CODING: Words stricken are deletions; words underlined are additions.



                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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  4  ______________________________________________________________

  5                                           ORIGINAL STAMP BELOW

  6

  7

  8

  9

10  ______________________________________________________________

11  The Committee on Local Government & Veterans Affairs offered

12  the following:

13

14         Amendment 

15  Remove everything after the enacting clause

16

17  and insert:

18         Section 1.  Section 17 of chapter 24981, Laws of

19  Florida, 1947, as amended, is amended and readopted to read:

20         (Substantial rewording of section. See

21         ch. 93-374, Laws of Florida, as amended

22         by chapters 95-476, 96-527, 97-327,

23         99-456, and 2000-409, Laws of Florida,

24         for present text.)

25         Section 17.  West Palm Beach Firefighters Pension

26  Fund.--

27         (1)  Creation of fund.--There is hereby created a

28  special fund for the Fire Department of the City of West Palm

29  Beach to be known as the West Palm Beach Firefighters Pension

30  Fund. All assets of every description held in the name of the

31  West Palm Beach Firemen's Relief and Pension Fund and in the

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  name of the West Palm Beach Firefighters Pension Fund have

  2  been and shall continue to be combined.

  3         (a)  Definitions.--The following words or phrases, as

  4  used in this act, shall have the following meanings, unless a

  5  different meaning is clearly indicated by the context:

  6         1.  "Actuarial equivalent value," "actuarial

  7  equivalence," or "single sum value" means the stated

  8  determination using an interest rate of 8.25 percent per year

  9  and the 1983 Group Annuity Mortality Table for males.

10         2.  "Beneficiary" means any person who is not at

11  retirement but who is entitled to receive a benefit from the

12  West Palm Beach Firefighters Pension Fund or the West Palm

13  Beach Firemen's Relief and Pension Fund, as applicable.

14         3.  "Board of Trustees" or "Board" means the Board of

15  Trustees provided for in this act.

16         4.  "City" means the City of West Palm Beach, Florida.

17         5.  "Department" means the Fire Department of the City.

18         6.  "Enrolled actuary" means an actuary who is enrolled

19  under Subtitle C of Title III of the Employee Retirement

20  Income Security Act of 1974 and who is a member of the Society

21  of Actuaries or the American Academy of Actuaries.

22         7.  "Final average salary" means the average of the

23  monthly salary paid a member in the 3 best years of

24  employment.

25         8.  "Firefighter" means any person employed in the

26  Department who is certified as a firefighter as a condition of

27  employment in accordance with the provisions of section

28  633.35, Florida Statutes.

29         9.  "Fund" or "Pension Fund" means the West Palm Beach

30  Firefighters Pension Fund or the West Palm Beach Firemen's

31  Relief and Pension Fund, as applicable.

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1         10.  "Member" means any person who is included in the

  2  membership of the Fund in accordance with paragraph (h).

  3         11.  "Pension" means a monthly amount payable from the

  4  Fund throughout the future life of a person, or for a limited

  5  period of time, as provided in this act.

  6         12.  "Qualified health professional" means a person

  7  duly and regularly engaged in the practice of his or her

  8  profession who holds a professional degree from a university

  9  or college and has had special professional training or skill

10  regarding the physical or mental condition, disability, or

11  lack thereof, upon which he or she is to present evidence to

12  the Board.

13         13.  "Qualified public depository" means any bank or

14  savings association organized and existing under the laws of

15  Florida and any bank or savings association organized under

16  the laws of the United States that has its principal place of

17  business in Florida, or has a branch office which is

18  authorized under the laws of Florida or the United States to

19  receive deposits in Florida, that meets all of the

20  requirements of chapter 280, Florida Statutes, and that has

21  been designated by the Treasurer of the State of Florida as a

22  qualified public depository.

23         14.  "Retirant" or "retiree" means any member who

24  retires with a pension payable from the Fund.

25         15.  "Retirement" means a member's withdrawal from City

26  employment with a pension payable from the Fund.

27         16.  "Salary" means:

28         a.  The fixed monthly compensation paid to a

29  firefighter and shall include those items that have been

30  included as compensation in accordance with past practice.

31  However, the term shall not be construed to include lump sum

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  payments for accumulated leave.

  2         b.  On and after October 1, 2001, "salary," for the

  3  purpose of pension contributions, shall be defined as payments

  4  made to a firefighter by the City for: regular hours worked;

  5  step-up pay; longevity pay; all authorized leave time, which

  6  includes compensatory time used, earned personal leave used,

  7  emergency leave used, sick leave used, sick leave pay bank

  8  used, vacation time used, holiday time used, emergency leave,

  9  bereavement leave, and administrative leave; certification

10  pay, which includes paramedic, hazardous material technician,

11  special operations, dive rescue, fire service instructor, fire

12  inspector, and SWAT certification pay; fire inspector standby

13  pay; educational bonus incentive; pay received from the City

14  during military training; and sick leave conversion when such

15  leave is converted during the course of active employment. The

16  definition of "salary" specifically excludes any lump sum

17  payments for accumulated leave such as that received upon

18  final payoff. Employees who are specifically excluded from

19  bargaining unit recognition as set forth in Article 2, but who

20  are members of the West Palm Beach Firefighters Pension Fund,

21  shall continue to make contributions on management incentive

22  benefits. This definition of compensation shall not include

23  any duty employment that is performed for other than the City

24  of West Palm Beach per Article 31, Salary Plan.

25         17.  "Service," "credited service," or "service credit"

26  means the total number of years, and fractional parts of

27  years, of employment of any member in the employ of the

28  Department, omitting intervening years and fractional parts of

29  years of service when the member was not employed by the City.

30  However, no member shall receive credit for years, or

31  fractional parts of years, of service for which the member has

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  withdrawn his or her contributions to the Fund, unless the

  2  member repays into the Fund the contributions withdrawn, with

  3  interest, within 60 months after reemployment. Further, a

  4  member may voluntarily leave his or her contributions in the

  5  Fund for a period of 5 years after leaving the employ of the

  6  Department, pending the possibility of his or her being

  7  rehired by the Department and remaining employed for a period

  8  of not less than 3 years, without losing credit for the time

  9  he or she has participated actively as a firefighter. If he or

10  she does not remain employed for a period of at least 3 years

11  as a firefighter with the Department upon reemployment, within

12  5 years his or her contributions shall be returned without

13  interest in accordance with paragraph (5)(i). In determining

14  the aggregate number of years of service of any member, the

15  time spent in the military service of the United States or

16  United States Merchant Marine by the member on leave of

17  absence from the Department for such reason shall be added to

18  the years of service, provided such time shall not exceed 5

19  years. Further, to receive credit for such service the member

20  must return to employment as a firefighter of the City within

21  1 year after the date of release from such active service.

22         (b) Gender and number.--The masculine gender includes

23  the feminine, and words of the singular with respect to

24  persons shall include the plural and vice versa.

25         (c) Board of Trustees created.--There is hereby created

26  a Board of Trustees, which shall be solely responsible for

27  administering the West Palm Beach Firefighters Pension Fund

28  and the West Palm Beach Firemen's Relief and Pension Fund. The

29  Board shall be a legal entity, with the power to bring and

30  defend lawsuits of every kind, nature, and description, and

31  shall be independent of the City to the extent required to

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  accomplish the intent, requirements, and responsibilities

  2  provided for in this act and applicable law. The Board shall

  3  consist of five trustees, as follows:

  4         1.  Two legal residents of the City, who shall be

  5  appointed by the City. Each resident-trustee shall serve as a

  6  trustee for a period of 2 years, unless sooner replaced by the

  7  City, at whose pleasure he or she shall serve, and may succeed

  8  himself or herself as trustee.

  9         2.  Two full-time firefighters shall be elected by a

10  majority of the firefighters who are members of the Fund.

11  Elections shall be held under such reasonable rules and

12  regulations as the Board shall from time to time adopt. Each

13  member-trustee shall serve as a trustee for a period of 2

14  years, unless he or she sooner ceases to be a firefighter in

15  the employ of the Department, whereupon the members shall

16  choose a successor in the same manner as the original

17  appointment. Each member-trustee may succeed himself or

18  herself as trustee.

19         3.  A fifth trustee shall be chosen by a majority of

20  the other four trustees. This fifth person's name shall be

21  submitted to the City, which shall, as a ministerial duty,

22  appoint such person to the Board as a fifth trustee. The fifth

23  person shall serve as trustee for a period of 2 years, and may

24  succeed himself or herself as trustee.

25         (d)  Board vacancy; how filled.--In the event a trustee

26  provided for in subparagraph (c)2. ceases to be a firefighter

27  in the employ of the Department, such trustee shall be

28  considered to have resigned from the Board. In the event a

29  trustee provided for in subparagraph (c)2. shall resign, be

30  removed, or become ineligible to serve as a trustee, the Board

31  shall, by resolution, declare the office of trustee vacated as

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  of the date of adoption of said resolution. If such a vacancy

  2  occurs in the office of trustee within 90 days of the next

  3  succeeding election for trustee, the vacancy shall be filled

  4  at the next regular election for the next term; otherwise, the

  5  vacancy shall be filled for the unexpired portion of the term

  6  by the members in the same manner as an original appointment.

  7  In the event a trustee provided for in subparagraph (c)1. or

  8  subparagraph (c)3. shall resign, be removed, or become

  9  ineligible to serve as a trustee, the Board shall, by

10  resolution, declare the office of trustee vacated as of the

11  date of adoption of said resolution. A successor for the

12  unexpired portion of the term shall be chosen in the same

13  manner as an original appointment.

14         (e)  Board meetings; quorum; procedures.--The Board

15  shall hold meetings regularly, at least once in each quarter

16  year, and shall designate the time and place thereof. At any

17  meeting of the Board, three trustees shall constitute a

18  quorum. Each trustee shall be entitled to one vote on each

19  question before the Board and at least three concurring votes

20  shall be required for a decision by the Board at any of its

21  meetings. The Board shall adopt its own rules of procedure and

22  shall keep a record of its proceedings. All public records of

23  the Fund shall be kept and maintained as required by law. All

24  meetings of the Board shall be open to the public and shall be

25  held as required by law.

26         (f)  Board chair.--The Board shall elect a chair from

27  among the trustees.

28         (g)  Board secretary.--The Board shall elect a

29  secretary from among the trustees. The secretary shall keep a

30  complete minute book of the actions, proceedings, and hearings

31  of the Board.

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1         (h)  Membership.--All firefighters and all who hold a

  2  position of firefighter in the employ of the Department shall

  3  be members in the Fund. All firefighters, including the chief,

  4  who were in the employ of the Department as of April 30, 1959,

  5  shall be given credit for service rendered in the employ of

  6  the Department prior to May 1, 1959. New members to the Fund

  7  are required to undergo a physical examination for purposes of

  8  determining preexisting conditions. This physical examination

  9  shall be conducted in conjunction with the City's postoffer,

10  preemployment physical examination. The Board's medical

11  director shall review the results of this physical examination

12  and provide notice to the Board and the member of any abnormal

13  findings of the examination. This physical examination will be

14  used for the purposes of establishing a physical profile of

15  the member for determining preexisting conditions and

16  presumptive illnesses as provided for in subsection (6). After

17  review, if further physical examination is required, such

18  examination shall be conducted at Board expense.

19         (i)  Compensation.--The trustees of the Fund shall not

20  receive any compensation for their services as such, but may

21  receive expenses and per diem as provided by law.

22         (2)  Professional and clerical services.--

23         (a)  Pension administrator.--The pension administrator

24  of the Fund shall be designated by the Board and shall carry

25  out its orders and directions.

26         (b)  Legal counsel.--The City Attorney shall give

27  advice to the Board in all matters pertaining to its duties in

28  the administration of the Fund whenever requested, shall

29  represent and defend the Board as its attorney in all suits

30  and actions at law or in equity that may be brought against

31  it, and shall bring all suits and actions in its behalf that

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  may be required or determined by the Board. However, if the

  2  Board so elects, it may employ independent legal counsel at

  3  the Fund's expense for the purposes set forth in this act.

  4         (c)  Actuary.--The Board shall designate an enrolled

  5  actuary, who shall be its technical advisor and who shall

  6  perform such actuarial services as are required.

  7         (d)  Certified public accountant.--The Board shall

  8  employ, at its expense, a certified public accountant to

  9  conduct an independent audit of the Fund. The certified public

10  accountant shall be independent of the Board and the City.

11         (e)  Additional professional, technical, or other

12  services.--The Board shall have the authority to employ such

13  professional, technical, or other advisors as required to

14  carry out the provisions of this act.

15         (3)  Sources of revenue.--The financing of the Fund

16  shall consist of the following sources of revenue:

17         (a)  Taxes of insurance companies.--The moneys returned

18  to the City as provided by chapter 175, Florida Statutes,

19  shall be used to fund the share account benefit described in

20  paragraph (5)(j). The City shall not opt out of participation

21  in chapter 175, Florida Statutes, or any similar statutory

22  enactment unless exigent circumstances exist, such as the

23  bankruptcy of the City or changes or amendments to the statute

24  regarding extra benefits by the Legislature. If any statutory

25  changes are made by the Legislature, the City and the Board

26  may renegotiate the impact of such changes, if necessary.

27         (b)  Member contributions.--The member shall contribute

28  6.45 percent of his or her salary to the Fund, which shall be

29  deducted each pay period from the salary of each member in the

30  Department. Effective the first full payroll period after

31  January 1, 2002, the member shall contribute 7.85 percent of

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  his or her salary to the Fund, which shall be deducted each

  2  pay period from the salary of each member in the Department.

  3  Effective the first full payroll period after October 1, 2002,

  4  the member shall contribute 8.85 percent of his or her salary

  5  to the Fund, which shall be deducted each pay period from the

  6  salary of each member in the Department. Effective the first

  7  full payroll period after October 1, 2003, the member shall

  8  contribute 9.85 percent of his or her salary to the Fund,

  9  which shall be deducted each pay period from the salary of

10  each member in the Department. The contribution increase over

11  6.85 percent is to be used to purchase eligibility for

12  participation in the postretirement health insurance benefits.

13         (c)  City contributions.--The City shall contribute to

14  the Fund annually an amount which, together with the

15  contributions from the members and other income sources as

16  authorized by law, will be sufficient to meet the normal cost

17  of the Fund and to fund the actuarial deficiency over a period

18  of not more than 40 years, provided that the net increase, if

19  any, in unfunded liability of the Fund arising from

20  significant amendments or other changes shall be amortized

21  within 30 plan years.

22         (d)  Gifts, etc.--All gifts, bequests, and devises when

23  donated for the Fund.

24         (e)  Interest from deposits.--All accretions to the

25  Fund by way of interest or dividends on bank deposits or

26  otherwise.

27         (f)  Other sources.--All other sources of income now or

28  hereafter authorized by law for the augmentation of the Fund.

29         (4)  Custodian of funds.--All moneys and securities of

30  the Fund may be deposited with the cash management coordinator

31  of the City, acting in a ministerial capacity only, who shall

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

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  1  be bonded and shall be liable in the same manner and to the

  2  same extent as he or she is liable for the safekeeping of

  3  funds for the City. However, any funds and securities so

  4  deposited with the cash management coordinator shall be kept

  5  in a separate fund by the cash management coordinator or

  6  clearly identified as funds and securities of the Fund. In

  7  lieu thereof, the Board shall deposit the funds and securities

  8  in a qualified public depository designated by the Board. The

  9  cash management coordinator or other depository shall receive

10  all moneys due said Fund from all sources whatsoever. All tax

11  revenue received pursuant to the provisions of chapter 175,

12  Florida Statutes, shall be deposited into the Fund no more

13  than 5 days after receipt. Member contributions withheld by

14  the City on behalf of a member shall be deposited into the

15  Fund immediately.

16         (a)  Disbursements from the Fund.--The Board may issue

17  drafts upon the Fund pursuant to this act and rules and

18  regulations prescribed by the Board, provided that such drafts

19  shall be issued in accordance with generally accepted

20  accounting procedures, American Institute of Certified Public

21  Accountants guidelines, and rules of the State of Florida

22  Auditor General. All such drafts shall be consecutively

23  numbered, signed by the chair and secretary, and each draft

24  shall, upon its face, state the purpose for which it is drawn.

25  For this purpose, the chair and secretary shall be bonded. The

26  Board shall retain such drafts when paid, as permanent

27  vouchers for disbursements made, and no moneys shall be

28  otherwise drawn from the Fund. Payments from the Fund shall be

29  made only upon a specific or general motion or resolution

30  previously adopted by the Board authorizing such payment or

31  payments.

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1         (b)  Investment of moneys.--The Board shall have the

  2  power and authority to invest and reinvest the moneys of the

  3  Fund, and to hold, purchase, sell, assign, transfer, and

  4  dispose of any securities and investments held in said Fund.

  5  The aim of the investment policies shall be to preserve the

  6  integrity and security of Fund principal, to maintain a

  7  balanced investment portfolio, to maintain and enhance the

  8  value of Fund principal, and to secure the maximum total

  9  return on investments that is consonant with safety of

10  principal, provided that such investments and reinvestments

11  shall be limited to the following:

12         1.  Direct obligations of the United States Government

13  or any agency thereof and debentures and other evidences of

14  indebtedness which are fully guaranteed by the United States

15  Government or any agency thereof for the payment of principal

16  and interest.

17         2.  Direct obligations of the State of Florida.

18         3.  In debt securities, preferred and common stocks and

19  mutual fund shares subject to the limitations set forth in

20  this section.

21         4.  In time or savings accounts of a national bank, a

22  state bank insured by the Bank Insurance Fund, a savings and

23  loan association to the extent that deposits are guaranteed by

24  the Savings Association Insurance Fund which is administered

25  by the Federal Deposit Insurance Corporation, or a state or

26  federally chartered credit union whose share accounts are

27  insured by the National Credit Union Share Insurance Fund.

28         5.  Of the total Fund principal in the pension or

29  retirement system, including the amounts deposited in banks or

30  associations, the total thereof invested in preferred stocks

31  shall not aggregate more than 5 percent, and the total amount

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  thereof invested in common stocks and mutual fund shares shall

  2  not aggregate more than 70 percent. Percentages shall be based

  3  on market value at the end of each reporting period (September

  4  30).

  5         6.  The following minimum standards shall govern the

  6  eligibility of securities for purchase as investments:

  7         a.  All corporate and association securities and mutual

  8  fund shares shall be issued by a corporation or other legal

  9  person incorporated or otherwise organized within the United

10  States and domiciled therein to the extent required by section

11  175.071(1)(b), Florida Statutes.

12         b.  Not more than 10 percent of the total fund

13  principal at market value shall be invested in any one issuing

14  company other than obligations of the United States or an

15  agency thereof.

16         c.  All bonds, stocks, or other evidence of

17  indebtedness issued or guaranteed by a corporation shall be

18  listed on any one or more of the recognized national stock

19  exchanges and, in the case of bonds only, shall hold a rating

20  in one of the four highest classifications by a major rating

21  service. Said bonds and preferred stocks that are convertible

22  into common stocks shall be considered common stocks and the

23  purchase of same shall be limited by the provisions of

24  subparagraph 5.

25         d.  The Board shall engage the services of professional

26  investment counsel to assist and advise the trustees in the

27  performance of their duties.

28         e.  At least once every 3 years, the Board shall retain

29  an independent consultant professionally qualified to evaluate

30  the performance of its professional money manager or

31  investment counsel. The independent consultant shall make

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                                                   Bill No. HB 975

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  1  recommendations to the Board at its next regularly scheduled

  2  meeting.

  3         (c)  Maximum of cash not invested.--No more than 10

  4  percent of the assets of the Fund shall be held in cash or in

  5  noninterest-bearing deposits.

  6         (d)  Administrative expenses.--The administrative

  7  expenses of the Fund shall be paid by the Fund.

  8         (e)  Restrictions on the use of assets of Fund.--The

  9  assets of the Fund shall be used only for the payment of

10  benefits and other disbursements authorized by this act and

11  shall be used for no other purpose.

12         (5)  Service pension.--

13         (a)  Normal retirement.--

14         1.  Any member whose entry or reentry in the employment

15  of the Department occurs after April 30, 1959, who has

16  attained age 50 years and who has acquired 15 or more years of

17  service credit or, effective for retirements after January 20,

18  2002, has 25 years of service credit without regard to age

19  shall, upon application filed with the Board, be retired and

20  shall be entitled to a monthly pension for the remainder of

21  his or her life equal to the greater of the following, as

22  applicable:

23         a.  For a member who is actively employed by the

24  Department on or after October 1, 1998, or who is part of the

25  DROP on or after October 1, 1998, 3 percent of his or her

26  final average salary multiplied by the number of years, and

27  fraction of a year, of service credit earned from and after

28  October 1, 1982, plus 2-1/2 percent of his or her final

29  average salary multiplied by the number of years, and fraction

30  of a year, of service credit earned prior to October 1, 1982,

31  provided that in no case shall the total monthly pension

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                                                   Bill No. HB 975

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  1  payable to any such member exceed 78 percent of his or her

  2  final average salary;

  3         b.  For members who terminated employment, retired, or

  4  entered the DROP prior to October 1, 1998, except as provided

  5  in sub-subparagraph a., 2-1/2 percent of his or her final

  6  average salary multiplied by the number of years, and fraction

  7  of a year, of service credit, provided that in no case shall

  8  the total monthly pension payable to any member exceed 65

  9  percent of his or her final average salary; or

10         c.  The sum of the following:

11         (I)  Two and one-half percent of final average salary

12  multiplied by the number of years, and fraction of a year, of

13  service credit to a maximum of 26 years of service, and 2

14  percent of his or her final average salary multiplied by the

15  number of years, and fraction of a year, in excess of 26 years

16  of service, for all years of service earned through September

17  30, 1988; and

18         (II)  Two percent of final average salary multiplied by

19  the number of years, and fraction of a year, of service credit

20  earned on and after October 1, 1988.

21         2.  Any member whose entry or reentry in the employment

22  of the Department occurs after April 30, 1959, and prior to

23  July 1, 1977, may elect upon his or her retirement to receive

24  a pension under the provisions of this subparagraph in lieu of

25  subparagraph 1., as follows: Any member who has attained age

26  55 years and who has acquired 20 or more years of service

27  credit shall, upon his or her application filed with the

28  Board, be retired and, when so retired, shall be entitled to a

29  monthly pension for the remainder of his or her life equal to

30  the greater of the following:

31         a.  Two percent of final average salary multiplied by

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                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  the number of years, or fraction of a year, of service credit

  2  not to exceed 25 years, provided that in no case shall the

  3  total monthly pension payable to any member exceed 65 percent

  4  of his or her final average salary; or

  5         b.  The sum of the following:

  6         (I)  Two and one-half percent of final average salary

  7  multiplied by the number of years, and fraction of a year, of

  8  service credit to a maximum of 26 years of service, and 2

  9  percent of final average salary multiplied by the number of

10  years and fraction of a year in excess of 26 years of service,

11  for all years of service earned through September 30, 1988;

12  and

13         (II)  Two percent of final average salary multiplied by

14  the number of years, and fraction of a year, of service credit

15  earned on and after October 1, 1988.

16

17  The 3-percent benefit accrual factor in sub-subparagraph 1.a.

18  is contingent on and subject to the adoption and maintenance

19  of the assumptions set forth in subsection (22). If such

20  assumptions are modified by legislative, judicial, or

21  administrative agency action, and the modification results in

22  increased City contributions to the Pension Fund, the

23  3-percent accrual factor in sub-subparagraph 1.a. shall be

24  automatically decreased prospectively, from the date of the

25  action, to completely offset the increase in City

26  contributions. However, in no event shall the benefit accrual

27  factor in sub-subparagraph 1.a. be adjusted below 2.5 percent.

28  To the extent that the benefit accrual factor is less than 3

29  percent, the supplemental pension distribution calculation

30  under paragraph (d) shall be adjusted for employees who retire

31  on or after October 1, 1998, and those employees who were

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  members of the DROP on October 1, 1998. The adjustment shall

  2  be to decrease the minimum return of 8.25 percent needed to

  3  afford the supplemental pension distribution, when the amount

  4  of the reduction is zero if an employee has been credited with

  5  16 or more years with the 3-percent benefit accrual factor or

  6  1.25 percent if an employee has been credited with no more

  7  than a 2.5-percent benefit accrual factor. If an employee has

  8  been credited with less than 16 years at the 3-percent benefit

  9  accrual factor, then the accumulated amount over 2.5 percent

10  for each year of service divided by .5 percent divided by 16

11  subtracted from 1 multiplied by 1.25 percent is the reduction

12  from 8.25 percent. An example of the calculation of the

13  minimum return for supplemental pension distribution as

14  described above is set forth in Appendix B to the collective

15  bargaining agreement between the City of West Palm Beach and

16  the West Palm Beach Association of Firefighters, Local

17  727-IAFF, October 1, 1998-September 30, 2001.

18         (b)  Vested deferred retirement.--A member who leaves

19  the employ of the Department with 10 or more years of credited

20  service who is not eligible for any other retirement benefit

21  under this act shall be entitled to the applicable pension

22  provided for in paragraph (a) or paragraph (c). Payment of

23  this pension shall begin the first day of the calendar month

24  following the month in which the member's application is filed

25  with and accepted by the Board on or after attainment of age

26  50 years. If applicable, the amount of the pension shall be

27  determined in accordance with paragraph (c).

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

29  service of the Department as of the first day of any calendar

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

31  but subsequent to the date as of which the member has both

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                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  attained the age of 50 and has been a member of this Fund for

  2  10 continuous years. In the event of early retirement, the

  3  monthly amount of retirement income shall be computed as

  4  described in paragraph (a), taking into account his or her

  5  credited service to the date of actual retirement and his or

  6  her final average salary as of such date. The amount of

  7  retirement income shall be actuarially reduced to take into

  8  account the member's younger age and earlier commencement of

  9  retirement income benefits. The early retirement reduction

10  shall be 3 percent for each year by which the member's age at

11  retirement preceded the member's normal retirement age.

12         (d)  Supplemental pension distribution.--

13         1.a.  The actuary for the Pension Fund shall determine

14  the rate of investment return earned on Pension Fund assets

15  during the 12-month period ending each September 30. The rate

16  determined shall be the rate reported in the most recent

17  actuarial report submitted pursuant to part VII of chapter

18  112, Florida Statutes.

19         b.  The actuary for the Pension Fund shall determine

20  the actuarial present value, as of September 30, of future

21  pension payments to eligible persons, as described in

22  subparagraph 3., who are then being paid a pension. The

23  actuarial present values shall be calculated using an interest

24  rate of 7 percent per year compounded yearly and a mortality

25  table as approved by the Board of Trustees and as used in the

26  most recent actuarial report submitted pursuant to part VII of

27  chapter 112, Florida Statutes.

28         c.  A distribution amount shall be determined as of

29  each September 30. For distributions made after October 1,

30  1998, there shall be two different calculations to determine

31  the distribution amount. For those employees who retire on or

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  after October 1, 1998, or who are part of the DROP on or after

  2  October 1, 1998, the distribution amount shall be equal to

  3  factor (i) for each applicable member multiplied by the sum of

  4  factor (ii) and the positive difference, if any, between

  5  factor (iii) and 8.25 percent. For those employees who have

  6  retired before October 1, 1998, except as provided in this

  7  sub-subparagraph, the distribution amount shall be equal to

  8  factor (i) for each applicable member multiplied by the sum of

  9  factor (ii) and the positive difference, if any, between

10  factor (iii) and 7 percent. For purposes of both calculations,

11  factor (i) is the actuarial present value determined in

12  sub-subparagraph 1.b. for the respective group. Factor (ii) is

13  one-half of the investment return rate in sub-subparagraph

14  1.a. in excess of 9 percent. Factor (iii) is the rate of

15  investment return in sub-subparagraph 1.a., not to exceed 9

16  percent. The distribution amount shall not exceed accumulated

17  net actuarial experience from all pension liabilities and

18  assets. If the net actuarial experience is favorable,

19  cumulatively, commencing with the experience for the year

20  ended September 30, 1985, after offset for all prior

21  supplemental distributions, the supplemental distribution may

22  be made. If the net actuarial experience is unfavorable,

23  cumulatively, commencing with the experience for the year

24  ended September 30, 1985, after offset for all prior

25  supplemental distributions, no supplemental distribution may

26  be made, and the City must amortize the loss until it is

27  offset by cumulative favorable experience.

28

29  If an actuarial report submitted as provided in this paragraph

30  is not state accepted prior to distribution, and if a

31  deficiency to the Pension Fund results, the deficiency shall

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  be made up from the next available supplemental pension

  2  distribution, unless sooner made up by agreement between the

  3  Board of Trustees and the City. No such deficiency shall be

  4  permitted to continue for a period of greater than 3 years

  5  from the date of payment of the supplemental pension

  6  distribution which resulted in the deficiency.

  7         2.  The Board of Trustees shall determine annually if

  8  there is to be a supplemental pension distribution. The

  9  supplemental pension distribution is that portion of the

10  distribution amount, as defined in sub-subparagraph 1.c., to

11  be distributed to eligible persons.

12         3.  Eligible persons are:

13         a.  Pensioners.

14         b.  Surviving spouses.

15         c.  Surviving dependent children.

16         d.  Surviving dependent parents.

17         e.  Pensioners' estates for the year following death

18  only.

19

20  Eligible persons are initially eligible if they have been in

21  receipt of a pension for at least 1 year on the first

22  distribution date following their retirement. A survivor

23  beneficiary of a deceased retired member shall be considered

24  to have been in receipt of a pension for at least 1 year if at

25  least 12 monthly pension payments have been made on account of

26  the retirement. A surviving spouse may count the retirement

27  period, if any, of the deceased member toward the 1-year

28  requirement. Surviving spouses, children, and parents and

29  retired members who receive pension adjustments under the

30  prior escalator clause are not eligible for the supplemental

31  pension distribution.

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1         4.  The supplemental pension distribution dates shall

  2  be the April 1 following the effective date of this subsection

  3  and each April 1 thereafter. Each eligible person shall be

  4  paid his or her allocated portion of the applicable

  5  supplemental pension distribution amount from the preceding

  6  September 30. A pensioner's estate is entitled to a pro rata

  7  share of the deceased retiree's supplemental pension

  8  distribution based on the number of months that the deceased

  9  retiree received a pension during the year ending the

10  September 30 prior to the pensioner's death after initial

11  eligibility.

12         5.  Each supplemental pension distribution amount shall

13  be allocated among the eligible persons in the proportion that

14  an eligible person's supplemental pension distribution points

15  bears to the aggregate amount of supplemental pension

16  distribution points of all eligible persons. An eligible

17  person shall be credited with supplemental pension

18  distribution points as follows:

19         a.  Three and eighty-five hundredths of a point

20  multiplied by the service credit of the member at the time of

21  retirement or prior to death; however, in the computation of

22  the supplemental pension distribution due the in-line-of-duty

23  pensioner, the maximum service credit of 26 years shall be

24  used.

25         b.  Maximum service credit shall be 26 years.

26         c.  Allocations for surviving spouses and surviving

27  dependent children who are eligible to receive supplemental

28  pension distributions shall be 75 percent of the years of

29  service earned by the pensioner. Allocations for duty death

30  beneficiaries (surviving spouse and surviving children) shall

31  be based upon 75 percent of 26 years of service.

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1         (e)  Payment of benefits.--

  2         1.  First payment.--Service pensions shall be payable

  3  on the first day of each month. The first payment shall be

  4  payable on the first day of the month coincident with or next

  5  following the date of retirement, or death, provided the

  6  member has completed the applicable age and service

  7  requirements.

  8         2.  Last payment.--The last payment shall be the

  9  payment due next preceding the member's death, except that

10  payments shall be continued to the designated beneficiary or

11  beneficiaries if a 10-year certain benefit, a joint and

12  survivor option, or beneficiary benefits, as applicable, are

13  payable.

14         (f)  Normal form of retirement income.--

15         1.  Married member.--The normal form of retirement

16  benefit for a married member or for a member with a dependent

17  child or children or parent or parents shall be a service

18  pension and beneficiary benefits. The service benefit shall

19  provide monthly payments for the life of the member.

20  Thereafter, beneficiary benefits shall be paid as provided in

21  subsection (7).

22         2.  Unmarried member.--The normal form of retirement

23  benefit for an unmarried member without a dependent child or

24  children or parent or parents shall be a 10-year certain

25  benefit. This benefit shall pay monthly benefits for the

26  member's lifetime. In the event the member dies after his or

27  her retirement but before receiving retirement benefits for a

28  period of 10 years, the same monthly benefit shall be paid to

29  the beneficiary or beneficiaries as designated by the member

30  for the balance of such 10-year period or, if no beneficiary

31  is designated, to heirs at law, or estate of the member, as

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  provided in section 175.181, Florida Statutes.

  2         (g)  Optional forms of retirement income.--

  3         1.a.  In the event of normal, early, or disability

  4  retirement, in lieu of the normal form of retirement income

  5  payable as specified in paragraph (a), paragraph (b),

  6  paragraph (c), or subsection (6) and in lieu of the

  7  beneficiary benefits as specified in subsection (7), a member,

  8  upon written request to the Board and subject to the approval

  9  of the Board, may elect to receive a retirement income of

10  equivalent actuarial value payable in accordance with one of

11  the following options:

12         (I)  Lifetime option.--A retirement income of a larger

13  monthly amount, payable to the member for his or her lifetime

14  only.

15         (II)  Joint and survivor option.--A retirement income

16  of a modified monthly amount, payable to the member during the

17  joint lifetime of the member and a dependent joint pensioner

18  designated by the member, and following the death of either of

19  them, 100 percent, 75 percent, 66-2/3 percent, or 50 percent

20  of such monthly amounts, payable to the survivor for the

21  lifetime of the survivor.

22         b.  The member, upon electing any option of this

23  paragraph, shall designate the joint pensioner or beneficiary

24  or beneficiaries to receive the benefit, if any, payable in

25  the event of his or her death, and will have the power to

26  change such designation from time to time; but any such change

27  shall be deemed a new election and shall be subject to

28  approval by the Board. Such designation shall name a joint

29  pensioner or one or more primary beneficiaries where

30  applicable. If a member has elected an option with a joint

31  pensioner or beneficiary and his or her retirement income

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  benefits have commenced, he or she may thereafter change the

  2  designated joint pensioner or beneficiary only twice.

  3         c.  The consent of a member's joint pensioner or

  4  beneficiary to any such change shall not be required. However,

  5  the spouse of a married member must consent to any election to

  6  waive a joint and survivor benefit by signing the election

  7  form before a notary public. The spouse's written consent must

  8  acknowledge the effect of such a waiver. Consent of the spouse

  9  shall not be required if the spouse cannot be located, or for

10  such other circumstances as may be prescribed by the Secretary

11  of the Treasury of the United States. Any consent by a spouse

12  shall be effective only with respect to such spouse.

13         d.  The Board may request such evidence of the good

14  health of the joint pensioner that is being added as it may

15  require; and the amount of the retirement income payable to

16  the member upon the designation of a new joint pensioner shall

17  be actuarially redetermined, taking into account the age and

18  sex of the former joint pensioner, the new joint pensioner,

19  and the member. Each such designation shall be filed with the

20  Board. In the event that no designated beneficiary survives

21  the member, such benefits as are payable in the event of the

22  death of the member subsequent to his or her retirement shall

23  be paid as provided in subparagraph (h)2.

24         2.  Retirement income payments shall be made under the

25  option elected in accordance with the provisions of this

26  paragraph and shall be subject to the following limitations:

27         a.  If a member dies prior to his or her normal

28  retirement date or early retirement date, whichever first

29  occurs, retirement benefits shall be paid in accordance with

30  subsection (7).

31         b.  If the designated beneficiary or beneficiaries or

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  joint pensioner dies before the member's retirement, the

  2  option elected shall be canceled automatically and a

  3  retirement income of the normal form and amount shall be

  4  payable to the member upon the member's retirement as if the

  5  election has not been made, unless a new election is made in

  6  accordance with the provisions of this paragraph or a new

  7  beneficiary is designated by the member prior to retirement.

  8         c.  If a member continues in the employ of the

  9  Department after meeting the age and service requirements set

10  forth in paragraph (a) or paragraph (c) and dies prior to the

11  member's actual retirement, and while an option made pursuant

12  to this subparagraph is in effect, monthly retirement income

13  payments shall be paid, under the option, to a beneficiary or

14  beneficiaries designated by the member in the amount or

15  amounts computed as if the member has retired under the option

16  on the date on which the member's death occurred.

17         3.  No member may make any change in his or her

18  retirement option after the date of cashing or depositing the

19  first retirement check.

20         (h)  Designation of beneficiary.--

21         1.  Each member may, on a form provided for that

22  purpose, signed and filed with the Board, designate a

23  beneficiary or beneficiaries to receive the benefit, if any,

24  which may be payable in the event of the member's death; and

25  each designation may be revoked by such member by signing and

26  filing with the Board a new designation of beneficiary form.

27  However, after the benefits have commenced, a retirant may

28  change his or her designation of joint annuitant or

29  beneficiary only twice. If the retirant desires to change his

30  or her joint annuitant or beneficiary, the retirant shall file

31  with the Board a notarized notice of such change either by

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                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  registered letter or on a form as provided by the Board. Upon

  2  receipt of a completed change of joint annuitant form or such

  3  other notice, the Board shall adjust the member's monthly

  4  benefit by the application of actuarial tables and

  5  calculations developed to ensure that the benefit paid is the

  6  actuarial equivalent of the present value of the member's

  7  current benefit.

  8         2.  Absence or death of beneficiary.--If a deceased

  9  member fails to name a beneficiary in the manner prescribed in

10  subparagraph 1., or if the beneficiary or beneficiaries named

11  by a deceased member predecease the member, the beneficiary

12  benefits, if any, which may be payable with respect to such

13  deceased member may be paid, in the discretion of the Board

14  to:

15         a.  The spouse or dependent child or children of the

16  member;

17         b.  The dependent living parent or parents of the

18  member; or

19         c.  The estate of the member.

20         (i)  Refund of contributions.--In the event a member

21  leaves the employ of the Department or dies with less than 10

22  years of credited service, and no service pension, disability

23  pension, or beneficiary benefit is payable, the contributions

24  made by him or her to the Fund shall be refunded, without

25  interest (less any disability payments paid to the member), to

26  the member or, in the event of death, to the beneficiary or to

27  the member's estate.

28         (j)  Chapter 175, Florida Statutes, share accounts.--

29         1.  Individual member accounts.--A separate account

30  shall be established and maintained in each member's name

31  effective on or after October 1, 1988.

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1         2.  Share account funding.--

  2         a.  Each individual member account shall be credited

  3  with a pro rata share of all of the moneys received from

  4  chapter 175, Florida Statutes, tax revenues in June 1988 and

  5  thereafter.

  6         b.  In addition, any forfeitures as provided in

  7  subparagraph 5. shall be credited to the individual member

  8  accounts in accordance with the formula set forth in

  9  subparagraph 3.

10         3.  Annual allocation of accounts.--

11         a.  Moneys shall be credited to each individual member

12  account in an amount directly proportionate to the number of

13  pay periods for which the member was paid compared to the

14  total number of pay periods for which all members were paid,

15  counting the pay periods in the calendar year preceding the

16  date for which chapter 175, Florida Statutes, tax revenues

17  were received.

18         b.  At the end of each fiscal year (September 30), each

19  individual account shall be adjusted to reflect the earnings

20  or losses resulting from investment, as well as reflecting

21  costs, fees, and expenses of administration.

22         c.  The investment earnings or losses credited to the

23  individual member accounts shall be in the same percentage as

24  are earned or lost by the total investment earnings or losses

25  of the Fund as a whole, unless the Board dedicates a separate

26  investment portfolio for chapter 175, Florida Statutes, share

27  accounts, in which case the investment earnings or losses

28  shall be measured by the investment earnings or losses of the

29  separate investment portfolio.

30         d.  Costs, fees, and expenses of administration shall

31  be debited from the individual member accounts on a

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  proportionate basis, taking the cost, fees, and expenses of

  2  administration of the Fund as a whole, multiplied by a

  3  fraction, the numerator of which is the total assets in all

  4  individual member accounts and the denominator of which is the

  5  total assets of the Fund as a whole. The proportionate share

  6  of the costs, fees, and expenses shall be debited from each

  7  individual member account on a pro rata basis in the same

  8  manner as chapter 175, Florida Statutes, tax revenues are

  9  credited to each individual member account (i.e., based on pay

10  periods).

11         e.  If the entire balance of the individual member

12  account is withdrawn before September 30 of any year, there

13  shall be no adjustment made to that individual member account

14  to reflect either investment earnings or losses or costs,

15  fees, and expenses of administration.

16         4.  Eligibility for benefits.--Any member who

17  terminates employment with the City, upon the member's filing

18  an application with the Board, shall be entitled to 100

19  percent of the value of his or her individual member account,

20  provided the member meets any of the following criteria:

21         a.  The member is eligible to receive a service pension

22  as provided in this subsection;

23         b.  The member has 5 or more years of credited service

24  and is eligible to receive either:

25         (I)  A nonduty disability pension as provided in

26  paragraph (6)(a); or

27         (II)  Beneficiary benefits for nonduty death as

28  provided in paragraph (7)(a); or

29         c.  The member has any credited service and is eligible

30  to receive either:

31         (I)  A duty disability pension as provided in paragraph

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  (6)(c); or

  2         (II)  Beneficiary benefits for death in the line of

  3  duty as provided in paragraph (7)(b).

  4         5.  Forfeitures.--Any member who has less than 10 years

  5  of credited service and who is not eligible for payment of

  6  benefits after termination of employment with the City shall

  7  forfeit his or her individual member account. The amounts

  8  credited to said individual member account shall be

  9  redistributed to the other individual member accounts in the

10  same manner as chapter 175, Florida Statutes, tax revenues are

11  credited (i.e., based on pay periods).

12         6.  Payment of benefits.--The normal form of benefit

13  payment shall be a lump sum payment of the entire balance of

14  the individual member account; or, upon the written election

15  of the member, upon a form prescribed by the Board, payment

16  may be made either by:

17         a.  Installments.--The account balance shall be paid

18  out to the retirant in three equal payments paid over 3 years,

19  the first payment to be made upon approval of the Board; or

20         b.  Annuity.--The account balance shall be paid out in

21  monthly installments over the lifetime of the member or until

22  the entire balance is exhausted. The monthly amount paid shall

23  be determined by the Fund's actuary in accordance with

24  selections made by the member in a form provided by the Board.

25         7.  Death of a member.--If a member dies and is

26  eligible for benefits from the individual member account, the

27  entire balance of the individual member account shall be paid

28  in a lump sum to the beneficiaries designated in accordance

29  with paragraph (h). If a member fails to designate a

30  beneficiary or, if the beneficiary predeceases the member, the

31  entire balance shall be paid in a lump sum in the following

                                  29

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  order:

  2         a.  To the spouse;

  3         b.  If there is no spouse or the spouse is not alive,

  4  to the member's surviving child or children on a pro rata

  5  basis;

  6         c.  If there are no children or no child is alive, to

  7  the member's parent or parents; or

  8         d.  If no parent is alive, to the estate of the member.

  9         (k)  Deferred Retirement Option Plan (DROP).--

10         1.  Eligibility to participate in the DROP.--

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

12  normal retirement pension may participate in the DROP. Members

13  shall elect to participate by applying to the Board of

14  Trustees on a form provided for that purpose.

15         b.  Election to participate shall be forfeited if not

16  exercised within the first 35 years of combined credited

17  service.

18         c.  A member shall not participate in the DROP beyond

19  the time of attaining 37 years of service and the total years

20  of participation in the DROP shall not exceed 5 years. For

21  example:

22         (I)  Members with 32 years of credited service at the

23  time of entry shall participate for only 5 years.

24         (II)  Members with 33 years of credited service at the

25  time of entry shall participate for only 4 years.

26         (III)  Members with 34 years of credited service at the

27  time of entry shall participate for only 3 years.

28         (IV)  Members with 35 years of credited service at the

29  time of entry shall participate for only 2 years.

30         d.  Upon a member's election to participate in the

31  DROP, he or she shall cease to be a member and shall no longer

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  accrue any benefits under the Pension Fund, except for the

  2  benefits provided under paragraph (j) of this subsection,

  3  chapter 175, Florida Statutes, share accounts. For all Fund

  4  purposes, the member becomes a retirant, except that a DROP

  5  participant shall continue to receive shares of the chapter

  6  175, Florida Statutes, money in accordance with paragraph (j),

  7  chapter 175, Florida Statutes, share accounts. The amount of

  8  credited service and final average salary shall freeze as of

  9  the date of entry into the DROP.

10         2.  Amounts payable upon election to participate in the

11  DROP.--

12         a.  Monthly retirement benefits that would have been

13  payable had the member terminated employment with the

14  Department and elected to receive monthly pension payments

15  shall be paid into the DROP and credited to the retirant.

16  Payments into the DROP shall be made monthly over the period

17  the retirant participates in the DROP, up to a maximum of 60

18  months.

19         b.  Payments to the DROP earn interest using the rate

20  of investment return earned on Pension Fund assets as reported

21  by the Fund's investment monitor. DROP assets are commingled

22  with the Pension Fund assets for investment purposes. However,

23  if a member does not terminate employment at the end of

24  participation in the DROP, interest credit shall cease on the

25  current balance and on all future DROP deposits.

26         c.  No payments shall be made from the DROP until the

27  member terminates employment with the Department.

28         d.  Upon termination of employment, participants in the

29  DROP shall receive the balance of the DROP account in

30  accordance with the following rules:

31         (I)  Members may elect to receive payment upon

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  termination of employment or defer payment of the DROP until

  2  the latest day under sub-sub-subparagraph (III).

  3         (II)  Payments shall be made in either:

  4         (A)  Lump sum.--The entire account balance shall be

  5  paid to the retirant upon approval of the Board of Trustees.

  6         (B)  Installments.--The account balance shall be paid

  7  out to the retirant in three equal payments paid over 3 years,

  8  the first payment to be made upon approval of the Board of

  9  Trustees.

10         (C)  Annuity.--The account balance shall be paid out in

11  monthly installments over the lifetime of the member or until

12  the entire balance is exhausted. The monthly amount paid shall

13  be determined by the Fund's actuary in accordance with

14  selections made by the member in a form provided by the Board

15  of Trustees.

16         (III)  Any form of payment selected by a member must

17  comply with the minimum distribution requirements of the IRC

18  401(A)(9), and are subject to the requirements of subsection

19  (19).

20         (IV)  The beneficiary of the DROP participant who dies

21  before payments from DROP begin shall have the same right as

22  the participant in accordance with subsection (7).

23         3.  Loans from the DROP.--

24         a.  Availability of loans.--

25         (I)  Loans are available to members only after

26  termination of employment, provided the member had

27  participated in the DROP for a period of 12 months.

28         (II)  Loans may only be made from a member's own

29  account.

30         (III)  There may be no more than one loan at a time.

31         b.  Amount of loan.--

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1         (I)  Loans may be made up to a maximum of 50 percent of

  2  account balance.

  3         (II)  The maximum dollar amount of a loan is $50,000,

  4  reduced by the highest outstanding loan balance during the

  5  last 12 months.

  6         (III)  The minimum amount of a loan is $5,000.

  7         c.  Limitation on loans.--Loans shall be made from the

  8  amounts paid into the DROP and earnings thereon.

  9         d.  Term of the loan.--

10         (I)  The loan must be for at least 1 year.

11         (II)  The loan shall be no longer than 5 years.

12         e.  Loan interest rate.--

13         (I)  The interest rate shall be fixed at the time the

14  loan is originated for the entire term of the loan.

15         (II)  The interest rate shall be equal to the lowest

16  prime rate published by the Wall Street Journal on the last

17  day of each calendar quarter preceding the date of the loan

18  application.

19         f.  Defaults of loans.--

20         (I)  Loans shall be in default if 2 consecutive months'

21  repayments are missed or if a total of 4 months' repayments

22  are missed.

23         (II)  Upon default, the entire balance becomes due and

24  payable immediately.

25         (III)  If a loan in default is not repaid in full

26  immediately, the loan may be canceled and the outstanding

27  balance treated as a distribution, which may be taxable.

28         (IV)  Upon default of a loan, a member shall not be

29  eligible for additional loans.

30         g.  Miscellaneous provisions.--

31         (I)  All loans must be evidenced by a written loan

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  agreement signed by the member and the Board of Trustees. The

  2  agreement shall contain a promissory note.

  3         (II)  A member's spouse must consent in writing to the

  4  loan. The consent shall acknowledge the effect of the loan on

  5  the member's account balance.

  6         (III)  Loans shall be considered general assets of the

  7  Fund.

  8         (IV)  Loans shall be subject to administrative fees to

  9  be set by the Board of Trustees.

10         4.  After-tax contributions to the DROP.--

11         a.  A member may make after-tax contributions to the

12  DROP. The maximum amount that may be contributed is the lesser

13  of:

14         (I)  The IRS 415(c) limit.

15         (II)  The amount allowable under IRC 401(m).

16         b.  After-tax contributions to the DROP shall earn

17  interest in the same manner as set forth in sub-subparagraph

18  2.b.

19         c.  Distributions to members or their beneficiaries of

20  after-tax contributions may be withdrawn at any time on or

21  after termination of employment. However, payments must be

22  made at least as promptly as required under subsection (19).

23         d.  Loans shall not be made against after-tax

24  contributions.

25         (6)  Disability pensions, medical examinations, return

26  to work, etc.--

27         (a)  Nonduty disability requirements.--Any member with

28  5 or more years of service credit who is regularly employed in

29  the Department who becomes physically or mentally totally and

30  permanently disabled by illness, disease, or injury to perform

31  the duties of a firefighter shall, upon the member's

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  application to the Board, be retired with a pension provided

  2  for in this paragraph, provided that after a medical

  3  examination of the member made by or under the direction of a

  4  medical committee, the medical committee reports to the Board,

  5  in writing, whether:

  6         1.  The member is wholly prevented from rendering

  7  useful and efficient service as a firefighter; and

  8         2.  The member is likely to remain so disabled

  9  continuously and permanently.

10

11  The Board may admit and consider any other evidence that it

12  deems appropriate. The final decision as to whether a member

13  meets the requirements for a nonduty disability pension rests

14  with the Board and shall be based on competent substantial

15  evidence on the record as a whole.

16         (b)  Nonduty disability pension benefits.--Upon

17  retirement on account of disability as provided in paragraph

18  (a), a member shall receive a disability pension computed

19  according to subparagraph (5)(a)1., notwithstanding that he or

20  she might not have attained age 50 years and might not have 15

21  or more years of service credit. Further, if the member has at

22  least 10 years of service credit, the disability pension shall

23  not be less than 25 percent of the member's average monthly

24  salary at the time of disability. A disability retiree may

25  select optional forms of benefits in accordance with paragraph

26  (5)(g).

27         (c)  Duty disability requirements.--Any member who is

28  regularly employed in the Department and who becomes

29  physically or mentally totally and permanently disabled to

30  perform the duties of a firefighter by reason of an injury or

31  disease arising out of and in the course of the performance of

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  his or her duties as a firefighter in the employ of the City,

  2  shall, upon his or her application to the Board, be retired

  3  with a disability pension provided for in this paragraph,

  4  provided that after a medical examination of the member made

  5  by or under the direction of the medical committee, the

  6  medical committee reports to the Board in writing, whether:

  7         1.  The member is wholly prevented from rendering

  8  useful and efficient service as a firefighter; and

  9         2.  The member is likely to remain so disabled

10  continuously and permanently.

11

12  The Board shall admit and consider any other evidence that it

13  deems appropriate. Any condition or impairment of health of a

14  member caused by tuberculosis, hypertension, heart disease,

15  hepatitis, or meningococcal meningitis resulting in total

16  disability or death shall be presumed to have been accidental

17  and suffered in the line of duty unless the contrary is shown

18  by competent evidence, provided such member shall have

19  successfully passed a physical examination before entering

20  into such service, which examination failed to reveal any

21  evidence of such condition. In order to be entitled to the

22  presumption in the case of hepatitis, meningococcal

23  meningitis, or tuberculosis, the member must meet the

24  requirements of section 112.181, Florida Statutes. The final

25  decision as to whether a member meets the requirements for a

26  disability pension rests with the Board, based on competent

27  substantial evidence on the record as a whole.

28         (d)  Duty disability pension benefits.--Upon retirement

29  on account of disability, as provided in paragraph (c), a

30  member shall receive a monthly pension for the remainder of

31  his or her life, equal to the greater of the following:

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1         1.  Sixty-five percent of the final average salary; or

  2         2.  The sum of the following:

  3         a.  Two and one-half percent of the member's final

  4  average salary multiplied by the number of years, and fraction

  5  of a year, of his or her service credit to a maximum of 26

  6  years of service, and 2 percent of his or her final average

  7  salary multiplied by the number of years, and fraction of a

  8  year, in excess of 26 years of service, for all years of

  9  service earned through September 30, 1988; and

10         b.  Two percent of the member's final average salary

11  multiplied by the number of years, and fraction of a year, of

12  his or her service credit earned on or after October 1, 1988.

13         (e)  Medical committee.--The medical committee provided

14  for in this subsection shall consist of no less than two

15  qualified health professionals, one of whom shall be

16  designated by the Board and one by the member. If deemed

17  necessary by the Board, a third qualified health professional,

18  selected by the two committee members previously designated,

19  may be named to the medical committee. The medical committee

20  shall report to the Board the existence and degree of

21  permanent physical impairment of the member, if any, based

22  upon the most recent edition of the American Medical

23  Association's Guide to the Evaluation of Permanent Impairment,

24  if applicable.

25         (f)  Exclusions from disability pensions.--No

26  disability pension shall be payable, either as a duty

27  disability pension or as a nonduty disability pension, if the

28  disability is a result of:

29         1.  Excessive and habitual use by the member of drugs,

30  intoxicants, or narcotics;

31         2.  Injury or disease sustained by the member while

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  willfully and illegally participating in fights, riots, or

  2  civil insurrections or while committing a crime;

  3         3.  Injury or disease sustained by the member while

  4  serving in any armed forces;

  5         4.  Injury or disease sustained by the member after his

  6  or her employment has terminated;

  7         5.  Injury or disease sustained by the member while

  8  working for anyone other than the City and arising out of such

  9  employment; or

10         6.  Injury or disease sustained by the member before

11  coming to work for the City. This exclusion applies to duty

12  disability applications only.

13         (g)  Payment of disability pensions.--Monthly

14  disability retirement benefits shall be payable as of the date

15  the Board determines that the member was entitled to a

16  disability pension; however, the first payment shall actually

17  be paid on the first day of the first month after the Board

18  determines such entitlement. Any portion due for a partial

19  month shall be paid together with the first payment. If the

20  member recovers from the disability prior to his or her normal

21  retirement date, the last payment shall be the payment due

22  next preceding the date of such recovery or, if the member

23  dies without recovering from his or her disability, then the

24  following shall apply:

25         1.  Married member.--Beneficiary benefits as set forth

26  in subsection (7) shall be paid if, at the time of death, the

27  member was married or had a dependent child or children or

28  parent or parents; or

29         2.  Unmarried member with 10 years of service or

30  more.--Payments shall be made until the member's death or the

31  120th monthly payment, whichever is later; or

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1         3.  Unmarried member with less than 10 years of

  2  service.--Payments shall be made until the member's death.

  3

  4  Any monthly retirement income payments due after the death of

  5  a disabled member shall be paid to the member's designated

  6  beneficiary or beneficiaries or the member's estate as

  7  provided in paragraph (5)(h) or subsection (7), as applicable.

  8         (h)  Reexamination of disability retirant.--At least

  9  once each year during the first 5 years following a member's

10  retirement on account of disability, and at least once in each

11  3-year period thereafter, the Board shall require any

12  disability retirant who has not attained age 50 to undergo a

13  medical examination to be made by or under the direction of a

14  physician designated by the Board. However, if a disability

15  retirant has lost the firefighter certification, as required

16  by Florida Statutes, then the reexamination is discretionary.

17  If the retirant refuses to submit to the medical examination

18  in any such period, his or her disability pension may be

19  suspended by the Board until withdrawal of such refusal. If

20  such refusal continues for 1 year, all of the retirant's

21  rights in and to a disability pension may be revoked by the

22  Board. If, upon medical examination of the retirant, the

23  physician reports to the Board that the retirant is physically

24  able and capable of performing the duties of a firefighter in

25  the rank held by him or her at the time of retirement, the

26  member shall be returned to employment in the Department at a

27  salary not less than the salary of the rank last held by him

28  or her, provided that return to the employ of the Department

29  shall be subject to the approval of the Fire Chief. Should the

30  retirant become employed by the City, his or her disability

31  pension shall terminate.

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1         (i)  Return to work of a disability retirant; service

  2  credit.--In the event a disability retirant is returned to

  3  employment in the department, as provided in paragraph (h),

  4  his or her service credit at the time of disability retirement

  5  shall be restored to his or her credit. In the event he or she

  6  retired under the provisions of paragraph (c), he or she shall

  7  be given service credit for the period he or she was in

  8  receipt of a disability pension. If he or she retired under

  9  the provisions of paragraph (a), he or she shall not be given

10  service credit for the period he or she was in receipt of a

11  disability pension.

12         (j)  Expenses of medical examinations for

13  disability.--The member shall be responsible for the expenses

14  of the physician the member designates for medical

15  examinations required under this subsection. Expenses for any

16  other medical examinations required under this subsection

17  shall be paid by the Fund.

18         (7)  Beneficiary benefits.--

19         (a)  Death while in service; 5 years or more

20  (nonduty).--In the event a member with 5 or more years of

21  service credit dies while in the employ of the Department, and

22  the Board finds his or her death to have occurred as the

23  result of causes arising outside the performance of his or her

24  duties as a firefighter in the employ of the City, the

25  following applicable pensions shall be paid:

26         1.  Surviving spouse's benefits.--The surviving spouse

27  shall receive a pension equal to two-thirds of the pension the

28  member would otherwise have been entitled to receive under

29  paragraph (5)(a), as if the member had retired the day

30  preceding the date of his or her death, notwithstanding that

31  the member might not have met the age and service requirements

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  for retirement as specified in subsection (5). Upon the

  2  surviving spouse's death, the pension shall terminate.

  3         2.  Benefits for children, surviving spouse, etc.--In

  4  the event the deceased member does not leave a surviving

  5  spouse, or if the surviving spouse shall die, and the member

  6  leaves an unmarried child or children under age 18, each such

  7  child shall receive a pension of an equal share of the pension

  8  to which said member's surviving spouse was or would have been

  9  entitled. Upon any such child's adoption, marriage, death, or

10  attainment of age 18, the child's pension shall terminate and

11  said child's pension shall be apportioned to the deceased

12  member's remaining eligible children under age 18.

13         3.  Benefits for dependent parents.--In the event a

14  member dies and does not leave a surviving spouse or children

15  eligible to receive a pension provided for in subparagraphs 1.

16  and 2., and the member leaves a parent or parents whom the

17  Board finds to have been dependent upon the member for 50

18  percent or more of their financial support, each such parent

19  shall receive a pension of an equal share of the pension to

20  which the member's surviving spouse would have been entitled.

21  Upon any such parent's remarriage or death, the parent's

22  pension shall terminate.

23         4.  Estate.--In the event a member dies and does not

24  leave a surviving spouse, children, or parents eligible to

25  receive a pension provided for in subparagraph 1.,

26  subparagraph 2., or subparagraph 3., then the benefits

27  remaining, if any, shall be paid to the member's estate.

28         (b)  Death in the line of duty.--In the event a member

29  dies while in the employ of the Department, and the Board

30  finds his or her death to be the natural and proximate result

31  of causes arising out of and in the actual performance of duty

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  as a firefighter in the employ of the City, the following

  2  applicable pensions shall be paid:

  3         1.  Surviving spouse's benefits.--The surviving spouse

  4  shall receive a monthly pension equal to three-fourths of the

  5  duty disability pension the member would otherwise have been

  6  entitled to receive at the time of his or her death. Upon the

  7  surviving spouse's death, the pension shall terminate.

  8         2.  Benefits for children, surviving spouse, etc.--In

  9  the event the deceased member does not leave a surviving

10  spouse, or if the surviving spouse shall die, and the member

11  leaves an unmarried child or children under age 18, each such

12  child shall receive a pension of an equal share of the pension

13  to which the member's surviving spouse was or would have been

14  entitled. Upon any such child's adoption, marriage, death, or

15  attainment of age 18, the child's pension shall terminate and

16  said child's pension shall be apportioned to the deceased

17  member's remaining eligible children under age 18.

18         3.  Benefits for dependent parents.--In the event a

19  member dies and does not leave a surviving spouse or children

20  eligible to receive a pension provided for in subparagraphs 1.

21  and 2., and the member leaves a parent or parents whom the

22  Board finds to have been dependent upon the member for 50

23  percent or more of their financial support, each such parent

24  shall receive a pension of an equal share of the pension to

25  which said member's surviving spouse would have been entitled.

26  Upon any such parent's remarriage or death, the parent's

27  pension shall terminate.

28         4.  Estate.--In the event a member dies and does not

29  leave a surviving spouse, children, or parents eligible to

30  receive a pension provided for in subparagraph 1.,

31  subparagraph 2., or subparagraph 3., then the benefits

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  remaining, if any, shall be paid to the member's estate.

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

  3  retirant, the following applicable pensions shall be paid:

  4         1.  Surviving spouse's benefits.--The surviving spouse

  5  shall receive a pension equal to three-fourths of the

  6  retirant's pension at the time of his or her death. Upon the

  7  surviving spouse's death, the pension shall terminate.

  8         2.  Benefits for children, surviving spouse, etc.--In

  9  the event a deceased retirant does not leave a surviving

10  spouse, or if the surviving spouse shall die, and the retirant

11  leaves an unmarried child or children under age 18, each such

12  child shall receive a pension of an equal share of the pension

13  to which the retirant's surviving spouse was or would have

14  been entitled. Upon any such child's adoption, marriage,

15  death, or attainment of age 18, the child's pension shall

16  terminate and said child's pension shall be apportioned to the

17  deceased retirant's remaining eligible children under age 18.

18         3.  Benefits for dependent parents.--In the event a

19  retirant dies and does not leave a surviving spouse or

20  children eligible to receive a pension provided for in

21  subparagraphs 1. and 2., and the retirant leaves a parent or

22  parents whom the Board finds to have been dependent upon the

23  retirant for 50 percent or more of their financial support,

24  each such parent shall receive a pension of an equal share of

25  the pension to which the retirant's surviving spouse would

26  have been entitled. Upon any such parent's remarriage or

27  death, the parent's pension shall terminate.

28         4.  Estate.--In the event a retirant dies and does not

29  leave a surviving spouse, children, or parents eligible to

30  receive a pension provided for in subparagraph 1.,

31  subparagraph 2., or subparagraph 3., then the benefits

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  remaining, if any, shall be paid to the retirant's estate.

  2         (8)  Acceptance of pension no bar to subsequent

  3  work.--The acceptance of a pension by a member upon retirement

  4  shall not bar the member from engaging in any other business

  5  thereafter.

  6         (9)  Pension not assignable or subject to

  7  garnishment.--The pensions or other benefits accrued or

  8  accruing to any person under the provision of this act and the

  9  accumulated contributions and the cash securities in the Funds

10  created under this act shall not be subject to execution or

11  attachment or to any legal process whatsoever, and shall be

12  unassignable. However, pursuant to a court support order, the

13  Trustees may direct that the retirement benefits be paid for

14  alimony or child support in accordance with rules and

15  regulations adopted by the Board of Trustees.

16         (10)  Transfer of funds.--All funds and assets

17  previously owned and controlled by the West Palm Beach

18  Firemen's Relief and Pension Fund are vested in the Board of

19  this Fund.

20         (11)  Ordinances applicable.--All ordinances of the

21  City applicable to chapter 175, Florida Statutes, are hereby

22  made applicable to this act with equal force and effect. No

23  proposed change or amendment to this act shall be adopted

24  without approval required by section 175.351(2), Florida

25  Statutes.

26         (12)  Existing benefits to continue.--This act, and any

27  amendments thereto, shall not be construed to decrease the

28  benefits payable to, or on account of, any member of the Fund.

29         (13)  Workers' compensation offset.--The pension

30  benefits payable under this act shall not be offset by

31  workers' compensation benefits payable on account of the

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  disability or death of a member except to the extent that the

  2  total of the pension benefits and workers' compensation

  3  benefits exceed the member's monthly average wage.

  4         (14)  Actuarial valuations.--The Fund shall be

  5  actuarially evaluated annually.

  6         (15)  Review procedures.--

  7         (a)  The applicant for benefits under this chapter may,

  8  within 20 days after being informed of the denial of his or

  9  her request for pension benefits, appeal the denial by filing

10  a reply to the proposed order with the pension's secretary. If

11  no appeal is filed within the time period, then the proposed

12  order shall be final.

13         (b)  The Board of Trustees shall hold a hearing within

14  45 days after the receipt of the appeal. Written notice of the

15  hearing shall be sent by certified mail return

16  receipt/restricted to individual, to the applicant at the

17  address listed on the application 10 days prior to the

18  hearing.

19         (c)  The procedures at the hearing shall be as follows:

20         1.  All parties shall have an opportunity to respond,

21  to present physical and testimonial evidence and argument on

22  all issues involved, to conduct cross-examination, to submit

23  rebuttal evidence, and to be represented by counsel. Medical

24  reports and depositions may be accepted in lieu of live

25  testimony at the Board's discretion.

26         2.  All witnesses shall be sworn.

27         3.  The applicant and the Board shall have an

28  opportunity to question all witnesses.

29         4.  Formal rules of evidence and formal rules of civil

30  procedure shall not apply. The proceedings shall comply with

31  the essential requirements of due process and law.

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1         5.  The record in a case governed by this subsection

  2  shall consist only of:

  3         a.  A tape recording of the hearing, to be taped and

  4  maintained as part of the official files of the Board of

  5  Trustees by the pension's secretary.

  6         b.  Evidence received or considered.

  7         c.  All notices, pleadings, motions, and intermediate

  8  rulings.

  9         d.  Any decisions, opinions, proposed or recommended

10  orders, or reports by the Board of Trustees.

11         (d)  Within 5 days after the first hearing, the Board

12  shall take one of the following actions:

13         1.  Grant the pension benefits by overturning the

14  proposed order by a majority vote.

15         2.  Deny the benefits and approve the proposed order as

16  a final order after making any changes in the order the Board

17  feels is necessary.

18         (e)  Findings of fact by the Board shall be based on

19  competent, substantial evidence on the record.

20         (f)  Within 20 calendar days after rendering its order,

21  the Board of Trustees shall send to the applicant, by

22  certified mail return receipt/restricted to individual, a copy

23  of the order.

24         (g)  The applicant may seek review of the order by the

25  Board of Trustees by filing a petition for writ of certiorari

26  with the circuit court within 30 days.

27         (16)  Lump sum payment of small retirement

28  income.--Notwithstanding any provision of the Fund to the

29  contrary, if the single sum value of the accrued retirement

30  income is less than $5,000 as of the date of retirement or

31  termination of service, whichever is applicable, the Board of

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  Trustees, in the exercise of its discretion, may specify that

  2  the actuarial equivalent of such retirement income be paid in

  3  lump sum.

  4         (17)  Pickup of employee contributions.--Effective the

  5  first day of the first full payroll period of the first

  6  calendar quarter following receipt of a favorable

  7  determination letter from the Internal Revenue Service, the

  8  City shall pick up the member contribution required by this

  9  section. The contributions so picked up shall be treated as

10  employer contributions in determining tax treatment under the

11  United States Internal Revenue Code. The City shall pick up

12  the member contributions from funds established and available

13  for salaries, which funds would otherwise have been designated

14  as member contributions and paid to the Fund. Member

15  contributions picked up by the City pursuant to this

16  subsection shall be treated for all other purposes of making a

17  refund of members' contributions, and for all other purposes

18  of this and other laws, in the same manner and to the same

19  extent as member contributions made prior to the effective

20  date of this subsection. The intent of this subsection is to

21  comply with section 414(H)(2) of the Internal Revenue Code.

22         (18)  Internal Revenue Code limits.--

23         (a)  In no event may a member's annual benefit exceed

24  $160,000, adjusted for cost of living in accordance with

25  Internal Revenue Code ("IRC") Section 415(d).

26         (b)  If a member has less than 10 years of service with

27  the City, the applicable limitation in paragraph (a) shall be

28  reduced by multiplying such limitation by a fraction, not to

29  exceed 1. The numerator of such fraction shall be the number

30  of years, or part thereof, of service with the City; the

31  denominator shall be 10 years.

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1         (c)  For purposes of this subsection, "annual benefit"

  2  means a benefit payable annually in the form of a straight

  3  life annuity with no ancillary or incidental benefits and with

  4  no member or rollover contributions. To the extent that

  5  ancillary benefits are provided, the limits set forth in

  6  paragraph (a) shall be reduced actuarially, using an interest

  7  rate assumption equal to the greater of 5 percent or the rate

  8  being used for actuarial equivalence, to reflect such

  9  ancillary benefits.

10         (d)  If distribution of retirement benefits begins

11  before age 62, the dollar limitation as described in paragraph

12  (a) shall be reduced using an interest rate assumption equal

13  to the greater of 5 percent or the interest rate used for

14  actuarial equivalence; however, retirement benefits shall not

15  be reduced below $75,000 if payment of benefits begins at or

16  after age 55, and not below the actuarial equivalent of

17  $75,000 if payment of benefits begins before age 55. For a

18  member with 15 or more years of service with the City, the

19  reductions described above shall not reduce such member's

20  benefit below $50,000, adjusted for cost of living in

21  accordance with IRC Section 415(d), but only for the year in

22  which such adjustment is effective. If retirement benefits

23  begin after age 65, the dollar limitation of paragraph (a)

24  shall be increased actuarially by using an interest assumption

25  equal to the lesser of 5 percent or the rate used for

26  actuarial equivalence.

27         (e)  Compensation in excess of limitations set forth in

28  Section 401(a)(17) of the Internal Revenue Code shall be

29  disregarded. The limitation on compensation for an eligible

30  employee shall not be less than the amount which was allowed

31  to be taken into account hereunder as in effect on July 1,

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  1993. "Eligible employee" is an individual who was a member

  2  before the first plan year beginning after December 31, 1995.

  3         (19)  Required distributions.--In accordance with IRC

  4  Section 401(9)(C), any and all benefit payments shall begin by

  5  the later of:

  6         (a)  April 1 of the calendar year following the

  7  calendar year of the member's retirement date; or

  8         (b)  April 1 of the calendar year following the

  9  calendar year in which the employee attains age 70 1/2.

10         (20)  Miscellaneous requirements.--

11         (a)  No benefit of any kind shall be payable from the

12  assets of the Pension Fund unless specifically provided for in

13  this act; however, the Board of Trustees, with the approval of

14  the City, may grant ad hoc benefits after a public hearing and

15  acceptance by the state of an actuarial impact statement

16  submitted pursuant to part VII of chapter 112, Florida

17  Statutes.

18         (b)  The City may not offset any part of its required

19  annual contribution by the Fund's assets except as determined

20  in an actuarial valuation, the report for which is determined

21  to be state accepted pursuant to part VII of chapter 112,

22  Florida Statutes.

23         (c)  All provisions of this act and operations of the

24  Pension Fund shall be carried out in compliance with part VII

25  of chapter 112, Florida Statutes.

26         (d)  False or misleading statements made to obtain

27  retirement benefits prohibited.--

28         1.  It is unlawful for a person to willfully and

29  knowingly make, or cause to be made, or to assist, conspire

30  with, or urge another to make, or cause to be made, any false,

31  fraudulent, or misleading oral or written statement or to

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  withhold or conceal material information to obtain any benefit

  2  under this plan.

  3         2.a.  A person who violates subparagraph 1. commits a

  4  misdemeanor of the first degree, punishable as provided in

  5  section 775.082 or section 775.083, Florida Statutes.

  6         b.  In addition to any applicable criminal penalty,

  7  upon conviction for a violation of subparagraph 1., a

  8  participant or beneficiary of this plan may, in the discretion

  9  of the Board of Trustees, be required to forfeit the right to

10  receive any or all benefits to which the person would

11  otherwise be entitled under this Plan. For the purposes of

12  this sub-subparagraph, "conviction" means a determination of

13  guilt that is the result of a plea or trial, regardless of

14  whether adjudication is withheld.

15         (21)  Rollover distributions.--

16         (a)  This subsection applies to distributions made on

17  or after January 1, 1993. Notwithstanding any provision of the

18  Plan to the contrary that would otherwise limit a

19  distributee's election under this subsection, a distributee

20  may elect, at the time and in the manner prescribed by the

21  Board of Trustees, to have any portion of an eligible rollover

22  distribution paid directly to an eligible retirement plan

23  specified by the distributee in a direct rollover.

24         (b)1.  "Eligible rollover distribution" is any

25  distribution of all or any portion of the balance to the

26  credit of the distributee, except that an eligible rollover

27  does not include any distribution that is one of a series of

28  substantially equal periodic payments (not less frequently

29  than annually) made for the life (or life expectancy) of the

30  distributee or the joint lives (or joint life expectancies) of

31  the distributee and the distributee's designated beneficiary,

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  or for a specified period of 10 years or more; any

  2  distribution to the extent such distribution is required under

  3  section 401(a)(9) of the Code; and the portion of any

  4  distribution that is not includable in gross income.

  5         2.  "Eligible retirement plan" is an individual

  6  retirement account described in section 408(a) of the Code, an

  7  individual retirement annuity described in section 408(b) of

  8  the Code, an annuity plan described in section 403(a) of the

  9  Code, or a qualified trust described in section 401(a) of the

10  Code that accepts the distributee's eligible rollover

11  distribution. However, in the case of an eligible rollover

12  distribution to the surviving spouse, an "eligible retirement

13  plan" is an individual retirement account or individual

14  retirement annuity.

15         3.  "Distributee" includes an employee or former

16  employee. In addition, the employee's or former employee's

17  surviving spouse and the employee's or former employee's

18  spouse or former spouse who is entitled to payment for alimony

19  and child support under a domestic relations order determined

20  to be qualified by this Fund are distributees with regard to

21  the interest of the spouse or former spouse.

22         4.  "Direct rollover" is a payment by the Plan to the

23  eligible retirement plan specified by the distributee.

24         (22)  Rollovers from qualified plans.--

25         (a)  A member may roll over all or part of his or her

26  assets in another qualified plan to his or her chapter 175,

27  Florida Statutes, share account, provided all of the following

28  requirements are met:

29         1.  Some or all of the amount distributed from the

30  other plan is rolled over to this plan no later than the 60th

31  day after distribution was made from the plan or, if

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  distributions are made in installments, no later than the 60th

  2  day after the last distribution was made.

  3         2.  The amount rolled over to the share account does

  4  not include any amounts contributed by the member to the plan

  5  on a posttax basis.

  6         3.  The rollover is made in cash.

  7         4.  The member certifies that the distribution is

  8  eligible for a rollover.

  9         5.  Amounts which the Trustee accepts as a rollover to

10  this Fund shall, along with any earnings allocated to the

11  Trustee, be fully vested at all times.

12

13  The rollover may also be made to this plan from an individual

14  retirement account qualified under Code Section 408 when the

15  individual retirement was merely used as a conduit for funds

16  from another qualified plan and the rollover is made in

17  accordance with the rules provided in subparagraphs 1.-5.

18  Amounts rolled over may be segregated from other Fund assets.

19  The Trustee shall separately account for gains, losses, and

20  administrative expenses on these rollovers as provided for in

21  paragraphs (5)(d) and (j). In addition, the Fund may accept

22  the direct transfer of a member's benefits from another

23  qualified retirement plan or Internal Revenue Code section 457

24  plan. The Fund shall account for direct transfers in the same

25  manner as a rollover and shall obtain certification from the

26  member that the amounts are eligible for a rollover or direct

27  transfer to this Fund.

28         (b)  Transfer of accumulated leave.--

29         1.  Members eligible to receive accumulated sick leave,

30  accumulated vacation leave, or any other accumulated leave

31  payable upon separation shall have the leave transferred to

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  the Fund up to the amount permitted by law. Any additional

  2  amounts shall be paid directly to the member. Members on whose

  3  behalf leave has been transferred shall maintain the entire

  4  amount of the transferred leave balance in the DROP or Share

  5  Account.

  6         2.  If a member on whose behalf the City makes a

  7  transferred leave balance to the Plan dies after retirement or

  8  other separation, then any person who would have received a

  9  death benefit had the member died in service immediately prior

10  to the date of retirement or other separation shall be

11  entitled to receive an amount equal to the transferred leave

12  balance in a lump sum. In the case of a surviving spouse or

13  former spouse, an election may be made to transfer the leave

14  balance to an eligible retirement plan in lieu of the lump sum

15  payment. Failure to make such an election by the surviving

16  spouse or former spouse within 60 days after the member's

17  death shall be deemed an election to receive the lump sum

18  payment.

19         3.  The Board, by rule, shall prescribe the method for

20  implementing the provisions of this paragraph.

21         4.  Amounts transferred under this section shall remain

22  invested in the Pension Fund for a period of not less than 1

23  year.

24         (23)  Actuarial assumptions.--The following actuarial

25  assumptions shall be used for all purposes in connection with

26  this Fund, effective October 1, 1998:

27         (a)  The period for amortizing current, future, and

28  past actuarial gains or losses shall be 20 years.

29         (b)  The assumed investment rate of return shall be

30  8.25 percent.

31         (24)  Prior firefighter service.--Unless otherwise

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  prohibited by law, the years, or fractional parts of years,

  2  that a member previously served as a firefighter with the City

  3  during a period of employment and for which accumulated

  4  contributions were withdrawn from the fund, or the years, and

  5  fractional parts of years, that a member served as a

  6  firefighter for this or any other municipal, county, or state

  7  fire department or district or any time served in the military

  8  service of the Armed Forces of the United States shall be

  9  added to the years of credited service, provided that the

10  member contributes to the fund the sum that would have been

11  contributed, based on the member's salary and the employee

12  contribution rate in effect at the time that the credited

13  service is requested, had the member been a member of this

14  system for the years, or fractional parts of years, for which

15  the credit is requested, plus the amount actuarially

16  determined, such that the crediting of service does not result

17  in any cost to the fund, plus payment of costs for all

18  professional services rendered to the board in connection with

19  the purchase of years of credited service.

20         (a)  Payment by the member of the required amount may

21  be made within 6 months after the request for credit and in

22  one lump sum payment, or the member may buy back this time

23  over a period equal to the length of time being purchased or 5

24  years, whichever is greater, at an interest rate which is

25  equal to the Fund's actuarial assumption. A member may request

26  to purchase some or all years of service.

27         (b)  The credit purchased under this section shall

28  count for all purposes, except vesting.

29         (c)  In no event, however, may credited service be

30  purchased pursuant to this section for prior service with any

31  other municipal, county, or state fire department or district,

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 975

    Amendment No. 1 (for drafter's use only)





  1  if such prior service forms or will form the basis of a

  2  retirement benefit or pension from another retirement system

  3  or plan.

  4         (d)  In the event that a member who is in the process

  5  of purchasing service suffers a disability and is awarded a

  6  benefit from the plan, the member shall not be required to

  7  complete the buyback. However, contributions made prior to the

  8  date the disability payment begins will be retained by the

  9  Fund.

10         (e)  If a member who has either completed the purchase

11  of service or is in the process of purchasing service

12  terminates before vesting, the member's contributions shall be

13  refunded, including the buyback contributions.

14         (f)  A request to purchase service may be made at any

15  time during the course of employment; however, the buyback is

16  a one-time opportunity.

17         Section 2.  All special laws and parts of special laws,

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

19  inconsistent with the provisions of this act, are repealed.

20         Section 3.  This act shall take effect upon becoming a

21  law.

22

23

24

25

26

27

28

29

30

31

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