§ 54-127. Forms of benefit payments.

(a)

Election by participant. A participant who has a right to receive a pension benefit as provided in section 54-126(a) shall automatically be paid the standard form of benefit payment unless a timely election is made to receive an optional form of benefit payment.

(b)

Standard benefit. The standard pension benefit shall be a monthly benefit payable until the participant's death, except that, if the participant should die before he has received retirement benefits for a period of ten years, the same monthly benefit will be paid to the beneficiary or beneficiaries as designated by the participant for the balance of such ten-year period.

(c)

Optional forms of benefits.

(1)

Joint and survivor annuity. This form of benefit shall provide monthly payments of a smaller amount for the life of the participant, with monthly payments continuing thereafter for the life of the participant's designated beneficiary. The monthly benefit payable to the beneficiary shall be 50 percent, 66 2/3 percent, 75 percent, or 100 percent of the monthly benefit payable during the joint lives of the participant and the beneficiary, as elected by the participant. If payment of a pension is to be made in the form of a joint and survivor pension, the pension amount shall be adjusted so as to be actuarially equivalent to the standard benefit. The standard pension benefit shall be ten years certain and life. A retired participant may change his or her designated survivor up to two times without the approval of the board or the current designated survivor. The retiree participant need not provide proof of the good health of the designated survivor being removed, and the designated survivor being removed need not be living. The amount of the retirement income payable to the participant upon changing his or her designated survivor shall be actuarially redetermined by the application of actuarial tables and calculations to ensure that the benefit is the actuarial equivalent of the present value of the participant's current benefit and that there is no impact to the plan.

(2)

Single life annuity. Any participant may file an election to receive monthly payments for life.

(3)

Deferred retirement option plan ("DROP").

a.

Eligibility. A participant who has attained 25 years of service may elect to enter the DROP. Notwithstanding the preceding sentence, a participant hired after January 31, 2011, shall not be eligible to participate in the DROP.

b.

Cessation of contributions. Upon commencement of participation in DROP, the participant shall cease to make pension contributions.

c.

Payments to DROP account. The monthly retirement benefits that would have been payable had the participant elected to cease employment and receive a normal retirement benefit shall be paid into the participant's DROP account.

d.

DROP account earnings. After each fiscal year quarter, the average daily balance in a participant's DROP account shall be credited with interest at the rate equal to the actuarially assumed rate of investment return established by the Fund for the quarter.

e.

Maximum DROP period. A participant may participate in the DROP for a maximum of 60 months. Not later than at the conclusion of 60 months, the participant's city employment must terminate.

f.

DROP account distributions.

1.

Upon termination of the participant's employment due to retirement, resignation, discharge or death, the retirement benefits payable to the participant or to the participant's beneficiary (if the participant elected an optional form of payment providing for payments to the beneficiary) shall be paid to the participant or beneficiary and shall no longer be deposited to the participant's DROP account.

2.

Within 60 days following the participant's termination of employment, the balance in the participant's DROP account shall be payable as a single lump-sum payment paid either directly to the participant or beneficiary or as a direct rollover paid from the fund to the custodian of an eligible retirement plan as defined in Section 402(c)(8)(B), Internal Revenue Code.

g.

Death or disability of DROP participant. A DROP participant shall not be eligible for preretirement death or disability benefits.

h.

[Administration.] The board shall adopt any necessary rules for administering the DROP.

(4)

Other forms. A lump sum payment may not be elected by any participant or granted by the board of trustees, except as provided in section 54-133. A participant may file an election to receive any other actuarially equivalent benefit, subject to the approval of the board of trustees of each such election.

(d)

Election of optional benefits.

(1)

Manner of electing optional benefits. Optional forms of benefit payments shall only be payable if a timely election is made. Such election must be in writing, signed by the participant, on a form provided by the board of trustees.

(2)

Time limits. Any optional form of benefit payment must be elected prior to commencement of benefits from this pension plan.

(e)

Revocation or change of election.

(1)

An election of a standard or optional form of benefit payment may be revoked at any time before cashing or depositing the first benefit check from this pension plan. Such a revocation must be in writing, signed by the participant.

(2)

If an election is revoked, then the standard form of benefit payment shall be paid unless another election of an optional benefit payment is timely made as provided in subsection (d) of this section.

(3)

After benefits have commenced, a retired participant may change his designation of joint annuitant or beneficiary twice in the manner prescribed in F.S. § 185.341.

(f)

Notice of forms of pension benefits.

(1)

Written notice of the availability of all forms of pension benefits shall be provided to all vested participants on an annual basis.

(2)

The notice shall contain a written explanation of:

a.

The terms and conditions of the standard form of benefit; and

b.

The right to elect, and to revoke an election of, any optional form of benefit payment.

(Ord. No. 1993-43, § 7, 9-28-93; Ord. No. 1998-73, § 2, 11-17-98; Ord. No. 1999-60, § 3, 1-18-00; Ord. No. 2001-47, § 3, 7-24-01; Ord. No. 2010-23, § 2, 9-7-10; Ord. No. 2011-2, § 4, 1-31-11)