§ 9-70. Deferred retirement option plan.

(a)

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

(b)

Eligibility to participate in the DROP is based upon eligibility for normal service retirement at age forty-two (42) with twenty (20) years of creditable service.

(c)

The maximum period of DROP participation for firefighters who, on March 1, 2013, are within seven (7) years of the normal retirement date provided in subsection 9-63 (a)(1)a and all police officers/deputy sheriffs is five (5) years. The maximum period of DROP participation for firefighters hired on or after March 1, 2013 and firefighters who, on March 1, 2013, are not within seven (7) years of the normal retirement date provided in subsection 9-63 (a)(1)a is three (3) years. Members entering the DROP must submit an irrevocable letter of termination or resignation, effective not later than sixty (60) months after the commencement of DROP participation, if the DROP is elected within ninety (90) days of the adoption of this section, or otherwise the remaining months in the maximum DROP participation period, as described in subsection (d), below. In the case of members employed by the Broward Sheriff's Office (BSO), the irrevocable letter shall relate to membership in the plan.

(d)

In order to participate for the maximum number of years of DROP eligibility provided in subsection (c) above, entry into the program must commence not later than the first day of the month following the member's attainment of normal retirement eligibility. DROP participation eligibility shall be reduced by one (1) month for each month following the attainment of normal retirement eligibility. Notwithstanding any provision of this subsection, any actively employed firefighter who has twenty (20) or more years of continuous service on or after March 7, 2007 shall be permitted to participate in the DROP for the maximum five-year period.

(e)

Upon entry into the DROP, the member's average final compensation and accrued benefits shall be calculated. No change in the plan benefits made subsequent to entry into the DROP shall apply to the member unless otherwise applicable to retired members.

(f)

Payment shall be made into the employee's DROP account in an amount determined by the employee's selection of the payment option as if the employee had terminated employment in the city.

(g)

An employee's account in the DROP program shall earn or lose interest based upon the earnings and losses of the retirement plan for the preceding year.

(h)

An employee shall terminate service with the city at the conclusion of years in the maximum DROP participation period, as described in subsection (c) and (d), above. Members who are employed by the Broward Sheriff's Office (BSO) must terminate membership in the plan at the conclusion of the DROP participation period.

(i)

All interest shall be credited to the employee's DROP account at the end of the DROP period.

(j)

Upon termination of service with the city, an employee may receive payment within forty-five (45) days of the member requesting payment or may defer payment until a time not later than the latest date authorized by Section 401(a)(9) of the Internal Revenue Code at the option of the member.

(k)

Payments from the DROP may be received as a lump sum, installment payments, annuity, or a combination of payment options; provided, however, that at all times, the DROP shall be subject to the minimum distribution provisions of the Internal Revenue Code.

(l)

No payment may be made from the DROP until the employee actually separates from service with the city.

(m)

If an employee shall die during participation in the DROP, the employee shall be treated as any other retired member and shall not be entitled to pre-retirement death benefits.

(n)

Upon commencement of participation in the DROP, the member shall no longer be eligible for disability retirement from the pension plan. If a member becomes disabled during the DROP period, the member shall be treated as if he/she retired on the day prior to the date of disability.

(o)

Participation in the DROP is not a guarantee of continued employment. DROP participants are considered active employees with regard to all matters, except as set forth in this section. DROP participants shall receive all other benefits payable to active employees. DROP participants are expected to conform to the same level of conduct and efficiency as any other employee of the city, including members of the Broward Sheriff's Office covered by this plan.

(Ord. No. O-2001-001, § 1, 1-3-01; Ord. No. O-2007-019, § 3, 6-20-07; Ord. No. O-2013-004, § 4, 2-20-13)