HB 0777

1	A bill to be entitled
2	An act relating to the City of West Palm Beach, Palm Beach
3	County; amending chapter 24981 (1947), Laws of Florida, as
4	amended; revising provisions relating to the West Palm
5	Beach Firefighters Pension Fund; revising definition of
6	the term "final average salary"; revising provisions
7	relating to permissible investments; revising provisions
8	relating to the BackDROP; providing for loans from the
9	BackDROP; clarifying provisions relating to benefits of
10	the surviving spouse of a member who dies in line of duty;
11	providing an effective date.
12
13	Be It Enacted by the Legislature of the State of Florida:
14
15	Section 1.  Section 17 of chapter 24981 (1947), Laws of
16	Florida, as amended by chapters 2002-360, 2003-347, and 2004-
17	462, Laws of Florida, is amended to read:
18	Section 17.  West Palm Beach Firefighters Pension Fund.--
19	(1)  Creation of fund.--There is hereby created a special
20	fund for the Fire Department of the City of West Palm Beach to
21	be known as the West Palm Beach Firefighters Pension Fund. All
22	assets of every description held in the name of the West Palm
23	Beach Firemen's Relief and Pension Fund and in the name of the
24	West Palm Beach Firefighters Pension Fund have been and shall
25	continue to be combined.
26	(a)  Definitions.--The following words or phrases, as used
27	in this act, shall have the following meanings, unless a
28	different meaning is clearly indicated by the context:
29	1.  "Actuarial equivalent value," "actuarial equivalence,"
30	or "single sum value" means the stated determination using an
31	interest rate of 8.25 percent per year and the 1983 Group
32	Annuity Mortality Table for males.
33	2.  "Beneficiary" means any person who is not at retirement
34	but who is entitled to receive a benefit from the West Palm
35	Beach Firefighters Pension Fund or the West Palm Beach Firemen's
36	Relief and Pension Fund, as applicable.
37	3.  "Board of Trustees" or "Board" means the Board of
38	Trustees provided for in this act.
39	4.  "City" means the City of West Palm Beach, Florida.
40	5.  "Department" means the Fire Department of the City.
41	6.  "Enrolled actuary" means an actuary who is enrolled
42	under Subtitle C of Title III of the Employee Retirement Income
43	Security Act of 1974 and who is a member of the Society of
44	Actuaries or the American Academy of Actuaries.
45	7.  "Final average salary" means the average of the monthly
46	salary paid a member in the 2 best years of employment, paid in
47	and prior to the 23rd year of credited service. No active
48	nonDROP member shall have any salary amounts paid prior to
49	October 1, 2000, used in the calculation of final average
50	salary. Those members whose final average salary would include
51	salary amounts paid prior to October 1, 2000, shall use salary
52	paid during the period from October 1, 2000, through September
53	30, 2001, to replace any salary amounts paid prior to October 1,
54	2000. The replacement salary from October 1, 2000, through
55	September 30, 2001, may range anywhere between 2 weeks and 104
56	weeks, but shall only be enough salary as is sufficient to
57	replace the salary paid prior to October 1, 2000. The
58	replacement salary amounts from October 1, 2000, to September
59	30, 2001, shall be prorated based upon an annual salary.
60	8.  "Firefighter" means any person employed in the
61	Department who is certified as a firefighter as a condition of
62	employment in accordance with the provisions of section 633.35,
63	Florida Statutes.
64	9.  "Fund" or "Pension Fund" means the West Palm Beach
65	Firefighters Pension Fund or the West Palm Beach Firemen's
66	Relief and Pension Fund, as applicable.
67	10.  "Member" means any person who is included in the
68	membership of the Fund in accordance with paragraph (h).
69	11.  "Pension" means a monthly amount payable from the Fund
70	throughout the future life of a person, or for a limited period
71	of time, as provided in this act.
72	12.  "Qualified health professional" means a person duly
73	and regularly engaged in the practice of his or her profession
74	who holds a professional degree from a university or college and
75	has had special professional training or skill regarding the
76	physical or mental condition, disability, or lack thereof, upon
77	which he or she is to present evidence to the Board.
78	13.  "Qualified public depository" means any bank or
79	savings association organized and existing under the laws of
80	Florida and any bank or savings association organized under the
81	laws of the United States that has its principal place of
82	business in Florida, or has a branch office which is authorized
83	under the laws of Florida or the United States to receive
84	deposits in Florida, that meets all of the requirements of
85	chapter 280, Florida Statutes, and that has been designated by
86	the Treasurer of the State of Florida as a qualified public
87	depository.
88	14.  "Retirant" or "retiree" means any member who retires
89	with a pension payable from the Fund.
90	15.  "Retirement" means a member's withdrawal from City
91	employment with a pension payable from the Fund.
92	16.  "Salary" means:
93	a.  The fixed monthly compensation paid to a firefighter
94	and shall include those items that have been included as
95	compensation in accordance with past practice. However, the term
96	shall not be construed to include lump sum payments for
97	accumulated leave.
98	b.  On and after October 1, 2001, "salary," for the purpose
99	of pension contributions, shall be defined as payments made to a
100	firefighter by the City for: regular hours worked; step-up pay;
101	longevity pay; all authorized leave time, which includes
102	compensatory time used, earned personal leave used, emergency
103	leave used, sick leave used, sick leave pay bank used, vacation
104	time used, holiday time used, emergency leave, bereavement
105	leave, and administrative leave; certification pay, which
106	includes paramedic, hazardous material technician, special
107	operations, dive rescue, fire service instructor, fire
108	inspector, and SWAT certification pay; fire inspector standby
109	pay; educational bonus incentive; pay received from the City
110	during military training; and sick leave conversion when such
111	leave is converted during the course of active employment. The
112	definition of "salary" specifically excludes any lump sum
113	payments for accumulated leave such as that received upon final
114	payoff. Employees who are specifically excluded from bargaining
115	unit recognition as set forth in Article 2, but who are members
116	of the West Palm Beach Firefighters Pension Fund, shall continue
117	to make contributions on management incentive benefits. This
118	definition of compensation shall not include any duty employment
119	that is performed for other than the City of West Palm Beach per
120	Article 31, Salary Plan.
121	17.  "Service," "credited service," or "service credit"
122	means the total number of years, and fractional parts of years,
123	of employment of any member in the employ of the Department,
124	omitting intervening years and fractional parts of years of
125	service when the member was not employed by the City. However,
126	no member shall receive credit for years, or fractional parts of
127	years, of service for which the member has withdrawn his or her
128	contributions to the Fund, unless the member repays into the
129	Fund the contributions withdrawn, with interest, within 60
130	months after reemployment. Further, a member may voluntarily
131	leave his or her contributions in the Fund for a period of 5
132	years after leaving the employ of the Department, pending the
133	possibility of his or her being rehired by the Department and
134	remaining employed for a period of not less than 3 years,
135	without losing credit for the time he or she has participated
136	actively as a firefighter. If he or she does not remain employed
137	for a period of at least 3 years as a firefighter with the
138	Department upon reemployment, within 5 years his or her
139	contributions shall be returned without interest in accordance
140	with paragraph (5)(i). In determining the aggregate number of
141	years of service of any member, the time spent in the military
142	service of the United States or United States Merchant Marine by
143	the member on leave of absence from the Department for such
144	reason shall be added to the years of service, provided such
145	time shall not exceed 5 years. Further, to receive credit for
146	such service the member must return to employment as a
147	firefighter of the City within 1 year after the date of release
148	from such active service.
149	(b)  Gender and number.--The masculine gender includes the
150	feminine, and words of the singular with respect to persons
151	shall include the plural and vice versa.
152	(c)  Board of Trustees created.--There is hereby created a
153	Board of Trustees, which shall be solely responsible for
154	administering the West Palm Beach Firefighters Pension Fund and
155	the West Palm Beach Firemen's Relief and Pension Fund. The Board
156	shall be a legal entity, with the power to bring and defend
157	lawsuits of every kind, nature, and description, and shall be
158	independent of the City to the extent required to accomplish the
159	intent, requirements, and responsibilities provided for in this
160	act and applicable law. The Board shall consist of five
161	trustees, as follows:
162	1.  Two legal residents of the City, who shall be appointed
163	by the City. Each resident-trustee shall serve as a trustee for
164	a period of 2 years, unless sooner replaced by the City, at
165	whose pleasure he or she shall serve, and may succeed himself or
166	herself as trustee.
167	2.  Two full-time firefighters shall be elected by a
168	majority of the firefighters who are members of the Fund.
169	Elections shall be held under such reasonable rules and
170	regulations as the Board shall from time to time adopt. Each
171	member-trustee shall serve as a trustee for a period of 2 years,
172	unless he or she sooner ceases to be a firefighter in the employ
173	of the Department, whereupon the members shall choose a
174	successor in the same manner as the original appointment. Each
175	member-trustee may succeed himself or herself as trustee.
176	3.  A fifth trustee shall be chosen by a majority of the
177	other four trustees. This fifth person's name shall be submitted
178	to the City, which shall, as a ministerial duty, appoint such
179	person to the Board as a fifth trustee. The fifth person shall
180	serve as trustee for a period of 2 years, and may succeed
181	himself or herself as trustee.
182	(d)  Board vacancy; how filled.--In the event a trustee
183	provided for in subparagraph (c)2. ceases to be a firefighter in
184	the employ of the Department, such trustee shall be considered
185	to have resigned from the Board. In the event a trustee provided
186	for in subparagraph (c)2. shall resign, be removed, or become
187	ineligible to serve as a trustee, the Board shall, by
188	resolution, declare the office of trustee vacated as of the date
189	of adoption of said resolution. If such a vacancy occurs in the
190	office of trustee within 90 days of the next succeeding election
191	for trustee, the vacancy shall be filled at the next regular
192	election for the next term; otherwise, the vacancy shall be
193	filled for the unexpired portion of the term by the members in
194	the same manner as an original appointment. In the event a
195	trustee provided for in subparagraph (c)1. or subparagraph (c)3.
196	shall resign, be removed, or become ineligible to serve as a
197	trustee, the Board shall, by resolution, declare the office of
198	trustee vacated as of the date of adoption of said resolution. A
199	successor for the unexpired portion of the term shall be chosen
200	in the same manner as an original appointment.
201	(e)  Board meetings; quorum; procedures.--The Board shall
202	hold meetings regularly, at least once in each quarter year, and
203	shall designate the time and place thereof. At any meeting of
204	the Board, three trustees shall constitute a quorum. Each
205	trustee shall be entitled to one vote on each question before
206	the Board and at least three concurring votes shall be required
207	for a decision by the Board at any of its meetings. The Board
208	shall adopt its own rules of procedure and shall keep a record
209	of its proceedings. All public records of the Fund shall be kept
210	and maintained as required by law. All meetings of the Board
211	shall be open to the public and shall be held as required by
212	law.
213	(f)  Board chair.--The Board shall elect a chair from among
214	the trustees.
215	(g)  Board secretary.--The Board shall elect a secretary
216	from among the trustees. The secretary shall keep a complete
217	minute book of the actions, proceedings, and hearings of the
218	Board.
219	(h)  Membership.--All firefighters and all who hold a
220	position of firefighter in the employ of the Department shall be
221	members in the Fund. All firefighters, including the chief, who
222	were in the employ of the Department as of April 30, 1959, shall
223	be given credit for service rendered in the employ of the
224	Department prior to May 1, 1959. New members to the Fund are
225	required to undergo a physical examination for purposes of
226	determining preexisting conditions. This physical examination
227	shall be conducted in conjunction with the City's postoffer,
228	preemployment physical examination. The Board's medical director
229	shall review the results of this physical examination and
230	provide notice to the Board and the member of any abnormal
231	findings of the examination. This physical examination will be
232	used for the purposes of establishing a physical profile of the
233	member for determining preexisting conditions and presumptive
234	illnesses as provided for in subsection (6). After review, if
235	further physical examination is required, such examination shall
236	be conducted at Board expense.
237	(i)  Compensation.--The trustees of the Fund shall not
238	receive any compensation for their services as such, but may
239	receive expenses and per diem as provided by law.
240	(2)  Professional and clerical services.--
241	(a)  Pension administrator.--The pension administrator of
242	the Fund shall be designated by the Board and shall carry out
243	its orders and directions.
244	(b)  Legal counsel.--The City Attorney shall give advice to
245	the Board in all matters pertaining to its duties in the
246	administration of the Fund whenever requested, shall represent
247	and defend the Board as its attorney in all suits and actions at
248	law or in equity that may be brought against it, and shall bring
249	all suits and actions in its behalf that may be required or
250	determined by the Board. However, if the Board so elects, it may
251	employ independent legal counsel at the Fund's expense for the
252	purposes set forth in this act.
253	(c)  Actuary.--The Board shall designate an enrolled
254	actuary, who shall be its technical advisor and who shall
255	perform such actuarial services as are required.
256	(d)  Certified public accountant.--The Board shall employ,
257	at its expense, a certified public accountant to conduct an
258	independent audit of the Fund. The certified public accountant
259	shall be independent of the Board and the City.
260	(e)  Additional professional, technical, or other
261	services.--The Board shall have the authority to employ such
262	professional, technical, or other advisors as required to carry
263	out the provisions of this act.
264	(3)  Sources of revenue.--The financing of the Fund shall
265	consist of the following sources of revenue:
266	(a)  Taxes of insurance companies.--The moneys returned to
267	the City as provided by chapter 175, Florida Statutes, shall be
268	used to fund the share account benefit described in paragraph
269	(5)(j). For the plan year October 1, 2003, through September 30,
270	2004, all of the chapter 175 funds received shall be utilized to
271	offset the City's contributions for the cost of the purchase of
272	extra benefits, less any amounts used to fund the share account
273	benefits for DROP members who do not convert in accordance with
274	sub-subparagraph (5)(a)2.b. Beginning October 1, 2004, the
275	chapter 175 moneys shall again be used in full to fund the share
276	account benefits provided for in paragraph (5)(j). The City
277	shall not opt out of participation in chapter 175, Florida
278	Statutes, or any similar statutory enactment unless exigent
279	circumstances exist, such as the bankruptcy of the City or
280	changes or amendments to the statute regarding extra benefits by
281	the Legislature. If any statutory changes are made by the
282	Legislature, the City and the Board may renegotiate the impact
283	of such changes, if necessary.
284	(b)  Member contributions.--Effective the first full
285	payroll period after October 1, 2003, the member shall
286	contribute 9.85 percent of his or her salary to the Fund, which
287	shall be deducted each pay period from the salary of each member
288	in the Department. Effective the first full payroll period after
289	October 1, 2004, the member shall contribute 18.2 percent of his
290	or her salary to the Fund, which shall be deducted each pay
291	period from the salary of each member in the Department.
292	Effective the first full payroll period after January 1, 2005,
293	the member shall contribute 18.7 percent of his or her salary to
294	the Fund, which shall be deducted each pay period from the
295	salary of each member in the Department. Effective the first
296	full payroll period after January 1, 2006, the member shall
297	contribute 19.2 percent of his or her salary to the Fund, which
298	shall be deducted each pay period from the salary of each member
299	in the Department. All amounts of member contributions that are
300	deducted shall be immediately paid over to the Pension Fund. For
301	contributions made before October 1, 2004, any contribution
302	amount over 6.85 percent is to be used to purchase eligibility
303	for participation in the postretirement health insurance
304	benefits; effective October 1, 2004, that amount will increase
305	to 15.2 percent.
306	(c)  City contributions.--The City shall contribute to the
307	Fund annually an amount which, together with the contributions
308	from the members and other income sources as authorized by law,
309	will be sufficient to meet the normal cost of the Fund and to
310	fund the actuarial deficiency over a period of not more than 40
311	years, provided that the net increase, if any, in unfunded
312	liability of the Fund arising from significant amendments or
313	other changes shall be amortized within 30 plan years.
314	(d)  Gifts, etc.--All gifts, bequests, and devises when
315	donated for the Fund.
316	(e)  Interest from deposits.--All accretions to the Fund by
317	way of interest or dividends on bank deposits or otherwise.
318	(f)  Other sources.--All other sources of income now or
319	hereafter authorized by law for the augmentation of the Fund.
320	(4)  Custodian of funds.--All moneys and securities of the
321	Fund may be deposited with the cash management coordinator of
322	the City, acting in a ministerial capacity only, who shall be
323	bonded and shall be liable in the same manner and to the same
324	extent as he or she is liable for the safekeeping of funds for
325	the City. However, any funds and securities so deposited with
326	the cash management coordinator shall be kept in a separate fund
327	by the cash management coordinator or clearly identified as
328	funds and securities of the Fund. In lieu thereof, the Board
329	shall deposit the funds and securities in a qualified public
330	depository designated by the Board. The cash management
331	coordinator or other depository shall receive all moneys due
332	said Fund from all sources whatsoever. All tax revenue received
333	pursuant to the provisions of chapter 175, Florida Statutes,
334	shall be deposited into the Fund no more than 5 days after
335	receipt. Member contributions withheld by the City on behalf of
336	a member shall be deposited into the Fund immediately.
337	(a)  Disbursements from the Fund.--The Board may issue
338	drafts upon the Fund pursuant to this act and rules and
339	regulations prescribed by the Board, provided that such drafts
340	shall be issued in accordance with generally accepted accounting
341	procedures, American Institute of Certified Public Accountants
342	guidelines, and rules of the State of Florida Auditor General.
343	All such drafts shall be consecutively numbered, signed by the
344	chair and secretary, and each draft shall, upon its face, state
345	the purpose for which it is drawn. For this purpose, the chair
346	and secretary shall be bonded. The Board shall retain such
347	drafts when paid, as permanent vouchers for disbursements made,
348	and no moneys shall be otherwise drawn from the Fund. Payments
349	from the Fund shall be made only upon a specific or general
350	motion or resolution previously adopted by the Board authorizing
351	such payment or payments.
352	(b)  Investment of moneys.--The Board shall have the power
353	and authority to invest and reinvest the moneys of the Fund, and
354	to hold, purchase, sell, assign, transfer, and dispose of any
355	securities and investments held in said Fund. The aim of the
356	investment policies shall be to preserve the integrity and
357	security of Fund principal, to maintain a balanced investment
358	portfolio, to maintain and enhance the value of Fund principal,
359	and to secure the maximum total return on investments that is
360	consonant with safety of principal, provided that such
361	investments and reinvestments shall be limited to the following:
362	1.  Direct obligations of the United States Government or
363	any agency thereof and debentures and other evidences of
364	indebtedness which are fully guaranteed by the United States
365	Government or any agency thereof for the payment of principal
366	and interest.
367	2.  Direct obligations of the State of Florida.
368	3.  In debt securities, preferred and common stocks and
369	mutual fund shares subject to the limitations set forth in this
370	section.
371	4.  In time or savings accounts of a national bank, a state
372	bank insured by the Bank Insurance Fund, a savings and loan
373	association to the extent that deposits are guaranteed by the
374	Savings Association Insurance Fund which is administered by the
375	Federal Deposit Insurance Corporation, or a state or federally
376	chartered credit union whose share accounts are insured by the
377	National Credit Union Share Insurance Fund.
378	5.  Of the total Fund principal in the pension or
379	retirement system, including the amounts deposited in banks or
380	associations, the total thereof invested in preferred stocks
381	shall not aggregate more than 5 percent, and the total amount
382	thereof invested in common stocks and mutual fund shares shall
383	not aggregate more than 70 percent. Percentages shall be based
384	on market value at the end of each reporting period (September
385	30).      6.  In real property or real estate investments, such
386	investments shall not aggregate more than 15 percent of the
387	market value of the total Fund principal in the pension or
388	retirement system.
389	7.  In derivative investments and futures, such investments
390	shall not aggregate more than 10 percent of the market value of
391	the total Fund principal in the pension or retirement system.
392	8.  Any investments permitted by sections 112.661 and
393	215.47(1)-(8), (10), and (16), Florida Statutes, up to the
394	limits stated therein.
395	9.  The following minimum standards shall govern the
396	eligibility of securities for purchase as investments:
397	a.  All corporate and association securities and mutual
398	fund shares shall be issued by a corporation or other legal
399	person, incorporated or otherwise, organized within the United
400	States and domiciled therein, except that up to 20 percent of
401	the market value of the total Fund principal in the pension or
402	retirement system may be invested in the stocks and bonds of
403	foreign domiciled corporations to the extent required by section
404	175.071(1)(b), Florida Statutes.
405	b.  Not more than 10 percent of the total Fund principal at
406	market value shall be invested in any one issuing company other
407	than obligations of the United States or an agency thereof.
408	c.  All bonds, stocks, or other evidence of indebtedness
409	issued or guaranteed by a corporation shall be listed on any one
410	or more of the major recognized national stock exchanges. and ,
411	In the case of bonds only, at a minimum, 80 percent of bonds
412	purchased for the Fund shall hold a rating in one of the four
413	highest classifications by a major rating service. Said bonds
414	and preferred stocks that are convertible into common stocks
415	shall be considered common stocks and the purchase of same shall
416	be limited by the provisions of subparagraph 5.
417	d.  The Board shall engage the services of professional
418	investment counsel to assist and advise the trustees in the
419	performance of their duties.
420	e.  At least once every 3 years, the Board shall retain an
421	independent consultant professionally qualified to evaluate the
422	performance of its professional money manager or investment
423	counsel. The independent consultant shall make recommendations
424	to the Board at its next regularly scheduled meeting.
425	(c)  Maximum of cash not invested.--No more than 10 percent
426	of the assets of the Fund shall be held in cash or in
427	noninterest-bearing deposits.
428	(d)  Administrative expenses.--The administrative expenses
429	of the Fund shall be paid by the Fund.
430	(e)  Restrictions on the use of assets of Fund.--The assets
431	of the Fund shall be used only for the payment of benefits and
432	other disbursements authorized by this act and shall be used for
433	no other purpose.
434	(5)  Service pension.--
435	(a)  Normal retirement.--
436	1.  Any member who is actively employed on and after
437	October 1, 2003, excluding members in the DROP, who has attained
438	age 50 years and who has acquired 15 or more years of service
439	credit; who has attained age 55 years and who has acquired 10 or
440	more years of service credit; or who has acquired 26 years of
441	service credit without regard to age shall, upon application
442	filed with the Board, be retired and shall be entitled to a
443	monthly pension for the remainder of his or her life equal to
444	the greater of the following:
445	a.  Four percent of final average salary times credited
446	service subject to a maximum of 92 percent of final average
447	salary. However, in all cases, members shall be entitled to at
448	least 2 percent per year of credited service; or
449	b.  The sum of the following:
450	(I)  Two and one-half percent of final average salary
451	multiplied by the number of years, and fraction of a year, of
452	service credit to a maximum of 26 years of service, and 2
453	percent of his or her final average salary multiplied by the
454	number of years, and fraction of a year, in excess of 26 years
455	of service, for all years of service earned through September
456	30, 1988; and
457	(II)  Two percent of final average salary multiplied by the
458	number of years, and fraction of a year, of service credit
459	earned on and after October 1, 1988.
460	2.  Any member who is actively employed by the Department
461	on and after October 1, 2003, and who is a member of the DROP on
462	or after that date, may elect one of the following transition
463	benefits by making a written election within 45 days after the
464	effective date of this special act on a form provided by the
465	Board of Trustees. The right to elect the transition benefits
466	contained in sub-subparagraph b. shall terminate if no written
467	election is made within 45 days after the effective date of this
468	act. In the event a member does not submit a timely written
469	election, the member shall be deemed to have elected the
470	transition benefits contained in sub-subparagraph a. below:
471	a.  Retain member's original monthly retirement benefit,
472	DROP account balance, and share account balance. DROP members
473	who select this transition benefit may continue to participate
474	in the DROP until the end of the original DROP term. Additional
475	allocations to the share account shall be made in accordance
476	with the provisions of paragraph (j).
477	b.  Convert the member's original monthly benefit and DROP
478	balance to a new monthly benefit and BackDROP. In order to be
479	entitled to this benefit, the member must cease membership in
480	the DROP program. The new converted benefits will not be paid
481	until the member has terminated employment. The conversion of
482	the member's benefits shall be based on the following:
483	(I)  Original monthly benefit conversion: A DROP member is
484	entitled to a conversion of the original monthly benefit in an
485	amount equal to 4 percent for each year of credited service
486	excluding the BackDROP period with a 2-year final average
487	salary. The 2-year final average salary shall be determined
488	based on a 24-month period with the highest average prior to the
489	number of full years of BackDROP (selected by the member in
490	accordance with sub-sub-subparagraph II). No final average
491	salary shall be included in a monthly benefit calculation for
492	which a member has received a BackDROP payment.
493	(II)  BackDROP conversion: The DROP member is entitled to a
494	lump sum payment equal to the new monthly benefit annualized
495	times a period of whole years as selected by the member up to a
496	maximum of 5. The DROP member may select zero years. The
497	BackDROP benefit will be paid interest at the rate of 8.25
498	percent less expenses, compounded annually.
499
500	The 4-percent benefit accrual factor in sub-subparagraph 1.a. is
501	contingent on and subject to the adoption and maintenance of the
502	assumptions set forth in subsection (23). If such assumptions
503	are modified by legislative, judicial, or administrative agency
504	action, and the modification results in increased City
505	contributions to the Pension Fund, the 4-percent accrual factor
506	in sub-subparagraph 1.a. shall be automatically decreased
507	prospectively, from the date of the action, to completely offset
508	the increase in City contributions. However, in no event shall
509	the benefit accrual factor in sub-subparagraph 1.a. be adjusted
510	below 3.5 percent. To the extent that the benefit accrual factor
511	is less than 4 percent, the supplemental pension distribution
512	calculation under paragraph (d) shall be adjusted for employees
513	who retire on or after October 1, 1998, and those employees who
514	were members of the DROP on October 1, 1998. The adjustment
515	shall be to decrease the minimum return of 8.25 percent needed
516	to afford the supplemental pension distribution, when the amount
517	of the reduction is zero if an employee has been credited with
518	16 or more years with the 3-percent benefit accrual factor or
519	1.25 percent if an employee has been credited with no more than
520	a 2.5-percent benefit accrual factor. If an employee has been
521	credited with less than 16 years at the 3-percent benefit
522	accrual factor, then the accumulated amount over 2.5 percent for
523	each year of service divided by .5 percent divided by 16
524	subtracted from 1 multiplied by 1.25 percent is the reduction
525	from 8.25 percent. An example of the calculation of the minimum
526	return for supplemental pension distribution as described above
527	is set forth in Appendix B to the collective bargaining
528	agreement between the City of West Palm Beach and the West Palm
529	Beach Association of Firefighters, Local 727-IAFF, October 1,
530	2003-September 30, 2006.
531	(b)  Vested deferred retirement.--A member who leaves the
532	employ of the Department with 10 or more years of credited
533	service who is not eligible for any other retirement benefit
534	under this act shall be entitled to the applicable pension
535	provided for in paragraph (a) or paragraph (c). Payment of this
536	pension shall begin the first day of the calendar month
537	following the month in which the member's application is filed
538	with and accepted by the Board on or after attainment of age 50
539	years. If applicable, the amount of the pension shall be
540	determined in accordance with paragraph (c).
541	(c)  Early retirement.--Any member may retire from the
542	service of the Department as of the first day of any calendar
543	month which is prior to the member's normal retirement date but
544	subsequent to the date as of which the member has both attained
545	the age of 50 and has been a member of this Fund for 10
546	continuous years. In the event of early retirement, the monthly
547	amount of retirement income shall be computed as described in
548	paragraph (a), taking into account his or her credited service
549	to the date of actual retirement and his or her final average
550	salary as of such date. The amount of retirement income shall be
551	actuarially reduced to take into account the member's younger
552	age and earlier commencement of retirement income benefits. The
553	early retirement reduction shall be 3 percent for each year by
554	which the member's age at retirement preceded the member's
555	normal retirement age.
556	(d)  Supplemental pension distribution.--
557	1.a.  The actuary for the Pension Fund shall determine the
558	rate of investment return earned on Pension Fund assets during
559	the 12-month period ending each September 30. The rate
560	determined shall be the rate reported in the most recent
561	actuarial report submitted pursuant to part VII of chapter 112,
562	Florida Statutes.
563	b.  The actuary for the Pension Fund shall determine the
564	actuarial present value, as of September 30, of future pension
565	payments to eligible persons, as described in subparagraph 3.,
566	who are then being paid a pension. The actuarial present values
567	shall be calculated using an interest rate of 7 percent per year
568	compounded yearly and a mortality table as approved by the Board
569	of Trustees and as used in the most recent actuarial report
570	submitted pursuant to part VII of chapter 112, Florida Statutes.
571	c.  A distribution amount shall be determined as of each
572	September 30. For distributions made after October 1, 1998,
573	there shall be two different calculations to determine the
574	distribution amount. For those employees who retire on or after
575	October 1, 1998, or who are part of the DROP on or after October
576	1, 1998, the distribution amount shall be equal to factor (i)
577	for each applicable member multiplied by the sum of factor (ii)
578	and the positive difference, if any, between factor (iii) and
579	8.25 percent. For those employees who have retired before
580	October 1, 1998, except as provided in this sub-subparagraph,
581	the distribution amount shall be equal to factor (i) for each
582	applicable member multiplied by the sum of factor (ii) and the
583	positive difference, if any, between factor (iii) and 7 percent.
584	For purposes of both calculations, factor (i) is the actuarial
585	present value determined in sub-subparagraph 1.b. for the
586	respective group. Factor (ii) is one-half of the investment
587	return rate in sub-subparagraph 1.a. in excess of 9 percent.
588	Factor (iii) is the rate of investment return in sub-
589	subparagraph 1.a., not to exceed 9 percent. The distribution
590	amount shall not exceed accumulated net actuarial experience
591	from all pension liabilities and assets. If the net actuarial
592	experience is favorable, cumulatively, commencing with the
593	experience for the year ended September 30, 1985, after offset
594	for all prior supplemental distributions, the supplemental
595	distribution may be made. If the net actuarial experience is
596	unfavorable, cumulatively, commencing with the experience for
597	the year ended September 30, 1985, after offset for all prior
598	supplemental distributions, no supplemental distribution may be
599	made, and the City must amortize the loss until it is offset by
600	cumulative favorable experience.
601
602	If an actuarial report submitted as provided in this paragraph
603	is not state accepted prior to distribution, and if a deficiency
604	to the Pension Fund results, the deficiency shall be made up
605	from the next available supplemental pension distribution,
606	unless sooner made up by agreement between the Board of Trustees
607	and the City. No such deficiency shall be permitted to continue
608	for a period of greater than 3 years from the date of payment of
609	the supplemental pension distribution which resulted in the
610	deficiency.
611	2.  The Board of Trustees shall determine annually if there
612	is to be a supplemental pension distribution. The supplemental
613	pension distribution is that portion of the distribution amount,
614	as defined in sub-subparagraph 1.c., to be distributed to
615	eligible persons.
616	3.  Eligible persons are:
617	a.  Pensioners.
618	b.  Surviving spouses.
619	c.  Surviving dependent children.
620	d.  Surviving dependent parents.
621	e.  Pensioners' estates for the year following death only.
622
623	Eligible persons are initially eligible if they have been in
624	receipt of a pension for at least 1 year on the first
625	distribution date following their retirement. A survivor
626	beneficiary of a deceased retired member shall be considered to
627	have been in receipt of a pension for at least 1 year if at
628	least 12 monthly pension payments have been made on account of
629	the retirement. A surviving spouse may count the retirement
630	period, if any, of the deceased member toward the 1-year
631	requirement. Surviving spouses, children, and parents and
632	retired members who receive pension adjustments under the prior
633	escalator clause are not eligible for the supplemental pension
634	distribution.
635	4.  The supplemental pension distribution dates shall be
636	the April 1 following the effective date of this subsection and
637	each April 1 thereafter. Each eligible person shall be paid his
638	or her allocated portion of the applicable supplemental pension
639	distribution amount from the preceding September 30. A
640	pensioner's estate is entitled to a pro rata share of the
641	deceased retiree's supplemental pension distribution based on
642	the number of months that the deceased retiree received a
643	pension during the year ending the September 30 prior to the
644	pensioner's death after initial eligibility.
645	5.  Each supplemental pension distribution amount shall be
646	allocated among the eligible persons in the proportion that an
647	eligible person's supplemental pension distribution points bears
648	to the aggregate amount of supplemental pension distribution
649	points of all eligible persons. An eligible person shall be
650	credited with supplemental pension distribution points as
651	follows:
652	a.  Three and eighty-five hundredths of a point multiplied
653	by the service credit of the member at the time of retirement or
654	prior to death; however, in the computation of the supplemental
655	pension distribution due the in-line-of-duty pensioner, the
656	maximum service credit of 26 years shall be used.
657	b.  Maximum service credit shall be 26 years.
658	c.  Allocations for surviving spouses and surviving
659	dependent children who are eligible to receive supplemental
660	pension distributions shall be 75 percent of the years of
661	service earned by the pensioner. Allocations for duty death
662	beneficiaries (surviving spouse and surviving children) shall be
663	based upon 75 percent of 26 years of service.
664	(e)  Payment of benefits.--
665	1.  First payment.--Service pensions shall be payable on
666	the first day of each month. The first payment shall be payable
667	on the first day of the month coincident with or next following
668	the date of retirement, or death, provided the member has
669	completed the applicable age and service requirements.
670	2.  Last payment.--The last payment shall be the payment
671	due next preceding the member's death, except that payments
672	shall be continued to the designated beneficiary or
673	beneficiaries if a 10-year certain benefit, a joint and survivor
674	option, or beneficiary benefits, as applicable, are payable.
675	(f)  Normal form of retirement income.--
676	1.  Married member.--The normal form of retirement benefit
677	for a married member or for a member with a dependent child or
678	children or parent or parents shall be a service pension and
679	beneficiary benefits. The service benefit shall provide monthly
680	payments for the life of the member. Thereafter, beneficiary
681	benefits shall be paid as provided in subsection (7).
682	2.  Unmarried member.--The normal form of retirement
683	benefit for an unmarried member without a dependent child or
684	children or parent or parents shall be a 10-year certain
685	benefit. This benefit shall pay monthly benefits for the
686	member's lifetime. In the event the member dies after his or her
687	retirement but before receiving retirement benefits for a period
688	of 10 years, the same monthly benefit shall be paid to the
689	beneficiary or beneficiaries as designated by the member for the
690	balance of such 10-year period or, if no beneficiary is
691	designated, to heirs at law, or estate of the member, as
692	provided in section 175.181, Florida Statutes.
693	(g)  Optional forms of retirement income.--
694	1.a.  In the event of normal, early, or disability
695	retirement, in lieu of the normal form of retirement income
696	payable as specified in paragraph (a), paragraph (b), paragraph
697	(c), or subsection (6) and in lieu of the beneficiary benefits
698	as specified in subsection (7), a member, upon written request
699	to the Board and subject to the approval of the Board, may elect
700	to receive a retirement income of equivalent actuarial value
701	payable in accordance with one of the following options:
702	(I)  Lifetime option.--A retirement income of a larger
703	monthly amount, payable to the member for his or her lifetime
704	only.
705	(II)  Joint and survivor option.--A retirement income of a
706	modified monthly amount, payable to the member during the joint
707	lifetime of the member and a dependent joint pensioner
708	designated by the member, and following the death of either of
709	them, 100 percent, 75 percent, 66-2/3 percent, or 50 percent of
710	such monthly amounts, payable to the survivor for the lifetime
711	of the survivor.
712	b.  The member, upon electing any option of this paragraph,
713	shall designate the joint pensioner or beneficiary or
714	beneficiaries to receive the benefit, if any, payable in the
715	event of his or her death, and will have the power to change
716	such designation from time to time; but any such change shall be
717	deemed a new election and shall be subject to approval by the
718	Board. Such designation shall name a joint pensioner or one or
719	more primary beneficiaries where applicable. If a member has
720	elected an option with a joint pensioner or beneficiary and his
721	or her retirement income benefits have commenced, he or she may
722	thereafter change the designated joint pensioner or beneficiary
723	only twice.
724	c.  The consent of a member's joint pensioner or
725	beneficiary to any such change shall not be required. However,
726	the spouse of a married member must consent to any election to
727	waive a joint and survivor benefit by signing the election form
728	before a notary public. The spouse's written consent must
729	acknowledge the effect of such a waiver. Consent of the spouse
730	shall not be required if the spouse cannot be located, or for
731	such other circumstances as may be prescribed by the Secretary
732	of the Treasury of the United States. Any consent by a spouse
733	shall be effective only with respect to such spouse.
734	d.  The Board may request such evidence of the good health
735	of the joint pensioner that is being added as it may require;
736	and the amount of the retirement income payable to the member
737	upon the designation of a new joint pensioner shall be
738	actuarially redetermined, taking into account the age and sex of
739	the former joint pensioner, the new joint pensioner, and the
740	member. Each such designation shall be filed with the Board. In
741	the event that no designated beneficiary survives the member,
742	such benefits as are payable in the event of the death of the
743	member subsequent to his or her retirement shall be paid as
744	provided in subparagraph (h)2.
745	2.  Retirement income payments shall be made under the
746	option elected in accordance with the provisions of this
747	paragraph and shall be subject to the following limitations:
748	a.  If a member dies prior to his or her normal retirement
749	date or early retirement date, whichever first occurs,
750	retirement benefits shall be paid in accordance with subsection
751	(7).
752	b.  If the designated beneficiary or beneficiaries or joint
753	pensioner dies before the member's retirement, the option
754	elected shall be canceled automatically and a retirement income
755	of the normal form and amount shall be payable to the member
756	upon the member's retirement as if the election had has not been
757	made, unless a new election is made in accordance with the
758	provisions of this paragraph or a new beneficiary is designated
759	by the member prior to retirement.
760	c.  If a member continues in the employ of the Department
761	after meeting the age and service requirements set forth in
762	paragraph (a) or paragraph (c) and dies prior to the member's
763	actual retirement, and while an option made pursuant to this
764	subparagraph is in effect, monthly retirement income payments
765	shall be paid, under the option, to a beneficiary or
766	beneficiaries designated by the member in the amount or amounts
767	computed as if the member has retired under the option on the
768	date on which the member's death occurred.
769	3.  No member may make any change in his or her retirement
770	option after the date of cashing or depositing the first
771	retirement check.
772	(h)  Designation of beneficiary.--
773	1.  Each member may, on a form provided for that purpose,
774	signed and filed with the Board, designate a beneficiary or
775	beneficiaries to receive the benefit, if any, which may be
776	payable in the event of the member's death; and each designation
777	may be revoked by such member by signing and filing with the
778	Board a new designation of beneficiary form. However, after the
779	benefits have commenced, a retirant may change his or her
780	designation of joint annuitant or beneficiary only twice. If the
781	retirant desires to change his or her joint annuitant or
782	beneficiary, the retirant shall file with the Board a notarized
783	notice of such change either by registered letter or on a form
784	as provided by the Board. Upon receipt of a completed change of
785	joint annuitant form or such other notice, the Board shall
786	adjust the member's monthly benefit by the application of
787	actuarial tables and calculations developed to ensure that the
788	benefit paid is the actuarial equivalent of the present value of
789	the member's current benefit.
790	2.  Absence or death of beneficiary.--If a deceased member
791	fails to name a beneficiary in the manner prescribed in
792	subparagraph 1., or if the beneficiary or beneficiaries named by
793	a deceased member predecease the member, the beneficiary
794	benefits, if any, which may be payable with respect to such
795	deceased member may be paid, in the discretion of the Board to:
796	a.  The spouse or dependent child or children of the
797	member;
798	b.  The dependent living parent or parents of the member;
799	or
800	c.  The estate of the member.
801	(i)  Refund of contributions.--In the event a member leaves
802	the employ of the Department or dies with less than 10 years of
803	credited service, and no service pension, disability pension, or
804	beneficiary benefit is payable, the contributions made by him or
805	her to the Fund shall be refunded, without interest (less any
806	disability payments paid to the member), to the member or, in
807	the event of death, to the beneficiary or to the member's
808	estate.
809	(j)  Chapter 175, Florida Statutes, share accounts.--
810	1.  Individual member accounts.--A separate account shall
811	be established and maintained in each member's name effective on
812	or after October 1, 1988.
813	2.  Share account funding.--
814	a.  Each individual member account shall be credited with a
815	pro rata share of all of the moneys received from chapter 175,
816	Florida Statutes, tax revenues in June 1988 and thereafter.
817	b.  In addition, any forfeitures as provided in
818	subparagraph 5. shall be credited to the individual member
819	accounts in accordance with the formula set forth in
820	subparagraph 3.
821	3.  Annual allocation of accounts.--
822	a.  Moneys shall be credited to each individual member
823	account in an amount directly proportionate to the number of pay
824	periods for which the member was paid compared to the total
825	number of pay periods for which all members were paid, counting
826	the pay periods in the calendar year preceding the date for
827	which chapter 175, Florida Statutes, tax revenues were received.
828	For the fiscal year beginning October 1, 2003, and ending
829	September 30, 2004, share account allocations shall only be made
830	to DROP members who elect not to convert in accordance with sub-
831	subparagraph (5)(a)2.b. For purposes of determining the pro rata
832	share for those share account allocations during the fiscal year
833	beginning October 1, 2003, and ending September 30, 2004, the
834	pay periods of all active firefighters, including DROP members,
835	shall be used. Share account allocations made on and after
836	October 1, 2004, shall be made to each individual share account.
837	b.  At the end of each fiscal year (September 30), each
838	individual account shall be adjusted to reflect the earnings or
839	losses resulting from investment, as well as reflecting costs,
840	fees, and expenses of administration.
841	c.  Effective October 1, 2002, vested participants have the
842	option to select one of three methods to credit investment
843	earnings to their account.  The method may be changed each year
844	effective October 1; however, the method must be elected prior
845	to October 1.  The methods are:
846	(I)  The investment earnings or losses credited to the
847	individual member accounts shall be in the same percentage as
848	are earned or lost by the total investment earnings or losses of
849	the Fund as a whole, unless the Board dedicates a separate
850	investment portfolio for chapter 175, Florida Statutes, share
851	accounts, in which case the investment earnings or losses shall
852	be measured by the investment earnings or losses of the separate
853	investment portfolio;
854	(II)  A fixed annual rate of 8.25 percent; or
855	(III)  A percentage of the share account assets to be
856	credited with earnings or losses in accordance with sub-sub-
857	subparagraph (I) and a corresponding percentage of the share
858	account assets credited in accordance with sub-sub-subparagraph
859	(II). The combined total percentage invested under this sub-sub-
860	subparagraph must equal 100 percent.
861	d.  Costs, fees, and expenses of administration shall be
862	debited from the individual member accounts on a proportionate
863	basis, taking the cost, fees, and expenses of administration of
864	the Fund as a whole, multiplied by a fraction, the numerator of
865	which is the total assets in all individual member accounts and
866	the denominator of which is the total assets of the Fund as a
867	whole. The proportionate share of the costs, fees, and expenses
868	shall be debited from each individual member account on a pro
869	rata basis in the same manner as chapter 175, Florida Statutes,
870	tax revenues are credited to each individual member account
871	(i.e., based on pay periods).
872	e.  If the entire balance of the individual member account
873	is withdrawn before September 30 of any year, there shall be no
874	adjustment made to that individual member account to reflect
875	either investment earnings or losses or costs, fees, and
876	expenses of administration.
877	4.  Eligibility for benefits.--Any member who terminates
878	employment with the City, upon the member's filing an
879	application with the Board, shall be entitled to 100 percent of
880	the value of his or her individual member account, provided the
881	member meets any of the following criteria:
882	a.  The member is eligible to receive a service pension as
883	provided in this subsection;
884	b.  The member has 5 or more years of credited service and
885	is eligible to receive either:
886	(I)  A nonduty disability pension as provided in paragraph
887	(6)(a); or
888	(II)  Beneficiary benefits for nonduty death as provided in
889	paragraph (7)(a); or
890	c.  The member has any credited service and is eligible to
891	receive either:
892	(I)  A duty disability pension as provided in paragraph
893	(6)(c); or
894	(II)  Beneficiary benefits for death in the line of duty as
895	provided in paragraph (7)(b).
896	5.  Forfeitures.--Any member who has less than 10 years of
897	credited service and who is not eligible for payment of benefits
898	after termination of employment with the City shall forfeit his
899	or her individual member account. The amounts credited to said
900	individual member account shall be redistributed to the other
901	individual member accounts in the same manner as chapter 175,
902	Florida Statutes, tax revenues are credited (i.e., based on pay
903	periods). However, the assets shall first be used to ensure that
904	the former member's refund of contributions has not actuarially
905	adversely impacted the payment for the extra benefits. If there
906	has been an adverse impact, the shortfall shall be made up first
907	before the amounts are reallocated to active members.
908	6.  Payment of benefits.--The normal form of benefit
909	payment shall be a lump sum payment of the entire balance of the
910	individual member account; or, upon the written election of the
911	member, upon a form prescribed by the Board, payment may be made
912	either by:
913	a.  Installments.--The account balance shall be paid out to
914	the member in three equal payments paid over 3 years, the first
915	payment to be made upon approval of the Board; or
916	b.  Annuity.--The account balance shall be paid out in
917	monthly installments over the lifetime of the member or until
918	the entire balance is exhausted. The monthly amount paid shall
919	be determined by the Fund's actuary in accordance with
920	selections made by the member in a form provided by the Board.
921	7.  Death of a member.--If a member dies and is eligible
922	for benefits from the individual member account, the entire
923	balance of the individual member account shall be paid in a lump
924	sum to the beneficiaries designated in accordance with paragraph
925	(h). If a member fails to designate a beneficiary or, if the
926	beneficiary predeceases the member, the entire balance shall be
927	paid in a lump sum in the following order:
928	a.  To the spouse;
929	b.  If there is no spouse or the spouse is not alive, to
930	the member's surviving child or children on a pro rata basis;
931	c.  If there are no children or no child is alive, to the
932	member's parent or parents; or
933	d.  If no parent is alive, to the estate of the member.
934	(k)  Deferred Retirement Option Plan (DROP).--Effective
935	upon the ratification of the collective bargaining agreement
936	between the City of West Palm Beach and the West Palm Beach
937	Association of Firefighters, Local 727-IAFF, October 1, 2003-
938	September 30, 2006, no new members may enter into the DROP.
939	Existing DROP members on the ratification date shall have the
940	option to remain in the DROP for the remainder of their
941	individual 5-year terms in accordance with the provisions of
942	subparagraph (5)(a)2.
943	1.  Eligibility to participate in the DROP.--
944	a.  Any member who is eligible to receive an early or
945	normal retirement pension may participate in the DROP. Members
946	shall elect to participate by applying to the Board of Trustees
947	on a form provided for that purpose.
948	b.  Election to participate shall be forfeited if not
949	exercised within the first 35 years of combined credited
950	service.
951	c.  A member shall not participate in the DROP beyond the
952	time of attaining 37 years of service and the total years of
953	participation in the DROP shall not exceed 5 years. For example:
954	(I)  Members with 32 years of credited service at the time
955	of entry shall participate for only 5 years.
956	(II)  Members with 33 years of credited service at the time
957	of entry shall participate for only 4 years.
958	(III)  Members with 34 years of credited service at the
959	time of entry shall participate for only 3 years.
960	(IV)  Members with 35 years of credited service at the time
961	of entry shall participate for only 2 years.
962	d.  Upon a member's election to participate in the DROP, he
963	or she shall cease to be a member and shall no longer accrue any
964	benefits under the Pension Fund, except for the benefits
965	provided under paragraph (j) of this subsection, chapter 175,
966	Florida Statutes, share accounts. For all Fund purposes, the
967	member becomes a retirant, except that a DROP participant shall
968	continue to receive shares of the chapter 175, Florida Statutes,
969	money in accordance with paragraph (j), chapter 175, Florida
970	Statutes, share accounts. The amount of credited service and
971	final average salary shall freeze as of the date of entry into
972	the DROP.
973	2.  Amounts payable upon election to participate in the
974	DROP.--
975	a.  Monthly retirement benefits that would have been
976	payable had the member terminated employment with the Department
977	and elected to receive monthly pension payments shall be paid
978	into the DROP and credited to the retirant. Payments into the
979	DROP shall be made monthly over the period the retirant
980	participates in the DROP, up to a maximum of 60 months.
981	b.  Effective October 1, 2002, participants have the option
982	to select one of three methods to credit investment earnings to
983	their account. Investment earnings shall be credited on a
984	quarterly basis. The method may be changed each year effective
985	October 1; however, the method must be elected prior to October
986	1. The methods are:
987	(I)  Earnings using the rate of investment return earned on
988	Pension Fund assets as reported by the Fund's investment
989	monitor. DROP assets are commingled with the Pension Fund assets
990	for investment purposes;
991	(II)  A fixed rate of 8.25 percent; or
992	(III)  A percentage of the DROP account assets to be
993	credited with earnings or losses in accordance with sub-sub-
994	subparagraph (I) and a corresponding percentage of the DROP
995	account assets credited in accordance with sub-sub-subparagraph
996	(II). The combined total percentage invested under this sub-sub-
997	subparagraph must equal 100 percent.
998
999	However, if a member does not terminate employment at the end of
1000	participation in the DROP, interest credit shall cease on the
1001	balance.
1002	c.  No payments shall be made from the DROP until the
1003	member terminates employment with the Department.
1004	d.  Upon termination of employment, participants in the
1005	DROP shall receive the balance of the DROP account in accordance
1006	with the following rules:
1007	(I)  Members may elect to begin to receive payment upon
1008	termination of employment or defer payment of the DROP until the
1009	latest day under sub-sub-subparagraph (III).
1010	(II)  Payments shall be made in either:
1011	(A)  Lump sum.--The entire account balance shall be paid to
1012	the retirant upon approval of the Board of Trustees.
1013	(B)  Installments.--The account balance shall be paid out
1014	to the retirant in three equal payments paid over 3 years, the
1015	first payment to be made upon approval of the Board of Trustees.
1016	(C)  Annuity.--The account balance shall be paid out in
1017	monthly installments over the lifetime of the member or until
1018	the entire balance is exhausted.  Monthly amount paid will be
1019	determined by the Fund's actuary in accordance with selections
1020	made by the member in a form provided by the Board of Trustees.
1021	(III)  Any form of payment selected by a member must comply
1022	with the minimum distribution requirements of the IRC 401(A)(9),
1023	and are subject to the requirements of subsection (19).
1024	(IV)  The beneficiary of the DROP participant who dies
1025	before payments from DROP begin shall have the same right as the
1026	participant in accordance with subsection (7).
1027	e.  Costs, fees, and expenses of administration shall be
1028	debited from the individual member accounts on a proportionate
1029	basis, taking the cost, fees, and expenses of administration of
1030	the Fund as a whole, multiplied by a fraction, the numerator of
1031	which is the total assets in all individual member accounts and
1032	the denominator of which is the total assets of the Fund as a
1033	whole.
1034	3.  Loans from the DROP.--
1035	a.  Availability of loans.--
1036	(I)  Loans are available to members only after termination
1037	of employment, provided the member had participated in the DROP
1038	for a period of 12 months.
1039	(II)  Loans may only be made from a member's own account.
1040	(III)  There may be no more than one loan at a time.
1041	b.  Amount of loan.--
1042	(I)  Loans may be made up to a maximum of 50 percent of
1043	account balance.
1044	(II)  The maximum dollar amount of a loan is $50,000,
1045	reduced by the highest outstanding loan balance during the last
1046	12 months.
1047	(III)  The minimum amount of a loan is $5,000.
1048	c.  Limitation on loans.--Loans shall be made from the
1049	amounts paid into the DROP and earnings thereon.
1050	d.  Term of the loan.--
1051	(I)  A The loan must be for at least 1 year.
1052	(II)  A The loan shall be for no longer than 5 years.
1053	e.  Loan interest rate.--
1054	(I)  The interest rate shall be fixed at the time the loan
1055	is originated for the entire term of the loan.
1056	(II)  The interest rate shall be equal to the lowest prime
1057	rate published by the Wall Street Journal on the last day of
1058	each calendar quarter preceding the date of the loan
1059	application.
1060	f.  Defaults of loans.--
1061	(I)  A loan Loans shall be in default if 2 consecutive
1062	months of months' repayments are missed or if a total of 4
1063	months of months' repayments is are missed.
1064	(II)  Upon default, the entire balance of the loan becomes
1065	due and payable immediately.
1066	(III)  If a loan in default is not repaid in full
1067	immediately, the loan may be canceled and the outstanding
1068	balance treated as a distribution, which may be taxable.
1069	(IV)  Upon default of a loan, a member shall not be
1070	eligible for additional loans.
1071	g.  Miscellaneous provisions.--
1072	(I)  All loans must be evidenced by a written loan
1073	agreement signed by the member and the Board of Trustees. The
1074	agreement shall contain a promissory note.
1075	(II)  A member's spouse must consent in writing to the
1076	loan. The consent shall acknowledge the effect of the loan on
1077	the member's account balance.
1078	(III)  Loans shall be considered general assets of the
1079	Fund.
1080	(IV)  Loans shall be subject to administrative fees to be
1081	set by the Board of Trustees.
1082	4.  After-tax contributions to the DROP.--
1083	a.  A member may make after-tax contributions to the DROP.
1084	The maximum amount that may be contributed is the lesser of:
1085	(I)  The IRS 415(c) limit.
1086	(II)  The amount allowable under IRC 401(m).
1087	b.  After-tax contributions to the DROP shall earn interest
1088	in the same manner as set forth in sub-subparagraph 2.b.
1089	c.  Distributions to members or their beneficiaries of
1090	after-tax contributions may be withdrawn at any time on or after
1091	termination of employment. However, payments must be made at
1092	least as promptly as required under subsection (19).
1093	d.  Loans shall not be made against after-tax
1094	contributions.
1095	(l)  Backwards Deferred Retirement Option Plan
1096	(BackDROP).--
1097	1.  Eligibility to participate in the BackDROP.--
1098	a.  Any member who has attained age 53 with 18 or more
1099	years of service, who has attained age 58 with 13 or more years
1100	of service, or who has acquired 26 years of service regardless
1101	of age may participate in the BackDROP. Members shall elect to
1102	participate by applying to the Board of Trustees on a form
1103	provided for that purpose. A member may not participate in both
1104	the DROP and the BackDROP.
1105	b.  Election to participate shall be forfeited if not
1106	exercised within the first 28 years of credited service.
1107	However, a member who is actively employed by the Department on
1108	October 1, 2003, may elect to participate in the BackDROP beyond
1109	the 28th year as follows: the member may elect to participate in
1110	the benefit for 3 full years in the 29th year of employment, for
1111	1 full year in the 30th year of employment, and after the 30th
1112	year of employment all elections to participate in the BackDROP
1113	end.
1114	c.  A member shall not be eligible to receive a BackDROP
1115	benefit that is greater than an accumulation of 60 months of the
1116	monthly retirement benefit. A member shall not be eligible to
1117	receive a benefit which is less than an accumulation of 36
1118	months of the monthly retirement benefit, except for the
1119	reduction of benefits as defined in sub-subparagraph b.
1120	d.  Member contributions shall continue throughout the
1121	period of employment and are not refundable for the BackDROP
1122	period.
1123	e.  Members who elect to participate in the BackDROP must
1124	retire and terminate employment to be eligible for payment of
1125	the benefit.
1126	f.  Any member who terminates employment by any means,
1127	including death, prior to attaining age 53 with 18 or more years
1128	of service or age 58 with 13 or more years of service or by
1129	acquiring 26 years of service is not eligible to participate in
1130	the BackDROP.
1131	2.  Benefits payable upon election to participate in the
1132	BackDROP.--
1133	a.  Upon election to receive the BackDROP benefit, a
1134	member's retirement benefits will be calculated as if the member
1135	had chosen to retire and terminate employment at a date which is
1136	more than 36 months but less than 60 months 3, 4, or 5 whole
1137	years earlier. The number of months years to be applied is based
1138	upon the member's election. The monthly pension amount shall be
1139	multiplied by the number of months of BackDROP selected by the
1140	member, which shall be between 36 and 60 months, inclusive 36,
1141	48, or 60, depending upon the member's election of 3, 4, or 5
1142	years. The BackDROP benefit shall be calculated as a single sum,
1143	including interest at the rate of 8.25 percent less expenses,
1144	compounded annually for the period of BackDROP.
1145	b.  No payments shall be made from the BackDROP until the
1146	member terminates employment with the Department.
1147	c.  Upon termination of employment, participants in the
1148	BackDROP shall receive the balance of the BackDROP account in
1149	accordance with the following rules:
1150	(I)  Members may elect to receive payment upon termination
1151	of employment or defer payment of the BackDROP until the latest
1152	day under sub-sub-subparagraph (III).
1153	(II)  Payments shall be made in either:
1154	(A)  A lump sum.--The entire account balance shall be paid
1155	to the retirant upon approval of the Board of Trustees.
1156	(B)  Installments.--The account balance shall be paid out
1157	to the retirant in three equal payments paid over 3 years, the
1158	first payment to be made upon approval of the Board of Trustees.
1159	(C)  Annuity.--The account balance shall be paid out in
1160	monthly installments over the lifetime of the member or until
1161	the entire balance is exhausted. The monthly amount paid shall
1162	be determined by the Fund's actuary in accordance with
1163	selections made by the member in a form provided by the Board of
1164	Trustees.
1165	(III)  Any form of payment selected by a member must comply
1166	with the minimum distribution requirements of the IRC 401(A)(9),
1167	and are subject to the requirements of subsection (19).
1168	(IV)  The beneficiary of the BackDROP member shall have the
1169	same right as the participant in accordance with subsection (7).
1170	3.  BackDROP earnings.--
1171	a.  BackDROP members may select one of three methods to
1172	credit investment earnings to their accounts. Investment
1173	earnings shall be credited on a quarterly basis. The method may
1174	be changed each year effective October 1; however, the method
1175	must be elected prior to October 1. The methods are:
1176	(I)  The BackDROP is credited with earnings and losses
1177	using the rate of investment return earned on Pension Fund
1178	assets as reported by the Fund's investment monitor. BackDROP
1179	assets are commingled with the Pension Fund assets for
1180	investment purposes;
1181	(II)  A fixed rate of 8.25 percent; or
1182	(III)  A percentage of the BackDROP account assets to be
1183	credited with earnings or losses in accordance with sub-sub-
1184	subparagraph (I) and a corresponding percentage of the BackDROP
1185	account assets credited in accordance with sub-sub-subparagraph
1186	(II). The combined total percentage invested under this sub-sub-
1187	subparagraph must equal 100 percent.
1188	b.  Costs, fees, and expenses of administration shall be
1189	debited from the individual member BackDROP accounts on a
1190	proportionate basis, taking the cost, fees, and expenses of
1191	administration of the Fund as a whole, multiplied by a fraction,
1192	the numerator of which is the total of assets in all individual
1193	member accounts and the denominator of which is the total of
1194	assets of the Fund as a whole.
1195	4.  Loans from the BackDROP.--
1196	a.  Availability of loans.--
1197	(I)  Loans are available to members only after termination
1198	of employment, provided the member had participated in the
1199	BackDROP for a period of at least 12 months.
1200	(II)  Loans may only be made from a member's own account.
1201	(III)  There may be no more than one loan at a time.
1202	b.  Amount of loan.--
1203	(I)   Loans may be made up to a maximum of 50 percent of
1204	account balance.
1205	(II)  The maximum dollar amount of a loan is $50,000,
1206	reduced by the highest outstanding loan balance during the last
1207	12 months.
1208	(III)  The minimum amount of a loan is $5,000.
1209	c.  Limitation on loans.--Loans shall be made from the
1210	amounts paid into the BackDROP and earnings thereon.
1211	d.  Term of loan.--
1212	(I)  A loan must be for at least 1 year.
1213	(II)  A loan shall be for no longer than 5 years.
1214	e.  Loan interest rate.--
1215	(I)  The interest rate shall be fixed at the time a loan is
1216	originated for the entire term of the loan.
1217	(II)  The interest rate shall be equal to the lowest prime
1218	rate published by the Wall Street Journal on the last day of
1219	each calendar quarter preceding the date of the loan
1220	application.
1221	f.  Defaults of loans.--
1222	(I)  A loan shall be in default if 2 consecutive months of
1223	repayments are missed or if a total of 4 months of repayments is
1224	missed.
1225	(II)  Upon default of a loan, the entire balance of the
1226	loan becomes due and payable immediately.
1227	(III)  If a loan in default is not repaid in full
1228	immediately, the loan may be canceled and the outstanding
1229	balance treated as a distribution, which may be taxable.
1230	(IV)  Upon default of a loan, a member shall not be
1231	eligible for additional loans.
1232	g.  Miscellaneous provisions.--
1233	(I)  All loans must be evidenced by a written loan
1234	agreement signed by the member and the Board of Trustees. The
1235	agreement shall contain a promissory note.
1236	(II)  A member's spouse must consent in writing to the
1237	loan. The consent shall acknowledge the effect of the loan on
1238	the member's account balance.
1239	(III)  Loans shall be considered general assets of the
1240	Fund.
1241	(IV)  Loans shall be subject to administrative fees to be
1242	set by the Board of Trustees.
1243	5.  After-tax contributions to the BackDROP.--
1244	a.  A member may make after-tax contributions to the
1245	BackDROP. The maximum amount that may be contributed is the
1246	lesser of:
1247	(I)  The IRS 415(c) limit.
1248	(II)  The amount allowable under IRC 401(m).
1249	b.  After-tax contributions to the BackDROP shall earn
1250	interest in the same manner as set forth in sub-subparagraph
1251	3.a.
1252	c.  Distributions to members or their beneficiaries of
1253	after-tax contributions may be withdrawn at any time on or after
1254	termination of employment. However, payments must be made at
1255	least as promptly as required under subsection (19).
1256	d.  Loans shall not be made against after-tax
1257	contributions.
1258	(6)  Disability pensions, medical examinations, return to
1259	work, etc.--
1260	(a)  Nonduty disability requirements.--Any member with 5 or
1261	more years of service credit who is regularly employed in the
1262	Department who becomes physically or mentally totally and
1263	permanently disabled by illness, disease, or injury to perform
1264	the duties of a firefighter shall, upon the member's application
1265	to the Board, be retired with a pension provided for in this
1266	paragraph, provided that after a medical examination of the
1267	member made by or under the direction of a medical committee,
1268	the medical committee reports to the Board, in writing, whether:
1269	1.  The member is wholly prevented from rendering useful
1270	and efficient service as a firefighter; and
1271	2.  The member is likely to remain so disabled continuously
1272	and permanently.
1273
1274	The Board may admit and consider any other evidence that it
1275	deems appropriate. The final decision as to whether a member
1276	meets the requirements for a nonduty disability pension rests
1277	with the Board and shall be based on competent substantial
1278	evidence on the record as a whole.
1279	(b)  Nonduty disability pension benefits.--Upon retirement
1280	on account of disability as provided in paragraph (a), a member
1281	shall receive a disability pension computed according to
1282	subparagraph (5)(a)1., notwithstanding that he or she might not
1283	have attained age 50 years and might not have 15 or more years
1284	of service credit. Further, if the member has at least 10 years
1285	of service credit, the disability pension shall not be less than
1286	25 percent of the member's average monthly salary at the time of
1287	disability. A disability retiree may select optional forms of
1288	benefits in accordance with paragraph (5)(g).
1289	(c)  Duty disability requirements.--Any member who is
1290	regularly employed in the Department and who becomes physically
1291	or mentally totally and permanently disabled to perform the
1292	duties of a firefighter by reason of an injury or disease
1293	arising out of and in the course of the performance of his or
1294	her duties as a firefighter in the employ of the City, shall,
1295	upon his or her application to the Board, be retired with a
1296	disability pension provided for in this paragraph, provided that
1297	after a medical examination of the member made by or under the
1298	direction of the medical committee, the medical committee
1299	reports to the Board in writing, whether:
1300	1.  The member is wholly prevented from rendering useful
1301	and efficient service as a firefighter; and
1302	2.  The member is likely to remain so disabled continuously
1303	and permanently.
1304
1305	The Board shall admit and consider any other evidence that it
1306	deems appropriate. Any condition or impairment of health of a
1307	member caused by tuberculosis, hypertension, heart disease,
1308	hepatitis, or meningococcal meningitis resulting in total
1309	disability or death shall be presumed to have been accidental
1310	and suffered in the line of duty unless the contrary is shown by
1311	competent evidence, provided such member shall have successfully
1312	passed a physical examination before entering into such service,
1313	which examination failed to reveal any evidence of such
1314	condition. In order to be entitled to the presumption in the
1315	case of hepatitis, meningococcal meningitis, or tuberculosis,
1316	the member must meet the requirements of section 112.181,
1317	Florida Statutes. The final decision as to whether a member
1318	meets the requirements for a disability pension rests with the
1319	Board, based on competent substantial evidence on the record as
1320	a whole.
1321	(d)  Duty disability pension benefits.--Upon retirement on
1322	account of disability, as provided in paragraph (c), a member
1323	shall receive a monthly pension for the remainder of his or her
1324	life, equal to the greater of the following:
1325	1.  Sixty-five percent of the final average salary; or
1326	2.  The sum of the following:
1327	a.  Two and one-half percent of the member's final average
1328	salary multiplied by the number of years, and fraction of a
1329	year, of his or her service credit to a maximum of 26 years of
1330	service, and 2 percent of his or her final average salary
1331	multiplied by the number of years, and fraction of a year, in
1332	excess of 26 years of service, for all years of service earned
1333	through September 30, 1988; and
1334	b.  Two percent of the member's final average salary
1335	multiplied by the number of years, and fraction of a year, of
1336	his or her service credit earned on or after October 1, 1988.
1337	(e)  Medical committee.--The medical committee provided for
1338	in this subsection shall consist of no less than two qualified
1339	health professionals, one of whom shall be designated by the
1340	Board and one by the member. If deemed necessary by the Board, a
1341	third qualified health professional, selected by the two
1342	committee members previously designated, may be named to the
1343	medical committee. The medical committee shall report to the
1344	Board the existence and degree of permanent physical impairment
1345	of the member, if any, based upon the most recent edition of the
1346	American Medical Association's Guide to the Evaluation of
1347	Permanent Impairment, if applicable.
1348	(f)  Exclusions from disability pensions.--No disability
1349	pension shall be payable, either as a duty disability pension or
1350	as a nonduty disability pension, if the disability is a result
1351	of:
1352	1.  Excessive and habitual use by the member of drugs,
1353	intoxicants, or narcotics;
1354	2.  Injury or disease sustained by the member while
1355	willfully and illegally participating in fights, riots, or civil
1356	insurrections or while committing a crime;
1357	3.  Injury or disease sustained by the member while serving
1358	in any armed forces;
1359	4.  Injury or disease sustained by the member after his or
1360	her employment has terminated;
1361	5.  Injury or disease sustained by the member while working
1362	for anyone other than the City and arising out of such
1363	employment; or
1364	6.  Injury or disease sustained by the member before coming
1365	to work for the City. This exclusion applies to duty disability
1366	applications only.
1367	(g)  Payment of disability pensions.--Monthly disability
1368	retirement benefits shall be payable as of the date the Board
1369	determines that the member was entitled to a disability pension;
1370	however, the first payment shall actually be paid on the first
1371	day of the first month after the Board determines such
1372	entitlement. Any portion due for a partial month shall be paid
1373	together with the first payment. If the member recovers from the
1374	disability prior to his or her normal retirement date, the last
1375	payment shall be the payment due next preceding the date of such
1376	recovery or, if the member dies without recovering from his or
1377	her disability, then the following shall apply:
1378	1.  Married member.--Beneficiary benefits as set forth in
1379	subsection (7) shall be paid if, at the time of death, the
1380	member was married or had a dependent child or children or
1381	parent or parents; or
1382	2.  Unmarried member with 10 years of service or
1383	more.--Payments shall be made until the member's death or the
1384	120th monthly payment, whichever is later; or
1385	3.  Unmarried member with less than 10 years of
1386	service.--Payments shall be made until the member's death.
1387
1388	Any monthly retirement income payments due after the death of a
1389	disabled member shall be paid to the member's designated
1390	beneficiary or beneficiaries or the member's estate as provided
1391	in paragraph (5)(h) or subsection (7), as applicable.
1392	(h)  Reexamination of disability retirant.--At least once
1393	each year during the first 5 years following a member's
1394	retirement on account of disability, and at least once in each
1395	3-year period thereafter, the Board shall require any disability
1396	retirant who has not attained age 50 to undergo a medical
1397	examination to be made by or under the direction of a physician
1398	designated by the Board. However, if a disability retirant has
1399	lost the firefighter certification, as required by Florida
1400	Statutes, then the reexamination is discretionary. If the
1401	retirant refuses to submit to the medical examination in any
1402	such period, his or her disability pension may be suspended by
1403	the Board until withdrawal of such refusal. If such refusal
1404	continues for 1 year, all of the retirant's rights in and to a
1405	disability pension may be revoked by the Board. If, upon medical
1406	examination of the retirant, the physician reports to the Board
1407	that the retirant is physically able and capable of performing
1408	the duties of a firefighter in the rank held by him or her at
1409	the time of retirement, the member shall be returned to
1410	employment in the Department at a salary not less than the
1411	salary of the rank last held by him or her, provided that return
1412	to the employ of the Department shall be subject to the approval
1413	of the Fire Chief. Should the retirant become employed by the
1414	City, his or her disability pension shall terminate.
1415	(i)  Return to work of a disability retirant; service
1416	credit.--In the event a disability retirant is returned to
1417	employment in the department, as provided in paragraph (h), his
1418	or her service credit at the time of disability retirement shall
1419	be restored to his or her credit. In the event he or she retired
1420	under the provisions of paragraph (c), he or she shall be given
1421	service credit for the period he or she was in receipt of a
1422	disability pension. If he or she retired under the provisions of
1423	paragraph (a), he or she shall not be given service credit for
1424	the period he or she was in receipt of a disability pension.
1425	(j)  Expenses of medical examinations for disability.--The
1426	member shall be responsible for the expenses of the physician
1427	the member designates for medical examinations required under
1428	this subsection. Expenses for any other medical examinations
1429	required under this subsection shall be paid by the Fund.
1430	(7)  Beneficiary benefits.--
1431	(a)  Death while in service; 5 years or more (nonduty).--In
1432	the event a member with 5 or more years of service credit dies
1433	while in the employ of the Department, and the Board finds his
1434	or her death to have occurred as the result of causes arising
1435	outside the performance of his or her duties as a firefighter in
1436	the employ of the City, the following applicable pensions shall
1437	be paid:
1438	1.  Surviving spouse's benefits.--The surviving spouse
1439	shall receive a pension equal to two-thirds of the pension the
1440	member would otherwise have been entitled to receive under
1441	paragraph (5)(a), as if the member had retired the day preceding
1442	the date of his or her death, notwithstanding that the member
1443	might not have met the age and service requirements for
1444	retirement as specified in subsection (5). Upon the surviving
1445	spouse's death, the pension shall terminate.
1446	2.  Benefits for children, surviving spouse, etc.--In the
1447	event the deceased member does not leave a surviving spouse, or
1448	if the surviving spouse shall die, and the member leaves an
1449	unmarried child or children under age 18, each such child shall
1450	receive a pension of an equal share of the pension to which said
1451	member's surviving spouse was or would have been entitled. Upon
1452	any such child's adoption, marriage, death, or attainment of age
1453	18, the child's pension shall terminate and said child's pension
1454	shall be apportioned to the deceased member's remaining eligible
1455	children under age 18.
1456	3.  Benefits for dependent parents.--In the event a member
1457	dies and does not leave a surviving spouse or children eligible
1458	to receive a pension provided for in subparagraphs 1. and 2.,
1459	and the member leaves a parent or parents whom the Board finds
1460	to have been dependent upon the member for 50 percent or more of
1461	their financial support, each such parent shall receive a
1462	pension of an equal share of the pension to which the member's
1463	surviving spouse would have been entitled. Upon any such
1464	parent's remarriage or death, the parent's pension shall
1465	terminate.
1466	4.  Estate.--In the event a member dies and does not leave
1467	a surviving spouse, children, or parents eligible to receive a
1468	pension provided for in subparagraph 1., subparagraph 2., or
1469	subparagraph 3., then the benefits remaining, if any, shall be
1470	paid to the member's estate.
1471	(b)  Death in the line of duty.--In the event a member dies
1472	while in the employ of the Department, and the Board finds his
1473	or her death to be the natural and proximate result of causes
1474	arising out of and in the actual performance of duty as a
1475	firefighter in the employ of the City, the following applicable
1476	pensions shall be paid:
1477	1.  Surviving spouse's benefits.--The surviving spouse
1478	shall receive a monthly pension equal to the greater of:
1479	a.  Sixty-six and two-thirds of the member's highest 12
1480	months' salary or top step firefighter pay, whichever is
1481	greater; or
1482	b.  The surviving spouse's share of the member's accrued
1483	benefit. Upon the surviving spouse's death, the pension shall
1484	terminate.
1485	2.  Benefits for children, surviving spouse, etc.--In the
1486	event the deceased member does not leave a surviving spouse, or
1487	if the surviving spouse shall die, and the member leaves an
1488	unmarried child or children under age 18, each such child shall
1489	receive a pension of an equal share of the pension to which the
1490	member's surviving spouse was or would have been entitled. Upon
1491	any such child's adoption, marriage, death, or attainment of age
1492	18, the child's pension shall terminate and said child's pension
1493	shall be apportioned to the deceased member's remaining eligible
1494	children under age 18.
1495	3.  Benefits for dependent parents.--In the event a member
1496	dies and does not leave a surviving spouse or children eligible
1497	to receive a pension provided for in subparagraphs 1. and 2.,
1498	and the member leaves a parent or parents whom the Board finds
1499	to have been dependent upon the member for 50 percent or more of
1500	their financial support, each such parent shall receive a
1501	pension of an equal share of the pension to which said member's
1502	surviving spouse would have been entitled. Upon any such
1503	parent's remarriage or death, the parent's pension shall
1504	terminate.
1505	4.  Estate.--In the event a member dies and does not leave
1506	a surviving spouse, children, or parents eligible to receive a
1507	pension provided for in subparagraph 1., subparagraph 2., or
1508	subparagraph 3., then the benefits remaining, if any, shall be
1509	paid to the member's estate.
1510	(c)  Death after retirement.--Upon the death of a retirant,
1511	the following applicable pensions shall be paid:
1512	1.  Surviving spouse's benefits.--The surviving spouse
1513	shall receive a pension equal to three-fourths of the retirant's
1514	pension at the time of his or her death. Upon the surviving
1515	spouse's death, the pension shall terminate.
1516	2.  Benefits for children, surviving spouse, etc.--In the
1517	event a deceased retirant does not leave a surviving spouse, or
1518	if the surviving spouse shall die, and the retirant leaves an
1519	unmarried child or children under age 18, each such child shall
1520	receive a pension of an equal share of the pension to which the
1521	retirant's surviving spouse was or would have been entitled.
1522	Upon any such child's adoption, marriage, death, or attainment
1523	of age 18, the child's pension shall terminate and said child's
1524	pension shall be apportioned to the deceased retirant's
1525	remaining eligible children under age 18.
1526	3.  Benefits for dependent parents.--In the event a
1527	retirant dies and does not leave a surviving spouse or children
1528	eligible to receive a pension provided for in subparagraphs 1.
1529	and 2., and the retirant leaves a parent or parents whom the
1530	Board finds to have been dependent upon the retirant for 50
1531	percent or more of their financial support, each such parent
1532	shall receive a pension of an equal share of the pension to
1533	which the retirant's surviving spouse would have been entitled.
1534	Upon any such parent's remarriage or death, the parent's pension
1535	shall terminate.
1536	4.  Estate.--In the event a retirant dies and does not
1537	leave a surviving spouse, children, or parents eligible to
1538	receive a pension provided for in subparagraph 1., subparagraph
1539	2., or subparagraph 3., then the benefits remaining, if any,
1540	shall be paid to the retirant's estate.
1541	(8)  Acceptance of pension no bar to subsequent work.--The
1542	acceptance of a pension by a member upon retirement shall not
1543	bar the member from engaging in any other business thereafter.
1544	(9)  Pension not assignable or subject to garnishment.--The
1545	pensions or other benefits accrued or accruing to any person
1546	under the provision of this act and the accumulated
1547	contributions and the cash securities in the Funds created under
1548	this act shall not be subject to execution or attachment or to
1549	any legal process whatsoever, and shall be unassignable.
1550	However, pursuant to a court support order, the Trustees may
1551	direct that the retirement benefits be paid for alimony or child
1552	support in accordance with rules and regulations adopted by the
1553	Board of Trustees.
1554	(10)  Transfer of funds.--All funds and assets previously
1555	owned and controlled by the West Palm Beach Firemen's Relief and
1556	Pension Fund are vested in the Board of this Fund.
1557	(11)  Ordinances applicable.--All ordinances of the City
1558	applicable to chapter 175, Florida Statutes, are hereby made
1559	applicable to this act with equal force and effect. No proposed
1560	change or amendment to this act shall be adopted without
1561	approval required by section 175.351(2), Florida Statutes.
1562	(12)  Existing benefits to continue.--This act, and any
1563	amendments thereto, shall not be construed to decrease the
1564	benefits payable to, or on account of, any member of the Fund.
1565	(13)  Workers' compensation offset.--The pension benefits
1566	payable under this act shall not be offset by workers'
1567	compensation benefits payable on account of the disability or
1568	death of a member except to the extent that the total of the
1569	pension benefits and workers' compensation benefits exceed the
1570	member's monthly average wage.
1571	(14)  Actuarial valuations.--The Fund shall be actuarially
1572	evaluated annually.
1573	(15)  Review procedures.--
1574	(a)  The applicant for benefits under this chapter may,
1575	within 20 days after being informed of the denial of his or her
1576	request for pension benefits, appeal the denial by filing a
1577	reply to the proposed order with the pension's secretary. If no
1578	appeal is filed within the time period, then the proposed order
1579	shall be final.
1580	(b)  The Board of Trustees shall hold a hearing within 45
1581	days after the receipt of the appeal. Written notice of the
1582	hearing shall be sent by certified mail return
1583	receipt/restricted to individual, to the applicant at the
1584	address listed on the application 10 days prior to the hearing.
1585	(c)  The procedures at the hearing shall be as follows:
1586	1.  All parties shall have an opportunity to respond, to
1587	present physical and testimonial evidence and argument on all
1588	issues involved, to conduct cross-examination, to submit
1589	rebuttal evidence, and to be represented by counsel. Medical
1590	reports and depositions may be accepted in lieu of live
1591	testimony at the Board's discretion.
1592	2.  All witnesses shall be sworn.
1593	3.  The applicant and the Board shall have an opportunity
1594	to question all witnesses.
1595	4.  Formal rules of evidence and formal rules of civil
1596	procedure shall not apply. The proceedings shall comply with the
1597	essential requirements of due process and law.
1598	5.  The record in a case governed by this subsection shall
1599	consist only of:
1600	a.  A tape recording of the hearing, to be taped and
1601	maintained as part of the official files of the Board of
1602	Trustees by the pension's secretary.
1603	b.  Evidence received or considered.
1604	c.  All notices, pleadings, motions, and intermediate
1605	rulings.
1606	d.  Any decisions, opinions, proposed or recommended
1607	orders, or reports by the Board of Trustees.
1608	(d)  Within 5 days after the first hearing, the Board shall
1609	take one of the following actions:
1610	1.  Grant the pension benefits by overturning the proposed
1611	order by a majority vote.
1612	2.  Deny the benefits and approve the proposed order as a
1613	final order after making any changes in the order the Board
1614	feels is necessary.
1615	(e)  Findings of fact by the Board shall be based on
1616	competent, substantial evidence on the record.
1617	(f)  Within 20 calendar days after rendering its order, the
1618	Board of Trustees shall send to the applicant, by certified mail
1619	return receipt/restricted to individual, a copy of the order.
1620	(g)  The applicant may seek review of the order by the
1621	Board of Trustees by filing a petition for writ of certiorari
1622	with the circuit court within 30 days.
1623	(16)  Lump sum payment of small retirement
1624	income.--Notwithstanding any provision of the Fund to the
1625	contrary, if the single sum value of the accrued retirement
1626	income is less than $5,000 as of the date of retirement or
1627	termination of service, whichever is applicable, the Board of
1628	Trustees, in the exercise of its discretion, may specify that
1629	the actuarial equivalent of such retirement income be paid in
1630	lump sum.
1631	(17)  Pickup of employee contributions.--Effective the
1632	first day of the first full payroll period of the first calendar
1633	quarter following receipt of a favorable determination letter
1634	from the Internal Revenue Service, the City shall pick up the
1635	member contribution required by this section. The contributions
1636	so picked up shall be treated as employer contributions in
1637	determining tax treatment under the United States Internal
1638	Revenue Code. The City shall pick up the member contributions
1639	from funds established and available for salaries, which funds
1640	would otherwise have been designated as member contributions and
1641	paid to the Fund. Member contributions picked up by the City
1642	pursuant to this subsection shall be treated for all other
1643	purposes of making a refund of members' contributions, and for
1644	all other purposes of this and other laws, in the same manner
1645	and to the same extent as member contributions made prior to the
1646	effective date of this subsection. The intent of this subsection
1647	is to comply with section 414(H)(2) of the Internal Revenue
1648	Code.
1649	(18)  Internal Revenue Code limits.--
1650	(a)  In no event may a member's annual benefit exceed
1651	$160,000, adjusted for cost of living in accordance with
1652	Internal Revenue Code ("IRC") Section 415(d).
1653	(b)  If a member has less than 10 years of service with the
1654	City, the applicable limitation in paragraph (a) shall be
1655	reduced by multiplying such limitation by a fraction, not to
1656	exceed 1. The numerator of such fraction shall be the number of
1657	years, or part thereof, of service with the City; the
1658	denominator shall be 10 years.
1659	(c)  For purposes of this subsection, "annual benefit"
1660	means a benefit payable annually in the form of a straight life
1661	annuity with no ancillary or incidental benefits and with no
1662	member or rollover contributions. To the extent that ancillary
1663	benefits are provided, the limits set forth in paragraph (a)
1664	shall be reduced actuarially, using an interest rate assumption
1665	equal to the greater of 5 percent or the rate being used for
1666	actuarial equivalence, to reflect such ancillary benefits.
1667	(d)  If distribution of retirement benefits begins before
1668	age 62, the dollar limitation as described in paragraph (a)
1669	shall be reduced using an interest rate assumption equal to the
1670	greater of 5 percent or the interest rate used for actuarial
1671	equivalence; however, retirement benefits shall not be reduced
1672	below $75,000 if payment of benefits begins at or after age 55,
1673	and not below the actuarial equivalent of $75,000 if payment of
1674	benefits begins before age 55. For a member with 15 or more
1675	years of service with the City, the reductions described above
1676	shall not reduce such member's benefit below $50,000, adjusted
1677	for cost of living in accordance with IRC Section 415(d), but
1678	only for the year in which such adjustment is effective. If
1679	retirement benefits begin after age 65, the dollar limitation of
1680	paragraph (a) shall be increased actuarially by using an
1681	interest assumption equal to the lesser of 5 percent or the rate
1682	used for actuarial equivalence.
1683	(e)  Compensation in excess of limitations set forth in
1684	Section 401(a)(17) of the Internal Revenue Code shall be
1685	disregarded. The limitation on compensation for an eligible
1686	employee shall not be less than the amount which was allowed to
1687	be taken into account hereunder as in effect on July 1, 1993.
1688	"Eligible employee" is an individual who was a member before the
1689	first plan year beginning after December 31, 1995.
1690	(19)  Required distributions.--In accordance with IRC
1691	Section 401(9)(C), any and all benefit payments shall begin by
1692	the later of:
1693	(a)  April 1 of the calendar year following the calendar
1694	year of the member's retirement date; or
1695	(b)  April 1 of the calendar year following the calendar
1696	year in which the employee attains age 70 1/2.
1697	(20)  Miscellaneous requirements.--
1698	(a)  No benefit of any kind shall be payable from the
1699	assets of the Pension Fund unless specifically provided for in
1700	this act; however, the Board of Trustees, with the approval of
1701	the City, may grant ad hoc benefits after a public hearing and
1702	acceptance by the state of an actuarial impact statement
1703	submitted pursuant to part VII of chapter 112, Florida Statutes.
1704	(b)  The City may not offset any part of its required
1705	annual contribution by the Fund's assets except as determined in
1706	an actuarial valuation, the report for which is determined to be
1707	state accepted pursuant to part VII of chapter 112, Florida
1708	Statutes.
1709	(c)  All provisions of this act and operations of the
1710	Pension Fund shall be carried out in compliance with part VII of
1711	chapter 112, Florida Statutes.
1712	(d)  False or misleading statements made to obtain
1713	retirement benefits prohibited.--
1714	1.  It is unlawful for a person to willfully and knowingly
1715	make, or cause to be made, or to assist, conspire with, or urge
1716	another to make, or cause to be made, any false, fraudulent, or
1717	misleading oral or written statement or to withhold or conceal
1718	material information to obtain any benefit under this plan.
1719	2.a.  A person who violates subparagraph 1. commits a
1720	misdemeanor of the first degree, punishable as provided in
1721	section 775.082 or section 775.083, Florida Statutes.
1722	b.  In addition to any applicable criminal penalty, upon
1723	conviction for a violation of subparagraph 1., a participant or
1724	beneficiary of this plan may, in the discretion of the Board of
1725	Trustees, be required to forfeit the right to receive any or all
1726	benefits to which the person would otherwise be entitled under
1727	this Plan. For the purposes of this sub-subparagraph,
1728	"conviction" means a determination of guilt that is the result
1729	of a plea or trial, regardless of whether adjudication is
1730	withheld.
1731	(21)  Rollover distributions.--
1732	(a)  This subsection applies to distributions made on or
1733	after January 1, 1993. Notwithstanding any provision of the Plan
1734	to the contrary that would otherwise limit a distributee's
1735	election under this subsection, a distributee may elect, at the
1736	time and in the manner prescribed by the Board of Trustees, to
1737	have any portion of an eligible rollover distribution paid
1738	directly to an eligible retirement plan specified by the
1739	distributee in a direct rollover.
1740	(b)1.  "Eligible rollover distribution" is any distribution
1741	of all or any portion of the balance to the credit of the
1742	distributee, except that an eligible rollover does not include
1743	any distribution that is one of a series of substantially equal
1744	periodic payments (not less frequently than annually) made for
1745	the life (or life expectancy) of the distributee or the joint
1746	lives (or joint life expectancies) of the distributee and the
1747	distributee's designated beneficiary, or for a specified period
1748	of 10 years or more; any distribution to the extent such
1749	distribution is required under section 401(a)(9) of the Code;
1750	and the portion of any distribution that is not includable in
1751	gross income.
1752	2.  "Eligible retirement plan" is an individual retirement
1753	account described in section 408(a) of the Code, an individual
1754	retirement annuity described in section 408(b) of the Code, an
1755	annuity plan described in section 403(a) of the Code, or a
1756	qualified trust described in section 401(a) of the Code that
1757	accepts the distributee's eligible rollover distribution.
1758	However, in the case of an eligible rollover distribution to the
1759	surviving spouse, an "eligible retirement plan" is an individual
1760	retirement account or individual retirement annuity.
1761	3.  "Distributee" includes an employee or former employee.
1762	In addition, the employee's or former employee's surviving
1763	spouse and the employee's or former employee's spouse or former
1764	spouse who is entitled to payment for alimony and child support
1765	under a domestic relations order determined to be qualified by
1766	this Fund are distributees with regard to the interest of the
1767	spouse or former spouse.
1768	4.  "Direct rollover" is a payment by the Plan to the
1769	eligible retirement plan specified by the distributee.
1770	(22)  Rollovers from qualified plans.--
1771	(a)  A member may roll over all or part of his or her
1772	assets in another qualified plan to his or her chapter 175,
1773	Florida Statutes, share account, provided all of the following
1774	requirements are met:
1775	1.  Some or all of the amount distributed from the other
1776	plan is rolled over to this plan no later than the 60th day
1777	after distribution was made from the plan or, if distributions
1778	are made in installments, no later than the 60th day after the
1779	last distribution was made.
1780	2.  The amount rolled over to the share account does not
1781	include any amounts contributed by the member to the plan on a
1782	posttax basis.
1783	3.  The rollover is made in cash.
1784	4.  The member certifies that the distribution is eligible
1785	for a rollover.
1786	5.  Amounts which the Trustee accepts as a rollover to this
1787	Fund shall, along with any earnings allocated to the Trustee, be
1788	fully vested at all times.
1789
1790	The rollover may also be made to this plan from an individual
1791	retirement account qualified under Code Section 408 when the
1792	individual retirement was merely used as a conduit for funds
1793	from another qualified plan and the rollover is made in
1794	accordance with the rules provided in subparagraphs 1.-5.
1795	Amounts rolled over may be segregated from other Fund assets.
1796	The Trustee shall separately account for gains, losses, and
1797	administrative expenses on these rollovers as provided for in
1798	paragraphs (5)(d) and (j). In addition, the Fund may accept the
1799	direct transfer of a member's benefits from another qualified
1800	retirement plan or Internal Revenue Code section 457 plan. The
1801	Fund shall account for direct transfers in the same manner as a
1802	rollover and shall obtain certification from the member that the
1803	amounts are eligible for a rollover or direct transfer to this
1804	Fund.
1805	(b)  Transfer of accumulated leave.--
1806	1.  Members eligible to receive accumulated sick leave,
1807	accumulated vacation leave, or any other accumulated leave
1808	payable upon separation shall have the leave transferred to the
1809	Fund up to the amount permitted by law. Any additional amounts
1810	shall be paid directly to the member. Members on whose behalf
1811	leave has been transferred shall maintain the entire amount of
1812	the transferred leave balance in the DROP or Share Account.
1813	2.  If a member on whose behalf the City makes a
1814	transferred leave balance to the Plan dies after retirement or
1815	other separation, then any person who would have received a
1816	death benefit had the member died in service immediately prior
1817	to the date of retirement or other separation shall be entitled
1818	to receive an amount equal to the transferred leave balance in a
1819	lump sum. In the case of a surviving spouse or former spouse, an
1820	election may be made to transfer the leave balance to an
1821	eligible retirement plan in lieu of the lump sum payment.
1822	Failure to make such an election by the surviving spouse or
1823	former spouse within 60 days after the member's death shall be
1824	deemed an election to receive the lump sum payment.
1825	3.  The Board, by rule, shall prescribe the method for
1826	implementing the provisions of this paragraph.
1827	4.  Amounts transferred under this section shall remain
1828	invested in the Pension Fund for a period of not less than 1
1829	year.
1830	(23)  Actuarial assumptions.--The following actuarial
1831	assumptions shall be used for all purposes in connection with
1832	this Fund, effective October 1, 1998:
1833	(a)  The period for amortizing current, future, and past
1834	actuarial gains or losses shall be 20 years.
1835	(b)  The assumed investment rate of return shall be 8.25
1836	percent.
1837	(24)  Prior firefighter service.--Unless otherwise
1838	prohibited by law, the years, or fractional parts of years, that
1839	a member previously served as a firefighter with the City during
1840	a period of employment and for which accumulated contributions
1841	were withdrawn from the fund, or the years, and fractional parts
1842	of years, that a member served as a firefighter for this or any
1843	other municipal, county, or state fire department or district or
1844	any time served in the military service of the Armed Forces of
1845	the United States shall be added to the years of credited
1846	service, provided that the member contributes to the fund the
1847	sum that would have been contributed, based on the member's
1848	salary and the employee contribution rate in effect at the time
1849	that the credited service is requested, had the member been a
1850	member of this system for the years, or fractional parts of
1851	years, for which the credit is requested, plus the amount
1852	actuarially determined, such that the crediting of service does
1853	not result in any cost to the fund, plus payment of costs for
1854	all professional services rendered to the board in connection
1855	with the purchase of years of credited service.
1856	(a)  Payment by the member of the required amount may be
1857	made within 6 months after the request for credit and in one
1858	lump sum payment, or the member may buy back this time over a
1859	period equal to the length of time being purchased or 5 years,
1860	whichever is greater, at an interest rate which is equal to the
1861	Fund's actuarial assumption. A member may request to purchase
1862	some or all years of service.
1863	(b)  The credit purchased under this section shall count
1864	for all purposes, except vesting.
1865	(c)  In no event, however, may credited service be
1866	purchased pursuant to this section for prior service with any
1867	other municipal, county, or state fire department or district,
1868	if such prior service forms or will form the basis of a
1869	retirement benefit or pension from another retirement system or
1870	plan.
1871	(d)  In the event that a member who is in the process of
1872	purchasing service suffers a disability and is awarded a benefit
1873	from the plan, the member shall not be required to complete the
1874	buyback. However, contributions made prior to the date the
1875	disability payment begins will be retained by the Fund.
1876	(e)  If a member who has either completed the purchase of
1877	service or is in the process of purchasing service terminates
1878	before vesting, the member's contributions shall be refunded,
1879	including the buyback contributions.
1880	(f)  A request to purchase service may be made at any time
1881	during the course of employment; however, the buyback is a one-
1882	time opportunity.
1883	Section 2.  This act shall take effect upon becoming a law.

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