CONTRIBUTIONS

You are required to contribute 7% percent of your earnings to the Pension Plan.  Contributions are made by payroll deduction.  Earnings include base wages, assignment pay, longevity, City & State academic pay, temporary upgrade pay, shift pay and certification and First Responder pay for Firefighters’.  Pension Plan contributions are not included in income subject to Federal Income Tax.

During periods of non-service incurred disability, sick leave, vacation, authorized leave of absence and military service you are required to continue contributions.  During periods of service-incurred disability, if the disability occurred after January 24, 1992, firefighters are not required to continue payment of contributions.  Police Officers &  Firefighters that have made the election for a maximum accrual at 81% are only required to contribute 1% upon reaching 24 years of service.

The State of Florida provides a portion of insurance premiums to the fund for the express purpose of funding retirement benefits for police officers and firefighters in the City. The City is required to contribute the amount necessary to maintain the Plan on a sound basis as determined annually by an independent enrolled actuary.

All contributions are placed in the trust fund.  The contributions and investment earnings can be used only for the exclusive benefit of Plan members and their beneficiaries.  It is not possible for members to borrow against their contributions to the Plan.

CONTRIBUTION REFUNDS

If you leave employment with the City before completing at least 10 years of service, you are not eligible for benefits.  The money you contributed to the Plan, plus 3% interest, compounded annually on December 31, will be refunded to you.

If you leave after completing 10 or more years of service, you are eligible for a deferred, vested benefit, but you may choose to withdraw your contributions. When you withdraw your contributions, you forfeit any vested retirement benefits you may be entitled to.

As of January 1989, the money you contribute to the Pension Plan each payday has not been included in earnings subject to Federal income tax.  This means that your taxable income does not include the amount you contributed to the Pension Plan each year. If you leave employment, and receive a refund of your contributions plus accrued interest, the amount you contributed after January 1989 becomes taxable income. This money will be subject to the mandatory Federal income tax withholding of 20% as well as a 10% excise tax.  You may defer Federal income tax, and avoid the mandatory 20% withholding for income tax, by directing the City to transfer the untaxed portion of your contributions to an Individual Retirement Account (IRA) or another qualified pension plan. Contact the Pension Office for specific information.