§ 35.097. RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT.

(A)

Normal Retirement Income.

(1)

Amount of Normal Retirement Income. The amount of retirement income payable to a participant who retires on or after his normal retirement date shall be an amount equal to two and one-half (2.5) percent of final monthly compensation multiplied by credited service, expressed in years and tenths of a year, up to a maximum of thirty (30) years, multiplied by the participant's vested percentage as set forth in Section 35.091.

(2)

Payment of Normal Retirement Income. The monthly retirement income payable in the event of normal retirement will be payable on the first day of each month. The first payment will be made effective on the participant's normal retirement date (or on the first day of the month following actual retirement, if later), and shall be continued thereafter during the participant's lifetime. Upon the participant's death the same monthly benefit shall be continued to his or her spouse for one year, and sixty (60) percent of that amount shall be continued to the spouse thereafter until the earlier of the spouse's death or remarriage. The normal form of benefit for a participant who is not married at the time of retirement is a single life annuity. If a participant who is not married at the time of retirement later marries, the spousal benefit provided in this paragraph shall not apply unless the participant requests an actuarially adjusted benefit. Notwithstanding the foregoing provisions of this paragraph, the normal form of benefit for participants who are employed in a position not included in a bargaining unit on October 5, 2010, and not within ten (10) years of attaining the normal retirement date in effect on that date, shall be a single life annuity. The normal form of benefit provided in the third and fourth sentences of this paragraph shall continue to apply to participants who are employed in positions included in a bargaining unit on October 5, 2010, until such time as changes to the normal form of benefit are implemented through the collective bargaining process.

(B)

Early Retirement and Retirement Income. Early retirement under the plan is retirement from the service of the City prior to the participant's normal retirement date but subsequent to: the attainment of age fifty-five (55) and the completion of fifteen (15) years of credited service; or the completion of twenty (20) years of credited service, regardless of age. Payment of early retirement income will be governed by the following provisions of this Section:

(1)

Early Retirement Date. The early retirement date will be the first day of the month following the date a participant retires from the service of the City under the provisions of this Section prior to his normal retirement date.

(2)

Amount of Early Retirement Income. The monthly amount of early retirement income payable to a participant shall equal the product of "a" and "b" where "a" is the number of years and tenths of a year of credited service at the early retirement date multiplied by two and one-half (2.5) percent of final monthly compensation; and "b" is the applicable actuarial reduction factor to take into account the participant's younger age and the earlier commencement of retirement income payments. The factor to be used in "b" above is equal to one minus five-twelfths of one percent for each month that the early retirement date precedes the normal retirement date.

(3)

Payment of Early Retirement Income. The retirement income payable in the event of early retirement will be payable on the first day of each month. The first payment will be made effective on the participant's early retirement date and shall be continued thereafter during the participant's lifetime. Upon the participant's death the same monthly benefit shall be continued to his or her spouse for one year, and sixty (60) percent of that amount shall be continued to the spouse thereafter until the earlier of the spouse's death or remarriage.

(C)

Disability Retirement and Retirement Income.

(1)

[Disability Retirement.] A participant may retire from the service of the City under the plan if he or she becomes totally and permanently disabled, as defined in subsection (C)(2) of this Section, on or after the effective date of this Section. This type of retirement shall be referred to as disability retirement.

(2)

Total and Permanent Disability. A participant will be considered totally disabled if, in the opinion of the Retirement Committee, the participant is wholly prevented from engaging in any occupation for wage or profit; and a participant will be considered permanently disabled if, in the opinion of the Committee, the participant is likely to remain so disabled continuously and permanently from a cause other than those specified in subsection (C)(3) of this Section.

(3)

Disqualifying Causes of Disability. A participant will not be entitled to receive any disability retirement income if, in the opinion of the Committee, the disability is a result of:

(a)

The participant's excessive or habitual use of drugs, intoxicants, or narcotics;

(b)

Injury or disease sustained by the participant while willfully and illegally participating in fights, riots, civil insurrections, or while committing a felony;

(c)

Injury or disease sustained by the participant while serving in any [of the] armed forces;

(d)

Injury or disease sustained by the participant diagnosed or discovered after the termination of city employment;

(e)

Injury or disease sustained by the participant while working for anyone other than the City, and arising out of such employment; or

(f)

Injury or disease sustained by the participant as a result of an act of war, whether or not the act arises from a formally declared State of war.

(4)

Proof of Disability. The Committee, before approving the payment of any disability retirement income, shall require satisfactory proof, in the form of a certificate from a duly licensed physician selected or approved by the Committee, that the participant has become disabled as provided herein. The Committee may require similar proof of the continued disability of a participant after the commencement of disability retirement income.

(5)

Disability retirement income.

(a)

Monthly income payable.

(1)

Service-Connected Disability. The benefit payable to a participant who retires from the service of the City due to total and permanent disability arising out of and in the course of city employment and occurring prior to October 6, 2010, shall be a monthly retirement income equal to seventy-five (75) percent of the participant's final monthly compensation at the date of disability, subject to offsets for Social Security and workers' compensation benefits in accordance with subsection (C)(5)(a)(4) of this Section. The benefit payable to a participant who retires from the service of the City due to total and permanent disability arising out of and in the course of city employment and occurring on or after October 6, 2010, shall be a monthly retirement income equal to sixty (60) percent of the participant's final monthly compensation at the date of disability, subject to offsets for Social Security and workers' compensation benefits in accordance with subsection (C)(5)(a)(4) of this Section. Notwithstanding the preceding sentence, the first sentence of this paragraph shall continue to apply to participants who are employed in a position included in a bargaining unit on October 5, 2010, until this benefit is changed through the collective bargaining process.

(2)

Nonservice-Connected Disability. The benefit payable to a participant who retires from the service of the City due to total and permanent disability not arising out of and in the course of city employment, after the completion of ten (10) years of credited service, shall be an amount equal to two (2) percent of final monthly compensation at the date of disability, multiplied by the years and tenths of years of credited service, subject to a maximum monthly retirement income of fifty (50) percent of final monthly compensation, and subject to offsets for social security and workers' compensation benefits in accordance with subsection (D)(5)(a)(4) of this Section.

(3)

[Optional Benefit.] If a participant with greater than ten (10) years of credited service is eligible to receive a nonservice disability benefit of less than fifty dollars ($50.00) per month under subsection (C)(5)(a)(2) of this Section, the participant may elect to receive an optional benefit payable commencing according to the provisions of subsection (C)(6) of this Section and subject to subsection (E) of this Section. This optional benefit will be equal to the product of "a" and "b", where "a" is the number of years and tenths of years of credited service at the date of disability, multiplied by two and one-half (2.5) percent of final monthly compensation, and "b" is the applicable actuarial reduction factor to take into account the participant's younger age and the earlier commencement of retirement income payments. If this option is elected, the benefit payable will not be subject to the provisions of subsection (C)(5)(b) of this Section, but will be payable as a normal retirement benefit would be paid pursuant to subsection (A)(2) of this Section, unless an optional form of payment is elected under subsection (E) of this Section, in which case such election will define the period of payment.

4.

[Reductions In reply to: benefits.] The disability retirement income described above shall be reduced by Social Security and workers' compensation wage-loss benefits received by the participant, as follows. The reduction for Social Security benefits shall be in the amount of the primary insurance amount only, not including any family benefit. Any cost-of-living adjustments in the participant's Social Security benefits shall not serve to reduce further the disability retirement income payable from the plan. The reduction for Social Security disability benefits shall terminate upon the retiree's attainment of age 65. Disability retirement income payable from the plan shall be reduced by workers' compensation wage-loss benefits received by the participant to the extent that such benefits, when added to the participant's disability retirement income from the plan (adjusted for Social Security benefits received, if applicable), exceed the participant's final monthly compensation at the date of disability. Any cost of living adjustments in the participant's workers' compensation benefits shall not serve to reduce further the disability retirement income payable from the plan. In the case of a lump sum workers' compensation settlement, the disability retirement income payable from the plan shall be adjusted as follows:

(a)

The amount of the lump sum settlement shall be divided by the participant's remaining life expectancy (in months), as determined using standard actuarial tables approved by the plan actuary;

(b)

If the number obtained in subsection (a), above, when added to the participant's monthly disability retirement income from the plan, exceeds the participant's final monthly compensation on the date of disability, the amount of the excess shall be deducted from the participant's monthly disability retirement income from the plan, for the duration of the participant's remaining life expectancy as determined in subsection (a), above.

(c)

If the number obtained in subsection (a), above, when added to the participant's monthly disability retirement income from the plan does not exceed the participant's final monthly compensation on the date of disability, there shall be no reduction of the participant's disability retirement income from the plan.

(b)

Normal Retirement Income Commencing on the Cessation of Disability Retirement Income. If a participant's monthly disability retirement income from the plan ceases pursuant to subsection (C)(6)(c) of this Section, normal retirement income shall commence in accordance with this paragraph. For the purpose of this subsection, a participant's credited service shall include all periods of credited service as defined in Section 35.089 and Section 35.093 of this subchapter, and all years and tenths of years during which the participant received disability retirement income from the plan. Upon the cessation of disability retirement income pursuant to subsection (C)(6)(c) of this Section, the participant shall begin receiving monthly retirement income computed in the same manner as for normal retirement in accordance with subsection (A)(1) of this Section, based upon the participant's credited service as defined in this paragraph, and projected rate of final monthly compensation (as defined in this paragraph, below). The participant's projected rate of final monthly compensation shall be determined in accordance with Section 35.089(E) of this subchapter, but based on the assumption that the participant's rate of monthly basic compensation at the date of termination of city employment due to disability would have continued without change to the date disability retirement income ceased.

(6)

Payment of Disability Retirement Income. The monthly retirement income payable upon disability retirement will be payable on the first day of each month. The first payment will be made effective on the first day of the month following the date on which the participant's disability has existed for five (5) months, or the date on which the participant submits a written application for disability retirement income, whichever is later. Disability retirement income will continue to be paid in lieu of any other retirement income under the plan, until the earliest of the following occurrences:

(a)

If the participant recovers from disability, the last disability retirement income payment will be the payment due next preceding the date of recovery.

(b)

If the participant dies without recovering from disability, the last payment will be the payment due next preceding the date of death.

(c)

For participants who become disabled at age sixty (60) or less, disability retirement income shall cease upon the date the participant attains age sixty-five (65). For participants who become disabled after age sixty (60), disability retirement income shall cease five (5) years after the commencement of benefits. Upon the cessation of disability retirement income under this subparagraph (c), payment of normal retirement income shall commence in accordance with subparagraph (C)(5)(b) of this Section.

(7)

Recovery from Disability. If the Committee finds that a participant who is receiving disability retirement income is, at any time, no longer disabled as provided herein, the Committee shall direct that the retirement income be discontinued. Recovery from disability as used herein shall mean the ability of the participant to engage in any occupation for wage or profit. However, any participant who recovers from disability and whose disability retirement income is discontinued by the Committee and who, as of the date of termination of City employment due to disability, had completed twenty (20) years of credited service or who had both attained the age of fifty-five (55) years and completed at least fifteen (15) years of credited service shall, if not reemployed by the City, be entitled to early retirement income as provided in subparagraph (B) of this Section, based on the participant's final monthly compensation and credited service as of the date of termination of city employment due to disability and upon the participant's age as of the date of recovery from disability. The amount of early retirement income payable in this circumstance shall be actuarially reduced to take into account the participant's younger age and the earlier commencement of retirement income payments as provided in subparagraph (B) of this Section. Any participant who recovers from disability and whose disability retirement income is discontinued by the Committee and who, as of the date of termination of city employment due to disability had completed at least five (5) years of credited service shall, if not reemployed by the City, be entitled to vested deferred retirement income as provided in subparagraph (D) of this Section.

(8)

Reemployment by the City. If a participant recovers from disability and is reemployed by the City, the participant's city employment will be deemed to have been continuous and credited service under the plan will be granted for the period of disability.

(D)

Benefits Other than on Retirement.

(1)

Benefit on Termination of Service and on Death After Termination of Service:

(a)

If a participant's city employment is terminated after completion of five (5) years of credited service but before the normal retirement date, and the termination of employment is for any reason other than the participant's death, early retirement as described in subparagraph (B) of this Section, or disability retirement as described in subparagraph (C) of this Section, the participant shall, if then living, be entitled to a deferred monthly retirement income commencing on the normal retirement date. The amount of the deferred monthly retirement income shall be computed in the same manner as normal retirement income under subparagraph (B)(2) of this Section, based upon the terminated participant's vested percentage, credited service and final monthly compensation at the date of termination of city employment. A participant who terminates city employment after completion of five (5) years of credited service may alternatively elect, in lieu of any other plan benefits, to withdraw participant contributions in accordance with Section 35.095(A).

(b)

In the event a terminated participant dies prior to the commencement of deferred retirement income and without having received a lump sum benefit in accordance with division (G) of this Section or a withdrawal of participant contributions, the participant's designated beneficiary shall receive the monthly retirement income, payable for ten (10) years certain and life thereafter and effective on the date of the participant's death, which can be provided by the single-sum value of the participant's accrued deferred monthly retirement income as of the date of termination of the participant's employment, accumulated at interest from the date of such termination to the date of the participant's death.

(c)

If a terminated participant who has not received a withdrawal of participant contributions or any other retirement benefit or income from the plan is reemployed by the City in a position eligible for participation in the plan, the participant shall retain the prior credited service, and earn additional credited service as a contributing participant during the period of reemployment, in lieu of the deferred retirement income provided in division (D)(1)(a) of this Section. The monthly retirement income payable to such a participant following the subsequent termination of employment, and commencing on or after the normal retirement date, shall not in any event be less than the amount to which the participant was entitled under subparagraph (D)(1)(a) of this Section prior to reemployment by the City.

(d)

The provisions of subparagraph (E) of this Section relating to optional forms of retirement income are applicable to the benefits provided under subparagraph (B)(1)(a) of this Section.

(e)

Except as provided in subparagraph (A) of this Section with respect to normal retirement, subparagraph (C) of this Section with respect to disability retirement, and subparagraph (D) of this Section with respect to death, a participant whose employment is terminated prior to the completion of five (5) years of credited service shall be entitled only to the return of participant contributions in accordance with Section 35.095(A).

(f)

Except as otherwise provided in subparagraph (D) of this Section and Section 35.093(C), any participant who terminates city employment and is subsequently reemployed by the City in a position eligible for participation in the plan will be treated as a new participant in all respects, with date of participation and credited service determined on the basis of the participant's most recent date of employment.

(2)

Benefit Payable in the Event of Participating Employee's Death on or Before the Normal Retirement Date:

(a)

Death benefit—Service-Connected Death. If a participant's city employment is terminated by reason of death on or before the normal retirement date, and the death arises out of or in the course of city employment, there shall be payable the following:

(1)

To the participant's spouse or other designated beneficiary or beneficiaries, as the case may be, a lump-sum payment of ten thousand dollars ($10,000.00); plus

(2)

To the participant's spouse, until the earlier of his or her death or remarriage, a monthly income equal to sixty 60) percent of the participant's final monthly compensation at the date of death; or to a designated beneficiary or beneficiaries other than the spouse, until death, a monthly income equal to the actuarial equivalent of a lifetime benefit payable to the participant in the amount of sixty (60) percent of the participant's final monthly compensation at the date of death; plus

(3)

For each child of the participant until he or she attains the age of eighteen (18) years, and for each child from age eighteen (18) until age twenty-two (22) who is a full-time student in an accredited school, there shall be payable an additional monthly income equal to seven and one-half (7.5) percent of the participant's final monthly compensation. The maximum monthly income for the participant's spouse and children combined shall not exceed seventy-five (75) percent of the participant's final monthly compensation at the date of death. A nonstudent child's monthly income shall terminate effective the first day of the month next preceding the child's death, marriage, or the attainment of age eighteen (18), whichever occurs first; the monthly income of a child who is a full-time student shall terminate effective the first day of the month next preceding the child's death, marriage, or the attainment of age twenty-two (22), whichever occurs first. Legally adopted children shall be eligible for a monthly income in the same manner as biological children.

Notwithstanding the provisions of subparagraph (2) above, participants who are employed in a position included in a bargaining unit on October 5, 2010, shall, if their employment is terminated by reason of death on or before the normal retirement date, and the death arises out of or in the course of city employment, be entitled to the following benefit payable to the participant's spouse until this benefit is changed through the collective bargaining process: to the participant's spouse, until the earlier of his or her death or remarriage, a monthly income equal to seventy-five (75) percent of the participant's final monthly compensation at the date of death; or to a designated beneficiary or beneficiaries other than the spouse, until death, a monthly income equal to the actuarial equivalent of a lifetime benefit payable to the participant in the amount of seventy-five (75) percent of the participant's final monthly compensation at the date of death.

(b)

Death Benefit—Nonservice-Connected Death. If a participant's city employment is terminated by reason of death on or before the participant's actual retirement date, and benefits are not payable pursuant to Section 35.097(D)(2)(a), there shall be payable the following:

(1)

If the participant has at least one year but less than five (5) years of credited service, a lump-sum payment of five thousand dollars ($5,000.00) to the participant's spouse, or other designated beneficiary or beneficiaries.

(2)

If the participant has five (5) or more years of credited service, there shall be payable:

(a)

A lump-sum payment of ten thousand dollars ($10,000.00) to the spouse or other designated beneficiary or beneficiaries; plus

(b)

To the participant's spouse, until the earlier of his or her death or remarriage, a monthly income equal to sixty-five (65) percent of the participant's normal retirement income which has accrued to the date of death; subject to a minimum of twenty (20) percent of the participant's final monthly compensation at the date of death; or to a designated beneficiary or beneficiaries other than the spouse, until death, a monthly income equal to the actuarial equivalent of a lifetime benefit payable to the participant in the amount of sixty-five (65) percent of the participant's normal retirement income which has accrued to the date of death; plus

(c)

For each child of the participant until he or she attains the age of eighteen (18) years, and for each child from age eighteen (18) until age twenty-two (22) who is a full-time student in an accredited school, there shall be payable an additional monthly income of seven and one-half (7.5) percent of the participant's final monthly compensation. The maximum monthly income for the spouse and children combined shall not exceed fifty (50) percent of the participant's final monthly compensation at the date of death. A nonstudent child's monthly income shall terminate effective the first day of the month next preceding the child's death, marriage, or the attainment of age eighteen (18), whichever occurs first; the monthly income of a child who is a full-time student shall terminate on the first day of the month next preceding the child's death, marriage, or the attainment of age twenty-two (22), whichever occurs first. Legally adopted children shall be eligible for a monthly income in the same manner as biological children.

(c)

The minimum death benefit payable to the designated beneficiary or beneficiaries under subsection (D)(2) of this Section shall be an amount equal to the death benefit that would have been payable under the terms of the superseded plan based on the assumption that the employee had died on the effective date of this Section. In the event more than one beneficiary is designated by the participant, the death benefits provided herein shall be equally apportioned among the beneficiaries.

(E)

Optional Forms of Retirement Income.

(1)

In lieu of the amount and form of retirement income payable in the event of normal retirement, early retirement, or termination of service as specified in subparagraphs (A), (B) and (D)(1) of this Section, a participant or a terminated participant may, upon written request to the Committee submitted prior to the receipt of retirement income or benefits under the plan, and subject to the approval of the Committee, elect to receive a retirement income or benefit commencing on the date specified in subparagraphs (A), (B) and (D)(1) of this Section, whichever is applicable, of equivalent actuarial value payable in accordance with one of the following options:

(a)

Option 1. A retirement income of a modified monthly amount, payable to the participant for life, except that in the event the participant dies before receiving retirement income for a period of ten (10) years, the same monthly benefit will be paid to the beneficiary designated by the participant for the balance of the ten-year period.

(b)

Option 2 . A retirement income of a modified monthly amount payable to the participant during the lifetime of the participant and following the participant's death, one hundred (100) percent, seventy-five (75) percent, sixty-six and two-thirds (66.66) percent or fifty (50) percent of the participant's modified monthly benefit shall be payable to the joint pensioner for life. Election of this option shall be null and void if the designated joint pensioner dies before the participant's retirement, unless the participant designates another joint pensioner in accordance with subsection 35.097(E)(2). Except where a participant's joint pensioner is his/her spouse, the present value of payments to the participant shall not be less than fifty (50) percent of the total present value of the payments to the participant and the participant and the joint pensioner. In addition, the participant may elect to add a "pop-up feature" to such joint and survivor option. If the participant elects to add a "pop-up feature" to the joint and survivor option, then upon the death of his/her joint pensioner, the amount of the participant's monthly payment will be increased to the amount of a straight life annuity and such amount will be payable as of the first day of each month after the death of the joint pensioner for the remainder of the participant's lifetime. The monthly benefit payable to the participant under this Option 2 shall be actuarially reduced to take into account the addition of the pop-up feature.

(c)

Option 3. In lieu of the other optional forms enumerated in this Section, and upon the request of a participant, retirement benefits may be paid in any form approved by the Board so long as actuarial equivalence with the benefit otherwise payable is maintained.

(2)

A participant, upon electing any option under this Section, shall designate the joint pensioner or beneficiary to receive the benefit, if any, payable under the plan in the event of the participant's death, on a form provided by the Committee. The participant may revoke or change the designation of a joint pensioner or beneficiary at any time prior to the commencement of retirement income or benefits, by submitting such change in writing on a form provided by the Committee. A participant may also change the designation of a joint pensioner or beneficiary after the commencement of retirement income or benefits, subject to approval by the Committee, and in accordance with the following:

(a)

The participant must pay the full cost of determining the equivalent actuarial value of the benefit payable.

(b)

The consent of a participant's joint pensioner or beneficiary to any change in such designation shall not be required.

(c)

The amount of retirement income payable to the participant upon the designation of a new joint pensioner shall be actuarially redetermined, taking into account the benefits already received by the participant, and the age and sex of the former joint pensioner, the new joint pensioner and the participant.

(d)

Each designation of a joint pensioner or beneficiary shall be made in writing on a form provided by the Committee.

(e)

In the event that no designated beneficiary survives the participant and the participant did not elect to add a "pop-up feature" in accordance with subsection (1)(b) above, the benefits payable in the event of the participant's death subsequent to retirement shall be paid as provided in Section 35.100(A) of this subchapter.

(3)

Retirement income payments will be made under the option elected in accordance with the provisions of this division and will be subject to the following limitations:

(a)

If a participant dies prior to his retirement under the plan, or if a terminated participant dies prior to the commencement of normal retirement income, no benefit will be payable under the option to any person, but benefits will be payable as provided in subparagraph (D) of this Section.

(b)

If a participant's designated beneficiary or joint pensioner dies before the participant's retirement under the plan, the option elected will be canceled automatically and retirement income in the normal form and amount will be payable to the participant upon retirement as if the election had not been made, unless a new election is made in accordance with the provisions of this Section, or unless a new beneficiary or joint pensioner is designated by the participant prior to retirement.

(c)

If both the participant and designated beneficiary die after the date the participant's retirement income commences under the plan, but before the full actuarial value of benefits under the provisions of subparagraph (E)(1)(a) or (c) has been received, the Committee may, in its discretion, direct that the commuted value of the remaining payments be paid in a lump sum and in accordance with Section 35.100(B).

(F)

Lump-Sum Payment of Small Retirement Income. Notwithstanding any provision of the plan to the contrary, if the monthly retirement income payable to any person entitled to any benefit hereunder is less than fifty dollars ($50.00), the retirement committee may, in the exercise of its discretion, specify that the actuarial equivalent of the retirement income be paid in a lump sum or in monthly installments for a period certain of not more than sixty (60) months; provided, if the actuarial equivalent of the monthly retirement income is greater than one thousand dollars ($1,000.00), payment of the benefit in a lump sum shall be made only upon the written request of a participant or designated beneficiary.

(G)

Forfeiture of pension.

(1)

Any participant who is convicted of the following offenses committed prior to retirement, or whose employment is terminated by reason of his admitted commission, aid or abetment of the following specified offenses, shall forfeit all rights and benefits under this plan, except for the return of his accumulated contributions as of the date of termination. Specified offenses are as follows:

(a)

The committing, aiding or abetting of an embezzlement of public funds;

(b)

The committing, aiding or abetting of any theft by a public officer or employee from employer;

(c)

Bribery in connection with the employment of a public officer or employee;

(d)

Any felony specified in F.S. Ch. 838, except F.S. §§ 838.15 and 838.16;

(e)

The committing of an impeachable offense;

(f)

The committing of any felony by a public officer or employee who, willfully and with intent to defraud the public or the public agency for which the public officer or employee acts or in which he or she is employed of the right to receive the faithful performance of his or her duty as a public officer or employee, realizes or obtains, or attempts to realize or obtain, a profit, gain, or advantage for himself or herself or for some other person through the use or attempted use of the power, rights, privileges, duties, or position of his or her public office or employment position; or

(g)

The committing on or after October 1, 2008, of any felony defined in F.S. § 800.04, against a victim younger than sixteen (16) years of age, or any felony defined in chapter 794 against a victim younger than eighteen (18) years of age, by a public officer or employee through the use or attempted use of power, rights, privileges, duties, or position of his or her public office or employment position.

(2)

"Conviction" shall be defined as an adjudication of guilt by a court of competent jurisdiction; a plea of guilty or nolo contendere; a jury verdict of guilty when adjudication of guilt is withheld and the accused is placed on probation; or a conviction by the Senate of an impeachable offense.

(3)

"Court" shall be defined as any state or federal court of competent jurisdiction which is exercising its jurisdiction to consider a proceeding involving the alleged commission of a specified offense.

(4)

Prior to forfeiture, the board shall hold a hearing on which notice shall be given to the participant whose benefits are being considered for forfeiture. Said participant shall be afforded the right to have an attorney present. No formal rules of evidence shall apply, but the participant shall be afforded a full opportunity to present his case against forfeiture.

(5)

Any participant who has received benefits from the system in excess of his accumulated contributions after such participant's rights were forfeited shall be required to pay back to the fund the amount of the benefits received in excess of his accumulated contributions. The board may implement all legal action necessary to recover such funds.

(H)

Funding of Benefits Through Purchase of Life Insurance Contract or Contracts.

(1)

In lieu of paying benefits from the Trust Fund to a participant or his beneficiary, and upon direction of the Retirement Committee with specific prior authorization by the City, the shall purchase, with funds in the trust, an individual retirement income or retirement annuity contract from an insurance company which, as far as possible, provides benefits equal to (or actuarially equivalent to) those provided in the plan for that participant or beneficiary, whereupon the contract shall thereafter govern the payment of the amount of benefit, if any, represented by that contract which is payable under the plan upon the participant's normal retirement, early retirement, death, or termination of service, and the liability of the Trust Fund and of the plan will cease and terminate with respect to those benefits that are purchased and for which the premiums are duly paid. The individual retirement income or retirement annuity contract may be purchased by the Committee trustee on a single-premium basis or on the basis of annual premiums payable over a period of years, as directed by the Committee and as agreed upon by the insurance company; the individual retirement income or retirement annuity contract may be purchased, as directed by the Committee, at any time on or after the participant's date of retirement to provide the benefits due under the plan to the participant or his beneficiary.

(2)

With specific prior authorization by the City, the Committee may enter into a contract or contracts with one or more life insurance companies for the purchase of retirement annuities, five-year renewable term life insurance, one-year renewable term life insurance or other form of life insurance or other benefits, on an individual or group basis, in a manner and in a form as may be deemed appropriate by the Committee, as provided for in the plan, and further provided the insurance benefit will be no greater than one hundred (100) times the participant's anticipated monthly retirement income commencing at normal retirement date. The amount of the anticipated monthly retirement income commencing at normal retirement date shall be computed as for normal retirement in subparagraph (A)(1) of this Section.

(3)

The participant's projected final monthly compensation at normal retirement date shall be determined in accordance with Section 35.089(E) of this subchapter, and shall be determined as of the participant's normal retirement date, based on the assumption that the participant's rate of monthly compensation as of his date of death had been continued without change to his normal retirement date. Specifically, those retirement annuities and other benefits as may be provided for in the plan may be purchased under one or more deposit administration type group annuity contracts.

(4)

No insurance company which may issue any contract pursuant to this section shall be required to take or permit any action contrary to the provisions of that contract; or be bound to allow any benefit or privilege to any person interested in any contract it has issued which is not provided in the contract; or be deemed to be a party to this plan for any purpose; or be responsible for the validity of this plan; or be required to look into the terms of this plan; or question any act of the Committee hereunder; or be required to see that any action of the trustee is authorized by this plan. Any issuing company shall be fully discharged from any and all liability for any amount paid to the plan; or in accordance with the direction of the Committee; and no issuing company shall be obligated to see to the application of any moneys so paid by it. Any issuing company shall be fully protected in taking or permitting any action on the faith of any instrument executed by the Committee, and shall incur no liability for so doing.

(5)

Upon termination of employment, a participant may receive the retirement income or annuity policies which are being purchased for him at the date of his termination, in lieu of any other benefit which he may be entitled to receive, upon payment to the plan of the difference between the cash value of the policies and the amount that the participant is entitled to receive as a benefit upon termination of his service.

(I)

Technical Provisions Required by the Internal Revenue Code and Treasury Department Regulations.

(1)

Forfeitures. Forfeitures shall not be used to increase the benefits that any employee would otherwise receive under the plan at any time prior to the termination of the plan or the complete discontinuance of contributions to the plan, but shall be anticipated in determining the costs under the plan. Likewise, any dividends under any contract issued in accordance with subsection (H) of this Section shall not be used to increase the benefits that any employee would otherwise receive under the plan.

(2)

Benefits Nonforfeitable if Plan is Terminated or Contributions Permanently Discontinued. Any provisions of the plan to the contrary notwithstanding, in the event that the plan is terminated or contributions to the trust are completely discontinued, the rights of each participant in the plan to benefits accrued to the date of termination or discontinuance, to the extent then funded, shall be nonforfeitable and those benefits shall be determined and distributed as provided in Section 35.109.

(J)

Maximum Pension.

(1)

Basic Limitation. Notwithstanding any other provisions of this plan to the contrary, the participant contributions paid to, and retirement benefits paid from, the plan shall be limited to such extent as may be necessary to conform to the requirements of Code Section 415 for a qualified retirement plan. Subject to the adjustments hereinafter set forth, the maximum amount of annual retirement income payable with respect to a participant under this plan shall not exceed the maximum limitation amount provided by Section 415(b) of the U.S. Internal Revenue Code, as that Section may be amended in the future, adjusted for increases in the cost-of-living pursuant to Section 415(d) of the Internal Revenue Code.

For purposes of applying the above limitation, benefits payable in any form other than a straight life annuity with no ancillary benefits shall be adjusted, as provided by Treasury Regulations, so that such benefits are the actuarial equivalent of a straight life annuity. For purposes of this Section, the following shall not be taken into account:

(a)

Any ancillary benefit which is not directly related to retirement income benefits;

(b)

Survivor benefits payable to a surviving spouse under a qualified joint and survivor annuity to the extent such benefits would not be payable if the participant's benefit were paid in another form;

(c)

Any other benefit not required under Section 415(b)(2) of the Internal Revenue Code and regulations thereunder to be taken into account for purposes of the limitation of Section 415(b)(1) of the Internal Revenue Code.

(2)

Participation in other Defined Benefit Plan. The limitation of this Section with respect to any participant who at any time has been a member in any other defined benefit plan (as defined in Section 414(j) of the Internal Revenue Code) maintained by the City shall apply as if the total benefits payable under all defined benefit plans in which the participant has been a participant were payable from one plan.

(3)

Adjustments in Limitations for Form of Benefit.

(a)

If the form of benefit is other than the annual benefit defined in subsection (1), the benefit shall be adjusted so that it is the equivalent of the annual benefit using factors prescribed in Treasury Regulations. If the form of benefit without regard to any automatic benefit increase feature is not a straight life annuity or a qualified joint and survivor annuity then the preceding sentence is applied by either reducing the Code Section 415(b) limit applicable at the annuity starting date or by adjusting the form of benefit to an actuarially equivalent amount determined using the assumptions specified in 26 CFR 1.415(b)-1 that takes into account the additional benefits under the form of benefit as follows:

1.

Benefit Forms Not Subject to § 417(e)(3): The straight life annuity that is actuarially equivalent to the participant's form of benefit shall be determined under this subsection if the form of a participant's benefit is either a non-decreasing annuity (other than a straight life annuity) payable for a period of not less than the life of the Employee (or in the case of a qualified pre-retirement survivor annuity, the life of the surviving spouse), or an annuity that decreases during the life of the participant merely because of (a) the death of the survivor annuitant (but only if the reduction is not below 50% of the benefit payable before the death of the survivor annuitant), or (b) the cessation or reduction of Social Security supplements or qualified disability payments (as defined in Code Section 401(a)(11). For a benefit paid in a form described in this subsection, the actuarially equivalent straight life annuity is equal to the greater of:

a.

The annual amount of the straight life annuity (if any) payable to the participant under the plan commencing at the same annuity starting date as the participant's form of benefit, or

b.

the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the participant's form of benefit, computed using a five percent (5%) interest rate assumption and the applicable mortality tables described in Code Section 417(e)(3)(B) (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing Code Section 417(e)(3)(B); or

2.

Benefit Forms Subject to § 417(e)(3): If a form of participant's benefit is other than a benefit form described in subsection (3)(a)1, the actuarially equivalent straight life annuity benefit that is the greatest of:

a.

The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using the interest rate and mortality table, or tabular factor, specified in the plan for actuarial experience;

b.

The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable computed using a five and one-half (5.5) percent interest assumption for the applicable statutory interest assumption and (i) for years prior to January 1, 2009 the applicable mortality tables for the distribution under 26 CFR 1.417(e)-1(d)(2) (Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62) and (ii) for years after December 31, 2008 the applicable mortality tables described in Code Section 417(e)(3)(B) (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing Code Section 417(e)(3)(B); or

c.

The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable computed using the applicable interest rate for the distribution under 26 CFR 1.417(e)-1(d)(3) the 30-year Treasury rate prior to January 1, 2007, using the rate in effect for the month prior to retirement and on and after January 1, 2007, using the rate in effect for the first day of the plan year with a one-year stabilization period and (i) for years prior to January 1, 2009, the applicable mortality tables for the distribution under 26 CFR 1.417(e)-1(d)(2) (the mortality table specified in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62) and (ii) for years after December 31, 2008, the applicable mortality tables described in Code Section 417(e)(3)(B) (Notice 200885 or any subsequent Internal Revenue Service guidance implementing Code Section 417(e)(3)(B)), divided by 1.05.

3.

The actuary may adjust the 415(b) limit at that annuity starting date in accordance with paragraphs 1 and 2 above.

(4)

Other Adjustments in Limitations.

(a)

In the event the participant's retirement benefits become payable before age sixty-two (62), the limitation prescribed by subsection (1) of this Section shall be reduced in accordance with regulations issued by the Secretary of the Treasury pursuant to the provisions of Section 415(b) of the Internal Revenue Code so that such limitation (as so reduced) equals an annual benefit (beginning when such retirement income benefit begins) that is equivalent to the maximum annual benefit beginning at age sixty-two (62).

(b)

The reductions provided in the preceding subparagraphs shall not be applicable to disability benefits paid pursuant to Section 35.097(C) preretirement death benefits paid pursuant to Section 35.097(D).

(c)

If the participant's retirement benefit becomes payable after age sixty-five (65), for purposes of determining (1) herein, such benefit shall be adjusted so that it is actuarially made using an assumed interest rate of five (5) percent and shall be made in accordance with the regulations promulgated by the Secretary of the Treasury or his delegate so that such limitation (as so increased) equals an annual benefit (beginning when such retirement income benefit begins) which is equivalent to the maximum annual benefit beginning at age sixty-five (65).

(d)

If the participant's retirement benefit becomes payable after age sixty-five (65), for purposes of determining whether this benefit meets the limitation set forth in Section [(J)](1) herein, such benefit shall be adjusted so that it is actuarially made using an assumed interest rate of five (5) percent and shall be made in accordance with the regulations promulgated by the Secretary of the Treasury or his delegate.

(e)

In the event the participant's benefit is based on at least fifteen (15) years of credited service as a full-time police officer or firefighter, the adjustments provided for in (4)(a) above shall not apply.

(5)

Less than Ten (10) Years of Service. The maximum retirement benefits payable under this Section to any participant who has completed less than ten (10) years of credited service with the City shall be the amount determined under subparagraph (1) of this Section multiplied by a fraction, the numerator of which is the number of the participant's years of credited service and the denominator of which is ten (10). The reduction provided by this section cannot reduce the maximum benefit below ten (10) percent of the limit determined without regard to this subsection. This reduction shall not be applicable to disability benefits paid pursuant to Section 35.097(C) or preretirement death benefits paid pursuant to Section 35.097(D).

(6)

Ten Thousand Dollar ($10,000.00) Limit. Notwithstanding the foregoing, the retirement benefit payable with respect to a participant shall be deemed not to exceed the limitations set forth in this Section of the benefits payable with respect to such participant under this plan and under all other qualified defined benefit pension plans to which the City contributions do not exceed ten thousand dollars ($10,000.00) for the applicable plan year and for any prior plan year and the City has not at any time maintained a qualified defined contribution plan in which the participant participated; provided, however, that if the participant has completed less than ten (10) years of credited service, the limit under this subsection shall be a reduced limit equal to ten thousand dollars ($10,000.00) multiplied by a fraction, the numerator of which is the number of the participant's years of credited service and the denominator of which is ten (10).

(7)

Cost-of-living adjustments. The limitations as stated in subsections (1), (2), (4) and (7) herein shall be adjusted to the time payment of a benefit begins in accordance with any cost-of-living adjustments prescribed by the secretary of the treasury pursuant to Section 415(d) of the Internal Revenue Code. For purposes of applying the limits under Section 415(d) of the Internal Revenue Code (the "Limit"), the following will apply:

(a)

A participant's applicable limit will be applied to the participant's annual benefit in the first limitation year of benefit payments without regard to any automatic cost of living adjustments;

(b)

thereafter, in any subsequent limitation year, a participant's annual benefit, including any automatic cost of living increases, shall be tested under the then applicable benefit limit including any adjustment to the Code Section 415(b)(1)(A) dollar limit under Code Section 415(d), and the regulations thereunder; but

(c)

in no event shall a participant's benefit payable under the plan in any limitation year be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to Code Section 415(d) and the regulations thereunder.

(8)

Service Credit Purchase Limits.

(a)

Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, if a participant makes one or more contributions to purchase permissive service credit under the plan, then the requirements of this section will be treated as met only if:

1.

the requirements of Code Section 415(b) are met, determined by treating the accrued benefit derived from all such contributions as an annual benefit for purposes of Code Section 415(b), or

2.

the requirements of Code Section 415(c) are met, determined by treating all such contributions as annual additions for purposes of Code Section 415(c).

3.

For purposes of applying subparagraph (a)2 the plan will not fail to meet the reduced limit under Code section 415(b)(2)(C) solely by reason of this subparagraph, and for purposes of applying subparagraph (a)2 the plan will not fail to meet the percentage limitation under Section 415(c)(1)(B) of the Code solely by reason of this subparagraph 3.

(b)

For purposes of this subsection the term "permissive service credit" means service credit—

1.

recognized by the plan for purposes of calculating a participant's benefit under the plan.

2.

which such participant has not received under the plan, and

3.

which such participant may receive only by making a voluntary additional contribution, in an amount determined under the plan, which does not exceed the amount necessary to fund the benefit attributable to such service credit.

Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, such term may, if otherwise provided by the plan, include service credit for periods for which there is no performance of service, and, notwithstanding clause (9)(b) may include service credited in order to provide an increased benefit for service credit which a participant is receiving under the plan.

(c)

For purposes of applying the limits in this subsection (9) only and for no other purpose, the definition of compensation where applicable will be compensation actually paid or made available during a limitation year, except as noted below and as permitted by Treasury Regulations located in 26 CFR 1.415(c)-2, or successor regulations. Unless another definition of compensation that is permitted by Treasury Regulations Section 1.415(c)-2, or successor regulation, is specified by the plan, compensation will be defined as wages within the meaning of Code Section 3401(a) and all other payments of compensation to a participant by a City for which the City is required to furnish the participant a written statement under Code Sections 6041 (d), 6051(a)(3) and 6052 and will be determined without regard to any rules under Code Section 3401(a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in Code Section 3401(a)(2).

1.

However, for limitation years beginning after December 31, 1997, compensation will also include amounts that would otherwise be included in compensation but for an election under Code Sections 125(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b). For limitation years beginning after December 31, 2000, compensation will also include any elective amounts that are not includible in the gross income of the participant by reason of Code Section 132(f)(4).

2.

For limitation years beginning on and after January 1, 2007, compensation for the limitation year will also include compensation paid by the later of two and one-half (2½) months after an participant's severance from employment or the end of the limitation year that includes the date of the participant's severance from employment if:

a.

the payment is regular compensation for services during the participant's regular working hours, or compensation for services outside the participant's regular working hours (such as overtime or shift differential), commissions, bonuses or other similar payments, and, absent a severance from employment, the payments would have been paid to the participant had the participant continued in employment with the City; or

b.

the payment is for unused accrued bona fide sick, vacation or other leave that the participant would have been able to use if employment had continued.

3.

Backpay, within the meaning of Treasury Regulations Section 1.415(c)-2(g)(8), shall be treated as compensation for the limitation year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under this definition.

(d)

Notwithstanding any other provision of law to the contrary, the Board may modify a request by a participant to make a contribution to the plan if the amount of the contribution would exceed the limits provided in Code Section 415 by using the following methods:

1.

If the law requires a lump sum payment for the purchase of service credit, the Board may establish a periodic payment deduction plan for the participant to avoid a contribution in excess of the limits under Code Sections 415(c) or 415(n).

2.

If payment pursuant to subparagraph (d)1 will not avoid a contribution in excess of the limits imposed by Code Section 415(c), the Board may either reduce the participant's contribution to an amount within the limits of that section or refuse the participant's contribution

(e)

If the annual additions for any participant for a plan year exceed the limitation under Code Section 415(c), the excess annual addition will be corrected as permitted under the Member Plans Compliance Resolution System (or similar IRS correction program).

(f)

For limitation years beginning on or after January 1, 2009, a participant's compensation for purposes of this subsection shall not exceed the annual limit under Code Section 401(a)(17).

(9)

Additional Limitation on Pension Benefits. Notwithstanding anything herein to the contrary:

(a)

The normal retirement benefit or pension payable to a retiree who becomes a participant of the plan and who has not previously participated in such plan, on or after January 1, 1980, shall not exceed one hundred (100) percent of his average final compensation. However, nothing contained in this Section shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-living increases or adjustments.

(b)

No participant of the plan who is not now a participant of such plan shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the participant is already receiving, or will receive in the future, a retirement benefit or pension from a different employer's retirement plan or system. This restriction does not apply to Social Security benefits or Federal benefits under Chapter 1223, Title 10, U.S. Code.

(c)

Notwithstanding any other provision of this plan to the contrary, the annual benefit to which a participant is entitled under the plan shall not, in any limitation year, be in an amount which would exceed the applicable limitations under Section 415 of the Internal Revenue Code and the regulations issued thereunder. If the benefit payable under the plan would (but for this Section) exceed the limitations of Section 415 of the Code by reason of a benefit payable under another defined benefit plan aggregated with this plan under [Internal Revenue] Code Section 415(f), the benefit under this plan shall be reduced only after all reductions have been made under such other plan. As of January 1 of each calendar year commencing on or after January 1, 2008, the dollar limitation as determined by the Commissioner of the Internal Revenue Service for that calendar year shall become effective as the maximum permissible dollar amount of benefit payable under the plan during the limitation year ending within that calendar year.

(K)

Distribution of Benefits. Notwithstanding any other provision of this plan to the contrary, a form of retirement income payable from this plan after the effective date of this ordinance, shall satisfy the following conditions:

(1)

If any retirement income is payable before the participant's death:

(a)

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

(b)

The distribution shall commence not later than the calendar year defined in subparagraph (A) above and (1) shall be paid over the life of the participant or over the lifetimes of the participant and his spouse, issue or dependent, or (2) shall be paid over the period extending not beyond the life expectancy of the participant and his spouse, issue or dependent.

Where a form of retirement income payment has commenced in accordance with the preceding paragraphs and the participant 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 participant's death.

(2)

If the participant dies before distributions begin, the participant's entire interest will be distributed, or begin to be distributed, no later than as follows:

(a)

If the participant's surviving spouse is the participant's sole designated beneficiary, then distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the participant died, or by December 31 of the calendar year in which the participant would have attained age 70½, if later.

(b)

If the participant's surviving spouse is not the participant's sole designated beneficiary, then, except as provided in the adoption agreement, distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the participant died.

(c)

If there is no designated beneficiary as of September 30 of the year following the year of the participant's death, the participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the participant's death.

(d)

If the participant's surviving spouse is the participant's sole designated beneficiary and the surviving spouse dies after the participant but before distributions to the surviving spouse are required to begin, this section (2), other than subsection (2)(a), will apply as if the surviving spouse were the participant. For purposes of this section, unless subsection (2)(d) applies, distributions are considered to begin on the participant's required beginning date. If subsection (2)(d) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under section (2)(d). If distributions under an annuity meeting the requirements of this article commence to the participant before the participant's required beginning date (or to the participant's surviving spouse before the date distributions are required to begin to the surviving spouse under section (2)(a), the date distributions are considered to begin is the date distributions actually commence.

(L)

Direct Transfers of Eligible Rollover Contributions.

(1)

General. This subsection applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the system to the contrary that would otherwise limit a distributee's election under this subsection, a distributee may elect, at the time and in the manner prescribed by the Board, to have any portion of an eligible rollover paid directly to an eligible retirement plan specified by the distributee in a direct rollover.

(2)

Definitions.

Eligible rollover distribution. Any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Internal Revenue Code; and the portion of any distribution that is not includable in gross income.

Eligible retirement plan. An eligible retirement plan is an individual retirement account described in Section 408(a) of the Internal Revenue Code, an individual retirement annuity described in Section 408(b) of the Internal Revenue Code (other than an endowment contract), and annuity plan described in Section 403(a) of the Internal Revenue Code, qualified trust described in Section 401(a) of the Internal Revenue Code, an eligible deferred compensation plan described in Section 457(b) of the Internal Revenue Code which is maintained by an eligible employer described in Section 457(e)(1)(A) of the Internal Revenue Code, or an annuity contract described in Section 403(b) of the Internal Revenue Code, that accepts the distributee's eligible rollover distribution.

A portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be transferred only to (1) a traditional individual retirement account or annuity described in § 408(a) or (b) of the Code (a traditional IRA) or a Roth individual retirement account or annuity described in § 408A (a Roth IRA); or (2) to a qualified defined contribution, defined benefit, or annuity plan described in § 401(a) or § 403(a) or to an annuity contract described in § 403(b), if such plan or contract provides for separate accounting for amounts so transferred (including interest thereon), including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible.

Distributee. Includes an employee or former employee. In addition, the employee's or former employee's surviving spouse is a distributee with regard to the interest of the spouse.

Direct rollover. A payment by the plan to the eligible retirement plan specified by the distributee.

(3)

Rollovers or Transfers into the Fund. On or after the effective date of Ordinance No. 57-02 [Jan. 7, 2003], the fund will accept participant rollover cash contributions and/or direct cash rollovers of distributions for the purchase of credited service pursuant to Section 35.093(E), as follows: the plan will accept either a direct rollover of an eligible rollover distribution or a participant contribution of an eligible rollover distribution from a qualified plan described in Section 403(a) of the Internal Revenue Code, from an annuity contract described in Section 403(b) of the Internal Revenue Code, or from an eligible plan under Section 457(b) of the Internal Revenue Code, which is maintained by a State, political subdivision of a State, or any agency or instrumentality of a State or political subdivision of a State.

(4)

Direct Rollover to an IRA by Nonspouse Beneficiary. In accordance with Section 829 of the Pension Protection Act of 2006, on and after the effective date of this subsection the plan will allow a designated nonspouse beneficiary to make a direct rollover of a distribution from the plan to an individual retirement account or annuity described in Section 408(a) or (b) of the Internal Revenue Code. Also, in this case, the determination of any required minimum distribution under § 401 (a)(9) that is ineligible for rollover shall be made in accordance with Notice 2007-7, Q&A 17 and 18, 2007-5 I.R.B. 395.

(M)

Early Retirement Incentive.

(1)

Effective October 1, 2002, an early retirement incentive program shall be provided in accordance with this Section. The availability of the early retirement incentive in any plan year shall be determined by the City. The City shall provide all eligible employees with at least thirty (30) days advance notice that the early retirement incentive will be offered. The early retirement incentive program shall be voluntary for all eligible employees.

(2)

Employees who are one hundred (100) percent vested and within two (2) years of their earliest normal retirement date during the period that the early retirement incentive is offered shall be eligible for the early retirement incentive. In the period in which the early retirement incentive is offered, eligible employees shall be given an opportunity to elect the early retirement incentive within sixty (60) days following receipt of notice that the early retirement incentive is being offered. The employee's election shall be made in writing on a form provided by the City, and shall be irrevocable.

(3)

Eligible employees who elect the early retirement incentive shall have their retirement benefit calculated in accordance with Section 35.097(A), based on credited service and final monthly compensation as of the last day of employment. There shall be no actuarial reduction as defined in Section 35.097(B)(2). Employees who elect the early retirement incentive shall immediately retire and terminate City employment.

(4)

Effective September 1, 2007, through September 30, 2007, any eligible employee who elects the early retirement incentive and any employee age fifty-eight (58) or older who elects to terminate City employment and retire on or before September 30, 2007, shall receive up to one additional year of credited service, at no cost to the employee, for the purpose of calculating the employee's normal retirement income; provided, in no event shall any employee's credited service exceed thirty (30) years. Effective August 1, 2008, through September 30, 2008, any eligible employee who elects the early retirement incentive and any employee age fifty-eight (58) or older who elects to terminate City employment and retire on or before September 30, 2008, shall receive up to one additional year of credited service, at no cost to the employee, for the purpose of calculating the employee's normal retirement income; provided, in no event shall any employee's credited service exceed thirty (30) years.

(5)

An employee who elects to receive the early retirement incentive under this subsection cannot also participate in the Deferred Retirement Option Plan under Section 35.110.

(N)

Optional Enhanced Multiplier.

(1)

Notwithstanding any provision of the plan to the contrary, an eligible participant may elect a normal retirement benefit or early retirement benefit equal to three (3) percent of final monthly compensation multiplied by credited service, expressed in years and tenths of a year, up to a maximum of thirty (30) years. Participants electing this enhanced multiplier shall thereafter contribute three and forty-five hundredths (3.45) percent of earnings to the plan in addition to the participant contribution specified in Section 35.095, and shall receive the enhanced multiplier for future periods of credited service only. Such participants may also elect to purchase the enhanced multiplier for some or all periods of continuous service prior to the date of the election, by paying into the plan the full actuarial cost of the enhanced multiplier, plus the full cost of any actuarial or other professional services required. Such payment may be made by cash lump-sum payment or by a direct rollover of an eligible rollover distribution or a participant contribution of an eligible rollover distribution from an individual retirement account described in Section 408(a) of the Internal Revenue Code, an individual retirement annuity described in Section 408(b) of the Internal Revenue Code (other than an endowment contract), an annuity plan described in Section 403(a) of the Internal Revenue Code, a qualified trust described in Section 401(a) of the Internal Revenue Code Section or an annuity contract described in Section 403(b) of the Internal Revenue Code. Alternatively, a participant who also participates in a Section 457(b) plan may purchase additional credited service in an amount sufficient to provide an additional benefit equal to the benefit produced by applying the enhanced multiplier provided in this subsection to some or all periods of continuous service prior to the date of the election, by paying into the plan the full actuarial cost of such additional benefit, plus the full cost of any actuarial or other professional services required; with payment for such alternative purchase made by a direct transfer from the participant's 457(b) account.

(2)

The election to receive the enhanced multiplier under this Section must be made in writing on a form provided by the City. Such election shall be irrevocable. If an eligible participant does not elect the optional enhanced multiplier under this Section, or if an eligible participant elects the enhanced multiplier for only a portion of his total continuous service, then the benefit provided in paragraph (1) shall be used to calculate the benefit for all continuous service to which the enhanced multiplier does not apply.

(3)

For the purpose of this subsection (C), an eligible participant is any plan participant who is employed by the City on or after the effective date of this ordinance, who has not entered the DROP, and who is not a member of a certified bargaining unit. At such time as the City and the union representing participants in a bargaining unit enter into a collective bargaining agreement that includes the optional enhanced multiplier provided in this paragraph, such participants who otherwise meet the eligibility criteria shall become eligible participants for the purpose of this subsection.

(O)

Deminimus Payments. If the present value of any non-forfeitable accrued benefit is less than five thousand dollars ($5,000.00), at the participant's or beneficiary's request the Committee may direct that such benefit be distributed in a lump sum, and such lump sum payment shall fully discharge all liability of the plan with respect to such benefit.

(P)

Qualification of Plan. It is intended that this plan shall constitute a qualified public pension plan under the applicable provisions of the Internal Revenue Code for a qualified plan under Code Section 401(a) and a governmental plan under Code Section 414(d), as now in effect and as may be amended from time to time. Any modification or amendment of this plan may be made retroactively, if necessary or appropriate to maintain qualification.

(Q)

Prohibited Transaction. The Board may not engage in any transaction prohibited under Section 503(b) of the Internal Revenue Code.

(Code 1980, §§ 18-110, 18-111, 18-113—18-119; Am. Ord. No. 67-84, passed 9/25/84; Am. Ord. No. 78-93, passed 12/7/93; Am. Ord. No. 15-78, passed 2/27/78; Am. Ord. No. 82-79, passed 12/10/79; Am. Ord. No. 67-84, passed 9/25/84; Ord. No. 103-87, passed 12/22/87; Am. Ord. No. 78-93, passed 12/7/93; Am. Ord. No. 96-94, passed 12/13/94; Am. Ord. No. 41-95, passed 8/8/95; Am. Ord. No. 40-97, passed 9/23/97; Am. Ord. No. 30-99, passed 8/17/99; Ord. No. 57-02, § 1, passed 1/7/03; Ord. No. 43-02, § 1, passed 9/17/02; Ord. No. 30-02, §§ 1, 2, passed 7/16/02; Ord. No. 16-04, § 1, passed 3/11/04; Ord. No. 27-04, § 1, passed 5/4/04; Ord. No. 18-05, § 1, passed 4/5/05; Ord. No. 52-05, § 2, passed 7/19/05; Ord. No. 24-06, § 1, passed 5/2/06; Ord. No. 75-06, § 1, passed 12/5/06; Ord. No. 15-07, § 1, passed 4/17/07; Ord. No. 17-07, § 1, passed 5/1/07; Ord. No. 32-07, § 1, passed 9/4/07; Ord. No. 16-08, § 1, passed 4/1/08; Ord. No. 32-08, § 1, passed 8/5/08; Ord. No. 31-09, § 1, passed 6/16/09; Ord. No. 33-10, §§ 3—5, passed 10/5/10; Ord. No. 45-17 , § 6, passed 12/5/17)