§ 46-360. Payments and interest.

(a)

Payment shall be made into the employee's DROP account as if the employee had terminated employment in the city in an amount determined by the employee's selection of options 1 and 2 as enumerated in section 46-322(j).

(b)

An employee's account in the DROP program shall earn or lose interest based upon the actual earnings of the plan for the preceding year.

(c)

All interest shall be credited to the employee's DROP account at the end of the DROP period.

(d)

Upon termination with the city, an employee has the option of receiving payment within 45 days of the member requesting payment or deferring payment until a time not later than the latest date authorized by section 401(a)(9) of the Internal Revenue Code.

(e)

Payments from the DROP may be received as a lump sum, installment payment or annuity; provided, however, that at all times the DROP shall be subject to the provisions of the Internal Revenue Code. No payments shall be distributed to a DROP participant once the DROP account has been exhausted by the participant.

(f)

No payment may be made from the DROP until the employee actually separates from service with the city.

(Code 1986, § 5.050(e), (f), (h)—(k); Ord. No. 01-09, § 1, 8-7-2001; Ord. No. 01-15, § 2, 9-18-2001)