CS/HB 1433

1	A bill to be entitled
2	An act relating to the City of Orlando Firefighter Pension
3	Fund, Orange County; amending chapter 23444, Laws of
4	Florida, 1945, as amended; providing a member with 20
5	years or more of service who is involuntarily determined
6	to be permanently and totally disabled not in the line of
7	duty the right to elect a normal service retirement under
8	certain conditions; providing for a change in the accrual
9	rate for normal retirement benefit; providing for a change
10	of the accrual rate for line of duty death benefits if
11	member has completed more than 23.53 years of service;
12	changing the Back Deferred Retirement Option Program
13	(DROP) from 36 months to 60 months; revising provisions
14	relating to DROP accounts; providing that distributions
15	comply with the Internal Revenue Code; providing for
16	changes necessary to maintain tax qualification;
17	authorizing the legislative body of the City of Orlando to
18	adjust the pension plan to comply with the Internal
19	Revenue Code and to create a SHARE program or plan to
20	provide for certain extra benefits; providing that benefit
21	changes are not retroactive; specifying this act does not
22	provide additional benefits to certain members and
23	beneficiaries; providing effective dates.
24
25	Be It Enacted by the Legislature of the State of Florida:
26
27	Section 1.  Effective July 1, 2009, sections 7, 12,
28	14, 21, and 27 of chapter 23444, Laws of Florida, 1945, as
29	amended, are amended to read:
30	Section 7.  Permanent Disability Pension; Not in Line
31	of Duty. Each and every active member of the department who
32	shall become permanently and totally disabled, if said
33	disability was not directly caused by and attributable to
34	the performance of duty as a member of the fire department
35	and was not caused by the member's own imprudence, upon
36	establishing to the satisfaction of said board that the
37	member is so permanently and totally disabled, shall be
38	entitled to a monthly pension as follows: A member with
39	less than 10 full years of credited service at time of
40	impairment shall be entitled to receive an amount equal to
41	3 percent of the member's average monthly salary for each
42	year of said credited service, and a member with 10 full
43	years or more of credited service at time of impairment
44	shall be entitled to 4 percent of the member's average
45	monthly salary for each year of said credited service.
46	However, the monthly pension shall not exceed 60 percent of
47	the member's average monthly salary as determined herein;
48	provided, however, that the monthly pension for a member
49	with more than twenty (20) full years of credited service
50	at time of impairment may exceed sixty (60) percent and
51	shall be sixty (60) percent plus four (4) per cent per year
52	for each year of credited service in excess of twenty (20),
53	based on such years of credited service, but may not exceed
54	eighty (80) percent, unless the member has completed 40
55	years of credited service in which case the member shall
56	receive an additional 2 percent per year for each year in
57	excess of 40 years of credited service. Provided further, a
58	member with 20 years or more of credited service who is
59	determined by the board of trustees to be permanently and
60	totally disabled not in the line of duty, but without
61	application for not in the line of duty disability
62	benefits, may within thirty (30) days of such determination
63	elect in writing to receive the normal retirement benefit
64	that the member would be entitled to receive based on years
65	of credited service. Provided, however, the total monthly
66	benefit shall not exceed 100 percent of the member's
67	average monthly salary. The phrase "permanently and totally
68	disabled" shall be construed to mean and include the loss
69	of one or more limbs, loss of sight in one or both eyes,
70	loss of hearing in one or both ears and any other condition
71	which renders the member unfit to perform the required
72	duties of the member's rank held at the time of impairment.
73	The average monthly salary shall be determined by computing
74	the member's average monthly salary for the member's last 3
75	years of credited service or for the member's total
76	credited service if less than 3 years, or by computing the
77	member's average monthly salary for the five best years of
78	the last ten years of credited service, whichever amount is
79	greater. Upon the death of the member on said disability
80	pension, benefits shall be paid as follows:
81	(1)  If a member has not elected and started receipt of the
82	Section 34(1)(a) life with ten (10) years certain form of
83	payment, or the Section 34(1)(b) life only form of payment, or
84	the Section 34(1)(c) joint pensioner form of payment, benefits
85	shall be paid pursuant to Section 14, "Benefits Payable Upon
86	Death of Member", to the surviving spouse and issues under the
87	age of eighteen (18), or dependent parents, and Section 35(3),
88	"10 Year Certain Guarantee", if applicable.
89	(2)  If a member has elected and started receipt of the
90	Section 34(1)(a) life with ten (10) years certain form of
91	payment and the member has not received 120 monthly payments,
92	then benefits otherwise payable to the member shall be paid
93	pursuant to Section 32, "Beneficiaries", for the remainder of
94	the 120 monthly payments beginning on the first day of the month
95	immediately following the member's death regardless of the age
96	of the deceased member. If the firefighter makes this election,
97	no benefits shall be paid pursuant to Section 14(5)(b) or
98	Section 14(5)(d) to the surviving spouse, issue in being under
99	the age of eighteen (18), or dependent parents. Provided
100	however, the firefighter may designate as beneficiaries the
101	surviving spouse, issue in being under the age of eighteen (18),
102	or dependent parents to receive the remainder of the 120 monthly
103	payments.
104	(3)  If a member has elected and started receipt of the
105	Section 34(1)(b) life only form of payment, no further payments
106	shall be made upon the death of the member.
107	(4)  If a member has elected and started receipt of the
108	Section 34(1)(c) joint pensioner form of payment, benefits shall
109	be paid as provided therein.
110
111	Notwithstanding anything that may be to the contrary in
112	this act, at age 47 a member then receiving benefits under
113	this section may make the election provided in section
114	12(1) or section 12(2) as the case may be and section 18,
115	all of this act (Laws of Fla. ch. 23444(1945), as amended)
116	in the manner therein specified, provided he is qualified
117	by length of service prior to said disability and provided
118	he makes the election within the 30 day period after
119	reaching age 47. If the election is exercised in favor of
120	salary deduction return, the return shall be minus
121	disability payments paid hereunder. If the election is
122	exercised, all of the member's rights and the rights of the
123	surviving spouse and issue and dependent parents under
124	Section 14 shall cease.
125	Section 12.  Service Requirement for Voluntary Retirement.
126	(1)  Normal Retirement Date.
127	A member's normal retirement date shall be the first day of
128	the month coincident with or next following the earlier of the
129	completion of twenty (20) years of credited service regardless
130	of age, or attainment of age forty-seven (47) and the completion
131	of ten (10) years of credited service. Any member may retire on
132	the first day of any month after the member's normal retirement
133	date, and each member shall become 100% vested in his accrued
134	benefit on the member's normal retirement date. Normal
135	retirement is retirement from employment as a firefighter with
136	the City of Orlando on or after the normal retirement date. Any
137	member of the Fire Department who has more than 10 years of
138	credited service but less than 20 years of credited service and
139	who is discharged or voluntarily separates from service in the
140	department thereafter but before attaining age forty-seven (47),
141	may make an election to receive a monthly pension beginning at
142	age 47.
143	(2)  Normal Retirement Benefit.
144	(a)  A member of the Fire Department who has more than 10
145	or more years of credited service but less than 20 years of
146	credited service shall be entitled to an amount equal to the
147	number of the member's years of credited service multiplied by
148	2.0% multiplied by the member's average monthly salary.
149	(b)  Any member of the Fire Department who has 20 years or
150	more of credited service but less than 42.5 40 years of credited
151	service shall be entitled to a monthly pension of 68% 60% of the
152	member's average monthly salary plus 3.4% 4% for each year of
153	credited service in excess of 20 years of credited service but
154	not to exceed 85% 80%.
155	(c)  Any member of the Fire Department who has completed
156	42.5 40 years of credited service shall receive in addition to
157	the amount specified in subparagraph (b) an additional 2% per
158	year of credited service for each year in excess of 42.5 40
159	years of service; provided, however, the total monthly benefit
160	shall not exceed 100% of the average monthly salary used in
161	calculating the member's pension benefit.
162	(3)  Average Monthly Salary shall be determined by
163	computing the average monthly salary of the member's last three
164	(3) years of credited service, or by computing the member's
165	average monthly salary for the five (5) best years of the last
166	ten (10) years of credited service, whichever amount is greater.
167	(4)  The additional actuarial cost of providing benefits to
168	members who retire after completing 20 years of credited service
169	but before attaining age 47 shall be borne by the members.
170	(5)  If the member should die after separation or discharge
171	before timely electing the pension form of payment or after the
172	election but before receipt of the pension, no benefit will be
173	paid under a Section 34(1)(b) life only option or a Section
174	34(1)(c) joint pensioner option, and benefits shall be paid
175	pursuant to Section 14, "Benefits Payable Upon Death of Member",
176	with the Section 35(2) "10 years certain Guarantee", unless the
177	member had elected the Section 34(1)(a) life with ten (10) years
178	certain form of payment.
179	(6)  Upon the death of a member who had started receipt of
180	a Section 12 pension including a pension credited to the
181	member's DROP account, benefits shall be paid as follows:
182	(a)  If a member has not elected the Section 34(1)(a) life
183	with ten (10) years certain form of payment, or the Section
184	34(1)(b) life only form of payment, or the Section 34(1)(c)
185	joint pensioner form of payment, benefits shall be paid pursuant
186	to Section 14 to the surviving spouse and issues under the age
187	of eighteen (18), or dependent parents, with Section 35(3), "10
188	Year Certain Guarantee", if applicable.
189	(b)  If a member has elected the Section 34(1)(a) life with
190	ten (10) years certain form of payment and the member has not
191	received 120 monthly payments, then benefits otherwise payable
192	to the member shall be paid pursuant to Section 32,
193	"Beneficiaries", for the remainder of the 120 monthly payments
194	beginning on the first day of the month immediately following
195	the member's death regardless of the age of the deceased member.
196	If the firefighter makes this election, no benefits shall be
197	paid pursuant to Section 14(5)(b) or Section 14(5)(d) to the
198	surviving spouse, issue in being under the age of eighteen (18),
199	or dependent parents. Provided however, the firefighter may
200	designate as beneficiaries the surviving spouse, issue in being
201	under the age of eighteen (18), or dependent parents to receive
202	the remainder of the 120 monthly payments.
203	(c)  If a member has elected the Section 34(1)(b) life only
204	form of payment, no further payments shall be made upon the
205	death of the member. If a member has elected the Section
206	34(1)(c) joint pensioner form of payment, benefits shall be paid
207	as provided therein.
208	Section 14.  Benefits Payable Upon Death of Member.
209	(1)  Unless the member has elected a life with 10 year
210	certain form of payment pursuant to Section 34(1)(a); or has
211	elected and started receipt of or started DROP account accrual
212	of a life only form of payment pursuant to Section 34(1)(b); or
213	has elected and started receipt of or started DROP account
214	accrual of a joint pensioner form of payment pursuant to Section
215	34(1)(c), upon the death of the member, the amounts stated in
216	subsection (5) shall be paid to the member's surviving spouse,
217	if any, for the remainder of the surviving spouse's natural
218	life, regardless of marital status; provided, however, if the
219	deceased member left surviving issue in being under the age of
220	eighteen (18) who are issue of said decedent and the member's
221	surviving spouse, twenty-five percent (25%) of the aforesaid
222	surviving spouse's pension shall be paid to said surviving
223	spouse for said issue, until said issue become eighteen (18), at
224	which time the full surviving spouse's pension shall be paid to
225	said surviving spouse for the remainder of the surviving
226	spouse's natural lifetime regardless of marital status; and,
227	provided further, if said deceased member died with issue
228	surviving in being under the age of eighteen (18) who are issue
229	of said decedent and not of the surviving spouse, twenty-five
230	(25%) of the aforesaid surviving spouse's pension shall be
231	divided and paid on a per capita basis, to:
232	(a)  the legal guardian or guardians of said issue, or a
233	trustee of a trust of which said issue is a beneficiary, for
234	said issue; until age eighteen (18); and
235	(b)  the surviving spouse, for issue, if any, the surviving
236	spouse and the deceased member may have had who survived the
237	member and were in being and under eighteen (18) years of age at
238	the time of the member's death.
239	(2)  If said decedent leaves no surviving spouse, but does
240	leave issue as aforesaid, the aforesaid full surviving spouse's
241	pension shall be divided and paid on a per capita basis to the
242	legal guardian or guardians of said issue, or a trustee of a
243	trust of which said issue is a beneficiary, for said issue,
244	until age eighteen (18). Notwithstanding anything to the
245	contrary in this section, all payments for any issue shall cease
246	at age eighteen (18) or at death of said issue prior thereto or
247	at the times provided in Section 22 of this act and said
248	cancelled payments for said issue shall not serve to increase
249	the payments to any other issue but shall be paid to said
250	surviving spouse if then alive for the remainder of the
251	surviving spouse's natural lifetime regardless of marital
252	status.
253	(3)  If a deceased member of the said fire department,
254	active or retired, shall leave no surviving spouse and shall not
255	leave a surviving child or children in being and his issue and
256	under the age of eighteen (18) years, but shall leave a
257	surviving parent who is entirely dependent upon said member for
258	support, the dependent parents pro rata shall receive the same
259	pension to which the surviving spouse would have been entitled,
260	unless and until such dependent parent becomes self-supporting
261	or dies. If both dependent parents are receiving pension and one
262	becomes self-supporting or dies, the one hundred percent (100%)
263	of the benefit shall be paid to the other dependent parent.
264	(4)  Notwithstanding anything to the contrary in this
265	section, the fund, board of trustees, comptroller and the city
266	shall not be liable or responsible in any way for identification
267	or verification of the authenticity of surviving spouses,
268	issues, guardians, or trustees, or dependent parents or changes
269	in status thereof; moreover, without limiting the foregoing, to
270	be entitled to be considered for said payments provided herein,
271	proof of identification and authenticity of the surviving
272	spouse, issue, guardians, and trustees, or dependent parents
273	along with sufficient address and status information under
274	Section 22 of this Act, must be presented to the board in
275	writing within thirty (30) days of the death of said member and
276	proof of changes therein presented to the board in writing
277	within thirty (30) days after the change. Without limiting the
278	foregoing sentence, any surviving spouse deeming himself or
279	herself entitled under this section to an increase in pension on
280	account of change in status of issue shall present in writing to
281	said board proof satisfactory to the board of said change within
282	thirty (30) days thereafter. If the board of trustees decides,
283	in its discretion, that proof of any of the aforesaid changes
284	has been satisfactorily shown to it in writing, the change of
285	pension shall be made by said board effective with the next
286	monthly payment due after said showing; provided, however, no
287	change in pension payment or amount thereof shall be
288	retroactive.
289	(5)(a)  If the member qualifies for benefits pursuant to
290	Section 7, "Permanent Disability Pension; Not in Line of Duty",
291	the amount of the monthly pension shall be equal to sixty-five
292	percent (65%) of the pension that the deceased member was
293	entitled to receive based on years of credited service, unless
294	the member had twenty (20) years of credited service at time of
295	retirement on disability in which case the monthly pension shall
296	be equal to seventy-five percent (75%) of the pension that the
297	deceased member was entitled to receive based on years of
298	credited service.
299	(b)  If the member's death qualifies for benefits pursuant
300	to Section 8, "Pension for Death In Line of Duty", the monthly
301	pension shall be seventy-five percent (75%) of eighty percent
302	(80%) of the member's average monthly salary; provided however a
303	member who has completed 23.53 forty (40) years of credited
304	service shall be entitled to an additional 3.4% two percent (2%)
305	over the eighty percent (80%) for each year of credited service
306	in excess of 23.53 forty (40) years of credited service, but not
307	to exceed eighty-five percent (85%) unless the deceased member
308	had completed 42.5 years of credited service in which case the
309	benefit shall be increased by an additional 2% per year for each
310	year in excess of 42.5 years of credited service, but not to
311	exceed one-hundred percent (100%).
312	(c)  If the member qualifies for benefits pursuant to
313	Section 9, "Permanent Disability Pension: In Line of Duty", the
314	monthly pension shall be seventy-five percent (75%) of the
315	pension the deceased member was entitled to receive.
316	(d)  If the member's death qualifies pursuant to Section
317	10, "Pension for Death Not In Line of Duty", the monthly pension
318	shall be sixty-five percent (65%) of the pension that the member
319	was entitled to receive; provided however that if the active
320	member at the time of his or her death shall have reached normal
321	retirement date, the monthly pension shall be equal to seventy-
322	five percent (75%) of the pension the deceased member was
323	entitled to receive based on years of credited service.
324	(e)  If a member is entitled to a pension pursuant to
325	Section 12, "Service Requirement for Voluntary Retirement", the
326	monthly pension shall be seventy-five percent (75%) of the
327	pension that the member was entitled to receive.
328	(6)  Effective for any pension paid a surviving spouse
329	which started on or after January 1, 2008, any pension being
330	paid under the terms and provisions of this act to any surviving
331	spouse shall not cease upon the surviving spouse's remarriage.
332	The surviving spouse of such deceased member killed in the line
333	of duty whose benefits terminated because of remarriage shall
334	have the benefit reinstated as of July 1, 1994, at an amount
335	that would have been payable had such benefit not been
336	terminated. No pension shall be paid under the terms and
337	provisions of this section to any surviving spouse unless the
338	surviving spouse was the lawful spouse of the deceased member of
339	the said fire department, at the time the member was placed on
340	pension or entered DROP under the terms and provisions of this
341	act. The pension provided for issue of the deceased member under
342	the age of eighteen (18) years shall not cease by virtue of the
343	remarriage of their surviving mother or father, but it shall
344	continue until the occurrence of one or more of the events
345	mentioned in Section 22 hereof.
346	(7)  If the member was eligible for cost-of-living
347	increases pursuant to Section 19, then those eligible for
348	benefits payable upon the death of the member shall also be
349	eligible for cost-of-living increases in the same
350	percentage and at the same time that the member would have
351	been entitled to receive the Section 19 cost-of-living
352	increases.
353	Section 21.  Deferred Retirement Option Program Plan.
354	(1)  Deferred Retirement Option Program Plan--The Deferred
355	Retirement Option Program Plan, hereinafter referred to as the
356	"DROP," allows any member who has elected to participate in the
357	DROP, hereinafter referred to as a "DROP participant," to
358	receive a lump-sum payment, or other payment, in addition to a
359	monthly pension, upon termination of employment. No benefits
360	shall be paid under this section unless the DROP participant has
361	terminated employment.
362	(2)  DROP Eligibility--Any member may elect to participate
363	in the DROP following the date upon which the member completes
364	20 years of active service as a firefighter with the City of
365	Orlando and is eligible for a service retirement pension. A
366	member may participate in the DROP only once.
367	(3)  DROP Participation--
368	(a)  An eligible member may participate in the Forward Drop
369	for a period not to exceed a maximum of 60 months or, in the
370	alternative, may participate in the Back DROP for a period not
371	to exceed 60 36 months. Notwithstanding, DROP participation may
372	not continue beyond the date when the member's combined years of
373	credited service and time in the DROP equals 360 months.
374	(b)  A member may apply to participate in the DROP by
375	submitting an application to the Board of Trustees, which shall
376	include the following:
377	1.  A written election to participate in the DROP. Once
378	submitted to the Board of Trustees, this election will be
379	irrevocable.
380	2.  Selection of the DROP participation and termination
381	dates that satisfy the limitation stated in subsection (2) and
382	paragraph (a). Such termination date shall be in a binding
383	letter of resignation, establishing a deferred termination date.
384	3.  A properly completed DROP application for a service
385	retirement pension.
386	4.  A properly completed designation of named
387	beneficiaries in the event the member dies while participating
388	in the DROP.
389	5.  Any other information as may be required by the Board
390	of Trustees.
391	(c)  The DROP participant shall be a retiree under the
392	provisions of the pension plan. However, participation in the
393	DROP does not alter the DROP participant's employment status,
394	nor does it constitute a contract or guarantee of continued
395	employment.
396	(d)  A DROP participant shall not accrue additional
397	credited service under the pension plan after the effective date
398	of DROP participation.
399	(4)  Benefits Payable Under the DROP--
400	(a)  Effective with the date of DROP participation, the
401	DROP participant's initial monthly service retirement pension,
402	including credited service and average monthly salary, shall be
403	determined and fixed. Such service retirement pension and
404	earnings shall be credited to the DROP participant's DROP
405	account no less than monthly. Such earnings shall be credited as
406	provided in subsection (7).
407	(b)  The effective date of DROP participation for a
408	participant who has elected to receive benefits under the
409	pension plan shall be the first day of the month selected by the
410	member to begin retirement under the pension plan and
411	participation in the DROP.
412	(c)  The service retirement pension and earnings thereon
413	shall be credited to the DROP participant's DROP account
414	periodically, as pension benefit payments would have otherwise
415	been made.
416	(5)  DROP Types--A member eligible for a service retirement
417	pension may elect a Forward DROP or a Back DROP, but not both.
418	(a)  Forward DROP--Under a Forward DROP, a member may
419	retire, deferring receipt of the service retirement pension
420	while continuing employment with the city. In that case, the
421	deferred monthly service retirement pension shall be credited to
422	the DROP participant's DROP account on behalf of the DROP
423	participant, as provided in subsection (4), for the specified
424	period of the DROP participation, as provided in subsection (3).
425	Upon termination of employment, the DROP participant shall
426	receive the balance of his or her DROP account and begin to
427	receive the monthly service retirement pension.
428	1.  A DROP participant remains an employee and receives all
429	the benefits of being an employee during the DROP participation
430	period; provided, however, the DROP participant is not eligible
431	to participate in any other city provided pension or long term
432	disability plan. A DROP participant shall be subject to
433	termination of employment during the DROP participation period
434	to the same extent as he or she was prior to participating in
435	the DROP.
436	2.  Effective with the start date of a DROP participant's
437	Forward DROP participation, a member's contribution and the
438	normal cost contribution to the pension fund by the city, on
439	behalf of the member, shall cease.
440	3.  Effective with the start date of a DROP participant's
441	Forward DROP participation, a member shall not be entitled to
442	any change in pension benefits unless specifically provided
443	otherwise.
444	(b)  Back DROP--Under a Back DROP, a member may retire with
445	a retroactive date of retirement. A member may not select a
446	retroactive retirement date earlier than the date upon which the
447	member first became eligible for a service retirement pension,
448	and in no event shall the retroactive date of retirement be more
449	than 60 36 months prior to the date of Back DROP election. The
450	monthly service retirement pension shall be determined as of the
451	retroactive retirement date. Except for years of credited
452	service and average monthly salary, Back DROP benefits shall be
453	calculated pursuant to the provisions of the pension plan in
454	effect on the date the member separates from employment as a
455	firefighter with the City of Orlando and not as of the Back DROP
456	participant's retroactive date of retirement. The member shall
457	then be credited with an account balance in his or her DROP
458	account that is equal to the account balance he or she would
459	have had if he or she had timely elected a Forward DROP under
460	paragraph (a) on the retroactive retirement date. Upon
461	termination of employment, the Back DROP participant shall
462	receive or transfer the balance of this DROP account, pursuant
463	to subsection (10), and shall begin to receive the monthly
464	service retirement pension adjusted to reflect the retroactive
465	retirement date.
466	(c)  Eligibility exception--Notwithstanding the provisions
467	of subsection 3(a), for 60 days after the effective date of this
468	act, a member with more than 324 months of credited service may
469	elect the Back DROP option and will not be subject to the
470	combined years of credited service and DROP participation
471	limitation of 360 months. Said member is subject to the maximum
472	Back DROP participation period of 60 36 months. A member with
473	more than 324 months of credited service as of the effective
474	date of DROP who does not elect to participate in the DROP, as
475	set forth herein, during this one-time window period shall
476	forfeit the right to deviate from the conditions for
477	participation in the DROP set forth in subsection (3).
478	(6)  DROP Accounts--Individual DROP accounts shall be
479	established to account for each DROP participant's accrued DROP
480	benefits, but there shall be no requirement that funds be
481	segregated for any DROP participant. In the case of a member who
482	selects the Back DROP option, the amount of that member's
483	contributions made during the Back DROP period shall not be
484	refunded or credited to the member.
485	(7)  DROP Benefits Earnings and Reporting--
486	(a)  A DROP participant's DROP account shall accrue
487	earnings at 8% (eight percent) simple interest compounded
488	annually, unless the parties otherwise agree.
489	(b)  A DROP account shall be adjusted to reflect earnings
490	until such time as the DROP account is distributed in full to
491	the DROP participant or his or her beneficiaries.
492	(c)  The Board of Trustees shall report to each DROP
493	participant at least annually accrued DROP benefits in the
494	participant's DROP account.
495	(8)  Cost-of-Living Increase--A DROP participant will not
496	be eligible to participate in cost-of-living increases during
497	the DROP period. Cost-of-living increases will be made pursuant
498	to section 19, starting 3 years after the DROP participant's
499	termination of employment.
500	(9)  Benefits Payable upon Termination of DROP--Upon the
501	DROP participant's termination of employment, for any reason,
502	whether by resignation, discharge, disability, or death, the
503	monthly service retirement pension will be distributed according
504	to the provisions of this plan and the balance of the DROP
505	account shall be distributed to the DROP participant or, if
506	deceased, the DROP participant's beneficiaries, as provided
507	herein.
508	(10)  Payment Conditions and Options--Upon the DROP
509	participant's termination of employment, for any reason, whether
510	by resignation, discharge, disability, or death, the Board of
511	Trustees shall distribute the balance of the DROP participant's
512	DROP account, subject to the following provisions:
513	(a)  The Board of Trustees shall receive verification from
514	the city that such DROP participant has terminated employment.
515	(b)  Following the termination of employment, the DROP
516	participant or, if deceased, such DROP participant's
517	beneficiaries shall elect on forms provided by the Board of
518	Trustees to receive payment of the balance of the DROP account
519	in accordance with one of the options listed below. For a DROP
520	participant or beneficiaries who fail to elect a method of
521	payment within 60 days of termination of employment, the Board
522	of Trustees shall pay the balance of the DROP account in one
523	lump sum as provided in subparagraph 1.
524	1.  Lump sum--The balance of the DROP account, less taxes
525	remitted to the Internal Revenue Service, if any, shall be paid
526	to the DROP participant or beneficiaries.
527	2.  Direct rollover--The balance of the DROP account shall
528	be paid directly to the custodian of an eligible retirement plan
529	pursuant to the then-applicable provisions as defined in §
530	402(c)(8)(B) of the Internal Revenue Code. However, in the case
531	of an eligible rollover distribution to the widow or widower as
532	a beneficiary, an eligible retirement plan is an individual
533	retirement account or an individual retirement annuity as
534	described in § 402(c)(9) of the Internal Revenue Code.
535	3.  Partial lump sum--A portion of the balance of the DROP
536	account shall be paid to the DROP participant or beneficiaries,
537	less taxes remitted to the Internal Revenue Service, if any, and
538	the remaining balance of the DROP account shall be transferred
539	directly to the custodian of an eligible retirement plan
540	pursuant to the then-applicable provisions as defined in §
541	402(c)(8)(B) of the Internal Revenue Code. However, in the case
542	of an eligible rollover distribution to the widow or widower as
543	a beneficiary, an eligible retirement plan is an individual
544	retirement account or an individual retirement annuity as
545	described in § 402(c)(9) of the Internal Revenue Code. The
546	proportions shall be specified by the DROP participant or
547	beneficiaries.
548	4.  Other methods--The balance of the DROP account shall be
549	paid by a method that is in compliance with the Internal Revenue
550	Code and as adopted by the Board of Trustees.
551	(c)  The form of distribution payment selected by the DROP
552	participant or beneficiaries complies with the minimum
553	distribution requirements of the Internal Revenue Code.
554	(d)  Distributions shall comply with the then-applicable
555	requirements of the Internal Revenue Code.
556	(11)  Disability--A DROP participant is not eligible to
557	apply for a disability pension under this pension plan.
558	(12)  Death of a DROP Participant--
559	(a)  Upon the death of a DROP participant, the named DROP
560	beneficiaries shall be entitled to apply for and receive the
561	balance of the DROP participant's DROP account as provided in
562	subsections (9) and (10). DROP payments to a beneficiary shall
563	be in addition to any other retirement benefits payable to the
564	beneficiary.
565	(b)  The monthly service retirement pension accrued to the
566	DROP account during the month of the DROP participant's death
567	shall be the final monthly service retirement pension benefit
568	credited for such DROP participant.
569	(c)  Eligibility to participate in the DROP terminates upon
570	the death of the DROP participant. If the DROP participant dies
571	on or after the effective date of enrollment in the DROP, but
572	prior to the first monthly service retirement pension benefit
573	being credited to the DROP, pension plan benefits shall be paid
574	in accordance with applicable provisions of this pension plan.
575	(d)  A DROP participant's beneficiaries shall not be
576	eligible to receive survivor benefits as provided in sections 8
577	and 10.
578	(13)  A DROP participant shall not be deemed to have been
579	reemployed after retirement as that term is used elsewhere in
580	the plan.
581	(14)  Any actuarially-determined additional cost resulting
582	from the benefits in this section shall be borne by the members
583	of the pension plan.
584	Section 27.  Tax Qualification, and Statutory Minimums, and
585	SHARE Program.
586	(a)  The legislative body of the City of Orlando is
587	authorized to amend the pension plan to the limited extent
588	necessary to obtain and maintain tax qualification of the plan
589	under the Internal Revenue Code and to comply with mandatory and
590	optional provisions of the Internal Revenue Code applicable to
591	governmental pension plans for firefighters, but must obtain
592	prior agreement of the members and their collective bargaining
593	agent, if any, should such required amendments change any plan
594	benefits.
595	(b)  The legislative body of the City of Orlando is
596	authorized to amend the pension plan to the limited extent
597	necessary to comply with the minimum standards and benefits
598	levels required by Chapter 175, Florida Statutes, in order to
599	allow the plan to receive funds from the Police and
600	Firefighters' Premium Tax Trust Fund, but must obtain prior
601	agreement of the members and their collective bargaining agent,
602	if any, should such required amendments change any plan
603	benefits.
604	(c)  The legislative body of the City of Orlando is
605	authorized to amend the pension plan to the limited extent
606	necessary to create a SHARE program or plan to provide for extra
607	benefits as required by section 175.351(1), Florida Statutes,
608	funded by additional premium tax revenues, but must obtain prior
609	agreement of the collective bargaining agent of the members.
610	Section 2.  Unless otherwise specified, this act shall not
611	entitle a member or beneficiary of a firefighter who separated
612	from employment as a firefighter or entered Forward DROP,
613	whichever came first, prior to July 1, 2009, to any additional
614	benefits to those in effect at the time of the firefighter's
615	separation from employment as a firefighter or entry into
616	Forward DROP, whichever came first, or change in the calculation
617	of normal retirement benefit. This section shall take effect
618	July 1, 2009.
619	Section 3.  This act is only an enabling act and is
620	contingent upon contractual agreement through the collective
621	bargaining process between the City of Orlando and the
622	respective certified bargaining agent.
623	Section 4.  Except as otherwise expressly provided in this
624	act, this act shall take effect upon becoming a law.

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