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HomeMy WebLinkAbout4016 Amending and restating Chapter 2, Police Officer RetirementORDINANCE NO. 4016 AN ORDINANCE OF THE CITY OF SANFORD AMENDING AND RESTATING CHAPTER 2, ADMINISTRATION, ARTICLE XV, THE CITY OF SANFORD POLICE OFFICERS' RETIREMENT SYSTEM, OF THE CITY CODE OF THE CITY OF SANFORD; PROVIDLNG FOR DEFINITIONS; PROVIDING FOR MEMBERSHIP; PROVIDING FOR A BOARD OF TRUSTEES; PROVIDING FOR FINANCES AND FUND MANAGEMENT; PROVIDING FOR CONTRIBUTIONS; PROVIDING FOR BENEFIT AMOUNTS AND ELIGIBILITY; PROVIDING FOR OPTIONAL FORMS OF BENEFITS; PROVIDING FOR CLAIMS PROCEDURES; PROVIDING FOR MISCELLANEOUS PROVISIONS; PROVIDING FOR REPEAL OR TERMINATION OF SYSTEM; PROVIDING FOR DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS AND ELIMINATION OF MANDATORY DISTRIBUTIONS; PROVIDING FOR THE PURCHASE OF CREDITED SERVICE FOR ABSENCES PURSUANT TO THE FAMILY MEDICAL LEAVE ACT; PROVIDING FOR THE PURCHASE OF CREDITED SERVICE FOR MILITARY SERVICE PRIOR TO EMPLOYMENT; PROVIDING FOR THE PURCHASE OF CREDITED SERVICE FOR PRIOR POLICE SERVICE; PROVIDING FOR REEMPLOYMENT AFTER RETIREMENT; PROVIDING FOR A DEFERRED RETIREMENT OPTION PLAN; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Senford Police Officers are presently provided pension and certain other benefits under Ordinances of the City of Sanford and; VV2-1EREAS, the City Commission desires to clarify end ~state the provisions of the Police Officers' Retirement System to consolidate all prior ordinences end Code provisions and to incorporate Federal law and the applicable provisions of Chapter 185, Florida Statutes; NOW, THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF SANFORD, FLORIDA; SECTION 1: That Chapter 2, Administration, A~icle XV, the City of Senford Police Officers' Retirement System, Sections 2-261 through 2-276, inclusive, of the City of Sanford Code of Ordinances, be and the same is amended end restated as set forth in the document designated POLICE OFFICERS' RETIREMENT SYSTEM, attached hereto and made a part hereof. SECTION 2: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 3: If any section, subsection, sentence, clause, phrase of this ordinance, orthe particular application thereof shall be held invalid by any court, administrative agency, or other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under application shall not be affected thereby. SECTION 4: That this Ordinance shall become effective upon its adoption. PASSED AND ADOPTED this 25th day of September, A.D. 2006. Attest: Cyntl~ia Porter, Acting City Clerk City Commission of the City of Sanford, Florida Linda Ku~n, Mayor ) Certificate I, Cynthia Porter, Acting City Clerk of the City of Sanford, Florida, do hereby certify that a true and correct copy of the foregoing Ordinance No. 4016, Passed and Adopted by the City Commission of the City of Sanford, Florida, on the 25th day of September, 2006, was posted at the front door of the City Hall in the City of Sanford, Florida, on the 27th day of September, 2006. Cynthia Porter, As the Acting City Clerk of the City of Sanford, Florida Approvedestofonn: CITY ATTORNEY ARTICLE XV, POLICE OFEICERS' RETIREMENT SYSTEM Sec. 2-261. Definitions. (1) As used herein, unless otherwise defined or required by the context, the following words and phrases shall have the meaning indicated: Accumulated contributions means a member's own contributions, plus the amount described in Section 2-266 (e)(4), all without interest. For those members who purchase credited service with interest or at no cost to the system, any payment representing the amount attributable to member contributions based on thc applicable member contribution rate, interest and any required actuarially calculated payments lbr thc purchase of such credited service, shall be included in accumulated contributions. Actuarial equivah,nt means a bencfit or amount of equal value, based upon the 1983 Group Annuity Mortality Table and an interest rate of eight (8) perccnt per annum. A veragefinal compensation mcans one-twelfth ( I/12) of the average base pay of the five (5) best years of credited service of thc last ten (10) years prior to retirement, termination or death or the career average as a full-ti~ne police officer, whichever is greater. A year shall bc twelve (t2) consecutive months. Basepay means the pay for the grade and step in the salary classification pay plan m the city for the given fiscal year, including education incentive payments and plus alt tax-deferred, tax sheltered or tax-exempt items of income derived from elective employee payroll deductions or salary reductions and otherwise includible in base pay. Compensation in excess of thc limitations set forth in Section 401(a)(17) of thc Code shall be disregarded. Thc limitation on cmnpensation lbr an "eligible employee" shall not be less than the amount which was allowed to be taken into account hereunder as in cft~ct on July l~ I993. "Eligible employee" is an individual who ,,,,'as a Mcmbcr bcfure the first Plan Year beginning after December 31, 1995. Benqficia~3, means thc person or persons entitled to receive bcncfils hereunder at thc death ora member who has or have been designated in writing by the member and filed with the board. If no such designation is in cfl~zct, or if no person so designated is living, at thc time of death of thc member, thc beneficiary sh,'fll be tile estate of the member. Board means thc board uf trustees, which shall administer and ~nanage tile syslcm hcrcJn provided and serve as trustees of thc fired. CiO, means City o£ Sanlbrd, Florida. Code means thc Internal Revenue Code of 1986, as amcndcd t¥om time to time. Credited servi~e means thc total number of years and fractional parts uf years of service as a police officer wilh mcmbcr contributions when required, omitting intervening years or fractional parts of years when such member was not employed by thc city as a police officer. A member may vohmtarily leave his accumulatcd contributiuns in thc lhnd for a period of five (5) years after leaving the employ of thc police department pending the possibility of being rccmploycd as a police ufficcr, without losing credit for the Imm thai he was ti member of the system. If a vcstcd member leaves the employ et'thc police department, his accomulatcd contribntions will bc rclumed only upon his written request. Ifa mcmbcr who is not vcstcd is not rcemploycd ;cs a police officer with thc police department within five (5));ears, his accumulated contributions, if one-thousand dollars ($1,000.00) or less, shall be returned. Ifa member who is not vested is not reemployed within five (5) years, his accumulated contributions, if more than onc4housand dollars ($1,000.00), will be returned only upon the written request of the member and upon completion ora written election to receive a cash lump sum or to rollover the lump stun amount on forms designated by the board. Upon return of a member's accumulated contributions, all of his rights and benefits under the system are forfeited and terminated. Upon any reemployment, a police officer shall not receive credit for the years and fractional parts of years of service for which he has withdrawn his accumulated contributions from the fund, unless the police officer repays into the fund the contributions he has withdrawn, with interest, as determined by the board, within ninety (90) days after his reemployment. In addition, a member may receive credited service for periods which the member is absent from employment and receiving workers' compensation benefits for i~iuries sustained while acting as a police officer for the city, up to thc time maximum medical improvement is reached, as determined in accordance with thc Florida Workers' Compcnsatiun Law. The years or fractional parts of years that a member serves in the military service of the Armed Forces of the United States, the United States Merchant Marine ur the United States Coast Guard, voluntarily or involuntarily, after separation from cmploy~ncnt as a police officer with the city to perform training or service, shall be added to his years of credited service fur all purposes, including vesting, provided that: (a) The mcmber must return tu his employment as a police officer within one (1) year from the earlier of the date of his military discharge or release from active service. (b) (c) The member is entitled to reemployment under thc provisions of the Uniformed Services Employment and Reemployment Rights Act (USERRA), (P.L. 103-353). The ~naximum credit lbr military service pursuant to this paragraph shall be five (5) years. Effective date means thc date on which this article bccomcs effective. Fund means the trust fund established hercin as part of the system Groxxpay means the total cash remuneration, excluding worker's cumpcnsatJon. Member means an actively employed police ufficcr who fldfills the prescribed membership requirements. Benefit improvements which, in thc past, have been provided lbr by amendments to the system adopted by city ordinance, and any benefit improvements which migl~t bc made in the future shall apply prospectively and shall not apply to members who terminate employment or who retire prior to the efl'ecfivc date of any ordinance adopting such benefit improvements, unless such ordinance specifically provides to thc contrary. Plan Year means the twelve (12) month period bcginuing October 1 and ending September 30 of thc following year. Police of/]cer means an actively employed full-time person, emploved bv the city, including his initial probationary employment period, who is certified as a police }fffic~r as a condition of employment in accordance with thc provisinns of Section 943.1395 Flurida Statutes. who is vested with authority to bear arms and make arrests, and xvhosc primary rcspunsibilitv is Ibc prevention anti detection of crime or thc enforcement of thc penal, traffic, or highway laws (~,f fl~c State of Ffurida. Retiree means a member who has entered retirement status. Retirement means a member's separation from city employment with eligibility for immediate receipt of benefits under the system or entry into the Deferred Retirement Option Plan. Spouse means the lawful wife or husband of a member or retiree at the time benefits become payable. System means the City of Sanford Police Officers' Retirement System as contained herein and all amendments thereto. (2) Masculine gender. The masculine gender, where used herein, unless the context specifically requires otherwise, shall include both the feminine and masculine genders. Sec. 2-262. Membership. O) (a) Conditions of eligibility. All police officers as of the effective date, and all finurc new police officers, shall become members of this system as a condition of cmploy~nent. (b) All future new police officers shall bc required to complete a medical examination as prescribed by the city. (2) (a) (b) Benqficiaries. Each member or retiree may, on a form provided lbr that purpose, signed and filed with the board, designate a beneficiary (or beneficiaries) to receive the benefit, if any, which may be payable in the event of his death. Each designation may be revoked or changed by such member or retiree by signing and filing with the board a new desigmation-of-beneficiary form. Upon such change, thc rights of all previously designated beneficiaries to rcccivc any bencfils nndcr thc system shall cease. Ifa deceased member or retiree failed to name a bcncficiary m thc manner prescribed in subsection (a), or if the beneficiary (or bcncficiaries) named by a deceased member or retiree predeceases the member or retiree, thc dcafi~ bcnefu, il' any, which may be payable undcr the system with respect to such deceased member or rctirce~ shall bc paid to the estate of the member or retiree and thc board, in its discretion, may dircct that thc commuted value of the remaining monthly income benefits hc paid in a lump (c) Any payment made to any person pursuant ti) this section shall operate as a complete discharge of all obligations under thc system x,. ilh ~cgard to fi~c deceased mcmbc~ and any other persons with rights under thc system and shall not bc subject lo ~ cvicw by anyone but shall be final, binding and conclusixc on all persons cvc~ interested hereunder. Sec. 2-263. Board of trustees. (l) Board q/-truvteex; re~xT>onsibilities; co.y~oxition. 'lhe sole and exclusive adminislration of and responsibility tbr thc proper operation of Iht systcm and li*r making ctlbclivc thc pmx ismns of this article are hereby vested in a board oftmstccs. 'lhc board is hereby dcsignalcd as thc plan 5 administrator. The board of trustees shall consist of five (5) trustees, two of whom, unless otherwisc prohibited by law, shall be legal residents of the city, who shall be appointed by the Sanford City Commission, and two of whom shall be members of the system, who shall be elected by a majority of the police officers who are members of the system. The fifth trustee shall be chosen by a m~jority of the previous four (4) trustees as provided for herein, and such person's name shall bc submitted to the Sanford City Commission. Upon receipt of thc fifth person's name, the Sanford City Commission shall, as a ministerial duty, appoint such person to the board of trustees as its fifth trustee. The fifth trustee shall have the same rights as each of the other four (4) trustees appointed or elected as herein provided and shall serve a two (2) year term unless he sooner vacates the office. Each resident trustee shall serve as trustee for a period of two (2) years, unless he sooner vacates the office or is sooner replaced by thc Sanford City Commission at whose pleasure shall serve. The two (2) resident trustees shall serve staggered terms. Each member trustee shall serve as trustee for a period two (2) years, unless he sooner leaves the employment of the city as a police officer or otherwise vacates his office as trustee, whereupon a successor shall bc chosen in lhe same manner as the departing trustec. Each trustee may succeed himself Jn office and the two (2) police officer trustees shall serve staggered tcrms. DROP participants can be elected as but not vote for elected trustees. The board shall establish and administer the nominating ami election procedures for each election. A city official who is otherwise eligible for appointment to thc board shall not be disqualified for consideration solely on the basis of his official status unless such Js required by law. The board of trustees shall meet at least quarterly each year. Thc board shall be a legal entity with, in addition to other powers and responsibilities contained hereto, thc power to bring and defend lawsuits of every kind, nature, and description. (2) OJficers. The trustccs shall, by a majority vote, ctcct a chairman, vice chairman anti a secretary/treasurer. The secrctary/treasurcr of the board shall kccp a complete minute book of the actions, proceedings, or hearings of the board. The trustees shall nol receive any compensation as such, but may receive expenses and per them as provided by law. (3) Voting. Each trustee shall be entitled to one (I) vo~c on thc board. Three (3) affirmative votes shall be necessary for any decision by the trustccs at any mceting of the board. A trustee shall abstain from voting as the result of a conflict of interest and shall comply with the provisions of Section 112.3143, Florida Statutes. (4) Accounting; expenses, etc. Tbe board shall engage such actuarial, accounting, legal, and other services as shall be required to transact the business of thc system. ]'he compensatim~ of all persons engaged by the board and all other expenses of the board necessary for thc operation of the system shall be paid l¥om thc fund at such rates and in such amounts as thc board shall agree. In the event thc board chooses to nse the city's legal cnunscl, acluat~ nr other profcssionak technical or other advisors, it shall do so only under terms and conditions acceptable to thc board. (5) Dutiex. The duties and responsibilitics of Ibc board shall inclode, but not necessarily be limited to, the following: (a) To construe the provisions of the system and determine all questions arising thereunder. (b) To determine all questions relating to eligibilitv and mcmbcrship. (c) To determine and certify thc amount of all retirement allowances or other benelits hereundcr. 6 (d) To establish uniform rules and procedures to be followed for administrative purposes, benefit applications and all matters required to administer the system. (e) To distribute to members, at regular intervals, information concerning thc system. (0 To receive and process all applications for benefits. (g) To authorize all payments whatsoever from the fund, and to notify the disbursing agent, in writing, of approved benefit payments and other expenditures arising through operation of the system and fund. th) To have performed actuarial studies and valuations, at least as often as required by law, and make recommendations regarding any and all changes in the provisions nf the system. ti) To pcrfom~ such other duties as are required to prudently administer the system. (J) Roster of retirees. The secretary of the board shall keep a record of all persons enjoying a pension under the provisions of this article in which it shall be noted the time when the pension is allowed and when the same shall cease to be paid. Additionally, the secretary shall keep a record of all members in such a manner as to show the name, address, date of employment and date of termination of cmploymeut. These records shall be exempt front disclosure to thc extent provided lbr in Chapter 119, Florida Statutes. (5) Reports to division of retirement. Each year and no later than March 15th, the board shall file an annual report with the division of retirement containing the ducuments and information required by Section 185.221, Florida Statutes. (6) CiO, liaison to board. The city finance director shall act as city liaison to thc board. (7) Indemnification. (a) To the extent not covered by insurance contracts in fi)roe from time to time, and 1o the extent not covered by the Sovereign hnmunity Statute, thc city shall indcmni~, defend and hold harmless members of the board from all personal liability damages and costs, including court costs and attorneys' fees, arising out of claims, suits, litigatiou, or threat of same, herein referred to as "claims." against these individuals because of acts or circumstances counecled with or arisiug out of their official duty as members of the board, other than as set fi)rrb in paragraph (b) aud (c of this subsectiun (7). The city reserves the right, in its sole discretion, to settle or not settle the claim at any time, and to appeal or to not appeal lkmn auy advmsc judgment or ruling, and in either event will indcmni fy, defend ami hold harmless any members of the board from the judgment, execution, or levy thereon. (b) This subsection shall not be construed so as to relieve any insmancc company or other entity liable to defend the claim or liable for pa~nent of the judgment or claim. from any liability, nor does this subsection waive any provision of law aflbrdmg thc city imurunity from any suit in whole or part, or waive any other substanlivc or procedural rights the city may have. (c) This ~subsecfion shall not apply nor shall the city be responsible in any manner to defend or pay for claims arising out of acts or omissions of members of the board which constitute felonies or gross malfeasance or gross misfeasance in office. Sec. 2-264. Finances and fund management. (1) Establishment offund. As part of the system, there is hereby established thc Ii, nd. into which shall be deposited all of the contributions and assets whatsoever attributable to thc system, including the assets of the prior police officers' retirement system. (2) Custody and supervision offfund assets. The actual custody and supervision of the fund (and assets thereof) shall be vested in the board. Payment of benefits and disbursements from the fund shall be made by the disbursing agent but only upon written authorization from thc board (3) Deposit of Ji~nd assets; investment management. All funds of the police officers' retirement system may be deposited by thc board, with the finance director of the city, acting m a ministerial capacity only, who shall be liable in the same manner and to the same extent as he is liable for the safekeeping of funds for the city. However, any funds so deposited with the finance director of the city shall be kept in a separate fund by the finance director or clearly identified as such funds of the police officers' retirement system. In lieu thereof, the board shall deposit the funds of the police officers' retirement system in a qualified public depository as defined in Section 280.02. Florida Statutes, which depository with regard to such funds shall conform to and be bound bv all of the provisions of Chapter 280, Florida Statutes. In order to fulfill its investment responsibil]tics as set forth herein, the board may retain tile services of a custodian bank, an investment advisor registered under the Investment Advisors Act of 1940 or otherwise exempt from such required registration, an insurance company, or a combination of these, fbr the purposes of investment dccisions and management. Such investment manager shall have discretion, subject to any guidelines as prescribed by the board, in the investment of all fund assets. (4) Required .financial records. All funds and securities of thc systcm may bc commingled in the fund, provided that accurate records are ~naintaincd at all times reflecting thc financial composition of the fund, including accurate current accounts and entries as regards thc lbllowing: (a) Current amounts of accumulated contributions of members on both an individual and aggregate acgount basis, and (b) Receipts and disbursements, and (c) Benefit payments, and (d) Current amounts clearly reflecting all monies, funds and assets whatsocxc~ attributable to contributions and deposits from tile city, and (e) All interest, dividends and gains (or losses) whatsoever, anti Such other entries as may be properly required so as to reflect a clear anti complete financial report of thc fund. (5) Annual audit. An audit shall be performed annually by a certified public accmmtant fi)r the most recent fiscal year ol'thc system showing a detailed listing of assets and a statement ol' all mcomc and disbursements during the year. Such income and disbursements nmst be rcconcilctl with the assets at the beginning and end of thc year. Such report shall reflect a completc evaluation of assets on both a cost and market basis, as well as other items normally included in a certified audit. (6) Investment powers and authority of board. The board shall have the following investment powers and authority: (a) The board shall be vested with full legal title to said fund, subject, however, and in any event to the authority and power of the Sanford City Commission to amend or terminate this fund, provided that no amendment or fund termination shall ever result in the use of any assets of this fund except for the payment of regular expenses and benefits under this system, except as otherwise provided herein. All contributions from time to time paid into lhe fund, and the income thereof, without distinction between principal and income, shall be held and administered by the board or its agent in the fund and thc board shall not be required to segregate or invest separately any portion of thc fund. (b) All monies paid into or held in the fund shall be invested and reinvested by thc board and the investment of all or any part of such funds shall be limited to: 1. Annuity and life insurance contracts of life insurance companies m amounts sufficient to provide, in whole or in part, the benefits to which all of the members in the fund shall be entitled under the provisions of this system and pay the initial and subsequent premium thereon. .. Time or savings accounts of a national bank, a state bank insured by the Baok Insurance Fund or a savings/building and loan association insured by the Savings Association Insurance Fund which is administered by the Federal Deposit insurance Corporation or a state or federal chartered credit union whose share accounts arc insured by the National Credit Union Share insurance Fund. Obligations ol'the United States or obligations guaranteed as to principal and interest by thc govermnent of the United States or by an agency of thc government of thc United States. Bonds issued by the State ot' Israel. Stocks, commingled funds administered by National or Statc Banks. mutual fumts and bonds, or evidences of indebtcdness, provided that: a. All individually held securities and all sccurilies in a commingled or mutual fund must be issued or guaranteed by a corporation organized under the laws of the United States, any state or organized territory of the United Stales, or thc District of Columbia. b. Up to ten percent (I 0%) of the assets of the fund may bc invested in foreign securities. c. Thc board shall not invest more than five (5) percent ol' its assets in the common stock, capital stock, or convertible scctlritics of any one .(1) i?suing company, nor shall the aggregate investment in any one issuing company exceed live (5) percent of the outstanding capital stock of that company; nor shall the aggregate of its investments in common stock capital stock and convertible securities at cost exceed sixty-five (65) percent of the assets of the fund. (c) At least once every three (3) years, and ~nore often as determined by the board, the board shall retain a professionally qualified independent consultant, as defined in Section 185.06, Florida Statutes, to evaluate the performance of all current investment managers and make recommendations regarding the retention of all such investment managers. These recommendations shall be considered by the board at its next regularly scheduled meeting. (d) The board may retain in cash and keep unproductive of income such amount of the fund as it may ~leem advisable, having regard for the cash requirements of the system. (el Neitl~er thc board nor any trustee shall bc liable for the making, retention or sale of any ~nvestment or reinvestnlcnt made as herein provided, nor for any loss or diminishment of thc fund, except that due to his or its own gross negligence, willful misconduct or lack of good faith. (fl The board may cause any investment in securities held by it to bc registered in or transferred into its name as trustee tlr into the name of such nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments arc part of thc fund. (gl The board is empowered, but is not required, to vote upon any stocks, bonds, or securities of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, rccapitalizations, consolidations, and similar transactions with respect to such securities; to deposit such stock tlr other securities in any voting trust or any protective or like cmnmittee with the trustees or with depositories designated thereby; to amortize or fail to amortize any part or all of thc premium or discount resulting from the acquisition or disposition of assets; ami generally to exercise any of the powers of an owner with respect to stocks, bonds, or other investments comprising the fired which it may deem to be to the best interest of the fund to exercise. 6) 0) The board shall not be required to make any inventory ur appraisal or report tn any conrt, nor to secure any order of court for the exercise rjr'any power contained herein. Where any actmn which Ire board is required to take or any duly or fimcfion which it is required to pcrfimn either under the terms herein or under Ire general law applicable to it as trustee, under this article, can reasonably bc taken or performed only after receipt by it from a mculbcr, tile city, or an3, other entity, of specific reformation, certification, direction or instructions, thc board shall be free of liability m failing to take such actinn or pc~Ibrm such doly or fimction nntd such inforulation, certification, direction or instruction has been received by it. Any overpayments or mlderpayments l¥om thc fnnd u/ a member, retiree or beneficiary caused by errors of computation shall be adjusted with interest at it rate per ammm approved by thc board in snch a manner that thc actmnial equivalent of (l) (m) the benefit tO which thc mcmbcr, retiree or beneficiary was correctly entitled, shall be paid. Overpayments shall be charged against payments next succeeding the correction, or collected in another manner if prudent. Underpayments shall be made up from the fund in a prudent manner. The board shall sustain no liability whatsoever for the sufficiency of the fund to meet the payments and benefits provided for herein. in any application to or proceeding or action in the courts, only the board shall bca necessary party, and no member or other person having an interest in the fend shall be entitled to any notice or service of process. Any judgment entered in such a proceeding or action shall be conclusive upon all persons. Any of the tbregoing powers and fi~nctions reposed in the board may be performed or carried out by thc board through duly authorized agents, provided that the board at all times maintains continunus supervision over the acts of any such agent; provided further, that lcgal title to said fund shall always remain in the board. Sec. 2-265. Contributions. (1) (a) Member contributions. Amount. Each member of the system shall be required to make regular contributions to thc fund in the amount of five and onc4cnth (5.1) percent of his gross pay. Member contributions withheld by thc city on behalf of the member shall be deposited with lhe board immediately after each pay period. The contributions made by each member to the fund shall be designated as employer contributions pursuant to Section 414(h) of thc Code. Such designation is contingent upou the contributions being excluded from thc members' gross income for Federal Income Tax purposes. For all other purposes of thc system, such contributions shall be considered to be mcmber contributions. (b) Method. Such cuntributions shall bc made by payroll deduction. (2) State contributions. Any monies received or receivable by reason of laws of thc State of Florida, for the express ptjrpose offimding and paying lbr retirement benefits lbr police officers of the city shall be deposited in thc fired comprising part of this system immediately and nnder no circumstances more than five (5) days after receipt by thc city. (3) Uity contributions. So long as this system is m effccl, thc city shall make contributions to thc fund in an amonnt cqnal to lhc dillizrcncc in each year, bclxvccn thc total aggregate member contributions lbr thc year, plus state contributions which arc legally available to offset city funding for such year, and the total cost for thc year, as shown by thc most rcccnl actuarial valuation of thc system, but in no event shall thc city's annual contribution be less than ten (10) percent of the total base pay of members tbr lbnding benefits provided for herein, including that in section 2-266(c)(4). Such annual requirement shall bc funded in quarterly installments. Thc total cost for any year shall be defined as the tutal normal cost plus the additional amount sufficient to amortize the unfl~ndcd past service liability as provided in Part VI1 of Chapter I 12, Horida Stalutes. (4) Other. Private donations, girls and contributions may be deposited to thc thnd. but such deposits must bc accounted lbr separately and kept on a segregated bookkccpiug basis. }:uuds arising from these sonrccs may bc used ooly fi~r additional benefits for members, as dctc~mincd by I1 the board, and may not be used to reduce what would have otherwise been required city contributions. Sec. 2-266. Benefit amounts and eligibility. (a) Normal retirement. Normal retirement date. A member's normal retirement date shall be the first day of the month coincident with, or the next following the earlier of the attainment of age fifty-five (55) and the completion of ten (10) years of credited service or the completion of twenty-five (25) years of credited service, regardless of age. A member may retire on his normal retirement date or on the first day of any month thereafter, and each me~nber shall become one hundred (100) percent vested in his accrued benefit on the member's nnrmal retirement date. Normal retirement under the system is retirement from employment with the city on or after thc normal retirement date. (2) Normal retirement benefit. A member retiring hereunder on or after his normal rctircment date shall receive a monthly benefit which shall commence on the first day of thc month coincident with or next following his retirement date and be continued thereafter during member's lifetime, ceasing upon death, but with one hundred twenty (120) monthly payinents guaranteed in any event. The monthly retirement benefit shall equal three and fifty hundredths (3.50) percent of average final compensation, for each year of credited scrvicc. (b) Earl), retirt'ment. (l) Early retirement date. A member may retire on his early retirement date which shall be thc first day of any month coincident with or next following the attainment of age forty-five (45) and the completion of ten (10) years of credited service. Early retirement under tile system is rctiremcnl from employment with the city on or after thc early retirement date and prior tu thc normal retirement date. (2) Earl), retirement benrfit. A member retiring hereunder on his early rctiremeni date may receive either a deferred or an iminediatc monthly retirement benefit payable in the same form as for normal rctiremcnt as follows: A deferred monthly retirement benefit which shall commence on what would have bccn his nom~al retirement date had hc continued employment as a police o~cer and shall be continued on the first (lay of each month thcrcafler. The amount of each such deferred monthly retirement benefit shall be detcrlnincd in the same manner as lbr retire~nent on his normal retirement dale except that credited service and average final compensation shall be determined as of his early retirement date: or An immediate ~nonthly retirement benefit which shall commcnce on his early retirement date and shall be continued on the first day of each month thereafter. Thc benefit payable shall be as determined in paragraph a above. rcduccd by three (3) percent l'tn each year by which the commencement of benefits precedes thc date whicb would have been tile member's normal retirement date had be continued cmpk);onent as a police officer. (c) (1) (2) Pre-retiremdnt death. Prior to vesting or eligibility for retirement. The beneficiary of a deceased member who was not receiving monthly benefits or who was not yet vested or eligible for early or normal retirement and whose death did not result directly from an occurrence arising in the performance of duty, shall receive a refund of one hundred (100) percent of the member's accumulated contributions. Deceased members vested or eligible for retirement. The beneficiary of any membel who dies and who, at the date of his death was vested or eligible for early or normal retirement, shall be entitled to a benefit as follows: lfthe member was vested, but not eligible for normal or early retirement, and the member's death did not result directly from an occurrence arising in the performance of duty, the beneficiary shall receive a benefit payable lbr ten (10) yearn, beginning on the date that the deceased member would have been eligible for early or normal retirement, at the option of the beneficiary. Thc benefit shall be calculated as for normal retirement based on the deceased mmnber's credited service and average final compensation as of thc (late of his death and reduced as for early retirement, if applicable. Thc beneficiary. may also elect to receive an immediate benefit, payable for ten (10) years, which is actuarially reduced to reflect the commencement nfbenefits prio~ to the early retirement date. If the deceased member was eligible for normal or early retirement, thc beneficiary shall receive a benefit payable for ten (10) yearn, beginning on thc first day of the month following the member's death or at the deceased member's otherwise early or normal retirement date, at the option of the beneficiary. The benefit shall be calculated as for normal retirement based on the deceased member's credited service and average final compensation as of the date of his death and reduced as for early retirement, if applicable In any event, if the member's death is caused by the performance of his duties as a police officer (in line of duty), thc beneficiary shall receive a bcncfil payable for ten (10) yearn, beginning on thc first day of thc month following thc member's death. The benefit shall be calculated as for normal rctiremcm (uurcduced) based on thc deceased member's credited service and average final compensation as of the (late of death. The minimum benefit shall hc forty (40) percent of average final compensation. Thc presumptions m subsection (d)(2) of this section shall apply in determining whether a dcalh was in linc of duty. A beneficiary may elect an actuarial equivalent life annuity oplional form of benefit, and the board may elect to make a lump sum payment pursuam m section 2-267, subsection (7). A beneficiary may, in lieu of any benefit provided fur in a. or b. above, elect to receive a refund of the deceased member s accumulate t contribulions. 13 (d) (1) (2) Disabifity. Disability benefits on-duty. Any member who shall become totally and permanently disabled to the extent that he is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a police officer, which disability was directly caused by the performance of his duty as a police officer, shall, upon establishing the same to the satisfaction of thc board, be entitled to a monthly pension equal to three and fifty hnndredths (3.50) percent of base pay at the date of disability for each year of credited service, but in any event the minimum amount to be paid to the member shall be equal to fifty (50) percent of the base pay of the member at the date of disability. Notwithstanding the previous sentence, in the event a member is determined by the board to bc disabled in-line of duty and the disability resulted from the perpetration of an intentional act of violence directed toward the police officer and the board reasonably believes the perpetrator intended to cause great bodily harm or permanent disfigurement of thc police officer, the minimum amount paid to the member shall be eighty (81)) percent of the average final compensation of the member. Terminated persons, either vested or non vested. are not eligible for disability benefits, except that those terminated by thc City for medical reasons may apply for a disability within thirty (30) days after termma0on. On duty presumptions. (a) Presumption. Any condition or impairment of hcalth of a member caused by hypertension or heart disease shall be prcsmncd lo have been suffered in line of duty unless the contrary is shown by competent evidence, provided that such shall have successfully passed a physical examination upon entering into such service, including cardiogram, which examination hiled to reveal any evidence of such condition; and provided further, that such presumption shall not apply to benefits payable or granted in a pnlicy of life insurance or disability insurance. (b) Additionalpresumption. The prcsmnption provided lbr in this subparagraph (b) shall apply only to those conditions describcd m this subparagraph (b) thai arc diagnosed on or after January 1, 1996. 1. . Dg[inilions. As used in this subsection (2)(b), thc lbllnwing definitions apply: "Body fluids" means bloud and body fluids containing visible blood and other body fluids to which universal prccamions tbr prevention of occupational Iransmission of bhmd-burnc pathogens, as established by thc Centers for l)iscasc Conrail. apply. For purposes of polcmial transmissiun of meningococcal meningitis or tuberculosis, the Icrm "body fluids" includes respiratory, salivary, and sinus l]uJ(ls, including droplets, sputtnn, and saliva, nmcous, and olhcr fluids through which infectious airborne organisms can be transmitted between persons. "Emergency rescuc or public salkty mcmbcr" means any member employed fifil time by the city as a firefightc~;. paramedic, emergency medical lechnician, law enfi)rccmcm officer, or correctional officer who, in the course of employment, runs a high risk of occupational exposure to hepatitis, meningococcal meningitis, or tuberculosis and who is not employed elscwhcre in a similar capacity. However, the term "emergency rescue or public safety member" does not include any person employed by a public hospital licensed under Chapter 395, Florida Statutes, or any person employed by a subsidiary thereof. "Hcpatitis" mcans hepatitis A, hepatitis B, hepatitis non-A, hepatitis non-B, hepatitis C, or any other strain of hepatitis gcnerally rccugnized by thc medical community. "tligh risk of occupational exposure" means that risk that is incurred because a person subject to the provisions of this subsection, in pcrtbrming thc basic duties associated with his employment: Provides emergency medical treatment in a non- health-care setting where there is a potential for transfer of body fluids between persons; At thc site of an accident, fire, or other rescue or public safety operation, tlr in an emergency rescue or public safety vehicle, handles body fluids in orout of containers or works with or otherwise handles needles or other sharp instmments exposed to body fluids; iii. Engages in the pursuit, apprehension, and arrest of law violalors or suspected law violators and, in performing such duties, may be exposed to body fluids; or iV, Is responsible for tile custody, and physical restraint when necessary, of prisoucrs or inmates within a prison, jail, or uthct criminal dctcntion t;acility, while on work detail uutsidc thc facility, or while being transported and. in pcrlbnning such duties, may be cxpnscd tn body lluids. "()ccupational exposure," in thc case of hepatitis, nmningocnccal meningitis, or tnberculosis, means an cxpnsurc that occurs during thc performance of job duties that may place a worker at risk of infection. ]~rc6'ltt~q~lto~. Any emergency rescue or public safety member who suffcrs a condition or i~npairmcnt of health that is caused by hepatitis, mcningococcal meningitis, or tuberculosis, that requires medical treatment, and Ihal results in total or partial disability or death shall bc presumed to have a disability suffered in thc line of duty. unless thc contrarv is shown by competent evidence: however, in order to be entitled to [he presumption, thc member must, by written affidavit as 15 provided in Section 92.50, Florida Statutes, verify by written declara- tion that, to the best of his knowledge and belief: In the case of a medical condition caused by or derived from hepatitis, he has not: Been exposed, through transfer of bodily fluids, to any person known to have sickness or medical conditions derived from hepatitis, outside the scope of his employment; ii. Had a transfusion of blood or blood components, other than a transfusion arising out of an accident or injury happening in connection with his present employment, or received any blood products for thc treatment of a coagulation disorder since last undergoing medical tests for hepatitis, which tests failed to indicate the presence of hepatitis; iii. Engaged in unsafe sexual practices or other high-risk behavior, as identified by the Centers for Disease Control or the Surgeon General of the United States or had sexual relations with a person known to him to have engaged in such unsafe sexual practices or other high-risk behavior; or iv. Used intravenous drugs not prescribed by a physician. In the case of meningococcal meningitis, in the 10 days immediately preceding diagnosis he ~vas not exposed, outside the scope of his employment, to any person known to have mcningococcal meningitis or known to be an asymptmnatic carrier of the disease. In the case of tuberculosis, in the period of time since thc member's last negative tuberculosis skin test, he has not been exposed, outside the scope of his mnployment, tu any person known by him to have tuberculosis. Immunization. Whenever any standard, medically recognized vaccine or other form of immunization or prophylaxis exists tbr thc prevention of a communicable disease lbr which a presumption is granted under this section, if medically indicated in thc given circmnstances pursuant to immunization policies established by the Advisory Committee on Immunization Practices of the U.S. Public Health Service, an emergency rescue or public safety member may bc required by the city to undergo the immunization or prophylaxis unless the me~nber's physician determines in writing that ~hc immunization or other prophylaxis would posc a siguificant risk to the member's health. Absent snch written declaration, failure or refusal by an emergency rescue or public safety member to undergo 16 (3) (4) such immunization or prophylaxis disqualifies the member from the benefits of the presumption. Record of exposures. The city shall maintain a record of any known or reasonably suspected exposure of an emergency rescue or public safety member in its employ to the disease described in this section and shall immediately notify the member of such exposure. An emergency rescue or public safety member shall file an incident or accident report with the city of each instance of known or suspected occupational exposure to hepatitis infectiom mcningococcal meningitis, or tuberculosis. Required medical tests; preemployment physical. In order lo be entitled to the presumption provided by this section: An emergency rescue or public safety member must, prior to diagnosis, have undergone standard, medically acceptable tests for evidence of the communicable disease for which thc presumption is sought, or evidence of medical condifions derived therefrom, which tests fail to indicate the presence of infection. This paragraph does not apply m thc case of meningococcal meningitis. On or after June 15, 1995, an etnergcncy rescue or public safety member may be required tu undergo a preemploymcnt physical examination that tests lbr and fails to reveal any evidence of hepatitis or tuberculosis. Disability benqfits off-duty. Any member with five (5) years or more credited service who shall become totally and permanently disabled to thc extent that hc is unable, by reason ora medically detem~inable physical or mental impairment, to render uscfid and efficient service as a police officer, which disability is not directly caused by thc performance of his duties as a police officer shall, upon establishing thc same m the satisfaction of the board, be entitled to a monthly pension equal to three and fifty hundredths (3.50) percent of base pay at the date of disability for each year of credited service. Terminated persons, either vested or non-vested, are not eligible disability benefits, except that thosc tcrrninatcd by thc City for medical reasons may apply for a disability within thirty (30) days after termination. Conditions disqualifying disabilit3'benqfits. Each member who is claiming disabdity benefits shall establish, to thc satisfaction of thc board, that such disability w~s occasioned primarily by: a. Excessive or habitual usc of any drags, intoxicants or narcotics. Injury or disease sustained while willfully and illegally partic~pm mg in lights. riots or civil insurrections or while committing a crime c. Injury or disease sustained while serving in any branch of the Armed Forces. Injury or disease sustained after his employment as a police officer with ihc City of Sanford shall have terminated. 17 (5) (6) Injury or disease sustained by the member while working for anyone other than the city and arising out of such employment. Physical examination requirement. A member shall not become eligible for disability benefits until and unless he undergoes a physical examination by a qualified physician or physicians and/or surgeon or surgeons, who shall be selected by the board for that purpose. The board shatl not select the member's treating physician or surgeon for this purpose except in an unusual case where the board determines that it would be reasonable and prudent to do so. Any retiree receiving disability benctits under provisions of this article may be required by the board to submit sworn statements of his condition accompanied by a physician's statement (provided at the retiree's expense) to the board annually and may be required by the board to undergo additional periodic re-examinations by a qualified physician or physicians and/or surgcon or surgeons who shall be selected by the board, to determine if such disability has ceased to exist. If the board finds that the retiree is no longer permanently and totally disabled to the extent that he is unable to render, useful and efficicnt service as a police officer, thc board shall recommend to the city that the retiree be returned to performance of duty as a police officer, and the retiree so returned shall enjoy the same rights that he had at the time he was placed upon pension. In the event the retiree so ordered to return shall refuse to comply with the order within thirty (30) days from the issuance thereof, he shall forfeit thc right to his pension. Thc cost of the physical examination and/or reexamination of the member claiming or the retiree receiving disability benefits shall be borne by the fund. All other reasonable costs as determined by the board incident to the physical examination, such as, but not limited to, transportation, mcan and hotel accommodations, shall be borne by the fund. If the member recovers from disabibty and reenters thc service of the city as a police officer, his service will be dccmcd to have been continuous, but the period beginning with the first month tbr which hc received a disability retirement income payment and ending with the date he rccntcred the service of the city will not bc considcred as credited service lbr the purposes of thc system. The board shall have thc power and authority to make the final decisions regarding all disability claims. Dixabili~payments. Tbe monthly benefit to which a member is entitled in the event of the member's disability rctircmem shall bc payable on the first day of thc first month aftcr thc board determines such entitlement. } lowevcr, the monlhly rctiremcnt income shall be payablc ils of thc date ibc board dcterufined such entitlement, and any portion duc for a partial montb sbatl be paid together with thc first payment. The last payment will be: If the retiree recovers from tile disability prior to his normal retirement date, the payment duc ncxl preceding thc dale of such recovery, or 18 If the retiree dies without recovering from disability or attains his normal retirement date while still disabled, the payment due next preceding his death or the one hundred twentieth monthly payment, whichever is later. Provided, however, the disability retiree may select, at any time prior to the date on which benefit payments begin, an optional forin of benefit payment as described in section 2-267, subsection (l)(a) or (1)(b), which shall be the actuarial equivalent of the normal form of benefit. (7) Workers'compensation. When a retiree is receiving a disability pension and workers' compensation benefits pursuant to Florida Statutes, Chapter 440 and/or any other disability benefit provided by thc city, for the same disability, and the total monthly benefits received from all sources exceeds one hundred (100) percent of the member's average monthly wage, as defined in Chapter 440, Florida Statutes. the disabilily pension benefit shall be reduced so that the total monthly amount received by the retiree does not exceed one hundred (100) percent of average monthly wage Thc amount of any lump sum workers' compensation payment shall bc converted to an equiwllcnt monthly benefit payable for ten (I O) years certain by dividing thc lump sum amount by 83.9692. Notwithstanding thc foregoing, in no event shall thc disability pension benefit be reduced below the greater of tbrty-two percent (42%) of average final compensation or two percent (2%) of average final compensation times years of credited service. (e) Vesting. Ifa member terminates his employment as a police officer, either voluntarily or by discharge, and is not eligible for any other benefits under this system, the member shall entitled to the lbllowing: If the ~ncmber has less than ten (10) years credited service upon tcrminatiom the member shall be entitled to a refund of his accumulated contributions, or the member may leave it deposited with the fund. (2) If thc terminated member has ten (I0) or more years of credited service upon terminatiom thc member shall be entitled to a monthly retirement benefit, determined in thc same manner as tbr normal or early retirement and based upon the member's credited service, average final compensation and the benefit accrual rate as of thc date of termination, payable to him commencing at member's otherwise normal or early retirement date. dcler~nincd as if he had remained employed, provided Itc docs not elect to withdraw his accumulated contributions, and provided member stow'ives to his othm;visc early or normal retirement date. If the member docs not withdraw his accumulated contributions and does not survive to his otherwise normal or early retirement date, his designated beneficiary shall be entitled to a benefit as providc~.l herein lBr a deceased member, vested or eligible lbr retirement tinder Pre-retirement death. (3) In the event a member elects to receive }lis accumulated contributions m lieu of am,' benefits hereunder, he shall also receive an additional lump-sum amount equal (5) percent of thc member's base pay for all years of credited service since Octubcr 1, 1976. 19 (0 (1) (2) Maximum pension. Basic limitation. Subject to the adjustments hereinafter set tbrth, thc maximum amount of mmual retirement income payable with respect to a member under this system shall not exceed one hundred sixty thousand dollars ($160,000.00). For purposes of applying the above limitation, benefits payable in any tbrm other than a straight life annuity with no ancillary benefits shall be adjusted, as provided by Treasury Regulations, so that such benefits are the actuarial cquJvalcm of a straight life annuity. For purposes of this subsection, the following benefits shall not be taken into account: Any ancillary benefit which is not directly related to retirement income benefits; Any other benefit not required under Section 415(b)(2) of thc [Inlemal Revenue] Code and Regulations thereunder to be taken into account for purposes of the limitation of Section 415(b)(I) of the [Internal Revenue Code. Participation in other defined bengfitplans. The li~nitation of this subsection ~vith respect to any ~nember who at any time has been a member in any olhcr defined benefit plan (as defined in Section 4140) of thc [Internal Rcvenuc] Code) maintained by the city shall apply as if the total benefits payable under all dc fined bcnelh plans in which the member has been a member were payable from nnc ( I ) plan. (3) Adjustments in limitations. In the event the member's retirement benefits become payable bel¥>rc age sixty-two (62), the one hundred sixty thousand dollar ($160.000.00) limitation prescribed by this subsection shall be reduced m accordance with regulations issued by the Secretary of thc Treasury pursuant to thc provisions of Section 415(b) of the [intemal Revenue} Code, so that such limitation (as so reduced) equals an annual benefit (beginning when such retirement income benefit begins) which is equivalent to a one hundred sixty lhousand dollar ($160,000) annual benefit beginning at age sixty-two (62). In the event the member's benefit is bascd on at least fifteen ( 15 ) 3'cms of credited service, the a4iustmcnts provided for in a. above shall not appl) The reductions provided for in a. above shall not bc applicable to disability benefits paid pursuant to Sec. 2-266, Benefits amounts and eli~ibilitl,. subsection (d), or pre-retirement death benefits paid pursuant to Sec 2 266~ Benefit amounts and eligibility, snbsection (cl. If the member's retirement benefit becomes payable after age sixty-risc (65 l, for purposes of determining whether this benefit meets thc limitation sci in section 2-265(0(1) herein, such benefit sball bc adjusted so that ii is actuarially equivalent to thc benefit beginning at age sixty-five (65) Ibis at[justmcnt shall be made in accordance witb regulations promulgated by thc Secretary of the Treasury or his delegate. 20 (4) (5) (6) (7) (8) Less than tenyears of service. The maximum retirement benefits payable under this subsection to any member who has completed less than ten (10) years of credited service with the city shall be the amount determined under section 2-265(f)(1) ~nultiplied by a fraction, the numerator of which is the number of the member's years of credited service and the denominator of which is ten (10). Thc reduction provided for in this subsection shall not be applicable m disability benefits paid pursuant to Sec. 2-266, Benefits amounts and eligibility, subsection rd), or pre-retirement death benefits paid pursuant to Sec. 2-266, Benefit amounts and eligibility, subsection (c). $10,000. O0 limit. Notwithstanding the foregoing, the retirement benefit payable with respect to a member shall be deemed not to exceed the limitations set fbrth in this subsection if the benefits payable, with respect to such member under this system and under all other qualified defined benefit pension plans to which the city contributes, do not exceed ten thousand dollars ($10,000.00) for the applicable plan year and for any prior plan year and the city has not at any time maintained a qualified defined contribution plan in which the member participated. Reduction qfbene, fits. Reduction of benefits and/or cnntributions to all plans, where required, shall be accomplished by first reducing thc anember's benefit under any defined benefit plans in which member participated, such reduction to be made first with respect to the plan in which member most recently accrued benefits and thereafter in such priority as shall be determined by thc board and the plan administrator of such other plans, and next, by reducing or allocating excess forfeitures for defined contribution plans iu which the member participated, such reduction to bc made first with respect to the plan iai which member most recently accrued benefits and thereafter in such priority as shall bc established by the board and the plan administrator for such other plans provided, however, that necessary reductions may be made in a different manner and priority pursuant to the agreement of the board and the plan administrator of all othcr plans covering such member. Cost qf-living a4justments. Thc limitations as stated in subsections (1)( I ), (t)(2) and (0(3) herein shall be adjusted to the time pa)qncnt ora benefit begins in accordance with any cost-of-living ac[justments prescribed by thc Secretary of the Treasury pursuant to Section 415(d) of the [lntemal Revenue] Code. Additional li*n~tation on pension benefits. Notwithstanding anything herein to the contrary: The normal retirement benefit or pension payable to a retiree who becomes a member of the system and who has nnt previously participated in such system, on or alter January I, 1980, shall not exceed ()nc hundred (I00) percent of his average final compensation, ltowcver, nothing contained m this subsection shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-living increases or adjustments. No member of thc system shall be allowed to ~cccivc a retirement bcnctit oa pension which is in part or in whole based upon any service with respect to which the member is already receiving, or will receive m thc future, a retirement benefit or pension from a difl~rent employer's retircmcm system or plan. This restriction docs not apply to social sccnrity benefits oa fr.'doral benefits under (?hap(er 67, Ti(lc }0, [J.g. Code. 21 (g) Minimum distribution of benefits. ( 1 ) General rules. (2) Effective date. The provisions of this section will apply for purposes of determining required ~ninimum distributions for calendar years beginning with the 2003 calendar year. Precedence. The requirements of this section will take precedence over any inconsistent provisions of the plan. Requirements of Treasury regulations incorporated. Ail distributions required under this section will be determined and made in accordance with the Treasury regulations under section 401(a)(9) of the Code. TEFRA section 242(b)(2) elections. Notwithstanding the other provisions of this section other than this subsection ( 1 )d., distributions may be made under a designation made before January 1, 1984, in accordance with section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the plan that related to section 242(b)(2) of TEFRA. Time and manner qf distribution. Required beginning date. The member's entire interest will be distributed, or begin to be distributed, to the member no later than the member's required beginning date which shall not be later than April I of the calendar year following the later of the calendar year in which the member attains age seventy and one-half(70 ½) or the calendar year in which the member retires unless otherwise provided for in the plan or required by law. Death of member bejbre distributions begin. If the me~nbcr dies bcfbrc distributions begin, thc member's entire interest will be distributed, or begin 1o be distributed no later than as follows: If thc member's snrviving spouse is the member's sole designalcd beneficiary, then distributions to thc surviving spouse will begin by Dcccmbcr 31 of thc calendar year immediately following thc calendar year in which the member died, or by December 31 of the calendar year in which thc member would have attained age 70 '/2, if later. If the member's surviving spouse is not the member's sole designated beneficiary, then, distributions to the designated beneficiary will begin by December 31 of thc calendar year immediately fbllowing thc calendar year in which the member died. If there is no designated beneficiary as of September 30 of thc year following thc year of the member's death, the member's entire in[cryst will be distributed by December 31 of thc calendar year contmmng the fifth anniversary of the member's death. 22 (3) If the member's surviving spouse is the member's sole designated beneficiary and the surviving spouse dies after the member but before distributions to the surviving spouse begin, this subsection (2)b., other than subsection (2)b.l., will apply as if the surviving spouse were thc member. For purposes of this subsection (2)b. and subsection (5), distributions are considered to begin on the member's required beginning date or, if subsection (2)b.4. applies, the date of distributions are required to begin to the surviving spouse under subsection (2)b.l. If annuity payments irrevocably commence to the member before the member's required beginning date (or to the member's surviving spouse before the date distributions are required to begin to the surviving spouse undcr subsection (2)b.l.) the date distributions are considered to begin is the date distributions actually commence. Form of distribution. Unless the member's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning date, as of the first distribution calendar year distributions will be made in accordance of subsections (3), (4) and (5) of this section. If the member's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordancc with the requirements of section 401(a)(9) of thc Code and Treasury regulations. Any part of the member's interest which is in the form of an individual account described in section 414(k) of the Code will be distributed in a manner satistying thc requirements of section 401 (a)(9) of the Code and Treasury regulations that apply to individual accounts. Determination pf amount to be distributed each year. General annuiO~ requirementx. If the me~nber's interest is paid in the form of annuity distributions under the plan, payments undcr thc annuity will satisfy the following requirements: 1. The annuity distributions will bc paid in periodic payments made at . intervals not longer than onc year. The distribution periud will be over a life (or lives) or over a period certain not tongcr than thc period described m subsection (4) or (5). Once payments have begun over a period certain, thc period ccrtain will not be changed even if the period certain is shorter than thc maximum permirted. 4. Payments will either be nonincreasing or increase only as follows: By an annual percentage increase that does not exceed the cumulative annual percentage increase in a cost-of-living index that is based on prices of all items and issued by the Burcau of I.abor Statistics ot by a fixed annual increase of l]vc percent or less. 23 (4) ii 'Fo the extent of the reduction in the amount of the member's payments to provide for a survivor benefit upon death, but only if the beneficiary whose life was being used to determine the distribution period described in subsection (4) dies or is no longer thc member's beneficiary pursuant to a qualified domestic relations order within thc meaning of section 414(p). iii To provide cash refunds of accumulated contributions upon the member's death. iv To pay increased benefits that result from a plan amendment. Amount required to be distributed by required beginning date. The amount that must be distributed on or before the member's required beginning date (or, if the member dies before distributions begin, the date distributions are required to begin under subsection (2)b.1. or (2)b.3~) is the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are thc periods for which payments are received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the member's benefit accruals as of the last day of the first distribution calendar year will be included in the calculation of the amount of thc annuity payments for payment intervals ending on or after thc mc~nber's required beginning date. Additional accruals after.first distribution calendar year'. Any additional benefits accruing to the member in a calendar year after the first distribntion calendar year will be distributed beginning with thc first payment interval ending in the calendar year immediately following thc calendar year in which such amount accrues. Requirementx fi>r annuity distributions that commence during a member g' I~f~time. doinl life annuities where the beneficiary is not the member~' 37;ouse. If the member's interest is being distributed in the form of a joint and survivor annuity for the joint lives of the member and a nonspouse beneficiary, annuity payments to be made on or after the member's required beginning dale to the designated beneficiary after the member's death must not m any lime exceed the applicable percentage of the annuity payment fur such period that would have been payable tn the member using thc table scl fimh in Q&A 2 of section 1.401(a)(9)-6TofthcTreasuryrcgulations. If the form of distribution combines a joint and snrvivor annuity for the joint lives of thc member and a uonspouse bcncficiaiy and a period certain annuity, the requirements in the preceding sentence will apply to ammity payments ~obc made to the designated beneficiary_ after the expiration of thc period certain. Period certain annuities. Unless the member's spouse is the sole designated beneficiary and the form of distribution is a period certain and no bfe annuity, the period certain l~r an annuity distribution commcnciug during thc member's lifetime may not exceed the applicable dismbution period fi~r the member tinder thc Unifurm l~ifetime Table scl limb in section 1.401(a)(9)-9 of the Treasury rcgulaftons for thc calendar year 0ml contains thc annuity 24 begin. (5) startihg date. If thc annuity starting date precedes the year in which the member reaches age 70, the applicable distribution period for the member is the distribution period for age 70 under the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the Treasury regulations plus the excess of 70 over the age of the member as of the {nember's birthday in the year that contains the annuity starting date. If the member's spouse is the member's sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain may not exceed the longer of the member's applicable distribution period, as determined under this subsection (4)b., or the joint life and last survivor expectancy of the member and the member's spouse as determined under the Joint and Last Survivor 'Fable set forth in section 1.401 (a)(9)-9 of the Treasury regulations, using thc member's and spouse's attained ages as of the member's and spouse's birthdays in the calendar year that contains the annuity starting date. Requirernents fl)r minimum distributions where member diex bt~fore date distributionx Member survived by designated beneficiary. If the member dies before thc date distribution of his or her interest begins and there is a designated beneficiary, the member's entire interest will be distributed, beginning no later than the time described in subsection (2)b. 1. or (2)b.2. over thc life of the designated beneficiary or over a period certain not exceeding: 1. Unless the annuity starting date is bclBrc thc first distribution calendar year, the life expectancy of the designated beneficiary determined using the bcneficiary's age as of the bone ficiary's birthday in the calendar year immediately following the calendar year of thc member's death. 2. If the annuity starting date is before the first distribution calendar year, the life expectancy of thc designated beneficiary, dctcrnfincd using thc beneficiary's age as of thc bencficiary's bii'thday in calendar year the contains the annuity starting date. No dosignated beneficialy. If the ~ncmber dies before thc date distributions begin and there is no designated beneficiary as of September 30 of thc year following the year of the member's death, distribution of thc member's entire interest will be completed by Dccembc~ 31 of Irc calendar year containing the fifth anniversary of the member's death. Death qf surviving ~i)ouse bqfbre distrib1~tionx lo surviving xl~ouxe begin. If the member dies before the date dislribution of his interest begins, thc member's surviving spouse is the member's sole designalcd beneficiary, and thc surviving spouse dies before distributions to the surviving spouse begin, this subsection (5) will apply as if the surviving spouse were the member, except that the time by which distributions must begin xvill bc determined without regard to subsection (2)b. 1. 25 (6) Definitions. (2) (h) (l) a. Designated beneficiary. The individual who is designated as the beneficiary under the plan and is the designated beneficiary under section 401(a)(9) of the Code and section 1.401 (a)(9)- l, Q&A4, of the Treasury regulations. b. Distribution calendar year. A calendar year for which a minimmn distribution is required. For distributions beginning before thc member's death, the first distribution calendar year is the calendar year immediately preccding the calendar year which contains the member's required begimfing date. For distributions beginning after the member's death, thc first distribution calendar year is the calendar year in which distributions are required to begin pursuant to subsection (2)b. c. (-~,ex~ectancy. Life expectancy as computed by use o fthe Single Life Table ~n sectmn 1.401(a)(9)-9 of the Treasury regulations. d. Required beginning date. Thc date specified in subsection (2)a. Forfeiture of pension. Any member who is convicted of the lbllowing offenses committed prior tu retirement, or whose employment is terminated by reason of bis admitted commission, aid or abetment of the following specified offenses, shall forfeit all rights and benefits under this system, except for the return of his accumulated contributions as of the date of termination. Specified offenscs are as follows: a. Thc committing, aiding or abetting of art embezzlement of public funds; b. The committing, aiding or abetting of any theft by a public officer or employee from employer; c. Bribery in connection with thc employment ora public officer or employee; d. Any felony specified in Chapter 838, Florida Statutes. c. The committing ()fan impeachable offcnse. f. Thc committing of any felony by a pubbc officer or employee who. willfully and with intcnt to defraud thc public or the public agency, for which hc acts or in which hc is employed, of thc right to receive the faith fid pcrfnrmancc of his duty as a pnblic officer or employee, realizes or obtains or atte~npts to ubtain a profit, gain, or advantage for himself or for some other person through the nsc or attempted use of the power, rights, privileges, duties or position of his public office or employment position. Conviction shall be defined as an adjudication of guilt by a court of competent jnrisdiction: a plea of guilty or a nolo contenders; a jury verdict of guilty when adiudication of guilt is withheld and thc accused is placed on ~robation; or a conviction by the Senate of an ilnpeachable ot]~use. 26 (3) (4) Court shall be defined as any state or federal court of competent jurisdiction which is exercising its jurisdiction to consider a proceeding involving the alleged commission of a specified offense. Prior to forfeiture, the board shall hold a hearing on which notice shall be given to the member whose benefits are being considered for forfeiture. Said member shall be afforded the right to have an attorney present. No formal roles of evidence shall apply, but the member shall be afforded a full opportunity to present his case against forfeiture_ Any member who has received benefits from the system in excess of his accumulated contributions after member's rights were forfeited shall be required to pay back to the fund the amount of the benefits received in excess of his accumulated contributions. Tbc board may implement all legal action necessary to recover such funds. (i) Conviction andJbrfeiture; false, misleading or fraudulent statements. It is unlawful for a person 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 written statement or withhold or conceal material information to obtain any benefit from the system. (2) A person who violates subsection (1) commits a misdemeanor of the first degree, punishable as provided in Section 775.082 or Section 775.083, Florida Statutes. (3) In addition to any applicable criminal penalty, upon conviction for a violation described in subsection (1), a member or beneficiary of the system may, in the discretion of the board, be required to forfeit the right to receive any or all benefits to which the person would otherwise be entitled under the system. For purposes of this subsection, "conviction" means a determination of guilt that is the result ora plea or trial, regardless of whether adjudication is withheld. Sec. 2-267. Optional forms of benefits. ( 1 ) In lieu of the amount and form of retirement income payable in the event ofnnrmal or early retirement as specified herein, a member, upon written request to the board, may elect to receive a retirement income or benefit of equivalent actuarial value payable in accordance with one of thc following options: (a) A retirement income of a monthly amount payable to the retiree fur his lifetime only. (h) A retirement income of a modified monthly amount, payable to thc retiree (luring the lifetime of the retiree and following the death of the retiree, one hundred (100) percent, seventy-five (75) percent, sixty-six and two-thirds (66 2/3) percent or fifty (50) percent of such monthly amount payable to a joint pensioner for his lifetime. Except where thc retiree's joint pensioner is his spouse, the payments to the joint pensioner as a percentage of thc payments to the retiree shall not exceed the applicable percentage provided fur in the applicable table in the Treasury Regulations. (c) I f a member retires prior to thc time at which social security benefits are payable, he may elect to receive an increased retirement benefit until such time as social security benefits shall bc assumed to conuncnce and a reduced benefit thereafter in order to 27 provide, to hs great an extent as possible, a more level retirement allowance during the entire period of retirement. The amounts payable shall be as recommended by the actuaries for the system, based upon the social security law in effect at the time of the member's retirement. (2) The member, upon electing any option of this section, will designate thc joint pensioner (subsection (1)(b) above) or beneficiary (or beneficiaries) to receive the benefit, if any, payable under the system in the event of member's death, and will have thc power to change such designation from time to time. Such designation will name a joint pensioner or one or more primary beneficiaries where applicable. A member may change his beneficiary at any time. lfa member has elected an option with a joint pensioner and the membcr's retirement income benefits have commenced, the member may thereafter change his designated beneficiary at any time, but may only change his joint pensioner twice. Subject to the restriction in the previous sentence, a member may substitute a new joint pensioner for a deceased joint pensioner. Effective January 1, 2005, any current retiree, regardless of his date of retirement, may elect the options provided for in this subsection (2). (3) Thc consent of a member's or retiree's joint pensioner or bcncficiary to any such change shall not be required. The rights of all previously dcsignatcd beneficiaries to receive benefits under the system shall thereupon cease. (4) Upon change of a retiree's joint pensioner in accordance with this section, the amount of thc retirement income payable to the retiree shall be actuarially rcdetem~ined to take into account the age of thc former joint pensioner, the new joint pcnsioncr and thc retiree and to ensure that thc benefit paid is the actuarial equivalent of the present value of the retiree's then-current benefit at the time of the change. Any such retiree shall pay the actuarial recalculation expenses. Each rcqucst for a change will be made in writing on a form prepared by the board and on completion will be filed with the board. In the event that no designated beneficiary survives the retiree, such benefits as are payable in the event of the death of the retiree subsequent to his retirement shall be paid as provided in section 2-262(2). (5) Retirement income payments shall be madc under the option elected in accordance with the provisions of this section and shall be subject tO the following limitations; (a) If a member dies prior to his normal retirement date or early retirement date, whichever fi~st occurs, no retirement benefit will be payable under the option to any pcrson, but the benefits, if any, will be determined under section 2-266(c). (b) If the designated beneficiary (or beneficiaries) or .joint peusioner dies belBrc the member's rctircment under thc system, thc option clcctcd will bc canceled automatically and a retirement incomc of thc normal form anti amount will bc payable to thc member upon his retirement as if thc election had not been made, unless a new clcction is made in accordance with thc provisions of this section or a new beneficiary is designated by the member prior to his retirement. (c) If both the retiree and the beneficiary. (or bcncficiarics) designated by member or retiree die before the full payment has been effected under any option providing fi)r payments for a period certain and life thereafter, made pursuant to the provisions of subsection ( I ), thc board may, in its discretion, dircct that thc commuted value of thc remaining payments be paid in a lump sum and Jn accordauce with section 2-262(2). 28 (d) If a member ~:ontinues beyond his normal retirement date pursuant to the provisions of section 2-266(a)(1), and dies prior to his actual retirement and while an option made pursuant to the provisions of this section is in effect, monthly retirement income payments will be made, or a retirement benefit will be paid, under the option to a beneficiary (or beneficiaries) designated by the in the amount or amounts computed as if the had retired under the option on the date on which his death occurred. (6) A refirce may not change his retirement option after the date of cashing or depositing his first retirement check. (7) Notwithstanding anything herein lo thc contrary, the board in its discretion, may elect to make a lump sum payment to a member or a member's beneficiary in the event that the monthly benefit amount is less than one hundred dollars ($t00.00) or the total commuted value of the remaining monthly income payments to bc paid do not exceed five thousand dollars ($5,000.00). Any such payment made to any person pursuant to the power and discretion conferred upon the board by the preceding sentence shall operate as a complete discharge of all obligations under the system with regard to such member and shall not be sul~iecl to review by anyone, but shall be final, binding and conclusive on all persons. Sec. 2-268. Claims procedures. (1) The board shall establish administrative claims procedures to be utilized in processing written requests ("claims"), on matters which affect the substantial rights of any person ("Claimant"), including members, retirees, beneficiaries, or any person affected by a decision of the board. (2) The board shall have the power to subpoena and require the attendance of witnesses and the production of documents for discovery prior lo and at any proceedings provided for in the board's claims procedures. The claimant may request in writing the issuance of subpoenas by the board. A reasonable fee may be charged for thc issuance of any subpoenas not to exceed the fees set forth in Florida Statutes. Sec. 2-269. Miscellaneous provisions. (1) Interest of members in system. At no time prior to the satisfaction of all liabilities under the system with respect to retirees and members and their spouses or beneficiaries, shall any part of the corpus or income of thc fund be used for or diverted to any purpose other than for their exclusive benefit. (2) No reduction (?['accrued benqfits. No amendment or ordinance shall be adopted by the city commission which shah havc thc cfi'cot of reducing thc then vested accrued bcnetits of members' or a member's beneficiaries. (3) Domestic relations orders, retiree direr ted ]~ffvme~Jts; exemption from execution, nonassignability. (a) Domestic' relations orders. Prior to the entry of any domestic rclalions order which all;eels or pnrporls to affect the system's rcspensibility in connection with the payment of benefits of a retiree, tile member or retiree shall subnrit the proposed order 1o thc 29 board for rcview to determine whether the system may legally honor the order. If a domestic relations order is not submitted to the board for review prior to entry of the order, and the system is ordered to take action that it may not legally take, and thc system expends administrative or legal fees in resolving thc matter, the member or retiree who submits such an order will be required to reimburse the system for its expenses in connection with the order. (b) Retiree directed payments. The board may, upon written request by a retiree or by a dependent, when authorized by a retiree or the retiree's beneficiary, authorize thc system to withhold from the monthly retirement payment those funds that are necessary to pay for the benefits being received through the city, to pay the certified bargaining agent of the city, and to make any payments for child support or alimony. (c) Exemption from execution, non-assignability. Except as otherwise provided by law, the pensions, annuities, or any other benefits accrued or accruing to any person under the provisions of this article and the accumulated contributions and the cash securities in thc fund created under this article are hereby exempted from any state, county or municipal tax and shall not be subject to execution, attachment, garnishment or any legal process whatsoever and shall be unassignable. (4) Pension validity. The board shall have the power to examine into the facts upon wbich any pension shall heretofore have been granted under any prior or existing law, or shall hereafter be granted or obtained erroneously, fraudulently or illegally for any reason. The board is empowered to purge the pension rolls or correct the pension amount of any person heretofore granted a pension under prior or existing law or any person hereafter granted a pension or heretofore granted under this article if the same is found to be erroneous, fraudulent or illegal for any reason; and to reclassify any person who has heretofore under any prior or existing law been or who shall hereafter under this article be erroneously, improperly or illegally classified. Any overpayments or underpayments shall be corrected and paid or repaid in a reasonable manner determined by the board. (5) Qualification (t['.wstem. It is intended that the system will constitute a qualified public pension plan under the applicable provisions of the Code, as now in effect or hereafter amended. Any modification or amendment of the system may be made retroactively, if necessary or appropriate, to qualify or maintain the System as a Plan meeting the requirements of the applicable provisions of thc Code as noxv in effect or hereafter amended, or any other applicable provisions of thc U.S federal tax laws, as now in effect or hereafter amended or adopted, and the regulations issued thereunder. (6) Uset?ffi~(feitures. Forfeitures arising from terminations of service of members shall se~we only to reduce future city contributions. Sec. 2~270. Repeal or termination of system. ( 1 ) This article establishing thc system and fund, and subsequent ordinances pertaining to said system and fund, may be modified, terminated, or amended, in whole or in part; provided lhat if this or any subsequent ordinance shall bc amended or repealed th its application to any person benefiting hereunder, the amount of benefits which at the time of any such alteratiom amendment, or repeal shall have accrued to the member or beneficiary shall not be affected thereby, except to thc extent that thc assets of the fund may be determined to be inadequate. 3{) (2) If this articleshall be repealed, or if contributions to the system are discontinued, or if there is a transfer, merger or consolidation of government units, services or functions as provided in Chapter 121, Florida Statutes, the board shall continue to administer the system in accordance with the provisions of this article, for the sole benefit of the then members, any beneficiaries then receiving retirement allowances, and any future persons entitled to receive benefits under one of the options provided for in this article who are designated by any of said members. In the event of repeal, discontinuance of contributions or transfer, merger or consolidation of government units, services or functions or if contributions to the system are discontinued, there shall be full vesting (100%) of benefits accrued to date of repeal and the assets of the systcm shall be allocated in an equitable manner to provide benefits on a proportionate basis to thc persons so entitled m accordance with the provisions thereof. (3) The following shall be the order of priority for purposes of allocating thc assets of the system as of the date of repeal of this article, or if contributions to the system are discontinued with the date of such discontinuation being determined by the board. (a) Apportionment shall first be made in respect of each retiree receiving a rcfircmcm or disability benefit hereunder on such date, each person receiving a benefit on such date on account of a retired or disabled (but since deceased) membcr~ ami each member who has, by such date, become eligible for nomml retirement but has not yet retired, an amount which is the actuarial equivalent of such benefit, provided that. it' such asset value be less than the aggregate of such amounts, such amotmts shall be proportionately reduced so that the aggregate of such reduced amounts will bc equal to such asset value. (b) If there be any asset value remaining after the apportionment under paragraph (3)(a) above, apportionment shall next be made in respect of each member in the service of the city on such date who is vested and who is not entitled to an apportionmcm under paragraph (3)(a) above, in the amount required to provide thc actuarial equivalent of the vested portion of the accrued noru~al retircment bcncfiL but not less than accumulated contributions (but not less than accumulated comribmiuns), based on the credited service and average final compensation as of such date. and cach vested former member then entitled to a deferred benefit who has not, by such date. begun receiving benefit payments, in the amount required to provide said actuarial equivalent of the vested portion of the accrued normal retirement benefit, provided that, if such.remaining asset value be less than the aggregate of thc amotmts apportioned hereunder, such latter amounts shall be proportionately reduced st) that the aggregate of such reduced amounts will be equal to such remaining asset value. (c) I fthere be any asset value after the apportionmcnts undcr paragraphs ( 3 )(a) a nd (X)I b) above, apportionment shall be made in respect of each member m the service ollhc city on such date who is not entitled to an apportionment under paragraphs 13){ a I and (3)(b) above in the amount equal to member's accumulated cmnribntions, prox idcd that, if such remaining asset value be less than the aggregate of the amotmls apportioned hereunder such latter amount shall be proportionately reduced so thai thc aggregate of such reduced amounts will be equal to such remaining asscl value (d) If there be any asset value remaining after thc apportionments undc~ t)aragml*hs (3)(a), (3)(b), and (3)(c) above, apportionment shall lastly be made in respect of each member included in paragraph (3)(c) above to the extcm of the actuarial cquix aleut of the non-vested accrued normal retirement benefit~ less the amount appmliunctl m paragraph (3)(c), based on the credited scrvice and average final compensatmn as ol 31 (e) such date, prbvided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such amounts shall be reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. In the event that there be asset value remaining after the full apportionment specified in paragraphs (3)(a), (3)(b), (3)(c), and (3)(d), such excess shall be returned to the city, less return of the state's contributions to the stale, provided that, if the excess is less than the total contributions made by the city and the state to the date of termination such excess shall be divided proportionately to the total contributions made by the city and the state. The allocation of the fund provided for in this subsection may, as decided by the board be carried out through the purchase of insurance company contracts to provide the benefits determined in accordance with this subsection. The fund may be distributed in one sum to the persons entitled to said benefits or the distribution may be carried out in such other equitable manner as the board may direct. The fund may be continued in existence lbr purposes of subsequent distributions. If, at any time during the first ten (10) years after the effective date of the ordinance originally establishing this system, the system shall be terminated or the full current costs of the system shall not have been met, anything in the system to the contrary notwithstanding, city contributions which may be used for the benefit of any one of the twenty-five (25) highest paid members on the effective date, whose anticipated annual rctircment allowance provided by the city's contributions at member's normal retirement date woukt exceed one thousand five hundred dollars ($1,500.00), shall not exceed the greater of either a) twenty thousand dollars ($20,000.00), or b), an amount computed by multiplying the sxnaller often thousand dollars ($10,000.00) or twenty (20) percent of such member's average annual earnings during his last five (5) years of service by the number of years of service since the effective date. In the event that it shall hereafter be determined by statute, court decision, ruling by the Commissioner of Internal Revenue, or otherwise, that the provi sions of this paragraph arc not then necessary to qualil~, the system under the [lntemal Revenue] Code, this paragraph shall be ineffective without the necessity of further amendment of this article. (4) After all the vested and accrued benefits provided hereunder have been paid and after all other liabilities have been satisfied, then and only then shall any remaining funds revert to the general fund of the city. Sec. 2-271. Direct transfe~-s of eligible rollover distributions; Elimination of mandatory distributions. (a) Rollover distributions General. This section applies to distributions made on or after January 1, 2002. Notwithstanding any provision of thc system to the contrary that would otherwise limit a distributec's election under this section, a distributes may elect, at the time and in the manner prescribed by the board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the dislributes in a direct rollover. (b) Definitions. 1. Eligible rollover distribution: An eligible rollovcr distribution is any distribution of all or any portion of thc balance to thc credit of the distribotec, 32 except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the d istributee's designated beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the [Internal Revenue] Code; and the portion of any distribution that is not includible in gross income. Any portion of any distribution which would be includible in gross income will be an eligible rollover distribution if the distribution is made to an individual retirement account described in Section 408(a), to an individual retirement annuity described in Section 408(b) or to a qualified defined contribution plan described in Section 401(a) or 403(a) that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and thc portion of such distribution which is not so includible. Eligible retirement plan: An eligible retirement plan is an individual renrement account described in Section 408(a) of the [Internal Revenue] Code, an individual retirement annuity described in Section 408(b) of the [Internal Revenue] Code, an annuity plan described in Section 403(a) of the [Internal Revenue] Code, an eligible deferred compensation plan described m Section 457(b) of the [Internal Revenue] Code which is maintained by an eligible employer described in Section 457(e)(1)(A) of the [Internal Revenue] Code and which agrees to separately account for amounts transferred into such plan from this plan, an annuity contract described in Section 403(b) of the [Internal Revenue] Code, or a qualified trust described in Section 401 (a) of thc [Internal Rcvcnue] Code, that accepts the distributee's eligible rollover distribution. This definition shall also apply in the case of an eligible rollover distribution to thc surviving spouse. Dixtributee: A distributee includes an employcc or former employee. In addition, the employee's or former employee's surviving spouse is a distributee with regard to the interest of the spouse. Dire~ rollover. A direct rollover is a payment by the plan to the eligible retirement plan specified by thc distributee. (2) Rollovers or iran.y/hfs into the fund. On or after January 1, 2002, the syste~n will accept, solely for the purpose of purchasing credited service as provided herein, permissible Member requested transfers of funds l?om othcr retirement or pension plans, member rollover cash contributions and/or direct cash rollovcrs of distributions madc on or after January 1, 2002, as lbllows: (a) Tran~sfers and direct rollm'erx or member rollover contributions fi-om other plans. The syste~n will accept either a direct rollover of an eligible rollover distribution or a me~nber contribution o~' an eligible rollover distribution fi-om a qualified plan described in Section 401(a) or 403(a) of the [internal Revenue] Code, from an annuity contract described m Section 403(b) of the [Internal Revenue] Code or from an eligible plan under Section 457(b) of the [Internal Revenue] Code which is maintained by a state~ political subdivision o£ a statc~ or any agency or instrnmcntatily of a state or political subdivision of a statc. Thc sy(tcm will also 33 accept legally, permissible member requested transfers of funds frmn other retircmcnt or pension plans. (b) Member rollover contributions from IRAs. The system will accept a ~nember rollover contribution of the portion of a distribution from an individual retirement account or annuity described in Section 408(a) or 408(b) of the [Internal Revenue] Code that is eligible to be rolled over and would otherwise be includible in gross income. (3) EliminationofMandatoryDistributions. Notwithstanding any other provision herein to the contrary, in the event this Plan provides for a mandatory (involuntary) cash distribution from the Plan not otherwise required by law, for an amount in excess of one-thousand dollars ($1,000.00), such distribution shall be made from the Plan only upon written request of the Member and completion by the Member ora written election on forms designated by the Board, lo either receive a cash lump sum or to rollover the lump sum amount. Sec. 2-272. Family Medical Leave Act. The fractional parts of the twelve (12) month period ending each September I that a member is on leave from the city pursuant to the Family and Medical Leave Act (FMLA) shall be added to his credited service provided that: (1) The member contributes to the fund the sum that he would have contributed, based on his salary and the member contribution rate in effect at the time that the credited service is requested, had he been a member of the system for thc fractional parts nf the twelve (12) months ending each September I for which he is requesting credit plus amounts actuarially determined such that the crediting of service does not rcsuh in any cost to the fund plus payment of costs for all professional services rendered to the board in connection with the purchase of periods of credited service. (2) The request for credited service for FMLA leave time for the twelve-month period prior to each September 1 shall be made on or before September 30 (3) Payment by the member of the required amount shall be on or before Decembe~ 31 for the preceding twelve-month period ending September I and shall be made in {)ne (1) lump-stun payment upon receipt of which credited service shall be issncd. (4) Credited service purchased pursuant to this section shall not count toward vesting (5) For those members who purchase credited service hereunder, only thal portion otany payment representing the sum that he would have contributed (one (I) percent of what would have been received as gross pay, plus five (5) percent of what xvouhl have been received as base pay for all years of credited service since October l, 1976) had he been a member of the system for the fractional parts of years lbr which he is requesting credit, shall be included in accumulated contributions. Sec. 2-273. Military service prior to employment. The years or fractional parts of years that a police officer servcs or has servcd on active duty in the military service of the Arn~ed Forces of the United States, the United States Merchant Marine or the United States Coast Guard, voluntarily or involuntarily and honorably or under honorable conditions, prior to first and initial employment with the city police department shall be addcd to his years of credited service provided that: 34 The member: contributes to the fund the sum that he would have contributed, based on his salary and the member contribution rate in effect at the time that the credited service is requested, had he been a member of the system for the years or fractional parts of years for which he is requesting credit plus amounts actuarially determined such that the crediting of service does not result in any cost to the fund plus payment of costs for all professional services rendered to the board in connection with the purchase of years of credited service. (2) Multiple requests to purchase credited service pursuant to this section may be made at any time prior to retirement, but no purchase is permitted for a period of less than one year. (3) Payment by the member of the required ainount shall be made within six (6) months of his request for credit, but not later than the retirement date, and shall be made Jn one lump sum payment upon receipt of which credited service shall be given. (4) The maximum credit under this section shall be three (3) years~ (5) Credited service purchased pursuant to this section shall not count toward vesting or eligibility for not-in-line of duty disability retirement. Sec. 2-274. Prior police service. Unless otherwise prohibited by law, and except as provided for in section 2-261, the years or fractional parts of years that a member previously served as a police officer with the city during a period of previous employment and for which period accumulated contributions were withdrawn from the fund, or the years and fractional parts of years that a member served as a full-rune police officer for any other municipal, county or state law enforcement department in the State of Florida shall be added to his years of credited service provided that: (1) The member contributes to the fund the sum that he would have contributed, based on his salary and the member contribution rate in effect at thc time that thc credited service is requested, had he been a member of the system for the years or ti-actional parts of years for which he is requesting credit plus amounts actuarially determined such that the crediting of service does not result in any cost to thc fund plus payment of costs for all professional services rendered to the board in connection with the purchase of years of credited service. (2) Multiple requests to purchase credited service pursuant to this section may be made at any time prior to retirement, hut no purchase is pem~iltcd fur a period of less than one year. (3) (4) Payment by the member of the required amount shall be made within six (6) months of his request for credit, but not later than the retirement date, anti shall be made in one lump sum payment upon receipt of which credited service shall be given. The maximum credit for prior scrvice with another law cnforccment department other than with the City of Sanfurd shall be live (5) years of credited se~x4ce and shall count for all purposes, except vesting and eligibility for not-in4mc of duty disability benefits. 35 (6) There shall l~e no maximum credit for prior service with the City of Sanford police department and all years of credited service shall count for all purposes, including vesting. In no event, ho~vever, may credited service be purchased pursuant to this section for prior service with any other municipal, county or state law enforcement agency, if such pri or sc(vi ce forms or will form the basis ora retirement benefit or pension from a difl~rent employer's retirement system or plan as set forth in section 2-266, subsection (f)(8)b. Sec. 2-275. Reemployme~rt afler relirement. (l) Any retiree under this system, except for disability retirement as previously provided for, may be reemployed by any public or private employer, except the city, and ~nay receive compensation from that employment without limiting or restricting in any way the retirement benefits payable under this system. Reemployment by the city shall be subject to the limitations set forth in this section. (2) After normal retirement. Any retiree who is retired under normal (or early) retirement pursuant to this systenr and who is recmployed as a police officer and, by virtue of that reemployment, is eligible to participate in this system, shall upon being reemployed, discontinue receipt of benefits. Upon reemployment, the member shall be deemed to be fully vested and the additional credited service accrued during the subsequent employment period shall be used in computing a second benefit anrount attributable to the subsequent employment period, which benefit amount shall be added to the benefit dctemfined upon the initial retirement to determine the total benefit payable upon final retirement. Calculations of benefits upon retirement shall be based upon the benefit accrual rate, average final compensation, and credited service (and early retirement reduction factor, if applicable) as of that date and the retirement benefit amount for any subsequent employment period shall be based upon the benefit accrual rate, average final compensation (based only on thc subscqueut employment period), and credited service (and early retirement reduction factor, if applicable) as of the date of subsequent retirement. The amount of any death or disability benefit received during a subsequent period of employment shall be reduced by the amount of accrued benefit eligible to be paid for a prior period of employment. The optional form of benefit and any joint pensioner selected upon initial retirement shall not be subject to change upon subsequent retirement except as otherwise provided herein, but the retiree may select a different optional form and joint pensioner applicable only to the subsequent retirement benefit. (3) Anv retiree who is retired under normal retirement pursuant to this system who is rcemployed by th~ City in a position other than as a police officer, shall upon being rcemployed, continue receipt of benefits for thc period of any subsequent employment period. (4) ,{[~er t~ar/~' rcta'cme~t. Any retiree who is retired under early retirement pursuant to this system and who subsequently becomes an employee of the city in any capacity, shall discontinue receipt of benefits from thc system. If thc reemployed person, by virtue of his reemployment, is eligible to participate m this ~vstcm. that person shall accrue a second benefit as provided tbr in subsection (2) above amt ben'fit payments shall remain suspended dunng any such subsequent employment period. Il' thc rccmplo~cd pc(son is not eligible to participate in this system, that pc(son's pension benefit payments shall bc suspended until the earlier of termination of employment or such time as the rcemploycd retiree reaches the date that he would have been eligible for normal retircmcnt under this system bad hc continued employment alld not elected early retirement. "Normal retirement" as used in this subsection shall be thc current normal retirement (late provided for under this system. 36 (5) Reemploymeht ofterrninated vestedpersons. Reemployed terminated vested persons shall not be subject to the provisions of this section until such time as they begin to actually receive benefits. Upon receipt of benefits, terminated vested persons shall be treated as normal or early retirees for purposes of applying the provisions of this section and their status as an early or normal retiree shall be determined by the date they elect to begin to receive their benefit. (6) DROPparticipants. Members or retirees who are or were in the deterred retirement option plan shall, following termination of employment after DROP participation, have the options provided for in this section for reemployment. Sec. 2-276. Deferred retirement option plan. (a) (1) (2) Definitions. As used in this section 2-276, the following definitions apply: "DROP" -- The City of Sanford Police Officers' Deferred Retirement Option Plan. "DROP account" -- The account established for each DROP participant under subsection (c). (b) (1) (2) (3) Participation. Eligibility to participate. In lieu of terminating his employment as a police officer, any member who is eligible for normal retirement under the system may elect to defer receipt of such service retirement pension and to participate in thc DROP. Election to participate. A member's election to participate in thc DROP must be made in writing in a time and manner determined by the board and shall be effective on the first day of the first calendar month which is at least fifteen (15) business days after it is received by the board. Period qfparticipation. A member who elects to participate in thc I)ROP under subsection (b)(2), shall participate in the DROP for a period not to exceed 60 months beginning at the time his election to participate in the DROP first becomcs effective. An election to participate in the DROP shall constitute an irrevocable clection to rcsign l?om thc service of the city not later than the date providcd lbr in the previous sentence. A member may participate only once. (4) Termination qf parlicipation. a. A member's participation in thc DROP shall cease at the earlier of: 1. the end of his permissible pcriod of participation in thc I)ROP as determined under subsection (b)(3); or termination of his employment as a police officer. Upon the member's termination of participation in the DROP, pursuant to subsection I above, all amounts provided for in subsection (c)(2), including monthly benefits and investment earnings and losses, shall ceasc to be transfcrred from thc system to his DROP account. Any amounts remaining in his DROP account shall be paid to him in accordance with thc provisions of subsection (d) when he terminates his employment as a police officcr. 37 (5) (c) (1) (2) Co A member who terminates his participation in the DROP under this subsection (b)(4) shall not be permitted to again become a participant in the DROP. Effect of DROP participation on the syxtem. A member's credited service and his accrued benefit under the system shall be determined on the date his election to participate in the DROP first becomes effective. For proposes of determining the accrued benefit, the member's base pay for the purposes of calculating his average final compensation shall include an amount equal to any lump sum payments which would have been paid to the mcmber and included as base pay as defined herein, had the member retired under normal retirement and not elected DROP participation. Member contributions attributable to any lump sums used in the benefit calculation and not actually received by the member shall be deducted from the first payments to tbc member's DROP account. The member shall not accrue any additional credited service or any additional benefits under the system (except lbr any additional benefits provided under any cost-of-living adjustmcnt for retirees in the system) while he is a participant in the DROP. After a member commences participation, he shall not be permitted to again contribute to the system nor shall he be eligible for disability or pre-retirement death benefits, except as provided for in section 2-275, Reemployment after retirement. No amounts shall bc paid to a mcmbcr l?om thc system while the member is a participant in the DROP. Unless otherwise specified in the system, ifa member's participation in the DROP is terminated other than by terminating his employment as a police officer, no amounts shall be paid to him l¥om the system until he terminates his emph)ymcnt as a police officer. Unless otherwise specified in the system, amounts transl~rrcd flora the system to the member's DROP account shall bc paid directly to the member only on the termination of his e~nployment as a police officer. Funding. Extablishment qfDROP account. A DROP account shall bc established for each member participating in the DROP. A member's I)ROP account shall consist of amounts transferred to the DROP ureter subsection (c)(2), and earnings on those amounts. Tranxferx from retirement .s3,stem. As of the first day of each momh ora member's period of participation m thc DROP, thc mnnthly retirement bcncfi! hc would have received nnder the system had he terminated his employmem as a police officer and elected to receive monthly benefit payments Ihcrcundcr shall be lransfcrred to his DROP account, except as otherwise provided for in subsection (b)(4)b. A member's period of participation m thc I)ROP shall bc determined m accordance with the provisions of subsections (b)(3) anti (b)(4), but m no event shall it continue past the date he terminalcs his cmptoymcm as a police officer. 38 (d) Except as otherwise provided in subsection (b)(4)b., a member's DROP account under this subsection (c)(2) shall be debited or credited after each fiscal year quarter with earnings, determined as follows: The average daily balance in a member's DROP account shall be credited or debited at a rate equal to the net investment return realized by the system for that quarter. "Net investment return" for thc purpose of this paragraph is the total return of the assets in which the member's DROP account is invested by the board net of brokerage commissions, transaction costs and management fees. A member's DROP account shall only be credited or debited with earnings and monthly benefits while the member is a participant in the DROP. A member's final DROP account value for distribution to the member upon termination of participation in the DROP shall be the value of the account at the end of the quarter immediately preceding termination of participation date plus any monthly periodic additions made to the DROP account subsequent to the end of the previous quarter and prior to distribution. Ifa member fails to terminate employment after participating in thc DROP lbr thc permissible period of DROP participation, then beginning with the member's I st month of employment following the last month of the permissible period of DROP participation, the member's DROP account will no longer be credited or debited with earnings, nor will monthly benefits be transferred to thc DROP account. Ail such non-transferred amounts shall be forfeited and continue to be forfeited while the member is employed by the police department. A member employed by thc police department after the permissible period of DROP participation will still not be eligible for pre-retirement death or disability benefits, and he will accrue additional credited service only as provided for in section 2-275. Distribution t?f l)ROP accounts on termination (?f employment. Eligibility. for benefits. A member shall receive the balance in his DROP account in accordance with the provisions of this subsection (d) upon his termination of employment as a police officer. Except as provided in subsection (d)(5), no amounts shall be paid.to a member from the DROP prior Io his termination of employment as a police officcr. (2) Form of dtstribution. Unless the member elects otherwise, distribution of his DROP account shall be made in a lump sum, subject to thc dirccl rollover provisions set lbrth in subsection (d)(6). A member ~nay elect, however, in such time and manner as the board shall prescribe, that his DROP distribution be used to pnrchase a nonlbrfeitablc fixed annuity payable in such form as the member may elect. Elections under this paragraph shall be in writing and shall be made in such time or manner as thc board shall dctcmmie. Ifa member dies before his benefit is paid, his DROP account shall bc paid to his beneficiary in such optional lbrm as his beneficiary may selecL If no beneficiary designation is made, the I)ROP account shall be distribmed to the member's cstale. 39 (3) Date of payment of dixtribution. Except as otherwise provided in this subsection (d), distribution of a member's DROP account shall be made as soon as administratively practicable following the member's termination of employment. Distribution of the amount in a Member's DROP account will not be made unless the Member completes a written request for distribution and a written election, on forms designated by the Board, to either receive a cash lump sum or a rollovcr of the lump sum amount. (4) (6) (c) (1) (2) Proof p[ death and right of beneficiary or other person. The board ~nay require and rely upon such proof of death and such evidence of the right of any beneficiary or other person to receive the value ora deceased member's DROP account as the board may deem proper and its determination of the right of that beneficiary or other person to receive payment shall be conclusive. Distribution limitation. Notwithstanding any other provision of this subsection (d), all distributions from the DROP shall conform to the "Minimum Distribution Of Benefits" provisions as provided for herein. Direct rollover pfcertain distributions. This subsection applies to distributions made on or after January 1, 2002. Notwithstanding any provision of thc DROP to the contrary, a distributee may elect to have any portion of an eligible rollovcr distribution paid in a direct roIlover as otherwise provided under the system in section 2-271. Administration of DROP. Board administers the DROP. The general administration of the DROP, thc responsibility for carrying out the provisions of the DROP and the responsibility of overseeing the investment of the DROP's assets shall be placed in the board. Thc members of the board may appoint from their number such subcommittees with such powers as they shall determine; may adopt such administrative procedures and regulations as they dccm desirable [hr the conduct of their affairs; may authorize ()ne or more of their ntunber or any agent to execute or dclivcr any instrument or make any payment on their behalf; may retain counsel, employ agents and provide for such clerical, accounting, actuarial and consulting services as they may require in carrying out the provisions of the DROP; and may allocate among themselves or delegate to other persons all or such portion of their duties under the DROP, other titan those granted to them as trustee under any trust agreement adopted ibr use in implemcntiog the DROP, as they, in their sole discretion, shall decide. A trustee shall not vote on any question rclating exclusively to himself. Individual accounts, records and reports. The board shall maintain records showing the operation and condition of the DROP, including records showing thc individual balances in each member's DROP account, and lhe board shall keep in convenient form such data as may bc necessary for the valuation of thc assets and liabilities of thc DROP. Thc board shall prepare and distribute to members participating in thc DROP and other individuals or file with the appropriate govcrmncntal agencies, as 4O (3) the case may be, all necessary descriptions, reports, information returns, and data required to be distributed or filed for the DROP pursuant to the Code and any other applicable laws. Establishment of rules. Subject to the limitations of the DROP, the board from time to time shall establish roles for the administration of the DROP and the transaction of its business. The board shall have discretionary authority to construe and interpret the DROP (including but not limited to determination of an individual's eligibility for DROP participation, the fight and amount of any benefit payable under the DROP and the date on which any individual ceases to be a participant in the DROP). The determination of the board as to the interpretation of the DROP or its determination of any disputed questions shall be conclusive and final to thc extent permitted by applicable law. (4) Limitation of liability. (1) (2) (3) The trustees shall not incur any liability individually or on behalf of any other individuals for any act or failure to act, made in good faith in relation to the DROP or the funds oftbc DROP. Neither the board nor any trustee of the board shall be responsible for any reports furnished by any expert retained or employed by the board, bnt they shall be entitled to rely thereon as well as on certificates furnished by an accountant or an actuary, and on all opinions of counsel. The board shall be fully protected with respect to any action taken or suffered by it in good faitb in reliance upon such expert, accountant, actuary or counsel, and all actions taken or suffered in such reliance shall be conclusive upon any person with any interest in the DROP. Amendment of DROP. Thc DROP may be amended by an ordinance of the city at any time and from time to time, and retroactively if deemed necessary or appropriale, to amend in whole or in part any or all of the provisions of thc DROP. ltowevcr, except as otherwise provided by law, no amendment shall make it possible for any part of the DROP's funds to be used for, or diverted to, purposes other than for the exclusive benefit of persons entitled to benefits under the DROP. No amendment shall be made which has the effect of decreasing the balance of thc DROP account of any member. Facilit)' c?/'pco.'ment. If a member or other person entitled to a bcnefit under thc DROP is unable to care lbr his aflairs because of illness or accident or is a minor, the board shall direct that any benefit due him shall be made only lo a duly appointcd legal representative. Any payment so made shall be a complete discharge of the liabilities of the DROP for that benefit. b~formation. Each member, beneficiary or other person entitled to a benefit, before any benefit shall be payable to him or on his account under the DROP, shall filc with the board the inlbrmation that it sball require to establish his rights and bcncfits under the DROP. 41 (4) (7) (8) Prevention ~fescheat. If the board cannot ascertain the whereabouts of any person to whom a payment is due under the DROP, the board may, no earlier than three (3) years from the date such pay~nent is due, mail a notice of such due and owing payment to the last known address of such person, as shown on the records of the board or the city. lfsuch person has not made written claim therefor within three (3) months of the date of the mailing, the board may, if it so elects and upon receiving advice frmn counsel to the DROP, direct that such payment and all remaining payments otherwise due such person be canceled on the records of the DROP. Upon such cancellation, the DROP shall have no further liability therefor except that, in the event such person or his beneficiary later notifies the board of his whereabouts and requests the payment or payments due to him under the DROP, the amount so applied shall bc paid to him in accordance with the provisions of the DROP. Written elections, notification. Any elections, notifications or designations made by a mmnbcr pursuant to the provisions of the DROP shall be made in writing and filed with the board in a time and manner determined by the board under roles uniformly applicable to all employees similarly situated. The board reserves the right to change from time to time the manner for making notifications, elections or designations by members under the DROP if it determines after due deliberation that such action is justified in that it improves the ad~ninistration of the DROP. in the event of a conflict between the provisions for making an election, notification or designation set lbrth in the DROP and such new ad~ninistrative procedures, those new administrative procedures shall prevail. Each member or Retiree who has a DROP account shall bc responsible for fi~rnishing the board with his current address and any subsequent changes in his address. Any notice required to be given to a member or Retiree hereunder shall be deemed given if directed to him at the last such address given to the board and mailed by registered or ccrtified United Statcs mail. If any check mailed by registered or certified United States mail to such address is returned, mailing of checks will be suspended until such time as the member or Retiree notifies the board of his address. Benq/itx not guaranteed. All benefits payable to a member from the DROP shall bc paid only from the assets of the member's DROP account and neither the city nor lhc board shall have any duty or liability to furnish the DROP with any funds~ securities or other assets except to the extent required by any applicable law. ('rmstrur'lion The DROP shall be construed, regulated and administered under the laws of Florida, except where other applicable law controls. Thc titles and headings of thc subsections in this section 2-276 arc for convenience only. In the case of ambiguity or inconsistency, the text rather than the titles or headings shall control. ]"o~.'/t, tlure O['t-etirement benc/itx. Nothing in this section shall bc construed to rcmovc I)ROP participants from thc application of any lbrfcimrc provismns 42 applicable to the system. DROP participants shall be sul~ject to forfeiture of all retirement benefits, including DROP benefits. (9) Effect of DROP participation on employment. Participation in thc DROP is not a guarantee of employment and DROP participants shall be subject to the same employment standards and policies that are applicable to employees who are not DROP participants. Secs. 2-277-2-280. Reserved. A l B\san~pol\09-06 -06.or d.CLN 43