§ 54-50. Distributions.

(a)

Events resulting in entitlement to benefits. Upon a member's retirement after attaining his early or normal retirement date, or upon his total and permanent disability, as determined by the board, or death, the board shall convert the entire account and direct the trustee to make distribution to such member, in accordance with the provisions of this section. Upon termination of employment for any other reason, a member's vested account shall similarly be converted to a distribution account for immediate or deferred distribution as provided herein.

(b)

Retirement dates.

(1)

Normal retirement date. Normal retirement date will be the first day of the month coincident with, or next following, the date on which the participant attains age 50 and completes ten or more years of credited service.

A member of the plan shall not be allowed to receive retirement funds while still employed by the city in a regular full time position, unless the employee is 70½ years old or older.

Payment(s) from a member's distribution account shall commence upon an employee's reaching his normal retirement date unless the employee elects, in writing, that his benefits commence at a later date. Payment(s) shall begin, in any event, no later than an employee's reaching age 70½.

(c)

Disability.

(1)

Total and permanent disability. In the event of the board's determination that a member is totally and permanently disabled, the entire amount credited to his account shall become fully vested. Total and permanent disability shall mean a physical or mental condition resulting from a service or nonservice-connected bodily injury, disease or mental disorder, which renders the member incapable of performing work for the city.

(2)

Determination of disability. In determining the nature and extent of any member's disability, the board shall select a physician or physicians to examine such member and to report in writing to the board. Such report shall be accepted by the board as the basis for its determination of the existence and extent of disability, but the final determination shall be solely in the discretion of the board pursuant to uniform and nondiscriminatory rules.

(3)

Disability payments. Upon determination of total and permanent disability, a distribution account equal in amount to the full account shall be established. Payment of benefits shall be in such method and manner as is determined by the board.

(4)

Exclusions. Disability benefits shall not be payable in cases where the disability is a direct result of:

a.

Excessive use of drugs, intoxicants or narcotics.

b.

Injury or disease sustained while willfully and illegally participating in fights, riots, civil insurrections or while committing a felony.

c.

Injury or disease sustained while serving in the armed forces.

d.

Injury or disease sustained after employment as an employee has terminated, either voluntarily or involuntarily.

e.

Injury or disease sustained while working for anyone other than the city and arising out of such employment.

f.

A condition pre-existing an employee's employment by the city. No employee shall be entitled to a disability benefit because of or due to the aggravation of a specific injury, impairment or other medical condition existing at or prior to the date of employment, provided that such pre-existing condition and its relationship to a later injury, impairment or other medical condition is established by competent substantial evidence. Nothing herein shall be construed to preclude a disability benefit to an employee who, after employment by the city, suffers an injury, impairment or other medical condition different from the injury, impairment or other medical condition existing at or prior to the date of employment.

In such cases, any benefits due as a result of termination of employment by the city shall be determined in accordance with the vesting provisions of this system.

(5)

Recovery. In the event of recovery from disability as determined by the board, and immediate re-employment by the city as an employee, the period of time while disabled shall be included as credited service, for purposes of determining future vesting, along with actual credited service as of the date of disablement. The remaining unpaid portion of the distribution account, if any, shall again become a regular account. Entitlement to any future vested termination benefit shall be calculated based upon the application of the then existing vested percent to the sum of the account plus the amount of the former distribution account already paid, with the resulting vested amount having credited against or deducted from it those distributions previously made.

In the event of recovery, but without immediate reemployment as an employee, the member's future benefit, if any, shall be determined as though he initially terminated employment on his date of disability. If payments already made exceed the vested account as of the date of disability, no further benefits shall be payable. Any remaining unpaid portion of the formerly disabled employee's distribution account shall be treated as forfeiture and offset against future city contributions.

(6)

Pre-existing health conditions of members as of employment date. Disability benefits arising from adverse health conditions of members which already existed on the member's date of employment shall be limited to the amount payable in accordance with the vesting schedule. However, these benefits shall commence immediately as for other disabled members and need not be deferred as may be the case for regular vested terminations.

(d)

Death.

(1)

Upon the death of a member prior to retirement, the entire amount credited to his account shall be converted to a distribution account. Upon the death of a former member, the remaining balance in the former member's distribution account which had not been paid to him as of the time of death shall continue to be distributed, although the method and timing of payment may be modified. The board, in accordance with the provisions hereof, shall direct the trustee to distribute such amounts to any surviving beneficiary designated by the member or former member or, if none, to the member's spouse, children or their legal guardian, or to the member's estate.

(2)

The board may require such proper proof of death and such evidence of the right of any person to receive payment of the distribution account of a deceased member or former member as the board may deem advisable. The board's determination of death and of the right of any person to receive payment shall be conclusive.

(e)

Vesting and distribution upon termination of employment.

(1)

Distribution accounts and forfeitures. Upon termination of employment for any reason other than retirement, death or disability, the board shall establish a distribution account for the terminated member consisting of the vested portion of his account as it existed on the date of termination of employment. As of the date upon which such a terminated member attains his normal or early retirement date, unless an earlier date be approved by the board in its sole discretion, the board shall direct the trustee to distribute, in accordance with the provisions hereof, to such former member the amount in his distribution account. That portion of his account to which such terminated member is not vested shall be forfeited and thereafter applied to reduce future city contributions.

Whenever a previously terminated former member is re-employed, the board shall establish a new account in addition to his distribution account.

The total amount of voluntary member contributions, less any prior distributions thereof, may be distributed at any time to a member, but not more frequently than once per year or, in the event of a financial hardship as provided in section 54-48(b), twice per year. No such distribution or withdrawal shall cause any forfeiture of benefits attributable to city contributions.

(2)

Vesting. Each member shall be at all times 100 percent vested in his voluntary contributions, plus the fund earnings and gain or loss allocated thereto, and in addition shall be vested in the balance of his account according to the following vesting schedule:

Years of Credited Service	Cumulative or Total Vesting Interest
Less than  5	0%
5	25%
6	40%
7	55%
8	70%
9	85%
10	100%

 

A participant who reaches his normal retirement date as set forth in subsection (b)(1) shall be 100 percent vested in his member account as defined in section 54-49(a)(1).

(f)

Method of payment of distribution accounts.

(1)

Form. Distribution shall be made in such one or more of the following methods as employee, in his sole discretion, may determine:

a.

One lump sum payment;

b.

Payments, in monthly, quarterly or semiannual installments, over a period not exceeding 20 years;

c.

Payment or transfer to a member's individual retirement account (IRA); or

d.

Purchase of an annuity policy from an insurance company licensed to do business in the state.

(2)

Amount. The disposition of accounts shall be made on the basis of distribution account values as the same shall exist following the allocations completed as of the September 30 most recently preceding the date of any payment from the distribution account.

(3)

Approval. If an employee is married and the value of the amount payable in his distribution account is at least $3,500.00, the employee's spouse must approve, in writing, the method of payment elected by the employee.

(4)

Director transfer of eligible rollover distribution. Notwithstanding any provision of the system to the contrary that would otherwise limit a distributee's election under this section, a distributee may elect, at the time and in the manner prescribed in this section, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover for any distribution made on or after January 1, 1993.

(g)

Maximum distribution for employees who become members on or after January 1, 1980. In accordance with F.S. § 112.65, the normal retirement benefit or pension payable to a retiree who became a member of this system and who had not previously participated in such system, on or after January 1, 1980, shall not exceed 100 percent of his "average final compensation". However, nothing contained in this subsection shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-living increases or adjustments. As used in this subsection the term "average final compensation" shall mean the average of the member's earnings paid during the last full city fiscal year prior to the member's termination of employment. No member of the system who is not now a member of such system shall be allowed to receive a retirement benefit or pension which is in part or whole based upon any service with respect to which the member is already receiving, or will receive in the future, a retirement benefit or pension from another retirement system or plan. This restriction does not apply to Social Security benefits or federal benefits under Chapter 67, Title 10, U.S. Code.

(Code 1981, § 15-24; Ord. No. 1991-34, § 4, 11-19-91; Ord. No. 1993-22, §§ 2, 3, 7-20-93; Ord. No. 1997-11, § 1, 4-1-97; Ord. No. 1998-59, § 2, 10-6-98; Ord. No. 2001-49, § 4, 7-24-01)