OCEAN CITY-WRIGHT FIRE CONTROL DISTRICT RETIREMENT BOARD MEETING

MONDAY, MARCH 6, 2018 8:00 A.M.

233 RACETRACK ROAD N.E. FORT WALTON BEACH, FLORIDA

AGENDA

1. Approve Agenda

2. Public Comments

3. Approve Minutes from November 28, 2017

4. Approve Minutes from December 11, 2017

5. Approve Minutes from February 6, 2018

6. Review of Reports – AndCo, Foster & Foster, Bowen & Haynes, asapplicable.

7. Legislative Updates

8. Approve Restatement of Plan

9. Approve Summary Plan Description

10. Approve Actual Administrative Expenses FY 2016-17

11. Approve Foster & Foster Second Addendum Actuarial Services Agreement

12. Adjournment

OCEAN CITY-WRIGHT FIRE CONTROL DISTRICT RETIREMENT BOARD MINUTES

November 28, 2017

The Retirement Board meeting for the Ocean City-Wright Fire Control District was called to order by Charles Darr at 8:00 a.m. in the Training Room of the Ocean City-Wright Fire Department.

Present: Charles Darr, Jeffrey Wagner, Jennifer Benedict, Tyler Grumbles and Jason Franken, Drew Ballard and David Kelly

Absent: Clint Aden, Payne Walker, Lee Dehner

Approve Minutes from August 29, 2017 Motion: Jeffrey Wagner Second: Jennifer Benedict Vote: Unanimous

Amend Agenda to Appoint New Elected Member Motion: Jennifer Benedict Second: Jeffrey Wagner Vote: Unanimous

Public Comments No Comments

Review of Reports Tyler presented AndCo reports. David presented Bowen & Haynes report thru 11/21/2018. The current return fiscal YTD is 2.4%. Fiscal year 2016-17 return was 16.9%. Drew Ballard presented the Foster & Foster Actuarial Valuation for FY ending 9/30/2017.

Motion: Jennifer Benedict made the motion to accept F&F 2016-17 Valuation. Second: Jeff Wagner Vote: Unanimous

Legislative Updates In Lee Dehner’s absence, Stuart Kaufman, from Klausner, Kaufman, Jensen & Levinson advised the next session begins in January. There is upcoming case law regarding entities claiming financial urgency and how it affects pension plans.

Present October 1, 2017 Actuarial Valuation Duplicate agenda item.

Appoint Representative to Joint Committee for Legal Representation After notification of transfer of Legal representation, several local area boards had one member complete information gathering on Law firms experienced in Pension plans. The agencies

involved concluded to form a joint committee for further assessment to keep costs low for all departments involved. Stuart Kaufman presented information about his firm and the transfer from Lee Dehner and that 2 of the 5 departments have signed on with them. Jennifer made a request to continue with the joint committee appointment in case the committee was continued. A special meeting will be held in December to decide on the firm. Motion: Jeff Wagner made the motion to appoint Jennifer to the committee. Second: Jennifer Benedict Vote: Unanimous

Discussion of Legal Representation- Lee Dehner

Lee was absent and Klausner group presented in previous agenda #6.

Restatement of Plan Drew Ballard asked if a definition should be updated in the restatement prior to approval. This item has been tabled until the March Meeting so that the information can be verified.

Approve Summary Plan Description This item has been tabled until March Meeting due to same question in agenda Item #8.

Approve 2018 Meeting Dates

March 6, June 5, August 28, December 4, 2018 Motion: Jeff Wagner made the motion to accept the 2018 meeting dates Second: Jennifer Benedict Vote: Unanimous

Appointment of Newly Elected Member This item was tabled until next meeting due to lack of quorum.

Public Comments None

ADJOURNMENT

Motion: Jennifer Benedict made the motion to adjourn the meeting at 9:00. Second: Jeffrey Wagner Vote: Unanimous

OCEAN CITY-WRIGHT FIRE CONTROL DISTRICT RETIREMENT BOARD MINUTES

December 11, 2017

The Retirement Board meeting for the Ocean City-Wright Fire Control District was called to order by Jeff Wagner at 8:07 a.m. in the Training Room of the Ocean City-Wright Fire Department. Present: Jeffrey Wagner, Jennifer Benedict, Payne Walker, Clint Aden & Lee Dehner (by

phone) Absent:

Approve Agenda

Motion: Jennifer Benedict Second: Clint Aden Vote: Unanimous

Public Comments No Comments

Affirmation of Member Elected Trustee Members of the Pension Plan elected Bradley Sasser. He will replace the seat previously held by Charles Darr Motion: Jennifer Benedict Second: Clint Aden Vote: Unanimous

Election of Officers Motion: Payne Walker made the motion nominating Jeff Wagner as Chairman of the

Board Second: Brad Sasser Vote: Unanimous Motion: Payne Walker made the motion nominating Clint Aden as Vice Chairman Second: Brad Sasser Vote: Unanimous

Discussion & Action regarding Legal Representation for the Plan Discussion regarding Klausner Group or Lewis Group as representing the plan. Motion: Payne Walker made the motion to accept the assignment of our legal contract to

Klausner, Kaufman, Jensen, & Levinson. Second: Clint Aden Vote: Unanimous

Ordinance 2017-13-Statute 112.66/Senate Bill 1128 Effective 2014. Motion: Jennifer Benedict made the motion to recommend to Ocean City Wright Fire

Control Board of Fire Commissioners the change to the plan as required by the Florida Statute 112.66/Senate Bill 1128.

Second: Brad Sasser Vote: Unanimous

Public Comments None

ADJOURNMENT

Motion: Jennifer Benedict made the motion to adjourn the meeting at 8:34. Second: Brad Sasser Vote: Unanimous

OCEAN CITY-WRIGHT FIRE CONTROL DISTRICT RETIREMENT BOARD SPECIAL MEETING MINUTES

February 6, 2018

The Retirement Board meeting for the Ocean City-Wright Fire Control District was called to order by Jeff Wagner at 8:10 a.m. in the Training Room of the Ocean City-Wright Fire Department. Present: Jeffrey Wagner, Jennifer Benedict, Payne Walker, Clint Aden, Brad Sasser and

Paul Daragjati attended by phone. Absent:

Approve Agenda

Motion: Clint Aden Second: Payne Walker Vote: Unanimous

Public Comments No Comments

Discussion & Action regarding representation for Disability Cases

Mr. Daragjati advised the board that it would be best if the board obtained separate counsel for the upcoming full disability hearings. He suggested and presented a resume for Phillip M. Vogelsang. He advised that Mr. Vogelsang agreed to $185/hr up to a max of 40 hours per case. Motion: Payne Walker made the motion to retain Mr. Vogelsang to handle the disability

cases. Second: Jennifer Benedict Vote: Unanimous

Public Comments None

ADJOURNMENT

Motion: Jennifer Benedict made the motion to adjourn the meeting at 8:22. Second: Brad Sasser Vote: Unanimous

OCEAN CITY-WRIGHT FIRE CONTROL DISTRICT FIREFIGHTERS' PENSION TRUST FUND

SUMMARY PLAN DESCRIPTION

March 1, 2018

IS YOUR BENEFICIARY FORM CURRENT? IN THE EVENT YOU DIE, YOUR BENEFIT ORCONTRIBUTIONS WILL BE DISTRIBUTED TO THE PERSON OR PERSONS DESIGNATED BYNAME ON THE BENEFICIARY FORM ON FILE WITH THE PENSION PLAN. NO PROVISION INYOUR LAST WILL AND TESTAMENT WILL CHANGE THIS SELECTION. PLEASE BE SURE THATYOUR BENEFICIARY FORM DESIGNATES THE PERSON OR PERSONS YOU INTEND TO RECEIVEYOUR BENEFITS AND THAT YOU REVIEW THIS CHOICE IN THE EVENT OF A MAJOR LIFECHANGE SUCH AS A DIVORCE OR THE DEATH OF YOUR BENEFICIARY.

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OCEAN CITY-WRIGHT FIRE CONTROL DISTRICT FIREFIGHTERS' PENSION TRUST FUND

SUMMARY PLAN DESCRIPTION

INTRODUCTION

The Board of Trustees of the Ocean City-Wright Fire Control District Firefighters' PensionTrust Fund is pleased to present this booklet which briefly explains the provisions of yourFirefighters' Pension Plan. As a participant in the Fund, you are included in a program of benefitsto help you meet your financial needs at retirement, or in the event of disability or death.

This booklet can assist you in preparing for your retirement and financial future. If you needfurther information on any of the topics presented in this booklet, please contact any member of theBoard of Trustees. They will either answer questions you might have to help you understand yourbenefits or otherwise get you an answer to your questions. We urge you to read and understand thisbooklet in order to become familiar with the benefits of the plan and how they contribute to yourfinancial security and how they will enrich your retirement years.

The information presented is only a summary of the pension plan ("Plan") as provided in theordinances of the Ocean City-Wright Fire Control District. If there are any conflicts between theinformation in this booklet and the ordinances of the Ocean City-Wright Fire Control District, theordinances shall govern. The provisions of this Summary Plan Description shall not constitute acontract between the Member and the Board of Trustees. The Plan shall be administered inaccordance with state and federal law, notwithstanding any provisions in this booklet or ordinancesto the contrary. A copy of the ordinance establishing the Plan can be obtained from the Districtoffice, which is located at 2 Racetrack Road, N.E., Ft. Walton Beach, Florida 32547.

Chairman, Board of Trustees, Ocean City-Wright Fire Control District Firefighters'Pension Trust Fund

Date

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1. BOARD OF TRUSTEES AND PLAN ADMINISTRATION

A. Administration.

(1) The Ocean City-Wright Fire Control District Firefighters' PensionTrust Fund is a defined benefit pension plan administered by a Boardof Trustees which acts as the administrator of the Plan. The Boardconsists of 5 Trustees, 2 of whom shall be legal residents of theDistrict who are appointed by the District Board of FireCommissioners, 2 of whom are Members of the Plan who are electedby a majority of the Firefighters who are Members of the Plan and afifth Trustee who is chosen by a majority of the first 4 Trustees. EachTrustee serves a four year term.

(2) DROP participants can be elected as but not vote for elected Trustees.

B. The names and addresses of the current Trustees are attached to this SummaryPlan Description as Exhibit "A". The Chairman of the Board is designated as agent for the serviceof legal process.

2. ELIGIBILITY FOR PLAN MEMBERSHIP

Each person employed by the District Fire Department, except those who opt out ofthe Plan, as a full-time Firefighter, except for those who elect to opt out of the Plan, becomes amember of the Plan as a condition of his employment. All Firefighters are therefore eligible for planbenefits as provided for in the plan document and by applicable law.

3. PLAN BENEFITS

All claims for benefits under the Plan shall be made in writing to the Board.

A. Normal Retirement Eligibility. You are eligible for retirement upon the earlierof the attainment of age 50 and the completion of 25 years of credited service or the attainment ofage 55 and the completion of 10 years of credited service.

B. Amount of Normal Retirement Benefits. The amount of the normal retirementbenefit is based on your credited service and average final compensation:

"Credited Service" is generally your period of employment as a Firefighter inthe Fire Department measured in years and parts of years. Credited service will include credit forup to five years for a break in employment for military service, pursuant to conditions provided forunder state or federal law, provided that you are reemployed within 1 year of discharge underhonorable conditions. Additional credited service time may also be available (See subsection L.below).

"Average Final Compensation" is 1/12 of your average salary of the 3 bestyears of the last 5 years of credited service prior to your termination, retirement or death or yourcareer average as a full-time firefighter, whichever is greater. If you were hired on or after October1, 2014, “Average Final Compensation” is 1/12 of the annual average base pay plus Paramedic orEMT incentive pay. A year is defined as 12 consecutive months.

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"Salary" is the total compensation for services you rendered to the District asa Firefighter reportable on your W-2 form plus all tax deferred, tax sheltered, or tax exempt itemsof income derived from elective employee payroll deductions or salary reductions. For serviceearned on or after October 1, 2014, Salary shall not include more than three hundred (300) hours ofovertime per calendar year. Provided however, in any event, payments for overtime in excess ofthree hundred (300) hours per year accrued as of October 1, 2014 and attributable to service earnedprior to the October 1, 2014, may still be included in Salary for pension purposes even if the paymentis not actually made until on or after October 1, 2014. In any event, with respect to unused sick leaveand unused annual leave accrued prior to October 1, 2014, Salary will include the lesser of theamount of sick or annual leave time accrued on October 1, 2014 or the actual amount of sick orannual leave time for which the retiree receives payment at the time of retirement, regardless ofwhether the amount of sick or annual leave was, at some time prior to retirement, reduced below theamount on October 1, 2014.

The normal retirement benefit is calculated by multiplying 3%, times yearsof credited service times your average final compensation: (3%xCSxAFC = normal retirementbenefit).

Normal and early retirement payments will commence on the first day of themonth coincident with or next following your last day of employment. Early retirees may defer thecommencement of benefits. The benefit is paid to you for your life, but you or your beneficiary shallreceive at least 120 monthly benefit payments in any event.

Each vested Plan Member shall be entitled, at the Fund's expense, to receivetwo actuarial studies (one preliminary and one final) to estimate his or her retirement benefits. Anyadditional studies shall be provided only at the Member's expense.

C. Early Retirement. You are eligible for early retirement upon the attainmentof age 50 and the completion of 10 years of credited service.

D. Amount of Early Retirement Benefits. The amount of the early retirementbenefit is calculated in the same manner as for normal retirement and is available as follows:

(1) Beginning on the date on which you would have qualified for normalretirement; or

(2) Beginning immediately upon retirement, but if beginningimmediately, the amount of the monthly benefit is reduced by 3% foreach year by which the commencement of benefits precedes the datewhich would have been your normal retirement date determinedbased upon your actual years of credited service.

E. Supplemental Benefit. All current and future Normal and Early Retirees, theirjoint pensioners and beneficiaries (not Vested Terminated Persons, Disability Retirees, or Pre-Retirement Death Beneficiaries) shall receive a supplemental monthly benefit in an amount equalto $10.00 for each year of Credited Service commencing upon Retirement and ceasing at the earlierof death or age 65.

F. Supplemental Benefit - Share Plan. Pursuant to Florida law, a separatemember “share account” has been created for each member of the plan. This supplemental benefitmay or may not be funded and thus, you may or may not receive a retirement benefit from the shareplan. If the share plan is funded, at retirement, termination (vested), disability or death, there shallbe an additional benefit paid to you. The share plan is funded solely with state premium tax moneyand the funding that is received for this Share Plan is allocated to your share account based on a

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formula which gives you an allocation based on your years of credited service or another formulato be determined. Your share account receives its proportionate share of the income or loss on theassets in the plan.

G. Other Retirement Options: At retirement, certain additional options areavailable as follows:

(1) Optional Forms of Retirement. In lieu of the amount and form ofretirement income payable under normal and early retirement, youmay elect to receive a retirement benefit in a different form so longas the form you elect is of equal actuarial value as the normal benefit. The optional forms of benefits which are available are:

(a) A retirement income of a monthly amount payable to you foryour lifetime only.

(b) A retirement income of a modified monthly amount, payableto you during your lifetime and following your death, 100%,75%, 66 2/3% or 50% of such monthly amount payable to ajoint pensioner for his lifetime. Except where the jointpensioner is your spouse, the payments to the joint pensioneras a percentage of the payments to you will not exceed theapplicable percentage provided for in the applicable table inthe Treasury regulations.

(c) If you retire prior to the time at which social security benefitsare payable, you may elect to receive an increased retirementbenefit until such time as social security benefits shall beassumed to commence and a reduced benefit thereafter inorder to provide, to as great an extent as possible, a morelevel retirement allowance during the entire period ofretirement.

(2) Deferred Retirement Option Plan (DROP).

(a) If you become eligible for normal retirement, and are stillemployed by the District as a firefighter, you have the optionof "retiring" from the pension plan but continuing youremployment as a firefighter for an additional five years. Anelection to participate in the DROP constitutes an irrevocableelection to resign from the service of the District not later than5 years from the commencement of DROP participation. Youmust request, in writing, to enter the DROP.

(b) Upon entering the DROP, your retirement benefit isimmediately calculated and each monthly benefit payment isdeposited into your DROP account. You may elect to eitherhave your account credited with interest at the rate of 6.5%per annum or credited or debited with an investment return orloss equal to the net investment return realized by the Systemfor that quarter. One change in election is permitted.

(c) At the time of termination of employment at the end of theDROP period, you will receive your account balance in a

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lump sum and you will also begin receiving your monthlyretirement benefit.

(d) Once you enter the DROP, you are no longer eligible fordisability or pre-retirement death benefits, nor do you accrueany additional credited service. Your retirement benefit isfixed as of your entry date. You pay no member contributionsto the plan once you enter the DROP.

(e) Participation in the DROP is not a guarantee of employmentand DROP participants shall be subject to the sameemployment standards and policies that are applicable toemployees who are not DROP participants.

(f) Additional information about the DROP can be obtained fromthe Board.

H. Disability Retirement. You are considered disabled when you become totallyand permanently unable to perform useful and efficient service as a Firefighter. A writtenapplication is made to the Board for a disability pension and the Board receives evidence of thedisability and decides whether or not the pension is to be granted. If the pension is granted, thebenefit amount shall be:

(1) If the injury or disease is service connected, a benefit equal to 3% ofyour average final compensation multiplied by the total years ofcredited service, but in any event your minimum in line of dutydisability benefit shall be 42% of your average final compensation.

(2) If the injury or disease is not service connected, a benefit equal to 3%of your average final compensation multiplied by the total years ofcredited service This non-service connected benefit is only availableif you have at least 10 years of credited service.

Eligibility for disability benefits. Subject to (4) below, you must be an activemember of the plan on the date the Board determines your entitlement to a disability benefit.

(1) Terminated persons, either vested or non-vested, are not eligible fordisability benefits.

(2) If you voluntarily terminate your employment either before or afterfiling an application for disability benefits, you are not eligible fordisability benefits.

(3) If you are terminated by the District for any reason other than formedical reasons, either before or after you file an application fordisability benefits, you are not eligible for disability benefits.

(4) The only exception to (1) above is:

(a) If you are terminated by the District for medical reasons andyou have already applied for disability benefits before themedical termination, or;

(b) If you are terminated by the District for medical reasons andyou apply within 30 days after your medical termination date.

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If either (4)(a), or (4)(b) above applies, your application will beprocessed and fully considered by the board.

Your disability benefit terminates upon the earlier of death, with 120 paymentsguaranteed, or recovery. You may, however, select a "life only" or "joint and survivor" optionalform of benefit as described above under "Optional Forms of Retirement".

Your benefit will be reduced if you receive workers' compensation benefitsand your combined benefit exceeds 100% of your final salary. The pension benefit will be reducedso that the total does not exceed 100%, except that the pension benefit shall not be reduced belowthe greater of 42% of average final compensation or 2.75% of average final compensation timesyears of credited service.

Any condition or impairment of health caused by hypertension or heart diseaseresulting in death or total and permanent disability is presumed to have been suffered in the line ofduty unless the contrary is shown by competent evidence; provided that you have successfully passeda physical examination on entering into service and there is no evidence of the condition at that time.

For conditions diagnosed on or after January 1, 1996, if you suffer a conditionor impairment of health that is caused by hepatitis, meningococcal meningitis, or tuberculosis, whichresults in total and permanent disability, it shall be presumed that the disability is in the line of duty,unless the contrary is shown by competent evidence as provided for in Section 112.181, FloridaStatutes; provided that the statutory conditions have been met.

To receive disability benefits, you must establish to the satisfaction of theBoard, that such disability was not occasioned primarily by:

(1) Excessive or habitual use of any drugs, intoxicants or narcotics.

(2) Injury or disease sustained while willfully and illegally participatingin fights, riots or civil insurrections or while committing a crime.

(3) Injury or disease sustained while serving in any branch of the ArmedForces.

(4) Injury or disease sustained after your employment as a Firefighterwith the Ocean City-Wright Fire Control District shall haveterminated.

As a disabled pensioner, you are subject to periodic medical examinations asdirected by the Board to determine whether a disability continues. You may also be required tosubmit statements from your doctor, at your expense, confirming that your disability continues.

I. Death Before Retirement. If you die prior to retirement from the FireDepartment, your beneficiary shall receive the following benefit:

(1) Prior to Vesting or Eligibility for Retirement. If you were notreceiving monthly benefits or were not yet vested or eligible for earlyor normal retirement, your beneficiary shall receive a refund of 100%of your accumulated contributions.

(2) Deceased Members Vested or Eligible for Retirement with Spouse asBeneficiary. If you die and, at the date of your death were vested or

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eligible for early or normal retirement, your spouse beneficiary shallbe entitled to a benefit as follows:

(a) If you were vested, but not eligible for normal or earlyretirement, your spouse beneficiary shall receive a benefitpayable for 10 years, beginning on the date that you wouldhave been eligible for early or normal retirement, at the optionof your spouse beneficiary. The benefit shall be calculated asfor normal retirement based on your credited service andaverage final compensation as of the date of your death andreduced as for early retirement, if applicable. Your spousebeneficiary may also elect to receive an immediate benefit,payable for 10 years, which is actuarially reduced to reflectthe commencement of benefits prior to your early retirementdate.

(b) If you were eligible for normal or early retirement, yourspouse beneficiary shall receive a benefit payable for 10years, or if elected within 6 months of your death for the lifeof the spouse beneficiary on an actuarially equivalent basis, beginning on the first day of the month following your deathor at your otherwise normal retirement date, at the option ofyour spouse beneficiary. If no election is made for a benefitpayable for life then the benefit will be payable for 10 years. The benefit shall be calculated as for normal retirement basedon your credited service and average final compensation as ofthe date of your death and reduced as for early retirement, ifapplicable.

(c) Your spouse beneficiary may not elect an optional form ofbenefit, except as provided for in subsection (b), above,however, the Board may elect to make a lump sum paymentif the total commuted value of benefit is less than $1,000.00.

(d) Your spouse beneficiary may, in lieu of any benefit providedfor in (a) or (b) above, elect to receive a refund of youraccumulated contributions.

(e) If your spouse beneficiary commences receiving a benefitunder (a) or (b) above, but dies before all payments are made, the remaining benefit shall be paid to the estate of the spousebeneficiary.

(3) Deceased Members Vested or Eligible for Retirement with Non-Spouse Beneficiary. If your beneficiary is not your spouse, thebenefits payable to your non-spouse beneficiary are the same as thoseto a spouse beneficiary, however, the date of commencement of thosebenefits may be required to be earlier, with the resulting reduction inthe amount.

J. Termination of Employment and Vesting.

(1) If you were hired prior to October 1, 2014 and your employment isterminated, either voluntarily or involuntarily, the following benefitsare payable:

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(a) If you have less than 7 years of credited service upontermination, you shall be entitled to a refund of the moneyyou have contributed or you may leave it deposited with theFund.

(b) If you have 7 or more years of credited service upontermination, you shall be entitled to a monthly retirementbenefit. The benefit shall be determined in the same manneras for normal or early retirement and shall be based upon yourcredited service, average final compensation and the benefitaccrual rate as of the date of termination. The benefit shall bepayable to you starting at your otherwise normal or earlyretirement date, determined based upon your actual years ofcredited service provided you do not elect to withdraw yourcontributions and provided you survive to your otherwisenormal or early retirement date. If you do not withdraw youraccumulated contributions and do not survive to yourotherwise normal or early retirement date, your designatedbeneficiary shall be entitled to a benefit as provided herein fora deceased member, vested or eligible for retirement underDeath Before Retirement.

(2) If you were hired on or after October 1, 2014 and your employmentis terminated, either voluntarily or involuntarily, the followingbenefits are payable:

(a) If you have less than 10 years of credited service upontermination, you shall be entitled to a refund of the moneyyou have contributed or you may leave it deposited with theFund.

(b) If you have 10 or more years of credited service upontermination, you shall be entitled to a monthly retirementbenefit. The benefit shall be determined in the same manneras for normal or early retirement and shall be based upon yourcredited service, average final compensation and the benefitaccrual rate as of the date of termination. The benefit shall bepayable to you starting at your otherwise normal or earlyretirement date, determined based upon your actual years ofcredited service provided you do not elect to withdraw yourcontributions and provided you survive to your otherwisenormal or early retirement date. If you do not withdraw youraccumulated contributions and do not survive to yourotherwise normal or early retirement date, your designatedbeneficiary shall be entitled to a benefit as provided herein fora deceased member, vested or eligible for retirement underDeath Before Retirement.

The Internal Revenue Code provides that certain eligible lump sumdistributions from the pension plan may be directly rolled over into qualified individual retirementaccounts, annuities or certain other pension plans. A 20% withholding shall be required on taxableportions of such lump sum distributions not directly transferred to a new custodian.

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K. Reemployment After Retirement. If you retire under normal or earlyretirement and wish to be reemployed by the District, you should be aware that your ability tocontinue to receive your pension benefit upon reemployment may be restricted.

L. Additional Credited Service. In addition to credited service actually earnedin the employment of the Fire Department, you may also receive credited service as follows:

(1) "Buy-Back" for Prior Fire Service. The time that you previouslyserved as a firefighter with the Ocean City-Wright Fire ControlDistrict during a period of previous employment and for whichperiod accumulated contributions were withdrawn from the Fundshall be added to your years of credited service provided that withinthe first 90 days of your reemployment you pay into the Plan thewithdrawn contributions with interest.

If, after 90 days from your reemployment you have failed to purchasecredited service pursuant to the previous paragraph or if you servedas a full-time paid firefighter for any other municipal, county orspecial district fire department in the United States, you will receivecredited service only if:

(a) You contribute to the Fund a sum equal to:

(i) the amount that you would have contributed to thePlan, based on your salary and the membercontribution rate in effect at the time that the creditedservice is requested, had you been a member of the Plan for the time for which you are requesting credit,plus

(ii) an additional amount to be determined by the Board'sactuary so that there is no cost to the Plan in givingyou the additional years of credited service, plus

(iii) the amount charged by the actuary for determining theamount you must contribute.

(b) Multiple requests to purchase credited service may be madeat any time prior to retirement.

(c) Payment of the required amount shall be made within 6months of your request for credit, but not later than yourretirement date, and shall be made in one lump sum paymentupon receipt of which credited service shall be given.

(d) The maximum credit under this subsection for service otherthan with the Ocean City-Wright Fire Control District, whencombined with credited service purchased for military serviceprior to employment, shall be five (5) years of credited serviceand shall count for all purposes, except vesting and eligibilityfor not-in-line of duty disability benefits. There shall be nomaximum purchase of credit for prior service with the OceanCity-Wright Fire Control District and such credit shall countfor all purposes, including vesting.

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(e) In no event, however, may credited service be purchasedpursuant to this subsection for prior service with any othermunicipal, county or special district fire department, if suchprior service forms or will form the basis of a retirementbenefit or pension from a different employer's retirementsystem or plan.

(2) "Buy-Back" of Time Lost Due to Absences Authorized by the Familyand Medical Leave Act. If you are absent on unpaid leave under theFamily & Medical Leave Act, you may purchase lost credited serviceby making an actuarially determined contribution to the Plan, suchthat there is no cost to the Plan in allowing such credited service,within strict time periods provided for in the plan document.

(3) "Buy-Back" for Military Service Prior to Employment. The time thatyou serve or have served on active duty in the military service of theArmed Forces of the United States, the United States MerchantMarine or the United States Coast Guard, voluntarily or involuntarilyand honorably or under honorable conditions, prior to first and initialemployment with the Ocean City-Wright Fire Control District shallbe added to your years of credited service provided that:

(a) You contribute to the Fund a sum equal to:

(i) the amount that you would have contributed to thePlan, based on your salary and the membercontribution rate in effect at the time that the creditedservice is requested, had you been a member of the Plan for the years or fractional parts of years for whichyou are requesting credit, plus

(ii) an additional amount to be determined by the Board'sactuary so that there is no cost to the Plan in givingyou the additional years of credited service, plus

(iii) the amount charged by the actuary for determining theamount you must contribute.

(b) Multiple requests to purchase credited service may be madeat any time prior to retirement.

(c) Payment of the required amount shall be made within 6months of your request for credit, but not later than yourretirement date, and shall be made in one lump sum paymentupon receipt of which credited service shall be given.

(d) The maximum credit under this subsection, when combinedwith credited service purchased for prior fire service with anemployer other than the Ocean City-Wright Fire ControlDistrict, shall be 5 years and shall count for all purposesexcept vesting and eligibility for not-in-line of duty disabilitybenefits.

(4) Rollovers or Transfers of Funds to Purchase Service. In the event youare eligible to purchase additional credited service as provided above,

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you may be eligible to rollover or transfer funds from anotherretirement program in which you participate (traditional IRA,deferred compensation plan maintained by a government employer457 plan, 401k plan, profit sharing plan, defined benefit plan, moneypurchase plan, annuity plan or tax sheltered annuity) in order to payall or part of the cost of purchasing such additional credited service.

M. Contributions and Funding. The District is paying the portion of the cost ofthe pension plan over and above your contributions and all or a portion of amounts received fromthe state insurance rebates pursuant to a mutual consent agreement between the District and theUnion. You contribute 7% of your salary to the Fund. Your contribution will be excluded from yourgross income for withholding purposes so you will realize income tax benefits.

N. Maximum Benefits. In no event will the annual benefits paid from this Planexceed $220,000 annually, subject to certain cost of living adjustments and actuarial reductions,under certain circumstances, prior to age 62 as set forth in Section 415 of the Internal Revenue Code.

If you began participation for the first time on and after January 1, 1980, youcannot receive a benefit in excess of 100% of your average final compensation. If you beganparticipation prior to this date, you are not subject to the 100% limitation.

You cannot receive a benefit in excess of 100% of your average finalcompensation.

O. Forfeiture of Pension. If you are convicted of the certain crimes listed in theplan document committed prior to retirement, or if your employment is terminated by reason of youradmitted commission, aid or abetment of these crimes, you shall forfeit all rights and benefits underthe Plan, except for the return of your contributions as of the date of your termination.

P. Conviction and Forfeiture; False, Misleading or Fraudulent Statements. Itis unlawful for you to willfully and knowingly make, or cause to be made, or to assist, conspire with,or urge another to make, or cause to be made, any false, fraudulent, or misleading oral or writtenstatement or withhold or conceal material information to obtain any benefit from the Plan.

If you violate the previous paragraph, you commit a misdemeanor of the firstdegree, punishable as provided in Section 775.082 or Section 775.083, Florida Statutes.

In addition to any applicable criminal penalty, upon conviction for a violationdescribed above, you or your beneficiary may, in the discretion of the Board, be required to forfeitthe right to receive any or all benefits to which you would otherwise be entitled under the Plan. Forpurposes of this subsection, "conviction" means a determination of guilt that is the result of a pleaor trial, regardless of whether adjudication is withheld.

Q. Claims Procedure Before the Board. You may request, in writing, that theBoard review any claim for benefits under the Plan. The Board will review the case and enter adecision as it deems proper within not more than 180 days from the date of the receipt of suchwritten request, or in the case of a disability claim, from receipt of a medical release and completedinterrogatories. The time period may be extended if you agree to the extension.

The Board's decision on your claim will be contained in an order which willbe in writing and will include:

(1) The specific reasons for the Board's action;

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(2) A description of any additional information that the Board feels isnecessary for you to perfect your claim;

(3) An explanation of the review procedure next open to you whichincludes a formal evidentiary hearing.

4. NON-FORFEITURE OF PENSION BENEFITS

A. Liquidation of Pension Fund Assets. In the event of repeal, or if contributionsto the Fund are discontinued by the District, there will be a full vesting of benefits accrued to dateof repeal.

B. Interest of Members in Pension Fund. At no time prior to the satisfaction ofall liabilities under the Plan shall any assets of the Plan be used for any purpose other than for theFirefighters' exclusive benefit. In any event, your contributions to the Plan are non-forfeitable.

5. VESTING OF BENEFITS

If you were hired prior to October 1, 2014, your retirement benefits are vested after7 years of credited service.

If you were hired on or after October 1, 2014, your retirement benefits are vestedafter 10 years of credited service.

6. APPLICABLE LAW

The Plan is governed by certain federal, state and local laws, including, but notlimited to the following:

A. Internal Revenue Code and amendments thereto.

B. Chapter 175, Florida Statutes, "Municipal Firefighters' Retirement TrustFunds".

C. Part VII, Chapter 112, Florida Statutes, "Actuarial Soundness of RetirementSystems".

D. Ordinances of the Ocean City-Wright Fire Control District.

E. Administrative rules and regulations adopted by the Board of Trustees.

7. PLAN YEAR AND PLAN RECORDS

The plan year begins on October 1 of each year and ends on September 30 of thefollowing year. All records of the Plan are maintained on the basis of the plan year.

8. APPLICABLE PROVISIONS OF COLLECTIVE BARGAININGAGREEMENTS

There is a current collective bargaining agreement between the District and theFirefighters. Pension benefits are bargainable.

9. FINANCIAL AND ACTUARIAL INFORMATION

A. A report of pertinent financial and actuarial information on the solvency andactuarial soundness of the Plan has been prepared by the Pension Plan'sactuary, Foster & Foster, Inc., and is attached as Exhibit "B".

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B. A copy of the detailed accounting report of the plan's expenses for the fiscalyear is available for review upon request to the Board Secretary.

C. A copy of the administrative expense budget for the plan, for each fiscal yearis available for review upon request to the Board Secretary.

10. DIVORCE OR DISSOLUTION OF MARRIAGE

Federal and state law provides certain restrictions regarding the payment of yourpension benefits in the event of your divorce or dissolution of marriage. Immediately upon yourinvolvement in such a legal proceeding, you should provide a member of the Board with the nameand address of your attorney or your name and address if you have no attorney. The Board's attorneywill then provide you or your attorney with information concerning the legal restrictions regardingyour pension benefits. In addition, a copy of any proposed order must be submitted to the Boardprior to entry by the court. Failure to do so may require you to pay any expenses incurred by theBoard in correcting an improper court order.

11. EX-SPOUSES AS BENEFICIARY OR JOINT PENSIONER

The Florida Legislature has adopted Section 732.703, Florida Statutes. This lawnullifies the designation of your ex-spouse as a Beneficiary or Joint Annuitant / Joint Pensioner onyour pension plan retirement benefits. This law went into effect on July 1, 2012.

After July 1, 2012, if you want your ex-spouse to be a beneficiary or jointannuitant/joint pensioner for your plan benefit, you will have to make that designation AFTER thedissolution of marriage. If you currently have an ex-spouse as a beneficiary or joint annuitant/jointpensioner, and want to keep this designation, you will have to designate the ex-spouse again afterJuly 1, 2012.

To reconfirm your current beneficiary, or to designate a new beneficiary, completea new Designation of Beneficiary Form (PF-3).

To reconfirm your current joint annuitant/joint pensioner, or to designate a new jointannuitant/joint pensioner (if authorized by the current plan provisions), indicate such change on aChange or Confirmation of Designated Joint Annuitant or Joint Pensioner Form (PF-25). Ifnecessary, the plan administrator will submit the new form to the actuary of the plan for recalculationof your benefit. There may be a charge to you to make this change.

To obtain either of the above forms, or if you have any questions, please contact yourplan administrator.

12. EXCLUSION OF HEALTH INSURANCE PREMIUMS FROM INCOME.

When you retire because of disability or have worked to the date you are immediatelyeligible for normal retirement (not early retirement), you can elect to exclude from income,distributions made from your benefit that are used to pay the premiums for accident or healthinsurance or long-term care insurance. The premium can be for coverage for you, your spouse, ordependents. The distribution must be made directly from the plan to the insurance provider usingpension form PF-22 which authorizes the distribution. (This form may be obtained from your planadministrator) You can exclude from income the smaller of the amount of the insurance premiumsor $3,000.00. You can only make this election for amounts that would otherwise be included in yourincome.

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EXHIBIT "A"

BOARD OF TRUSTEES

The names and addresses of the members of the Board of Trustees are:

Chairman: Charlie Darr233 Racetrack Road, N.E.Fort Walton Beach, FL 32547

Vice-Chairman: Clint Aden233 Racetrack Road, N.E.Fort Walton Beach, FL 32547

Secretary:: Jennifer Benedict233 Racetrack Road, N.E.Fort Walton Beach, FL 32547

Member: Payne Walker233 Racetrack Road, N.E.Fort Walton Beach, FL 32547

Member: Jeff Wagner233 Racetrack Road, N.E.Fort Walton Beach, FL 32547