Chapter 776 - PENSION LIABILITY SURTAX

Sec. 775.106. - Duration of surtax. Chapter 780 - PROPERTY TAX Chapter 776 - PENSION LIABILITY SURTAX

Sec. 776.101. - Pension Liability Surtax.

There is hereby levied and imposed a pension liability surtax created pursuant to and as authorized by F.S. § 212.055(9).

(Ord. 2017-257-E, § 1)

Sec. 776.102. - Definitions.

(a)

"Police and Fire Pension Plan" means that defined benefit retirement plan created by Chapter 121, Ordinance Code, and its predecessor ordinances and State laws.

(b)

"General Employees' Retirement Plan" means that defined benefit retirement plan created by Part II, Chapter 120, Ordinance Code, and its predecessor ordinances and State laws.

(c)

"Correction Officers' Retirement Plan" means that defined benefit retirement plan created by Part III, Chapter 120, Ordinance Code, and its predecessor ordinances and State laws.

(d)

"Eligible defined benefit plans" means and includes the Police and Fire Pension Plan, the General Employees' Retirement Plan, and the Correction Officers' Retirement Plan.

(e)

"City's total unfunded liability" means the sum total of the unfunded actuarial liabilities of the eligible defined benefit plans.

(Ord. 2017-257-E, § 1)

Sec. 776.103. - Pension Liability Surtax Levy.

There is hereby levied and imposed throughout Duval County, with collection commencing as set forth in Section 776.106, a discretionary sales surtax at the rate of 0.5 percent per dollar on all transactions within Duval County subject to the State sales and use tax imposed by Chapter 212, Florida Statutes, subject to the limitations imposed thereon by F.S. § 212.054.

(Ord. 2017-257-E, § 1)

Sec. 776.104. - Statutory Compliance.

The Pension Liability Surtax shall be collected and administered as set forth in F.S. § 212.054.

(Ord. 2017-257-E, § 1)

Sec. 776.105. - Recognition of Net Present Value of Surtax and Actuarial Defined Employer Contribution.

(a)

At the commencement of the fiscal year beginning October 1, 2017, the proceeds of the pension liability surtax imposed by the City pursuant to this Chapter shall be actuarially recognized to impact the Actuarial Determined Employer Contribution ("ADEC") for the fiscal year beginning October 1, 2017 and each fiscal year thereafter.

(b)

In each fiscal year beginning with the 2017-18 fiscal year the ADEC shall be determined using the following approaches:

(1)

The proceeds of the Pension Liability Surtax shall be actuarially recognized, and each fiscal year the City shall apply the present value of the total projected proceeds of the surtax to reduce the unfunded liability of the eligible defined benefit plans. The present value shall be calculated assuming 4.25 percent growth per annum in the proceeds of the surtax, unless the Council modifies such percentage by October 31 of each fiscal year, which percentage will be utilized for the actuarial study prepared by the actuaries of each pension plan to determine the funding requirements of the City for the following fiscal year. By October 31 annually, the City Council through legislation, shall approve the assumed growth rate of the sales tax; provided, however, that the adoption of a rate in excess of 4.25 percent shall require a vote of at least 13 council members for approval.

(2)

The unfunded liability amortization schedule of all unfunded liabilities existing as of October 1, 2016, must be adjusted beginning with the 2017-18 fiscal year and amortized over a period of 30 years.

(3)

The payroll of all employees in classifications covered by a closed retirement plan or system that receives funds from the pension liability surtax must be included in determining the unfunded liability amortization schedule for the closed plan, regardless of the plan in which the employees currently participate, and the payroll growth assumption must be adjusted to reflect the payroll of those employees when calculating.

(4)

The eligible defined benefit plans shall apply the present value of the total projected proceeds of the surtax, as determined by the City, in accordance with the pro rata share of each plans respective proportion of the City's total unfunded liability as determined by the October 1, 2015 actuarial valuation and each subsequent year's actuarial valuation.

(Ord. 2017-257-E, § 1)

Sec. 776.106. - Manner of Collection and Administration.

(a)

Collection of the Pension Liability Sales Tax shall begin on January 1 immediately following expiration of The Better Jacksonville 1/2-Cent Sales Surtax (implemented pursuant to Chapter 775, Ordinance Code), but in no event shall collection begin later than January 1, 2031.

(b)

From and after the first fiscal year in which collection of the Pension Liability Surtax begins, the proceeds shall be remitted to the City, in its capacity as a County, as provided by law, and shall be distributed annually, pursuant to F.S. § 212.055(9), this Chapter, and other applicable provisions of law. All of the Pension Liability Surtax revenues and any interest accrued thereon received shall be appropriated annually, by separate legislative action by the City Council, only for distribution of the proceeds to each of the eligible defined benefit plans as a pro rata share of each plans respective proportion of the City's total unfunded liability as determined by each previous year's actuarial valuation.

(c)

Payments to an eligible defined benefit plan shall terminate prior to the end of the 30 years if the actuarial funding level for such eligible defined benefit retirement plan levied is expected to reach or exceed 100 percent. The most recent actuarial report submitted to the Department of Management Services pursuant to F.S. § 112.63, must be used to establish the level of actuarial funding for the determination of the date that the actuarial funding level for each of the eligible defined benefit plans is expected to reach or exceed 100 percent.

(d)

In the event that one or more of the eligible defined benefit plans becomes ineligible for future funding pursuant to subsection(c), the formula in subsection (b) shall be modified, and each remaining plan shall receive a percentage of the annual collection of the pension liability surtax equivalent to the percentage of the total of the unfunded actuarial liability of the remaining eligible defined benefit plans.

(Ord. 2017-257-E, § 1)

Sec. 776.107. - Termination of the Pension Liability Surtax.

(a)

The Pension Liability Surtax shall remain in effect no longer than 30 years. The Pension Liability Surtax shall terminate prior to the end of the 30 years if the actuarial funding level for each of the eligible defined benefit plans is expected to reach or exceed 100 percent. The early termination date shall be on December 31 of the year in which the actuarial funding level for all of the eligible defined benefit plans is expected to reach or exceed 100 percent.

(b)

In no event shall collection of the Pension Liability Surtax continue past December 31, 2060.

(c)

The most recent actuarial report submitted to the Department of Management Services pursuant to F.S. § 112.63, must be used to establish the level of actuarial funding for the determination of the date that the actuarial funding level for each of the eligible defined benefit plans is expected to reach or exceed 100 percent.

(Ord. 2017-257-E, § 1)

Sec. 775.106. - Duration of surtax. Chapter 780 - PROPERTY TAX