House Bill 1471er
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    1999 Legislature                      HB 1471, First Engrossed
  1
  2         An act relating to the City of West Palm Beach,
  3         Palm Beach County; amending chapter 24981, Laws
  4         of Florida, 1947, as amended, relating to the
  5         West Palm Beach Firefighters Pension Fund;
  6         revising definitions; revising provisions
  7         relating to service pensions, supplemental
  8         pension distribution, DROP, and lump sum
  9         payments of small retirement income; providing
10         for rollovers from qualified plans; providing
11         for actuarial assumptions; providing an
12         effective date.
13
14  Be It Enacted by the Legislature of the State of Florida:
15
16         Section 1.  Subparagraph 1. of paragraph (a) of
17  subsection (1) of section 17 of chapter 24981, Laws of
18  Florida, 1947, as amended by chapter 93-374, Laws of Florida,
19  is amended to read:
20         Section 17.  West Palm Beach Firefighters Pension
21  Fund.--
22         (1)  Creation of Fund.--There is hereby created a
23  special fund for the Fire Department of the City of West Palm
24  Beach to be known as the West Palm Beach Firefighters Pension
25  Fund.  All assets of every description held in the name of the
26  West Palm Beach Firemen's Relief and Pension Fund and in the
27  name of the West Palm Beach Firefighters Pension Fund have
28  been and shall continue to be combined.
29         (a)  Definitions.--The following words or phrases, as
30  used in this act, shall have the following meanings, unless a
31  different meaning is clearly indicated by the context:
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    1999 Legislature                      HB 1471, First Engrossed
  1         1.  "Actuarial equivalent value," "actuarial
  2  equivalence," or "single sum value" means the stated
  3  determination using an interest rate of 8.25 7 percent per
  4  year and the 1983 1971 Group Annuity Mortality Table for
  5  males.
  6         Section 2.  Subparagraph 17. of paragraph (a) of
  7  subsection (1) of section 17 of chapter 24981, Laws of
  8  Florida, 1947, as amended by chapter 96-527, Laws of Florida,
  9  is amended to read:
10         Section 17.  West Palm Beach Firefighters Pension
11  Fund.--
12         (1)  Creation of Fund.--There is hereby created a
13  special fund for the Fire Department of the City of West Palm
14  Beach to be known as the West Palm Beach Firefighters Pension
15  Fund.  All assets of every description held in the name of the
16  West Palm Beach Firemen's Relief and Pension Fund and in the
17  name of the West Palm Beach Firefighters Pension Fund have
18  been and shall continue to be combined.
19         (a)  Definitions.--The following words or phrases, as
20  used in this act, shall have the following meanings, unless a
21  different meaning is clearly indicated by the context:
22         17.  "Service," "credited service," or "service credit"
23  means the total number of years, and fractional parts of
24  years, of employment of any member in the employ of the
25  Department, omitting intervening years and fractional parts of
26  years of service when the member was not employed by the City.
27  However, no member will receive credit for years or fractional
28  parts of years of service for which the member has withdrawn
29  his or her contributions to the Fund, unless the member repays
30  into the Fund the contributions withdrawn, with interest,
31  within 60 months 90 days after reemployment.  Further, a
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    1999 Legislature                      HB 1471, First Engrossed
  1  member may voluntarily leave his or her contributions in the
  2  Fund for a period of 5 years after leaving the employ of the
  3  Department, pending the possibility of his or her being
  4  rehired by the Department and remaining employed for a period
  5  of not less than 3 years, without losing credit for the time
  6  he or she has participated actively as a firefighter.  If he
  7  or she does not remain employed for a period of at least 3
  8  years as a firefighter with the Department upon reemployment,
  9  within 5 years his or her contributions shall be returned
10  without interest in accordance with paragraph (5)(i).  In
11  determining the aggregate number of years of service of any
12  member, the time spent in the military service of the United
13  States or United States Merchant Marine by the member on leave
14  of absence for such reason shall be added to the years of
15  service provided such time shall not exceed 5 years. Further,
16  to receive credit for such service:
17         a.  The member must return to employment as a
18  firefighter of the City within 1 year from the date of release
19  from such active service; and
20         b.  The member must contribute into the Fund the same
21  sum which he or she would have contributed if he or she had
22  remained a member.  Any payment to the plan described in this
23  paragraph shall be made during the period beginning with the
24  date of reemployment and whose duration is three times the
25  period of the member's service in the military, not to exceed
26  5 years.
27         Section 3.  Paragraph (h) of subsection (1) of section
28  17 of chapter 24981, Laws of Florida, 1947, as amended by
29  chapter 93-374, Laws of Florida, is amended to read:
30         Section 17.  West Palm Beach Firefighters Pension
31  Fund.--
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    1999 Legislature                      HB 1471, First Engrossed
  1         (1)  Creation of Fund.--There is hereby created a
  2  special fund for the Fire Department of the City of West Palm
  3  Beach to be known as the West Palm Beach Firefighters Pension
  4  Fund.  All assets of every description held in the name of the
  5  West Palm Beach Firemen's Relief and Pension Fund and in the
  6  name of the West Palm Beach Firefighters Pension Fund have
  7  been and shall continue to be combined.
  8         (h)  Membership.--All firefighters and all who hold a
  9  position of firefighter in the employ of the Department shall
10  be members in the Fund.  All firefighters, including the
11  chief, who were in the employ of the Department as of April
12  30, 1959, shall be given credit for service rendered in the
13  employ of the Department prior to May 1, 1959. New members to
14  the fund are required to undergo a physical examination for
15  purposes of determining preexisting conditions. This physical
16  examination shall be conducted in conjunction with the City's
17  postoffer, preemployment physical examination. The Board's
18  Medical Director will review the results of this physical
19  examination and provide notice to the Board and the member of
20  any abnormal findings of the examination. This physical
21  examination will be used for purposes of establishing a
22  physical profile of the member for determining preexisting
23  conditions and presumptive illnesses as provided for in
24  subsection (6).  After review, if further physical examination
25  is required, such examination will be conducted at Board
26  expense.
27         Section 4.  Paragraph (b) of subsection (4) of section
28  17 of chapter 24981, Laws of Florida, 1947, as amended by
29  chapter 96-527, Laws of Florida, is amended to read:
30         Section 17.  West Palm Beach Firefighters Pension
31  Fund.--
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    1999 Legislature                      HB 1471, First Engrossed
  1         (4)  Custodian of funds.--All moneys and securities of
  2  the Fund may be deposited with the cash management coordinator
  3  of the City, acting in a ministerial capacity only, who shall
  4  be bonded and shall be liable in the same manner and to the
  5  same extent as he or she is liable for the safekeeping of
  6  funds for the City.  However, any funds and securities so
  7  deposited with the cash management coordinator shall be kept
  8  in a separate fund by the cash management coordinator or
  9  clearly identified as funds and securities of the Fund.  In
10  lieu thereof, the Board shall deposit the funds and securities
11  in a qualified public depository designated by the Board.  The
12  cash management coordinator or other depository shall receive
13  all moneys due said Fund from all sources whatsoever.  All tax
14  revenue received pursuant to the provisions of chapter 175,
15  Florida Statutes, shall be deposited into the Fund no more
16  than 5 days after receipt.  Member contributions withheld by
17  the City on behalf of a member shall be deposited into the
18  Fund at least monthly.
19         (b)  Investment of moneys.--The Board shall have the
20  power and authority to invest and reinvest the moneys of the
21  Fund, and to hold, purchase, sell, assign, transfer, and
22  dispose of any securities and investments held in said Fund.
23  The aim of the investment policies shall be to preserve the
24  integrity and security of Fund principal, to maintain a
25  balanced investment portfolio, to maintain and enhance the
26  value of Fund principal, and to secure the maximum total
27  return on investments that is consonant with safety of
28  principal, provided that such investments and reinvestments
29  shall be limited to the following:
30         1.  Direct obligations of the United States Government
31  or any agency thereof, and debentures and other evidences of
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    1999 Legislature                      HB 1471, First Engrossed
  1  indebtedness which are fully guaranteed by the United States
  2  Government or any agency thereof for the payment of principal
  3  and interest.
  4         2.  Direct obligations of the State of Florida.
  5         3.  In debt securities, preferred and common stocks and
  6  mutual fund shares subject to the limitations set forth in
  7  this section.
  8         4.  In time or savings accounts of a national bank, a
  9  state bank insured by the Bank Insurance Fund, a savings and
10  loan association associations to the extent that deposits are
11  guaranteed by the Savings Association Insurance Fund which is
12  administered by the Federal Deposit Insurance Corporation, or
13  a state or federally chartered credit union whose share
14  accounts are insured by the National Credit Union Share
15  Insurance Fund United States Government or any agency thereof.
16         5.  Of the total fund principal in any pension or
17  retirement system, including the amounts deposited in banks or
18  associations, the total thereof invested in preferred stocks
19  shall not aggregate more than 5 percent, and the total amount
20  thereof invested in common stocks and mutual fund shares shall
21  not aggregate more than 70 percent.  Percentages shall be
22  based on market value at the end of each reporting period
23  (September 30).
24         6.  The following minimum standards shall govern the
25  eligibility of securities for purchase as investments, except
26  that 30 percent of the stocks at cost value shall not be
27  subject to the standards contained in paragraph b and c:
28         a.  All corporate and association securities and mutual
29  fund shares shall be issued by a corporation or other legal
30  person incorporated or otherwise organized within the United
31
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  1  States and domiciled therein to the extent required by
  2  s.175.071(1)(b), Florida Statutes.
  3         b.  Not more than 10 percent of the total fund
  4  principal at market value shall be invested in any issuing
  5  company other than obligations of the United States or an
  6  agency thereof.
  7         c.  All bonds, stocks, or other evidence of
  8  indebtedness issued or guaranteed by a corporation shall be
  9  listed on any one or more of the recognized national stock
10  exchanges and, in the case of bonds only, shall hold a rating
11  in one of the four three highest classifications by a major
12  rating service.  Said bonds and preferred stocks that are
13  convertible into common stocks shall be considered common
14  stocks and the purchase of same shall be limited by the
15  provisions of subparagraph 5.
16         d.  The Board shall be required to engage the services
17  of professional investment counsel to assist and advise the
18  trustees in the performance of their duties.
19         e.  At least once every 3 years, the Board shall retain
20  an independent consultant professionally qualified to evaluate
21  the performance of its professional money manager or
22  investment counsel.  The independent consultant shall make
23  recommendations to the Board regarding the selection of money
24  managers for the next investment term.  These recommendations
25  shall be considered by the Board at its next regularly
26  scheduled meeting.
27         Section 5.  Paragraph (a) of subsection (5) of section
28  17 of chapter 24981, Laws of Florida, 1947, as amended by
29  chapter 93-374, Laws of Florida, is amended to read:
30         Section 17.  West Palm Beach Firefighters Pension
31  Fund.--
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    1999 Legislature                      HB 1471, First Engrossed
  1         (5)  Service pension.--
  2         (a)  Normal retirement.--
  3         1.  Any member whose entry or reentry in the employment
  4  of the Department occurs after April 30, 1959, who has
  5  attained age 50 years, and who has acquired 15 or more years
  6  of service credit shall, upon application filed with the
  7  Board, be retired and shall be entitled to a monthly pension
  8  for the remainder of his or her life equal to the greater of
  9  the following, as applicable:
10         a.  For a member who is actively employed by the
11  department on or after October 1, 1998, or who is part of the
12  DROP on or after October 1, 1998, 3 percent of his or her
13  final average salary multiplied by the number of years, and
14  fraction of a year, of service credit earned from and after
15  October 1, 1982, plus 2 1/2 percent of his or her final
16  average salary multiplied by the number of years, and fraction
17  of a year, of service credit earned prior to October 1, 1982,
18  provided that in no case shall the total monthly pension
19  payable to any such member exceed 78 percent of his or her
20  final average salary;
21         b.a.  For members who terminated employment, retired,
22  or entered the DROP prior to October 1, 1998, except as
23  provided in sub-subparagraph a., 2 1/2 Two and one-half
24  percent of his or her final average salary multiplied by the
25  number of years, and fraction of a year, of service credit,
26  provided that in no case shall the total monthly pension
27  payable to any member exceed 65 percent of his or her final
28  average salary; or
29         c.b.  The sum of the following:
30         (I)  Two and one-half percent of final average salary
31  multiplied by the number of years, and fraction of a year, of
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    1999 Legislature                      HB 1471, First Engrossed
  1  service credit to a maximum of 26 years of service, and 2
  2  percent of his or her final average salary multiplied by the
  3  number of years, and fraction of a year, in excess of 26 years
  4  of service, for all years of service earned through September
  5  30, 1988; and
  6         (II)  Two percent of final average salary multiplied by
  7  the number of years, and fraction of a year, of service credit
  8  earned on and after October 1, 1988.
  9         2.  Any member whose entry or reentry in the employment
10  of the Department occurs after April 30, 1959, and prior to
11  July 1, 1977, may elect upon his or her retirement to receive
12  a pension under the provisions of this subparagraph in lieu of
13  subparagraph 1., as follows:  Any member who has attained age
14  55 years and who has acquired 20 or more years of service
15  credit shall, upon his or her application filed with the
16  Board, be retired and, when so retired, shall be entitled to a
17  monthly pension for the remainder of his or her life equal to
18  the greater of the following:
19         a.  Two percent of final average salary multiplied by
20  the number of years, and fraction of a year, of service credit
21  not to exceed 25 years, provided that in no case shall the
22  total monthly pension payable to any member exceed 65 percent
23  of his or her final average salary; or
24         b.  The sum of the following:
25         (I)  Two and one-half percent of final average salary
26  multiplied by the number of years, and fraction of a year, of
27  service credit to a maximum of 26 years of service, and 2
28  percent of final average salary multiplied by the number of
29  years and fraction of a year in excess of 26 years of service,
30  for all years of service earned through September 30, 1988;
31  and
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  1         (II)  Two percent of final average salary multiplied by
  2  the number of years, and fraction of a year, of service credit
  3  earned on and after October 1, 1988.
  4
  5  The 3-percent benefit accrual factor in sub-subparagraph 1.a.
  6  is contingent on and subject to the adoption and maintenance
  7  of the assumptions set forth in subsection (23). If such
  8  assumptions are modified by legislative, judicial, or
  9  administrative agency action, and the modification results in
10  increased City contributions to the Pension Fund, the
11  3-percent benefit accrual factor in sub-subparagraph 1.a.
12  shall be automatically decreased prospectively, from the date
13  of the action, to completely offset the increase in City
14  contributions. However, in no event shall the benefit accrual
15  factor in sub-subparagraph 1.a. be adjusted below 2 1/2
16  percent. To the extent that the benefit accrual factor is less
17  than 3 percent, the supplemental pension distribution
18  calculation under paragraph (d) shall be adjusted for
19  employees who retire on or after October 1, 1998, and those
20  employees who were members of the DROP on October 1, 1998.
21  The adjustment shall be to decrease the minimum return of 8.25
22  percent needed to afford the supplemental pension
23  distribution, when the amount of the reduction is zero if an
24  employee has been credited with 16 or more years with the
25  3-percent benefit accrual factor or 1.25 percent if an
26  employee has been credited with no more than a 2 1/2 percent
27  benefit accrual factor. If an employee has been credited with
28  less than 16 years at the 3-percent benefit accrual factor,
29  then the accumulated amount over 2 1/2 percent for each year
30  of service divided by .5 percent divided by 16 subtracted from
31  1 multiplied by 1.25 percent is the reduction from 8.25
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    1999 Legislature                      HB 1471, First Engrossed
  1  percent.  An example of the calculation of the minimum return
  2  for the supplemental pension distribution as described above
  3  is set forth in Appendix B to the collective bargaining
  4  agreement between the City of West Palm Beach and the West
  5  Palm Beach Association of Firefighters, Local 727-IAFF,
  6  October 1, 1998 - September 30, 2001.
  7         Section 6.  Subparagraph 1. of paragraph (d) of
  8  subsection (5) of section 17 of chapter 24981, Laws of
  9  Florida, 1947, as amended by chapter 96-527, Laws of Florida,
10  is amended to read:
11         Section 17.  West Palm Beach Firefighters Pension
12  Fund.--
13         (5)  Service pension.--
14         (d)  Supplemental pension distribution.--
15         1.a.  The actuary for the Pension Fund shall determine
16  the rate of investment return earned on Pension Fund assets
17  during the 12-month period ending each September 30th.  The
18  rate determined shall be the rate reported in the most recent
19  actuarial report submitted pursuant to part VII of chapter
20  112, Florida Statutes.
21         b.  The actuary for the Pension Fund shall determine
22  the actuarial present value, as of each September 30th, of
23  future pension payments to eligible persons, as described in
24  subparagraph 3., who are then being paid a pension.  The
25  actuarial present values shall be calculated using an interest
26  rate of 7 percent per year compounded yearly and a mortality
27  table as approved by the Board of Trustees and as used in the
28  most recent actuarial report submitted pursuant to part VII of
29  chapter 112, Florida Statutes.
30         c.  A distribution amount shall be determined as of
31  each September 30th. For distributions made after October 1,
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    1999 Legislature                      HB 1471, First Engrossed
  1  1998, there shall be two different calculations to determine
  2  the distribution amount. For those employees who retire on and
  3  after October 1, 1998, or who are part of the DROP on or after
  4  October 1, 1998, the distribution amount shall be equal to
  5  factor (i) for each applicable member multiplied by the sum of
  6  factor (ii) and the positive difference, if any, between
  7  factor (iii) and 8.25 percent.  For those employees who have
  8  retired before October 1, 1998, except as provided in this
  9  sub-subparagraph, the distribution amount shall be equal to
10  factor (i) for each applicable member multiplied by the sum of
11  factor (ii) and the positive difference, if any, between
12  factor (iii) and 7 percent. For purposes of both calculations,
13  factor (i) is the actuarial present value determined in
14  sub-subparagraph 1.b. for the respective group. Factor (ii) is
15  one-half of the investment return rate in sub-subparagraph
16  1.a. in excess of 9 percent. Factor (iii) is the rate of
17  investment return in sub-subparagraph 1.a., not to exceed 9
18  percent. The distribution amount shall not exceed accumulated
19  net actuarial experience from all pension liabilities and
20  assets. If the net actuarial experience is favorable,
21  cumulatively, commencing with the experience for the year
22  ended September 30, 1985, after offset for all prior
23  supplemental distributions, the supplemental distribution may
24  be made.  If the net actuarial experience is unfavorable,
25  cumulatively, commencing with the experience for the year
26  ended September 30, 1985, after offset for all prior
27  supplemental distributions, no supplemental distribution may
28  be made, and the city must amortize the loss until it is
29  offset by cumulative favorable experience.
30
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    1999 Legislature                      HB 1471, First Engrossed
  1  If an actuarial report submitted as provided in this paragraph
  2  is not state accepted prior to distribution, and if a
  3  deficiency to the Pension Fund results, the deficiency shall
  4  be made up from the next available supplemental pension
  5  distribution, unless sooner made up by agreement between the
  6  Board of Trustees and the city.  No such deficiency shall be
  7  permitted to continue for a period greater than 3 years from
  8  the date of payment of the supplemental pension distribution
  9  which resulted in the deficiency.
10         Section 7.  Subparagraph 5. of paragraph (d) of
11  subsection (5) of section 17 of chapter 24981, Laws of
12  Florida, 1947, as amended by chapter 93-374, Laws of Florida,
13  is amended to read:
14         Section 17.  West Palm Beach Firefighters Pension
15  Fund.--
16         (5)  Service pension.--
17         (d)  Supplemental pension distribution.--
18         5.  Each supplemental pension distribution amount shall
19  be allocated among the eligible persons in the proportion that
20  an eligible person's supplemental pension distribution points
21  bears to the aggregate amount of supplemental pension
22  distribution points of all eligible persons.  An eligible
23  person shall be credited with supplemental pension
24  distribution points as follows:
25         a.  Three and eighty-five hundredths of a point
26  multiplied by the service credit of the member at time of
27  retirement or prior to death, however, in the computation of
28  the supplemental pension distribution due the in-line-of-duty
29  pensioner the maximum service credit of 26 years shall be
30  used.
31         b.  Maximum service credit shall be 26 years.
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    1999 Legislature                      HB 1471, First Engrossed
  1         c.  Allocations for surviving spouses and surviving
  2  dependent children who are eligible to receive supplemental
  3  pension distributions shall be 75 percent of the years of
  4  service earned by the pensioner.  Allocations for duty death
  5  beneficiaries (surviving spouse and surviving children) shall
  6  be based upon 75 percent of 26 years of service.
  7         Section 8.  Subparagraphs 1. and 4. of paragraph (k) of
  8  subsection (5) of section 17 of chapter 24981, Laws of
  9  Florida, 1947, as amended by chapter 97-327, Laws of Florida,
10  are amended to read:
11         Section 17.  West Palm Beach Firefighters Pension
12  Fund.--
13         (5)  Service pension.--
14         (k)  Deferred Retirement Option Plan (DROP).--
15         1.  Eligibility to participate in the DROP.--
16         a.  Any member who is eligible to receive an early or
17  normal retirement pension may participate in the DROP. Members
18  shall elect to participate by applying to the Board of
19  Trustees on a form provided for that purpose.
20         b.  Election to participate shall be forfeited if not
21  exercised within the first 35 33 years of combined credited
22  service. However, participation in the first years of
23  enactment will be extended to those members with 34 years of
24  service in 1997.
25         c.  A member shall not participate in the DROP beyond
26  the time of attaining 37 35 years of service and the total
27  years of participation in the DROP shall not exceed 5 3 years.
28  For example:
29         (I)  Members with 32 years of credited service at time
30  of entry shall only participate for 5 3 years.
31
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    1999 Legislature                      HB 1471, First Engrossed
  1         (II)  Members with 33 years of credited service at time
  2  of entry shall only participate for 4 2 years.
  3         (III)  Members with 34 years of credited service at the
  4  time of entry shall only participate for 3 years.
  5         (IV)  Members with 35 years of credited service at the
  6  time of entry shall only participate for 2 years.
  7         d.  Upon a member's election to participate in the
  8  DROP, he or she shall cease to be a member and shall no longer
  9  accrue any benefits under the pension fund. For all fund
10  purposes, the member becomes a retirant. The amount of
11  credited service and final average salary shall freeze as of
12  the date of entry into the DROP.
13         4.  After-tax contributions to the DROP.--
14         a.  A member may make after-tax contributions to the
15  DROP in the first calendar year only. The maximum amount which
16  may be contributed is the lesser of:
17         (I)  The IRS Section 415(c) limit.
18         (II)  The amount allowable under IRC Section 401(m).
19         b.  After-tax contributions to the DROP will earn
20  interest in the same manner as set forth in sub-subparagraph
21  2.b.
22         c.  Distributions to members or their beneficiaries of
23  after-tax contributions may be withdrawn at any time on or
24  after termination of employment. However, payments must be
25  made at least as rapidly as required under subsection (19).
26         d.  Loans shall not be made against after-tax
27  contributions.
28         Section 9.  Subsection (16) of section 17 of chapter
29  24981, Laws of Florida, 1947, as amended by chapter 93-374,
30  Laws of Florida, is amended to read:
31
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    1999 Legislature                      HB 1471, First Engrossed
  1         Section 17.  West Palm Beach Firefighters Pension
  2  Fund.--
  3         (16)  Lump Sum Payment of Small Retirement
  4  Income.--Notwithstanding any provision of the Fund to the
  5  contrary, if the monthly retirement income payable to any
  6  person entitled to benefits hereunder is less than $30 or if
  7  the single sum value of the accrued retirement income is less
  8  than $5,000 $3,500 as of the date of retirement or termination
  9  of service, whichever is applicable, the Board of Trustees, in
10  the exercise of its discretion, may specify that the actuarial
11  equivalent of such retirement income be paid in lump sum.
12         Section 10.  Subsections (22) and (23) are added to
13  section 17 of chapter 24981, Laws of Florida, as amended by
14  chapter 95-478, Laws of Florida, to read:
15         Section 17.  West Palm Beach Firefighters Pension
16  Fund.--
17         (22)  Rollovers from qualified plans.--A member may
18  roll over all or part of his or her assets in another
19  qualified plan to his or her chapter 175 share account
20  provided all of the following requirements are met:
21         (a)  Some or all of the amount distributed from the
22  other plan is rolled over to this plan no later than the 60th
23  day after distribution was made from the plan or, if
24  distributions are made in installments, no later than the 60th
25  day after the last distribution was made.
26         (b)  The amount rolled over to the share account does
27  not include any amounts contributed by the member to the plan
28  on a posttax basis.
29         (c)  The rollover is made in cash.
30         (d)  The member certifies that the distribution is
31  eligible for a rollover.
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CODING: Words stricken are deletions; words underlined are additions.
    ENROLLED
    1999 Legislature                      HB 1471, First Engrossed
  1         (e)  Amounts which the trustee accepts as a rollover to
  2  this fund shall, along with any earnings allocated to the
  3  trustee, be fully vested at all times.
  4
  5  The rollover may also be made to this plan from an individual
  6  retirement account qualified under Code Section 408 when the
  7  individual retirement account was merely used as a conduit for
  8  funds from another qualified plan and the rollover is made in
  9  accordance with the rules provided in paragraphs (a) through
10  (e).  Amounts rolled over may be segregated from other fund
11  assets. The trustee shall separately account for gains,
12  losses, and administrative expenses on these rollovers as
13  provided for in paragraphs (5)(d) and (j). In addition, the
14  fund may accept the direct transfer of a member's benefits
15  from another qualified retirement plan. The fund shall account
16  for direct transfers in the same manner as a rollover and
17  shall obtain certification from the member that the amounts
18  are eligible for a rollover or direct transfer to this fund.
19         (23)  Actuarial assumptions.--The following actuarial
20  assumptions shall be used for all purposes in connection with
21  this fund, effective October 1, 1998:
22         (a)  The period for amortizing current, future, and
23  past actuarial gains or losses shall be 20 years.
24         (b)  The assumed investment rate of return shall be
25  8.25 percent.
26         Section 11.  This act shall take effect October 1,
27  1999.
28
29
30
31
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