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