§ 13-16. Repeal or termination of system.

This chapter establishing the plan and fund, and subsequent ordinances pertaining to said plan and fund, may be modified, terminated, or amended, in whole or in part solely by the city commission. If the city, by ordinance of the city commission, terminates the plan or provides written notice to the board that contributions to the plan are being permanently discontinued, the rights of all members to benefits accrued to the date of such termination and the amounts credited to the members' accounts are deemed to be non-forfeitable. Thereafter, the fund shall be distributed in accordance with the following procedures:

(a)

The board shall determine the date of the distribution and the asset value required to fund all non-forfeitable benefits, after taking into account the expenses of the distribution. The board shall inform the city if additional assets are required, in which event the city shall continue to financially support the plan until all non-forfeitable benefits have been funded.

(b)

The board shall determine the method of distribution of the asset value, whether distribution shall be by payment in cash, by the maintenance of another or substituted trust fund, by the purchase of insured annuities, or otherwise, for each member entitled to benefits under the plan, as specified in subsection (c) below.

(c)

The board shall distribute the asset value as of the date of termination in the manner set forth in this subsection, on the basis that the amount required to provide any given retirement income is the actuarially computed single-sum value of such retirement income, except that if the method of distribution determined under subsection (b) involves the purchase of an insured annuity, the amount required to provide the given retirement income is the single premium payable for such annuity. The actuarial single-sum value may not be less than the member's accumulated contributions to the plan, with interest if provided by the plan, less the value of any plan benefits previously paid to the member.

(d)

If there is asset value remaining after the full distribution specified in subsection (c), and after payment of any expenses incurred with such distribution, such excess shall be returned to the city, less return to the state of the state's contributions, provided that, if the excess is less than the total contributions made by the city and the state to date of termination of the plan, such excess shall be divided proportionately to the total contributions made by the city and the state.

(e)

The board shall distribute, in accordance with the manner of distribution determined under subsection (b), the amounts determined under subsection (c).

(f)

If, after twenty-four (24) months after the date on which the plan terminated, or the date the board received written notice that the contributions thereunder were being permanently discontinued, the city or the board has not complied with all the provisions in this section, the Florida Department of Management Services shall effect the termination of the plan in accordance with this section.

(Ord. No. 94-153, § 1, 12-6-94; Ord. No. 2010-104, § 5 4-20-10)