HB 0549 2003
1	CHAMBER ACTION
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6	The Committee on Local Government & Veterans' Affairs recommends
7	the following:
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9	Committee Substitute
10	Remove the entire bill and insert:
11	A bill to be entitled
12	An act relating to the West Palm Beach Police Pension Fund
13	of the City of West Palm Beach, Palm Beach County;
14	revising provisions relating to chapter 185 share accounts
15	and deferred retirement option plan accounts; providing an
16	effective date.
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18	Be It Enacted by the Legislature of the State of Florida:
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20	Section 1. Subparagraph 3. of paragraph (c) of subsection
21	(11) of section 16 of chapter 24981, Laws of Florida, 1947, as
22	amended by chapter 2002-359, Laws of Florida, is amended to
23	read:
24	Section 16. West Palm Beach Police Pension Fund.--
25	(11) Chapter 185 share accounts.--
26	(c) Annual allocation of accounts.--
27	3. Effective October 1, 2002, vested Participants have the
28	option to select between two methods to credit investment
29	earnings to their account. The method may be changed each year
30	effective October 1; however, the method must be elected prior
31	to October 1. The methods are:
32	a.The investment earnings (or losses) credited to the
33	individual member accounts shall be the same percentage as are
34	earned (or lost) by the total investment earnings (or losses) of
35	the Fund as a whole, unless the Board dedicates a separate
36	investment portfolio for chapter 185, Florida Statutes, share
37	accounts, in which case the investment earnings (or losses)
38	shall be measured by the investment earnings (or losses) of the
39	separate investment portfolio.
40	b. A fixed annual rate of 8.25 percent.
41	Section 2. Subparagraphs 4. and 5. of paragraph (a) of
42	subsection (13) of section 16 of chapter 24981, Laws of Florida,
43	1947, as amended by chapter 2002-359, Laws of Florida, are
44	amended to read:
45	Section 16. West Palm Beach Police Pension Fund.--
46	(13) Deferred Retirement Option Plan (DROP).--
47	(a) Eligibility to participate in the DROP.--
48	4. Upon a member’s election to participate in the DROP, he
49	or she shall cease to be a member and shall no longer accrue any
50	benefits under the Pension Fund, except for the benefits
51	provided under subsection (11), Chapter 185 share accounts. For
52	all Fund purposes, the member becomes a retirant, except that a
53	DROP participant shall continue to receive shares of the chapter
54	moneys in accordance with subsection (11), Chapter 185 share
55	accounts. DROP members shall also be eligible to vote as
56	members for purposes of election of the member-trustee.The
57	amount of credited service shall freeze as of the date of entry
58	into the DROP.
59	5. Notwithstanding any provision of this section to the
60	contrary, the Police Chief in the Department may, at his or her
61	option, extend his or her participation in the DROP beyond 5
62	years or 30 years of total service. For purposes of this
63	subsection, "Police Chief" means a member who has been promoted
64	from police officer through the ranks of the Department to the
65	position of Police Chief. Any such Police Chief shall not
66	participate in the DROP beyond the attainment of 33 years of
67	service, and the total years of participation in the DROP shall
68	not exceed 8 years.
69	Section 3. Subparagraph 2. of paragraph (b) of subsection
70	(13) of section 16 of chapter 24981, Laws of Florida, 1947, as
71	amended by chapter 2002-359, Laws of Florida, is amended to
72	read:
73	Section 16. West Palm Beach Police Pension Fund.--
74	(13) Deferred Retirement Option Plan (DROP).--
75	(b) Amounts payable upon election to participate in
76	DROP.--
77	2. Effective October 1, 2002, DROP Participants have the
78	option to select between two methods to credit investment
79	earnings to their account. The method may be changed each year
80	effective October 1; however, the method must be elected prior
81	to October 1. The methods are:
82	a.Payments to the DROP earn interestEarningsusing the
83	rate of investment return earned (or lost)on Pension Fund
84	assets as reported by the Fund's investment monitor. DROP
85	assets are commingled with the Pension Fund assets for
86	investment purposes.
87	b. A fixed rate of 8.25 percent.
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89	However, if a police officer does not terminate employment at
90	the end of participation in the DROP, interest credits shall
91	cease on the current balance and on all future DROP deposits.
92	Section 4. Sub-subparagraph e. is added to subparagraph 4.
93	of paragraph (b) of subsection (13) of section 16 of chapter
94	24981, Laws of Florida, 1947, amended by chapter 2002-359, Laws
95	of Florida, to read:
96	Section 16. West Palm Beach Police Pension Fund.--
97	(13) Deferred Retirement Option Plan (DROP).--
98	(b) Amounts payable upon election to participate in
99	DROP.--
100	4. Upon termination of employment, participants in the
101	DROP shall receive the balance of the DROP account in accordance
102	with the following rules:
103	e. Costs, fees, and expenses of administration shall be
104	debited from the individual member accounts on a proportionate
105	basis, taking the cost, fees, and expenses of administration of
106	the Fund as a whole, multiplied by a fraction, the numerator of
107	which is the total assets in all individual member accounts and
108	the denominator of which is the total assets of the Fund as a
109	whole.
110	Section 5. This act shall take effect upon becoming a law.