§ 78-210. Share accounts.

(a)

The purpose of this section is to implement the provisions of F.S. ch. 175, and to provide a mechanism to pay required "Chapter 175 monies" to firefighters and current and future retirees based on the growth of premium tax revenue pursuant to F.S. ch. 175. The fund created by this section, hereinafter the Starke Firefighters' Trust Share Plan, shall be derived exclusively from monies received from the state and not from any additional taxes levied by the city and shall be in addition to and a complement of the firefighter defined benefit pension paid by the City of Starke Firefighters Retirement System. The share plan shall be administered by the Board of Trustees of the Starke Municipal Firefighters Retirement System (hereinafter the "retirement system").

(b)

In each year, after receipt of the annual distribution of chapter money from the state, the board of trustees shall determine the amount of premium tax revenues accrued by the city during the current fiscal year pursuant to F.S. 175.131, above the adjusted base amount of $30,248.00. The sum of these amounts shall be known as the "funds in excess of the base amount." All funds in excess of the base amount, which have not been specifically allocated to a different benefit enacted hereinafter, will be known as "available funds." Allocation of shares shall be made within 30 days after approval by the board, or as soon as is practicable thereafter.

(c)

The initial allocation of excess premium tax monies being held in reserve as of September 30, 2007, will be allocated to those active members eligible at the time the monies were earned, on a pro rata basis, determined by the amount of time the eligible member was employed as a full time firefighter with the City of Starke. In the initial allocation, each retiree will receive a full share.

(d)

An individual share account shall be established for each qualified participant. A qualified participant for purposes of the share plan will include active members, current retirees (including those in the DROP), beneficiaries of those members who are active on the effective date of this article and who receive a pre-retirement death benefit, and beneficiaries of deceased retirees on the effective date of this article, and every person who becomes an active member or retiree or beneficiary of deceased retirees, thereafter. Available funds shall be allocated to each qualified participant in equal shares (provided, however, that the beneficiary of a deceased retiree will receive a share in the same ratio as the survivorship benefit is to the normal form of benefit). Available funds shall be allocated to each qualified participant by credit to the member's individual account. In order to be a qualified participant as an active member for purposes of this section, a person must be employed by the City of Starke as a firefighter on October 1 of the year for which the insurance premium rebate dollars are received. Available funds shall be allocated and paid directly to each retiree.

(e)

All persons will vest in the share account after ten years. If a person terminates employment or is terminated for any reason without vesting, the balance credited to that person's share account will be redistributed to other qualified participants of the fund, in equal amounts, as of the next allocation.

(f)

Available funds shall be invested by the board of trustees and may be commingled for investment purposes with the other assets of the retirement system. The individual balances and earnings or losses and expense charges for each participant in the share plan shall be clearly identified on the statements prepared by the plan administrator. Each participant member will recognize investment earnings or losses at the same rate as the rest of the plan's assets as invested by the plan investment managers. Provided however, the first allocation will recognize earnings or losses beginning on the day of the allocation. Interest will be credited to the account as soon as administratively practicable at the end of each fiscal year. The City of Starke shall not incur any financial obligation in any manner relative to the share plan. The board of trustees may charge an administrative fee for the cost of administering the share accounts.

(g)

Distributions from the share plan shall in no instance be made prior to separation from service with the city. Vested terminated members who leave their employee contributions in the fund will not be eligible for additional shares until they begin receiving their monthly pension benefit. Vested terminated members who leave their employee contributions in the fund are eligible to receive the balance in their share account when they start receiving their monthly pension benefit. Any member who withdraws his or her employee contributions shall forfeit all rights to their share account and all rights to receive a monthly pension benefit. The amount that had been credited to their share account will be redistributed to qualified participants in equal amounts. All distributions shall be made in accordance with the Internal Revenue Code and rules and regulations promulgated thereunder.

(h)

The board of trustees shall be authorized to adopt any rules necessary for the efficient administration of the share accounts. The board of trustees shall adopt rules for the distribution of amounts credited to the share accounts when a person seeks a distribution and the balance of the share account for the previous quarter has not yet been determined. These rules may allow the board of trustees to retain a portion of the share account until the balance of the share account is determined. The rules may also allow the board of trustees to charge a fee for administration of the share accounts.

(Ord. No. 2009-0613, § 1(Sec. 39), 6-2-2009; Ord. No. 2011-0667, § 1, 8-16-2011)