§ 33.64. CONTRIBUTIONS.

(A)

Member Contributions.

(1)

Members shall make regular contributions to the Trust Fund at a rate equal to nine (9) percent of their respective annual earnings. Eligible employees, as a condition of membership, shall agree in writing upon becoming a member to make the contribution specified herein. These contributions shall be deducted from the earnings before the same are paid, until the member has earned the maximum normal retirement benefit payable under the System.

(2)

The City shall pick up the member contribution required by subsection (A)(1), above. 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 have otherwise been designated as member contributions and paid to the pension fund. Member contributions picked up by the City pursuant to this subdivision shall be treated for purposes of making a refund of member contributions, and for all other purposes of this and other laws, in the same manner and to the same extent as member contributions made prior to the effective date of this subdivision. The intent of this subdivision is to comply with Section 414(h)(2) of the Internal Revenue Code. No employee shall have the option of choosing to receive the contributed amounts directly instead of having them paid by the City to the System.

(B)

State Contributions. Any moneys received or receivable by reason of laws of the State, for the express purpose of funding and paying for retirement benefits for Police Officers of the City shall be deposited in the Trust Fund comprising part of this system. By mutual agreement of the City and police officers' union, all annual premium tax moneys received pursuant to F.S. ch. 185, up to the amount received during the 2013 calendar year six hundred six thousand five hundred ninety-five dollars ($606,595.00) shall be used to offset the cost of current benefits by reducing the City's annual required contribution to the system. The City and police officers' union have further mutually agreed that all accumulated excess premium tax monies held in reserve on September 8, 2016 will be used to pay down the unfunded liability attributable to police officers.

(C)

City Contributions. So long as this system is in effect, the City shall make an annual contribution to the Trust Fund during the first quarter of the plan year or in quarterly installments in an amount equal to the difference in each year as between the total of aggregate member contributions for the year plus State contributions for the year and the total cost for the year as shown by the most recent actuarial valuation and report for the system. The total cost for any year shall be defined as the total of normal cost plus the additional amount sufficient to amortize the unfunded accrued past service liability over a period not greater than thirty (30) years.

(D)

Guaranteed Refund of Member Contributions. All benefits payable under this system are in lieu of a refund of member contributions. Effective September 1, 1999, employees who terminate employment with less than ten (10) years of continuous service, upon the election to receive a refund of member contributions, shall receive a noncompounded simple interest rate of three (3) percent per year applied to the principal balance of the participant's contributions as accrued on December 31 of each year. Effective September 1, 1999, employees who terminate employment with ten (10) years or more of continuous service, upon the election to receive a refund of member contributions, shall receive a noncompounded simple interest rate of five (5) percent per year applied to the principal balance of the participant's contribution as accrued on December 31 of each year. In any event, each member shall be guaranteed the payment of benefits at least equal in total amount to his accumulated contributions plus interest as provided herein.

(E)

Miscellaneous.

(1)

All beneficiaries and retired members presently receiving benefits under F.S. ch. 185 shall continue to receive those benefits under this system.

(F)

Any forfeitures that may arise upon the termination of a member's employment shall be used to offset the subsequent cost of the City. Such forfeitures shall not be used to increase benefits of remaining members.

(Code 1980, § 18-50; Ord. No. 52-89, passed 9/12/89; Am. Ord. No. 53-89, passed 9/12/89; Am. Ord. No. 29-99, passed 8/17/99; Ord. No. 26-00, § 5, passed 9/26/00; Ord. No. 15-11, § 2, passed 5/3/11; Ord. No. 42-11, § 2, passed 11/15/11; Ord. No. 16-12, § 5, passed 6/19/12; Ord. No. 10-13, § 2, 6/4/13; Ord. No. 10-15, § 4, passed 7/7/15 ; Ord. No. 17-16 , § 2, passed 10/4/16)