House Bill 1665

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    Florida House of Representatives - 2000                HB 1665

        By Representatives Posey, Constantine, Reddick, Sublette,
    Johnson, Trovillion and Brummer





  1                      A bill to be entitled

  2         An act relating to the City of Orlando, Orange

  3         County, revising language with respect to the

  4         pension fund of the fire department of the

  5         city; amending chapter 23444, Laws of Florida,

  6         1945, as amended; providing that DROP

  7         participants shall not participate in the fund;

  8         amending the cost-of-living increase for

  9         members and beneficiaries, with the actuarial

10         cost thereof being borne by the members;

11         providing an effective date for all

12         retirements; providing for a deferred

13         retirement option plan as an improvement to

14         present pension benefits with the additional

15         cost thereof being borne by the members;

16         providing for employer pick up of member

17         contributions; providing an additional optional

18         retirement benefit necessary to meet certain

19         statutory requirements; providing for changes

20         necessary to obtain tax qualification;

21         providing an effective date.

22

23  Be It Enacted by the Legislature of the State of Florida:

24

25         Section 1.  Section 2 of chapter 23444, Laws of

26  Florida, 1945, as amended by chapter 73-573, Laws of Florida,

27  is amended to read:

28         Section 2.  Members of said Fire Department shall be

29  construed as including all officers and firefighters firemen

30  and firewomen regularly employed in said department, and whose

31  employment shall be regular and continuous and not of a

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  1  temporary character, provided, however, the secretaries,

  2  stenographers and switchboard operators shall not be covered

  3  by the provisions of this Act. For the purposes of this Act

  4  the term widow shall include widower; reference to the

  5  masculine pronoun shall include the feminine and vice-versa;

  6  the term "issue" shall include a member's natural and adopted

  7  children as well as those in gestation. Further provided that

  8  members who are DROP participants will no longer be

  9  participants in this fund, nor eligible for any benefits

10  hereunder.

11         Section 2.  Section 19 of chapter 23444, Laws of

12  Florida, 1945, as created by chapter 88-518, Laws of Florida,

13  is amended to read:

14         Section 19.  Cost of Living Increase.

15         (1)  After the effective date of this act, any member

16  of the Orlando Fire Department who retires prior to age 62

17  with 20 25 or more years of actual credited service shall

18  receive a triennial cost-of-living increase of 5 percent

19  compound starting 3 years after retirement, or, in the case of

20  a DROP participant, 3 years after termination of employment

21  ,and ending with the last triennial anniversary of retirement

22  prior to age 65. Any actuarially-determined additional cost

23  resulting from this additional benefit shall be borne by the

24  members of the firefighters pension plan. Members who

25  terminate employment without being eligible for a

26  cost-of-living increase under this section will not be

27  entitled to any refund of the contribution they made to fund

28  this benefit.

29         (2)  The benefit provided for in subsection (1), with

30  the additional cost thereof being borne by the members, shall

31  not become effective and shall be of no force and effect

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  1  unless and until approved by a majority of the members of the

  2  firefighters pension plan at an election conducted by the

  3  Orlando Firefighters Pension Board within 90 days after the

  4  effective date of this act.

  5         Section 3.  A new section 17 is added to chapter 23444,

  6  Laws of Florida, 1945, as amended, to read:

  7         Section 17.  Effective Date of Retirement.

  8         Any retirement under this plan, whether for service or

  9  disability, will be effective the first day of the month

10  following the last day the member works prior to retiring or

11  becoming a DROP participant.

12         Section 4.  A new section 21 is added to chapter 23444,

13  Laws of Florida, 1945, as amended, to read:

14         Section 21.  Deferred Retirement Option Plan.

15         (1)  Deferred Retirement Option Plan--The Deferred

16  Retirement Option Plan, hereinafter referred to as the "DROP,"

17  allows any member who has elected to participate in the DROP,

18  hereinafter referred to as a "DROP participant," to receive a

19  lump-sum payment, or other payment, in addition to a monthly

20  pension, upon termination of employment. No benefits shall be

21  paid under this section unless the DROP participant has

22  terminated employment.

23         (2)  DROP Eligibility--Any member may elect to

24  participate in the DROP following the date upon which the

25  member completes 20 years of active service as a firefighter

26  with the City of Orlando and is eligible for a service

27  retirement pension. A member may participate in the DROP only

28  once.

29         (3)  DROP Participation--

30         (a)  An eligible member may participate in the Forward

31  DROP for a period not to exceed a maximum of 60 months or, in

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  1  the alternative, may participate in the Back DROP for a period

  2  not to exceed 36 months. Notwithstanding, DROP participation

  3  may not continue beyond the date when the member's combined

  4  years of credited service and time in the DROP equals 360

  5  months.

  6         (b)  A member may apply to participate in the DROP by

  7  submitting an application to the Board of Trustees, which

  8  shall include the following:

  9         1.  A written election to participate in the DROP. Once

10  submitted to the Board of Trustees, this election will be

11  irrevocable.

12         2.  Selection of the DROP participation and termination

13  dates that satisfy the limitation stated in subsection (2) and

14  paragraph (a). Such termination date shall be in a binding

15  letter of resignation, establishing a deferred termination

16  date.

17         3.  A properly completed DROP application for a service

18  retirement pension.

19         4.  A properly completed designation of named

20  beneficiaries in the event the member dies while participating

21  in the DROP.

22         5.  Any other information as may be required by the

23  Board of Trustees.

24         (c)  The DROP participant shall be a retiree under the

25  provisions of the pension plan. However, participation in the

26  DROP does not alter the DROP participant's employment status,

27  nor does it constitute a contract or guarantee of continued

28  employment.

29         (d)  A DROP participant shall not accrue additional

30  credited service under the pension plan after the effective

31  date of DROP participation.

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  1         (4)  Benefits Payable Under the DROP--

  2         (a)  Effective with the date of DROP participation, the

  3  DROP participant's initial monthly service retirement pension,

  4  including credited service and average monthly salary, shall

  5  be determined and fixed. Such service retirement pension and

  6  earnings shall be credited to the DROP participant's DROP

  7  account no less than monthly. Such earnings shall be credited

  8  as provided in subsection (7).

  9         (b)  The effective date of DROP participation for a

10  participant who has elected to receive benefits under the

11  pension plan shall be the first day of the month selected by

12  the member to begin retirement under the pension plan and

13  participation in the DROP.

14         (c)  The service retirement pension and earnings

15  thereon shall be credited to the DROP participant's DROP

16  account periodically, as pension benefit payments would have

17  otherwise been made.

18         (5)  DROP Types--A member eligible for a service

19  retirement pension may elect a Forward DROP or a Back DROP,

20  but not both.

21         (a)  Forward DROP--Under a Forward DROP, a member may

22  retire, deferring receipt of the service retirement pension

23  while continuing employment with the city. In that case, the

24  deferred monthly service retirement pension shall be credited

25  to the DROP participant's DROP account on behalf of the DROP

26  participant, as provided in subsection (4), for the specified

27  period of the DROP participation, as provided in subsection

28  (3). Upon termination of employment, the DROP participant

29  shall receive the balance of his or her DROP account and begin

30  to receive the monthly service retirement pension.

31

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  1         1.  A DROP participant remains an employee and receives

  2  all the benefits of being an employee during the DROP

  3  participation period; provided, however, the DROP participant

  4  is not eligible to participate in any other city provided

  5  pension or long term disability plan. A DROP participant shall

  6  be subject to termination of employment during the DROP

  7  participation period to the same extent as he or she was prior

  8  to participating in the DROP.

  9         2.  Effective with the start date of a DROP

10  participant's Forward DROP participation, a member's

11  contribution and the normal cost contribution to the pension

12  fund by the city, on behalf of the member, shall cease.

13         (b)  Back DROP--Under a Back DROP, a member may retire

14  with a retroactive date of retirement. A member may not select

15  a retroactive retirement date earlier than the date upon which

16  the member first became eligible for a service retirement

17  pension, and in no event shall the retroactive date of

18  retirement be more than 36 months prior to the date of Back

19  DROP election. The monthly service retirement pension shall be

20  determined as of the retroactive retirement date. The member

21  shall then be credited with an account balance in his or her

22  DROP account that is equal to the account balance he or she

23  would have had if he or she had timely elected a Forward DROP

24  under paragraph (a) on the retroactive retirement date. Upon

25  termination of employment, the Back DROP participant shall

26  receive or transfer the balance of this DROP account, pursuant

27  to subsection (10), and shall begin to receive the monthly

28  service retirement pension adjusted to reflect the retroactive

29  retirement date.

30         (c)  Eligibility exception--Notwithstanding the

31  provisions of subsection 3(a), for 60 days after the effective

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  1  date of this act, a member with more than 324 months of

  2  credited service may elect the Back DROP option and will not

  3  be subject to the combined years of credited service and DROP

  4  participation limitation of 360 months. Said member is subject

  5  to the maximum Back DROP participation period of 36 months. A

  6  member with more than 324 months of credited service as of the

  7  effective date of DROP who does not elect to participate in

  8  the DROP, as set forth herein, during this one-time window

  9  period shall forfeit the right to deviate from the conditions

10  for participation in the DROP set forth in subsection (3).

11         (6)  DROP Accounts--Individual DROP accounts shall be

12  established to account for each DROP participant's accrued

13  DROP benefits, but there shall be no requirement that funds be

14  segregated for any DROP participant. In the case of a member

15  who selects the Back DROP option, the amount of that member's

16  contributions made during the Back DROP period shall not be

17  refunded or credited to the member.

18         (7)  DROP Benefits Earnings and Reporting--

19         (a)  A DROP participant's DROP account shall accrue

20  earnings at 8% (eight percent) simple interest compounded

21  annually, unless the parties otherwise agree.

22         (b)  A DROP account shall be adjusted to reflect

23  earnings until such time as the DROP account is distributed in

24  full to the DROP participant or his or her beneficiaries.

25         (c)  The Board of Trustees shall report to each DROP

26  participant at least annually accrued DROP benefits in the

27  participant's DROP account.

28         (8)  Cost-of-Living Increase--A DROP participant will

29  not be eligible to participate in cost-of-living increases

30  during the DROP period. Cost-of-living increases will be made

31

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  1  pursuant to section 19, starting 3 years after the DROP

  2  participant's termination of employment.

  3         (9)  Benefits Payable upon Termination of DROP--Upon

  4  the DROP participant's termination of employment, for any

  5  reason, whether by resignation, discharge, disability, or

  6  death, the monthly service retirement pension will be

  7  distributed according to the provisions of this plan and the

  8  balance of the DROP account shall be distributed to the DROP

  9  participant or, if deceased, the DROP participant's

10  beneficiaries, as provided herein.

11         (10)  Payment Conditions and Options--Upon the DROP

12  participant's termination of employment, for any reason,

13  whether by resignation, discharge, disability, or death, the

14  Board of Trustees shall distribute the balance of the DROP

15  participant's DROP account, subject to the following

16  provisions:

17         (a)  The Board of Trustees shall receive verification

18  from the city that such DROP participant has terminated

19  employment.

20         (b)  Following the termination of employment, the DROP

21  participant or, if deceased, such DROP participant's

22  beneficiaries shall elect on forms provided by the Board of

23  Trustees to receive payment of the balance of the DROP account

24  in accordance with one of the options listed below. For a DROP

25  participant or beneficiaries who fail to elect a method of

26  payment within 60 days of termination of employment, the Board

27  of Trustees shall pay the balance of the DROP account in one

28  lump sum as provided in subparagraph 1.

29         1.  Lump sum--The balance of the DROP account, less

30  taxes remitted to the Internal Revenue Service, if any, shall

31  be paid to the DROP participant or beneficiaries.

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  1         2.  Direct rollover--The balance of the DROP account

  2  shall be paid directly to the custodian of an eligible

  3  retirement plan as defined in s. 402(c)(8)(B) of the Internal

  4  Revenue Code. However, in the case of an eligible rollover

  5  distribution to the widow or widower as a beneficiary, an

  6  eligible retirement plan is an individual retirement account

  7  or an individual retirement annuity as described in s.

  8  402(c)(9) of the Internal Revenue Code.

  9         3.  Partial lump sum--A portion of the balance of the

10  DROP account shall be paid to the DROP participant or

11  beneficiaries, less taxes remitted to the Internal Revenue

12  Service, if any, and the remaining balance of the DROP account

13  shall be transferred directly to the custodian of an eligible

14  retirement plan as defined in s. 402(c)(8)(B) of the Internal

15  Revenue Code. However, in the case of an eligible rollover

16  distribution to the widow or widower as a beneficiary, an

17  eligible retirement plan is an individual retirement account

18  or an individual retirement annuity as described in s.

19  402(c)(9) of the Internal Revenue Code. The proportions shall

20  be specified by the DROP participant or beneficiaries.

21         4.  Other methods--The balance of the DROP account

22  shall be paid by a method that is in compliance with the

23  Internal Revenue Code and as adopted by the Board of Trustees.

24         (c)  The form of payment selected by the DROP

25  participant or beneficiaries complies with the minimum

26  distribution requirements of the Internal Revenue Code.

27         (11)  Disability--A DROP participant is not eligible to

28  apply for a disability pension under this pension plan.

29         (12)  Death of a DROP Participant--

30         (a)  Upon the death of a DROP participant, the named

31  DROP beneficiaries shall be entitled to apply for and receive

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  1  the balance of the DROP participant's DROP account as provided

  2  in subsections (9) and (10). DROP payments to a beneficiary

  3  shall be in additional to any other retirement benefits

  4  payable to the beneficiary.

  5         (b)  The monthly service retirement pension accrued to

  6  the DROP account during the month of the DROP participant's

  7  death shall be the final monthly service retirement pension

  8  benefit credited for such DROP participant.

  9         (c)  Eligibility to participate in the DROP terminates

10  upon the death of the DROP participant. If the DROP

11  participant dies on or after the effective date of enrollment

12  in the DROP, but prior to the first monthly service retirement

13  pension benefit being credited to the DROP, pension plan

14  benefits shall be paid in accordance with applicable

15  provisions of this pension plan.

16         (d)  A DROP participant's beneficiaries shall not be

17  eligible to receive survivor benefits as provided in sections

18  8 and 10.

19         (13)  A DROP participant shall not be deemed to have

20  been reemployed after retirement as that term is used

21  elsewhere in the plan.

22         (14)  Any actuarially-determined additional cost

23  resulting form the benefits in this section shall be borne by

24  the members of the pension plan.

25         Section 5.  A new section 24 is added to chapter 23444,

26  Laws of Florida, 1945, as amended, to read:

27         Section 24.

28         (1)  Upon implementation, the city shall solely for the

29  purpose of compliance with s. 414(h) of the Internal Revenue

30  Code, pick up, for the purpose specified in that section,

31  member contributions required by the act for all salary earned

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  1  by the member after implementation. Member contributions

  2  picked up under the provisions of this section shall be

  3  treated as city contributions for purposes of determining

  4  income tax obligations under the Internal Revenue Code;

  5  however, such picked up member contributions shall be included

  6  in the determination of the member's gross annual salary for

  7  all other purposes under federal and state laws.

  8         (2)  Members' contributions picked up under this

  9  section shall continue to be designated member contributions

10  for all purposes of the act and shall be considered as part of

11  the member's salary for purposes of determining the amount of

12  the member's contributions. The provisions of this section are

13  mandatory, and the member shall have no option concerning the

14  pick up or to receive the contributed amounts directly instead

15  of having them paid by the city to the pension fund.

16         (3)  Implementation occurs upon authorization by the

17  Board of Trustees following receipt of a favorable letter of

18  determination as to the qualified plan status of the fund. In

19  no event may implementation occur other than at the beginning

20  of a pay period.

21         Section 6.  A new section 26 is added to chapter 23444,

22  Laws of Florida, 1945, as amended, to read:

23         Section 26--Firefighter Pension Fund Optional

24  Retirement Benefit Plan.

25         (A)  Creation of Optional Retirement Benefit Plan for

26  Firefighters--

27         (1)  There is hereby created an alternative pension

28  benefit plan for City of Orlando Firefighters, to be known as

29  the "Optional Retirement Benefit Plan."

30         (2)  Any member of the Fire Department of the City of

31  Orlando who is otherwise entitled to participate in the

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  1  pension benefits as described in sections 1-25 above may

  2  elect, in lieu of the pension benefits as provided in sections

  3  7-25, instead to participate in the Optional Retirement

  4  Benefit Plan as provided in this section. This election must

  5  be exercised by written instrument delivered to the Orlando

  6  Firefighters Pension Board and may be exercised at any time

  7  prior to the member's retirement. Once exercised, the election

  8  is irrevocable. The employee contribution rate will be the

  9  same regardless of the retirement option chosen by the

10  employee.

11         (3)  Each firefighter who has elected to participate in

12  the Optional Retirement Benefit Plan may, on a form provided

13  for that purpose, signed and filed with the Board of Trustees,

14  designate a choice of one or more persons, named sequentially

15  or jointly, as his or her beneficiary (or beneficiaries) to

16  receive the benefit, if any, which may be payable under the

17  Optional Retirement Benefit Plan in the event of his or her

18  death; and each designation may be revoked by such firefighter

19  by signing and filing with the Board of Trustees a new

20  designation-of-beneficiary form. If no beneficiary is named in

21  the manner provided by this subsection, or if no beneficiary

22  designated by the member survives him or her, the death

23  benefit, if any, which may be payable under the plan with

24  respect to such deceased firefighter shall be paid by the

25  Board of Trustees to the estate of such deceased firefighter,

26  provided that the Board of Trustees, in its discretion, may

27  direct that the commuted value of the remaining monthly income

28  payments be paid in a lump sum. Any payment made to any person

29  pursuant to this subsection shall operate as a complete

30  discharge of all obligations under the plan with regard to the

31  deceased firefighter and any other persons with rights under

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  1  the plan and shall not be subject to review by anyone but

  2  shall be final, binding, and conclusive on all persons ever

  3  interested hereunder. Notwithstanding any other provision of

  4  law to the contrary, the surviving spouse of any Optional

  5  Retirement Benefit Plan pension participant member killed in

  6  the line of duty shall not lose survivor retirement benefits

  7  if the spouse remarries.

  8         (4)  Any member retired under this section who desires

  9  to change his or her joint petitioner or beneficiary shall

10  file with the Board of Trustees of his or her plan a notarized

11  notice of such change either by registered letter or on such

12  form as is provided by the administrator of the plan. Upon

13  receipt of a completed change of joint pensioner or

14  beneficiary form or such other notice, the Board of Trustees

15  shall adjust the member's monthly benefit by the application

16  of actuarial tables and calculations developed to ensure that

17  the benefit paid is the actuarial equivalent of the present

18  value of the member's current benefit. Nothing herein shall

19  preclude a plan from actuarially adjusting benefits or

20  offering options based upon age, early retirement, or

21  disability.

22         (5)  If a firefighter having at least 10 years of

23  credited service dies prior to retirement, his or her

24  beneficiary is entitled to the benefits otherwise payable to

25  the firefighter at early or normal retirement age.

26         (B)  Definitions--The following words and phrases, as

27  used in this section, have the following meanings:

28         (1)  "Average final compensation" for a full-time

29  firefighter means one-twelfth of the average annual

30  compensation of the 5 best years of the last 10 years of

31  creditable service prior to retirement, termination, or death,

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  1  or the career average as a full-time firefighter since July 1,

  2  1953, whichever is greater. A year shall be 12 consecutive

  3  months.

  4         (2)  "Compensation" or "salary means the fixed monthly

  5  remuneration paid a firefighter.

  6         (a)  The member's compensation or salary contributed as

  7  employee-elective salary reductions or deferrals to any salary

  8  reduction, deferred compensation, or tax-sheltered annuity

  9  program authorized under the Internal Revenue Code shall be

10  deemed to be the compensation or salary the member would

11  receive if he or she were not participating in such program

12  and shall be treated as compensation for retirement purposes

13  under this section.

14         (b)  For any person who first becomes a member in any

15  plan year beginning on or after January 1, 1996, compensation

16  for any plan year shall not include any amounts in excess of

17  the Internal Revenue Code s. 401(a)(17) limitation (as amended

18  by the Omnibus Budget Reconciliation Act of 1993), which

19  limitation of $150,000 shall be adjusted as required by

20  federal law for qualified government plans and shall be

21  further adjusted for changes in the cost of living in the

22  manner provided by Internal Revenue Code s. 401(a)(17)(B). For

23  any person who first became a member prior to the first plan

24  year beginning on or after January 1, 1996, the limitation on

25  compensation shall be not less than the maximum compensation

26  amount that was allowed to be taken into account under the

27  plan as in effect on July 1, 1993, which limitation shall be

28  adjusted for changes in the cost of living since 1989 in the

29  manner provided by Internal Revenue Code s. 401(a)(17)(1991).

30         (3)  "Creditable service" or "credited service" means

31  the aggregate number of years of service, and fractional parts

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  1  of years of service, of any firefighter, omitting intervening

  2  years and fractional parts of years when such firefighter may

  3  not have been employed by the municipality, subject to the

  4  following conditions:

  5         (a)  No firefighter will receive credit for years or

  6  fractional parts of years of service if he or she has

  7  withdrawn his or her contributions to the fund for those years

  8  or fractional parts of years of service, unless the

  9  firefighter repays into the fund the amount he or she has

10  withdrawn, plus interest determined by the Board. The member

11  shall have at least 90 days after his or her reemployment to

12  make repayment.

13         (b)  A firefighter may voluntarily leave his or her

14  contributions in the fund for a period of 5 years after

15  leaving the employ of the fire department, pending the

16  possibility of being rehired by the same department, without

17  losing credit for the time he or she has participated actively

18  as a firefighter. If the firefighter is not reemployed as a

19  firefighter, with the same department, within 5 years, his or

20  her contributions shall be returned without interest.

21         (C)  Requirements for retirement--

22         Any firefighter who completes 10 or more years of

23  creditable service as a firefighter and attains age 55, or

24  completes 25 years of creditable service as a firefighter and

25  attains age 52, and who for such minimum period has been a

26  member of the firefighter's pension trust fund, is eligible

27  for normal retirement benefits. Normal retirement under the

28  plan is retirement from the service of the municipality on or

29  after the normal retirement date. In such event, payment of

30  retirement income will be governed by the following provisions

31  of this section:

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  1         (1)  The normal retirement date of each firefighter

  2  will be the first day of the month coincident with or next

  3  following the date on which he or she has completed 10 or more

  4  years of creditable service and attained age 55 or completed

  5  25 years of creditable service and attained age 52.

  6         (2)  The amount of monthly retirement income payable to

  7  a full-time firefighter who retires on or after his or her

  8  normal retirement date shall be an amount equal to the number

  9  of his or her years of credited service multiplied by 2

10  percent of his or her average final compensation as a

11  full-time firefighter.

12         (3)  The monthly retirement income payable in the event

13  of normal retirement will be payable on the first day of each

14  month. The first payment will be made on the firefighter's

15  normal retirement date, or on the first day of the month

16  coincident with or next following his or her actual

17  retirement, if later, and the last payment will be the payment

18  due next preceding the firefighter's death; except that, in

19  the event the firefighter dies after retirement but before he

20  or she has received retirement benefits for a period of 10

21  years, the same monthly benefit will be paid to the

22  beneficiary (or beneficiaries) as designated by the

23  firefighter for the balance of such 10-year period. If a

24  firefighter continues in the service of the municipality

25  beyond his or her normal retirement date and dies prior to his

26  or her date of actual retirement, without an option made

27  pursuant to part (D) of this section being in effect, monthly

28  retirement income payments will be made for a period of 10

29  years to a beneficiary (or beneficiaries) designated by the

30  firefighter as if the firefighter had retired on the date on

31  which his or her death occurred.

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  1         (4)  Early retirement under the plan is retirement from

  2  the service of the municipality, with the consent of the

  3  municipality, as of the first day of any calendar month which

  4  is prior to the firefighter's normal retirement date but

  5  subsequent to the date as of which he or she has both attained

  6  the age of 50 years and has been a member of this fund for 10

  7  continuous years. In the event of early retirement, payment of

  8  retirement income shall be governed as follows: the monthly

  9  amount of retirement income payable to a firefighter who

10  retires prior to his or her normal retirement date shall be in

11  the amount computed as described in subsection (2), taking

12  into account the firefighter's credited service to his or her

13  date of actual retirement and final monthly compensation as of

14  such date, such amount of retirement income to be actuarially

15  reduced to take into account the firefighter's younger age and

16  the earlier commencement of retirement income benefits. The

17  amount of monthly income payable in the event of early

18  retirement will be paid in the same manner as in subsection

19  (3). In no event shall the early retirement reduction exceed 3

20  percent for each year by which the member's age at retirement

21  preceded the member's normal retirement age, as provided in

22  subsection (1).

23         (D)  Optional forms of retirement income--

24         (1)  In lieu of the amount and form of retirement

25  income payable in the event of normal or early retirement as

26  specified in part (C) of this section, a firefighter, upon

27  written request to the Board of Trustees and subject to the

28  approval of the Board of Trustees, may elect to receive a

29  retirement income or benefit of equivalent actuarial value

30  payable in accordance with one of the following options:

31

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  1         (a)  A retirement income of larger monthly amount,

  2  payable to the firefighter for his or her lifetime only.

  3         (b)  A retirement income of a modified monthly amount,

  4  payable to the firefighter during the joint lifetime of the

  5  firefighter and a joint pensioner designated by the

  6  firefighter, and following the death of either of them, 100

  7  percent, 75 percent, 66 2/3 percent, or 50 percent of such

  8  monthly amounts payable to the survivor for the lifetime of

  9  the survivor.

10         1.  The firefighter, upon electing any option of this

11  section, will designate the joint pensioner or beneficiary (or

12  beneficiaries) to receive the benefit, if any, payable under

13  the plan in the event of his or her death, and will have the

14  power to change such designation from time to time, but any

15  such change shall be deemed a new election and will be subject

16  to approval by the Board of Trustees. Such designation will

17  name a joint pensioner or one or more primary beneficiaries

18  where applicable. If a firefighter has elected an option with

19  a joint pensioner or beneficiary and his or her retirement

20  income benefits have commenced, the firefighter may thereafter

21  change the designated joint pensioner or beneficiary, but only

22  if the Board of Trustees consents to such change and if the

23  joint pensioner last previously designated by the firefighter

24  is alive when the firefighter files with the Board of Trustees

25  a request for such change.

26         2.  The consent of a firefighter's joint pensioner or

27  beneficiary to any such change shall not be required.

28         3.  The Board of Trustees may request such evidence of

29  the good health of the joint pensioner that is being removed

30  as it may require and the amount of the retirement income

31  payable to the firefighter upon designation of a new joint

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  1  pensioner shall be actuarially redetermined taking into

  2  account the age of the former joint pensioner, the new joint

  3  pensioner, and the firefighter. Each such designation will be

  4  made in writing on a form prepared by the Board of Trustees

  5  and on completion will be filed with the Board of Trustees. In

  6  the event that no designated beneficiary survives the

  7  firefighter, such benefits as are payable in the event of the

  8  death of the firefighter subsequent to his or her retirement

  9  shall be paid as provided in subsection (A)(3) of this

10  section.

11         (2)  Retirement income payments shall be made under the

12  option elected in accordance with the provisions of this

13  section and shall be subject to the following limitations:

14         (a)  If a firefighter dies prior to his or her normal

15  retirement date or early retirement date, whichever first

16  occurs, no retirement benefit will be payable under the option

17  to any person, but the benefits, if any, will be determined

18  under subsection (A)(5) of this section.

19         (b)  If the designated beneficiary (or beneficiaries)

20  or joint pensioner dies before the firefighter's retirement

21  under the plan, the option elected will be canceled

22  automatically and a retirement income of the normal form and

23  amount will be payable to the firefighter upon retirement as

24  if the election had not been made, unless a new election is

25  made in accordance with the provisions of this section or a

26  new beneficiary is designated by the firefighter prior to

27  retirement and within 90 days after the death of the

28  beneficiary.

29         (c)  If both the retired firefighter and the

30  beneficiary (or beneficiaries) designated by him or her die

31  before the full payment has been effected under any option

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  1  providing for payments for a period certain and life

  2  thereafter, made pursuant to the provisions of paragraph

  3  (1)(c), the Board of Trustees may, in its discretion, direct

  4  that the commuted value of the remaining payments be paid in a

  5  lump sum and in accordance with subsection (A)(3) of this

  6  section.

  7         (3)  No firefighter may make any change in his or her

  8  retirement option after the date of cashing or depositing the

  9  first retirement check.

10         (E)  Disability retirement--

11         (1)  A firefighter having 10 or more years of credited

12  service or a firefighter who becomes totally and permanently

13  disabled in the line of duty, regardless of length of service,

14  may retire from the service of the municipality under the plan

15  if the firefighter becomes totally and permanently disabled as

16  defined in subsection (2) by reason of any cause other than a

17  cause set out in subsection (3) on or after the effective date

18  of the plan. Such retirement shall herein be referred to as

19  "disability retirement."

20         (2)  A firefighter will be considered totally disabled

21  if, in the opinion of the Board of Trustees, he or she is

22  wholly prevented from rendering useful and efficient service

23  as a firefighter; and a firefighter will be considered

24  permanently disabled if, in the opinion of the Board of

25  Trustees, he or she is likely to remain so disabled

26  continuously and permanently from a cause other than is

27  specified in subsection (3).

28         (3)  A firefighter will not be entitled to receive any

29  disability retirement income if the disability is a result of:

30         (a)  Excessive and habitual use by the firefighter of

31  drugs, intoxicants, or narcotics;

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  1         (b)  Injury or disease sustained by the firefighter

  2  while willfully and illegally participating in fights, riots,

  3  or civil insurrections or while committing a crime;

  4         (c)  Injury or disease sustained by the firefighter

  5  while serving in any armed forces; or

  6         (d)  Injury or disease sustained by the firefighter

  7  after his or her employment has terminated.

  8         (4)  No firefighter shall be permitted to retire under

  9  the provisions of this section until he or she is examined by

10  a duly qualified physician or surgeon, to be selected by the

11  Board of Trustees for that purpose, and is found to be

12  disabled in the degree and in the manner specified in this

13  section. Any firefighter retiring under this section may be

14  examined periodically by a duly qualified physician or surgeon

15  or board of physicians and surgeons, to be selected by the

16  Board of Trustees for that purpose, to determine if such

17  disability has ceased to exist.

18         (5)  The benefit payable to a firefighter who retires

19  from the service of a municipality due to total and permanent

20  disability as a direct result of a disability is the monthly

21  income payable for 10 years certain and life for which, if the

22  firefighter's disability occurred in the line of duty, his or

23  her monthly benefit shall be the accrued retirement benefit,

24  but shall not be less than 42 percent of his or her average

25  monthly salary at the time of disability. If, after 10 years

26  of service, the disability is other than in the line of duty,

27  the firefighter's monthly benefit shall be the accrued normal

28  retirement benefit, but shall not be less than 25 percent of

29  his or her average monthly salary at the time of disability.

30         (6)  The monthly retirement income to which a

31  firefighter is entitled in the event of his or her disability

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  1  retirement shall be payable on the first date of the first

  2  month after the Board of Trustees determines such entitlement.

  3  However, the monthly retirement income shall be payable as of

  4  the date the Board determines such entitlement, and any

  5  portion due for a partial month shall be paid together with

  6  the first payment. The last payment will be, if the

  7  firefighter recovers from the disability, the payment due next

  8  preceding the date of such recovery or, if the firefighter

  9  dies without recovering from the disability, the payment due

10  next preceding his or her death or the 120th monthly payment,

11  whichever is later. In lieu of the benefit payment as provided

12  in this paragraph, a firefighter may select an optional form

13  as provided in part (D) of this section. Any monthly

14  retirement income payments due after the death of a disabled

15  firefighter shall be paid to the firefighter's designated

16  beneficiary (or beneficiaries) as provided in subsection

17  (A)(3) of this section and subsection (A)(5) of this section.

18         (7)  If the Board of Trustees finds that a firefighter

19  who is receiving a disability retirement income is no longer

20  disabled as provided herein, the Board of Trustees shall

21  direct that the disability retirement income be discontinued.

22  "Recovery from disability" as used herein means the ability of

23  the firefighter to render useful and efficient service as a

24  firefighter.

25         (8)  If the firefighter recovers from disability and

26  reenters the service as a firefighter, active service prior to

27  and following the period of disability will be deemed to have

28  been continuous, but the period beginning with the first month

29  for which he or she received a disability retirement income

30  payment and ending with the date he or she reentered the

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  1  service may not be considered as credited service for the

  2  purpose of this plan.

  3         (F)  Lump-sum payment of small retirement income--

  4         If the monthly retirement income payable to any person

  5  entitled to benefits hereunder is less than $100, or if the

  6  single-sum value of the accrued retirement income is less than

  7  $5,000, as of the date of retirement or termination of

  8  service, whichever is applicable, the Board of Trustees, in

  9  the exercise of its discretion, may specify that the actuarial

10  equivalent of such retirement income be paid in a lump sum.

11         (G)  Diseases of firefighters suffered in line of duty;

12  presumption--

13         Any condition or impairment of health of a firefighter

14  caused by tuberculosis, hypertension, or heart disease

15  resulting in total or partial disability or death shall be

16  presumed to have been accidental and suffered in the line of

17  duty unless the contrary is shown by competent evidence,

18  provided that such firefighter shall have successfully passed

19  a physical examination before entering into such service,

20  which examination failed to reveal any evidence of such

21  condition. This section shall be applicable to all

22  firefighters only with reference to pension and retirement

23  benefits under this section.

24         (H)  Conformance with the law--

25         The provisions of this section are intended to provide

26  firefighters with a pension plan that clearly provides the

27  minimum benefits and standards required by state law under

28  chapter 175, Florida Statutes, 1999, in order to allow the

29  city to continue to receive funds from the Police and

30  Firefighters' Premium Tax Trust Fund. With the addition of

31  this section, this plan is hereby deemed to be in compliance

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  1  with the minimum standards and minimum benefits level required

  2  by chapter 175, Florida Statutes, 1999, and hence eligible to

  3  participate in premium tax fund distribution under that

  4  chapter. Should the provisions of chapter 175, Florida

  5  Statutes, 1999, be amended in the future, the legislative body

  6  of the City of Orlando may amend section 26 by providing such

  7  additional benefits to firefighters participating in the

  8  Optional Retirement Benefit Plan as may be necessary to meet

  9  the minimum state standards prerequisite to the receipt of

10  Police and Firefighters' Premium Tax Trust Fund moneys.

11         Section 7.  A new section 27 is added to chapter 23444,

12  Laws of Florida, 1945, as amended, to read:

13         Section 27.  Tax Qualification--

14         The legislative body of the City of Orlando may amend

15  the pension plan to the limited extent necessary to obtain tax

16  qualification of the plan under the Internal Revenue Code, but

17  must obtain prior agreement of the members and their

18  collective bargaining agent, if any, should such required

19  amendments change any plan benefits.

20         Section 8.  This act shall take effect October 1, 2000.

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