(A) This section applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the system to the contrary that would otherwise limit a distributee's election under this section, a distributee may elect, at the time and in the manner prescribed by the board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(B) Retiree medical premiums for public safety officers. The System may allow a public safety officer to elect a tax free distribution of up to $3,000 annually directly to a retiree medical plan or long term care insurance on a pre-tax basis, so long as the public safety officer separates from service either at the plan's normal retirement age or due to his or her disability. Insurance premiums may be paid for the public safety officer, his spouse, or his dependents while he is alive, but once he is deceased, the benefit ceases and may not be used by his spouse or beneficiaries to pay for their insurance premiums. Insurance premium payments may only be made
directly to the insurance company. "Public safety officers" include law enforcement officers, firefighters, chaplains, rescue crew members or ambulance crew members.
(C) Definitions:
(1) ELIGIBLE ROLLOVER DISTRIBUTION. An eligible rollover distribution is 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) made for the life (or life expectancy) of the distributee or the joint lives (or life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the code; and the portion of any distribution that is not includable in gross income.
(2) ELIGIBLE RETIREMENT PLAN.
An eligible retirement plan is an individual retirement account described in Section 408(a) of the code, an individual retirement annuity described in Section 408(b) of the code, an annuity plan described in Section 403(a) of the code, or a qualified trust described in Section 401(a) of the code that accepts the distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity. 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 code and an eligible plan under Section 457(b) of the 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 Plan.
(3) DISTRIBUTEE
. A distributee includes 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, an employee's or former employee's non-spouse beneficiary is a distributee with regard to the interest of the employee or former employee.
(4) DIRECT ROLLOVER.
A direct rollover is a payment by the 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 code.
(D) IRS compliance. If a police officer member is no longer employed by the City of Palm Bay Police Department and the member's plan account is greater than $1,000 but not greater than $5,000, the plan administrator may deposit the money into an IRA in the member's name if they do not elect to receive or roll it over. If a police officer member's account contains $1,000 or less, the plan administrator may pay it to the member, less, in most cases, 20% income tax withholding, with or without member consent. Members may still rollover the distribution within sixty (60) days. Member contributions can remain in the plan for up to 5 (five) years in accordance with the provisions set forth in the definition of "Credited Service" under § 55.02. This provision only applies to police officer members.
(Ord. 2000-15, passed 5-5-00; Am. Ord. 2013-45, passed 8-13-13; Am. Ord. 2015-24, passed 5-21-15; Am. Ord. 2019-11, passed 2-21-19)