Fort Walton Beach Council agenda — 02-08-11 regular — reading text

shall be made in a cash lump sum payment, subject to the direct rollover provisions set forth in subsection 4.1& F. E_lections under this paragraph shall be in writing and shall be made in such time or manner as the Board shall determine. 2) If a Member dies before his benefit is paid, his DROP Account shall be paid to his Beneficiary in such optional form as his Beneficiary may select. If no Beneficiary designation is made, the DROP Account shall be distributed to the Member's estate. C. Date of Payment of Distribution. Except as otherwise provided in this subsection 4., distribution of a Member's M 00 DROP Account shall be made as soon as administratively practicable following the Member's termination of employment. Distribution of the a 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. a a 1•• • I ltW2loJKVAvAW1tVJ W. I tvis • V • i • • • I IMP gRIP4 of IN • I \ • \ low ON 16 Page 49 of53 Pages  I I I P41LIV t" I § L" 2 4 W I 111W115ralsoulwooffrals ED. 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. a Notwithstanding any other provision of subsection 4., all distributions from C the DROP shall conform to the regufations issued under Section 40 f (a)( N C 0 r . 2..::+:. CL two _ I U. UL istribution of Benefits" provisions as provided for herein. a fiF. Direct Rollover of Certain Distributions. E M 0 4W This subsection applies to distributions made on or after January 1, - ti M 2002. Notwithstanding any provision of the DROP to the contrary that distributee' s election ander this stibsection, a as distributee may elect, at the time and in the manner prescribed by the B v C to have any portion of an eligible rollover distribution paid di re M R"`): P trvnm li l -- wecifeu vvthe d sariiteC in a direct rollover as otherwise provided under the Plan in Section 25, herein L 0 r r 5. Administration of DROP. ti M A. Board Administers the DROP. 00 r The general administration of the DROP, the responsibility for carrying out O L 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 as 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 deem desirable for the conduct of their affairs; may authorize one or more of their number or any agent to execute or deliver any at 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 any other applicable laws. c C. Establishment of Rules. a a c Subject to the limitations of the DROP, the Board from time to time shall 0 establish rules for the administration of the DROP and the transaction of its c business. The Board shall have discretionary authority to construe and as CL interpret the DROP ( including but not limited to determination of an individual's eligibility for DROP participation, the right 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 the extent permitted by applicable law. The Board shall also oversee the investment of the DROP' S assets. D. Limitation of Liability. 1} 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 of the DROP. T 2) Neither the Board nor any Trustee of the Board shall be responsible for any reports furnished by any expert retained or employed by the ti Board, but they shall be entitled to rely thereon as well as on M c0 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 faith in reliance upon O such expert, accountant, actuary or counsel, and all actions taken or c a suffered in such reliance shall be conclusive upon any person with E any interest in the DROP. s a General Provisions. Q A. Amendment of DROP. The DROP may be amended by an ordinance of the City at any time and from time to time, and retroactively if deemed necessary or appropriate, to amend in whole or in part any or all of the provisions of the DROP. However,