Sec. 121.113. - Calculation of pension contributions for Police and Fire Pension Fund.

The Pension Fund created by Laws of Fla. Ch. 18615(1937), as amended, shall consist of moneys derived as follows: (a) Salary Deductions. A deduction of ten percent per annum from all salaries (base salary, longevity, City college incentive, enhanced certification pay, emergency operation and hazardous duty pay; shift differential, and "upgrade" pay; and excluding all overtime, State incentive pay, reimbursed expenses and allowances such as cleaning/clothes allowances, and payments for unused accrued time), of all Members, to be deducted in installments from each periodical paycheck of each Member. While on military leave of absence pursuant to the Jacksonville Heroes' Act, Section 116.501 , Members shall not be required to make contributions to this Pension Plan, except for those contributions that originate from the Members' use of annual leave balances during such military leave of absence and from compensation paid by the City while remaining on the active payroll for up to 90 days following the departure for active duty, as provided in Section 116.501 (g). No Member contributions are payable and shall not be deducted from the supplemental payments paid by the City pursuant to Section 116.501 (c). (b) (1) Except as otherwise provided herein, the City shall contribute a sum equal to an amount not less than the Actuarially Determined Employer Contribution, as provided for in relevant statutes and ordinances, including Chapter 776 . (2) The City shall also contribute such additional sums as may be necessary to administer this fund, which amount shall be designated by the Board and certified to the Council for each fiscal year. (3) The City may in good faith challenge the City contribution designated by the Board. In the event of such a challenge, the Board's actuary and City's actuary shall agree on an impartial third actuary who shall resolve all disputes between the actuaries and whose decision shall be binding and final as between the Board and the City. (4) In any year, beginning with Fiscal Year 2017-18, that the Plan's liquidity ratio, meaning the market value of assets divided by the annual benefit payments, falls below five, the City shall, subject to annual appropriation, make a contribution or payment in an amount sufficient to restore the Plan's liquidity ratio to at least five, as determined by the plan actuary. (5) Beginning with Fiscal Year 2017-18, regardless of the amount of revenue received from the Pension Liability Surtax and the applicable Actuarially Determined Employer Contribution, the City shall hereinafter, subject to annual appropriation, make an annual contribution from a source other than the Pension Liability Surtax proceeds (provided for in Chapter 776 ) in a minimum amount of 110 million dollars, less any amount paid under subsection (4) above. (6) The provisions of subsections (4) and (5) shall remain in effect until the Plan is 100 percent funded. (c) Notwithstanding the deduction provided in subsection (a) of this Section, a deduction of two percent per annum shall be made from all salaries (as defined in Section 121.113 (a)) of Qualified Members who elect to participate in the deferred retirement option program, with such amount being credited to the Pension Fund's Ordinance 91-1017-605, Base Benefit Fund. (d) In addition to the above described pension contributions, the fund shall receive all proceeds from the sale of surplus, lost, abandoned and unclaimed property held by the Office of the Sheriff, 30 percent of fines and court costs from charges of violations heard in County Court and 30 percent of all parking fines. (e) The contributions made by each employee hereunder, effective January 1, 1988, shall be designated as City contributions pursuant to Section 414(h)(2) of the Internal Revenue Code of 1986, as amended. Such designation is contingent upon the contributions being excluded from the employee's gross income for federal income tax purposes. The City's Section 414(h)(2) contributions for each employee, effective January 1, 1988, shall be considered as the employee's accumulated contributions subject to refund under this subsection and to be taxable on return to the employee either in a retirement allowance or upon refund at termination pursuant to Section 72 or 402, IRC, as amended. (f) The application of the employer pick up provisions of Section 414(h)(2) of the Internal Revenue Code, as described above in 121.113 (e) shall also extend to elective contributions made by payroll deduction installment payments for the purpose of securing service credit for prior service or additional service. As used herein, "elective contributions" shall include contributions initiated under conditions wherein, (i) a Member is eligible to purchase credit for prior service under 121.107 , or (ii) a former Member who received a refund of contributions previously made to the fund who was subsequently rehired and again becomes a Member and elects to repurchase such prior broken service under 121.107 , or (iii) a Member who is eligible to purchase service as a police officer or firefighter within the State of Florida under 121.107 (d), or (iv) a Member who is eligible to purchase additional permissive service credit for wartime military service under 121.208 . However, direct payments made by the Member for elective contributions shall not qualify under the pick-up provisions. In order to qualify for pre-tax treatment under Section 414(h)(2), elective contributions paid via payroll deduction installment payments must be made pursuant to the completion of a binding irrevocable payroll authorization executed by the Member. Such employee contributions made through payroll deduction will be picked up and paid by the City with the Member having no option of receiving such picked up amounts directly instead of having such amounts contributed to the fund. The payroll deduction authorization will state the number of pay periods during which the deduction(s) will be made, the dollar amount of the deduction(s), and that the plan will not accept direct payments from the Member while the payroll deduction is in effect. (g) For purposes of purchasing time service credits (or "elective contributions" as defined in 121.113 (f)), the fund will additionally allow the lump sum amount of such purchases or "elective contributions" to be alternatively made in the form of the acceptance of a direct rollover of an eligible rollover distribution from one or more of the providers of the Deferred Compensation Plan administered by the City under Section 457 of the I.R.C. effective January 1, 2002. (Ord. 87-927-611, § 7; Ord. 87-1327-647, § 1; Ord. 88-509-221, § 3; Ord. 91-1017-605, § 2; Ord. 93-1983-1407, § 2; Ord. 97-340-E, § 4; Ord. 97-1103-E, § 2; Ord. 1999-44-E, § 1; Ord. 1999-472-E, § 3; Ord. 2000-1164-E, § 2; Ord. 2002-445-E, § 3; Ord. 2006-947-E, § 4; Ord. 2015-304-E , § 1; Ord. 2017-259-E , § 1; Ord. 2024-874-E , § 2)