| 1 | A bill to be entitled |
| 2 | An act relating to the City of Orlando Firefighter Pension |
| 3 | Fund, Orange County; amending chapter 23444, Laws of |
| 4 | Florida, 1945, as amended; providing a member with 20 |
| 5 | years or more of service who is involuntarily determined |
| 6 | to be permanently and totally disabled not in the line of |
| 7 | duty the right to elect a normal service retirement under |
| 8 | certain conditions; providing for a change in the accrual |
| 9 | rate for normal retirement benefit; providing for a change |
| 10 | of the accrual rate for line of duty death benefits if |
| 11 | member has completed more than 23.53 years of service; |
| 12 | changing the Back Deferred Retirement Option Program |
| 13 | (DROP) from 36 months to 60 months; revising provisions |
| 14 | relating to DROP accounts; providing that distributions |
| 15 | comply with the Internal Revenue Code; providing for |
| 16 | changes necessary to maintain tax qualification; |
| 17 | authorizing the legislative body of the City of Orlando to |
| 18 | adjust the pension plan to comply with the Internal |
| 19 | Revenue Code and to create a SHARE program or plan to |
| 20 | provide for certain extra benefits; providing that benefit |
| 21 | changes are not retroactive; specifying this act does not |
| 22 | provide additional benefits to certain members and |
| 23 | beneficiaries; providing for retroactive effect; providing |
| 24 | effective dates. |
| 25 |
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| 26 | Be It Enacted by the Legislature of the State of Florida: |
| 27 |
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| 28 | Section 1. Effective July 1, 2009, sections 7, 12, |
| 29 | 14, 21, and 27 of chapter 23444, Laws of Florida, 1945, as |
| 30 | amended, are amended to read: |
| 31 | Section 7. Permanent Disability Pension; Not in Line |
| 32 | of Duty. Each and every active member of the department who |
| 33 | shall become permanently and totally disabled, if said |
| 34 | disability was not directly caused by and attributable to |
| 35 | the performance of duty as a member of the fire department |
| 36 | and was not caused by the member's own imprudence, upon |
| 37 | establishing to the satisfaction of said board that the |
| 38 | member is so permanently and totally disabled, shall be |
| 39 | entitled to a monthly pension as follows: A member with |
| 40 | less than 10 full years of credited service at time of |
| 41 | impairment shall be entitled to receive an amount equal to |
| 42 | 3 percent of the member's average monthly salary for each |
| 43 | year of said credited service, and a member with 10 full |
| 44 | years or more of credited service at time of impairment |
| 45 | shall be entitled to 4 percent of the member's average |
| 46 | monthly salary for each year of said credited service. |
| 47 | However, the monthly pension shall not exceed 60 percent of |
| 48 | the member's average monthly salary as determined herein; |
| 49 | provided, however, that the monthly pension for a member |
| 50 | with more than twenty (20) full years of credited service |
| 51 | at time of impairment may exceed sixty (60) percent and |
| 52 | shall be sixty (60) percent plus four (4) per cent per year |
| 53 | for each year of credited service in excess of twenty (20), |
| 54 | based on such years of credited service, but may not exceed |
| 55 | eighty (80) percent, unless the member has completed 40 |
| 56 | years of credited service in which case the member shall |
| 57 | receive an additional 2 percent per year for each year in |
| 58 | excess of 40 years of credited service. Provided further, a |
| 59 | member with 20 years or more of credited service who is |
| 60 | determined by the board of trustees to be permanently and |
| 61 | totally disabled not in the line of duty, but without |
| 62 | application for not in the line of duty disability |
| 63 | benefits, may within thirty (30) days of such determination |
| 64 | elect in writing to receive the normal retirement benefit |
| 65 | that the member would be entitled to receive based on years |
| 66 | of credited service. Provided, however, the total monthly |
| 67 | benefit shall not exceed 100 percent of the member's |
| 68 | average monthly salary. The phrase "permanently and totally |
| 69 | disabled" shall be construed to mean and include the loss |
| 70 | of one or more limbs, loss of sight in one or both eyes, |
| 71 | loss of hearing in one or both ears and any other condition |
| 72 | which renders the member unfit to perform the required |
| 73 | duties of the member's rank held at the time of impairment. |
| 74 | The average monthly salary shall be determined by computing |
| 75 | the member's average monthly salary for the member's last 3 |
| 76 | years of credited service or for the member's total |
| 77 | credited service if less than 3 years, or by computing the |
| 78 | member's average monthly salary for the five best years of |
| 79 | the last ten years of credited service, whichever amount is |
| 80 | greater. Upon the death of the member on said disability |
| 81 | pension, benefits shall be paid as follows: |
| 82 | (1) If a member has not elected and started receipt of the |
| 83 | Section 34(1)(a) life with ten (10) years certain form of |
| 84 | payment, or the Section 34(1)(b) life only form of payment, or |
| 85 | the Section 34(1)(c) joint pensioner form of payment, benefits |
| 86 | shall be paid pursuant to Section 14, "Benefits Payable Upon |
| 87 | Death of Member", to the surviving spouse and issues under the |
| 88 | age of eighteen (18), or dependent parents, and Section 35(3), |
| 89 | "10 Year Certain Guarantee", if applicable. |
| 90 | (2) If a member has elected and started receipt of the |
| 91 | Section 34(1)(a) life with ten (10) years certain form of |
| 92 | payment and the member has not received 120 monthly payments, |
| 93 | then benefits otherwise payable to the member shall be paid |
| 94 | pursuant to Section 32, "Beneficiaries", for the remainder of |
| 95 | the 120 monthly payments beginning on the first day of the month |
| 96 | immediately following the member's death regardless of the age |
| 97 | of the deceased member. If the firefighter makes this election, |
| 98 | no benefits shall be paid pursuant to Section 14(5)(b) or |
| 99 | Section 14(5)(d) to the surviving spouse, issue in being under |
| 100 | the age of eighteen (18), or dependent parents. Provided |
| 101 | however, the firefighter may designate as beneficiaries the |
| 102 | surviving spouse, issue in being under the age of eighteen (18), |
| 103 | or dependent parents to receive the remainder of the 120 monthly |
| 104 | payments. |
| 105 | (3) If a member has elected and started receipt of the |
| 106 | Section 34(1)(b) life only form of payment, no further payments |
| 107 | shall be made upon the death of the member. |
| 108 | (4) If a member has elected and started receipt of the |
| 109 | Section 34(1)(c) joint pensioner form of payment, benefits shall |
| 110 | be paid as provided therein. |
| 111 |
|
| 112 | Notwithstanding anything that may be to the contrary in |
| 113 | this act, at age 47 a member then receiving benefits under |
| 114 | this section may make the election provided in section |
| 115 | 12(1) or section 12(2) as the case may be and section 18, |
| 116 | all of this act (Laws of Fla. ch. 23444(1945), as amended) |
| 117 | in the manner therein specified, provided he is qualified |
| 118 | by length of service prior to said disability and provided |
| 119 | he makes the election within the 30 day period after |
| 120 | reaching age 47. If the election is exercised in favor of |
| 121 | salary deduction return, the return shall be minus |
| 122 | disability payments paid hereunder. If the election is |
| 123 | exercised, all of the member's rights and the rights of the |
| 124 | surviving spouse and issue and dependent parents under |
| 125 | Section 14 shall cease. |
| 126 | Section 12. Service Requirement for Voluntary Retirement. |
| 127 | (1) Normal Retirement Date. |
| 128 | A member's normal retirement date shall be the first day of |
| 129 | the month coincident with or next following the earlier of the |
| 130 | completion of twenty (20) years of credited service regardless |
| 131 | of age, or attainment of age forty-seven (47) and the completion |
| 132 | of ten (10) years of credited service. Any member may retire on |
| 133 | the first day of any month after the member's normal retirement |
| 134 | date, and each member shall become 100% vested in his accrued |
| 135 | benefit on the member's normal retirement date. Normal |
| 136 | retirement is retirement from employment as a firefighter with |
| 137 | the City of Orlando on or after the normal retirement date. Any |
| 138 | member of the Fire Department who has more than 10 years of |
| 139 | credited service but less than 20 years of credited service and |
| 140 | who is discharged or voluntarily separates from service in the |
| 141 | department thereafter but before attaining age forty-seven (47), |
| 142 | may make an election to receive a monthly pension beginning at |
| 143 | age 47. |
| 144 | (2) Normal Retirement Benefit. |
| 145 | (a) A member of the Fire Department who has more than 10 |
| 146 | or more years of credited service but less than 20 years of |
| 147 | credited service shall be entitled to an amount equal to the |
| 148 | number of the member's years of credited service multiplied by |
| 149 | 2.0% multiplied by the member's average monthly salary. |
| 150 | (b) Any member of the Fire Department who has 20 years or |
| 151 | more of credited service but less than 42.5 40 years of credited |
| 152 | service shall be entitled to a monthly pension of 68% 60% of the |
| 153 | member's average monthly salary plus 3.4% 4% for each year of |
| 154 | credited service in excess of 20 years of credited service but |
| 155 | not to exceed 85% 80%. |
| 156 | (c) Any member of the Fire Department who has completed |
| 157 | 42.5 40 years of credited service shall receive in addition to |
| 158 | the amount specified in subparagraph (b) an additional 2% per |
| 159 | year of credited service for each year in excess of 42.5 40 |
| 160 | years of service; provided, however, the total monthly benefit |
| 161 | shall not exceed 100% of the average monthly salary used in |
| 162 | calculating the member's pension benefit. |
| 163 | (3) Average Monthly Salary shall be determined by |
| 164 | computing the average monthly salary of the member's last three |
| 165 | (3) years of credited service, or by computing the member's |
| 166 | average monthly salary for the five (5) best years of the last |
| 167 | ten (10) years of credited service, whichever amount is greater. |
| 168 | (4) The additional actuarial cost of providing benefits to |
| 169 | members who retire after completing 20 years of credited service |
| 170 | but before attaining age 47 shall be borne by the members. |
| 171 | (5) If the member should die after separation or discharge |
| 172 | before timely electing the pension form of payment or after the |
| 173 | election but before receipt of the pension, no benefit will be |
| 174 | paid under a Section 34(1)(b) life only option or a Section |
| 175 | 34(1)(c) joint pensioner option, and benefits shall be paid |
| 176 | pursuant to Section 14, "Benefits Payable Upon Death of Member", |
| 177 | with the Section 35(2) "10 years certain Guarantee", unless the |
| 178 | member had elected the Section 34(1)(a) life with ten (10) years |
| 179 | certain form of payment. |
| 180 | (6) Upon the death of a member who had started receipt of |
| 181 | a Section 12 pension including a pension credited to the |
| 182 | member's DROP account, benefits shall be paid as follows: |
| 183 | (a) If a member has not elected the Section 34(1)(a) life |
| 184 | with ten (10) years certain form of payment, or the Section |
| 185 | 34(1)(b) life only form of payment, or the Section 34(1)(c) |
| 186 | joint pensioner form of payment, benefits shall be paid pursuant |
| 187 | to Section 14 to the surviving spouse and issues under the age |
| 188 | of eighteen (18), or dependent parents, with Section 35(3), "10 |
| 189 | Year Certain Guarantee", if applicable. |
| 190 | (b) If a member has elected the Section 34(1)(a) life with |
| 191 | ten (10) years certain form of payment and the member has not |
| 192 | received 120 monthly payments, then benefits otherwise payable |
| 193 | to the member shall be paid pursuant to Section 32, |
| 194 | "Beneficiaries", for the remainder of the 120 monthly payments |
| 195 | beginning on the first day of the month immediately following |
| 196 | the member's death regardless of the age of the deceased member. |
| 197 | If the firefighter makes this election, no benefits shall be |
| 198 | paid pursuant to Section 14(5)(b) or Section 14(5)(d) to the |
| 199 | surviving spouse, issue in being under the age of eighteen (18), |
| 200 | or dependent parents. Provided however, the firefighter may |
| 201 | designate as beneficiaries the surviving spouse, issue in being |
| 202 | under the age of eighteen (18), or dependent parents to receive |
| 203 | the remainder of the 120 monthly payments. |
| 204 | (c) If a member has elected the Section 34(1)(b) life only |
| 205 | form of payment, no further payments shall be made upon the |
| 206 | death of the member. If a member has elected the Section |
| 207 | 34(1)(c) joint pensioner form of payment, benefits shall be paid |
| 208 | as provided therein. |
| 209 | Section 14. Benefits Payable Upon Death of Member. |
| 210 | (1) Unless the member has elected a life with 10 year |
| 211 | certain form of payment pursuant to Section 34(1)(a); or has |
| 212 | elected and started receipt of or started DROP account accrual |
| 213 | of a life only form of payment pursuant to Section 34(1)(b); or |
| 214 | has elected and started receipt of or started DROP account |
| 215 | accrual of a joint pensioner form of payment pursuant to Section |
| 216 | 34(1)(c), upon the death of the member, the amounts stated in |
| 217 | subsection (5) shall be paid to the member's surviving spouse, |
| 218 | if any, for the remainder of the surviving spouse's natural |
| 219 | life, regardless of marital status; provided, however, if the |
| 220 | deceased member left surviving issue in being under the age of |
| 221 | eighteen (18) who are issue of said decedent and the member's |
| 222 | surviving spouse, twenty-five percent (25%) of the aforesaid |
| 223 | surviving spouse's pension shall be paid to said surviving |
| 224 | spouse for said issue, until said issue become eighteen (18), at |
| 225 | which time the full surviving spouse's pension shall be paid to |
| 226 | said surviving spouse for the remainder of the surviving |
| 227 | spouse's natural lifetime regardless of marital status; and, |
| 228 | provided further, if said deceased member died with issue |
| 229 | surviving in being under the age of eighteen (18) who are issue |
| 230 | of said decedent and not of the surviving spouse, twenty-five |
| 231 | (25%) of the aforesaid surviving spouse's pension shall be |
| 232 | divided and paid on a per capita basis, to: |
| 233 | (a) the legal guardian or guardians of said issue, or a |
| 234 | trustee of a trust of which said issue is a beneficiary, for |
| 235 | said issue; until age eighteen (18); and |
| 236 | (b) the surviving spouse, for issue, if any, the surviving |
| 237 | spouse and the deceased member may have had who survived the |
| 238 | member and were in being and under eighteen (18) years of age at |
| 239 | the time of the member's death. |
| 240 | (2) If said decedent leaves no surviving spouse, but does |
| 241 | leave issue as aforesaid, the aforesaid full surviving spouse's |
| 242 | pension shall be divided and paid on a per capita basis to the |
| 243 | legal guardian or guardians of said issue, or a trustee of a |
| 244 | trust of which said issue is a beneficiary, for said issue, |
| 245 | until age eighteen (18). Notwithstanding anything to the |
| 246 | contrary in this section, all payments for any issue shall cease |
| 247 | at age eighteen (18) or at death of said issue prior thereto or |
| 248 | at the times provided in Section 22 of this act and said |
| 249 | cancelled payments for said issue shall not serve to increase |
| 250 | the payments to any other issue but shall be paid to said |
| 251 | surviving spouse if then alive for the remainder of the |
| 252 | surviving spouse's natural lifetime regardless of marital |
| 253 | status. |
| 254 | (3) If a deceased member of the said fire department, |
| 255 | active or retired, shall leave no surviving spouse and shall not |
| 256 | leave a surviving child or children in being and his issue and |
| 257 | under the age of eighteen (18) years, but shall leave a |
| 258 | surviving parent who is entirely dependent upon said member for |
| 259 | support, the dependent parents pro rata shall receive the same |
| 260 | pension to which the surviving spouse would have been entitled, |
| 261 | unless and until such dependent parent becomes self-supporting |
| 262 | or dies. If both dependent parents are receiving pension and one |
| 263 | becomes self-supporting or dies, the one hundred percent (100%) |
| 264 | of the benefit shall be paid to the other dependent parent. |
| 265 | (4) Notwithstanding anything to the contrary in this |
| 266 | section, the fund, board of trustees, comptroller and the city |
| 267 | shall not be liable or responsible in any way for identification |
| 268 | or verification of the authenticity of surviving spouses, |
| 269 | issues, guardians, or trustees, or dependent parents or changes |
| 270 | in status thereof; moreover, without limiting the foregoing, to |
| 271 | be entitled to be considered for said payments provided herein, |
| 272 | proof of identification and authenticity of the surviving |
| 273 | spouse, issue, guardians, and trustees, or dependent parents |
| 274 | along with sufficient address and status information under |
| 275 | Section 22 of this Act, must be presented to the board in |
| 276 | writing within thirty (30) days of the death of said member and |
| 277 | proof of changes therein presented to the board in writing |
| 278 | within thirty (30) days after the change. Without limiting the |
| 279 | foregoing sentence, any surviving spouse deeming himself or |
| 280 | herself entitled under this section to an increase in pension on |
| 281 | account of change in status of issue shall present in writing to |
| 282 | said board proof satisfactory to the board of said change within |
| 283 | thirty (30) days thereafter. If the board of trustees decides, |
| 284 | in its discretion, that proof of any of the aforesaid changes |
| 285 | has been satisfactorily shown to it in writing, the change of |
| 286 | pension shall be made by said board effective with the next |
| 287 | monthly payment due after said showing; provided, however, no |
| 288 | change in pension payment or amount thereof shall be |
| 289 | retroactive. |
| 290 | (5)(a) If the member qualifies for benefits pursuant to |
| 291 | Section 7, "Permanent Disability Pension; Not in Line of Duty", |
| 292 | the amount of the monthly pension shall be equal to sixty-five |
| 293 | percent (65%) of the pension that the deceased member was |
| 294 | entitled to receive based on years of credited service, unless |
| 295 | the member had twenty (20) years of credited service at time of |
| 296 | retirement on disability in which case the monthly pension shall |
| 297 | be equal to seventy-five percent (75%) of the pension that the |
| 298 | deceased member was entitled to receive based on years of |
| 299 | credited service. |
| 300 | (b) If the member's death qualifies for benefits pursuant |
| 301 | to Section 8, "Pension for Death In Line of Duty", the monthly |
| 302 | pension shall be seventy-five percent (75%) of eighty percent |
| 303 | (80%) of the member's average monthly salary; provided however a |
| 304 | member who has completed 23.53 forty (40) years of credited |
| 305 | service shall be entitled to an additional 3.4% two percent (2%) |
| 306 | over the eighty percent (80%) for each year of credited service |
| 307 | in excess of 23.53 forty (40) years of credited service, but not |
| 308 | to exceed eighty-five percent (85%) unless the deceased member |
| 309 | had completed 42.5 years of credited service in which case the |
| 310 | benefit shall be increased by an additional 2% per year for each |
| 311 | year in excess of 42.5 years of credited service, but not to |
| 312 | exceed one-hundred percent (100%). |
| 313 | (c) If the member qualifies for benefits pursuant to |
| 314 | Section 9, "Permanent Disability Pension: In Line of Duty", the |
| 315 | monthly pension shall be seventy-five percent (75%) of the |
| 316 | pension the deceased member was entitled to receive. |
| 317 | (d) If the member's death qualifies pursuant to Section |
| 318 | 10, "Pension for Death Not In Line of Duty", the monthly pension |
| 319 | shall be sixty-five percent (65%) of the pension that the member |
| 320 | was entitled to receive; provided however that if the active |
| 321 | member at the time of his or her death shall have reached normal |
| 322 | retirement date, the monthly pension shall be equal to seventy- |
| 323 | five percent (75%) of the pension the deceased member was |
| 324 | entitled to receive based on years of credited service. |
| 325 | (e) If a member is entitled to a pension pursuant to |
| 326 | Section 12, "Service Requirement for Voluntary Retirement", the |
| 327 | monthly pension shall be seventy-five percent (75%) of the |
| 328 | pension that the member was entitled to receive. |
| 329 | (6) Effective for any pension paid a surviving spouse |
| 330 | which started on or after January 1, 2008, any pension being |
| 331 | paid under the terms and provisions of this act to any surviving |
| 332 | spouse shall not cease upon the surviving spouse's remarriage. |
| 333 | The surviving spouse of such deceased member killed in the line |
| 334 | of duty whose benefits terminated because of remarriage shall |
| 335 | have the benefit reinstated as of July 1, 1994, at an amount |
| 336 | that would have been payable had such benefit not been |
| 337 | terminated. No pension shall be paid under the terms and |
| 338 | provisions of this section to any surviving spouse unless the |
| 339 | surviving spouse was the lawful spouse of the deceased member of |
| 340 | the said fire department, at the time the member was placed on |
| 341 | pension or entered DROP under the terms and provisions of this |
| 342 | act. The pension provided for issue of the deceased member under |
| 343 | the age of eighteen (18) years shall not cease by virtue of the |
| 344 | remarriage of their surviving mother or father, but it shall |
| 345 | continue until the occurrence of one or more of the events |
| 346 | mentioned in Section 22 hereof. |
| 347 | (7) If the member was eligible for cost-of-living |
| 348 | increases pursuant to Section 19, then those eligible for |
| 349 | benefits payable upon the death of the member shall also be |
| 350 | eligible for cost-of-living increases in the same |
| 351 | percentage and at the same time that the member would have |
| 352 | been entitled to receive the Section 19 cost-of-living |
| 353 | increases. |
| 354 | Section 21. Deferred Retirement Option Program Plan. |
| 355 | (1) Deferred Retirement Option Program Plan--The Deferred |
| 356 | Retirement Option Program Plan, hereinafter referred to as the |
| 357 | "DROP," allows any member who has elected to participate in the |
| 358 | DROP, hereinafter referred to as a "DROP participant," to |
| 359 | receive a lump-sum payment, or other payment, in addition to a |
| 360 | monthly pension, upon termination of employment. No benefits |
| 361 | shall be paid under this section unless the DROP participant has |
| 362 | terminated employment. |
| 363 | (2) DROP Eligibility--Any member may elect to participate |
| 364 | in the DROP following the date upon which the member completes |
| 365 | 20 years of active service as a firefighter with the City of |
| 366 | Orlando and is eligible for a service retirement pension. A |
| 367 | member may participate in the DROP only once. |
| 368 | (3) DROP Participation-- |
| 369 | (a) An eligible member may participate in the Forward Drop |
| 370 | for a period not to exceed a maximum of 60 months or, in the |
| 371 | alternative, may participate in the Back DROP for a period not |
| 372 | to exceed 60 36 months. Notwithstanding, DROP participation may |
| 373 | not continue beyond the date when the member's combined years of |
| 374 | credited service and time in the DROP equals 360 months. |
| 375 | (b) A member may apply to participate in the DROP by |
| 376 | submitting an application to the Board of Trustees, which shall |
| 377 | include the following: |
| 378 | 1. A written election to participate in the DROP. Once |
| 379 | submitted to the Board of Trustees, this election will be |
| 380 | irrevocable. |
| 381 | 2. Selection of the DROP participation and termination |
| 382 | dates that satisfy the limitation stated in subsection (2) and |
| 383 | paragraph (a). Such termination date shall be in a binding |
| 384 | letter of resignation, establishing a deferred termination date. |
| 385 | 3. A properly completed DROP application for a service |
| 386 | retirement pension. |
| 387 | 4. A properly completed designation of named |
| 388 | beneficiaries in the event the member dies while participating |
| 389 | in the DROP. |
| 390 | 5. Any other information as may be required by the Board |
| 391 | of Trustees. |
| 392 | (c) The DROP participant shall be a retiree under the |
| 393 | provisions of the pension plan. However, participation in the |
| 394 | DROP does not alter the DROP participant's employment status, |
| 395 | nor does it constitute a contract or guarantee of continued |
| 396 | employment. |
| 397 | (d) A DROP participant shall not accrue additional |
| 398 | credited service under the pension plan after the effective date |
| 399 | of DROP participation. |
| 400 | (4) Benefits Payable Under the DROP-- |
| 401 | (a) Effective with the date of DROP participation, the |
| 402 | DROP participant's initial monthly service retirement pension, |
| 403 | including credited service and average monthly salary, shall be |
| 404 | determined and fixed. Such service retirement pension and |
| 405 | earnings shall be credited to the DROP participant's DROP |
| 406 | account no less than monthly. Such earnings shall be credited as |
| 407 | provided in subsection (7). |
| 408 | (b) The effective date of DROP participation for a |
| 409 | participant who has elected to receive benefits under the |
| 410 | pension plan shall be the first day of the month selected by the |
| 411 | member to begin retirement under the pension plan and |
| 412 | participation in the DROP. |
| 413 | (c) The service retirement pension and earnings thereon |
| 414 | shall be credited to the DROP participant's DROP account |
| 415 | periodically, as pension benefit payments would have otherwise |
| 416 | been made. |
| 417 | (5) DROP Types--A member eligible for a service retirement |
| 418 | pension may elect a Forward DROP or a Back DROP, but not both. |
| 419 | (a) Forward DROP--Under a Forward DROP, a member may |
| 420 | retire, deferring receipt of the service retirement pension |
| 421 | while continuing employment with the city. In that case, the |
| 422 | deferred monthly service retirement pension shall be credited to |
| 423 | the DROP participant's DROP account on behalf of the DROP |
| 424 | participant, as provided in subsection (4), for the specified |
| 425 | period of the DROP participation, as provided in subsection (3). |
| 426 | Upon termination of employment, the DROP participant shall |
| 427 | receive the balance of his or her DROP account and begin to |
| 428 | receive the monthly service retirement pension. |
| 429 | 1. A DROP participant remains an employee and receives all |
| 430 | the benefits of being an employee during the DROP participation |
| 431 | period; provided, however, the DROP participant is not eligible |
| 432 | to participate in any other city provided pension or long term |
| 433 | disability plan. A DROP participant shall be subject to |
| 434 | termination of employment during the DROP participation period |
| 435 | to the same extent as he or she was prior to participating in |
| 436 | the DROP. |
| 437 | 2. Effective with the start date of a DROP participant's |
| 438 | Forward DROP participation, a member's contribution and the |
| 439 | normal cost contribution to the pension fund by the city, on |
| 440 | behalf of the member, shall cease. |
| 441 | 3. Effective with the start date of a DROP participant's |
| 442 | Forward DROP participation, a member shall not be entitled to |
| 443 | any change in pension benefits unless specifically provided |
| 444 | otherwise. |
| 445 | (b) Back DROP--Under a Back DROP, a member may retire with |
| 446 | a retroactive date of retirement. A member may not select a |
| 447 | retroactive retirement date earlier than the date upon which the |
| 448 | member first became eligible for a service retirement pension, |
| 449 | and in no event shall the retroactive date of retirement be more |
| 450 | than 60 36 months prior to the date of Back DROP election. The |
| 451 | monthly service retirement pension shall be determined as of the |
| 452 | retroactive retirement date. Except for years of credited |
| 453 | service and average monthly salary, Back DROP benefits shall be |
| 454 | calculated pursuant to the provisions of the pension plan in |
| 455 | effect on the date the member separates from employment as a |
| 456 | firefighter with the City of Orlando and not as of the Back DROP |
| 457 | participant's retroactive date of retirement. The member shall |
| 458 | then be credited with an account balance in his or her DROP |
| 459 | account that is equal to the account balance he or she would |
| 460 | have had if he or she had timely elected a Forward DROP under |
| 461 | paragraph (a) on the retroactive retirement date. Upon |
| 462 | termination of employment, the Back DROP participant shall |
| 463 | receive or transfer the balance of this DROP account, pursuant |
| 464 | to subsection (10), and shall begin to receive the monthly |
| 465 | service retirement pension adjusted to reflect the retroactive |
| 466 | retirement date. |
| 467 | (c) Eligibility exception--Notwithstanding the provisions |
| 468 | of subsection 3(a), for 60 days after the effective date of this |
| 469 | act, a member with more than 324 months of credited service may |
| 470 | elect the Back DROP option and will not be subject to the |
| 471 | combined years of credited service and DROP participation |
| 472 | limitation of 360 months. Said member is subject to the maximum |
| 473 | Back DROP participation period of 60 36 months. A member with |
| 474 | more than 324 months of credited service as of the effective |
| 475 | date of DROP who does not elect to participate in the DROP, as |
| 476 | set forth herein, during this one-time window period shall |
| 477 | forfeit the right to deviate from the conditions for |
| 478 | participation in the DROP set forth in subsection (3). |
| 479 | (6) DROP Accounts--Individual DROP accounts shall be |
| 480 | established to account for each DROP participant's accrued DROP |
| 481 | benefits, but there shall be no requirement that funds be |
| 482 | segregated for any DROP participant. In the case of a member who |
| 483 | selects the Back DROP option, the amount of that member's |
| 484 | contributions made during the Back DROP period shall not be |
| 485 | refunded or credited to the member. |
| 486 | (7) DROP Benefits Earnings and Reporting-- |
| 487 | (a) A DROP participant's DROP account shall accrue |
| 488 | earnings at 8% (eight percent) simple interest compounded |
| 489 | annually, unless the parties otherwise agree. |
| 490 | (b) A DROP account shall be adjusted to reflect earnings |
| 491 | until such time as the DROP account is distributed in full to |
| 492 | the DROP participant or his or her beneficiaries. |
| 493 | (c) The Board of Trustees shall report to each DROP |
| 494 | participant at least annually accrued DROP benefits in the |
| 495 | participant's DROP account. |
| 496 | (8) Cost-of-Living Increase--A DROP participant will not |
| 497 | be eligible to participate in cost-of-living increases during |
| 498 | the DROP period. Cost-of-living increases will be made pursuant |
| 499 | to section 19, starting 3 years after the DROP participant's |
| 500 | termination of employment. |
| 501 | (9) Benefits Payable upon Termination of DROP--Upon the |
| 502 | DROP participant's termination of employment, for any reason, |
| 503 | whether by resignation, discharge, disability, or death, the |
| 504 | monthly service retirement pension will be distributed according |
| 505 | to the provisions of this plan and the balance of the DROP |
| 506 | account shall be distributed to the DROP participant or, if |
| 507 | deceased, the DROP participant's beneficiaries, as provided |
| 508 | herein. |
| 509 | (10) Payment Conditions and Options--Upon the DROP |
| 510 | participant's termination of employment, for any reason, whether |
| 511 | by resignation, discharge, disability, or death, the Board of |
| 512 | Trustees shall distribute the balance of the DROP participant's |
| 513 | DROP account, subject to the following provisions: |
| 514 | (a) The Board of Trustees shall receive verification from |
| 515 | the city that such DROP participant has terminated employment. |
| 516 | (b) Following the termination of employment, the DROP |
| 517 | participant or, if deceased, such DROP participant's |
| 518 | beneficiaries shall elect on forms provided by the Board of |
| 519 | Trustees to receive payment of the balance of the DROP account |
| 520 | in accordance with one of the options listed below. For a DROP |
| 521 | participant or beneficiaries who fail to elect a method of |
| 522 | payment within 60 days of termination of employment, the Board |
| 523 | of Trustees shall pay the balance of the DROP account in one |
| 524 | lump sum as provided in subparagraph 1. |
| 525 | 1. Lump sum--The balance of the DROP account, less taxes |
| 526 | remitted to the Internal Revenue Service, if any, shall be paid |
| 527 | to the DROP participant or beneficiaries. |
| 528 | 2. Direct rollover--The balance of the DROP account shall |
| 529 | be paid directly to the custodian of an eligible retirement plan |
| 530 | pursuant to the then-applicable provisions as defined in § |
| 531 | 402(c)(8)(B) of the Internal Revenue Code. However, in the case |
| 532 | of an eligible rollover distribution to the widow or widower as |
| 533 | a beneficiary, an eligible retirement plan is an individual |
| 534 | retirement account or an individual retirement annuity as |
| 535 | described in § 402(c)(9) of the Internal Revenue Code. |
| 536 | 3. Partial lump sum--A portion of the balance of the DROP |
| 537 | account shall be paid to the DROP participant or beneficiaries, |
| 538 | less taxes remitted to the Internal Revenue Service, if any, and |
| 539 | the remaining balance of the DROP account shall be transferred |
| 540 | directly to the custodian of an eligible retirement plan |
| 541 | pursuant to the then-applicable provisions as defined in § |
| 542 | 402(c)(8)(B) of the Internal Revenue Code. However, in the case |
| 543 | of an eligible rollover distribution to the widow or widower as |
| 544 | a beneficiary, an eligible retirement plan is an individual |
| 545 | retirement account or an individual retirement annuity as |
| 546 | described in § 402(c)(9) of the Internal Revenue Code. The |
| 547 | proportions shall be specified by the DROP participant or |
| 548 | beneficiaries. |
| 549 | 4. Other methods--The balance of the DROP account shall be |
| 550 | paid by a method that is in compliance with the Internal Revenue |
| 551 | Code and as adopted by the Board of Trustees. |
| 552 | (c) The form of distribution payment selected by the DROP |
| 553 | participant or beneficiaries complies with the minimum |
| 554 | distribution requirements of the Internal Revenue Code. |
| 555 | (d) Distributions shall comply with the then-applicable |
| 556 | requirements of the Internal Revenue Code. |
| 557 | (11) Disability--A DROP participant is not eligible to |
| 558 | apply for a disability pension under this pension plan. |
| 559 | (12) Death of a DROP Participant-- |
| 560 | (a) Upon the death of a DROP participant, the named DROP |
| 561 | beneficiaries shall be entitled to apply for and receive the |
| 562 | balance of the DROP participant's DROP account as provided in |
| 563 | subsections (9) and (10). DROP payments to a beneficiary shall |
| 564 | be in addition to any other retirement benefits payable to the |
| 565 | beneficiary. |
| 566 | (b) The monthly service retirement pension accrued to the |
| 567 | DROP account during the month of the DROP participant's death |
| 568 | shall be the final monthly service retirement pension benefit |
| 569 | credited for such DROP participant. |
| 570 | (c) Eligibility to participate in the DROP terminates upon |
| 571 | the death of the DROP participant. If the DROP participant dies |
| 572 | on or after the effective date of enrollment in the DROP, but |
| 573 | prior to the first monthly service retirement pension benefit |
| 574 | being credited to the DROP, pension plan benefits shall be paid |
| 575 | in accordance with applicable provisions of this pension plan. |
| 576 | (d) A DROP participant's beneficiaries shall not be |
| 577 | eligible to receive survivor benefits as provided in sections 8 |
| 578 | and 10. |
| 579 | (13) A DROP participant shall not be deemed to have been |
| 580 | reemployed after retirement as that term is used elsewhere in |
| 581 | the plan. |
| 582 | (14) Any actuarially-determined additional cost resulting |
| 583 | from the benefits in this section shall be borne by the members |
| 584 | of the pension plan. |
| 585 | Section 27. Tax Qualification, and Statutory Minimums, and |
| 586 | SHARE Program. |
| 587 | (a) The legislative body of the City of Orlando is |
| 588 | authorized to amend the pension plan to the limited extent |
| 589 | necessary to obtain and maintain tax qualification of the plan |
| 590 | under the Internal Revenue Code and to comply with mandatory and |
| 591 | optional provisions of the Internal Revenue Code applicable to |
| 592 | governmental pension plans for firefighters, but must obtain |
| 593 | prior agreement of the members and their collective bargaining |
| 594 | agent, if any, should such required amendments change any plan |
| 595 | benefits. |
| 596 | (b) The legislative body of the City of Orlando is |
| 597 | authorized to amend the pension plan to the limited extent |
| 598 | necessary to comply with the minimum standards and benefits |
| 599 | levels required by Chapter 175, Florida Statutes, in order to |
| 600 | allow the plan to receive funds from the Police and |
| 601 | Firefighters' Premium Tax Trust Fund, but must obtain prior |
| 602 | agreement of the members and their collective bargaining agent, |
| 603 | if any, should such required amendments change any plan |
| 604 | benefits. |
| 605 | (c) The legislative body of the City of Orlando is |
| 606 | authorized to amend the pension plan to the limited extent |
| 607 | necessary to create a SHARE program or plan to provide for extra |
| 608 | benefits as required by section 175.351(1), Florida Statutes, |
| 609 | funded by additional premium tax revenues, but must obtain prior |
| 610 | agreement of the collective bargaining agent of the members. |
| 611 | Section 2. Unless otherwise specified, this act shall not |
| 612 | entitle a member or beneficiary of a firefighter who separated |
| 613 | from employment as a firefighter or entered Forward DROP, |
| 614 | whichever came first, prior to July 1, 2009, to any additional |
| 615 | benefits to those in effect at the time of the firefighter's |
| 616 | separation from employment as a firefighter or entry into |
| 617 | Forward DROP, whichever came first, or change in the calculation |
| 618 | of normal retirement benefit. This section shall take effect |
| 619 | July 1, 2009. |
| 620 | Section 3. This act is only an enabling act and is |
| 621 | contingent upon contractual agreement through the collective |
| 622 | bargaining process between the City of Orlando and the |
| 623 | respective certified bargaining agent. |
| 624 | Section 4. Except as otherwise provided in this act, this |
| 625 | act shall take effect upon becoming a law and section 3 shall be |
| 626 | effective retroactive to January 1, 2009. |