POMPANO BEACH POLICE & FIREFIGHTERS' RETIREMENT
SYSTEM
SUMMARY PLAN DESCRIPTION
FORMS OF BENEFIT PAYMENTS
Normal Form of Benefit Payment
Unless you elect otherwise before retirement, your pension is
payable as a Ten Year Certain and Life Annuity. This benefit is a series
of monthly payments for your life. However, if you die before receiving
120 payments (ten years), your Beneficiary will reeive the remainder of
the payments.
Election of Optional Forms of Benefit Payments
You have the right at any time before your actual retirement
date to elect not to have your retirement benefit paid in the Normal
Form. Your benefit would then be paid in the form which you choose.
You may choose among the options described below and revoke
any such elections and make a new election at any time prior to your
actual retirement date. You must make such an election by written
request to the Plan Administrator and such an election shall be subject
to the approval of the Plan Administrator. This election also applies to
terminated Participants who are eligible for payment of deferred Vested
Retirement Benefits. The options available are as follows:
1. Option 1 - Joint and Last
Survivor Annuity
You may elect to receive a decreased
monthly retirement benefit during your lifetime and have such decreased
retirement benefit (or a designated fraction thereof) continued after
your death to and during the lifetime of your Beneficiary. If you elect
to receive this Option but the Beneficiary you selected at the time of
your retirement predeceases you, you may – one time only – designate
another Beneficiary.
2. Option 2 –
Life Annuity
You may elect to receive a larger
retirement benefit payable for the rest of your life, ceasing upon your
death.
3. Option 3 - Other
You may elect another optional form which is
subject to the approval of the Plan Administrator and which is
actuarially equivalent to the Normal Form of Benefit.
In no event will the total of benefit payments to you and
your Beneficiary be less than your own accumulated contributions plus
3.0% interest.
4. Option 4 - Deferred
Retirement Option Plan (DROP)
You are eligible to elect to participate in the
DROP when you reach your Normal Retirement Date. This election must be
made before you attain 25 years of Credited Service. However, if you
have 25 years of Credited Service, but you are not yet eligible for
Normal Retirement, you may elect to participate in the DROP upon reaching
Normal Retirement. Election into the DROP is voluntary. This election
constitutes an irrevocable election to voluntarily terminate your
employment as a Police Officer or Firefighter effective automatically
upon the termination of participation in the DROP. You may participate
in the DROP for a maximum of five years.
During the first three and a half years of your
DROP participation, you will be eligible to be promoted, to participate
in any promotional examination process and/or be appointed or promoted to
any non-bargaining unit positions. After that time, you will only be
eligible for promotions with the specific approval of the Fire Chief and
City Manager.
Once you begin participation in the DROP, you
will no longer be eligible for pre-retirement death or disability
benefits under the Plan.
If you elect to enter the DROP, the monthly
benefit you would have received if you had retired on your election date
will be paid into your DROP account. In addition, each quarter that you
are a participant in the DROP, your account will be credited or debited
with interest using a rate equal to the actual net rate of investment
return realized by the Plan for that quarter. You may, however, elect to
direct the investment of your DROP account in designated proportions
among the unitized or mutual funds as made available by the Plan
Administrator.
The expense of administering your DROP account, initially set
at the annual rate of 0.75% of your account balance, will be charged
against your account. Payment of expenses will continue until the end of
your participation in the DROP.
Upon your termination of employment, the balance of your DROP account
will become payable to you in addition to your regular monthly pension
benefit. You will have the following options of payment for your DROP
account:
1) A single lump sum payment
2) Equal annual payments
3) Equal monthly payments
If you die before your DROP account balance has been
paid out in full, your Beneficiary will have the same payout options as
listed above. DROP payments to your Beneficiary will be in addition to
any retirement benefits payable by the Plan.
Contact the Deputy Administrator if you need more
detailed information regarding the DROP.
© 2006 Pompano Beach Police &
Firefighters' Retirement System
All Rights Reserved.
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