Sec. 121.201. - Retirement benefits.

Notwithstanding any provisions to the contrary in Chapter 18615, Laws of Fla. Ch. 18615 (1937), retirement benefits shall be : (a) Time service retirement. Members shall be entitled to a time service retirement benefit equal to a maximum of 80 percent of the average salary (as defined in Section 121.113 (a)) received by the Member for the 52 pay periods immediately preceding the time of retirement, upon the completion of 30 years of credited service. For each year prior to the thirtieth year of service that a Member retires, the 80 percent retirement benefit shall be reduced by two percent, of the average salary (as defined in Section 121.113 (a)) received by the Member for the 52 pay periods immediately preceding the time of retirement, with the minimum normal retirement benefit being 60 percent after completion of 20 years of credited service. For Members on "military leave of absence" as defined in the Jacksonville Heroes' Act, Section 116.501 , "salary", as used in this subsection (a), shall be the salary, as defined above, paid by the City while such Members remain on the City's active payroll during the first 90 days of their military leave of absence, pursuant to Section 116.501 (b), and, thereafter, "salary" shall be the total of their military pay plus the supplemental payments paid by the City pursuant to Section 116.501 (c), not to exceed the salary that the Member would otherwise have received if not on military leave of absence. (b) Disability retirement. (1) Any Member, who prior to reaching the minimum normal retirement becomes permanently and totally disabled from useful and efficient service as a police officer or firefighter, as established by competent medical evidence, shall be entitled to a disability retirement. The disability retirement benefit shall be equal to 60 percent of the average salary received by the Member for the 52 pay periods immediately preceding the time of disability retirement. The Board shall establish the effective date on which the disability benefit shall commence. The Board shall, by rule, establish procedures for the examination of applicants for disability retirement, for the conduct of disability retirement hearings, for review of said hearings by a court of competent jurisdiction, and reexamination of retirees on disability pension. In the event the application for a disability pension is denied by the Board, then a new application for the same disability cannot be filed by the Member within six months of the denial. (2) Any Member, who has been in the service of the City for a period of time equal to the minimum time necessary for time service retirement or more and become permanently and totally disabled from useful and efficient service shall be entitled to the same rate of pension benefit calculation of the average salary (as defined in Section 121.113 (a)) received by the Member for the 52 pay periods immediately preceding the time of disability retirement as those Members of his pension plan who retire on time service retirement. Any Member who elects to retire under a disability pension as provided in this Section shall be required to meet the same requirements for a disability pension as are required for any other Member of the respective fund requesting a disability retirement. The Board shall establish the effective date on which the disability benefit shall commence. (3) In applying the provisions of this Section, the adjustment supplement described in 121.201 (d)(2) that is calculated for the benefit of a Member and a surviving spouse shall be based upon the actual years of credited service, subject to the minimum and maximum provisions, rendered by the Member. (c) Vested retirement benefits. (1) Members, who terminate employment with five or more years of credited service and are not otherwise eligible to retire, are eligible to receive either a deferred retirement benefit of three percent of the average salary received by the Member for the 52 pay periods immediately preceding the date of vesting, for each year of credited service prior to the date of vesting, to commence on the date the Member would have been eligible to receive minimum time service benefits or be paid a refund of 100 percent of Member contributions to the Plan without interest. Within 30 days of a Member leaving the payroll prior to normal service retirement, the Member must make the election in writing to either vest or the refund will be issued automatically. Acceptance of the refund of employee contributions constitutes an irrevocable waiver of all rights to benefits from the Plan. (2) In the event that the Member who is entitled to vested retirement benefits becomes deceased prior to the scheduled date for the commencement of the payment of retirement benefits, the surviving spouse and/or children of such Member shall not be entitled to a refund of contributions nor shall they be entitled to the payment of survivors benefits otherwise extended to Members who completed the required number of years of service to become eligible for minimum time service benefits. (3) Members who are entitled to receive vested retirement benefits are not eligible to qualify for potential enhancements pursuant to the minimum monthly pension provisions of Section 121.301 . (d) Cost of Living Adjustments. (1) A Cost of Living Adjustment (COLA) based on each prior annual benefit amount actually received (exclusive of onetime bonuses or adjustments) shall be provided for retirees and survivors. Beginning with the first bi-weekly pay period in the first January after commencement of benefit and in each subsequent first bi-weekly pay period in January, the recipient shall be granted a COLA in the amount of three percent. (2) In addition to the COLA, a minimum adjustment supplement of $5 per month for each year of actual credited service of the Participant used to compute the pension benefit shall be provided for current and future retirees and their survivors, and it shall be paid beginning with the first full biweekly pay period after October 1, 2003, and continuously thereafter; provided however, that such supplement shall be no less than $25 nor more than $150 per month. The adjustment supplement described herein shall be based upon the Member's actual years of service rather than imputed years of service, which is used for purposes of calculating pension benefits under the disability retirement provisions of Section 121.201 (b) and the surviving spouse provision of Section 121.204 (a)(1), and becomes operative in the event of the disability or death of a Member, respectively. The Mayor shall annually, each January, evaluate the annual cost of the foregoing adjustment supplement by comparing it to the City's annual cost to provide single employee group health insurance. In the event that the City's cost to provide such health insurance per employee is less than the amount of such supplement per retiree, then the supplement shall be reduced to the amount of the insurance cost. (e) Deferred Retirement Option Program (DROP). A Member eligible to receive normal retirement benefits as provided in Section 121.201 (a), may remain in the employment of the City until the elected termination date by electing to participate in the DROP, as provided in Section 121.209 , deferring the receipt of such retirement benefits for a maximum of 130 full bi-weekly pay periods (60 months) from the date of participation in the Deferred Retirement Option Program. (f) Limitations on benefits. Notwithstanding any benefit granted hereunder or under any other provision relating to benefits under the Police and Fire Pension Plan, benefit payments for any Member shall not exceed the maximum amount permitted under Section 415 of the Internal Revenue Code of 1986, as amended. (g) Annual Compensation Limit. Section 401(a)(17) of the Internal Revenue Code establishes an annual compensation limit for each employee under a qualified plan. The provisions of Code Section 401(a)(17) are further described pursuant to Treasury Regulations Section 1.401(a)(17)-1. The Police and Fire Pension Plan incorporates by reference the annual compensation limit described under Section 401(a)(17) and Treasury Regulations Section 1.401(a)(17)-1. Accordingly, the Plan acknowledges that the compensation taken into account for any Member of the Plan in determining plan allocations or benefit accruals for the plan is limited to the annual compensation limit as described in Internal Revenue Code Section 401(a)(17) and the Treasury Regulations related thereto. The Plan additionally elects to avail itself of the transition rule for governmental plans as described in Treasury Regulation Section 1.401(a)(17)-1(d)(4)(ii) which provides that "eligible participants," as such term is used in the regulations, will not be affected by the revised limit per the 1993 OBRA and accordingly such "eligible participants" may have their contributions and benefits computed by using compensation of more than $150,000 (as adjusted), so long as it does not exceed the limit in effect on July 1, 1993. All other plan Participants ("non-eligible participants") shall be subject to the revised limits for plan years beginning after December 31, 1995. (h) Requirements that Actuarial Assumptions be specified. Section 401(a)(25) of the Internal Revenue Code provides that whenever the amount of any benefit is to be determined on the basis of actuarial assumptions, such assumptions are specified in the plan in a way which precludes employer discretion. The provisions of Code Section 401(a)(25) and the linkage between the proper use of actuarial assumptions and the conclusion that the plan is established and maintained primarily to provide systematically for the payment of "definitely determinable benefits" to employees, is further described pursuant to Treasury Regulations Section 1.401-1(b)(1)(i). The Police and Fire Pension Plan incorporates by reference the requirements that actuarial assumptions be specified as described under Code Section 401(a)(25) and Treasury Regulations Section 1.401-1(b)(1)(i). (i) Required distributions. Distributions from the Plan will be made in accordance with the requirements of the regulations under Internal Revenue Code Section 401(a)(9) and that any provisions in the Plan that are contradictory to the distribution requirements shall be overridden. In accordance therewith, distributions to Participants must commence by the later of April 1 of the calendar year following the calendar year in which the employee attains the age of 70 ½, or April 1 of the calendar year following the calendar year in which the employee retires. In addition to meeting the minimum distribution amount, the distribution must also meet the incidental benefit requirements of Internal Revenue Code Section 401(a)(9)(g) and Proposed Regulations Sections 1.401(a)(9)-1 and 1.401(a)(9)-2 if applicable. (Ord. 2017-259-E , § 1; Ord. 2024-874-E , § 2) Editor's note— Ord. 2017-259-E , § 1, amended the Code by, in effect, repealing former §§ 121.201—121.201B, and adding a new § 121.201. Former §§ 121.201—121.201B pertained to retirement benefits, retirement benefits for group I members, and retirement benefits for group II members, respectively; and derived from Ord. 88-1255-786; Ord. 91-1017-605; Ord. 93-1983-1407; Ord. 97-340-E; Ord. 97-1103-E; Ord. 1999-44-E; Ord. 1999-472-E; Ord. 1999-1019-E; Ord. 2000-1164-E; Ord. 2002-445-E; Ord. 2002-445-E; Ord. 2003-303-E; Ord. 2003-1338-E; Ord. 2006-1109-E; and Ord. 2015-304-E .