§ 46-34. Pre-retirement death.

(a)

Prior to vesting or eligibility for retirement. If a participant dies prior to his or her normal retirement date or early retirement date, whichever first occurs, and has less than ten creditable years of service, no retirement benefit will be payable to any person, but the beneficiary (or beneficiaries) of such deceased participant shall be entitled to a refund of his or her accumulated contributions. Notwithstanding the preceding sentence, in the event an annuity or life insurance contract has been purchased by the board on such participant, then the participant's beneficiary (or beneficiaries) shall be entitled to the death benefits available under such life insurance or annuity contract subject to the limitations on such death benefits set forth in subsection (6) of section 46-30, or a refund of the deceased participant's accumulated contributions, whichever amount is greater. In the event that the death benefit paid by a life insurance company exceeds the limit set forth in subsection (6) of section 46-30, the excess of the death benefit over the limit shall be paid to the fund. However, the benefits as provided in F.S. § 112.191, shall not be included as death or retirement benefits under the provisions of F.S. Ch. 175.

(b)

Deceased participants vested or eligible for retirement with spouse as beneficiary. This subsection (b) applies only when the participant's spouse is the sole designated beneficiary. The spouse beneficiary of any participant who dies and who, at the date of his or her death had ten or more creditable years of service or was eligible for early or normal retirement, shall be entitled to a benefit as follows:

(1)

If the participant had ten or more creditable years of service, but was not eligible for normal or early retirement, the spouse beneficiary shall receive a benefit payable for ten years, beginning on the date that the deceased participant would have been eligible for early or normal retirement, at the option of the spouse beneficiary. The benefit shall be calculated as for normal retirement, determined as of the date of the participant's death, but reduced as for early retirement, if applicable. The spouse beneficiary may also elect to receive an immediate benefit, payable for ten years, which is actuarially reduced (pursuant to subsection 2 [definition of "actuarial equivalent] of section 46-26) to reflect the commencement of benefits prior to the early retirement date.

(2)

If the deceased participant was eligible for normal or early retirement, the spouse beneficiary shall receive a benefit payable for ten years, beginning on the first day of the month following the participant's death or at the deceased participant's otherwise early or normal retirement date, at the option of the spouse beneficiary. The benefit shall be calculated as for normal retirement, determined as of the date of the participant's death, but reduced as for early retirement, if applicable.

(3)

A spouse beneficiary may not elect an optional form of benefit pursuant to section 46-37. However, the board may elect to make a lump sum payment pursuant to subsection (f)(h) of section 46-37.

(4)

A spouse beneficiary may, in lieu of any benefit provided for in paragraph (a) or (b) above, elect to receive a refund of the deceased participant's accumulated contributions.

(5)

Notwithstanding anything contained in this section to the contrary, in any event, distributions to the spouse beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the participant died, or by a date selected pursuant to the above provisions in this section that must be on or before December 31 of the calendar year in which the participant would have attained 70½.

(6)

If the surviving spouse beneficiary commences receiving a benefit under subsection (1) or (2) above, but dies before all payments are made, the actuarial value of the remaining benefit will be paid to the spouse beneficiary's estate in a lump sum.

(c)

Deceased participants vested or eligible for retirement with non-spouse beneficiary. This subsection applies only when the participant's spouse is not the beneficiary or is not the sole designated beneficiary, but there is a surviving beneficiary. The beneficiary of any participant who dies and who, at the date of his death was vested or eligible for early or normal retirement, shall be entitled to a benefit as follows:

(1)

If the participant was vested, but not eligible for normal or early retirement, the beneficiary will receive a benefit payable for ten years. The benefit will begin by December 31 of the calendar year immediately following the calendar year in which the participant died. The benefit will be calculated as for normal retirement based on the deceased participant's credited service and average final compensation and actuarially reduced to reflect the commencement of benefits prior to the normal retirement date.

(2)

If the deceased participant was eligible for normal or early retirement, the beneficiary will receive a benefit payable for ten years, beginning on the first day of the month following the participant's death. The benefit will be calculated as for normal retirement based on the deceased participant's credited service and average final compensation as of the date of his death and reduced for early retirement, if applicable.

(3)

A beneficiary may not elect an optional form of benefit, however the board may elect to make a lump sum payment pursuant to section 46-37, subsection (h).

(4)

A beneficiary, may, in lieu of any benefit provided for in (1) or (2) above, elect to receive a refund of the deceased participant's accumulated contributions.

(5)

If a surviving beneficiary commences receiving a benefit under subsection (1) or (2) above, but dies before all payments are made, the actuarial value of the remaining benefit will be paid to the surviving beneficiary's estate by December 31 of the calendar year of the beneficiary's death in a lump sum.

(6)

If there is no surviving beneficiary as of the participant's death, and the estate is to receive the benefits, the actuarial equivalent of the participant's entire interest must be distributed by December 31 of the calendar year containing the fifth anniversary of the participant's death.

(7)

The Uniform Lifetime Table in Treasury Regulations § 1.401(a)(9)-9 shall determine the payment period for the calendar year benefits commence, if necessary to satisfy the regulations.

(Ord. No. 02-2005, § 1, 2-7-2005; Ord. No. 20-2010, § 8, 10-18-2010; Ord. No. 16-2013, § 4, 11-18-2013)