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POL Government Elected Officials Auditor Griffin-Valade Charter, Code & Policies City Code & Charter Online Code & Charter City Charter Chapter 5 FPDR Article 3 FPDR Two And Three Benefits
Article 3 FPDR Two And Three Benefits

Section 5-301. Member, Surviving Spouse, Dependent Minor Child.

(a)  Member.  Retirement, termination and disability benefits shall be paid to Members in accordance with this Chapter.  Members shall consist of those persons who are permanently appointed as sworn employees in the Bureau of Police or Fire, except as follows:

 

1.  Persons other than FPDR Three Members who participate in the Public Employee Retirement System of the State ofOregon, or will so participate after a waiting period, shall not be Members.

 

2.  The chief of the Bureau of Police or of the Bureau of Fire shall be a Member unless the terms of employment of such chief provide otherwise.

 

3.  Persons first sworn on or after January 1, 2013 shall be a Member upon completion of six (6) consecutive months of employment as a permanently appointed sworn employee in the Bureau of Police or Fire.

 

(b)  Active Member.  An Active Member is a person who is actively employed as a Member in the Bureau of Fire or Police and does not include a Member receiving disability or retirement benefits under this Chapter.

 

(c)  Surviving Spouse.  Death benefits shall be paid to the Surviving Spouse of a deceased FPDR Two or FPDR Three Member in accordance with this Chapter.  The Surviving Spouse is a person to whom the Member was legally married throughout the 12‑month period preceding death and from whom the Member was not judicially separated or divorced by interlocutory or final court decree at the time of death.  Death benefits paid to a Surviving Spouse of a FPDR Three member shall be adjusted in accordance with the offset provisions in this Chapter.

 

(d)  Dependent Minor Child.  Death benefits shall be paid to a Dependent Minor Child of a deceased FPDR Two and FPDR Three Member in accordance with this Chapter.  A Dependent Minor Child is a child, natural or adopted, of a FPDR Two or FPDR Three Member who is substantially supported by the FPDR Two or FPDR Three Member, the FPDR Two or FPDR Three Member's Surviving Spouse or the FPDR Two or FPDR Three Member's estate and is under 18 years of age and unmarried.  Death benefits paid to a Dependent Minor Child of a deceased FPDR Three member shall be adjusted in accordance with the offset provisions in this Chapter.

 

(e)  More Than One Status.  No person shall receive more than one survivor benefit under this Chapter at the same time, despite qualifying under both of Subsections (c) and (d), or qualifying under Subsection (c) or (d) with respect to more than one Member.  A person so qualifying shall receive in any month the greatest of the benefits payable for that month.


Section 5-302. Years of Service.

(a)  Generally.  A FPDR Two or FPDR Three Member shall be credited with Years of Service for periods of service as an Active Member.  One Year of Service shall be credited for each completed 12 months in such periods and 1/12th of a Year of Service shall be credited for each additional completed month.  A FPDR Two or FPDR Three Member shall not be credited with more than 30 Years of Service.  FPDR Three service is equivalent to FPDR Two service for purposes of determining eligibility for disability and death benefits.

 

(b)  Military Service.  A FPDR Two Member who leaves active duty in the Bureau of Fire or Police to enter the military service of the United States and returns to active duty in one of those Bureaus with reemployment rights protected by federal law shall be credited with Years of Service on the same basis as though the military service had been service described in Subsection (a), if the FPDR Two Member pays the FPDR Two Member contributions, as determined under rules established by the Board, for any period of such service preceding July 1, 1990.

 

(c)  Disability Service.  A FPDR Two Member receiving disability benefits under Section 5‑306 or 5‑307 shall be credited with Years of Service for the period such benefits are received.  The amount credited for each year shall be a fractional Year of Service equal to the FPDR Two Member's disability benefits received during the year divided by 75 percent of the Base Pay for the year for the position held by the FPDR Two Member at disability.


Section 5-303. Base Pay and Final Pay.

(a)  Base Pay.  As used in this Chapter, Base Pay means the base pay of the FPDR Two or FPDR Three Member's position in the Bureau of Fire or Police, including premium pay but excluding overtime and payments for unused vacation or sick leave.

 

(b)  Final Pay.  As used in this Chapter, Final Pay means the highest Base Pay received by the FPDR Two Member for any of the three consecutive 365-day, or 366-day in a leap year, periods where the most recent day is the last day for which pay was received in the calendar month preceding the calendar month in which the FPDR Two Member retires, dies, or otherwise terminates employment with the Bureau of Fire or Police.  Final Pay for any such period does not include any retroactive payments received by the Member for days preceding such 365-day or 366-day period but does include adjustments to the Base Pay of the FPDR Two Member’s position in the Bureau of Fire or Police that would have been received had the Member’s applicable collective bargaining agreement been in effect during such 365-day or 366-day period.

Final Pay for any FPDR Two Member who retires, dies or otherwise terminates employment with the Bureau of Fire or Police and has either received FPDR disability benefits or who  was employed in a part-time status by the Bureau of Fire or  Police during any such 365-day or 366-day period shall be based on the Base Pay for a full-time employee in the FPDR Two Member’s position in the Bureau of Fire or Police at the time of  retirement, death or termination from employment.


Section 5-304. Retirement Benefits.
 
(a)  Eligibility.  A FPDR Two Member shall be eligible to receive a retirement benefit upon termination of employment with the Bureau of Fire or Police on or after attaining age 50 if the FPDR Two Member has 25 or more Years of Service or on or after attaining age 55.  A FPDR Two Member receiving disability benefits under Section 5‑306 or 5‑307 shall be eligible to receive a retirement benefit at Disability Retirement Age, which shall be the earlier of the date the FPDR Two Member earns 30 Years of Service under Section 5‑302 or the date the FPDR Two Member attains social security retirement age.  For purposes of this subsection, social security retirement age means the retirement age provided in Section 216(l)(1) of the Social Security Act.
 
(b)  Amount of Benefit.  The retirement benefit shall be 2.2 percent of the FPDR Two Member's Final Pay times the FPDR Two Member's Years of Service.  The amount shall not exceed the maximum benefit permissible under Section 415 of the Internal Revenue Code of 1986 or any successor provision, and regulations issued thereunder, as they may be amended from time to time.  The provisions of such Section 415 or its successor, and such regulations, are incorporated by this reference.
 
(c)  Form of Benefit.  One‑twelfth of the retirement benefit shall be payable monthly for the life of the FPDR Two Member, commencing with the month following retirement.  The benefit shall be adjusted as provided in Section 5‑312.
 
(d)  FPDR Three retirement benefits shall be provided as set out in the Oregon Public Employees Retirement System, as amended, and funded in accordance with this Chapter.  The Fund shall pay the employee contribution required by the Public Employee Retirement System statutes.  A FPDR Three Member shall also be credited with a contribution of three percent (3%) of salary, as defined in the PERS statute and accompanying rule and regulations, to the Individual Account Plan, or successor defined contribution plan established under the Public Employees Retirement System.  If the City of Portland is required by law, or the Members elect to enter the federal Social Security system, the three percent (3%) of salary contribution to the Individual Account Plan, or successor defined contribution plan under the Public Employees Retirement System in this subsection shall cease as to those affected Members.

Section 5-305. Retirement Benefits Upon Termination.

(a)  Eligibility.  A FPDR Two Member whose employment with the Bureau of Fire or Police terminates after completing five Years of Service shall be eligible to receive the benefit on vested termination.  A FPDR Two Member whose employment with the Bureau of Fire or Police terminates after completing one‑half Year of Service and before completing five Years of Service shall be paid the benefit on unvested termination.  A FPDR Two Member who fails to return to work upon recovery from disability shall be treated as terminating employment on the date of recovery.

 

(b)  Amount of Benefit on Vested Termination.  The benefit on vested termination shall be the FPDR Two Member's retirement benefit accrued under Section 5‑304 to the date of the FPDR Two Member's termination of employment with the Bureau of Fire or Police based on Final Pay at such termination. 

 

(c)  Form of Benefit on Vested Termination.  The benefit on vested termination shall be payable monthly for the life of the FPDR Two Member commencing on Earliest Retirement Date which shall be the date the FPDR Two Member would have been eligible to receive a retirement benefit under Section 5‑304 assuming continued service as an Active Member.  The benefit shall be adjusted as provided in Section 5‑312.

 

(d)  Amount and Form of Benefit on Unvested Termination.  The benefit on unvested termination shall be a lump sum, payable at termination, equal to the sum of the following:

 

1.  The FPDR Two Member's contributions to the Fund prior to July 1, 1990, if any.

 

2.  Seven percent of the FPDR Two Member's Base Pay received after June 30, 1990, disregarding Base Pay received during the first six months after becoming a Member.

 

(e)  Reappointment.  A FPDR Two Member who has received the benefit on unvested termination and is later reappointed as an Active Member may repay to the Fund the amount received within 60 days after such reappointment and have Years of Service before the earlier termination restored.  If the Member does not make such repayment, the Member shall be a FPDR Three Member.


Section 5-306. Service Connected and Occupational Disability Benefits.

(a)  Interim Disability Benefits.  An Active Member may receive Interim Disability Benefits beginning with the payroll period when the Fund Administrator receives the required application for Service-Connected and Occupational  Disability benefits, including a written statement from the Member’s attending physician that the Member is unable to perform the Member’s required duties because of an injury or illness arising out of and in the course of the Member’s employment in the Bureau of Police or Fire.  Interim Disability Benefits may be payable until the claim is approved, denied or withdrawn.   If the Fund Administrator determines the Member is eligible for service-connected or occupational disability and approves the Member’s application for benefits, disability benefits under Subsections (b), (c) or (d) of this Section will be payable during the period the Member continues to be eligible.  If the application for benefits is denied or withdrawn by the Member, Interim Disability Benefits will cease immediately, and the Member shall repay the Fund the total amount of Interim Disability Benefits paid.  The Board of Trustees shall provide by Administrative Rule the method of payment and repayment of Interim Disability Benefits.

 

(b)  Eligibility for Service‑Connected Disability Benefit.  An Active Member shall be eligible for the service‑connected disability benefit when unable to perform the Member's required duties because of an injury or illness arising out of and in the course of the Member's employment in the Bureau of Police or Fire.  The Fund Administrator shall determine the existence of a disability and whether it arises out of and in the course of such employment.  A Member shall not be eligible for the service‑ connected disability benefit based on an injury suffered in assaults or combats which are not connected to the job assignment and which amount to a deviation from customary duties or incurred while engaging in, or as the result of engaging in, any recreational or social activities solely for the Member's personal pleasure.

 

(c)  A Member shall not be eligible for the service‑connected disability benefit on the basis of a condition of stress or mental disorder unless:

 

1.  The employment conditions producing the stress or mental disorder exist in a real and objective sense;

 

2.  The employment conditions producing the stress or mental disorder are conditions other than conditions generally inherent in police or fire employment or reasonable disciplinary, corrective, or job performance evaluation actions by the employer, or cessation of employment;

 

3.  There is a diagnosis of a mental or emotional disorder which is generally recognized in the medical or psychological community;

 

4.  There is clear and convincing evidence that the stress or mental disorder arose out of and in the course of employment as an Active Member; and

 

5.  The Member's employment conditions are the primary cause of the stress or mental disorder.

 

(d)  Eligibility for Occupational Disability Benefit.  An Active Member shall be eligible for the occupational disability benefit when unable to perform the Member's required duties because of heart disease, hernia of abdominal cavity or diaphragm, AIDS, AIDS‑related complex, tuberculosis, hepatitis B, or pneumonia (except terminal pneumonia).  A Member shall not be eligible for an occupational disability benefit because of heart disease unless the Member has five or more Years of Service when the disability arises.  The Fund Administrator shall deny an occupational disability benefit if the Fund Administrator determines, by a preponderance of the evidence, that the disability was not contracted as a result of service as a police officer or fire fighter.  No Member shall be eligible to receive a benefit for an occupational disability incurred while receiving benefits under Section 5‑307, unless such occupational disability is incurred within two years after such Member had commenced and continued to receive benefits under Section 5‑307, or unless such occupational disability is a recurrence of an occupational disability which became disabling and was compensated for under this Section.

 

(e)  Amount of Benefits.  During the period the Member continues to be eligible under Subsection (a), (b), (c) or (d) benefits shall be paid as follows:

 

1.  During the first year from the date of disability, the Member shall be paid 75 percent of the Member's rate of Base Pay in effect at disability, reduced by 50 percent of any wages earned in other employment during the period the benefit is payable.

 

2.  The Member shall continue to be paid the benefit described in Paragraph 1 after one year from the date of disability until the earliest date on which the Member is both medically stationary and capable of Substantial Gainful Activity.  If not medically stationary sooner, the Member shall be treated as medically stationary for purposes of this Section on the fourth anniversary of the date of disability, regardless of the Member's condition.  The Member is capable of Substantial Gainful Activity if qualified, physically and by education and experience, to pursue employment with earnings equal to or exceeding one‑third of the Member's rate of Base Pay at disability.

 

3.  After the date described in Paragraph 2, the Member shall be paid 50 percent of the Member's rate of Base Pay at disability, reduced by 25 percent of any wages earned in other employment during the same period.

 

4.  The minimum benefit shall be 25 percent of the Member's rate of Base Pay, regardless of the amount of wages earned in other employment.

 

5.  The Fund Administrator may suspend or reduce the benefit if the Member does not cooperate in treatment of the disability or in vocational rehabilitation or does not pursue other employment.

 

6.  Notwithstanding any other provision of the Chapter or the City Charter, a disabled Member receiving or eligible to receive Service-Connected and Occupational Disability Benefits under Section 5-306, or Non-Service Connected Disability Benefits under Section 5-307, shall not receive any such benefit for periods of time during which the member is incarcerated subsequent to and for the conviction of a crime.  One-half of such benefit, however, shall be payable to the Member's spouse, if not incarcerated, or Member's minor children, during such periods of incarceration.

 

(f)  Form of Benefits.  The service‑connected and occupational disability benefits shall be paid on the same schedule as the Member’s regular payroll during the first year from the date of disability and paid monthly thereafter.  The Board may adopt administrative rules which allow exceptions to the Form of Benefits in accordance with this Subsection.  The benefits shall be adjusted to reflect changes in the rate of Base Pay of the position held by the Member at disability. 

 

(g)  Service-connected or occupational disability benefits to a FPDR Two Member shall cease at Disability Retirement Age under Subsection 5-304(a) unless the Fund Administrator determines that the service-connected or occupational disability is temporary.  If the service-connected or occupational disability is determined by the Fund Administrator to be temporary, a FPDR Two Member shall be eligible to receive disability benefits for a period of two (2) years from the date of such disability or the Disability Retirement Age, whichever is later.  At the end of such period, the disabled Member shall be entitled to receive only a retirement benefit.  Service-connected or occupational disability benefits to a FPDR Three Member shall cease at Normal Retirement Age under PERS unless the Fund Administrator determines that service-connected or occupational disability is temporary.  If the service-connected or occupational disability is determined by the Fund Administrator to be temporary, a FPDR Three Member shall be eligible to receive disability benefits for a period of two (2) years from the date of such disability or the Normal Retirement Age, whichever is later.

 

(h)  Medical and Hospital Expenses. 

 

1.  For members who are retired as of January 1, 2007, in addition to the benefits described above, a Member with a service‑connected or occupational injury or illness shall be reimbursed from the Fund for reasonable medical and hospital expenses arising from the injury or illness, as determined by the Fund Administrator.  Such reimbursement shall be allowed for expenses incurred while serving as an Active Member, while the FPDR Two Member's disability benefits under this Section continue and, if the FPDR Two Member continues to receive such benefits until Disability Retirement Age while retirement benefits under Section 5‑304 continue to the FPDR Two Member.  A FPDR Three Member shall receive a reimbursement for such reasonable medical and hospital expenses while serving as an Active Member, while the FPDR Three Member’s disability benefit under this Section continue and, if the FPDR Three Member continues to receive such benefits until Normal Retirement Age under PERS while retirement benefits continue under PERS to the FPDR Three Member.  The Fund Administrator may limit reimbursement to particular medical and hospital service providers with which it has made fee arrangements and may join in the purchase of services and administration of claims for other employees of the City ofPortland.

 

2.  For members who are not retired before January 1, 2007, in addition to the benefits described above, a Member with a service-connected or occupational disability accepted before retirement shall be reimbursed from the Fund for reasonable medical and hospital expenses arising from the injury or illness, as determined by the Fund Administrator.  The Fund Administrator may limit reimbursement to particular medical and hospital service providers with which it has made fee arrangements and may join in the purchase of services and administration of claims for other employees of the City ofPortland.

 

3.  If the Fund Administrator determines by a preponderance of the evidence that a claim under Subsection 2 from a retired Member,

 

a.  is for medical or hospital expenses related to an injury or illness that was based upon fraud, misrepresentation, an omission, or illegal activity by the Member, or

 

b.  is for medical or hospital expenses related to an injury or illness that was accepted in good faith, in a case not involving fraud, misrepresentation, an omission, or illegal activity by the Member, and within two (2) years of the initial acceptance the Administrator obtains evidence that the claim is not a service-connected or occupational injury or the Fund is not responsible for the injury or illness, or

 

c.  that the medical or hospital expenses are not related to the service-connected injury or illness,

 

the Fund Administrator shall deny the claim for medical or hospital expenses pursuant to Subsection 2.  Nothing in this Subsection shall limit the Fund’s ability to recover costs, fees, and other remedies for other benefits previously received by the Member based upon fraud, misrepresentation, an omission, or illegal activity.

 

(i)  Waiver of Other Remedies.  By applying for and accepting service‑connected or occupational disability benefits, a Member waives any right to recover any other compensation or damages from the City ofPortlandas a result of such disability.

 

(j)    Offset.  The monthly amount of service-connected or occupational disability benefits under this Charter shall be reduced by any monthly disability benefit payment made by PERS up to the amount provided in Subsection (e) of this Section. The Fund Administrator shall reduce any service-connected or occupational disability benefit payable under this Chapter in the amount determined to be necessary by the Fund Administrator to meet the limitation imposed by this Subsection. 


Section 5-307. Nonservice-Connected Disability Benefits.

(a)  Eligibility.  An Active Member shall be eligible for the nonservice‑connected disability benefit if the Member has 10 or more Years of Service and is unable to perform the Member's required duties because of an injury or illness that does not qualify as service‑connected or occupational under Subsection 5‑306(a), (b), (c) or (d).  No Member shall receive benefits under this Section as a result of the following:  willful injuries; injuries sustained while, or illness contracted as a result of, willfully doing an unlawful act; or weakness, illness or disability resulting directly or indirectly from the habitual excessive use of or addiction to use of alcoholic beverages or illegal drugs.

 

(b)  Amount of Benefit.  The benefit shall be 50 percent of the Member's Base Pay at disability, reduced by 50 percent of any wages the Member earns in other employment during the period the benefit is payable.  The Fund Administrator may reduce or terminate the benefit if the Member does not cooperate in treatment of the disability or in vocational rehabilitation or does not pursue other employment.

 

(c)  Form of Benefit.  The nonservice‑connected disability benefit shall be payable monthly from the date of disability.  The Board may adopt administrative rules which allow execeptions to the Form of Benefit in accordance with this Subsection.  The amount shall be adjusted to reflect changes in the rate of Base Pay of the position held by the Member at disability.  The benefit shall cease when the Member reaches Disability Retirement Age under Subsection 5‑304(a).

 

(d)  Nonservice-connected disability benefits to a FPDR Two Member shall cease at Disability Retirement Age under Subsection 5-304(a) unless the Fund Administrator determines that the nonservice-connected disability is temporary.  If the nonservice-connected disability is determined by the Fund Administrator to be temporary, a FPDR Two Member shall be eligible to receive disability benefits for a period of two (2) years from the date of such disability or the Disability Retirement Age, whichever is later. At the end of such period, the disabled FPDR Two Member shall be entitled to receive only a retirement benefit.  Nonservice-connected disability benefits to a FPDR Three Member shall cease at Normal Retirement Age under PERS unless the Fund Administrator determines that nonservice-connected disability is temporary.  If the nonservice-connected disability is determined by the Fund Administrator to be temporary, a FPDR Three Member shall be eligible to receive disability benefits for a period of two (2) years from the date of such disability or the Normal Retirement Age, whichever is later.

 

(e)   Offset.  The monthly amount of nonservice-connected disability benefits under this Charter shall be reduced by any monthly disability benefit payment made by PERS up to the amount provided in Subsection (b) of this section. The Fund Administrator shall reduce any nonservice-connected disability benefit payable under this Chapter in the amount determined to be necessary by the Fund Administrator to meet the limitation imposed by this Subsection. 


Section 5-308. Benefits on Service-Connected or Occupational Death Before Retirement.

(a)  Eligibility.  A Surviving Spouse of a Member who dies before retirement as a result of an illness or injury that qualifies as service‑connected or occupational under Subsection 5‑306(a), (b), (c) or (d) shall be eligible to receive a death benefit.  A Dependent Minor Child of such a Member shall be eligible to receive the benefit if the Member has no Surviving Spouse.  If the Member has more than one Dependent Minor Child, the benefit shall be divided equally among them.  If the Member has a Surviving Spouse and one or more Dependent Minor Children of a former marriage, one‑half the benefit shall be paid to the Surviving Spouse.  The other half shall be paid to the Dependent Minor Children until the last ceases to be minor and then paid to the Surviving Spouse.

 

(b)  Amount of Benefit.  The benefit on service‑connected or occupational death before retirement shall be 75 percent of the Member's rate of Base Pay at death until the earliest date on which the Member would have been eligible for retirement benefits under Section 5‑304 if the Member had survived and continued in service as an Active Member.  After such date, the benefit shall be 50 percent of the Member's Final Pay, as adjusted as provided in Section 5-312.

 

(c)  Form of Benefit.  A Surviving Spouse shall be paid the benefit monthly starting with the month following the Member's death and continuing for the spouse's life.  A Dependent Minor Child shall be paid the benefit until ceasing to be a minor.  The benefit shall be adjusted as provided in Section 5‑312.

 

(d)  Offset.  The monthly amount of service-connected or occupational death benefits under this Charter shall be reduced by any monthly death benefit payment made by PERS up to the amount provided in Subsection (b) of this section. The Fund Administrator shall reduce any service-connected or occupational death benefit payable under this Chapter in the amount determined to be necessary by the Fund Administrator to meet the limitation imposed by this Subsection. 


Section 5-309. Benefits on Nonservice-Connected Death Before Retirement.

(a)  Eligibility.  A Surviving Spouse of a Member who has one or more Years of Service and dies before retirement not as a result of a cause described in Subsection 5‑308(a), shall be eligible to receive a death benefit.  A Dependent Minor Child of such a Member shall be eligible to receive the benefit if the Member has no Surviving Spouse or if the spouse is under age 55.  If the Member has more than one Dependent Minor Child, the benefit shall be divided equally among them.  If the Member has a Surviving Spouse and one or more Dependent Minor Children of a former marriage, one‑half the benefit shall be paid to the Surviving Spouse.  The other half shall be paid to the Dependent Minor Children until the last ceases to be minor and then paid to the Surviving Spouse.

 

(b)  Amount on Death Before 5 Years of Service.  If the Member had less than 5 Years of Service, the benefit on nonservice‑connected death before retirement shall be a lump sum equal to the amount of the Member's contributions as provided in Paragraph 5‑305(d)1, less any benefits paid to the Member under this Chapter.

 

(c)  Amount on Death After 5 Years of Service.  If the Member had 5 or more Years of Service, the benefit on nonservice‑connected death before retirement shall be an annuity equal to 50 percent of the Member's accrued retirement benefit under Section 5‑304, based on 2.6 percent of the Member's Final Pay instead of 2.2 percent.

 

(d)  Form of Benefit.  A benefit payable under Subsection (b) shall be paid in a lump sum.  A benefit payable under Subsection (c) to a Surviving Spouse shall be paid monthly commencing with the month after the Member's death if the spouse is age 55 or over and otherwise with the month after the spouse attains age 55 and shall continue for the spouse's life.  A benefit payable under Subsection (c) to a Dependent Minor Child shall be paid monthly commencing with the month after the Member's death and shall continue until the child ceases to be a minor.  A benefit payable under subsection (c) shall be adjusted as provided in Section 5‑312.

 

(e)  Offset.  The monthly amount of nonservice connected death benefits under this Charter shall be reduced by any monthly death benefit payment made by PERS up to the amount provided in Subsection (b) and (c) of this section. The Fund Administrator shall reduce any nonservice connected death benefit payable under this Chapter in the amount determined to be necessary by the Fund Administrator to meet the limitation imposed by this subsection. 


Section 5-310. Benefits on Death After Retirement.
 
(a)  Eligibility.  The Surviving Spouse of a FPDR Two Member who dies after retirement shall be eligible to receive a death benefit, except as provided in subsection (b).  The Dependent Minor Child of the FPDR Two Member shall be eligible to receive the benefit if the Member has no Surviving Spouse.  If the Member has more than one Dependent Minor Child, the benefit shall be divided equally among them.  If the FPDR Two Member has a Surviving Spouse and one or more Dependent Minor Children of a former marriage, one‑half the benefit shall be paid to the Surviving Spouse.  The other half shall be paid to the Dependent Minor Children until the last ceases to be a minor and then paid to the Surviving Spouse.  Eligibility for death benefits after retirement shall be based on status as a Surviving Spouse or Dependent Minor Child at the date of the FPDR Two Member's death and without regard to a person's status at the time of the FPDR Two Member's retirement.
 
(b)  Certain Disabled Members.  If the FPDR Two Member retired after a nonservice‑connected disability and had less than 10 Years of Service, including service recognized by the Public Employee Retirement System of the State of Oregon for accrual of benefits or as a waiting period before such accrual begins, no death benefit shall be paid.
 
(c)  Amount of Benefit.  The benefit on death after retirement shall be 100 percent of the Member's retirement benefit.  A FPDR Two Member may make an irrevocable election at the time of retirement under rules established by the Board to be covered by a reduced death benefit and receive a retirement benefit under Section 5‑304 based on a larger percentage of Final Pay as follows:
1.  With a death benefit equal to 100 percent of the FPDR Two Member's retirement benefit, the FPDR Two Member's retirement benefit shall be based on 2.2 percent of Final Pay.
 
2.  With a death benefit equal to 75 percent of the FPDR Two Member's retirement benefit, the FPDR Two Member's retirement benefit shall be based on 2.4 percent of Final Pay.
 
3.   With a death benefit equal to 50 percent of the FPDR Two Member's retirement benefit, the FPDR Two Member's retirement benefit shall be based on 2.6 percent of Final Pay.
 
4.   With a death benefit equal to 25 percent of the FPDR Two Member's retirement benefit, the FPDR Two Member's retirement benefit shall be based on 2.8 percent of Final Pay.
(d)  No Spouse or Children.  If a FPDR Two Member has no Surviving Spouse or Dependent Minor Child at death, no death benefit shall be paid except for the benefit based on return of FPDR Two Member contributions provided in Section 5‑311, if any.  In no event shall a FPDR Two Member receive a retirement benefit based on more than 2.8 percent of Final Pay regardless of not having a Surviving Spouse or Dependent Minor Child.

(e)  Form of Benefit.  The benefit shall be paid monthly commencing with the month after death and shall continue until the later of the death of the Surviving Spouse or the date the last Dependent Minor Child ceases to be a minor.  The benefit shall be adjusted as provided in Section 5‑312.

Section 5-311. Return of Member Contributions.
 
If a FPDR Two Member's contributions under Paragraph 5‑305(d)1 exceed the total of all benefits paid under this Chapter to the FPDR Two Member and to the FPDR Two Member's Surviving Spouse and Dependent Minor Children at the time the last of such benefits ceases to be paid, the excess shall be paid as an additional benefit.  The additional benefit shall be paid in a lump sum to the person who was formerly a Dependent Minor Child of the FPDR Two Member receiving benefits under this Chapter or, if there is more than one such person, divided equally among them.  If there are no such persons, the additional benefit shall be paid to the estate of the FPDR Two Member's Surviving Spouse.  If there was no Surviving Spouse, the additional benefit shall be paid to the FPDR Two Member's estate.

Section 5-312. Benefit Adjustments.
 
Benefits payable under this Chapter shall be adjusted, where so indicated in the Section of this Article in which each benefit is described, in accordance with this Section after payment commences.  The Board shall determine the amount and timing of such adjustments in its discretion, except the percentage rate of change shall not exceed the percentage rate applied to retirement benefits payable to police and fire employees by the Public Employee Retirement System of the State of Oregon.

Section 5-313. Limits on Time and Form of Payment.
 
(a)  Payment to FPDR Two Members.  Payment of benefits to a FPDR Two Member shall comply with the following restrictions:
1.  Payment shall begin no later than the April 1 following the calendar year in which the FPDR Two Member attains age 70 1/2 or retires, whichever is later.
 
2.  Payment shall be made over a period no longer than the lives or joint life expectancy of the FPDR Two Member and any designated beneficiary.
 
3.  The benefit form shall be limited so that the benefit payable after death is incidental to the plan's primary purpose of providing retirement benefits.
(b)  Payment to Beneficiaries.  Payment of death benefits shall begin no later than one year after the FPDR Two Member's death and shall be made over a period no longer than the beneficiary's life or life expectancy.
 
(c)  Applicable Regulations.  The restrictions of this Section shall be complied with by payments in accordance with Treasury Regulation Sections 1.401(a)(9)‑1 and 1.401(a)(9)‑2, or any successor provisions, as they may be amended from time to time.  This Section shall override any inconsistent distribution options provided in this Chapter.

Section 5-314. Funeral Benefit.
 
A funeral benefit shall be paid on death of any Active Member or Member actively receiving disability or retirement benefits.  The funeral benefit shall be one‑half of the monthly salary at the date of death payable to the civil service classification of fire fighter if the Member was employed in the Bureau of Fire, or of police officer if the Member was employed in the Bureau of Police.  If such classifications cease to exist, the benefit shall be based on the salary of comparable successor positions.  The funeral benefit shall be paid to the Member's Surviving Spouse or, if there is no Surviving Spouse, to the Member's estate.