§ 54-202. Miscellaneous provisions.

(a)

Interest of members in system. All assets of the fund are held in trust, and at no time prior to the satisfaction of all liabilities under the system with respect to retirees and members and their spouses or beneficiaries, shall any part of the corpus or income of the fund be used for or diverted to any purpose other than for their exclusive benefit.

(b)

No reduction of accrued benefits. No amendment or ordinance shall be adopted by the city commission which shall have the effect of reducing the then vested accrued benefits of members or a member's beneficiaries.

(c)

Qualification of system. It is intended that the system will constitute a qualified public pension plan under the applicable provisions of the Code for a qualified plan under Code Section 401(a) and a governmental plan under Code Section 414(d), as now in effect or hereafter amended. Any modification or amendment of the system may be made retroactively, if necessary or appropriate, to qualify or maintain the system as a plan meeting the requirements of the applicable provisions of the Code as now in effect or hereafter amended, or any other applicable provisions of the U.S. Federal Tax Laws, as now in effect or hereafter amended or adopted, and the regulations issued thereunder.

(d)

Use of forfeitures. Forfeitures arising from terminations of service of members shall serve only to reduce future city contributions.

(e)

Prohibited transactions. Effective as of January 1, 1989, a board may not engage in a transaction prohibited by Internal Revenue Code Section 503(b).

(f)

USERRA. Effective December 12, 1994, notwithstanding any other provision of this system, contributions, benefits and service credit with respect to qualified military service are governed by Internal Revenue Code Section 414(u) and the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended. To the extent that the definition of "credited service" sets forth contribution requirements that are more favorable to the member than the minimum compliance requirements, the more favorable provisions shall apply.

(g)

Vesting.

(1)

Member will be 100 percent vested in all benefits upon attainment of the plan's age and service requirements for the plan's normal retirement benefit; and

(2)

A member will be 100 percent vested in all accrued benefits, to the extent funded, if the plan is terminated or experiences a complete discontinuance of employer contributions.

(h)

Electronic forms. In those circumstances where a written election or consent is not required by the plan or the Internal Revenue Code, an oral, electronic, or telephonic form in lieu of or in addition to a written form may be prescribed by the board. However, where applicable, the board shall comply with Treasury Regulations Section 1.401(a)-21.

(i)

Compliance with F.S. chs. 175 and 185. It is intended that the system will continue to qualify for funding under F.S. §§ 175.101 and 185.08. Accordingly, unless otherwise required by law, any provision of the system which violates the requirements of F.S. chs. 175 and 185, as amended from time to time, shall be superseded by and administered in accordance with the requirements of such chapter.

(Ord. No. 00-22, § 1, 2-24-00; Ord. No. 02-43, § 4, 9-26-02; Ord. No. 09-03, § 10, 3-12-09)