Summary Plan Description

Hollywood Firefighters’ Pension Fund

Key Elements Established by the City in 1939.

Covers approximately 200 active firefighters.

Provides benefits to 391 retirees and beneficiaries, including DROP members.

Assets of $200,000,000 (market value as of 12-31-2015)

Understanding Your Benefit Overview:

– Membership Eligibility – Contributions to the Plan– Vesting– Normal Benefits

• Tier 1A & 1B• Tier 2A & 2B

– Disability • Service Related• Non-Service Related

– Death• Service Related• Non-Service Related

– How to Calculate Your Benefit?

Membership Eligibility Upon date of employment as a

Firefighter with the City of Hollywood, Firefighters become Members in the plan and begin making Employee Contributions.

Contributions To The Plan 4 Sources of Contributions:

– Members Pre-Tax Annual compensation• Tier 1A & 1B: 8% • Tier 2A & 2B: 7.5%

– City: required to contribute amounts as mandated by the State of Florida.

– State: contributions under Florida Chapter 175

– Investment Income: return on assets invested in securities.

Contributions are deposited in a special trust fund

VESTING Vesting refers to portion of retirement

benefit which is eligible for payment when Normal Retirement Date is reached.

Fully “Vested”– 10 years credited service.

Accumulated Contributions are always 100% Vested.– Non-forfeitable right to receive your Employee

Contributions without interest after termination from City for any reason.

NORMAL BENEFITTier 1A & 1B: Hired Before 7/16/09

Tier 2A & 2B: Hired After 7/16/09

Tier 1 Members: – Minimum requirement:

• Age 50 & 10 yrs Credited ServiceOR

• 23 yrs of Credited Service (any age)

Tier 2 Members:– Minimum requirement:

• Age 55 & 10 yrs Credited ServiceOR

• 25 yrs of Credited Service (any age)

NORMAL BENEFIT Eligibility for Frozen Benefits as of 9/30/11

Tier 1 : Tier 1A: Age 50(+) AND 10+ yrs Credited

Service OR Any Age AND 23+ yrs Credited Service.

Tier 1B: Age 55(+) AND <10 yrs of Credited Service.

Tier 2 Tier 2A: Age 55(+) AND 10+ yrs Credited

Service. Tier 2B: 25+ yrs Credited Service (any age)

NORMAL RETIREMENT Eligibility for Future Benefits AFTER 9/30/11

– Tier 1: Entitled to Benefit at age 50• Terminate Employment AFTER Vesting,

BEFORE Eligible for Retirement AND Accumulated Contributions NOT withdrawn.

– Tier 2: Entitled to Benefit at age 55• Terminate Employment AFTER Vesting,

BEFORE Eligible for Retirement AND Accumulated Contributions NOT withdrawn.

– Accumulated Contributions Refunded:

• Terminate Employment BEFORE Vesting OR

• BEFORE Eligible for Retirement

DEFERRED VESTED Eligibility for FUTURE BENEFITS as of 9/30/11

– Tier 1: Must have 10+ years Credited Service• Entitled to Benefit at age 50• Terminate Employment AFTER Vesting,

BEFORE Eligible for Retirement AND• Accumulated Contributions NOT withdrawn.

– Tier 2: Must Have 10+ years Credited Service• Entitled to Benefit at age 55• Terminate Employment AFTER Vesting,

BEFORE Eligible for Retirement AND• Accumulated Contributions NOT withdrawn.

– Accumulated Contributions Refunded:

• Terminate Employment BEFORE Vesting OR

• BEFORE Eligible for Retirement

DEFERRED VESTED Eligibility for FUTURE BENEFITS After 9/30/11

Eligible if:- Injured In the Line of duty. - Injured Outside the Line of Duty

requires 5 yrs+ of Credited Service

DISABILITY BENEFITS

TOTAL & PERMANENT DISABILITY

In the line of duty: – Spouse (or Beneficiary, if not

married) receives monthly benefit for life.

NOT in the Line of duty AND 5 yrs+ of Credited Service:- Spouse receives monthly benefit

for life or until remarriage- If not married, Accumulated

Contribution is Refunded.

DEATH BENEFITS BEFORE RETIREMENT

DEATH BENEFITS AFTER RETIREMENT

If married 2 yrs prior:– Spouse receives monthly benefit for life or

until remarriage Optional form of payment:

– Married or Not at retirement, member can elect

– Benefit’s modified to reflect optional form elected

– “Contingent annuitant” receives fraction of reduced benefit

NORMAL BENEFIT

10 years as of 9/30/11

COLA

Yes

AFC = 78 (3 Years) ; Max benefits 86% of AFC

3.3% x AFC x YOS (Years of Service)50yrs/old with 10 YOS OR 23 YOS

<10 years as of 9/30/11

TIER 1 (Hired Before 7/16/09)

Frozen as of 9/30/11

COLA

Yes

AFC = 78 (3 Years) ; Max benefits 86% of AFC

3.3% x AFC x YOS (Years of Service)50yrs/old with 10 YOS OR 23 YOS

Hired After 7/16/09

COLA

No

AFC = 130 (5 Years) ; Max benefits 82.5% of AFC

3.2% x AFC x YOS (Years of Service)55 yrs/old with 10 YOS OR 25 YOS

TIER 2 (Hired After 7/16/09)

Frozen as of 9/30/11

10 years as of 9/30/11

COLA

No

AFC = 130 (5 Years) ; Max benefits 86% of AFC

3.0% x AFC x YOS (Years of Service)50yrs/old with 10 YOS OR 23 YOS

<10 years as of 9/30/11

TIER 1 (Hired Before 7/16/09)

LIVE AFTER 9/30/11

COLA

No

AFC = 130 (5 Years) ; Max benefits 86% of AFC

3.0% x AFC x YOS (Years of Service)55yrs/old with 10 YOS OR 25 YOS

Hired After 7/16/09

COLA

No

AFC = 130 (5 Years) ; Max benefits 73.6% of AFC

3.0% x AFC x YOS (Years of Service)55 yrs/old with 10 YOS OR 25 YOS

Hired After 9/30/11

TIER 2 (Hired After 7/16/09)

LIVE AFTER 9/30/11

COLA

No

AFC = 130 (5 Years) ; Max benefits 80% of AFC

3.0% x AFC x YOS (Years of Service)55 yrs/old with 10 YOS OR 25 YOS

Normal Benefits

Calculating Your Benefit

Average Final Compensation

TIER 1 (Hired Before 7/16/09) How to calculate your benefit?

Average Final Compensation

TIER 1 (Hired Before 7/16/09)

Average Final Compensation

TIER 2 (Hired After 7/16/09) How to calculate your benefit?

Average Final Compensation

TIER 2 (Hired After 7/16/09)

DEFERRED VESTED How to calculate compensation?

Same Formula used for Normal Retirement :

Benefit Multiplier x

Average Cash Compensation of the highest years of Credited Service

x Years a Plan Member

Annual Benefit

• If the accumulated contributions are not withdrawn and you don’t survive to normal retirement date, your designated beneficiary shall be entitled to a benefit as provided at the normal retirement date.

DISABILITY BENEFITS How to calculate compensation? Total and Permanent Disability

Service Related: IN THE LINE OF DUTY• 75% of Compensation Paid Monthly• Disability Benefits are offset by any workers’

compensation, or similar benefits received

Non-Service Related:NOT IN THE LINE OF DUTY• Five (5)+ Years completed of Credited Service• 25% of Compensation Paid Monthly• Disability Benefits are offset by any workers’

compensation, or similar law payable to you or your dependents benefits received

• Benefit recomputed as 75% of your Compensation, Paid monthly if still disabled at Normal Retirement Date

Total and Permanent Disability

Other Considerations: Board of Trustees • Benefits are subject to Board

Approval• Board designates a Physician • Medical evidence reviewed by

Board• Annual Physical examination

certifying disability may be required at the Boards discretion.

• If found able to perform active duty, disability benefits will cease, employment will be reinstated, Credited Service will be applied for period of disability.

DISABILITY BENEFITS Cont’d How to calculate compensation?

DEATH BENEFITS How to calculate compensation?

Service Related: IN THE LINE OF DUTY

Ten (10)+ Years of Credited Service:• Surviving Spouse (or Beneficiary, if not married)

option to receive, for life a monthly benefit equal to 50% of your Compensation at the time of your death OR 50% of the benefits that would be otherwise payable to you at Normal Retirement Date.

<Ten (10)- Years of Credited Service:• Surviving Spouse (or Beneficiary, if not married)

will receive, for life monthly benefit equal to 50% of your Compensation at the time of your death.

CHAPTER 175 Share Plan

The plan is funded exclusively through excess, undedicated Chapter 175 insurance premium rebate taxes as further described in this section.

The membership of the plan shall consist of all Tier 1 and Tier 2 members in active service as of July 16, 2009, excluding retirees

BENEFIT LIIMITATIONS This plan is maintained for the benefit of eligible employees to

provide financial security upon retirement. However, the following circumstances, among others, could cause a loss or reduction in benefits from plan:

1. If you stop working before you become vested under the plan, then you are only entitled to the return of the contributions you put into the plan.

2. If you fail to properly file all necessary information and applications as required by the Board of Trustees, you may be denied benefits.

3. If the plan terminates and the assets in the trust fund are in sufficient, then you may not receive full payment of your accrued benefit under the plan.

4. In no event can your annual retirement benefit from the plan exceed the legal limit for benefits established by the Internal Revenue Service.

5. If you are convicted of certain specified offenses, you may be denied benefits.

6. Portions of your plan benefits may be subject to Federal or other income tax when paid to you or your Beneficiary.