[Amended 7-11-2006 by Ord. No. 1203]
For each DROP participant, an individual DROP account shall be created
in which shall be accumulated at DROP interest the participant's DROP
benefits. All individual DROP accounts shall be maintained for the benefit
of each DROP participant and will be managed by the Retirement Board in the
same manner as the primary pension fund. DROP interest for each DROP participant
shall be at a fixed rate of 3.0% per annum with interest credited on the anniversary
date that the participant entered into the DROP. The Retirement Board shall
provide each participant with an annual statement of their account activity.
The reference to individual DROP accounts shall be interpreted to refer to
the accounting records of the retirement system and not to the actual segregation
of monies in the funds of the retirement system.
Except as otherwise provided in §
18-11, if an employee participating in the DROP dies either before full retirement (i.e., before termination of service) or during full retirement (i.e., after termination of service, but before the DROP account balance has been fully paid out, the participant's designated beneficiary(ies) shall receive the remaining balance in the participant's DROP account in the manner in which they elect from the distribution methods as provided in §
18-8. In the event the participant has failed to name a beneficiary, the account balance shall be payable to the participant's beneficiary of benefits from the retirement system. If there is no such beneficiary, the account balance shall be paid in a lump sum to the participant's estate. Benefits payable from the retirement system shall be determined as though the DROP participant had separated from service on the day prior to the participant's date of death.
Except as otherwise provided in §
18-11, in the event a DROP participant becomes totally and permanently disabled from further performance of duty in the employ of the City of Roseville in accordance with the provisions of the retirement system, the participant's participation in the DROP shall cease and the member shall receive such benefits as if the member had retired and terminated employment during the participation period. Application and determination of disability shall be conducted in accordance with the retirement system provisions; however, the participant shall not be eligible for disability benefits from the retirement system, except as specifically provided in §
18-11.
A DROP participant who is found by the Retirement Board, in accordance
with retirement system provisions, to be totally and permanently incapacitated
for duty by reason of a personal injury or disease occurring as the natural
and proximate result of causes arising out of and in the course of the employee's
employment with the City, may retroactively revoke the participant's
DROP election if the revocation occurs before the payment of a distribution
to the employee from the participant's DROP account or payment of disability
or retirement benefits to the employee from the retirement system. If a DROP
participant dies in the line of duty while in the employ of the City, the
DROP participant's eligible survivors qualified under the retirement
system provisions and/or the participant's applicable collective bargaining
agreement, and the participant's eligible DROP beneficiary(ies) may,
by unanimous agreement, retroactively revoke the participant's DROP election
if the revocation occurs within 90 days of the participant's date of
death and before payment of a distribution from the participant's DROP
account or payment of benefits from the retirement system. If a DROP election
revocation is made as prescribed by this section, the participant's DROP
account is not distributed, and the participant or the participant's
beneficiary(ies), as applicable, is entitled to all benefits provided by the
retirement system as if a DROP election had not been made. In the event of
revocation of DROP participation as provided herein, there shall be no requirement
for retroactive payment of employee contributions which would otherwise have
been paid by the employee to the retirement system, and the employee shall
receive credit for all service rendered during the DROP participation or as
otherwise provided in the applicable collective bargaining agreement.
[Added 4-1-2003 by Ord. No. 1174]
Ordinance No. 1171 of the City of Roseville Code of Ordinances, adopted
September 24, 2002, and effective October 14, 2002, is hereby given retroactive
effect to July 1, 2001.