§ 13-13. Finances, fund management, tax provisions.

(a)

Establishment and operation of trust fund.

(1)

As part of the plan there is hereby established a trust fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the plan.

(2)

The supervision of the fund (and assets thereof) and the responsibility for custodianship shall be vested in the board. Payment of benefits and disbursements from the fund shall be made by the disbursing agent on authorization from the board.

(3)

The board may hire and appoint such persons, agents or entities (including corporate fiduciaries) as in its discretion may be required or advisable to the performance of custodial and investment duties hereunder. The board may enter into agency, investment advisory and custodial agreements as it deems appropriate.

(4)

All funds and securities of the plan may be commingled in the fund, provided that accurate records are maintained at all times reflecting the financial composition of the fund, including accurate accounts and entries as regards the following:

a.

Amounts of accumulated contributions of members on both an individual and aggregate account basis; and

b.

Receipts and disbursements; and

c.

Benefit payments; and

d.

All monies, funds and assets whatsoever attributable to contributions and deposits from the city and state; and

e.

All interest, dividends and gains (or losses) whatsoever; and

f.

Such other entries as may be properly required so as to reflect a clear and complete financial report of the fund.

(5)

It shall be impossible, at any time prior to the satisfaction of all liabilities with respect to police officers, and their beneficiaries under the trust, for any part of the principal or income of the trust to be used for, or diverted to, purposes other than for the exclusive benefit of the police officer, or their beneficiaries, except for usual and customary charges and expenses associated with the operation and management of the plan and fund. There will be no reversion of the assets of the fund or city contributions, except as permitted under IRC Section 401(a) and the regulations and rulings issued by the Internal Revenue Service relating to IRC Section 401(a), including Revenue Ruling 91-4.

(b)

Tax provisions.

(1)

Pick up contributions; 26 USC 414(h). The city shall solely for the purpose of compliance with 26 USC 414(h) of the IRC, pick up the members' contributions required to be made by employees on earnings paid. The contributions so picked up shall be treated as employer contributions in determining tax treatment under the IRC, member contributions picked up by the city pursuant to this subsection 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 section.

(2)

Unemployment compensation amendments of 1992. This section applies to distributions made on or after January 1, 1993. Notwithstanding any provisions of the plan to the contrary that would otherwise limit a distributee's election under this section, a distributee may elect, at any time and in the manner prescribed by the board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. For the purposes of this section the following definitions shall apply:

Direct rollover: A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee. Effective as of January 1, 2008, a non-spouse beneficiary may make a direct rollover only to an "inherited" individual retirement account as described in IRC Section 408(b). If a non-spouse beneficiary receives a distribution from the plan, the distribution is not eligible for a 60-day (non-direct) rollover.

Distributee: A distribute includes a police officer or former police officer. In addition, the police officer's or former police officer's surviving spouse are distributees with regard to the interest of the spouse. Effective January 1, 2008, a police officer's or former police officer's non-spouse beneficiary is a distributee with regard to the interest of the police officer or former police officer.

Eligible retirement plan: An eligible retirement plan is an individual retirement account described in IRC Section 408(a), an individual retirement annuity account described in IRC Section 408(b), an annuity plan described in IRC Section 403(a), or a qualified trust described in IRC Section 401(a), that accepts the distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity. Effective for distributions made after December 31, 2001, an eligible retirement plan shall also mean an annuity contract described in IRC Section 403(b) and an eligible plan under IRC Section 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this plan.

Eligible rollover distribution: An eligible rollover distribution is 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 that is one of a series of substantially equal periodic payments (not less frequently than annually) of the distributee or the joint lives (joint life expectancies) of the distributee and the distributee's designated beneficiary, for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under IRC Section 401(a)(9); and the portion of any distribution that is not includable in gross income.

(3)

Omnibus Budget Reconciliation Act of 1993. In addition to other applicable limitations set forth in the plan, and notwithstanding any other provisions of the plan to the contrary, for the plan years beginning on or after October 1, 1996, the annual compensation of each employee (who first became a plan participant in a plan year beginning after September 30, 1996) taken into account under the plan shall not exceed the Omnibus Budget Reconciliation Act of 1993 (OBRA '93) annual compensation limit. The OBRA '93 annual compensation limit is one hundred fifty thousand dollars ($150,000.00), as adjusted by the commissioner for increases in the cost-of-living in accordance with IRC Section 401(a)(17)(B). The cost-of-living adjustment in effect for a calendar year applies for any period, not exceeding twelve (12) months, over which compensation is determined (determination period), beginning in such calendar year. If a determination period consists of fewer than twelve (12) months, the OBRA '93 annual compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period and the denominator of which is twelve (12). For plan years beginning on or after October 1, 1996, any reference in this plan to the limitation under IRC Section 401(A)(17) shall mean OBRA '93 annual compensation limit set forth in this provision. The OBRA `93 annual compensation limit shall not apply to employees who were participants in the plan before the first plan year beginning after September 30, 1996.

(4)

Section 415 limits. Notwithstanding any other provisions of this plan, the retirement benefit of a member shall be reduced to the extent that it exceeds amounts specified in IRC Section 415, and the final regulations under IRC Section 415, as applicable. For purposes of applying the limitations of IRC Section 415, the "limitation year" shall be the plan year.

(c)

Defined contribution component.

Pursuant to the requirements of Section 185.35(6), Florida Statutes, a defined contribution plan component is established in addition to the defined benefit component of this local law plan. This defined contribution component is not currently funded.

(Ord. No. 94-153, § 1, 12-6-94; Ord. No. 94-157, § 2, 12-20-94; Ord. No. 2015-125, § 2, 12-16-15; Ord. No. 2017-104, § 2, 5-17-17)