POMPANO BEACH POLICE & FIREFIGHTERS' RETIREMENT
SYSTEM
SUMMARY PLAN DESCRIPTION
VESTED RETIREMENT BENEFIT
If you terminate employment, other than by reason of
retirement, disability or death, you may be entitled to a deferred Vested
Retirement Benefit. This benefit is equal to your Accrued Benefit on
your termination date multiplied by your vested interest. The following
chart shows your vested interest in your Accrued Benefit.
|
Vesting
Schedule |
|
Completed Years
of
Credited Service |
Vested
Interest |
|
Less than 10
10 or more |
0%
100
|
The vested benefit is payable at your Normal Retirement
Date. If you have 20 or more years of Credited Service before your
termination, you may receive your vested benefit, reduced as for Early
Retirement, at any time after your termination (see Early Retirement
Benefit). Further, unless you are eligible to receive a retirement
benefit, you may elect to immediately receive a refund of your own
contributions, plus 3.0% interest. Please note that this election is
made in lieu of any and all benefit payments.
If you terminate before you are vested you will receive a
refund of your own contributions, plus 3.0% interest. Please note,
however, that you must have at least one year of Credited Service to
receive the 3.0% interest.
The taxable portion of any refund you receive is subject to
an automatic 20% withholding for federal income tax purposes. This tax
can be avoided, however, if you directly roll the taxable portion over to
an Individual Retirement Account (IRA) or another qualified employer
plan. This direct rollover will result in no tax being due until you
begin withdrawing funds from the IRA or other qualified employer plan.
Requesting a Refund of Contributions
The following procedures are provided for your information:
1. Contact the pension office to set up an
appointment to complete a Request for Refund of Contributions form and to
obtain the required IRS Special Tax Notice Regarding Plan Payments.
2. Because complex rules apply to your refund and the
rollover of payments, you should seek competent tax advice from your tax
advisor.
3. Allow 4-6 weeks after you have
completed the Request for Refund of Contributions for your check(s) to be
issued, whether the refund is paid to you or payment is made directly to
your IRA or another qualified employer plan.
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