Title 4 PENSION AND RETIREMENT SYSTEM* Chapter 4-24 1948 BENEFIT PLAN Article 1 Participation Sec. 4-24-1 Participation. Sec. 4-24-2 Reemployed participants. Sec. 4-24-3 Transferring participants to the plan. Sec. 4-24-4 Transferring participants from the plan. Sec. 4-24-5 Participant information. Article 2 Contributions Sec. 4-24-6 Employee contributions. Sec. 4-24-7 City contributions. Sec. 4-24-8 Forfeitures. Sec. 4-24-9 Prohibition against interest. Article 3 Retirement Benefits Sec. 4-24-10 Normal retirement. Sec. 4-24-11 Involuntary retirement. Sec. 4-24-12 Disability retirement. Sec. 4-24-13 Deferred retirement. Sec. 4-24-14 Refund of employee contributions. Sec. 4-24-15 Benefits upon reemployment. Page 1 of 19
Article 4 Death Benefits Sec. 4-24-16 Line-of-duty death benefit. Sec. 4-24-17 Other death benefit. Sec. 4-24-18 Distribution. Sec. 4-24-19 Residual benefits. Sec. 4-24-20 Increase in monthly retirement allowance authorized. Article 5 DROP Program Sec. 4-24-21 Deferred retirement option plan (DROP). Page 2 of 19
Article 1 Participation Sec. 4-24-1 Participation. A. General Rule. Each employee hired on or after October 1, 1948 and before July 1, 1978, who, as of December 31, 1989, was a participant in the 1948 plan, as constituted in Chapter 4-8 as in effect on that date, and who continues as an employee after December 31, 1989, shall continue to be a participant in this 1948 plan as of his or her employment creditable service date without any further action on his or her part. He or she shall remain a participant in this 1948 plan until the earlier of his or her termination of employment as an employee or operation of the provisions of this title which make him or her a participant in the 1978 plan or otherwise remove him or her from this 1948 plan. B. Elected Employees. Any employee elected to his or her position, including the mayor or any member of the council, after April 1, 1951 and before July 1, 1978, who, as of December 31, 1989, was a participant in the 1948 plan, as constituted in Chapter 4-8 as in effect on that date, and who continues as an employee after December 31, 1989, shall continue to be a participant in this 1948 plan as of his or her employment creditable service date without any further action on his or her part. He or she shall remain a participant in this 1948 plan until the earlier of his or her termination of employment as an employee or operation of the provisions of this title which make him or her a participant in the 1978 plan or otherwise remove him or her from his or her 1948 plan. C. Part-Time Employees. Each part-time employee hired on or after April 1, 1960 and before July 1, 1978, who, as of December 31, 1989, was a participant in the 1948 plan, as constituted in Chapter 4-8 as in effect on that date, and who continues as a part-time employee after December 31, 1989, shall continue to be a participant in this 1948 plan as of his or her employment creditable service date without any further action on his or her part. He or she shall remain a participant in this 1948 plan until the earlier of his or her termination of all employment with the city (part-time and full-time) or his or her removal from this 1948 plan by operation of the Page 3 of 19
provisions of this title. (Ord. 3907 1, 12-5-89; Code 1985 25-60) Sec. 4-24-2 Reemployed participants. Any former participant in this 1948 plan who was reemployed as an employee prior to July 1, 1978, shall reenter this 1948 plan a participant as of his or her reemployment commencement date. Any former participant in this 1948 plan who was reemployed as an employee on or after July 1, 1978, shall either reenter this 1948 plan or enter the 1978 plan as a participant as provided in Section 4-28-1. His or her years of service shall be determined as provided under Section 4-4-1(44). (Ord. 3907 1, 12-5-89; Code 1985 25-61) Sec. 4-24-3 Transferring participants to the plan. A. Memphis Light, Gas and Water Division. If the Memphis light, gas and water division has a self-insured retirement system, a member of the Memphis light, gas and water division retirement system may be transferred to this 1948 plan as a participant as of his or her employment creditable service date, if he or she became an employee before July 1, 1978. His or her years of service shall be determined in accordance with Section 4-4-1(44)(f)(i). B. Public Library and Information Center. Any employee who is a former member of the Memphis and Shelby County Public Library and Information Center Retirement System may be transferred by and from such library system as a participant in this 1948 plan, provided, he or she became an employee before July 1, 1978, and an amount equal to the total employee contributions made by or on behalf of such transferred participant under such library system shall be transferred to the trust fund. His or her years of service shall be determined in accordance with Section 4-4-1(44)(f)(ii). C. Involuntary Transfer From the County. 1. An involuntary transfer county employee shall become a participant of this 1948 plan as of his or her employment creditable service date, provided, he or she became an employee before July 1, 1978. Such participation shall be mandatory as a condition of his or her employment. Page 4 of 19
2. Except for purposes of Sections 4-24-12(A) and 4-24-16, the accrued benefit of an involuntary transfer county employee shall be determined as the excess, if any, of a. minus b., where: a. Is his or her accrued benefit based on his or her total years of service, including county transfer service, and his or her average monthly compensation as of his or her date of retirement or earlier termination of employment as an employee, as the case may be; and b. Is his or her accrued benefit based on his or her county transfer service and average monthly compensation as of his or her date of retirement or earlier termination of employment as an employee, as the case may be. For purposes of Sections 4-24-12 and 4-24-16, the accrued benefit of an involuntary transfer county employee shall be his or her accrued benefit based on his or her total years of service, including county transfer service, and his or her average monthly compensation as of his or her date of retirement or earlier termination of employment as an employee, as the case may be. (Ord. 3907 1, 12-5-89; Code 1985 25-62) Sec. 4-24-4 Transferring participants from the plan A. Memphis Light, Gas and Water Division. If the Memphis light, gas and water division shall have in effect a self-insured retirement system, a participant transferred to the Memphis light, gas and water division retirement system shall receive full creditable service under such system for his or her years of service upon the transfer by and from the trust fund of an amount equal to his or her employee contributions then in the trust fund; provided, however, if the transferred participant was eligible for a normal retirement benefit under Section 4-24-10, there shall be no transfer of his or her employee contributions and no transfer of his or her years of service, and upon his or her actual retirement, he or she shall receive the normal retirement benefit to which he or she would have been entitled under Section 4-24-10 had he or she retired on his or her date of transfer from this 1948 plan and the transferee retirement system shall pay the balance of the total Page 5 of 19
retirement benefits to which the participant is entitled on his or her actual retirement date under such other system without any credit for past service. B. Involuntary Transfer From the City. 1. Any involuntary transfer city employee to the county shall become a member of plan B of the county retirement system subject to the provisions of such plan, as of his or her date of employment with the county. Upon proper notification by city or county government, the board shall issue a certificate stating the amount of the transferred participant s city transfer service. The board shall present to the county such city transfer service certificate for review and acceptance and shall approve such city transfer service; provided such service has been calculated in accordance with this 1948 plan, the conditions regarding transfer by the participant as specified within this 1948 plan are fulfilled and the person transferred reports for employment with the county on the date required by an authorized designee of the county. 2. An involuntary transfer city employee shall receive a benefit under this 1948 plan, if he or she would be entitled to one (other than under Section 4-24-12(A) or 4-24-16), based on the sum of his or her years of service and years of creditable service with plan B of the county retirement system. The amount of such benefit shall be determined under this 1948 plan based on his or her average monthly compensation (defined to take into account any compensation received by him or her from the county prior to his or her retirement, death or disability not incurred in line-of-duty, or other termination of employment) and his or her years of service as of the date of his or her transfer from the city. 3. No benefit under Section 4-24-12(A) or 4-24-16 shall be paid to any involuntary transfer city employee. Instead, upon payment to the employee of any benefits due to death or disability attributable to hazardous duty in accordance with the terms of plan B of the county retirement system, the participant s employee Page 6 of 19
contributions then in the trust fund shall be transferred to the county retirement plan B. Such transfer shall be a full and unconditional release of any and all obligations of the city under this plan. Under no other circumstances shall any assets of the trust fund be transferred to the county retirement system on behalf of an involuntary transfer city employee and the actuarial funding and payment of any other benefit, as described in subsection (B)(2) of this section, shall be the responsibility of the city. (Ord. 3907 1, 12-5-89; Code 1985 25-63) Sec. 4-24-5 Participant information. The head of each city department shall give immediate notice in writing to the board of any new employee, and of the change in status of any employee in his or her department resulting from transfer, promotion, leave of absence, resignation, reinstatement, dismissal or death. The head of each department shall furnish such other information, concerning any participant, as the board may require. (Ord. 3907 1, 12-5-89; Code 1985 25-64) Article 2 Contributions Sec. 4-24-6 Employee contributions. A. Effective June 19, 1999 (being the first day of the first pay period of fiscal year 2000), each 1948 plan participant shall contribute five percent of his or her compensation to the trust fund. Such contribution shall be paid by the participant while an employee until his or her retirement as an employee. B. Effective June 19, 1999 (being the first day of the first pay period of fiscal year 2000), each 1948 plan participant who is a police officer or firefighter shall contribute to the trust fund a percentage of his or her compensation determined under the following table: Page 7 of 19
Years of Service as of January 1, 1990 Contribution Percentage Less than 15 5.50 15 but less than 20 5.25 20 or more 5.00 C. Effective January 1, 1983, the contributions made by each participant to the trust fund shall be designated as city contributions pursuant to Code Section 414(h). Such designation is contingent upon the contributions being excluded from the participant s gross income for federal income tax purposes. D. Subject to the provisions of this plan, the board shall adopt rules and regulations governing the making of employee contributions by payroll deduction. The head of each city department shall apply the rate of contribution to the compensation of each participant, and shall certify to the comptroller on each payroll the amount to be contributed, and shall promptly furnish to the board a copy of each payroll; and such amount shall be deducted by the comptroller and shall be paid into the trust fund and credited by the board as employee contributions of the participants for whom the contributions were made. Every participant shall be deemed to have consented and agreed to the employee contributions provided and made hereunder. Payment of salary, less such contributions, shall be a full and complete discharge of all claims and demands whatsoever for the service rendered by such person to the city during the period covered by such payment, except his or her claim to the benefits to which he or she may be entitled under the provisions of this 1948 plan. E. At the end of each pay period, the comptroller shall determine the aggregate amount of the employee contributions of the participants who are employees of the general city Page 8 of 19
government for such period, and shall be supplied with the aggregate amount of the employee contributions of the participants of the various other city agencies, in the proper amount, and shall then transfer to the trust fund an amount equal to the aggregate employee contributions for all participants for such pay period. F. No such contributions shall be required or made while the participant is in the armed services and receiving years of service credit under Section 4-4-1(44)(g). (Ord. 4673 1, 3, 6-1-99; Ord. 3907 1, 12-5-89; Code 1985 25-70) Sec. 4-24-7 City contributions. A. At the end of each month, the comptroller shall determine the aggregate amount of the compensation of all participants on which the employee contributions for such month are calculated. The city shall pay into the trust fund as its contribution the sum of (1) and (2), where: 1. Is a certain percentage of the aggregate amount of compensation each month to be known as the current service contribution, to provide the city s part of the disability retirement allowances, the death benefits, and those portions of the retirement benefits to be granted on account of current service; and 2. Is a certain percentage of the aggregate amount of compensation each month to be known as the accrued liability contribution. The percentages under subsection (A)(1) and (2) of this section shall be no less than five and zero-tenths percent of the compensation of all participants of this 1948 plan, as set forth in this section. B. The payments of the city into the trust fund under this section are made obligations of the city. The council shall appropriate annually such amounts as are necessary to make such payments. C. All such contributions made to the trust fund shall be used to fund benefits under the 1948 plan or to pay expenses of the Page 9 of 19
1948 plan and shall be irrevocable, except as otherwise provided in Section 4-24-9. D. No such contributions shall be required or made while the participant is in the armed services and receiving years of service credit under Section 4-4-1(44)(g). (Ord. 4673 5, 6-1-99; Ord. 4265 2, 7-19-94; Ord. 4047 2, 6-25-91; Ord. 3907 1, 12-5-89; Code 1985 25-71) Sec. 4-24-8 Forfeitures. All forfeitures arising under the 1948 plan will be applied to reduce the contributions of the city to the 1948 plan and shall not be used to increase the 1948 plan benefits of any participant at any time prior to termination of the 1948 plan. (Ord. 3907 1, 12-5-89; Code 1985 25-72) Sec. 4-24-9 Prohibition against interest. The city shall not have any right, claim or interest in the trust fund or in any contributions made to the trust fund, and this 1948 plan may not be amended to use the trust fund for any purpose other than the exclusive benefit of the participants and, where applicable, their spouses or children; provided the comptroller shall return any portion of a contribution which was made under a mistake of fact, provided such return is made within one year after such contribution is made. (Ord. 3907 1, 12-5-89; Code 1985 25-73) Article 3 Retirement Benefits Sec. 4-24-10 Normal retirement. A. A 1948 plan participant who elects to retire on or after his or her normal retirement date, by a written election designating the date he or she will retire and delivered to the board not less than thirty (30) days before such designated date, shall be entitled to receive a retirement benefit equal to his or her accrued benefit. B. The board may compel the retirement of a participant on or after his or her normal retirement date, upon the recommendation of a qualified physician and the director of the city division in which the participant is employed that such Page 10 of 19
retirement is in the best interest and efficiency of the division and department. Any such participant shall be entitled to receive a retirement benefit equal to his or her accrued benefit. C. The annuity commencement date of any participant who is to receive his or her benefit pursuant to subsection A of this section shall be the retirement date specified in his or her written election. The annuity commencement date of any participant who is to receive his or her benefit pursuant to subsection B of this section shall be the retirement date specified by the board. (Ord. 3907 1, 12-5-89; Code 1985 25-78) Sec. 4-24-11 Involuntary retirement. A. If the employment of a 1948 plan participant is discontinued without fault or delinquency on the part of the participant, or in the case of a participant who is an elected or appointed employee, is discontinued by reason of his or her failure to seek or achieve re-election or re-appointment, by elimination of the elected or appointed official s position through consolidation or by the elected official s election or appointment to an office not covered by this 1948 plan, and if such participant has fifteen (15) years of service as of the date his or her employment terminates, then such participant shall receive a retirement benefit equal to his or her accrued benefit. B. The annuity commencement date of any participant who is to receive his or her benefit pursuant to subsection A of this section shall be the date of his or her retirement under that subsection. (Ord. 3907 1, 12-5-89; Code 1985 25-81) Sec. 4-24-12 Disability retirement. A. Line-of-Duty Disability. Upon application by or on behalf of the participant or by the director of the city division for which he or she works, any participant determined to have incurred a line-of-duty disability shall receive during the period he or she suffers from such disability a retirement benefit equal to the greater of sixty (60) percent of his or her average monthly Page 11 of 19
compensation or his or her accrued benefit as of the date of such disability. The provisions of this subsection shall be effective as of January 1, 1989. B. Ordinary Disability. Upon application by or on behalf of the participant or by the director of the city division for which he or she works, any participant determined to have incurred an ordinary disability shall receive during the period he or she suffers from such disability a retirement benefit equal to the greater of twenty-five (25) percent of his or her average monthly compensation or his or her accrued benefit as of the date of such disability; provided, however, the board shall deny any such benefit payments and, instead, refund the participant s employee contributions in accordance with Section 4-24-14, if the board has proof that such disability is a result of the participant s gross and wilful misconduct. C. Re-examination of Disability. At the discretion of the board, a participant receiving benefits under this section, may be required to undergo a medical examination by a qualified physician to determine whether the participant continues to suffer from the disability. D. Cancellation of Disability Retirement. 1. If a participant refuses to undergo medical examination under this section, his or her benefits shall be discontinued until he or she withdraws his or her refusal. 2. If a participant is determined under this section to have recovered from his or her line-of-duty or ordinary disability his or her disability benefits shall be cancelled and he or she shall be reinstated to city employment. Upon returning to city employment, he or she shall have full credit for all employee contributions and years of service credited to him or her as of the original date of his or her disability. 3. If a participant s disability benefits under this section are cancelled for any reason other than returning to city employment, he or she shall receive a refund of his or her employee contributions, in accordance with Section 4-24- Page 12 of 19
14, reduced by the amount of any benefit payments previously made to him or her. 4. If a participant suffering from an ordinary disability and receiving benefits under this section, nevertheless engages in a gainful occupation not with the city or returns to employment with the city and reenters the 1948 plan as a participant, his or her disability benefits shall be reduced so that the sum of his or her disability benefit payments and his or her compensation from such occupation or city employment shall not exceed his or her average monthly compensation as of the original date of his or her disability. E. Military Disability. No disability benefits shall be paid under this 1948 plan for a disability incurred as the result of an injury to the participant while he or she was in the armed services and receiving years of service credit under Section 4-4-1(44)(g). (Ord. 3907 1, 12-5-89; Code 1985 25-82) Sec. 4-24-13 Deferred retirement. A. Any participant meeting the requirements of subsection C of this section may elect to receive a deferred retirement benefit under this 1948 plan equal to his or her accrued benefit and payable in the form of a single life annuity. B. The annuity commencement date of any participant who is to receive his or her benefit pursuant to subsection A of this section shall be the date he or she reaches age sixty-five (65), or sixty (60) if he or she is a police officer or firefighter. C. To be eligible for electing a deferred retirement benefit under this section, a participant: 1. Must be credited with ten (10) or more years of service as of his or her severance date; 2. Must not be entitled to any benefits under Section 4-24- 10, 4-24-11 or 4-24-12; and Page 13 of 19
3. Must not have engaged in an act determined harmful to the city by the board and resulting in the participant s conviction of a felony, illegal manipulation of the books and records of the city, larceny, theft or embezzlement of assets. (Ord. 3907 1, 12-5-89; Code 1985 25-83) Sec. 4-24-14 Refund of employee contributions. A. Any participant whose employment with the city terminates, for any reason other than death, who is not entitled to any benefits under Section 4-24-10, 4-24-11 or 4-24-12, and who has not elected benefits under Section 4-24-13, shall receive an amount equal to the product of his or her total employee contributions times the applicable return multiple as determined under the table in Section 4-4-1(1), paid within two months of the date the termination of his or her employment occurs or is deemed to have occurred under subsection B of this section unless he or she earlier withdraws the employee contributions, becomes entitled to receive benefits under Section 4-24-10, 4-24-11 or 4-24-12, or elects benefits under Section 4-24-13. B. A participant during a leave of absence period shall be deemed to have terminated employment with the city if during such period he or she: 1. Retires under this 1948 plan; 2. Withdraws his or her employee contributions; or 3. Actually terminates employment with the city, or he or she does not return to active employment with the city as of the earlier of the date two years from the beginning of such leave of absence period or the end of such period. (Ord. 3907 1, 12-5-89; Code 1985 25-84) Sec. 4-24-15 Benefits upon reemployment. If a participant receiving benefits pursuant to this 1948 plan is reemployed after his or her annuity commencement date, no further benefit payments shall be made to that participant during his or her period of reemployment. Subsequent benefits and an appropriate annuity compensation date for that participant shall be determined based on his or her years of service determined under Section 4-4- 1(44), and in accordance with this chapter and Chapter 4-28, as Page 14 of 19
applicable; provided, however, subsequent benefits shall be reduced by the actuarial equivalent of any amounts distributed between his or her first annuity commencement date and his or her most recent reemployment commencement date, but not to an amount less than the annual plan benefit he or she was receiving immediately before his or her most recent reemployment commencement date. (Ord. 3907 1, 12-5-89; Code 1985 25-85) Article 4 Death Benefits Sec. 4-24-16 Line-of-duty death benefit. A. The beneficiaries described in subsection B of this section of a participant who dies as the direct and proximate result of an accident sustained by him or her as a participant, while in the actual performance of duties for the city without wilful negligence on his or her part, before or after he or she receives a line-of-duty disability benefit under Section 4-24- 12(A), shall receive a death benefit in accordance with Section 4-24-18 equal to the greater of sixty (60) percent of his or her average monthly compensation or his or her accrued benefit as of his or her date of death. B. The only beneficiaries of the benefit under subsection A of this section shall be the participant s spouse, if married to the participant at the time of his or her death, or, if no such spouse, his or her surviving children and handicapped children. (Ord. 3907 1, 12-5-89; Code 1985 25-90) Sec. 4-24-17 Other death benefit. A. The beneficiaries described in subsection B of this section of a participant who dies other than as described in Section 4-24- 16(A), and who has not elected deferred retirement under Section 4-24-13, shall receive a death benefit in accordance with Section 4-24-18 equal to: 1. The retirement benefit, if any, the participant was receiving as of his or her date of death; or 2. If the participant died before his or her annuity commencement date, but after he or she was credited with Page 15 of 19
five or more years of service or suffered an ordinary disability, the retirement benefit to which he or she was entitled under Sections 4-24-10, 4-24-11 or 4-24-12. B. The only beneficiaries of the benefit under subsection A of this section shall be the participant s spouse, if married to the participant at the time of his or her death, or, if no such spouse, his or her surviving children and handicapped children. C. No death benefit shall be paid under this 1948 plan for the death of a participant while he or she is in the armed services and receiving years of service credit under Section 4-4- 1(44)(g). (Ord. 3907 1, 12-5-89; Code 1985 25-91) Sec. 4-24-18 Distribution. A. Beneficiary Priority. The death benefit of Section 4-24-16 or 4-24-17 shall be paid to the surviving spouse until the spouse s death or remarriage before he or she attains age sixty-five (65). If there is no spouse, or upon the spouse s death or remarriage before the age sixty-five (65), the death benefit shall be made or shall continue to be paid to or on the behalf of the participant s surviving children and handicapped children, for as long as they are children or handicapped children; provided, however, any handicapped child shall be entitled to receive only fifty (50) percent of the benefit payment any other child of the participant shall be entitled to receive. If a surviving spouse reverts to single status by virtue of the end of the spouse s remarriage by death, divorce or annulment, upon approval by the board of the spouse s written application for reinstatement, such spouse shall be reinstated as the primary beneficiary as of the first day of the first month following such approval. No surviving spouse shall lose any benefits as a result of remarriage after attaining age sixty-five (65); provided, however, no surviving spouse of such spouse shall be entitled to any benefits from this 1948 plan as a result of such spouse s interest in a benefit payable under Section 4-24-16 or 4-24-17. Page 16 of 19
B. Payment After Refund. If a participant s employee contributions have been refunded under Section 4-24-14 before his or her date of death, credits against such refund shall be made in lieu of cash death benefit payments under Section 4-24-16 or 4-24-17 until such credits have fully offset such refund amount. (Ord. 3907 1, 12-5-89; Code 1985 25-93) Sec. 4-24-19 Residual benefits. Notwithstanding any other sections of this 1948 plan, a participant s estate shall be paid any excess of his or her total accumulated employee contributions, minus the total retirement and death benefit payments under the 1948 plan made to him or her, his or her spouse, his or her children, or any other designated beneficiary, following the death of all such individuals; provided, however, for any participant who was receiving a disability benefit under Section 4-24-12 upon his or her date of death, his or her total accumulated employee contributions shall be multiplied by the applicable return multiple as determined under the table in Section 4-4-1(1) before application of this section. (Ord. 3907 1, 12-5- 89; Code 1985 25-94) Sec. 4-24-20 Increase in monthly retirement allowance authorized. A. The board of administration of the retirement system is authorized to provide for increases in the monthly retirement allowance paid to pension members of the retirement system. (Annual Increases removed for printing) Page 17 of 19
Article 5 DROP Program Sec. 4-24-21 Deferred retirement option plan (DROP). A. DROP Overview. Except as provided in subsection F of this section, means an eligible employee (as defined in subsection B of this section), who has made the election described in subsection C of this section, will participate in the program and receive the benefit described in subsection D of this section, and receives distributions in the form described in subsection E of this section. B. Eligible employee means any employee who is a participant who has attained his or her normal retirement date and has at least twenty-five (25) years of service. C. Election. An eligible employee can make an irrevocable election to participate in the DROP program (as described in subsection D of this section), during December, March, June, or September, by completing an election form to participate in the DROP program for a maximum one-year, two-year, or three-year period beginning on the effective date of the election, and agreeing to retire no later than the end of his or her one-, two-, or three-year period of participation in the DROP program. The December election is effective on the next January 15th; the March election is effective on the next April 15th; the June election is effective on the next July 15th; and the September election is effective on the next October 15th. D. Participation and Benefits. During the one-year, two-year, or three-year period elected by the employee: 1. The employee s contributions and the city s contributions to the plan shall cease as of the effective date; 2. No additional years of service or compensation shall be considered (with the exception no possible ad hoc benefit increases granted by the city), so the employee s benefit under the plan is frozen (or fixed) as of the date his or her election is effective; Page 18 of 19
3. The employee s frozen benefit shall be calculated as though the employee retired on the effective date of his or her election, and a DROP account shall be established for such eligible employee; and 4. A DROP account shall be established for each electing employee. The DROP account shall be a recordkeeping account for the benefit of electing participants, which beginning on the effective date of the electing participant s election, shall be credited with an amount equal to the monthly pension benefit the electing participant would receive had he or she retired and begun receiving payments on the effective date. Interest shall be credited each calendar quarter on the average monthly balance in the DROP account during such quarter based on twenty-five (25) percent of the ninety (90) day treasury bill yield published in the last Wall Street Journal of such quarter. E. Distribution From DROP Program. As soon as is administratively feasible after the employee has ceased to participate in the DROP program, the city will begin to pay the employee his or her monthly benefit, and also, pay the employee in a lump-sum, the balance in his or her DROP account as of the end of the last quarter. The lump-sum payment of the DROP account may be rolled-over at the participant s direction. F. Exceptions and Limitations. In the event an employee who has elected to participate in the DROP program becomes disable or dies in the line of duty as defined in Section 4-4-1(27), 4-24-12(A) or 4-24-16, the participant s election shall be retroactively revoked and such participant or beneficiary shall be eligible for line of duty disability retirement or death benefits as defined in Section 4-24-12(A) or 4-24-16 as if the DROP program had never been elected. (Ord. 4548 2, 11-18-97; Code 1985 25-100) Page 19 of 19