House Bill hb0873

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    Florida House of Representatives - 2001                 HB 873

        By Representative Frankel






  1                      A bill to be entitled

  2         An act relating to the City of West Palm Beach,

  3         Palm Beach County; amending section 16 of

  4         chapter 24981, Laws of Florida, as amended,

  5         relating to the West Palm Beach Police Pension

  6         Fund; revising the provision for age and

  7         service requirements for retirement; revising

  8         the provisions for early retirement; revising

  9         the provisions of the share accounts related to

10         death of a member; revising the provisions of

11         the deferred retirement option plan; revising

12         the death benefit provisions; providing an

13         effective date.

14  

15  Be It Enacted by the Legislature of the State of Florida:

16  

17         Section 1.  Paragraphs (a) and (c) of subsection (8) of

18  section 16 of chapter 24981, Laws of Florida, 1947, as amended

19  by chapters 93-373 and 2000-410, Laws of Florida, are amended

20  to read:

21         Section 16.  West Palm Beach Police Pension Fund.--

22         (8)  Age and service requirements for retirement.--

23         (a)  Normal retirement.--Upon written application filed

24  with the board, any member may retire and receive the

25  applicable pension provided for in paragraph (9)(a), provided

26  that the member has attained at least age 50 and has at least

27  20 years of credited service, has attained age 55 and has at

28  least 10 years of credited service, or has at least 25 years

29  of continuous credited service, regardless of age.

30         (c)  Early retirement.--Any member may retire from the

31  service of the department as of the first day of any calendar

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    Florida House of Representatives - 2001                 HB 873

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  1  month which is prior to the member's normal retirement date

  2  but subsequent to the date as of which he or she has both

  3  attained the age of 50 and completed 10 years of credited

  4  service. In the event of early retirement, the monthly amount

  5  of retirement income payable shall be computed as described in

  6  paragraph (9)(a), taking into account his or her credited

  7  service to his or her date of actual retirement and his or her

  8  final average salary as of such date. The amount of retirement

  9  income shall be actuarially reduced to take into account the

10  member's younger age and earlier commencement of retirement

11  income benefits. In no event shall The early retirement

12  reduction shall be exceed 3 percent for each year by which the

13  member's age at retirement preceded the member's normal

14  retirement age.

15         Section 2.  Paragraph (g) of subsection (11) of section

16  16 of chapter 24981, Laws of Florida, 1947, as amended by

17  chapter 93-373, Laws of Florida, is amended to read:

18         Section 16.  West Palm Beach Police Pension Fund.--

19         (11)  Chapter 185 share accounts.--

20         (g)  Death of member.--If a member dies and is eligible

21  for benefits from the individual member account, the entire

22  balance of the individual member account shall be converted to

23  the name of the beneficiary designated in accordance with

24  paragraph (9)(e). The entire balance shall be paid out in a

25  lump sum to the beneficiary, at the discretion of the

26  beneficiary. If the designated beneficiary is the surviving

27  spouse, the account may remain with the Fund until the latest

28  period specified under subsection (30). These individual

29  accounts shall not be eligible for any further shares of the

30  chapter 185 moneys but shall be credited with interest

31  beneficiaries designated in accordance with paragraph (9)(e).

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  1  If a member fails to designate a beneficiary, or if the

  2  beneficiary predeceases the member, the entire balance shall

  3  be converted paid in a lump sum, in the following order, to

  4  the name or names of:

  5         1.  The member's surviving children on a pro rata

  6  basis; or

  7         2.  If no children are alive, to the member's spouse;

  8  or

  9         3.  If no spouse is alive, to the member's surviving

10  parents on a pro rata basis; or

11         4.  If none are alive, to the estate of the member

12  participant.

13  

14  The accounts which are converted to the names of the

15  beneficiaries shall have the right to name a successor

16  beneficiary. Any designated beneficiary, other than the

17  surviving spouse of the member, must take a distribution of

18  the entire share account balance by the end of 5 years

19  following the death of the member. Installment distributions

20  which begin in the calendar year of the member's death shall

21  be treated as complying with this 5-year distribution

22  requirement, even though the installments are not completed

23  within 5 years after the member's death.

24         Section 3.  Paragraphs (a)1. and (b)2. of subsection

25  (13) of section 16 of chapter 24981, Laws of Florida, 1947, as

26  amended by chapters 93-373, 99-483, and 2000-410, Laws of

27  Florida, are amended to read:

28         Section 16.  West Palm Beach Police Pension Fund.--

29         (13)  Deferred Retirement Option Plan (DROP).--

30         (a)  Eligibility to participate in the DROP.--

31  

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  1         1.  Any member who is eligible to receive a an early or

  2  normal retirement pension and who has either attained age 50,

  3  regardless of credited service, or completed between 25 and 30

  4  years of credited service, may participate in the DROP.

  5  Members shall elect to participate by applying to the Board of

  6  Trustees on a form provided for that purpose.

  7         (b)  Amounts payable upon election to participate in

  8  DROP.--

  9         2.  Payments to the DROP earn interest using the rate

10  of investment return earned on Pension Fund assets as reported

11  by the Fund's investment monitor during the 12-month period

12  ending each September 30th. The rate determined shall be the

13  rate reported to the Division of Retirement pursuant to part

14  VII of chapter 112, Florida Statutes. However, if a police

15  officer does not terminate employment at the end of

16  participation in the DROP, interest credits shall cease on the

17  current balance and on all future DROP deposits.

18         Section 4.  Paragraphs (a)1. and (c)1. of subsection

19  (17) of section 16 of chapter 24981, Laws of Florida, 1947, as

20  amended by chapter 93-373, Laws of Florida, are amended to

21  read:

22         Section 16.  West Palm Beach Police Pension Fund.--

23         (17)  Death benefits.--

24         (a)  Nonduty death while employed by the department; 5

25  years or more.--In the event a member who has 5 or more years

26  of credited service dies, and the board finds his or her death

27  to have occurred as the result of causes arising outside the

28  performance of his or her duties as a member, the following

29  applicable pensions shall be paid:

30         1.  A pension equal to two-thirds of the pension to

31  which he or she would have been entitled under subsection (9)

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    Florida House of Representatives - 2001                 HB 873

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  1  if he or she had retired the day preceding the date of his or

  2  her death, notwithstanding that he or she might not have

  3  satisfied a retirement age and service requirement stipulated

  4  in subsection (8), provided that the "widow's pension" shall

  5  not be less than one-seventh of the member's final average

  6  salary. Upon the surviving spouse's remarriage or death, the

  7  pension shall terminate. Any pension payable under this

  8  paragraph shall be subject to the provisions of subsection

  9  (18).

10         (c)  Death after retirement.--Upon the death of a

11  retirant, the following applicable pensions shall be paid,

12  subject to the provisions of subsection (18):

13         1.  The surviving spouse of the retirant shall receive

14  a pension of two-thirds of the retirant's pension, provided

15  that the retirant was receiving a pension under paragraph

16  (9)(a). Upon the surviving spouse's remarriage or death, the

17  pension shall terminate.

18         Section 5.  All special laws and parts of special laws,

19  ordinances, or regulations insofar as they are in conflict or

20  inconsistent with the provisions of this act are repealed.

21         Section 6.  This act shall take effect upon becoming a

22  law.

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