and benefits.

(1)

Allocation of additional premium tax revenues.

a.

Initial allocation.

i.

The board shall distribute the initial allocation to each share program eligible member as described in section 2-608(e) based upon his or her status as a share eligible member for each plan year additional premium tax revenues were received by the board from plan years 2001 to 2012.

ii.

The board shall make the initial allocation within 90 days of the effective date.

b.

Annual allocation.

i.

The board shall distribute the annual allocation to each share program eligible member as described in section 2-608(e) based upon his or her status as a share eligible member for each plan year additional premium tax revenues are received by the board in plan years 2013 and thereafter. If the board receives no additional premium tax revenues or the administrative fees and expenses exceed the additional premium tax revenues received, there shall be no annual allocation to share eligible members.

ii.

The board shall make the annual allocation no later than 90 days after its receipt of such additional premium tax revenues.

(2)

City's contributions to the program. The city shall not be required to levy any additional taxes on its residents or make any contributions to the supplemental share program.

(3)

Forfeiture. Members whose retirement benefits have been forfeited pursuant to F.S. § 112.3173, section 2-604, or any other law, and members who terminate employment with the city as a police officer prior to the completion of at least ten years of credited service shall not be deemed a share eligible member for the purposes of any allocation or distribution under this section and any amounts of additional premium tax revenues which otherwise would be allocated shall revert to the plan and, after final resolution of all claims, be included in the next annual allocation.

(4)

Payment of costs, expenses and fees. All costs, expenses and fees of developing and administering the supplemental share program shall be paid from the assets of the share program in such fashion as the board shall reasonably determine. Any direct distribution and any allocation to a share eligible member's account shall be net of such member's pro rata portion of the share program's costs, expenses and fees of administering the share program.

(e)

Accounts; distributions.

(1)

Distributions to employee members.

a.

For share eligible members who are employed by the city on or after the effective date, initial and annual allocations shall be transferred to individual accounts on behalf of the member in accordance with this section. Members' share accounts shall annually be credited or debited with gains or losses equal to the overall market rate of return on investments of the consolidated plan, less any fees or expenses related to administration of the share program, on or before December 31. Upon termination of a member's employment with the city as a police officer and becoming retired under the consolidated plan in connection therewith, the balance of the member's account shall be paid to the member or member's beneficiaries in a single lump sum or a member may elect a direct rollover as allowed in section 2-600(j). Failure to make an election will result in the payment being made in a lump sum.

b.

After the completion of at least ten years of credited service, share eligible members who are employed by the city may make a one-time, irrevocable election, at the time and in the manner prescribed by the board, to transfer the balance of their account to another account within the plan designated by the member for investment. Such members may direct their share money to any of the investment options offered by the third party administrator approved by the board. There shall be no guaranteed rate of investment return on these accounts. Upon transfer of the share money to the account designated by the member, neither the city nor the board shall have any obligation to the member concerning investment gains or losses. Transfers between accounts shall be in accordance with the rules of the third party administrator.

c.

Members who terminate their employment with the city as a police officer prior to the completion of at least ten years of credited service shall forfeit their share of any annual or initial allocation, shall not be eligible for any distribution under this section, and their share shall revert to the plan for pro rata allocation to eligible members during the following plan year.

(2)

Distributions to retired members. For share eligible members who are no longer employed by the city at the time the board makes allocations, such members or members' beneficiaries shall be paid in a single lump sum or a member may elect a direct rollover as allowed in section 2-600(j). Failure to make an election will result in the payment being made in a lump sum.

(f)

Miscellaneous.

(1)

City's responsibilities. The city shall have no responsibility for the operation of the share program except those specified herein and shall bear no expense in connection therewith.

(2)

USERRA. Notwithstanding any provision of the program to the contrary, contributions, benefits and service credit with respect to qualified military service shall be provided in accordance with Section 414(u) of the Internal Revenue Code.

(Ord. No. 120680, § 4, 6-20-13)