§ 2-68. Contributions; restoration of prior service credit; purchase of permissive service credit.

(a)

Member contributions.

(1)

Amount. Regular contributions of tier one, tier two and tier three members shall be at the rate of ten (10.0) percent of earnings. The city shall pick up, rather than deduct, all regular contributions of members. The city shall derive pick-up amounts from the same source of funds which is used in compensating members of the retirement system and shall do so by reducing the earnable compensation of each member. All pick-up amounts shall be treated as employer contributions for purposes of determining tax treatment under the Internal Revenue Code of 1954, as amended.

(2)

Interest. Interest shall be credited and compounded annually to member contributions and contributions picked up on behalf of members at not less than a three (3) percent rate of interest.

(3)

Guaranteed refund. All benefits payable under this system are in lieu of a refund of accumulated contributions. In any event, however, each member shall be guaranteed the payment of benefits on his behalf at least equal in the total amount to his accumulated contributions plus interest credited.

(b)

State contributions. Any monies received or receivable by reason of Laws of the State of Florida, for the express purpose of funding and paying for retirement benefits for firefighters of the city, shall be deposited in the trust fund comprising part of this system.

(c)

City contributions. So long as this system is in effect, the city shall make an annual contribution to the trust fund in an amount at least 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 forty-year period commencing with the fiscal year in which the effective date of this system occurs. Forfeited amounts arising by reason of nonvested termination shall be applied to reduce future contributions to the system.

(d)

Other. Private donations, gifts and contributions may be deposited to the fund, but such deposits must be accounted for separately and kept on a segregated bookkeeping basis. Funds arising from these sources may be used only for additional benefits for members, as determined by the board, and may not be used to reduce what would have otherwise been required city contributions.

(e)

Restoration of prior service. Members shall be permitted to restore any prior service through the member's date of hire, provided that the member pays the total actuarial cost of the prior service. Member contributions of the actuarially determined cost of the restored service may be made in one lump sum, by rollover, or may be made by payroll deductions in installments for a period of time which shall not exceed the number of years being purchased. A member electing to make installment payments shall be charged interest based on the actuarially assumed rate of return for the plan. A member making installment payments shall complete all required payments prior to payment of any benefit under this section.

(f)

Purchase of permissive service credit. Members shall be permitted to purchase up to five years of service credit, provided that the member pays the total actuarial cost of the additional service. Permissive service will be treated as service credit for purposes of retirement eligibility, but not for vesting. Member contributions of the actuarially determined cost of the permissive service credit may be made in one lump sum or may be made by payroll deductions in installments for a period of time which shall not exceed the number of years being purchased. A member electing to make installment payments shall be charged interest based on the actuarially assumed rate of return for the plan. A member making installment payments shall complete all required payments prior to payment of any benefit under this section.

(g)

[Purchase of retirement benefit multiplier.] Members who have transferred to the Confidential and Managerial Retirement Plan subsequent to October 1, 2002, but prior to October 1, 2006, shall receive an increase in their retirement benefit multiplier so that they receive a three (3) percent retirement benefit multiplier for all credited service in the General Employees' Pension Fund.

(Ord. No. 77-121, § 8, 6-2-77; Ord. No. 79-150, § 2, 10-16-79; Ord. No. 83-112, § 1(8), 3-14-83; Ord. No. 87-131, § 1, 6-8-87; Ord. No. 88-100, § 6, 2-8-88; Ord. No. 91-107, § 3, 2-25-91; Ord. No. 91-144, § 3, 7-8-91; Ord. No. 91-208, § 5, 1-13-92; Ord. No. 94-193, § 1, 12-12-94; Ord. No. 96O-124, § 4, 6-10-96; Ord. No. 98O-6-129, § 2, 6-29-98; Ord. No. 03O-08-178, § 4, 9-8-03; Ord. No. 06O-05-134, § 3, 6-12-06; Ord. No. 06O-10-180, §1, 11-13-06; Ord. No. 08O-02-106, § 1, 3-31-08; Ord. No. 15O-03-107, § 5, 4-13-15)