History Current Plan Status Benefit Enhancement Project

History July 2, 2002 City Council Levies Property Insurance Premium Tax of 1.85% on Insurance Companies, Ordinance Number – State restricted for funding of pension benefits for Firefighters

History February 15, 2005 City Council established City of Palm Coast Volunteer Firefighters Pension Plan (Defined Benefit Plan), Ordinance – Established Board of Trustees (5) 2 appointed by Council 2 appointed by Volunteers 1 appointed by other four

History Ordinance (Continued) – Established Retirement Qualifications - LOSAP (Length of Service Award Pension Program) – Benefit Amount - $35 per year of credited service – Establish Pension Eligibility

LENGTH OF SERVICE AWARD PENSION PROGRAM (LOSAP) POINTS ISSUED FOR THE FOLLOWING ACTIVITIES Response to Paged Calls (25%) Attendance at Drills (50%) Attend Business Meetings (8 Minimum) Position, Activity, Etc. points (50)

History March 3, 2009 City Council revised the City of Palm Coast Volunteer Firefighters Pension Plan, Ordinance – Increased benefit amount from $35.00 to $50.00 per year of credited service.

History October 18, 2011 City Council revised the City of Palm Coast Volunteer Firefighters Pension Plan, Ordinance – Increased benefit amount from $50.00 to $65.00 per year of credited service

Received During Fiscal Year AmountIncrease from Previous Year , , % , % , % , % , % , % , % , % , % 2013*236,585.58* HISTORY OF PREMIUM TAX RECEIPTS *partial payment received for FY 2013

Current Plan Status Annual Amount from State Tax Collections ($350,000-$400,000) Current Benefits ($144,000) Reserve for Benefit Improvements ($206,000-$256,000)

Plan Funding Status

Funded Ratio

Required Contributions

Reserve for Benefit Improvements

Benefit Enhancement Project Goals No increased potential liability to the City Comply with IRS Regulations Comply with State Pension Statutes Take Advantage of benefit improvement reserve

Benefit Enhancement Project Share Plan Concept Provide additional amount above current defined benefit plan ($65.00 per month) Recommendation annually to City Council by Pension Board to distribute a portion of the benefit enhancement reserve (if any) Both current volunteers and retirees participate Mitigate accumulation of benefit improvement reserve No effect on potential City liability

Benefit Enhancement Project Volunteer Firefighter Pension Plan Ordinance Update to include share plan component Update for IRS compliance Submit to IRS for Private Letter Ruling Update for changes in State statutes

Next Steps Apply to IRS for Private Letter Ruling – 9 to 12 month review period Present revised Ordinance to City Council for consideration once Private Letter Ruling received

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