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House Bill 1390 |
House Author: Turner |
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Effective: See below |
Senate Sponsor: Jackson, Mike |
House Bill 1390 amends the law relating to a firefighter's relief and retirement fund in certain municipalities. The bill revises provisions relating to the Firefighters' Relief and Retirement Fund Board of Trustees and the deferred retirement option plan (DROP) and establishes a post-retirement option plan (PROP). The bill sets forth eligibility requirements for participation in the PROP, and provides that a PROP participant may elect to have all or part of a monthly service pension or other taxable benefits, less certain group medical insurance costs, credited to the PROP account. The bill requires that a participant's PROP account be credited with hypothetical earnings in the same manner as that of a member's DROP account. A participant may stop the amounts being credited to his or her PROP account and elect to resume receiving monthly service pension or other taxable benefits at any time. The bill allows a PROP participant to receive partial payments from his or her PROP account and allows a member's surviving spouse to receive a single lump-sum payment of partial payments, subject to certain requirements. The bill provides that if a PROP participant dies prior to full distribution of the PROP account, the balance shall be distributed in the same manner as a DROP account.
The provisions of House Bill 1390 take effect September 1, 2007, except the provisions establishing the post-retirement option plan, which take effect October 1, 2007.