HB 0549 2003
1	A bill to be entitled
2	An act relating to the West Palm Beach Police Pension Fund
3	of the City of West Palm Beach, Palm Beach County;
4	revising provisions relating to membership of the Board of
5	Trustees, chapter 185 share accounts, and deferred
6	retirement option plan accounts; providing for the repeal
7	of any part of the special act or resolution in conflict
8	herewith; providing an effective date.
9
10	Be It Enacted by the Legislature of the State of Florida:
11
12	Section 1. Paragraph (a) of subsection (3) of section 16
13	of chapter 24981, Laws of Florida, 1947, as amended by chapter
14	2002-359, Laws of Florida, is amended to read:
15	Section 16. West Palm Beach Police Pension Fund.--
16	(3) Board of Trustees of Police Pension Fund.--
17	(a) Board of Trustees created.--There is hereby created a
18	Board of Trustees, which shall be solely responsible for
19	administering the West Palm Beach Police Pension Fund. The
20	Board shall be a legal entity, with the power to bring and
21	defend lawsuits of every kind, nature, and description and shall
22	be independent of the City to the extent required to accomplish
23	the intent, requirements, and responsibilities provided for in
24	this act. The Board shall consist of sevenfivetrustees, as
25	follows:
26	1. ThreeTwolegal residents of the City, who shall be
27	appointed by the City. Each resident trustee shall serve as a
28	trustee for a period of 2 years, unless sooner replaced by the
29	City, at whose pleasure he or she shall serve, and may succeed
30	himself or herself as a trustee.
31	2. Two police officers, who shall be elected by a majority
32	of the police officers who are members of the Fund. Elections
33	shall be held under such reasonable rules and regulations as the
34	Board shall from time to time adopt. Each member-trustee shall
35	serve as trustee for a period of 2 years, unless he or she
36	sooner ceases to be a police officer in the employ of the
37	Department, whereupon the membermembersshall choose his or her
38	successor in the same manner as the original appointment. Each
39	member-trustee of the Fund may succeed himself or herself as a
40	trustee.
41	3. One member who is a retirant from the Fund, who shall
42	be elected by a majority of the retirants of the Fund.
43	Elections shall be held under such reasonable rules and
44	regulations as the Board shall from time to time adopt. Each
45	retirant-trustee shall serve as trustee for a period of 2 years,
46	unless he or she sooner resigns, whereupon the retirants shall
47	choose his or her successor in the same manner as the original
48	appointment. Each retirant-trustee of the Fund may succeed
49	himself or herself as a trustee.
50	4.3. A seventhfifthtrustee, who shall be chosen by a
51	majority of the other sixfour trustees. This seventhfifth
52	person's name shall be submitted to the City, which shall, as a
53	ministerial duty, appoint such person to the Board as a seventh
54	fifth trustee. The seventhfifthperson shall serve as trustee
55	for a period of 2 years, and may succeed himself or herself as a
56	trustee.
57	Section 2. Subparagraph 3. of paragraph (c) of subsection
58	(11) of section 16 of chapter 24981, Laws of Florida, 1947, as
59	amended by chapter 2002-359, Laws of Florida, is amended to
60	read:
61	Section 16. West Palm Beach Police Pension Fund.--
62	(11) Chapter 185 share accounts.--
63	(c) Annual allocation of accounts.--
64	3. Effective October 1, 2002, vested Participants have the
65	option to select between two methods to credit investment
66	earnings to their account. The method may be changed each year
67	effective October 1; however, the method must be elected prior
68	to October 1. The methods are:
69	a.The investment earnings (or losses) credited to the
70	individual member accounts shall be the same percentage as are
71	earned (or lost) by the total investment earnings (or losses) of
72	the Fund as a whole, unless the Board dedicates a separate
73	investment portfolio for chapter 185, Florida Statutes, share
74	accounts, in which case the investment earnings (or losses)
75	shall be measured by the investment earnings (or losses) of the
76	separate investment portfolio.
77	b. A fixed annual rate of 8.25 percent.
78	Section 3. Subparagraphs 4. and 5. of paragraph (a) of
79	subsection (13) of section 16 of chapter 24981, Laws of Florida,
80	1947, as amended by chapter 2002-359, Laws of Florida, are
81	amended to read:
82	Section 16. West Palm Beach Police Pension Fund.--
83	(13) Deferred Retirement Option Plan (DROP).--
84	(a) Eligibility to participate in the DROP.--
85	4. Upon a member’s election to participate in the DROP, he
86	or she shall cease to be a member and shall no longer accrue any
87	benefits under the Pension Fund, except for the benefits
88	provided under subsection (11), Chapter 185 share accounts. For
89	all Fund purposes, the member becomes a retirant, except that a
90	DROP participant shall continue to receive shares of the chapter
91	moneys in accordance with subsection (11), Chapter 185 share
92	accounts. DROP members shall also be eligible to vote as
93	members for purposes of election of the member-trustee.The
94	amount of credited service shall freeze as of the date of entry
95	into the DROP.
96	5. Notwithstanding any provision of this section to the
97	contrary, the Police Chief in the Department may, at his or her
98	option, extend his or her participation in the DROP beyond 5
99	years or 30 years of total service. For purposes of this
100	subsection, "Police Chief" means a member who has been promoted
101	from police officer through the ranks of the Department to the
102	position of Police Chief. Any such Police Chief shall not
103	participate in the DROP beyond the attainment of 33 years of
104	service, and the total years of participation in the DROP shall
105	not exceed 8 years.
106	Section 4. Subparagraph 2. of paragraph (b) of subsection
107	(13) of section 16 of chapter 24981, Laws of Florida, 1947, as
108	amended by chapter 2002-359, Laws of Florida, is amended to
109	read:
110	Section 16. West Palm Beach Police Pension Fund.--
111	(13) Deferred Retirement Option Plan (DROP).--
112	(b) Amounts payable upon election to participate in
113	DROP.--
114	2. Effective October 1, 2002, DROP Participants have the
115	option to select between two methods to credit investment
116	earnings to their account. The method may be changed each year
117	effective October 1; however, the method must be elected prior
118	to October 1. The methods are:
119	a.Payments to the DROP earn interestEarningsusing the
120	rate of investment return earned (or lost)on Pension Fund
121	assets as reported by the Fund's investment monitor. DROP
122	assets are commingled with the Pension Fund assets for
123	investment purposes.
124	b. A fixed rate of 8.25 percent.
125
126	However, if a police officer does not terminate employment at
127	the end of participation in the DROP, interest credits shall
128	cease on the current balance and on all future DROP deposits.
129	Section 5. Sub-subparagraph e. is added to subparagraph 4.
130	of paragraph (b) of subsection (13) of section 16 of chapter
131	24981, Laws of Florida, 1947, amended by chapter 2002-359, Laws
132	of Florida, to read:
133	Section 16. West Palm Beach Police Pension Fund.--
134	(13) Deferred Retirement Option Plan (DROP).--
135	(b) Amounts payable upon election to participate in
136	DROP.--
137	4. Upon termination of employment, participants in the
138	DROP shall receive the balance of the DROP account in accordance
139	with the following rules:
140	e. Costs, fees, and expenses of administration shall be
141	debited from the individual member accounts on a proportionate
142	basis, taking the cost, fees, and expenses of administration of
143	the Fund as a whole, multiplied by a fraction, the numerator of
144	which is the total assets in all individual member accounts and
145	the denominator of which is the total assets of the Fund as a
146	whole.
147	Section 6. All special laws and parts of special laws,
148	ordinances, or regulations, insofar as they are in conflict or
149	inconsistent with the provisions of this act, are repealed.
150	Section 7. This act shall take effect upon becoming a law.