§ 13-11. Optional forms of benefits payable and required minimum distributions.

(a)

Each member entitled to a normal, early, delayed or disability retirement benefit shall have the right at any time prior to the date on which benefit payments begin to elect to have the benefit payable under any one of the options hereinafter set forth in lieu of the benefits otherwise provided herein, and to revoke any such elections and make a new election at any time prior to the actual beginning of payments. The value of optional benefits shall be actuarially equivalent to the value of benefits otherwise payable, and the present value of payments to the retiring member must be at least equal to fifty (50) per cent of the total present value of payments to the retiring member and his beneficiary. The member shall make such an election by written request to the board, such request being retained in the board's files. In the absence of such election, retirement benefits shall automatically be paid in the form of a ten (10) years certain and life thereafter annuity (as described below) and the amount shall be calculated to be actuarially equivalent to the value of the benefit payable in the normal form.

(1)

Option 1—Life Annuity. This is the normal form of benefit. The monthly benefit continues during the retiree's life and ceases upon his death.

(2)

Option 2—10 Years Certain and Life Thereafter. The member may elect to receive a reduced benefit for life with one hundred twenty (120) monthly payments guaranteed. If, after payments commence, the member dies before one hundred twenty (120) monthly payments are made, payments shall then be continued to his designated beneficiary until the balance of the one hundred twenty (120) payments have been made.

(3)

Option 3—Joint and Last Survivor Option. The member may elect to receive a reduced benefit during his lifetime and may have such benefit (or a designated fraction thereof: one hundred (100) per cent, sixty-six and two-thirds (66 2/3 ) per cent or fifty (50) per cent) continued after his death to and during the lifetime of his spouse or a relative other than his spouse as referenced in F.S. Ch. 185.161(1)(a)2 as may be amended from time to time. In addition, the member may optionally add a "pop-up feature" to such joint and survivor option. If the member elects to add a "pop-up feature" to his joint and survivor option, then, upon the death of his joint annuitant, the amount of his monthly payment will be increased to the amount of his monthly life annuity under Option 1 and such increased amount will be payable as of the first day of each month after the death of his joint annuitant for the remainder of his lifetime. A member electing to add the "pop-up feature" to his joint and survivor option will have his monthly benefit as otherwise determined under this Option 3 reduced actuarially to take into account the addition of the "pop-up feature."

(4)

Option 4—Joint and Last Survivor Option. The member may elect to receive a reduced benefit as long as both he and his joint annuitant are alive such that, upon the death of either the member or the joint annuitant, such benefit (or a designated fraction thereof: one hundred (100) per cent, seventy-five (75) per cent, sixty-six and two-thirds (66 2/3 ) per cent, or fifty (50) per cent) be continued to the surviving party for the remainder of his or her lifetime. The member may name as his joint annuitant his spouse or a relative other than his spouse as referenced in F.S. § 185.161(1)(a)2. The election of either Option 3 or Option 4 shall be null and void if the designated beneficiary dies before the member's benefit payments commence. If a member has elected an option with a joint pensioner or beneficiary and his retirement income benefits have commenced and the member thereafter changes his designated joint pensioner or beneficiary, then the amount of the retirement income payable to the member upon the designation of a new joint pensioner shall be actuarially redetermined taking into account the ages and sex of the former joint pensioner, the new joint pensioner, and the member. The member must pay the full cost of determining the equivalent actuarial value of the new benefit payable.

(5)

Option 5—Other. In lieu of the other optional forms enumerated in this section, benefits may be paid in any form approved by the board so long as actuarial equivalence with the benefits otherwise payable is maintained. An interest only option or an option providing guaranteed payments over a period in excess of twenty (20) years or beyond age eighty-five (85) may not be elected. The board, in its sole discretion, may make a lump sum payment of any monthly payment with a present value not exceeding one thousand seven hundred fifty dollars ($1,750.00).

(b)

Required minimum distributions. Notwithstanding anything herein to the contrary, a member's benefits shall commence no later than April 1 of the calendar year following the later of (i) the calendar year in which he or she attains age seventy and one-half (70½) or (ii) the calendar year in which he or she retires. All distributions from the plan (including the DROP) shall conform to the regulations issued under IRC Section 401(a)(9), including the incidental death benefit provision of IRC Section 401(a)(9)(G). Further, such regulations shall override any plan or DROP provision that is inconsistent with IRC Section 401(a)(9). Notwithstanding any other provision of this plan to the contrary, a form of retirement income payable from this plan shall satisfy the following conditions:

(1)

If the retirement income is payable before the member's death:

a.

It shall either be distributed or commence to the member not later than April 1 of the calendar year following the later of the calendar year in which the member attains age seventy and one-half (70½), or the calendar year in which member retires;

b.

The distribution shall commence not later than the calendar year defined above, and (i) shall be paid over the life of the member or over the lifetimes of the member and spouse, issue or dependent, or (ii) shall be paid over the period extending not beyond the life expectancy of the member and spouse, issue or dependent.

Where a form of retirement income payment has commenced in accordance with the preceding paragraphs and the member dies before his entire interest in the plan has been distributed, the remaining portion of such interest in the plan shall be distributed no less rapidly than under the form of distribution in effect at the time of the member's death.

(2)

If the member's death occurs before the distribution of his interest in the plan has commenced, member's entire interest in the plan shall be distributed within five (5) years of member's death, unless it is to be distributed in accordance with the following rules:

a.

The member's remaining interest in the plan is payable to his spouse, issue or dependent;

b.

The remaining interest is to be distributed over the life of the spouse, issue or dependent or over a period not extending beyond the life expectancy of the spouse, issue or dependent; and

c.

Such distribution begins within one (1) year of the member's death unless the member's spouse is the sole designated beneficiary, in which case the distribution need not begin before the date on which the member would have attained age seventy and one-half (70½) and if the member's spouse dies before the distribution to the spouse begins, this section shall be applied as if the spouse were the member.

(3)

Qualified health insurance premiums. If permitted by the board, a member who is an eligible retired police officer and is receiving benefits under the plan may elect in a written request to the board to have qualified health insurance premium distributions made in accordance with this paragraph (3). Qualified health insurance premium distributions may be excluded from the gross income of the eligible retired police officer under IRC Section 402(l), subject to the annual dollar limitation therein.

(Ord. No. 94-153, § 1, 12-6-94; Ord. No. 2000-120, § 3, 8-15-00; Ord. No. 2007-124, § 5, 12-11-07; Ord. No. 2010-104, § 3 4-20-10; Ord. No. 2017-104, § 2, 5-17-17)