§ 29. Orlando Police Officers' SHARE Program.

(1)

Creation and Purpose.

(a)

Pursuant to Section 185.35(6), Florida Statutes, a share program to be entitled "The Orlando Police Officers' Share Program" is created. The purpose of this share program is to place certain state premium tax revenues received pursuant to Chapter 185, Florida Statutes, and earnings generated therefrom, in the share program to pay extra benefits to city police officers participating in such share program, as required by state law. The share program hereby created shall be in addition to any other benefits under the Orlando Police Pension Plan, and nothing herein shall in any way affect any other benefits that now or hereafter exist.

(b)

The benefits to be provided for or on behalf of participants of the Orlando Police Officers' Share Program shall be provided through participant - directed investments, and in accordance with s. 401(a) of the Internal Revenue Code and its related regulations.

(c)

The city shall not be required to levy any additional taxes on its residents or to make any contributions to the share program.

(2)

Definitions. The following words and phrases shall, unless otherwise defined or required by the context, for the purpose of the supplemental share program, have the meanings indicated below.

(a)

Account means the participant's share program individual account credited with (i) initial allocation of state premium tax revenues under Section 29(5) hereof, (ii) subsequent annual allocations of state premium tax revenues under Section 29(6) hereof, (iii) allocations of forfeitures under Section 29(9) hereof, and (iv) the net investment return of the participant's individual share program account.

(b)

State premium tax revenues means the state excise tax on casualty insurance premiums distributed to the city in accordance with Chapter 185, Florida Statutes.

(c)

Available Funds for any calendar year from 1998 through 2015 shall mean total state premium tax revenues received during that year by the City for deposit into the Police Officer Pension Plan, less the 1997 base amount of $2,155,329.40, and less any administrative expenses. Available Funds for any calendar year from 2016 forward shall mean 50% of the state premium tax revenues received during that year in excess of the 2012 base amount of $2,458,292.76, less any administrative expenses; unless a different amount is legally required under state law.

(d)

Board or board of trustees means the Board of Trustees of the Orlando Police Pension Plan, who shall likewise serve as the board of trustees of this share program. The board shall determine the initial allocation of Available Funds, annual allocations of Available Funds, forfeitures, and administrative expenses of the share program, and shall otherwise administer the share program in accordance with this Section 29.

(e)

Effective date means the date on which this ordinance is enacted.

(f)

Forfeiture means the termination of a participant's account under Section 29 (9) "forfeiture for cause" and "nonvesting forfeiture" of this supplemental share program.

(g)

Includable time, for purposes of the calculation of shares for each calendar year, means "credited service" as defined in Section 6, and includes time in which the officer was participating in the BACKDROP Retirement Option Program (BACKDROP), time during which the officer was performing "qualified military service", time during which the officer was eligible to receive workers compensation benefits, and time in which the officer was on Family Medical Leave Act (FMLA) leave with pay, but excludes any time in which the officer was on any other leave of absence without pay.

(h)

Net investment return for the participant's share program account means the net investment return for the share participant's individual share program account, net of any investment expenses, and less any administrative expenses incurred by the share program not deducted from annual state premium tax revenues.

(i)

Plan means the Orlando Police Pension Plan.

(j)

Qualified military service means that military service as defined in Section 414(u) of the Internal Revenue Code after initial employment as a police officer with the City of Orlando.

(k)

Separated or separation from employment means a voluntary or involuntary cessation of employment or death while as a police officer with the City of Orlando.

(l)

Share participant or participant means:

(i)

For the initial allocation, any person who was a Plan member, including retirees and beneficiaries currently receiving benefits and any separated vested Plan members eligible for a benefit from the Plan in the future, on the effective date of the ordinance creating this share program and was a Plan member, including retirees and beneficiaries currently receiving benefits and any separated vested Plan members eligible for a benefit from the Plan in the future, with includable time constituting at least one full calendar year between the years of 1998 and 2015.

(ii)

For the future annual allocations, any person who was employed as a police officer and has one (1) full year of credited service on the last day of the calendar year in which there are Available Funds.

(m)

Share program or program means the Orlando Police Officers' Share Program as provided in this Section 29.

(n)

Share program year means January 1 through December 31.

(3)

Eligibility for Allocations.

(a)

Calculation of Shares for the Initial Allocation. Each Plan member who has or had at least one (1) full year of credited service on the last day of each calendar year from 1998 through 2015, in which there are Available Funds, shall receive an equal share of the Available Funds for that calendar year, less administrative expenses, deposited into his or her Police Officers' Share Program account.

(b)

Calculation of Shares for Annual Allocations. Each Plan member who has or had at least one (1) full year of credited service on the last day of any calendar year, beginning in year 2016, in which there are Available Funds, shall receive an equal share of the Available Funds for that calendar year, deposited into his or her Police Officers' Share Program account.

(4)

Participation.

(a)

Establishment of share program account. An individual account shall be established for each share participant.

(b)

Termination of participation. Every participant shall remain a participant until the participant is entitled to distribution of his or her account under the terms of this share program and actually receives full distribution, or upon forfeiture.

(5)

Initial Allocation of State Premium Tax Revenues Collected During Calendar Years 1998 through 2015. The initial allocation shall be determined by the board as follows:

(a)

As provided in Section 29(3)(a), each participant shall be eligible for an allocation as provided for herein.

(b)

For each of the calendar years from 1998 through 2015, a determination will be made of Available Funds for each calendar year in accordance with § 29(2)(c), and then the pro-rata portion of the lump sum cost of the additional minimum benefits added in this ordinance shall be deducted from the Available Funds for the purpose of calculating the initial dollar allocations for each participant's account.

(c)

In calculating the initial dollar allocations for each participant's account of the state premium tax revenues collected during calendar years 1998 through 2015, the Available Funds for each calendar year as defined in § 29(2)(c), less the pro-rata portion of the lump sum cost of the additional minimum benefits added in this ordinance, will be divided by the total number of eligible plan members, as defined in § 29(3)(a), for each calendar year.

(d)

As soon as administratively possible after the effective date, the board shall be given a spreadsheet listing each eligible police officer and for each of the aforesaid calendar years, the share amount to be distributed to each eligible officer for each calendar year and the cumulative distribution to each eligible officer for the initial allocation.

(e)

After review and approval by the board, said spreadsheet shall be published on the City's website, e-mailed to each eligible participant who has not separated from employment using their City e-mail address, and sent via U.S. regular mail to the last known address of all other persons listed on said spreadsheet.

(f)

Any person shall have the right to contest the calculation of shares by filing a written complaint with the board within thirty (30) days of publication of the spreadsheet on the City's website. Within sixty (60) days but not less than thirty (30) days of publication of the spreadsheet on the City's website, the board shall hold a quasi-judicial hearing to determine each officer's share amount, and render an order.

(g)

As soon as administratively possible, distribution shall be made to the participant's individual share account.

(6)

Annual Allocation of State Premium Tax Revenues Collected for Calendar Year 2016, and Each Calendar Year Thereafter.

(a)

Except as provided herein, each eligible participant during any calendar year beginning in 2016 shall participate in the annual allocation as provided for herein.

(b)

The Available Funds for calendar year 2016, and each calendar year thereafter, regardless of when such state premium tax monies are received by the City or the plan, shall be allocated to the share accounts of eligible participants, such that each eligible participant receives an equal share of the Available Funds for that calendar year.

(c)

Within sixty days of the receipt of any state premium tax monies by the City, the board shall be given a spread sheet listing the total Available Funds for the calendar year, a list of eligible participants, and the share amount to be distributed to each eligible participant for that year.

(d)

After review and approval by the board, said spreadsheet shall be published on the City's website, e-mailed to each eligible participant who has not separated from employment using their City e-mail address, and sent via U.S. regular mail to the last known address of all other persons listed on said spreadsheet.

(e)

Any person shall have the right to contest the calculation of shares by filing a written complaint with the board within thirty (30) days of publication of the spreadsheet on the City's website. Within sixty (60) days but not less than thirty (30) days of publication of the spreadsheet on the City's website, the board shall hold a quasi-judicial hearing to determine each participant's share amount, and render an order.

(f)

As soon as administratively possible but no later than thirty (30) days after resolution of any appeal, or if none, within sixty days of board review and approval, distribution shall be made to the participant's individual share account.

(g)

The annual dollar allocation to the participant's account of the state premium tax revenues collected shall be reduced by an amount determined by the board as sufficient to cover administrative expenses.

(h)

For those eligible participants who have separated from employment, distribution shall be made pursuant to a written request from eligible share participant following delivery by the board or its designee of "Special Tax Notice Regarding Program Payments Under Governmental 401(a) Programs".

(7)

Share Program Benefits.

(a)

Share program benefits shall be provided in accordance with s. 401(a) of the Internal Revenue Code.

(b)

Share program benefits shall accrue in individual accounts that are participant-directed, and be funded in accordance with this Section.

(c)

Share program benefits may not be paid under this section unless the participant has separated from employment and a proper application has been filed in the manner prescribed by the board or its designee. The board or its designee may cancel an application when the participant or beneficiary fails to timely provide the information and documents required by the board or its designee.

(8)

Vesting Requirement.

(a)

Solely for the purposes of the Orlando Police Officers' Share Program, vested or vesting means the guarantee that a participant is eligible to receive a retirement benefit from the plan on the completion of ten (10) years of credited service with the plan, or such other vesting period of the plan as may exist in the future, at the time of separation from employment, or upon a determination by the board that the police officer is eligible for disability benefits from the plan. Additionally, a participant who dies while employed as a police officer with the City of Orlando or who dies while performing qualified military service, regardless of years of service and regardless of whether or not such death was in the line of duty, shall be considered vested for purposes of the Orlando Police Officers' Share Program, regardless of whether or not such death qualifies for benefits from the plan.

(b)

If a participant separates from employment prior to satisfying the vesting requirements, the participant's accumulation shall be transferred from the participant's account to the board where it shall be invested by the board in a suspense account. If the separated participant is reemployed as a police officer within five (5) years, the board shall transfer to the participant's account any amount of moneys previously transferred from the participant's account to the suspense account, plus the actual earnings on such an amount while in the suspense account, provided however, if the separated participant received a refund of member contributions, the reemployed police officer shall repay the member contributions to the plan, with interest as determined by the board. If the reemployed police officer does not repay the member's contributions for the previous credited service with interest as determined by the board within the time determined by the board, the previous accumulations shall be forfeited.

(c)

Any nonvested accumulations transferred from a participant's account to the suspense account shall be forfeited by the participant if the participant is not reemployed as a police officer within five (5) years after separation from employment.

(9)

Forfeitures.

(a)

Forfeiture for cause. Notwithstanding anything in the share program to the contrary, if a participant is convicted of a specified offense as set forth in Section 112.3173, Florida Statutes, or the participant's retirement benefit is otherwise forfeited pursuant to subsection 112.3173(3), Florida Statutes, as the same may be amended from time to time, the provisions of Section 112.3173, Florida Statutes, as same may be amended from time to time, shall apply and the participant shall forfeit all rights to receive a benefit from the share program in accordance with the provisions of such Section 112.3173, Florida Statutes.

(b)

Nonvesting forfeiture. If a share participant separates from employment who is not vested and who has not applied for disability benefits from the plan within the applicable time period, then the participant's account shall be administered pursuant to Section 29(8). A police officer who has applied for disability benefits from the plan who has separated from employment shall be included in the calculation of the annual allocation for that period before separation. If such police officer who has separated from employment is later determined not to be eligible for disability benefits from the plan, then the participant's account shall be administered pursuant to Section 29(8). Any police officer whose application for disability benefits is pending shall not be entitled to receipt of the participant's account, unless the police officer is otherwise qualified to receive pension benefits from the plan, now or in the future, based on years of service.

(c)

Any participant's account which is forfeited shall be held in an interest bearing forfeiture account to be used for the payment of administrative expenses expected for the following year, which expected amount shall be transferred to the administrative expense account. Any monies remaining in the forfeiture account after the transfer of the amount of expected administrative expenses shall be allocated among the other participants based upon the amount of shares each participant is allocated for the calendar year in which the forfeiture occurs. In the event IRS regulations do not allow the reallocation of forfeited share account balances to other member share accounts, the forfeited amount shall be allocated as required by IRS regulations.

(10)

Administration.

(a)

The board shall select a private sector company or companies to offer one or more investment products or services to the participants of the share program. Such private sector company or companies shall be a bundled provider that offers participants a range of individually allocated or unallocated investment products and a range of administrative and customer services, including accounting and administration of individual participant accounts; individual participant record keeping; asset purchase, control, and safekeeping; direct execution of the participant's instructions as to asset allocation; calculation of daily net asset value; direct access to participant account information; periodic reporting to participants, at least quarterly, on account balances and transactions; guidance, advice, and allocation services directly to its own investment options or products, but only if the bundled provider complies with the standard of care of s. 404(a)(1)(A-B) of the Employee Retirement Security Act of 1974 (ERISA) and if providing such guidance, advice, or allocation of services does not constitute a prohibited transaction under s. 4975(c)(1) of the Internal Revenue Code or s. 406 of ERISA, notwithstanding that such prohibited transaction provisions do not apply to the Orlando Police Officers' Share Program; a broad array of distribution options; asset allocation; and retirement counseling and education. Private sector companies include investment management companies, insurance companies, depositories, and mutual fund companies.

(b)

The board shall have the full power and authority to adopt rules and regulations for the administration of this share program and to interpret, alter, amend or revoke any rules so adopted, which rules shall have the force of law. However, the board shall not have the authority to adopt any rules which makes a substantive change to the share program.

(c)

The board shall have the full power and authority to retain independent legal counsel, independent actuary, and such independent professional, technical, or other advisors as it deems necessary at the expense of this share program.

(d)

Except as otherwise provided in Section 29, all costs, expenses and fees of administering this share program shall be paid from state premium tax revenues or the assets of this share program in such fashion as the board shall determine. Any allocation to a participant's account shall be net of the participant's allocable portion of the share program's costs, expenses and fees of administering the share program.

(e)

The Orlando Police Officers' Share Program shall be administered by the board and any approved provider and third party administrator, if any, in accordance with all applicable mandatory provisions of federal and state law now existing or as they may exist in the future. The board is hereby authorized to adopt written rules setting forth the specifics of applicable mandatory provisions of federal and state law as they now exist or may exist in the future, which rules shall have the force of law.

(11)

Investment.

(a)

The investment of the assets of the Orlando Police Officer's Share Program shall be subject to the limitations and conditions set forth in Chapter 185, Florida Statutes, and shall be pursuant to a written investment policy adopted by the board pursuant to Section 112.661, Florida Statutes, as such statutes now exist or as they may exist in the future.

(b)

Pursuant to Section 29(10)(a), the board shall select one or more bundled providers, each of whom may offer multiple investment options and related services.

(c)

As a condition of offering any investment option or product, the approved provider must agree to make the investment product or service available under the most beneficial terms offered to any other customer, subject to approval by the board.

(12)

Participant Information Requirements.

(a)

The board shall insure that each participant is provided an annual statement of the amount of state premium tax revenues, including forfeitures, less administrative expenses allocated to the participant's individual share account.

(b)

The board shall insure that each participant is provided a quarterly statement that accounts for the participant's interest and investment earnings thereon; any fees, penalties, or the deductions that apply thereto.

(c)

The approved provider and the third-party administrator, if any, shall provide quarterly and annual summary reports to the board and any other reports requested by the board.

(13)

Federal Requirements.

(a)

Provisions of this section shall be construed and the Orlando Police Officers' Share Program shall be administered, so as to comply with the applicable provisions of the Internal Revenue Code, 26 U.S.C., now existing or as they may exist in the future, and specifically with program qualification requirements imposed on governmental programs under § 401(a) of the Internal Revenue Code. The board shall have the power and authority to adopt rules reasonably necessary to establish and maintain the qualified status of the Orlando Police Officers' Share Program under the Internal Revenue Code and to implement and administer the Orlando Police Officers' Share Program in compliance with the Internal Revenue Code; provided, however, the board shall not have the authority to adopt any rule which makes a substantive change to the Orlando Police Officers' Share Program.

(b)

Any provision of this section which is susceptible to more than one construction must be interpreted in favor of the construction most likely to satisfy requirements imposed by s. 401(a) of the Internal Revenue Code.

(14)

Investment Policy Statement. Investment products and approved providers selected for the Orlando Police Officers' Share Program shall conform with the written policy statement adopted by the board pursuant to Section 112.661, Florida Statutes, as such statute now exists or as it may exist in the future. The statement must also include, among other items, the investment objectives of the Orlando Police Officers' Share Program, manager selection and monitoring guidelines, and performance measurement criteria. The board's "professionally qualified independent consultant" may present recommended changes in the investment policy statement to the board for approval.

(15)

Statement of Fiduciary Standards and Responsibilities.

(a)

Investment by approved providers of the Orlando Police Officers' Share Program assets shall be subject to the fiduciary standards set forth in Section 112.656 and Section 518.11, Florida Statutes, as such statutes now exists or as it may exist in the future.

(b)

If a participant or beneficiary of the Orlando Police Officers' Share Program exercises control over the assets in his or her account, as determined by reference to regulations of the United States Department of Labor under s. 404(c) of the Employee Retirement Income Security Act of 1974 and all applicable laws governing the operation of the program, no program fiduciary shall be liable for any loss to a participant's or beneficiary's account which results from such participant's or beneficiary's exercise or control.

(16)

Participant Records. Personal identifying information of a participant in the Orlando Police Officers' Share Program contained in records held by the board or the City of Orlando is exempt from Section 119.07(1), Florida Statutes and Section 24(a) Article I of the State Constitution.

(17)

Designation of Beneficiaries.

(a)

Each participant may, on a form provided for that purpose, signed and filed with the approved provider and third party administrator, if any, designate a choice of one or more persons, named sequentially or jointly, as his or her beneficiary who shall receive the benefits, if any, which may be payable pursuant to this section in the event of the participant's death. If no beneficiary is named in this manner, or if no beneficiary designated by the participant survives the participant, the beneficiaries shall be the beneficiaries of the participant's estate. The board may determine the beneficiaries of the participant's estate pursuant to rules adopted by the board. Otherwise, a court order determining the beneficiaries of the participant's estate shall be required.

(b)

A trust may be designated as a beneficiary.

(c)

In connection with the initial allocation or any future annual allocation to which the police officer is eligible, the board may honor any written designation of beneficiary of the eligible police officer received by the board or city which specifically references this share program, even if such written designation was received prior to the effective date.

(18)

Miscellaneous provisions.

(a)

Exclusive benefit rule. No part of the assets of this share program shall be used for, or diverted to any purpose whatsoever other than for the exclusive benefit of the share participants and beneficiaries thereof, and defraying reasonable expenses of administering the share program. No person shall have any interest in, or right to, any part of the assets of this share program, except as and to the extent expressly provided in this Section 29.

(b)

Non alienation of benefits. The benefits provided by this share program shall not be subject to garnishment, execution, attachment, the operation of bankruptcy or insolvency law, or to any legal process whatsoever, and shall be unassignable. Provided, however, the board may authorize deductions in accordance with Section 185.05(6), Florida Statutes, as such statute now exists or may exist in the future.

(c)

Marriage dissolution. No distribution of a participant's account shall be made because of dissolution of marriage. Payouts can only be made after the participant's separation from employment as a police officer. A participant's account shall not be subject to a Qualified Domestic Relations Order (QDRO). The costs incurred by the board for any actuarial, accounting, administrative, or legal services required to respond to any court orders or any other matters involving the calculation or division of a participant's account due to a dissolution of marriage shall be deducted from the participant's account.

(d)

Termination and discontinuance of the program. It is the intent of the City of Orlando that this share program be permanent and remain in effect for an indefinite period. However, in the event this share program is discontinued or terminated, all participants shall immediately become fully vested in their benefits. The discontinuance or termination shall be carried out in all respects in conformance with applicable statutes, rules and regulations of the federal government and the State of Florida, or any duly constituted agency thereof having jurisdiction.

(e)

Applicable laws. This share program shall be construed and enforced under the applicable laws of the State of Florida and any applicable federal laws, rules and regulations, and all of the provisions hereof shall be administered in accordance therewith.

(f)

Disclaimer with respect to investments. The City and the board of trustees make no endorsement, guarantee or any other representation and shall not be liable to this share program or any participant, beneficiary, or any other person with respect to the financial soundness, investment performance, fitness, or suitability (for meeting a participant's objectives, future obligations under the program, or any other purpose) of any investment option offered by this share program or any investment vehicle in which a participant's account are actually invested.

(g)

Spendthrift provision. The interests of the participant in his individual share account, or the income or gains therefrom, shall not be subject to the rights of creditors of the participant, and shall be exempt from execution, attachment, distress for rent, and all other legal or equitable process issued by or on behalf of such creditors, and the interests of the participant in his individual account or the income or gains therefrom shall not be assignable.

(h)

Venue. Any litigation concerning this share program shall be conducted in the state courts in the State of Florida situated in Orange County, Florida.

(i)

Reservation of right to amend share program. Subject to the provisions of Chapter 447, Part II, Florida Statutes, the City reserves the right at any time to amend or modify this share program, provided that no amendment shall cause any part of the share program assets to be used or diverted to purposes other than the exclusive benefit of the participants and their beneficiaries.

(j)

Compliance with Internal Revenue Code. If it is determined by the Internal Revenue Service that any provision of this share program cannot be corrected, or that the operation or administration of the share program cannot be corrected, such as to disqualify the Orlando Police Officer Pension Plan from being tax exempt under the applicable provisions of the Internal Revenue Code, then all assets of this share program shall be used to provide "extra benefits" in such a manner to not disqualify the Orlando Police Officer Pension Plan.

(Ord. No. 2017-22, § 5, 4-24-2017, Doc. #1704241202)