§ 30. Definitions.

The following words and phrases have the following meanings:

(a)

"Accrued benefit" means the monthly benefit payable at normal retirement age, as determined under the Firefighters' Relief and Pension Fund's formula.

(b)

"Actuarial equivalent" means for Plan Years before to October 1, 2013, the equality in the value of the aggregate amount to be received under different forms of payment, computed on the basis of the 1971 Group Annuity Mortality Table and an interest rate equal to eight percent (8%) per annum. Notwithstanding the foregoing, with respect to disability retirement, "Actuarial Equivalent" means equality in the value of the aggregate amount to be received under different forms of payment, computed on the basis of the SSA-74 Mortality Table and an interest rate equal to eight percent per annum. For Plan Years beginning on and after October 1, 2013, "actuarial equivalent" means, unless otherwise specified herein, the equality in the value of the aggregate amount to be received under different forms of payment computed on the basis of the RP 2000 Combined Healthy Mortality Table and an interest rate equal to eight percent per annum.

(c)

"Code" means the Internal Revenue Code of 1986.

(d)

"Compensation," "salary," and "earnings" mean the wages paid to a firefighter, for those with 10 or more years of service as of the effective date of this act a maximum of 300 hours annual overtime pay, for those with less than 10 years of service as of the effective date of this act a maximum of 200 hours annual overtime pay, for those hired on or after the effective date of this act no overtime pay, station or watch captain pay, special duty pay, in-service sick leave redemption pay (when paid), bonuses, lump-sum payments not paid at termination, inclusive of employee-elective salary reductions or deferrals to any salary reduction, deferred compensation, or tax-sheltered annuity program authorized under the Internal Revenue Code if the firefighter would receive those reductions or deferrals if he or she were not participating in such program, and any other payments required by law to be included in pension calculations. Compensation for any plan year shall not exceed the annual compensation limit under section 401(a)(17) of the Code, as in effect on the first day of the plan year. This limit shall be adjusted by the Secretary of the Treasury to reflect increases in the cost of living, as provided in section 401(a)(17)(B) of the Code; however, that the dollar increase in effect on January 1 of any calendar year is effective for plan year beginning in such calendar year. If a Plan determines compensation over a plan year that contains less than twelve (12) calendar months (a "short plan year"), then the compensation limit for such short plan year is equal to the compensation limit for the calendar year in which the short plan year begins multiplied by the ratio obtained by dividing the number of full months in the short plan year.

(e)

"Deferred Retirement Option Plan" or "DROP" means a retirement option in which a firefighter may elect to participate, under which a firefighter may retire for all purposes of the plan and defer receipt of retirement benefits into a DROP account while continuing employment with the city.

(f)

"Enrolled actuary" means an actuary who is enrolled under Subtitle C of Title III of the Employee Retirement Income Security Act of 1974 and who is a member of the Society of Actuaries or the American Academy of Actuaries.

(g)

"Firefighter" means any person employed by the City of Pensacola fire department who is certified as a firefighter as a condition of employment in accordance with the provisions of s. 633.35, Florida Statutes, and whose duty it is to extinguish fires, to protect life, or to protect property.

(h)

"Limitation year" means the plan year.

(i)

"Plan" means the Firefighters' Relief and Pension Fund.

(j)

"Plan year" means the 12-month period ending on September 30.

(k)

"Regulations" means the Treasury Regulations adopted by the Department of Treasury.

(l)

"Retiree" or "retired firefighter" means a firefighter who has entered retirement status. A firefighter who enters a DROP created by the City of Pensacola for firefighters shall be considered a retiree for all purposes of the Firefighters' Relief and Pension Fund.

(m)

"Retirement" means a firefighter's separation from city employment as a firefighter with the immediate eligibility for receipt of benefits under the Firefighters' Relief and Pension Fund, including entry into a Deferred Retirement Option Plan.

(n)

"Years of service" means the aggregate number of years of service, and fractional parts of a year of service, of any firefighter, omitting intervention years and fractional parts of years when such firefighter may not have been employed by the City of Pensacola as a firefighter. Service shall include military service, as provided in paragraph (1) below, and shall not include credit for any other type of service.

(1)

In determining the creditable service of any firefighter, credit for up to five (5) years of the time spent in the military service of the Armed Forces of the United States shall be added to the years of actual service if:

a.

The firefighter is in the active employ of the city before such service and leaves a position, other than a temporary position, for the purpose of voluntary or involuntary service in the Armed Forces of the United States.

b.

The firefighter is entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act.

c.

The firefighter returns to his or her employment as a firefighter of the city within one (1) year after the date of his or her release from such active service.

(2)

In addition to service credits awarded for military service leave under subsection (1) above, any member of the Plan who served in the Armed Forces of the United States as described under chapter 2009-97, Laws of Florida, shall be entitled to purchase service credits for such service or employment by contributing as provided in 2. below an amount which is determined to be the full actuarial cost of the service credits purchased. Once the member is vested but not yet retired or entered into DROP, the member may purchase a maximum of five (5) years of any combination of the aforementioned qualifying noncity service.

1.

The contribution required of the employee to purchase service credits for prior military service or prior employment as a firefighter may be made in one lump sum installment or by rollover from a qualified plan.

2.

The contribution is an actuarially determined amount of the employee's pensionable current annual compensation at the time of the buy-back for each year purchased.

A member who is receiving or will receive a pension benefit for military or prior firefighter service in any other pension plan supported by public funds, excluding a military pension, may not use or buy back credited service for the City of Pensacola Firefighters' Relief and Pension Fund.

(Laws of Fla., Ch. 00-468, § 25; Ord. No. 02-11, § 7, 1-27-11; Ord. No. 28-13, § 3, 9-26-13; Laws of Fla., Ch. 2015-206)