Fort Walton Beach Council agenda — 02-22-11 regular — reading text

M 2) Except as otherwise provided in subsection 2. D.( 2), during a Q Member' s participation in the DROP, the Member' s monthly retirement benefit will be paid into the DROP account. The Member' s DROP account will increase in value at a rate equal to one -half ( 50 %) of the assumed rate of return on pension fund investments during the immediately preceding plan year. The interest rate on the DROP account will be established by the pension board as of February 1 each year. The interest rate may be adjusted up or down during a Member' s participation in the DROP, which will result in a change in the prospective interest rate credit on the Member' s DROP account. Page 48 of53 Pages  3) A Member's DROP Account shall only be credited with interest 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 plus any monthly periodic additions made to the DROP account subsequent to the end of the previous quarter and prior to distribution. 4. Distribution of DROP Accounts on Termination of Employment. A. Eligibility for Benefits. C A Member shall receive the balance in his DROP Account in accordance M with the provisions of this subsection 4. upon his termination of employment EL C as a Firefighter. Except as provided in subsection 4.D., no amounts shall be 0 paid to a Member from the DROP prior to his termination of employment as N a Firefighter. a) o. LL LL B. Form of Distribution. 0 1) Distribution of the Member' s DROP Account shall be made in a cash E M lump sum payment, subject to the direct rollover provisions set forth 0 in subsection 4.eF. Elections under this paragraph shall be in writing ti and shall be made in such time or manner as the Board shall M Co determine. v 2) If a Member dies before his benefit is paid, his DROP Account shall M be paid to his Beneficiary in such optional form as his Beneficiary may select. If no Beneficiary designation is made, the DROP L O Account shall be distributed to the Member's estate. C. Date of Payment of Distribution. T r Except as otherwise provided in this subsection 4., distribution of a Member's Co DROP Account shall be made as soon as administratively practicable T following the Member's termination of employment. Distribution of the amount in a Member' s DROP account will not be made unless the Member O completes a written request for distribution and a written election, on forms c a designed by the Board, to either receive a cash lump sum or a rollover of the E lump sum amount. s 0 M aC ftmik- WIMINW92 Y••/. • ism millanza Page 49 of53 Pages  da. WIM ZD. Proof of Death and Right of Beneficiary or Other Person. The Board may require and rely upon such proof of death and such evidence of the right of any Beneficiary or other person to receive the value of a 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. FE. Distribution Limitation. C a Notwithstanding any other provision of subsection 4., all distributions from C the DROP shall conform to the reettlations issned under Section 40 1 ( a)( 9)-of 0 N C 40 f (a)( 9)( 6) ofthe 6ode. Fnrther, such regulations shall override any DROP a r that is inconsistent with Section 40 1 ( a)( 9) of the " Minimum UL U. Distribution of Benefits" provisions as provided for herein. M c 0 GF. Direct Rollover of Certain Distributions. E M 0 This subsection applies to distributions made on or after January 1, 1991 2002. Notwithstanding any provision of the DROP to the contrary that M Co VVCUI Vit—terwise limit a distributee' s election tinder this , a distributee may elect, at the time and in the manner prescribed by the Bo= d,- v to have any portion of an eligible rollover distribution paid directly by -thc M in a direct rollover as otherwise provided under the Plan in Section 25, hereiir O irrearpmated by reference. T T 5. Administration of DROP. r v A. Board Administers the DROP. M 00 r a The general administration of the DROP, the responsibility for carrying out L O the provisions of the DROP and the responsibility of overseeing the investment of the DROP' s assets shall be placed in the Board. The Members c a of the Board may appoint from their number such subcommittees with such E r powers as they shall determine; may adopt such administrative procedures R and regulations as they deem desirable for the conduct of their affairs; may authorize one or more of their number or any agent to execute or deliver 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 than those granted to them as Trustee under any trust agreement adopted for use in implementing the DROP, as they, in their sole discretion, shall decide. A Trustee shall not vote on any question relating exclusively to himself. Page 50 of 53 Pages  B. Individual Accounts, Records and Reports. The Board shall maintain, or cause to be maintained, records showing the operation and condition of the DROP, including records showing the individual balances in each Member's DROP Account, and the Board shall keep, or cause to be kept, in convenient form such data as may be necessary for the valuation of the assets and liabilities of the DROP. The Board shall prepare or cause to be prepared and distributed to Members participating in the DROP and other individuals or filed with the appropriate governmental agencies, as 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