§ 16-151. Funding

(a)

Funding. The plan shall be funded by contributions from participants, contributions from the city and other income sources as authorized by law.

(b)

Participant contributions. All participants shall make regular contributions at the rate of six and six-tenths (6.6) percent of compensation for all service prior to October 1, 1997, and seven and six-hundredths (7.06) percent of compensation for all service thereafter which shall be deposited in the system each pay period. For persons who first became participants of the retirement system on or after October 1, 1979, "compensation" shall exclude payments for all accumulated leave, compensatory time and overtime. The City of Lake Worth shall assume and pay participant contributions in lieu of payroll deductions from participants' earnings. No participant shall have the option of choosing to receive the contributed amounts directly instead of having them paid by the city directly to the plan. All such contributions by the city shall be deemed and considered as a part of the participant's accumulated contributions and subject to all provisions of this plan pertaining to accumulated contributions of members. This city "pick up" of contributions is the result of a five (5) percent reduction of each participant's base pay and of base pay levels which occurred on October 1, 1991 and is intended to comply with section 414(h) (2) of the Internal Revenue Code.

Notwithstanding the foregoing provisions of subsection (b), effective upon receipt of two hundred two thousand ($202,000) dollars to be transferred from the Police Relief and Pension Fund during calendar year 2014 and beyond the participant contribution shall be held to seven and six-hundredths (7.06) percent of compensation using the two hundred two thousand ($202,000) dollars to offset the cost of holding the contribution constant.

If a participant has not made contributions for any period of covered service, the participant must pay retroactive contributions for that period in order to receive vesting credit for that period. Such retroactive contributions shall be made over a period of time equal to the period of time for which contributions were not made unless the participant selects a shorter period. Any retroactive contributions due must be paid in full prior to retirement.

(c)

City contributions. The city shall contribute to the plan on at least a quarterly basis an amount which, together with the contributions derived from participants and other income sources as authorized by law, will be sufficient to meet the normal cost of the plan and to fund the actuarial deficiency over a period of not more than thirty (30) years.

(d)

Basis of payments from the pension plan. All benefits and expenses shall be paid in accordance with the provisions of this pension plan and the trust agreement and consistent with Florida Statutes and the Internal Revenue Code.

(Ord. No. 97-5, § 1, 2-18-97; Ord. No. 97-33, § 1, 11-18-97; Ord. No. 2000-5, § 13, 3-21-00; Ord. No. 2011-08, § 6, 5-3-11; Ord. No. 2012-20, § 2, 5-1-12; Ord. No. 2014-21, § 2, 7-1-14)