HB 777

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

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