§ 34.60. Repeal or termination of system.

(A)

The ordinance codified in sections 34.43 through 34.67, establishing the system and fund, and subsequent ordinances pertaining to said system and fund, may be modified, terminated or amended, in whole or in part; provided that if this or any subsequent ordinance shall be amended or repealed in its application to any person benefiting hereunder, the amount of benefits which at the time of any such alteration, amendment, or repeal shall have accrued to the member or beneficiary shall not be affected thereby.

(B)

If sections 34.43 through 34.67 shall be repealed, or if contributions to the system are discontinued or if there is a transfer, merger or consolidation of government units, services or functions as provided in F.S. ch. 121, the board shall continue to administer the system in accordance with the provisions of sections 34.43 through 34.67, for the sole benefit of the then members, any beneficiaries then receiving retirement allowances, and any future persons entitled to receive benefits under one of the options provided for in sections 34.43 through 34.67, who are designated by any of said members. In the event of repeal, discontinuance of contributions, or transfer merger or consolidation of government units, services or functions, there shall be full vesting (100 percent) of benefits accrued to date of repeal. The board shall determine the date of distribution and the asset value required to fund all non-forfeitable benefits after taking into account the expenses of such distribution. The board shall inform the town, or then current plan sponsor, if additional assets are required in which event the town, or then current plan sponsor, shall continue to financially support the pension plan until all non-forfeitable benefits have been funded. At such time, the funds shall be appropriated and distributed in accordance with F.S. § 175.361.

The allocation of the fund provided for in this subsection may, as decided by the board, be carried out through the purchase of insurance company contracts to provide the benefits determined in accordance with this subsection. The fund may be distributed in one sum to the persons entitled to said benefits or the distribution may be carried out in such other equitable manner as the board may direct. The fund may be continued in existence for purposes of subsequent distributions.

If, at any time during the first ten years after the effective date of the ordinance codified in this chapter originally establishing this system, the system shall be terminated or the full current costs of the system shall not have been met, anything in the system to the contrary notwithstanding, town contributions which may be used for the benefit of any one of the 25 highest paid members on the effective date, whose anticipated annual retirement allowance provided by the town's contributions at member's normal retirement date would exceed $1,500.00, shall not exceed the greater of either: a) $20,000.00; or b), an amount computed by multiplying the smaller of $10,000.00 or 20 percent of such member's average annual earnings during his last five years of service by the number of years of service since the effective date. In the event that it shall hereafter be determined by statute, court decision, ruling by the commissioner of Internal Revenue, or otherwise, that the provisions of this paragraph are not then necessary to qualify the system under the Code, this paragraph shall be ineffective without the necessity of further amendment of sections 39.43 through 34.67.

(C)

After all the vested and accrued benefits provided hereunder have been paid and after all other liabilities have been satisfied, then and only then shall any remaining funds revert to the general fund of the town.

(Ord. 99-25, passed 7-6-99; Ord. 2010-03, passed 3-1-10; Ord. 2015-04, passed 2-2-15)