§ 12-48. Service retirement benefits.

(a)

Firefighters who become members upon or after the effective date may retire on the first day of the month coincident with or next following the date on which the member has attained the age of fifty-five (55) having completed ten (10) years of credited service, the date on which the member has attained the age of fifty-two (52) having completed twenty (20) years of credited service, or the date on which the member has completed twenty-five (25) years regardless of age. There shall be no mandatory retirement age.

(b)

The monthly retirement benefit shall be an amount equal to three and one-half (3.50) per cent of final monthly compensation multiplied by the number of years of credited service, except for credit received for service prior to the effective date, which shall be computed based on the applicable multiplier as set forth in section 12-47. For any firefighter who retires or enters the DROP after January 1, 2015, the initial maximum monthly normal retirement benefit shall be no more than eighty-seven and one-half per cent (87.5%) of average monthly earnings.

(c)

A service retirement benefit shall be payable on the first day of each month. The benefit shall commence on the first day of the month coincident with or next following the member's actual retirement In the event that the member dies after retirement, but before receiving retirement benefits for a period of 120 months, the remaining benefits shall be paid to the beneficiary designated by the member for the balance of the 120-month period. In the event that no beneficiary has been designated, the member's estate shall be the recipient of the remaining balance of payments.

(d)

Early retirement shall be available to firefighter members on the first day of the month coincident with or next following the attainment of age fifty (50) and the completion of ten (10) years of continuous credited service. Firefighters exercising this option shall have their pension benefits reduced by two (2) per cent for each year below normal retirement.

(e)

A member electing early retirement may receive either a deferred payment or an immediate payment under the following formula:

(1)

A deferred payment shall be equal to the normal retirement benefit and payable at the normal retirement date. This shall mean the date upon which the member attains normal retirement age with ten (10) years of continuous credited service.

(2)

An immediate retirement benefit may commence on the first day of the month coincident with or next following the date of early retirement. The benefit shall be determined for normal retirement and then actuarially reduced for the number of actual years and months at which the starting date of the benefit precedes the normal retirement date. The early retirement reduction is two (2) per cent for each year at which the early retirement date precedes the normal retirement date.

(f)

The payment of the early retirement income shall be subject to the same conditions as normal retirement income.

(g)

In the event a member elects early retirement, the benefit formula in effect on the early retirement date shall be applicable to the member.

(h)

A member entitled to a normal or early service retirement benefit shall have the right at any time prior to the date upon which the first payment is received to elect to have the benefit payable under one (1) of the options provided in this plan. A member shall be permitted to revoke any such election and to elect a new option at any time prior to the receipt of the first payment. Each retirement option shall be the actuarial equivalent of the other retirement options available. Election of the retirement option shall be on a form prescribed by the board.

(1)

Joint and last survivor option. A member may elect to receive a reduced benefit for life and to have the benefit (or a designated fraction of the benefit) continued after the member's death and during the lifetime of a designated survivor. A member may choose a fifty (50) per cent, sixty-six and two-thirds (66 2/3 ) per cent, seventy-five (75) per cent or one hundred (100) per cent joint and last survivor option. A designated survivor may be any natural person, but need not be the spouse of the member. In the event that the designated survivor dies before the member's benefit payments begin, this option shall be canceled automatically and a retirement income shall be payable to the member as if the election had never been made.

(2)

A retirement income of larger monthly amount, payable to the firefighter for his or her lifetime only.

(3)

Other options. The trustees may authorize the payment of the retirement benefit in any form which is the actuarial equivalent of the other forms of retirement provided in this plan.

(4)

Retired firefighter. A retired firefighter may change his or her designation of joint annuitant or beneficiary up to two times as provided in F.S. § 175.333 without the approval of the board of trustees or the current joint annuitant or beneficiary. The retiree is not required to provide proof of the good health of the joint annuitant or beneficiary being removed, and the joint annuitant or beneficiary being removed need not be living. The amount of the retirement income payable to the firefighter upon the designation of a new beneficiary or joint annuitant shall be actuarially redetermined so that it is the actuarial equivalent of the benefit that was being paid. The board reserves the right and authority to develop rules and regulations for the actuarial reduction.

(i)

Deferred retirement option plan.

(1)

A deferred retirement option plan ("DROP") is hereby created.

(2)

A member shall become eligible for participation in the DROP plan on the first day of the month coincident with or next following the attainment of normal retirement eligibility as defined in section 12-48(a).

(3)

At the time of a member's entry into the DROP, the member's credited service, accrued benefit and average monthly earnings shall be calculated as if the member had actually retired from service. There shall be no further member contributions after entry into the DROP. No additional credited service shall be earned after entry into the DROP. Any changes in plan benefits shall not apply to members in the DROP, unless otherwise applicable to retired members of the plan.

(4)

The member shall select the retirement option from the list available in section 12-48(h) of the City Code and shall designate any beneficiary. In the absence of a beneficiary designation or should the designated beneficiary pre-decease the member, the member's estate shall be the contingent beneficiary.

(5)

The maximum period of DROP participation shall be five (5) years.

(6)

An election to participate in the DROP plan shall constitute an irrevocable election to resign from the service of the city not later than sixty (60) months after commencement of DROP participation. Members electing the DROP will be required to submit an irrevocable letter of resignation dated sixty (60) months from the date of election as a requirement for DROP participation. Consistent with the provisions of the Older Workers' Benefits Protection Act, 29 U.S.C. § 626(f), as amended, all DROP participants shall be given forty-five (45) days in which to consider the terms of the DROP agreement and, after election to participate in the DROP, shall have seven (7) days following the execution of such agreement to revoke said agreement.

(7)

Upon entry into the DROP, an amount equal to the member's monthly retirement benefit shall be deposited in an account within the plan designated by the member for investment. Members may direct investment of their DROP accruals to any of the investment options approved by the board of trustees from the investments made available by the vendor selected by the city. DROP balances shall be readjusted to take account of any cost-of-living adjustments available under the plan to retired members.

(8)

There shall be no guaranteed rate of investment return on DROP deposits. Upon deposit of the DROP accruals to the investments designated by the member, neither the city or the retirement fund shall have any obligation to the member concerning investment gains or losses.

(9)

The decision to participate in the DROP is irrevocable.

(10)

Upon entry into the DROP, a member shall no longer be eligible for death or disability benefits under the plan. In the event of a disability or death, the member shall be presumed to have retired on a normal retirement on the day prior to the disability or death. Distribution from the DROP account shall be made to the member, or in the case of the member's death, to the member's designated beneficiary.

(11)

No member may receive a distribution from the DROP until actual separation from service. Distribution may be in a lump sum, periodic payments, an annuity or a combination. A member may also elect to rollover the DROP account to an eligible retirement plan, including an individual retirement account, pursuant to Section 401(a)(31) of the Internal Revenue Code. Distribution must commence not later than provided in Section 401(a)(9) of the Internal Revenue Code. It is the intent of the city that this plan at all times be a qualified plan as determined by Section 401(a) of the Internal Revenue Code.

(12)

During DROP participation, a member shall be considered a retiree with deferred receipt of benefits for all plan purposes. For all other purposes, the member shall be considered an active employee of the city entitled to all rights of employment.

(13)

The board of trustees shall be empowered to promulgate uniform rules for the administration of the DROP, provided the rules are not inconsistent with the provisions of this plan.

(j)

For all members actively employed as a full-time firefighter as of February 15, 2011, the benefit formula as currently calculated in section 12-48, whether for a normal, early, or delayed retirement and as calculated in section 12-50 for a disability retirement, shall be adjusted annually by one (1) per cent, (hereinafter the "cost of living adjustment" or" COLA"), as of the first day of January after five (5) years from commencement of benefits or from the member's Deferred Retirement Option Plan ("DROP") entry date. A one (1) per cent plus a prorated portion of the COLA will be applied on the first January 1st five (5) years subsequent to eligibility.

(Ord. No. 2003-101, § 2(Art. VIII), 3-4-03; Ord. No. 2005-107, § 3, 4-12-05; Ord. No. 2008-122, § 4, 12-16-08; Ord. No. 2008-123, § 2, 1-6-09; Ord. No. 2010-100, § 3, 2-2-10; Ord. No. 2011-111, § 4, 6-21-11; Ord. No. 2011-102, § 3, 2-15-11; Ord. No. 2014-123, § 2, 11-5-14; Ord. No. 2017-120, § 3, 12-6-17)