§ 40-399. Federal Tax Provisions.

(a)

USERRA. Notwithstanding any provision of this Pension Plan to the contrary, effective as of December 12, 1994, contributions, benefits and service credit with respect to Qualified Military Service will be provided in accordance with Section 414(u) of the Internal Revenue Code, USERRA or Chapter 185, Florida Statutes, as applicable.

(1)

Death Benefit. In the case of a death or disability occurring on or after January 1, 2007, if a participant dies while performing Qualified Military Service the survivors of the participant are entitled to any additional benefits (other than benefit accruals relating to the period of Qualified Military Service) provided under the plan as if the participant had resumed and then terminated employment by the City on account of death.

(b)

Rollover of Distributions. This section applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the Pension Plan to the contrary that would otherwise limit a distributee's election under this section, a distributee may elect, at any time and in any manner prescribed by the Board of Trustees, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. For the purposes of this section the following definitions shall apply:

(1)

DIRECT ROLLOVER. A payment by the Pension Plan to the eligible retirement plan specified by the distributee. Effective as of January 1, 2008, a non-spouse Beneficiary may make a direct rollover only to an ""inherited"" individual retirement account as described in Section 408(b) of the Internal Revenue Code. If a non-spouse Beneficiary receives a distribution from the plan, the distribution is not eligible for a 60-day (non-direct) rollover.

(2)

DISTRIBUTEE. 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. Effective as of January 1, 2008, a Member's or former Member's non-spouse Beneficiary is a distributee with regard to the interest of the Member or former Member.

(3)

ELIGIBLE RETIREMENT PLAN. An individual retirement account described in Section 408(a) of the Internal Revenue Code, an individual retirement annuity account described in 408(b) of the Internal Revenue Code, an individual retirement plan described in Section 403(a) of the Internal Revenue Code, or a qualified trust described in Section 401(a) of the Internal Revenue Code that accepts the distributee's eligible rollover distribution. Effective for distributions made after December 31, 2001, an eligible retirement plan shall also mean an annuity contract described in Section 403(b) of the Internal Revenue Code and 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 and which agrees to separately account for amounts transferred into such plan from this Pension Plan.

(4)

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) of the distributee and the distributee's designated beneficiary, for a specified period of ten 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.

(c)

Upon the termination of the Pension Plan or on the complete discontinuance of contributions under the Pension Plan, each Member shall have nonforfeitable, 100 percent vested rights to benefits accrued to date of the termination or discontinuance to the extent funded at that time.

(d)

Notwithstanding anything herein to the contrary, a Member's benefits shall commence no later than April 1 of the calendar year following the later of (i) the calendar year in which he or she attains age 70½ or (ii) the calendar year in which he or she retires (the "Required Beginning Date"). All distributions from the Pension Plan (including the DROP) shall conform to the regulations issued under Section 401(a)(9) of the Internal Revenue Code, including the incidental death benefit provision of Section 401(a)(9)(G) of the Internal Revenue Code. Further, such regulation shall override any plan or DROP provision that is inconsistent with Section 401(a)(9) of the Internal Revenue Code.

(e)

Notwithstanding any other provisions of this Pension Plan, the retirement benefit of a member shall be reduced to the extent that is exceeds amounts specified in Section 415 of the Internal Revenue Code.

(f)

Differential Wage Payments. For years beginning after December 31, 2008, (i) an individual receiving a differential wage payment, as defined in Section 3401(h)(2) of the Internal Revenue Code, shall be treated as an employee of the employer making the payment, (ii) the differential wage payment shall be treated as compensation, and (iii) the plan shall not be treated as failing to meet the requirements of any provision described in Section 414(u)(1)(C) of the Internal Revenue Code by reason of any contribution or benefit which is based on the differential wage payment.

(Ord. No. 2015-03, § 2, 6-2-15; Ord. No. 2017-14, § 7, 8-15-17)