§ 40-216. Optional Lump-Sum Benefit for Certain Terminated Vested Participants.

(a)

Definition. A lump sum benefit is a single payment to a vested participant of:

(1)

For those participants who authorized the transfer of their accounts from the former Hialeah Gardens Police Pension Trust to this trust fund, the greater of the present value of the participant's accrued benefit or the sum of the amount transferred from the former Police Pension Trust to this Trust Fund plus the investment earnings (or minus the investment losses) on such transferred funds plus the Participant's accumulated contributions to this Trust Fund.

(2)

For all other Participants, the greater of the present value of the Participant's accrued benefit or the Participant's accumulated contributions.

(b)

No Further Benefits. After electing, applying for and accepting an optional lump sum benefit, a Participant will no longer be eligible to receive benefits of any kind from the Trust Fund. By accepting an optional lump sum benefit, the Participant releases the Trust Fund from any obligation or liability for any type of benefit. Upon a Participant accepting the optional lump sum benefit, the Participant and the Participant's spouse, children, beneficiaries and estate will not be eligible to receive survivor benefits, death benefits, disability benefits, pension benefits, surviving spouse benefits, surviving children's benefits, or any other type of benefit or payment from the Trust Fund.

(c)

Time for Election. A vested Participant who has terminated employment for any reason, whether by resignation, discharge or retirement, may elect the optional lump sum benefit no later than ten (10) years before reaching normal retirement age. If a Participant is within ten (10) years of normal retirement age, the Participant may not elect the optional lump sum benefit.

(d)

Method for Election. A Participant desiring a lump sum distribution shall submit a completed application form to the Board of Trustees. The form must be signed by the Participant, the Participant's spouse and any beneficiary designated by the Participant and must be notarized.

(e)

Approval by Board of Trustees. Upon receiving a fully completed and signed application, the Participant's application shall be placed on the agenda for the board's next meeting. Specific Board approval is required for each lump sum distribution.

(f)

Delivery of Lump Sum Payment Check. The Participant shall pick up the check for the lump sum payment at the Trust Fund's office, at which time the Participant must sign a general release in favor of the Trust Fund. If the Participant cannot pick up the check, the Participant must first sign the general release which must be received by the Trust Fund before the Participant's check is sent to the Participant.

(g)

Reserved.

(h)

Permitted Delay and Limitations in Payment. The Board of Trustees may delay payment of a lump sum distribution for up to six (6) months when, in the Trustees' sole discretion, sufficient cash reserves or liquidity are not available to make a lump sum payment. Also, no more than three (3) optional lump sum payments shall be made in any fiscal year. If lump sum payments are delayed or more than three (3) applications are received in a fiscal year, they will be paid in the order that applications were received and applications in excess of three (3) will be carried over to the next fiscal year.

(i)

Revocation. A participant may revoke election of a lump sum payment at any time before cashing the lump sum distribution check. In case of revocation, the Participant shall reimburse the Trust Fund for its expense in calculating and disbursing the lump sum payment.

(Ord. No. 93-10, § 1, 9-21-93; Ord. No. 2015-03, § 2, 6-2-15)