§ 46-29. Finances and fund management.

(a)

As part of the system, there is hereby established the fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the system, including the assets of the prior firefighters' pension plan.

(b)

The actual custody and supervision of the fund (and assets thereof) shall be vested in the board. Payment of benefits and disbursements from the fund shall be made by the disbursing agent but only upon written authorization from the board.

(c)

All funds of the firefighters' pension plan may be deposited by the board with the finance director of the city, acting in a ministerial capacity only, who shall be liable in the same manner and to the same extent as he is liable for the safekeeping of funds for the city. However, any funds so deposited with the finance director of the city shall be kept in a separate fund by the finance director or clearly identified as such funds of the firefighters' pension plan. In lieu thereof, the board shall deposit the funds of the firefighters' pension plan in a qualified public depository as defined in F.S. § 280.02, which depository with regard to such funds shall conform to and be bound by all of the provisions of F.S. § 280.02. In order to fulfill its investment responsibilities as set forth herein, the board may retain the services of a custodian bank, an investment advisor registered under the Investment Advisors Act of 1940 or otherwise exempt from such required registration, an insurance company, or a combination of these, for the purposes of investment decisions and management. Such investment manager shall have discretion, subject to any guidelines as prescribed by the board, in the investment of all fund assets.

(d)

All funds and securities of the system may be commingled in the fund, provided that accurate records are maintained at all times reflecting the financial composition of the fund, including accurate current accounts and entries as regards the following:

(1)

Current amounts of accumulated contributions of participants on both an individual and aggregate account basis, and

(2)

Receipts and disbursements, and

(3)

Benefit payments, and

(4)

Current amounts clearly reflecting all monies, funds and assets whatsoever attributable to contributions and deposits from the city, and

(5)

All interest, dividends and gains (or losses) whatsoever, and

(6)

Such other entries as may be properly required so as to reflect a clear and complete financial report of the fund.

(e)

An audit shall be performed annually by a certified public accountant for the most recent fiscal year of the system showing a detailed listing of assets and a statement of all income and disbursements during the year. Such income and disbursements must be reconciled with the assets at the beginning and end of the year. Such report shall reflect a complete evaluation of assets on both a cost and market basis, as well as other items normally included in a certified audit.

(f)

Investment of assets of the plan by the board must be consistent with a written investment policy adopted by the board in accordance with F.S. § 112.661.

(g)

The board shall have the following investment powers and authority:

(1)

The board shall be vested with full legal title to said fund, subject, however, and in any event to the authority and power of the Deltona City Commission to amend or terminate this fund, provided that no amendment or fund termination shall ever result in the use of any assets of this fund except for the payment of regular expenses and benefits under this system, except as otherwise provided herein. All contributions from time to time paid into the fund, and the income thereof, without distinction between principal and income, shall be held and administered by the board or its agent in the fund and the board shall not be required to segregate or invest separately any portion of the fund.

(2)

All monies paid into or held in the fund shall be invested and reinvested by the board and the investment of all or any part of such funds shall be limited to:

a.

Annuity and life insurance contracts with life insurance companies in amounts sufficient to provide, in whole or in part, the benefits to which all of the participants in the fund shall be entitled under the provisions of this system and pay the initial and subsequent premium thereon.

b.

Time or savings accounts of a national bank, a state bank insured by the bank insurance fund or a savings/building and loan association insured by the Savings Association Insurance Fund which is administered by the Federal Deposit Insurance Corporation or a state or federal chartered credit union whose share accounts are insured by the National Credit Union Share Insurance Fund.

c.

Obligations of the United States or obligations guaranteed as to principal and interest by the government of the United States or by an agency of the government of the United States.

d.

Bonds issued by the State of Israel.

e.

Stocks traded through a major electronic exchange. The board shall not directly invest in individual securities such that more than five percent of its assets are invested in the common stock, capital stock, or convertible securities of any one issuing company, nor shall the aggregate investment in any one issuing company exceed five percent of the out standing capital stock of that company; nor shall the aggregate of its investments in common stock, capital stock and convertible securities at market exceed 65 percent of the assets of the fund.

f.

Bonds or other evidences of indebtedness.

g.

Real estate.

h.

Up to 25 percent of the assets of the fund at market value may be invested in foreign securities. Foreign securities shall be defined as individual securities that are issued or guaranteed by a corporation not organized under the laws of the United States, or any state or organized territory of the United States, or the District of Columbia.

i.

Pooled funds, group trusts or other such collective investment funds including but not limited to mutual funds. For purposes of this subsection, pooled funds include, but are not limited to, mutual funds, commingled funds, exchange-trade funds, limited partnerships and private equity. Pooled funds may be governed by separate documents which may include investments not expressly permitted. The investment consultant shall periodically review with the board any material changes in the prospectus or governing policy of a pooled fund.

j.

The board may, upon recommendation by the board's investment consultant, make investments in group trusts meeting the requirements of Internal Revenue Service Revenue Ruling 81-100, Revenue Ruling 2011-1, IRS Notice 2012-6 and Revenue Ruling 2014-24 or successor rulings or guidance of similar import, and operated or maintained exclusively for the commingling and collective investment of monies, provided that the funds in the group trust consist exclusively of trust assets held under plans qualified under section 401(a) of the Code, individual retirement accounts that are exempt under section 408(e) of the Code, eligible governmental plans that meet the requirements of section 457(b) of the Code, and governmental plans under 401(a)(24) of the Code. For this purpose, a trust includes a custodial account or a separate tax favored account maintained by an insurance company that is treated as a trust under section 401(f) or under section 457(g)(3) of the Code. While any portion of the assets of the fund are invested in such a group trust, such group trust is itself adopted as a part of the system or plan.

1.

Any collective or common group trust to which assets of the fund are transferred pursuant to subsection j. shall be adopted by the board as part of the plan by executing appropriate participation, adoption agreements, and/or trust agreements with the group trust's trustee.

2.

The separate account maintained by the group trust for the plan pursuant to subsection j. shall not be used for, or diverted to, any purpose other than for the exclusive benefit of the participants and beneficiaries of the plan.

3.

For purposes of valuation, the value of the separate account maintained by the group trust for the plan shall be the fair market value of the portion of the group trust held for the plan, determined in accordance with generally recognized valuation procedures.

(3)

At least once every three years, and more often as determined by the board, the board shall retain a professionally qualified independent consultant, as defined in F.S. § 175.071, to evaluate the performance of all current investment managers and make recommendations regarding the retention of all such investment managers. These recommendations shall be considered by the board at its next regularly scheduled meeting. The date, time, place, and subject of this meeting shall be advertised in the same manner as for any meeting of the board.

For purposes of this paragraph (3), the term "professionally qualified independent consultant" means a consultant who, based on education and experience, is professionally qualified to evaluate the performance of professional money managers, and who, at a minimum:

a.

Provides his or her services on a flat-fee basis.

b.

Is not associated in any manner with the money manager for the fund.

c.

Make calculations according to the American Banking Institute method of calculating time-weighted rates of return. All calculations must be made net of fees.

d.

Has three or more years of experience working in the public sector.

(4)

The board may retain in cash and keep unproductive of income such amount of the fund as it may deem advisable, having regard for the cash requirements of the system.

(5)

Neither the board nor any trustee shall be liable for the making, retention or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the fund, except that due to his or her or its own negligence, willful misconduct or lack of good faith.

(6)

The board may cause any investment in securities held by it to be registered in or transferred into its name as trustee or into the name of such nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the fund.

(7)

The board is empowered, but is not required, to vote upon any stocks, bonds, or securities of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations, consolidations, and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust or any protective or like committee with the trustees or with depositories designated thereby; to amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally to exercise any of the powers of an owner with respect to stocks, bonds, or other investments comprising the fund which it may deem to be to the best interest of the fund to exercise.

(8)

The board shall not be required to make any inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power contained herein.

(9)

Where any action which the board is required to take or any duty or function which it is required to perform either under the terms herein or under the general law applicable to it as trustee under this ordinance, can reasonably be taken or performed only after receipt by it from a participant, the city, or any other entity, of specific information, certification, direction or instructions, the board shall be free of liability in failing to take such action or perform such duty or function until such information, certification, direction or instruction has been received by it.

(10)

Any overpayments or underpayments from the fund to a participant, retiree or beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the board in such a manner that the actuarial equivalent of the benefit to which the participant, retiree or beneficiary was correctly entitled, shall be paid. Overpayments shall be charged against payments next succeeding the correction or collected in another manner if prudent. Underpayments shall be made up from the fund in a prudent manner.

(11)

The board shall sustain no liability whatsoever for the sufficiency of the fund to meet the payments and benefits provided for herein.

(12)

In any application to or proceeding or action in the courts, only the board shall be a necessary party, and no participant or other person having an interest in the fund shall be entitled to any notice or service of process. Any judgment entered in such a proceeding or action shall be conclusive upon all persons.

(13)

Any of the foregoing powers and functions reposed in the board may be performed or carried out by the board through duly authorized agents, provided that the board at all times maintains continuous supervision over the acts of any such agent; provided further, that legal title to said fund shall always remain in the board.

(Ord. No. 02-2005, § 1, 2-7-2005; Ord. No. 20-2010, § 4, 10-18-2010; Ord. No. 03-2013, § 2, 2-4-2013; Ord. No. 16-2013, § 3, 11-18-2013; Ord. No. 17-2016, § 3, 5-16-2016)