§ 16-113. Funding.

(a)

Funding. The plan shall be funded by contributions from Participants, contributions from the City of Cocoa Beach and other income sources as authorized by law.

(b)

Participant contributions. All participants shall make regular contributions at the rate of five (5) per cent of earnings which shall be deposited in the fund at least monthly. The City of Cocoa Beach 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) per cent reduction of each participant's base pay and of base pay levels which occurred on October 1, 1999 and is intended to comply with Section 414(h)(2) of the Internal Revenue Code.

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. All retroactive contributions due must be paid in full prior to retirement.

(c)

City contributions. The City of Cocoa Beach shall contribute to the plan on at least a quarterly basis an amount which, together with the contributions derived from participants and the amount derived from premium taxes 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. 1222, § 1, 11-18-1999)