POLICE AND FIRE EMPLOYEES DEFINED CONTRIBUTION PLAN

Jacksonville Ordinance Code tit. V, ch. 120, pt. V, subpt. C

in effect

Jacksonville Ordinance Code § 120.501C Plan established.

Sec. 120.501C. - Plan established. There is hereby created a Police and Fire Employees Defined Contribution Plan, known as the PFDC plan, effective as of October 1, 2017. (Ord. 2017-258-E, § 1)

Jacksonville Ordinance Code § 120.502C Membership.

Sec. 120.502C. - Membership. (a) Membership shall be comprised of all police officers and fire fighters, who are not enrolled in another City-sponsored retirement program. All police officers and fire fighters hired on or after October 1, 2017, must be a Member of the PFDC. (b) The City shall create and manage employee education programs, including the right to hire third party educational services. (c) The System and the City shall not incur any liability arising from the investment decisions of CDC plan participants or from the above education and training programs. (Ord. 2017-258-E, § 1)

Jacksonville Ordinance Code § 120.503C Contributions.

Sec. 120.503C. - Contributions. Member contributions shall be ten percent of earnable compensation as defined in Section 121.113(a)(1) of the Ordinance Code. Member contributions shall be picked-up rather than contributed as provided in Section 414(h) of the Internal Revenue Code. A portion of the Member contributions, equal to 0.3 percent, shall be used to fund the disability and survivor benefits outlined below. The City shall contribute 25 percent of earnable compensation. A portion of the City contributions, equal to 0.3 percent, shall be used to fund the disability and survivor benefits outlined below; however, the City shall contribute such additional sums, as necessary, to fund the disability and survivor benefits on a sound actuarial basis. Members may make additional contributions on an after-tax basis, to the extent permitted by law. Members may also rollover to the PFDC plan benefits accrued in other qualified plans consistent with the then prevailing provisions of the Internal Revenue Code. General administrative fees will be paid by the City. Fees charged to individual accounts will be paid by the employee. (Ord. 2017-258-E, § 1)

Jacksonville Ordinance Code § 120.504C Vesting.

Sec. 120.504C. - Vesting. Upon leaving employment, PFDC plan members will be entitled to 100 percent of their own contributions and earnings and will be entitled to the following percentages of the employer's contribution and earnings after the indicated number of years of service: Members of the PFDC plan shall be 25 percent vested upon the conclusion of six months of credited service, shall be vested 50 percent upon conclusion of one year of credited service, shall be vested 75 percent upon conclusion of two years of credited service, and shall be fully vested upon the conclusion of three years of credited service. (Ord. 2017-258-E, § 1)

Jacksonville Ordinance Code § 120.505C Administration of the PFDC Plan.

Sec. 120.505C. - Administration of the PFDC Plan. The City shall be responsible for the Administration of the PFDC plan. However, with input from the bargaining unit, the City will select, through its procurement process, and manage a third-party fund manager. Notwithstanding any other provision of this Chapter, the Board of Trustees for the retirement system shall not manage or administer the PFDC Plan. (Ord. 2017-258-E, § 1)

Jacksonville Ordinance Code § 120.506C Investment of Member Accounts; New Employee Orientation; Member Education.

Sec. 120.506C. - Investment of Member Accounts; New Employee Orientation; Member Education. (a) All members of the PFDC plan shall have individual member accounts. Member accounts shall be invested in one or more commingled or mutual funds selected from a list chosen by the City. At least one such fund shall be a diversified model portfolio, with automatic rebalancing and limited volatility, and designed to minimize risk of loss. The City shall have continuing due diligence responsibility in the selection, monitoring and replacement of investment options, but not for the individual investment decisions of PFDC plan participants. (b) The City shall, at its own expense, arrange for all Members of the PFDC to meet with a financial advisor to provide financial counseling three times during each Member's career. These meetings will occur: (1) when the Member is in the initial training academy; (2) upon the Member's completion of ten years of employment; and (3) upon the Member's completion of 20 years of employment. (c) The City shall not incur any liability arising from the investment decisions of PFDC plan participants or from the above education and training programs. (Ord. 2017-258-E, § 1)

Jacksonville Ordinance Code § 120.507C Loans and Qualified Domestic Relations Orders Prohibited; Exemption from Claims of Creditors.

Sec. 120.507C. - Loans and Qualified Domestic Relations Orders Prohibited; Exemption from Claims of Creditors. (a) Member loans shall not be permitted. (b) Qualified domestic relations orders (QDRO) for the distribution of marital property rights shall not be permitted; provided, however, this shall not alter the provisions of Florida law relating to equitable distribution. (c) All member accounts shall be exempt from claims of creditors, bankruptcy, insolvency, or legal process of any kind, except for the payment of alimony, child support, or federal tax levies as provided by law. Member accounts may not be pledged or assigned; provided however, retired members may elect direct payment of a portion of the accrued retirement benefit, upon separation from service, to the payment of any City-sponsored benefit program, or for the payment of dues for the retired employees association. (Ord. 2017-258-E, § 1)

Jacksonville Ordinance Code § 120.508C Continuation of Benefits.

Sec. 120.508C. - Continuation of Benefits. The City and any authorized certified bargaining agent shall have all of the rights and be subject to the provisions of F.S. Ch. 447, including but not limited to the requirement for negotiations, the term limitation set forth in F.S. § 447.309(5), and the impasse process, provided however, that the City shall not unilaterally alter Members' retirement benefits, as authorized by F.S. § 447.403(4)(d), for a period of three years from October 1, 2017, and such period shall automatically extend for two additional three-year periods, and one additional one-year period, under the following circumstances: if the fiscal condition of the economy for the City of Jacksonville, as determined and certified in writing by the City's Director of Finance and Administration, within 90 days after the termination of the first three-year period, and, if applicable, within 90 days after the termination of the second three-year period, and, if applicable, within 90 days after the termination of the third three-year period, meets the all of the following requirements: (a) The average annual growth rate of the City of Jacksonville's total share of ad valorem revenues collected for Duval County for the three most recent fiscal years is no less than 2.5 percent, as provided in writing by the City's Director of Finance and Administration. For the purposes of this subsection, during a particular fiscal year, if (1) there is a millage rate reduction, and (2) the 2.5 percent threshold is not met, that particular fiscal year shall not be counted as part of the three most recent fiscal years' average and instead on the remaining non-effected fiscal years shall be used to calculate the average annual growth; and (b) The time-weighted, average annual gross return on investment for the Police and Fire Pension Fund for the three most recent fiscal years is no less than the actuarial assumed rate of return, less one percent, as provided in writing by the Police and Fire Pension Fund investment consultant. (c) The three most recent fiscal years shall be the three fiscal years terminating prior to or during the 90-day period(s) noted above; (d) The automatic extension referenced above shall not take effect if the certified collective bargaining agent declares an impasse on retirement benefits; and (e) The average annual growth rate in ad valorem taxes, provided for in subsection (i) above, shall be the actual cash collections, as determined by the Chief Financial Officer within 90 days of the end of the prior fiscal year. (Ord. 2017-258-E, § 1)

Jacksonville Ordinance Code § 120.509C Participation in City's Health Insurance Plan.

Sec. 120.509C. - Participation in City's Health Insurance Plan. Retiree members of the PFDC plan shall be entitled to participate in the City's health insurance plan in the same manner as a retiree of the DB plan, beginning on the next pay period following the date upon which the PFDC plan member retires from the City after attaining (a) age 65 with five years of credited service, or (b) any age with 20 years of credited service. (Ord. 2017-258-E, § 1)

Jacksonville Ordinance Code § 120.510C Compliance with the Internal Revenue Code.

Sec. 120.510C. - Compliance with the Internal Revenue Code. The PFDC plan shall at all times be maintained as a qualified plan in accordance with the applicable provisions of the Internal Revenue Code. Contributions shall not exceed the maximum amount permitted under Section 415 of the Internal Revenue Code. Section 120.104 of the Ordinance Code, to the extent applicable, is incorporated by reference. (Ord. 2017-258-E, § 1)

Jacksonville Ordinance Code § 120.511C Surviving spouse benefits; children's benefits.

Sec. 120.511C. - Surviving spouse benefits; children's benefits. (a) In the event of the death of an active full-time police officer or fire fighter, the surviving spouse, as defined in subsection (i), shall receive 75 percent of 60 percent (plus an additional two percent for each full year of service in excess of 20 years) of the Member's average salary received in the 52 pay periods immediately preceding the Member's death. The surviving spouse shall be entitled to a three percent cost of living adjustment to be applied each January 1. (b) If there is no surviving spouse, unmarried children under the age of 18 years shall receive the greater of $200 a month or a proportionate share of the same benefit as a surviving spouse without children. The benefit shall continue until the earlier of the child's marriage or reaching age 18. If there is no surviving spouse, unmarried children over the age of 18 who are qualified students shall receive $200 a month. The benefit shall continue until the earlier of the child's marriage or reaching the age of 22. The children shall be entitled to a three percent cost of living adjustment applied each January 1. (c) If there is a surviving spouse, unmarried children under the age of 18 years, or up to 22 years if a qualified student, shall receive a benefit of $200 per child per month upon the death of the member, where no other survivorship benefit is available. The benefit shall continue until the child's marriage or upon reaching age 18, unless they are a qualified student, wherein the benefit shall continue until reaching age 22, unless the child is disabled, in which case the benefits will continue for the life of the child or during the presence of the disabling condition. The children shall be entitled to a three percent cost of living adjustment to be applied each January 1. (d) If the total surviving benefit of a spouse and children exceeds 60 percent (plus an additional two percent for each full year of service in excess of 20 years), of the average salary received by the Member for the 52 pay periods immediately preceding the Member's death, the survivors' benefits shall be prorated. (e) The survivor benefit will include a supplemental benefit of $5 per month for each year of actual credited service, which will be no less than $25 and no more than $150 per month. (f) In the event that a deceased employee's qualified survivors decline the benefits described above, the deceased employee's designated beneficiaries will receive the employee's contributions and earnings in the PFDC plan, and any employer contributions and earning to which the deceased employee had a vested right. (g) No survivor benefit shall be paid to any person who intentionally and unlawfully killed or participated in procuring the death of the retiree or member. (h) In order to be deemed a surviving spouse of an active member under the terms of this Section, the spouse must have been married to the active member at the time of the active member's death. (i) If death benefits are paid to any survivor, such benefits will be in lieu of the payment of the employee's contributions and earnings to the PFDC plan, and any employer contributions and earning to which the deceased employee had a vested right. (Ord. 2017-258-E, § 1)

Jacksonville Ordinance Code § 120.512C Disability.

Sec. 120.512C. - Disability. (a) A member shall be disabled if the member has suffered an illness, injury or disease which renders the member permanently and totally incapacitated, physically or mentally, from regular and continuous duty as a police officer or fire fighter, as established by competent medical evidence. A disability benefit cannot be based on a condition which pre-existed membership in the PFDC plan unless the nature of the injury or illness giving rise to the disability would reasonably be expected to give rise to a disability in a person without the pre-existing condition. (b) A member shall be eligible for a disability retirement from the entry date into the PFDC plan. (c) The disability benefit shall be paid on a bi-weekly basis in an amount equal to 60 percent of the member's average salary in the 52 pay periods immediately preceding the time of the disability. (d) Disability retirement income shall continue until the death of the member, or recovery from disability, or upon the death of a member. (e) A member receiving the disability benefit shall be entitled to a three percent cost of living adjustment to be applied each January 1. (f) A member receiving the disability benefit shall also be entitled to a supplemental benefit of $5 per month for each full year of actual service, which will be no less than $25 and no more than $150 per month. (g) No member shall be granted a disability benefit upon a determination that the disability resulted from: (1) Excessive and habitual use of drugs, intoxicants or narcotics; (2) Injury or disease sustained while willfully and illegally participating in fights, riots, civil insurrections or while committing a crime; (3) Injury or disease arising from service in the armed forces which entitle the member to disability benefits from the former employer; (4) Self-inflicted wounds or conditions. (Ord. 2017-258-E, § 1)

Source: City of Jacksonville, Ordinance Code and Charter and Related Laws (Municode Library, library.municode.com)URL: https://library.municode.com/fl/jacksonville/codes/code_of_ordinances?nodeId=TITVADPE_CH120GEEMCOOFPEPLALEMDECOREPL_PTVDECOPL_SPCPOFIEMDECOPLFetched: 10/27/2026