§ 58. Rights and benefits of Participants—Generally.

The Fund shall provide benefits to Participants as follows:

(a)

If a Participant shall die while on Active Duty as a Police Officer, the Participant shall be 100% vested in his or her entire Account Balance and his Designated Beneficiary shall be paid the entire amount of his Account Balance. If no Beneficiary is designated by the Participant, or the Beneficiary predeceases the Participant, the entire Account Balance shall be paid to his or her Surviving Spouse. If there is no Surviving Spouse, the entire Account Balance shall be paid to the estate of the deceased Participant.

(b)

If a Participant shall have retired for service or becomes disabled under any other pension plan of the City, he or she shall be 100% vested in his or her entire Account and he or she shall be paid the entire amount of his or her Account Balance.

(c)

If a Participant shall separate from Active Duty for any reason whatsoever prior to Normal Retirement Age, except as provided in (a) and (b) above, he or she shall be entitled to distribution from the Fund equal to his or her vested Account Balance at that time.

(d)

Payment to a Participant as provided in this Section 58 shall be full acquittal of all claims of a Participant against the Fund and he or she shall thereupon cease to be a Participant in the Fund.

(e)

Each Participant shall be fully (one hundred percent) vested in the entire amount in his or her Account as it exists on February 28, 1983. Any subsequent increases in a Participant's Account, whether from allocation of City payment of premium tax refunds, investment earnings, or any other source, shall be vested in accordance with the following schedule:

Years of Service	Vested Percent
Less than 10	None
10 or over	100

 

Any nonvested amounts which are not distributable under (a), (b) or (c) above shall be forfeited by the Participant and reallocated to remaining Participants as provided herein.

(f)

It is the intent of the City to continue the Fund indefinitely. However, in the event of the termination of the Fund, all Participants shall be 100% vested in their entire Account Balances as of such termination date.

(g)

If permitted by the Board, a Participant who is an Eligible Retired Public Safety Officer and is receiving benefits under the Fund may elect to have Qualified Health Insurance Premium Distributions made in accordance with this Section 58(g). Qualified Health Insurance Premium Distributions may be excluded from the gross income of the Eligible Retired Public Safety Officer under Section 402(I) of the Code, subject to the annual dollar limitation therein.

(h)

Once a Participant has separated from Active Duty, the Participant may elect to receive his or her vested benefit as a single cash lump sum or may elect to make withdrawals in his discretion (subject to the required minimum distribution requirements described in Section 58(i) below), from time to time.

(i)

Notwithstanding anything herein to the contrary, effective for Fund Years beginning on or after January 1, 1997, a Participant's benefits under the Fund shall commence no later than April 1 of the calendar year following the later of (i) the calendar year in which he or she attains age 70½; or (ii) the calendar year in which he retires. All distributions shall conform to the regulations issued under Section 401(a)(9) of the Code, including the incidental death benefit provisions of Section 401(a)(9)(G) of the Code. Further, such regulations shall override any provision that is inconsistent with Section 401(a)(9) of the Code. Notwithstanding any provision of this Act to the contrary, a form of retirement income payable from this Fund, shall satisfy the following conditions:

(i)

If the retirement income is payable before the Participant's death:

(A)

It shall either be distributed or the distribution commenced to the Participant not later than April 1 of the calendar year following the later of the calendar year in which the Participant attains age 70½, or the calendar year in which the Participant retires; or

(B)

The distribution shall commence no later than the calendar year defined above; and (x) shall be paid over the life of the Participant or over the lifetimes of the Participant and his or her spouse, issue or dependent, or (y) shall be paid over the period extending not beyond the life expectancy of the Participant and spouse, issue or dependent.

Where a form of retirement income payment has commenced in accordance with the preceding paragraphs and the Participant dies before his entire interest in the Fund has been distributed, the remaining portion of such interest in the Fund shall be distributed no less rapidly than under the form of distribution in effect at the time of the Participant's death.

(ii)

If the Participant's death occurs before the distribution of his interest in the Fund has commenced, Participant's entire interest in the Fund shall be distributed within five years of Participant's death, unless his or her interest is distributed in accordance with the following rules:

(A)

The Participant's remaining interest in the Fund is payable to his or her spouse, issue or dependent; and

(B)

The remaining interest to be distributed over the life of the spouse, issue or dependent or over a period not extending beyond the life expectancy of the spouse, issue or dependent; and

(C)

Such distribution begins within one year of the Participant's death unless the Participant's spouse is the sole designated beneficiary, in which case the distribution need not begin before the date on which the Participant would have attained age 70½ and if the Participant's spouse dies before the distribution to the spouse begins, this section shall be applied as if the spouse were the Participant.

(k)

Direct rollovers:

(i)

Notwithstanding any provision of this Fund to the contrary that would otherwise limit a Distributee's election under this paragraph, effective January 1, 2002, a Distributee may elect, at the time and in the manner prescribed by the Board, to have any portion of an Eligible Rollover Distribution paid directly by the Fund to an Eligible Retirement Plan specified by the Distributee in a Direct Rollover.

(ii)

With respect to distributions after December 31, 2009, a non-spouse beneficiary who is a Designated Beneficiary may, by a Direct Rollover, roll over all or any portion of his or her distribution to an individual retirement account the non-spouse beneficiary establishes for purposes of receiving the distribution. In order to be able to roll over the distribution, the distribution otherwise must satisfy the definition of an Eligible Rollover Distribution. Although such non-spouse beneficiary may roll over such distribution, any distribution made prior to January 1, 2010, is not subject to the direct rollover requirements of Code Section 401(a)(31) (including Code Section 401(a)(31)(B), the notice requirements of Code Section 402(f) or the mandatory withholding requirements of Code Section 3405(c)). If a non-spouse beneficiary receives a distribution from the Fund, the distribution is not eligible for a "60-day" rollover. A non-spouse beneficiary may not roll over an amount which is a required minimum distribution, as determined under applicable Treasury Regulations and other Internal Revenue Service guidance. If the Participant dies before his or her Required Beginning Date (as defined below) and the non-spouse beneficiary rolls over to an individual retirement account the maximum amount eligible for rollover, the non-spouse beneficiary may elect to use either the 5-year rule or the life expectancy rule, pursuant to Treasury Regulation Section 1.401(a)(9)-3, A-4(c), in determining the required minimum distributions from the individual retirement account that receives the non-spouse beneficiary's distribution. The term "Required Beginning Date" means the later of the April 1 following (i) the calendar year in which the Participant attains age 70½ or (ii) the calendar year in which the Participant terminates his employment.

(iii)

If the Participant's named beneficiary is a trust, the Fund may make a Direct Rollover to an individual retirement account on behalf of the trust, provided the trust satisfies the requirements to be a Designated Beneficiary.

(iv)

With respect to distributions made after December 31, 2007, a Distributee may elect to roll over via Direct Rollover an Eligible Rollover Distribution to a Roth individual retirement account described in Code Section 408A(b).

(l)

Upon the death of a Retired or Separated Participant, such Participant's surviving spouse shall have all the distribution options that were available to the Retired or Separated Participant pursuant to this Section 58.

(m)

Notwithstanding any provision of this Act to the contrary:

(i)

Effective for Fund Years beginning on or after January 1, 1995, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Code Section 414(u);

(ii)

Effective for deaths occurring on or after January 1, 2007, if a Participant dies while performing qualified military service (as defined in Code Section 414(u)), the survivors of the Participant are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the Fund as if the Participant had resumed and then terminated employment on account of death;

(iii)

For benefit accrual purposes, the Fund will treat a Participant who dies or becomes Disabled on or after January 1, 2007, while performing qualified military service (as defined in Code Section 414(u)) as if the Participant had resumed employment in accordance with his reemployment rights under USERRA, on the day preceding death or disability (as the case may be) and separated from service on the actual date of such death or disability;

(iv)

For years beginning after December 31, 2008, (1) an individual receiving a differential wage payment, as defined by Code Section 3401(h)(2), is treated as a Participant of the employer making the payment, (2) the differential wage payment is treated as compensation, and (3) the Fund is not treated as failing to meet the requirements of any provision described in Code Section 414(u)(1)(C) by reason of any contribution or benefit which is based on the differential wage payment; and

(v)

Effective as of January 1, 2009, for purposes of being eligible to receive a distribution under the Fund, an individual will be treated as having been terminated from employment during any period the individual is performing service in the uniformed services described in Code Section 3401(h)(2)(A).

(n)

Each Participant, beneficiary or other person entitled to a benefit, before any benefit shall be payable to him or her or on his or her Account under the Fund, shall file with the Board the information that it shall require to establish his or her rights and benefits under the Fund.

(Laws of Fla., 1955, ch. 30985, § 10; eleciton of 11-2-82; Ord. No. 2018-4199, § 10, 6-6-18)