Sec. 121.210. - Transfer of terminal leave.

(a) Members eligible to receive payment of terminal leave upon separation from service may elect, prior to the date that they become eligible to receive a cash payment of accumulated leave, to have all or a portion of the leave transferred to the Plan. Members on whose behalf leave has been transferred may elect, in accordance with uniform rules established by the Board, one or a combination of the following options, up to the amount of the transferred leave balance (Option 3 is only available if separation is due to a time service or disability retirement under a state or City pension plan): Option 1: Receive a lump sum equal to all, or a portion of, the transferred leave balance; or Option 2: Transfer all, or a portion of to the extent allowed by law, the transferred leave balance to any other qualified retirement plan; or Option 3: Utilize all, or a portion of to the extent allowed by law, the value of the transferred leave for participation in a program of post-retirement health care premiums. Members failing to make an election as to the transferable leave balance, or any portion thereof, within the time prescribed by the Board's rules shall be deemed to have elected to receive a lump sum equal to the leave balance, or the portion thereof, as to which no election has been made. (b) Members who fail to elect a transfer of the leave balance, or any portion thereof, in accordance with the provisions of this Section shall receive the accumulated leave as to which no election has been made, as a lump sum at the time of separation of service. The Board, by uniform rule, shall establish an implementation program to permit current DROP participants an opportunity to make the transfer election consistent with the terms of this Section. (c) If a Member on whose behalf the City makes a leave balance transfer to the Plan dies prior to selection of an optional form of distribution from the Plan, or after an election but prior to actual distribution, the election option shall be deemed void. In such an event, any person who would have received a death benefit had the Member died in service immediately prior to the date of retirement, entry into the DROP or other separation, shall be eligible to receive an amount equal to the transferred leave balance in a lump sum. In the case of a surviving spouse, in addition to the right to elect a lump sum payment of the leave balance, an election may alternatively be made to transfer the leave balance, or a portion thereof, to a qualified retirement plan, or the surviving spouse may elect to continue to participate in any program of post-retirement health care in which the Member would have been eligible to participate under the terms of the rules adopted by the Board in accordance with the programs established by the City. The surviving spouse may elect one or a combination of the foregoing options up to the amount of the leave balance. Failure to make any such election as to the leave balance, or any portion thereof, within 60 days after the death of the Member shall be deemed an election to receive a lump sum payment as to the portion of the leave balance as to which no election has been made. (d) The Board, by uniform rule, shall prescribe the method for implementing the provisions of this Section and for establishing such programs for the use of the transferred leave in such a manner as to retain the tax qualified status of the Plan. No rule of the Board shall have the effect of altering the City's right, subject to its collective bargaining obligations, to set the terms of leave accumulation, nor shall it have the effect of altering the City's right, subject to its collective bargaining obligations, to set the terms of any program of health insurance to be offered to employees, retirees, or their eligible dependents. The Board shall prescribe rules implementing the provisions of this Section in accordance with the following guidelines: (i) any cost to the City other than internal administrative costs shall be passed on to the retiree; (ii) separate accounts shall be established within each plan for each employee who elects to transfer the terminal leave balance for post-retirement health care premiums; (iii) interest shall accrue on the balance in each account at a rate of interest similar to the rate that the City receives on investments of cash balances in the General Government cash account or other defined cash investment. The Board may also elect for the accounts to be administered and invested by a third-party administrator, and in such case, the third-party administrator may be entitled to charge a customary fee to the retiree for administering each account and shall pay interest on each account at a rate negotiated by the Board. (e) For the purposes of this Section the term "Member" shall include participants in the Florida Retirement System who would have otherwise been eligible to participate in this plan. (f) For the purposes of this Section the terms terminal leave and transferable leave and accumulated leave shall mean all accrued and unused leave to which a Member is entitled upon termination of employment. (g) The accounts established by this Section shall be irrevocable trusts maintained for the exclusive use of the Members and Beneficiaries of the retirement plan and no portion of any account shall inure to the benefit of the City or be used for any purpose other than that set forth in this Section. (Ord. 2003-618-E, § 2; Ord. 2017-259-E , § 1)