HB 1433

1
A bill to be entitled
2An act relating to the City of Orlando Firefighter Pension
3Fund, Orange County; amending chapter 23444, Laws of
4Florida, 1945, as amended; providing a member with 20
5years or more of service who is involuntarily determined
6to be permanently and totally disabled not in the line of
7duty the right to elect a normal service retirement under
8certain conditions; providing for a change in the accrual
9rate for normal retirement benefit; providing for a change
10of the accrual rate for line of duty death benefits if
11member has completed more than 23.53 years of service;
12changing the Back Deferred Retirement Option Program
13(DROP) from 36 months to 60 months; revising provisions
14relating to DROP accounts; providing that distributions
15comply with the Internal Revenue Code; providing for
16changes necessary to maintain tax qualification;
17authorizing the legislative body of the City of Orlando to
18adjust the pension plan to comply with the Internal
19Revenue Code and to create a SHARE program or plan to
20provide for certain extra benefits; providing that benefit
21changes are not retroactive; specifying this act does not
22provide additional benefits to certain members and
23beneficiaries; providing for retroactive effect; providing
24effective dates.
25
26Be It Enacted by the Legislature of the State of Florida:
27
28     Section 1.  Effective July 1, 2009, sections 7, 12,
2914, 21, and 27 of chapter 23444, Laws of Florida, 1945, as
30amended, are amended to read:
31     Section 7.  Permanent Disability Pension; Not in Line
32of Duty. Each and every active member of the department who
33shall become permanently and totally disabled, if said
34disability was not directly caused by and attributable to
35the performance of duty as a member of the fire department
36and was not caused by the member's own imprudence, upon
37establishing to the satisfaction of said board that the
38member is so permanently and totally disabled, shall be
39entitled to a monthly pension as follows: A member with
40less than 10 full years of credited service at time of
41impairment shall be entitled to receive an amount equal to
423 percent of the member's average monthly salary for each
43year of said credited service, and a member with 10 full
44years or more of credited service at time of impairment
45shall be entitled to 4 percent of the member's average
46monthly salary for each year of said credited service.
47However, the monthly pension shall not exceed 60 percent of
48the member's average monthly salary as determined herein;
49provided, however, that the monthly pension for a member
50with more than twenty (20) full years of credited service
51at time of impairment may exceed sixty (60) percent and
52shall be sixty (60) percent plus four (4) per cent per year
53for each year of credited service in excess of twenty (20),
54based on such years of credited service, but may not exceed
55eighty (80) percent, unless the member has completed 40
56years of credited service in which case the member shall
57receive an additional 2 percent per year for each year in
58excess of 40 years of credited service. Provided further, a
59member with 20 years or more of credited service who is
60determined by the board of trustees to be permanently and
61totally disabled not in the line of duty, but without
62application for not in the line of duty disability
63benefits, may within thirty (30) days of such determination
64elect in writing to receive the normal retirement benefit
65that the member would be entitled to receive based on years
66of credited service. Provided, however, the total monthly
67benefit shall not exceed 100 percent of the member's
68average monthly salary. The phrase "permanently and totally
69disabled" shall be construed to mean and include the loss
70of one or more limbs, loss of sight in one or both eyes,
71loss of hearing in one or both ears and any other condition
72which renders the member unfit to perform the required
73duties of the member's rank held at the time of impairment.
74The average monthly salary shall be determined by computing
75the member's average monthly salary for the member's last 3
76years of credited service or for the member's total
77credited service if less than 3 years, or by computing the
78member's average monthly salary for the five best years of
79the last ten years of credited service, whichever amount is
80greater. Upon the death of the member on said disability
81pension, benefits shall be paid as follows:
82     (1)  If a member has not elected and started receipt of the
83Section 34(1)(a) life with ten (10) years certain form of
84payment, or the Section 34(1)(b) life only form of payment, or
85the Section 34(1)(c) joint pensioner form of payment, benefits
86shall be paid pursuant to Section 14, "Benefits Payable Upon
87Death of Member", to the surviving spouse and issues under the
88age of eighteen (18), or dependent parents, and Section 35(3),
89"10 Year Certain Guarantee", if applicable.
90     (2)  If a member has elected and started receipt of the
91Section 34(1)(a) life with ten (10) years certain form of
92payment and the member has not received 120 monthly payments,
93then benefits otherwise payable to the member shall be paid
94pursuant to Section 32, "Beneficiaries", for the remainder of
95the 120 monthly payments beginning on the first day of the month
96immediately following the member's death regardless of the age
97of the deceased member. If the firefighter makes this election,
98no benefits shall be paid pursuant to Section 14(5)(b) or
99Section 14(5)(d) to the surviving spouse, issue in being under
100the age of eighteen (18), or dependent parents. Provided
101however, the firefighter may designate as beneficiaries the
102surviving spouse, issue in being under the age of eighteen (18),
103or dependent parents to receive the remainder of the 120 monthly
104payments.
105     (3)  If a member has elected and started receipt of the
106Section 34(1)(b) life only form of payment, no further payments
107shall be made upon the death of the member.
108     (4)  If a member has elected and started receipt of the
109Section 34(1)(c) joint pensioner form of payment, benefits shall
110be paid as provided therein.
111
112Notwithstanding anything that may be to the contrary in
113this act, at age 47 a member then receiving benefits under
114this section may make the election provided in section
11512(1) or section 12(2) as the case may be and section 18,
116all of this act (Laws of Fla. ch. 23444(1945), as amended)
117in the manner therein specified, provided he is qualified
118by length of service prior to said disability and provided
119he makes the election within the 30 day period after
120reaching age 47. If the election is exercised in favor of
121salary deduction return, the return shall be minus
122disability payments paid hereunder. If the election is
123exercised, all of the member's rights and the rights of the
124surviving spouse and issue and dependent parents under
125Section 14 shall cease.
126     Section 12.  Service Requirement for Voluntary Retirement.
127     (1)  Normal Retirement Date.
128     A member's normal retirement date shall be the first day of
129the month coincident with or next following the earlier of the
130completion of twenty (20) years of credited service regardless
131of age, or attainment of age forty-seven (47) and the completion
132of ten (10) years of credited service. Any member may retire on
133the first day of any month after the member's normal retirement
134date, and each member shall become 100% vested in his accrued
135benefit on the member's normal retirement date. Normal
136retirement is retirement from employment as a firefighter with
137the City of Orlando on or after the normal retirement date. Any
138member of the Fire Department who has more than 10 years of
139credited service but less than 20 years of credited service and
140who is discharged or voluntarily separates from service in the
141department thereafter but before attaining age forty-seven (47),
142may make an election to receive a monthly pension beginning at
143age 47.
144     (2)  Normal Retirement Benefit.
145     (a)  A member of the Fire Department who has more than 10
146or more years of credited service but less than 20 years of
147credited service shall be entitled to an amount equal to the
148number of the member's years of credited service multiplied by
1492.0% multiplied by the member's average monthly salary.
150     (b)  Any member of the Fire Department who has 20 years or
151more of credited service but less than 42.5 40 years of credited
152service shall be entitled to a monthly pension of 68% 60% of the
153member's average monthly salary plus 3.4% 4% for each year of
154credited service in excess of 20 years of credited service but
155not to exceed 85% 80%.
156     (c)  Any member of the Fire Department who has completed
15742.5 40 years of credited service shall receive in addition to
158the amount specified in subparagraph (b) an additional 2% per
159year of credited service for each year in excess of 42.5 40
160years of service; provided, however, the total monthly benefit
161shall not exceed 100% of the average monthly salary used in
162calculating the member's pension benefit.
163     (3)  Average Monthly Salary shall be determined by
164computing the average monthly salary of the member's last three
165(3) years of credited service, or by computing the member's
166average monthly salary for the five (5) best years of the last
167ten (10) years of credited service, whichever amount is greater.
168     (4)  The additional actuarial cost of providing benefits to
169members who retire after completing 20 years of credited service
170but before attaining age 47 shall be borne by the members.
171     (5)  If the member should die after separation or discharge
172before timely electing the pension form of payment or after the
173election but before receipt of the pension, no benefit will be
174paid under a Section 34(1)(b) life only option or a Section
17534(1)(c) joint pensioner option, and benefits shall be paid
176pursuant to Section 14, "Benefits Payable Upon Death of Member",
177with the Section 35(2) "10 years certain Guarantee", unless the
178member had elected the Section 34(1)(a) life with ten (10) years
179certain form of payment.
180     (6)  Upon the death of a member who had started receipt of
181a Section 12 pension including a pension credited to the
182member's DROP account, benefits shall be paid as follows:
183     (a)  If a member has not elected the Section 34(1)(a) life
184with ten (10) years certain form of payment, or the Section
18534(1)(b) life only form of payment, or the Section 34(1)(c)
186joint pensioner form of payment, benefits shall be paid pursuant
187to Section 14 to the surviving spouse and issues under the age
188of eighteen (18), or dependent parents, with Section 35(3), "10
189Year Certain Guarantee", if applicable.
190     (b)  If a member has elected the Section 34(1)(a) life with
191ten (10) years certain form of payment and the member has not
192received 120 monthly payments, then benefits otherwise payable
193to the member shall be paid pursuant to Section 32,
194"Beneficiaries", for the remainder of the 120 monthly payments
195beginning on the first day of the month immediately following
196the member's death regardless of the age of the deceased member.
197If the firefighter makes this election, no benefits shall be
198paid pursuant to Section 14(5)(b) or Section 14(5)(d) to the
199surviving spouse, issue in being under the age of eighteen (18),
200or dependent parents. Provided however, the firefighter may
201designate as beneficiaries the surviving spouse, issue in being
202under the age of eighteen (18), or dependent parents to receive
203the remainder of the 120 monthly payments.
204     (c)  If a member has elected the Section 34(1)(b) life only
205form of payment, no further payments shall be made upon the
206death of the member. If a member has elected the Section
20734(1)(c) joint pensioner form of payment, benefits shall be paid
208as provided therein.
209     Section 14.  Benefits Payable Upon Death of Member.
210     (1)  Unless the member has elected a life with 10 year
211certain form of payment pursuant to Section 34(1)(a); or has
212elected and started receipt of or started DROP account accrual
213of a life only form of payment pursuant to Section 34(1)(b); or
214has elected and started receipt of or started DROP account
215accrual of a joint pensioner form of payment pursuant to Section
21634(1)(c), upon the death of the member, the amounts stated in
217subsection (5) shall be paid to the member's surviving spouse,
218if any, for the remainder of the surviving spouse's natural
219life, regardless of marital status; provided, however, if the
220deceased member left surviving issue in being under the age of
221eighteen (18) who are issue of said decedent and the member's
222surviving spouse, twenty-five percent (25%) of the aforesaid
223surviving spouse's pension shall be paid to said surviving
224spouse for said issue, until said issue become eighteen (18), at
225which time the full surviving spouse's pension shall be paid to
226said surviving spouse for the remainder of the surviving
227spouse's natural lifetime regardless of marital status; and,
228provided further, if said deceased member died with issue
229surviving in being under the age of eighteen (18) who are issue
230of said decedent and not of the surviving spouse, twenty-five
231(25%) of the aforesaid surviving spouse's pension shall be
232divided and paid on a per capita basis, to:
233     (a)  the legal guardian or guardians of said issue, or a
234trustee of a trust of which said issue is a beneficiary, for
235said issue; until age eighteen (18); and
236     (b)  the surviving spouse, for issue, if any, the surviving
237spouse and the deceased member may have had who survived the
238member and were in being and under eighteen (18) years of age at
239the time of the member's death.
240     (2)  If said decedent leaves no surviving spouse, but does
241leave issue as aforesaid, the aforesaid full surviving spouse's
242pension shall be divided and paid on a per capita basis to the
243legal guardian or guardians of said issue, or a trustee of a
244trust of which said issue is a beneficiary, for said issue,
245until age eighteen (18). Notwithstanding anything to the
246contrary in this section, all payments for any issue shall cease
247at age eighteen (18) or at death of said issue prior thereto or
248at the times provided in Section 22 of this act and said
249cancelled payments for said issue shall not serve to increase
250the payments to any other issue but shall be paid to said
251surviving spouse if then alive for the remainder of the
252surviving spouse's natural lifetime regardless of marital
253status.
254     (3)  If a deceased member of the said fire department,
255active or retired, shall leave no surviving spouse and shall not
256leave a surviving child or children in being and his issue and
257under the age of eighteen (18) years, but shall leave a
258surviving parent who is entirely dependent upon said member for
259support, the dependent parents pro rata shall receive the same
260pension to which the surviving spouse would have been entitled,
261unless and until such dependent parent becomes self-supporting
262or dies. If both dependent parents are receiving pension and one
263becomes self-supporting or dies, the one hundred percent (100%)
264of the benefit shall be paid to the other dependent parent.
265     (4)  Notwithstanding anything to the contrary in this
266section, the fund, board of trustees, comptroller and the city
267shall not be liable or responsible in any way for identification
268or verification of the authenticity of surviving spouses,
269issues, guardians, or trustees, or dependent parents or changes
270in status thereof; moreover, without limiting the foregoing, to
271be entitled to be considered for said payments provided herein,
272proof of identification and authenticity of the surviving
273spouse, issue, guardians, and trustees, or dependent parents
274along with sufficient address and status information under
275Section 22 of this Act, must be presented to the board in
276writing within thirty (30) days of the death of said member and
277proof of changes therein presented to the board in writing
278within thirty (30) days after the change. Without limiting the
279foregoing sentence, any surviving spouse deeming himself or
280herself entitled under this section to an increase in pension on
281account of change in status of issue shall present in writing to
282said board proof satisfactory to the board of said change within
283thirty (30) days thereafter. If the board of trustees decides,
284in its discretion, that proof of any of the aforesaid changes
285has been satisfactorily shown to it in writing, the change of
286pension shall be made by said board effective with the next
287monthly payment due after said showing; provided, however, no
288change in pension payment or amount thereof shall be
289retroactive.
290     (5)(a)  If the member qualifies for benefits pursuant to
291Section 7, "Permanent Disability Pension; Not in Line of Duty",
292the amount of the monthly pension shall be equal to sixty-five
293percent (65%) of the pension that the deceased member was
294entitled to receive based on years of credited service, unless
295the member had twenty (20) years of credited service at time of
296retirement on disability in which case the monthly pension shall
297be equal to seventy-five percent (75%) of the pension that the
298deceased member was entitled to receive based on years of
299credited service.
300     (b)  If the member's death qualifies for benefits pursuant
301to Section 8, "Pension for Death In Line of Duty", the monthly
302pension shall be seventy-five percent (75%) of eighty percent
303(80%) of the member's average monthly salary; provided however a
304member who has completed 23.53 forty (40) years of credited
305service shall be entitled to an additional 3.4% two percent (2%)
306over the eighty percent (80%) for each year of credited service
307in excess of 23.53 forty (40) years of credited service, but not
308to exceed eighty-five percent (85%) unless the deceased member
309had completed 42.5 years of credited service in which case the
310benefit shall be increased by an additional 2% per year for each
311year in excess of 42.5 years of credited service, but not to
312exceed one-hundred percent (100%).
313     (c)  If the member qualifies for benefits pursuant to
314Section 9, "Permanent Disability Pension: In Line of Duty", the
315monthly pension shall be seventy-five percent (75%) of the
316pension the deceased member was entitled to receive.
317     (d)  If the member's death qualifies pursuant to Section
31810, "Pension for Death Not In Line of Duty", the monthly pension
319shall be sixty-five percent (65%) of the pension that the member
320was entitled to receive; provided however that if the active
321member at the time of his or her death shall have reached normal
322retirement date, the monthly pension shall be equal to seventy-
323five percent (75%) of the pension the deceased member was
324entitled to receive based on years of credited service.
325     (e)  If a member is entitled to a pension pursuant to
326Section 12, "Service Requirement for Voluntary Retirement", the
327monthly pension shall be seventy-five percent (75%) of the
328pension that the member was entitled to receive.
329     (6)  Effective for any pension paid a surviving spouse
330which started on or after January 1, 2008, any pension being
331paid under the terms and provisions of this act to any surviving
332spouse shall not cease upon the surviving spouse's remarriage.
333The surviving spouse of such deceased member killed in the line
334of duty whose benefits terminated because of remarriage shall
335have the benefit reinstated as of July 1, 1994, at an amount
336that would have been payable had such benefit not been
337terminated. No pension shall be paid under the terms and
338provisions of this section to any surviving spouse unless the
339surviving spouse was the lawful spouse of the deceased member of
340the said fire department, at the time the member was placed on
341pension or entered DROP under the terms and provisions of this
342act. The pension provided for issue of the deceased member under
343the age of eighteen (18) years shall not cease by virtue of the
344remarriage of their surviving mother or father, but it shall
345continue until the occurrence of one or more of the events
346mentioned in Section 22 hereof.
347     (7)  If the member was eligible for cost-of-living
348increases pursuant to Section 19, then those eligible for
349benefits payable upon the death of the member shall also be
350eligible for cost-of-living increases in the same
351percentage and at the same time that the member would have
352been entitled to receive the Section 19 cost-of-living
353increases.
354     Section 21.  Deferred Retirement Option Program Plan.
355     (1)  Deferred Retirement Option Program Plan--The Deferred
356Retirement Option Program Plan, hereinafter referred to as the
357"DROP," allows any member who has elected to participate in the
358DROP, hereinafter referred to as a "DROP participant," to
359receive a lump-sum payment, or other payment, in addition to a
360monthly pension, upon termination of employment. No benefits
361shall be paid under this section unless the DROP participant has
362terminated employment.
363     (2)  DROP Eligibility--Any member may elect to participate
364in the DROP following the date upon which the member completes
36520 years of active service as a firefighter with the City of
366Orlando and is eligible for a service retirement pension. A
367member may participate in the DROP only once.
368     (3)  DROP Participation--
369     (a)  An eligible member may participate in the Forward Drop
370for a period not to exceed a maximum of 60 months or, in the
371alternative, may participate in the Back DROP for a period not
372to exceed 60 36 months. Notwithstanding, DROP participation may
373not continue beyond the date when the member's combined years of
374credited service and time in the DROP equals 360 months.
375     (b)  A member may apply to participate in the DROP by
376submitting an application to the Board of Trustees, which shall
377include the following:
378     1.  A written election to participate in the DROP. Once
379submitted to the Board of Trustees, this election will be
380irrevocable.
381     2.  Selection of the DROP participation and termination
382dates that satisfy the limitation stated in subsection (2) and
383paragraph (a). Such termination date shall be in a binding
384letter of resignation, establishing a deferred termination date.
385     3.  A properly completed DROP application for a service
386retirement pension.
387     4.  A properly completed designation of named
388beneficiaries in the event the member dies while participating
389in the DROP.
390     5.  Any other information as may be required by the Board
391of Trustees.
392     (c)  The DROP participant shall be a retiree under the
393provisions of the pension plan. However, participation in the
394DROP does not alter the DROP participant's employment status,
395nor does it constitute a contract or guarantee of continued
396employment.
397     (d)  A DROP participant shall not accrue additional
398credited service under the pension plan after the effective date
399of DROP participation.
400     (4)  Benefits Payable Under the DROP--
401     (a)  Effective with the date of DROP participation, the
402DROP participant's initial monthly service retirement pension,
403including credited service and average monthly salary, shall be
404determined and fixed. Such service retirement pension and
405earnings shall be credited to the DROP participant's DROP
406account no less than monthly. Such earnings shall be credited as
407provided in subsection (7).
408     (b)  The effective date of DROP participation for a
409participant who has elected to receive benefits under the
410pension plan shall be the first day of the month selected by the
411member to begin retirement under the pension plan and
412participation in the DROP.
413     (c)  The service retirement pension and earnings thereon
414shall be credited to the DROP participant's DROP account
415periodically, as pension benefit payments would have otherwise
416been made.
417     (5)  DROP Types--A member eligible for a service retirement
418pension may elect a Forward DROP or a Back DROP, but not both.
419     (a)  Forward DROP--Under a Forward DROP, a member may
420retire, deferring receipt of the service retirement pension
421while continuing employment with the city. In that case, the
422deferred monthly service retirement pension shall be credited to
423the DROP participant's DROP account on behalf of the DROP
424participant, as provided in subsection (4), for the specified
425period of the DROP participation, as provided in subsection (3).
426Upon termination of employment, the DROP participant shall
427receive the balance of his or her DROP account and begin to
428receive the monthly service retirement pension.
429     1.  A DROP participant remains an employee and receives all
430the benefits of being an employee during the DROP participation
431period; provided, however, the DROP participant is not eligible
432to participate in any other city provided pension or long term
433disability plan. A DROP participant shall be subject to
434termination of employment during the DROP participation period
435to the same extent as he or she was prior to participating in
436the DROP.
437     2.  Effective with the start date of a DROP participant's
438Forward DROP participation, a member's contribution and the
439normal cost contribution to the pension fund by the city, on
440behalf of the member, shall cease.
441     3.  Effective with the start date of a DROP participant's
442Forward DROP participation, a member shall not be entitled to
443any change in pension benefits unless specifically provided
444otherwise.
445     (b)  Back DROP--Under a Back DROP, a member may retire with
446a retroactive date of retirement. A member may not select a
447retroactive retirement date earlier than the date upon which the
448member first became eligible for a service retirement pension,
449and in no event shall the retroactive date of retirement be more
450than 60 36 months prior to the date of Back DROP election. The
451monthly service retirement pension shall be determined as of the
452retroactive retirement date. Except for years of credited
453service and average monthly salary, Back DROP benefits shall be
454calculated pursuant to the provisions of the pension plan in
455effect on the date the member separates from employment as a
456firefighter with the City of Orlando and not as of the Back DROP
457participant's retroactive date of retirement. The member shall
458then be credited with an account balance in his or her DROP
459account that is equal to the account balance he or she would
460have had if he or she had timely elected a Forward DROP under
461paragraph (a) on the retroactive retirement date. Upon
462termination of employment, the Back DROP participant shall
463receive or transfer the balance of this DROP account, pursuant
464to subsection (10), and shall begin to receive the monthly
465service retirement pension adjusted to reflect the retroactive
466retirement date.
467     (c)  Eligibility exception--Notwithstanding the provisions
468of subsection 3(a), for 60 days after the effective date of this
469act, a member with more than 324 months of credited service may
470elect the Back DROP option and will not be subject to the
471combined years of credited service and DROP participation
472limitation of 360 months. Said member is subject to the maximum
473Back DROP participation period of 60 36 months. A member with
474more than 324 months of credited service as of the effective
475date of DROP who does not elect to participate in the DROP, as
476set forth herein, during this one-time window period shall
477forfeit the right to deviate from the conditions for
478participation in the DROP set forth in subsection (3).
479     (6)  DROP Accounts--Individual DROP accounts shall be
480established to account for each DROP participant's accrued DROP
481benefits, but there shall be no requirement that funds be
482segregated for any DROP participant. In the case of a member who
483selects the Back DROP option, the amount of that member's
484contributions made during the Back DROP period shall not be
485refunded or credited to the member.
486     (7)  DROP Benefits Earnings and Reporting--
487     (a)  A DROP participant's DROP account shall accrue
488earnings at 8% (eight percent) simple interest compounded
489annually, unless the parties otherwise agree.
490     (b)  A DROP account shall be adjusted to reflect earnings
491until such time as the DROP account is distributed in full to
492the DROP participant or his or her beneficiaries.
493     (c)  The Board of Trustees shall report to each DROP
494participant at least annually accrued DROP benefits in the
495participant's DROP account.
496     (8)  Cost-of-Living Increase--A DROP participant will not
497be eligible to participate in cost-of-living increases during
498the DROP period. Cost-of-living increases will be made pursuant
499to section 19, starting 3 years after the DROP participant's
500termination of employment.
501     (9)  Benefits Payable upon Termination of DROP--Upon the
502DROP participant's termination of employment, for any reason,
503whether by resignation, discharge, disability, or death, the
504monthly service retirement pension will be distributed according
505to the provisions of this plan and the balance of the DROP
506account shall be distributed to the DROP participant or, if
507deceased, the DROP participant's beneficiaries, as provided
508herein.
509     (10)  Payment Conditions and Options--Upon the DROP
510participant's termination of employment, for any reason, whether
511by resignation, discharge, disability, or death, the Board of
512Trustees shall distribute the balance of the DROP participant's
513DROP account, subject to the following provisions:
514     (a)  The Board of Trustees shall receive verification from
515the city that such DROP participant has terminated employment.
516     (b)  Following the termination of employment, the DROP
517participant or, if deceased, such DROP participant's
518beneficiaries shall elect on forms provided by the Board of
519Trustees to receive payment of the balance of the DROP account
520in accordance with one of the options listed below. For a DROP
521participant or beneficiaries who fail to elect a method of
522payment within 60 days of termination of employment, the Board
523of Trustees shall pay the balance of the DROP account in one
524lump sum as provided in subparagraph 1.
525     1.  Lump sum--The balance of the DROP account, less taxes
526remitted to the Internal Revenue Service, if any, shall be paid
527to the DROP participant or beneficiaries.
528     2.  Direct rollover--The balance of the DROP account shall
529be paid directly to the custodian of an eligible retirement plan
530pursuant to the then-applicable provisions as defined in §
531402(c)(8)(B) of the Internal Revenue Code. However, in the case
532of an eligible rollover distribution to the widow or widower as
533a beneficiary, an eligible retirement plan is an individual
534retirement account or an individual retirement annuity as
535described in § 402(c)(9) of the Internal Revenue Code.
536     3.  Partial lump sum--A portion of the balance of the DROP
537account shall be paid to the DROP participant or beneficiaries,
538less taxes remitted to the Internal Revenue Service, if any, and
539the remaining balance of the DROP account shall be transferred
540directly to the custodian of an eligible retirement plan
541pursuant to the then-applicable provisions as defined in §
542402(c)(8)(B) of the Internal Revenue Code. However, in the case
543of an eligible rollover distribution to the widow or widower as
544a beneficiary, an eligible retirement plan is an individual
545retirement account or an individual retirement annuity as
546described in § 402(c)(9) of the Internal Revenue Code. The
547proportions shall be specified by the DROP participant or
548beneficiaries.
549     4.  Other methods--The balance of the DROP account shall be
550paid by a method that is in compliance with the Internal Revenue
551Code and as adopted by the Board of Trustees.
552     (c)  The form of distribution payment selected by the DROP
553participant or beneficiaries complies with the minimum
554distribution requirements of the Internal Revenue Code.
555     (d)  Distributions shall comply with the then-applicable
556requirements of the Internal Revenue Code.
557     (11)  Disability--A DROP participant is not eligible to
558apply for a disability pension under this pension plan.
559     (12)  Death of a DROP Participant--
560     (a)  Upon the death of a DROP participant, the named DROP
561beneficiaries shall be entitled to apply for and receive the
562balance of the DROP participant's DROP account as provided in
563subsections (9) and (10). DROP payments to a beneficiary shall
564be in addition to any other retirement benefits payable to the
565beneficiary.
566     (b)  The monthly service retirement pension accrued to the
567DROP account during the month of the DROP participant's death
568shall be the final monthly service retirement pension benefit
569credited for such DROP participant.
570     (c)  Eligibility to participate in the DROP terminates upon
571the death of the DROP participant. If the DROP participant dies
572on or after the effective date of enrollment in the DROP, but
573prior to the first monthly service retirement pension benefit
574being credited to the DROP, pension plan benefits shall be paid
575in accordance with applicable provisions of this pension plan.
576     (d)  A DROP participant's beneficiaries shall not be
577eligible to receive survivor benefits as provided in sections 8
578and 10.
579     (13)  A DROP participant shall not be deemed to have been
580reemployed after retirement as that term is used elsewhere in
581the plan.
582     (14)  Any actuarially-determined additional cost resulting
583from the benefits in this section shall be borne by the members
584of the pension plan.
585     Section 27.  Tax Qualification, and Statutory Minimums, and
586SHARE Program.
587     (a)  The legislative body of the City of Orlando is
588authorized to amend the pension plan to the limited extent
589necessary to obtain and maintain tax qualification of the plan
590under the Internal Revenue Code and to comply with mandatory and
591optional provisions of the Internal Revenue Code applicable to
592governmental pension plans for firefighters, but must obtain
593prior agreement of the members and their collective bargaining
594agent, if any, should such required amendments change any plan
595benefits.
596     (b)  The legislative body of the City of Orlando is
597authorized to amend the pension plan to the limited extent
598necessary to comply with the minimum standards and benefits
599levels required by Chapter 175, Florida Statutes, in order to
600allow the plan to receive funds from the Police and
601Firefighters' Premium Tax Trust Fund, but must obtain prior
602agreement of the members and their collective bargaining agent,
603if any, should such required amendments change any plan
604benefits.
605     (c)  The legislative body of the City of Orlando is
606authorized to amend the pension plan to the limited extent
607necessary to create a SHARE program or plan to provide for extra
608benefits as required by section 175.351(1), Florida Statutes,
609funded by additional premium tax revenues, but must obtain prior
610agreement of the collective bargaining agent of the members.
611     Section 2.  Unless otherwise specified, this act shall not
612entitle a member or beneficiary of a firefighter who separated
613from employment as a firefighter or entered Forward DROP,
614whichever came first, prior to July 1, 2009, to any additional
615benefits to those in effect at the time of the firefighter's
616separation from employment as a firefighter or entry into
617Forward DROP, whichever came first, or change in the calculation
618of normal retirement benefit. This section shall take effect
619July 1, 2009.
620     Section 3.  This act is only an enabling act and is
621contingent upon contractual agreement through the collective
622bargaining process between the City of Orlando and the
623respective certified bargaining agent.
624     Section 4.  Except as otherwise provided in this act, this
625act shall take effect upon becoming a law and section 3 shall be
626effective retroactive to January 1, 2009.


CODING: Words stricken are deletions; words underlined are additions.