HB 937

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 definitions relating to the West Palm
5	Beach Firefighters Pension Fund; revising terms of the
6	board of trustees; providing that an authorized fiduciary
7	may sign drafts for fund disbursements; providing
8	additional requirements for the board relating to certain
9	holdings; deleting certain requirements relating to
10	service pension for normal retirement, including optional
11	transition benefits for certain employees; providing that
12	a retired member may change certain designation of joint
13	annuitant or beneficiary relating to payment of benefits;
14	providing that members who are disabled due to specified
15	military service are not excluded from disability
16	pensions; providing that the board may authorize
17	withholdings from retirement pay under certain
18	circumstances; providing that a firefighter for a federal
19	fire department constitutes prior firefighter service;
20	providing for termination of the fund and distribution of
21	assets; providing an effective date.
22
23	Be It Enacted by the Legislature of the State of Florida:
24
25	Section 1.  Section 17 of chapter 24981 (1947), Laws of
26	Florida, as amended, is amended to read:
27	Section 17.  West Palm Beach Firefighters Pension Fund.-
28	(1)  Creation of fund.-There is hereby created a special
29	fund for the Fire Department of the City of West Palm Beach to
30	be known as the West Palm Beach Firefighters Pension Fund. All
31	assets of every description held in the name of the West Palm
32	Beach Firemen's Relief and Pension Fund and in the name of the
33	West Palm Beach Firefighters Pension Fund have been and shall
34	continue to be combined.
35	(a)  Definitions.-The following words or phrases, as used
36	in this act, shall have the following meanings, unless a
37	different meaning is clearly indicated by the context:
38	1.  "Actuarial equivalent value," "actuarial equivalence,"
39	or "single sum value" means the stated determination using an
40	interest rate of 8.25 percent per year and the 1983 Group
41	Annuity Mortality Table for males.
42	2.  "Beneficiary" means any person who is not at retirement
43	but who is entitled to receive a benefit from the West Palm
44	Beach Firefighters Pension Fund or the West Palm Beach Firemen's
45	Relief and Pension Fund, as applicable.
46	3.  "Board of Trustees" or "Board" means the Board of
47	Trustees provided for in this act.
48	4.  "City" means the City of West Palm Beach, Florida.
49	5.  "Department" means the Fire Department of the City.
50	6.  "Enrolled actuary" means an actuary who is enrolled
51	under Subtitle C of Title III of the Employee Retirement Income
52	Security Act of 1974 and who is a member of the Society of
53	Actuaries or the American Academy of Actuaries.
54	7.  "Final average salary" means the average of the monthly
55	salary paid a member in the 2 best years of employment, paid in
56	and prior to the 23rd year of credited service. No active
57	nonDROP member shall have any salary amounts paid prior to
58	October 1, 2000, used in the calculation of final average
59	salary. Those members whose final average salary would include
60	salary amounts paid prior to October 1, 2000, shall use salary
61	paid during the period from October 1, 2000, through September
62	30, 2001, to replace any salary amounts paid prior to October 1,
63	2000. The replacement salary from October 1, 2000, through
64	September 30, 2001, may range anywhere between 2 weeks and 104
65	weeks, but shall only be enough salary as is sufficient to
66	replace the salary paid prior to October 1, 2000. The
67	replacement salary amounts from October 1, 2000, to September
68	30, 2001, shall be prorated based upon an annual salary.
69	8.  "Firefighter" means any person employed in the
70	Department who is certified as a firefighter as a condition of
71	employment in accordance with the provisions of section 633.35,
72	Florida Statutes, whose duty it is to extinguish fires and
73	protect life and property. The term includes all certified,
74	supervisory, and command personnel whose duties include, in
75	whole or in part, the supervision, training, guidance, and
76	management responsibilities of full-time firefighters, part-time
77	firefighters, or auxiliary firefighters but does not include
78	part-time firefighters or auxiliary firefighters whose duty it
79	is to extinguish fires and protect life and property.
80	9.  "Fund" or "Pension Fund" means the West Palm Beach
81	Firefighters Pension Fund or the West Palm Beach Firemen's
82	Relief and Pension Fund, as applicable.
83	10.  "Member" means any person who is included in the
84	membership of the Fund in accordance with paragraph (h).
85	11.  "Pension" means a monthly amount payable from the Fund
86	throughout the future life of a person, or for a limited period
87	of time, as provided in this act.
88	12.  "Qualified health professional" means a person duly
89	and regularly engaged in the practice of his or her profession
90	who holds a professional degree from a university or college and
91	has had special professional training or skill regarding the
92	physical or mental condition, disability, or lack thereof, upon
93	which he or she is to present evidence to the Board.
94	13.  "Qualified public depository" means any bank or
95	savings association organized and existing under the laws of
96	Florida and any bank or savings association organized under the
97	laws of the United States that has its principal place of
98	business in Florida, or has a branch office which is authorized
99	under the laws of Florida or the United States to receive
100	deposits in Florida, that meets all of the requirements of
101	chapter 280, Florida Statutes, and that has been designated by
102	the Treasurer of the State of Florida as a qualified public
103	depository.
104	14.  "Retirant" or "retiree" means any member who retires
105	with a pension payable from the Fund.
106	15.  "Retirement" means a member's withdrawal from City
107	employment with a pension payable from the Fund.
108	16.  "Salary" means:
109	a.  On and after October 1, 2001, "salary," for the purpose
110	of pension contributions and benefit calculations, shall mean
111	payments made to a firefighter by the City for: regular hours
112	worked; step-up pay; longevity pay; all authorized leave time,
113	which includes compensatory time used, earned personal leave
114	used, emergency leave used, sick leave used, sick leave pay bank
115	used, vacation time used, holiday time used, emergency leave,
116	bereavement leave, and administrative leave; certification pay,
117	which includes paramedic, hazardous material technician, special
118	operations, dive rescue, fire service instructor, fire
119	inspector, and SWAT certification pay; fire inspector standby
120	pay; educational bonus incentive; pay received from the City
121	during military training; and sick leave conversion when such
122	leave is converted during the course of active employment. The
123	definition of "salary" specifically excludes any lump sum
124	payments for accumulated leave such as that received upon final
125	payoff. Employees who are specifically excluded from bargaining
126	unit recognition as set forth in Article 2, but who are members
127	of the West Palm Beach Firefighters Pension Fund, shall continue
128	to make contributions on management incentive benefits. This
129	definition of compensation shall not include any duty employment
130	that is performed for other than the City of West Palm Beach per
131	Article 31, Salary Plan.
132	b.  On and after January 1, 2007, "salary," for the purpose
133	of pension contributions and benefit calculations, shall mean
134	total cash remuneration paid by the City to a firefighter for
135	services rendered, excluding payments for overtime and any lump-
136	sum payments for accumulated leave such as accrued vacation
137	leave, accrued sick leave, and accrued personal leave. Employees
138	who are specifically excluded from bargaining unit recognition
139	as set forth in Article 2, but who are members of the West Palm
140	Beach Firefighters Pension Fund, shall continue to make
141	contributions on management incentive benefits. This definition
142	of compensation shall not include any duty employment that is
143	performed for other than the City of West Palm Beach per Article
144	31, Salary Plan. Beginning with salary paid after December 31,
145	2008, and pursuant to Internal Revenue Code Section 414(u)(7),
146	the definition of salary includes amounts paid by the City as
147	differential wages to members who are absent from employment
148	while in qualified military service.
149	17.  "Service," "credited service," or "service credit"
150	means the total number of years, and fractional parts of years,
151	of employment of any member in the employ of the Department,
152	omitting intervening years and fractional parts of years of
153	service when the member was not employed by the City. However,
154	no member shall receive credit for years, or fractional parts of
155	years, of service for which the member has withdrawn his or her
156	contributions to the Fund, unless the member repays into the
157	Fund the contributions withdrawn, with interest, within 60
158	months after reemployment. Further, a member may voluntarily
159	leave his or her contributions in the Fund for a period of 5
160	years after leaving the employ of the Department, pending the
161	possibility of his or her being rehired by the Department and
162	remaining employed for a period of not less than 3 years,
163	without losing credit for the time he or she has participated
164	actively as a firefighter. If he or she does not remain employed
165	for a period of at least 3 years as a firefighter with the
166	Department upon reemployment, within 5 years his or her
167	contributions shall be returned without interest in accordance
168	with paragraph (5)(i). In determining the aggregate number of
169	years of service of any member, the time spent in the military
170	service of the United States or United States Merchant Marine by
171	the member on leave of absence from the Department for such
172	reason shall be added to the years of service, provided such
173	time shall not exceed 5 years. Further, to receive credit for
174	such service the member must return to employment as a
175	firefighter of the City within 1 year after the date of release
176	from such active service. Effective January 1, 2007, a member
177	who dies or becomes disabled while serving on active duty
178	military service which intervenes the member's employment shall
179	be entitled to the rights of this section even though such
180	member was not reemployed by the City. A member who dies or
181	becomes disabled while on active duty military service shall be
182	treated as though reemployed the day before the member became
183	disabled or died, was credited with the service the member would
184	have been entitled to under this section, and then either died a
185	nonduty death while employed or became disabled from a nonduty
186	disability.
187	(b)  Gender and number.-The masculine gender includes the
188	feminine, and words of the singular with respect to persons
189	shall include the plural and vice versa.
190	(c)  Board of Trustees created.-There is hereby created a
191	Board of Trustees, which shall be solely responsible for
192	administering the West Palm Beach Firefighters Pension Fund and
193	the West Palm Beach Firemen's Relief and Pension Fund. The Board
194	shall be a legal entity, with the power to bring and defend
195	lawsuits of every kind, nature, and description, and shall be
196	independent of the City to the extent required to accomplish the
197	intent, requirements, and responsibilities provided for in this
198	act and applicable law. The Board shall consist of five
199	trustees, as follows:
200	1.  Two legal residents of the City, who shall be appointed
201	by the City. Effective for the current and future terms, each
202	resident-trustee shall serve as a trustee for a period of 4 2
203	years, unless sooner replaced by the City, at whose pleasure he
204	or she shall serve, and may succeed himself or herself as
205	trustee.
206	2.  Two full-time firefighters shall be elected by a
207	majority of the firefighters who are members of the Fund.
208	Elections shall be held under such reasonable rules and
209	regulations as the Board shall from time to time adopt.
210	Effective for current and future terms, each member-trustee
211	shall serve as a trustee for a period of 4 2 years, unless he or
212	she sooner ceases to be a firefighter in the employ of the
213	Department, whereupon the members shall choose a successor in
214	the same manner as the original appointment. Each member-trustee
215	may succeed himself or herself as trustee.
216	3.  A fifth trustee shall be chosen by a majority of the
217	other four trustees. Effective for current and future terms, the
218	This fifth person's name shall be submitted to the City, which
219	shall, as a ministerial duty, appoint such person to the Board
220	as a fifth trustee. The fifth person shall serve as trustee for
221	a period of 4 2 years, and may succeed himself or herself as
222	trustee.
223	(d)  Board vacancy; how filled.-In the event a trustee
224	provided for in subparagraph (c)2. ceases to be a firefighter in
225	the employ of the Department, such trustee shall be considered
226	to have resigned from the Board. In the event a trustee provided
227	for in subparagraph (c)2. shall resign, be removed, or become
228	ineligible to serve as a trustee, the Board shall, by
229	resolution, declare the office of trustee vacated as of the date
230	of adoption of said resolution. If such a vacancy occurs in the
231	office of trustee within 90 days of the next succeeding election
232	for trustee, the vacancy shall be filled at the next regular
233	election for the next term; otherwise, the vacancy shall be
234	filled for the unexpired portion of the term by the members in
235	the same manner as an original appointment. In the event a
236	trustee provided for in subparagraph (c)1. or subparagraph (c)3.
237	shall resign, be removed, or become ineligible to serve as a
238	trustee, the Board shall, by resolution, declare the office of
239	trustee vacated as of the date of adoption of said resolution. A
240	successor for the unexpired portion of the term shall be chosen
241	in the same manner as an original appointment.
242	(e)  Board meetings; quorum; procedures.-The Board shall
243	hold meetings regularly, at least once in each quarter year, and
244	shall designate the time and place thereof. At any meeting of
245	the Board, three trustees shall constitute a quorum. Each
246	trustee shall be entitled to one vote on each question before
247	the Board and at least three concurring votes shall be required
248	for a decision by the Board at any of its meetings. The Board
249	shall adopt its own rules of procedure and shall keep a record
250	of its proceedings. All public records of the Fund shall be kept
251	and maintained as required by law. All meetings of the Board
252	shall be open to the public and shall be held as required by
253	law.
254	(f)  Board chair.-The Board shall elect a chair from among
255	the trustees.
256	(g)  Board secretary.-The Board shall elect a secretary
257	from among the trustees. The secretary shall keep a complete
258	minute book of the actions, proceedings, and hearings of the
259	Board.
260	(h)  Membership.-All firefighters and all who hold a
261	position of firefighter in the employ of the Department shall be
262	members in the Fund. All firefighters, including the chief, who
263	were in the employ of the Department as of April 30, 1959, shall
264	be given credit for service rendered in the employ of the
265	Department prior to May 1, 1959. New members to the Fund are
266	required to undergo a physical examination for purposes of
267	determining preexisting conditions. This physical examination
268	shall be conducted in conjunction with the City's postoffer,
269	preemployment physical examination. The Board's medical director
270	shall review the results of this physical examination and
271	provide notice to the Board and the member of any abnormal
272	findings of the examination. This physical examination will be
273	used for the purposes of establishing a physical profile of the
274	member for determining preexisting conditions and presumptive
275	illnesses as provided for in subsection (6). After review, if
276	further physical examination is required, such examination shall
277	be conducted at Board expense.
278	(i)  Compensation.-The trustees of the Fund shall not
279	receive any compensation for their services as such, but may
280	receive expenses and per diem as provided by law.
281	(2)  Professional and clerical services.-
282	(a)  Pension administrator.-The pension administrator of
283	the Fund shall be designated by the Board and shall carry out
284	its orders and directions.
285	(b)  Legal counsel.-The City Attorney shall give advice to
286	the Board in all matters pertaining to its duties in the
287	administration of the Fund whenever requested, shall represent
288	and defend the Board as its attorney in all suits and actions at
289	law or in equity that may be brought against it, and shall bring
290	all suits and actions in its behalf that may be required or
291	determined by the Board. However, if the Board so elects, it may
292	employ independent legal counsel at the Fund's expense for the
293	purposes set forth in this act.
294	(c)  Actuary.-The Board shall designate an enrolled
295	actuary, who shall be its technical advisor and who shall
296	perform such actuarial services as are required.
297	(d)  Certified public accountant.-The Board shall employ,
298	at its expense, a certified public accountant to conduct an
299	independent audit of the Fund. The certified public accountant
300	shall be independent of the Board and the City.
301	(e)  Additional professional, technical, or other
302	services.-The Board shall have the authority to employ such
303	professional, technical, or other advisors as required to carry
304	out the provisions of this act.
305	(3)  Sources of revenue.-The financing of the Fund shall
306	consist of the following sources of revenue:
307	(a)  Taxes of insurance companies.-The moneys returned to
308	the City as provided by chapter 175, Florida Statutes, shall be
309	used to fund the share account benefit described in paragraph
310	(5)(j). For the plan year October 1, 2003, through September 30,
311	2004, all of the chapter 175 funds received shall be utilized to
312	offset the City's contributions for the cost of the purchase of
313	extra benefits, less any amounts used to fund the share account
314	benefits for DROP members who do not convert in accordance with
315	sub-subparagraph (5)(a)2.b. Beginning October 1, 2004, the
316	chapter 175 moneys shall again be used in full to fund the share
317	account benefits provided for in paragraph (5)(j). The City
318	shall not opt out of participation in chapter 175, Florida
319	Statutes, or any similar statutory enactment unless exigent
320	circumstances exist, such as the bankruptcy of the City or
321	changes or amendments to the statute regarding extra benefits by
322	the Legislature. If any statutory changes are made by the
323	Legislature, the City and the Board may renegotiate the impact
324	of such changes, if necessary.
325	(b)  Member contributions.-Effective the first full payroll
326	period after October 1, 2003, the member shall contribute 9.85
327	percent of his or her salary to the Fund, which shall be
328	deducted each pay period from the salary of each member in the
329	Department. Effective the first full payroll period after
330	October 1, 2004, the member shall contribute 18.2 percent of his
331	or her salary to the Fund, which shall be deducted each pay
332	period from the salary of each member in the Department.
333	Effective the first full payroll period after January 1, 2005,
334	the member shall contribute 18.7 percent of his or her salary to
335	the Fund, which shall be deducted each pay period from the
336	salary of each member in the Department. Effective the first
337	full payroll period after January 1, 2006, the member shall
338	contribute 19.2 percent of his or her salary to the Fund, which
339	shall be deducted each pay period from the salary of each member
340	in the Department. All amounts of member contributions that are
341	deducted shall be immediately paid over to the Pension Fund. For
342	contributions made before October 1, 2004, any contribution
343	amount over 6.85 percent is to be used to purchase eligibility
344	for participation in the postretirement health insurance
345	benefits; effective October 1, 2004, that amount will increase
346	to 15.2 percent.
347	(c)  City contributions.-The City shall contribute to the
348	Fund annually an amount which, together with the contributions
349	from the members and other income sources as authorized by law,
350	will be sufficient to meet the normal cost of the Fund and to
351	fund the actuarial deficiency over a period of not more than 40
352	years, provided that the net increase, if any, in unfunded
353	liability of the Fund arising from significant amendments or
354	other changes shall be amortized within 30 plan years.
355	(d)  Gifts, etc.-All gifts, bequests, and devises when
356	donated for the Fund.
357	(e)  Interest from deposits.-All accretions to the Fund by
358	way of interest or dividends on bank deposits or otherwise.
359	(f)  Other sources.-All other sources of income now or
360	hereafter authorized by law for the augmentation of the Fund.
361	(4)  Custodian of funds.-All moneys and securities of the
362	Fund may be deposited with the cash management coordinator of
363	the City, acting in a ministerial capacity only, who shall be
364	bonded and shall be liable in the same manner and to the same
365	extent as he or she is liable for the safekeeping of funds for
366	the City. However, any funds and securities so deposited with
367	the cash management coordinator shall be kept in a separate fund
368	by the cash management coordinator or clearly identified as
369	funds and securities of the Fund. In lieu thereof, the Board
370	shall deposit the funds and securities in a qualified public
371	depository designated by the Board. The cash management
372	coordinator or other depository shall receive all moneys due
373	said Fund from all sources whatsoever. All tax revenue received
374	pursuant to the provisions of chapter 175, Florida Statutes,
375	shall be deposited into the Fund no more than 5 days after
376	receipt. Member contributions withheld by the City on behalf of
377	a member shall be deposited into the Fund immediately.
378	(a)  Disbursements from the Fund.-The Board may issue
379	drafts upon the Fund pursuant to this act and rules and
380	regulations prescribed by the Board, provided that such drafts
381	shall be issued in accordance with generally accepted accounting
382	procedures, American Institute of Certified Public Accountants
383	guidelines, and rules of the State of Florida Auditor General.
384	All such drafts shall be consecutively numbered, signed by the
385	chair and secretary, or other authorized fiduciary, and each
386	draft shall, upon its face, state the purpose for which it is
387	drawn. For this purpose, the chair and secretary shall be
388	bonded. The Board shall retain such drafts when paid, as
389	permanent vouchers for disbursements made, and no moneys shall
390	be otherwise drawn from the Fund. Payments from the Fund shall
391	be made only upon a specific or general motion or resolution
392	previously adopted by the Board authorizing such payment or
393	payments.
394	(b)  Investment of moneys.-The Board shall have the power
395	and authority to invest and reinvest the moneys of the Fund, and
396	to hold, purchase, sell, assign, transfer, and dispose of any
397	securities and investments held in said Fund. The aim of the
398	investment policies shall be to preserve the integrity and
399	security of Fund principal, to maintain a balanced investment
400	portfolio, to maintain and enhance the value of Fund principal,
401	and to secure the maximum total return on investments that is
402	consonant with safety of principal, provided that such
403	investments and reinvestments shall be limited to the following:
404	1.  Direct obligations of the United States Government or
405	any agency thereof and debentures and other evidences of
406	indebtedness which are fully guaranteed by the United States
407	Government or any agency thereof for the payment of principal
408	and interest.
409	2.  Direct obligations of the State of Florida.
410	3.  In debt securities, preferred and common stocks and
411	mutual fund shares subject to the limitations set forth in this
412	section.
413	4.  In time or savings accounts of a national bank, a state
414	bank insured by the Bank Insurance Fund, a savings and loan
415	association to the extent that deposits are guaranteed by the
416	Savings Association Insurance Fund which is administered by the
417	Federal Deposit Insurance Corporation, or a state or federally
418	chartered credit union whose share accounts are insured by the
419	National Credit Union Share Insurance Fund.
420	5.  Of the total Fund principal in the pension or
421	retirement system, including the amounts deposited in banks or
422	associations, the total thereof invested in preferred stocks
423	shall not aggregate more than 5 percent, and the total amount
424	thereof invested in common stocks and mutual fund shares shall
425	not aggregate more than 70 percent. Percentages shall be based
426	on market value at the end of each reporting period (September
427	30).
428	6.  In real property or real estate investments, such
429	investments shall not aggregate more than 15 percent of the
430	market value of the total Fund principal in the pension or
431	retirement system.
432	7.  In derivative investments and futures, such investments
433	shall not aggregate more than 10 percent of the market value of
434	the total Fund principal in the pension or retirement system.
435	8.  Any investments permitted by sections 112.661 and
436	215.47(1)-(8), (10), and (16), Florida Statutes, up to the
437	limits stated therein.
438	9.  The following minimum standards shall govern the
439	eligibility of securities for purchase as investments:
440	a.  All corporate and association securities and mutual
441	fund shares shall be issued by a corporation or other legal
442	person, incorporated or otherwise, organized within the United
443	States and domiciled therein to the extent required by section
444	175.071(1)(b), Florida Statutes.
445	b.  Not more than 10 percent of the total Fund principal at
446	market value shall be invested in any one issuing company other
447	than obligations of the United States or an agency thereof.
448	c.  All stocks issued or guaranteed by a corporation shall
449	be listed on any one or more of the major stock exchanges. In
450	the case of bonds, at a minimum, 80 percent of bonds purchased
451	for the Fund shall hold a rating in one of the four highest
452	classifications by a major rating service. Said bonds and
453	preferred stocks that are convertible into common stocks shall
454	be considered common stocks and the purchase of same shall be
455	limited by the provisions of subparagraph 5.
456	d.  The Board shall engage the services of professional
457	investment counsel to assist and advise the trustees in the
458	performance of their duties.
459	e.  At least once every 3 years, the Board shall retain an
460	independent consultant professionally qualified to evaluate the
461	performance of its professional money manager or investment
462	counsel. The independent consultant shall make recommendations
463	to the Board at its next regularly scheduled meeting.
464	f.  Notwithstanding anything else in this subsection and as
465	provided in section 215.473, Florida Statutes, the Board must
466	identify and publicly report any direct or indirect holdings it
467	may have in any scrutinized company, as defined in that section.
468	Beginning January 1, 2010, the Board must proceed to sell,
469	redeem, divest, or withdraw all publicly traded securities it
470	may have directly in such company. The divesture of any such
471	security must be completed by September 30, 2010. The Board and
472	its named officers or investment advisors may not be deemed to
473	have breached their fiduciary duty in any action taken to
474	dispose of any such security, and the Board shall have
475	satisfactorily discharged the fiduciary duties of loyalty,
476	prudence, and sole and exclusive benefit to the participants of
477	the Fund and their beneficiaries if the actions it takes are
478	consistent with the duties imposed by section 215.473, Florida
479	Statutes, as provided for in section 175.071(8), Florida
480	Statutes, and the manner of the disposition, if any, is
481	reasonable as to the means chosen. For purposes of determining
482	which companies are scrutinized companies, the Board may utilize
483	the list of scrutinized companies as developed by the Florida
484	State Board of Administration. No person may bring any civil,
485	criminal, or administrative action against the Board or any
486	employee, officer, director, or advisor of the Fund based upon
487	the divesture of any security pursuant to this subsection.
488	(c)  Maximum of cash not invested.-No more than 10 percent
489	of the assets of the Fund shall be held in cash or in
490	noninterest-bearing deposits.
491	(d)  Administrative expenses.-The administrative expenses
492	of the Fund shall be paid by the Fund.
493	(e)  Restrictions on the use of assets of Fund.-The assets
494	of the Fund shall be used only for the payment of benefits and
495	other disbursements authorized by this act and shall be used for
496	no other purpose.
497	(5)  Service pension.-
498	(a)  Normal retirement.-
499	1.  Any member who is actively employed on and after
500	October 1, 2003, excluding members in the DROP, who has attained
501	age 50 years and who has acquired 15 or more years of service
502	credit; who has attained age 55 years and who has acquired 10 or
503	more years of service credit; or who has acquired 26 years of
504	service credit without regard to age shall, upon application
505	filed with the Board, be retired and shall be entitled to a
506	monthly pension for the remainder of his or her life equal to
507	the greater of the following:
508	a.  4 Four percent of final average salary times credited
509	service subject to a maximum of 92 percent of final average
510	salary. However, in all cases, members shall be entitled to at
511	least 2 percent per year of credited service.; or
512	b.  The sum of the following:
513	(I)  Two and one-half percent of final average salary
514	multiplied by the number of years, and fraction of a year, of
515	service credit to a maximum of 26 years of service, and 2
516	percent of his or her final average salary multiplied by the
517	number of years, and fraction of a year, in excess of 26 years
518	of service, for all years of service earned through September
519	30, 1988; and
520	(II)  Two percent of final average salary multiplied by the
521	number of years, and fraction of a year, of service credit
522	earned on and after October 1, 1988.
523	2.  Any member who is actively employed by the Department
524	on and after October 1, 2003, and who is a member of the DROP on
525	or after that date, may elect one of the following transition
526	benefits by making a written election within 45 days after the
527	effective date of this special act on a form provided by the
528	Board of Trustees. The right to elect the transition benefits
529	contained in sub-subparagraph b. shall terminate if no written
530	election is made within 45 days after the effective date of this
531	act. In the event a member does not submit a timely written
532	election, the member shall be deemed to have elected the
533	transition benefits contained in sub-subparagraph a. below:
534	a.  Retain member's original monthly retirement benefit,
535	DROP account balance, and share account balance. DROP members
536	who select this transition benefit may continue to participate
537	in the DROP until the end of the original DROP term. Additional
538	allocations to the share account shall be made in accordance
539	with the provisions of paragraph (j).
540	b.  Convert the member's original monthly benefit and DROP
541	balance to a new monthly benefit and BackDROP. In order to be
542	entitled to this benefit, the member must cease membership in
543	the DROP program. The new converted benefits will not be paid
544	until the member has terminated employment. The conversion of
545	the member's benefits shall be based on the following:
546	(I)  Original monthly benefit conversion: A DROP member is
547	entitled to a conversion of the original monthly benefit in an
548	amount equal to 4 percent for each year of credited service
549	excluding the BackDROP period with a 2-year final average
550	salary. The 2-year final average salary shall be determined
551	based on a 24-month period with the highest average prior to the
552	number of full years of BackDROP (selected by the member in
553	accordance with sub-sub-subparagraph II). No final average
554	salary shall be included in a monthly benefit calculation for
555	which a member has received a BackDROP payment.
556	(II)  BackDROP conversion: The DROP member is entitled to a
557	lump sum payment equal to the new monthly benefit annualized
558	times a period of whole years as selected by the member up to a
559	maximum of 5. The BackDROP benefit will be paid interest at the
560	rate of 8.25 percent less expenses, compounded annually.
561	2.  The 4-percent benefit accrual factor in subparagraph 1.
562	sub-subparagraph 1.a. is contingent on and subject to the
563	adoption and maintenance of the assumptions set forth in
564	subsection (22). If such assumptions are modified by
565	legislative, judicial, or administrative agency action, and the
566	modification results in increased City contributions to the
567	Pension Fund, the 4-percent accrual factor in subparagraph 1.
568	sub-subparagraph 1.a. shall be automatically decreased
569	prospectively, from the date of the action, to completely offset
570	the increase in City contributions. However, in no event shall
571	the benefit accrual factor in subparagraph 1. sub-subparagraph
572	1.a. be adjusted below 3.5 percent. To the extent that the
573	benefit accrual factor is less than 4 percent, the supplemental
574	pension distribution calculation under paragraph (d) shall be
575	adjusted for employees who retire on or after October 1, 1998,
576	and those employees who were members of the DROP on October 1,
577	1998. The adjustment shall be to decrease the minimum return of
578	8.25 percent needed to afford the supplemental pension
579	distribution, when the amount of the reduction is zero if an
580	employee has been credited with 16 or more years with the 3-
581	percent benefit accrual factor or 1.25 percent if an employee
582	has been credited with no more than a 2.5-percent benefit
583	accrual factor. If an employee has been credited with less than
584	16 years at the 3-percent benefit accrual factor, then the
585	accumulated amount over 2.5 percent for each year of service
586	divided by .5 percent divided by 16 subtracted from 1 multiplied
587	by 1.25 percent is the reduction from 8.25 percent. An example
588	of the calculation of the minimum return for supplemental
589	pension distribution as described above is set forth in Appendix
590	B to the collective bargaining agreement between the City of
591	West Palm Beach and the West Palm Beach Association of
592	Firefighters, Local 727-IAFF, October 1, 2003-September 30,
593	2006.
594	(b)  Vested deferred retirement.-A member who leaves the
595	employ of the Department with 10 or more years of credited
596	service who is not eligible for any other retirement benefit
597	under this act shall be entitled to the applicable pension
598	provided for in paragraph (a) or paragraph (c). Payment of this
599	pension shall begin the first day of the calendar month
600	following the month in which the member's application is filed
601	with and accepted by the Board on or after attainment of age 50
602	years. If applicable, the amount of the pension shall be
603	determined in accordance with paragraph (c).
604	(c)  Early retirement.-Any member may retire from the
605	service of the Department as of the first day of any calendar
606	month which is prior to the member's normal retirement date but
607	subsequent to the date as of which the member has both attained
608	the age of 50 and has been a member of this Fund for 10
609	continuous years. In the event of early retirement, the monthly
610	amount of retirement income shall be computed as described in
611	paragraph (a), taking into account his or her credited service
612	to the date of actual retirement and his or her final average
613	salary as of such date. The amount of retirement income shall be
614	actuarially reduced to take into account the member's younger
615	age and earlier commencement of retirement income benefits. The
616	early retirement reduction shall be 3 percent for each year by
617	which the member's age at retirement preceded the member's
618	normal retirement age.
619	(d)  Supplemental pension distribution.-
620	1.a.  The actuary for the Pension Fund shall determine the
621	rate of investment return earned on Pension Fund assets during
622	the 12-month period ending each September 30. The rate
623	determined shall be the rate reported in the most recent
624	actuarial report submitted pursuant to part VII of chapter 112,
625	Florida Statutes.
626	b.  The actuary for the Pension Fund shall determine the
627	actuarial present value, as of September 30, of future pension
628	payments to eligible persons, as described in subparagraph 3.,
629	who are then being paid a pension. The actuarial present values
630	shall be calculated using an interest rate of 7 percent per year
631	compounded yearly and a mortality table as approved by the Board
632	of Trustees and as used in the most recent actuarial report
633	submitted pursuant to part VII of chapter 112, Florida Statutes.
634	c.  A distribution amount shall be determined as of each
635	September 30. For distributions made after October 1, 1998,
636	there shall be two different calculations to determine the
637	distribution amount. For those employees who retire on or after
638	October 1, 1998, or who are part of the DROP on or after October
639	1, 1998, the distribution amount shall be equal to factor (i)
640	for each applicable member multiplied by the sum of factor (ii)
641	and the positive difference, if any, between factor (iii) and
642	8.25 percent. For those employees who have retired before
643	October 1, 1998, except as provided in this sub-subparagraph,
644	the distribution amount shall be equal to factor (i) for each
645	applicable member multiplied by the sum of factor (ii) and the
646	positive difference, if any, between factor (iii) and 7 percent.
647	For purposes of both calculations, factor (i) is the actuarial
648	present value determined in sub-subparagraph 1.b. for the
649	respective group. Factor (ii) is one-half of the investment
650	return rate in sub-subparagraph 1.a. in excess of 9 percent.
651	Factor (iii) is the rate of investment return in sub-
652	subparagraph 1.a., not to exceed 9 percent. The distribution
653	amount shall not exceed accumulated net actuarial experience
654	from all pension liabilities and assets. If the net actuarial
655	experience is favorable, cumulatively, commencing with the
656	experience for the year ended September 30, 1985, after offset
657	for all prior supplemental distributions, the supplemental
658	distribution may be made. If the net actuarial experience is
659	unfavorable, cumulatively, commencing with the experience for
660	the year ended September 30, 1985, after offset for all prior
661	supplemental distributions, no supplemental distribution may be
662	made, and the City must amortize the loss until it is offset by
663	cumulative favorable experience.
664
665	If an actuarial report submitted as provided in this paragraph
666	is not state accepted prior to distribution, and if a deficiency
667	to the Pension Fund results, the deficiency shall be made up
668	from the next available supplemental pension distribution,
669	unless sooner made up by agreement between the Board of Trustees
670	and the City. No such deficiency shall be permitted to continue
671	for a period of greater than 3 years from the date of payment of
672	the supplemental pension distribution which resulted in the
673	deficiency.
674	2.  The Board of Trustees shall determine annually if there
675	is to be a supplemental pension distribution. The supplemental
676	pension distribution is that portion of the distribution amount,
677	as defined in sub-subparagraph 1.c., to be distributed to
678	eligible persons.
679	3.  Eligible persons are:
680	a.  Pensioners.
681	b.  Surviving spouses.
682	c.  Surviving dependent children.
683	d.  Surviving dependent parents.
684	e.  Pensioners' estates for the year following death only.
685
686	Eligible persons are initially eligible if they have been in
687	receipt of a pension for at least 1 year on the first
688	distribution date following their retirement. A survivor
689	beneficiary of a deceased retired member shall be considered to
690	have been in receipt of a pension for at least 1 year if at
691	least 12 monthly pension payments have been made on account of
692	the retirement. A surviving spouse may count the retirement
693	period, if any, of the deceased member toward the 1-year
694	requirement. Surviving spouses, children, and parents and
695	retired members who receive pension adjustments under the prior
696	escalator clause are not eligible for the supplemental pension
697	distribution.
698	4.  The supplemental pension distribution dates shall be
699	the April 1 following the effective date of this subsection and
700	each April 1 thereafter. Each eligible person shall be paid his
701	or her allocated portion of the applicable supplemental pension
702	distribution amount from the preceding September 30. A
703	pensioner's estate is entitled to a pro rata share of the
704	deceased retiree's supplemental pension distribution based on
705	the number of months that the deceased retiree received a
706	pension during the year ending the September 30 prior to the
707	pensioner's death after initial eligibility.
708	5.  Each supplemental pension distribution amount shall be
709	allocated among the eligible persons in the proportion that an
710	eligible person's supplemental pension distribution points bears
711	to the aggregate amount of supplemental pension distribution
712	points of all eligible persons. An eligible person shall be
713	credited with supplemental pension distribution points as
714	follows:
715	a.  Three and eighty-five hundredths of a point multiplied
716	by the service credit of the member at the time of retirement or
717	prior to death; however, in the computation of the supplemental
718	pension distribution due the in-line-of-duty pensioner, the
719	maximum service credit of 26 years shall be used.
720	b.  Maximum service credit shall be 26 years.
721	c.  Allocations for surviving spouses and surviving
722	dependent children who are eligible to receive supplemental
723	pension distributions shall be 75 percent of the years of
724	service earned by the pensioner. Allocations for duty death
725	beneficiaries (surviving spouse and surviving children) shall be
726	based upon 75 percent of 26 years of service.
727	(e)  Payment of benefits.-
728	1.  First payment.-Service pensions shall be payable on the
729	first day of each month. The first payment shall be payable on
730	the first day of the month coincident with or next following the
731	date of retirement, or death, provided the member has completed
732	the applicable age and service requirements.
733	2.  Last payment.-The last payment shall be the payment due
734	next preceding the member's death, except that payments shall be
735	continued to the designated beneficiary or beneficiaries if a
736	10-year certain benefit, a joint and survivor option, or
737	beneficiary benefits, as applicable, are payable.
738	(f)  Normal form of retirement income.-
739	1.  Married member.-The normal form of retirement benefit
740	for a married member or for a member with a dependent child or
741	children or parent or parents shall be a service pension and
742	beneficiary benefits. The service benefit shall provide monthly
743	payments for the life of the member. Thereafter, beneficiary
744	benefits shall be paid as provided in subsection (7).
745	2.  Unmarried member.-The normal form of retirement benefit
746	for an unmarried member without a dependent child or children or
747	parent or parents shall be a 10-year certain benefit. This
748	benefit shall pay monthly benefits for the member's lifetime. In
749	the event the member dies after his or her retirement but before
750	receiving retirement benefits for a period of 10 years, the same
751	monthly benefit shall be paid to the beneficiary or
752	beneficiaries as designated by the member for the balance of
753	such 10-year period or, if no beneficiary is designated, to
754	heirs at law, or estate of the member, as provided in section
755	175.181, Florida Statutes.
756	(g)  Optional forms of retirement income.-
757	1.a.  In the event of normal, early, or disability
758	retirement, in lieu of the normal form of retirement income
759	payable as specified in paragraph (a), paragraph (b), paragraph
760	(c), or subsection (6) and in lieu of the beneficiary benefits
761	as specified in subsection (7), a member, upon written request
762	to the Board and subject to the approval of the Board, may elect
763	to receive a retirement income of equivalent actuarial value
764	payable in accordance with one of the following options:
765	(I)  Lifetime option.-A retirement income of a larger
766	monthly amount, payable to the member for his or her lifetime
767	only.
768	(II)  Joint and survivor option.-A retirement income of a
769	modified monthly amount, payable to the member during the joint
770	lifetime of the member and a dependent joint pensioner
771	designated by the member, and following the death of either of
772	them, 100 percent, 75 percent, 66-2/3 percent, or 50 percent of
773	such monthly amounts, payable to the survivor for the lifetime
774	of the survivor.
775	b.  The member, upon electing any option of this paragraph,
776	shall designate the joint pensioner or beneficiary or
777	beneficiaries to receive the benefit, if any, payable in the
778	event of his or her death, and will have the power to change
779	such designation from time to time; but any such change shall be
780	deemed a new election and shall be subject to approval by the
781	Board. Such designation shall name a joint pensioner or one or
782	more primary beneficiaries where applicable. If a member has
783	elected an option with a joint pensioner or beneficiary and his
784	or her retirement income benefits have commenced, he or she may
785	thereafter change the designated joint pensioner or beneficiary
786	only twice. Notwithstanding any other provision of this section,
787	a retired member may change his or her designation of joint
788	annuitant or beneficiary up to two times as provided in section
789	175.333, Florida Statutes, without the approval of the Board or
790	the current joint annuitant or beneficiary. The retiree is not
791	required to provide proof of the good health of the joint
792	annuitant or beneficiary being removed, and the joint annuitant
793	or beneficiary being removed need not be living. Any retired
794	member who desires to change his or her joint annuitant or
795	beneficiary shall file with the Board a notarized notice of such
796	change. Upon receipt of a completed change of joint annuitant
797	form or such other notice, the Board shall adjust the member's
798	monthly benefit by the application of actuarial tables and
799	calculations developed to ensure that the benefit paid is the
800	actuarial equivalent of the present value of the member's
801	current benefit and there is no impact to the plan.
802	c.  The consent of a member's joint pensioner or
803	beneficiary to any such change shall not be required. However,
804	the spouse of a married member must consent to any election to
805	waive a joint and survivor benefit by signing the election form
806	before a notary public. The spouse's written consent must
807	acknowledge the effect of such a waiver. Consent of the spouse
808	shall not be required if the spouse cannot be located, or for
809	such other circumstances as may be prescribed by the Secretary
810	of the Treasury of the United States. Any consent by a spouse
811	shall be effective only with respect to such spouse.
812	d.  For any additional changes in beneficiaries, the Board
813	may request such evidence of the good health of the joint
814	pensioner that is being added as it may require; and the amount
815	of the retirement income payable to the member upon the
816	designation of a new joint pensioner shall be actuarially
817	redetermined, taking into account the age and sex of the former
818	joint pensioner, the new joint pensioner, and the member. Each
819	such designation shall be filed with the Board. In the event
820	that no designated beneficiary survives the member, such
821	benefits as are payable in the event of the death of the member
822	subsequent to his or her retirement shall be paid as provided in
823	subparagraph (h)2.
824	2.  Retirement income payments shall be made under the
825	option elected in accordance with the provisions of this
826	paragraph and shall be subject to the following limitations:
827	a.  If a member dies prior to his or her normal retirement
828	date or early retirement date, whichever first occurs,
829	retirement benefits shall be paid in accordance with subsection
830	(7).
831	b.  If the designated beneficiary or beneficiaries or joint
832	pensioner dies before the member's retirement, the option
833	elected shall be canceled automatically and a retirement income
834	of the normal form and amount shall be payable to the member
835	upon the member's retirement as if the election had not been
836	made, unless a new election is made in accordance with the
837	provisions of this paragraph or a new beneficiary is designated
838	by the member prior to retirement.
839	c.  If a member continues in the employ of the Department
840	after meeting the age and service requirements set forth in
841	paragraph (a) or paragraph (c) and dies prior to the member's
842	actual retirement, and while an option made pursuant to this
843	subparagraph is in effect, monthly retirement income payments
844	shall be paid, under the option, to a beneficiary or
845	beneficiaries designated by the member in the amount or amounts
846	computed as if the member has retired under the option on the
847	date on which the member's death occurred.
848	3.  No member may make any change in his or her retirement
849	option after the date of cashing or depositing the first
850	retirement check.
851	(h)  Designation of beneficiary.-
852	1.  Each member may, on a form provided for that purpose,
853	signed and filed with the Board, designate a beneficiary or
854	beneficiaries to receive the benefit, if any, which may be
855	payable in the event of the member's death; and each designation
856	may be revoked by such member by signing and filing with the
857	Board a new designation of beneficiary form. However, after the
858	benefits have commenced, a retirant may change his or her
859	designation of joint annuitant or beneficiary only twice. If the
860	retirant desires to change his or her joint annuitant or
861	beneficiary, the retirant shall file with the Board a notarized
862	notice of such change either by registered letter or on a form
863	as provided by the Board. Upon receipt of a completed change of
864	joint annuitant form or such other notice, the Board shall
865	adjust the member's monthly benefit by the application of
866	actuarial tables and calculations developed to ensure that the
867	benefit paid is the actuarial equivalent of the present value of
868	the member's current benefit.
869	2.  Absence or death of beneficiary.-If a deceased member
870	fails to name a beneficiary in the manner prescribed in
871	subparagraph 1., or if the beneficiary or beneficiaries named by
872	a deceased member predecease the member, the beneficiary
873	benefits, if any, which may be payable with respect to such
874	deceased member may be paid, in the discretion of the Board to:
875	a.  The spouse or dependent child or children of the
876	member;
877	b.  The dependent living parent or parents of the member;
878	or
879	c.  The estate of the member.
880	(i)  Refund of contributions.-In the event a member leaves
881	the employ of the Department or dies with less than 10 years of
882	credited service, and no service pension, disability pension, or
883	beneficiary benefit is payable, the contributions made by him or
884	her to the Fund shall be refunded, without interest (less any
885	disability payments paid to the member), to the member or, in
886	the event of death, to the beneficiary or to the member's
887	estate.
888	(j)  Chapter 175, Florida Statutes, share accounts.-
889	1.  Individual member accounts.-A separate account shall be
890	established and maintained in each member's name effective on or
891	after October 1, 1988.
892	2.  Share account funding.-
893	a.  Each individual member account shall be credited with a
894	pro rata share of all of the moneys received from chapter 175,
895	Florida Statutes, tax revenues in June 1988 and thereafter.
896	b.  In addition, any forfeitures as provided in
897	subparagraph 5. shall be credited to the individual member
898	accounts in accordance with the formula set forth in
899	subparagraph 3.
900	3.  Annual allocation of accounts.-
901	a.  Moneys shall be credited to each individual member
902	account in an amount directly proportionate to the number of pay
903	periods for which the member was paid compared to the total
904	number of pay periods for which all members were paid, counting
905	the pay periods in the calendar year preceding the date for
906	which chapter 175, Florida Statutes, tax revenues were received.
907	For the fiscal year beginning October 1, 2003, and ending
908	September 30, 2004, share account allocations shall only be made
909	to DROP members who elect not to convert in accordance with sub-
910	subparagraph (5)(a)2.b. For purposes of determining the pro rata
911	share for those share account allocations during the fiscal year
912	beginning October 1, 2003, and ending September 30, 2004, the
913	pay periods of all active firefighters, including DROP members,
914	shall be used. Share account allocations made on and after
915	October 1, 2004, shall be made to each individual share account.
916	b.  At the end of each fiscal quarter year (September 30),
917	each individual account shall be adjusted to reflect the
918	earnings or losses resulting from investment, as well as
919	reflecting costs, fees, and expenses of administration.
920	c.  Effective October 1, 2002, Vested participants have the
921	option to select one of three methods to credit investment
922	earnings to their account.  The method may be changed each year
923	effective October 1; however, the method must be elected prior
924	to October 1.  The methods are:
925	(I)  The investment earnings or losses credited to the
926	individual member accounts shall be in the same percentage as
927	are earned or lost by the total investment earnings or losses of
928	the Fund as a whole, unless the Board dedicates a separate
929	investment portfolio for chapter 175, Florida Statutes, share
930	accounts, in which case the investment earnings or losses shall
931	be measured by the investment earnings or losses of the separate
932	investment portfolio;
933	(II)  A fixed annual rate of 8.25 percent; or
934	(III)  A percentage of the share account assets to be
935	credited with earnings or losses in accordance with sub-sub-
936	subparagraph (I) and a corresponding percentage of the share
937	account assets credited in accordance with sub-sub-subparagraph
938	(II). The combined total percentage invested under this sub-sub-
939	subparagraph must equal 100 percent.
940	d.  Costs, fees, and expenses of administration shall be
941	debited from the individual member accounts on a proportionate
942	basis, taking the cost, fees, and expenses of administration of
943	the Fund as a whole, multiplied by a fraction, the numerator of
944	which is the total assets in all individual member accounts and
945	the denominator of which is the total assets of the Fund as a
946	whole. The proportionate share of the costs, fees, and expenses
947	shall be debited from each individual member account on a pro
948	rata basis in the same manner as chapter 175, Florida Statutes,
949	tax revenues are credited to each individual member account
950	(i.e., based on pay periods).
951	e.  If the entire balance of the individual member account
952	is withdrawn before September 30 of any year, there shall be no
953	adjustment made to that individual member account to reflect
954	either investment earnings or losses or costs, fees, and
955	expenses of administration.
956	4.  Eligibility for benefits.-Any member who terminates
957	employment with the City, upon the member's filing an
958	application with the Board, shall be entitled to 100 percent of
959	the value of his or her individual member account, provided the
960	member meets any of the following criteria:
961	a.  The member is eligible to receive a service pension as
962	provided in this subsection;
963	b.  The member has 5 or more years of credited service and
964	is eligible to receive either:
965	(I)  A nonduty disability pension as provided in paragraph
966	(6)(a); or
967	(II)  Beneficiary benefits for nonduty death as provided in
968	paragraph (7)(a); or
969	c.  The member has any credited service and is eligible to
970	receive either:
971	(I)  A duty disability pension as provided in paragraph
972	(6)(c); or
973	(II)  Beneficiary benefits for death in the line of duty as
974	provided in paragraph (7)(b).
975	5.  Forfeitures.-Any member who has less than 10 years of
976	credited service and who is not eligible for payment of benefits
977	after termination of employment with the City shall forfeit his
978	or her individual member account. The amounts credited to said
979	individual member account shall be redistributed to the other
980	individual member accounts in the same manner as chapter 175,
981	Florida Statutes, tax revenues are credited (i.e., based on pay
982	periods). However, the assets shall first be used to ensure that
983	the former member's refund of contributions has not actuarially
984	adversely impacted the payment for the extra benefits. If there
985	has been an adverse impact, the shortfall shall be made up first
986	before the amounts are reallocated to active members.
987	6.  Payment of benefits.-The normal form of benefit payment
988	shall be a lump sum payment of the entire balance of the
989	individual member account; or, upon the written election of the
990	member, upon a form prescribed by the Board, payment may be made
991	either by:
992	a.  Installments.-The account balance shall be paid out to
993	the member in three equal payments paid over 3 years, the first
994	payment to be made upon approval of the Board; or
995	b.  Annuity.-The account balance shall be paid out in
996	monthly installments over the lifetime of the member or until
997	the entire balance is exhausted. The monthly amount paid shall
998	be determined by the Fund's actuary in accordance with
999	selections made by the member in a form provided by the Board.
1000	7.  Death of a member.-If a member dies and is eligible for
1001	benefits from the individual member account, the entire balance
1002	of the individual member account shall be paid in a lump sum to
1003	the beneficiaries designated in accordance with paragraph (h).
1004	If a member fails to designate a beneficiary or, if the
1005	beneficiary predeceases the member, the entire balance shall be
1006	paid in a lump sum in the following order:
1007	a.  To the spouse;
1008	b.  If there is no spouse or the spouse is not alive, to
1009	the member's surviving child or children on a pro rata basis;
1010	c.  If there are no children or no child is alive, to the
1011	member's parent or parents; or
1012	d.  If no parent is alive, to the estate of the member.
1013	(k)  Deferred Retirement Option Plan (DROP).-Effective upon
1014	the ratification of the collective bargaining agreement between
1015	the City of West Palm Beach and the West Palm Beach Association
1016	of Firefighters, Local 727-IAFF, October 1, 2003-September 30,
1017	2006, no new members may enter into the DROP. Existing DROP
1018	members on the ratification date shall have the option to remain
1019	in the DROP for the remainder of their individual 5-year terms
1020	in accordance with the provisions of subparagraph (5)(a)2.
1021	1.  Eligibility to participate in the DROP.-
1022	a.  Any member who is eligible to receive an early or
1023	normal retirement pension may participate in the DROP. Members
1024	shall elect to participate by applying to the Board of Trustees
1025	on a form provided for that purpose.
1026	b.  Election to participate shall be forfeited if not
1027	exercised within the first 35 years of combined credited
1028	service.
1029	c.  A member shall not participate in the DROP beyond the
1030	time of attaining 37 years of service and the total years of
1031	participation in the DROP shall not exceed 5 years. For example:
1032	(I)  Members with 32 years of credited service at the time
1033	of entry shall participate for only 5 years.
1034	(II)  Members with 33 years of credited service at the time
1035	of entry shall participate for only 4 years.
1036	(III)  Members with 34 years of credited service at the
1037	time of entry shall participate for only 3 years.
1038	(IV)  Members with 35 years of credited service at the time
1039	of entry shall participate for only 2 years.
1040	d.  Upon a member's election to participate in the DROP, he
1041	or she shall cease to be a member and shall no longer accrue any
1042	benefits under the Pension Fund, except for the benefits
1043	provided under paragraph (j) of this subsection, chapter 175,
1044	Florida Statutes, share accounts. For all Fund purposes, the
1045	member becomes a retirant, except that a DROP participant shall
1046	continue to receive shares of the chapter 175, Florida Statutes,
1047	money in accordance with paragraph (j), chapter 175, Florida
1048	Statutes, share accounts. The amount of credited service and
1049	final average salary shall freeze as of the date of entry into
1050	the DROP.
1051	2.  Amounts payable upon election to participate in the
1052	DROP.-
1053	a.  Monthly retirement benefits that would have been
1054	payable had the member terminated employment with the Department
1055	and elected to receive monthly pension payments shall be paid
1056	into the DROP and credited to the retirant. Payments into the
1057	DROP shall be made monthly over the period the retirant
1058	participates in the DROP, up to a maximum of 60 months.
1059	b.  Effective October 1, 2002, Participants have the option
1060	to select one of three methods to credit investment earnings to
1061	their account. Investment earnings shall be credited on a
1062	quarterly basis. The method may be changed each year effective
1063	October 1; however, the method must be elected prior to October
1064	1. The methods are:
1065	(I)  Earnings using the rate of investment return earned on
1066	Pension Fund assets as reported by the Fund's investment
1067	monitor. DROP assets are commingled with the Pension Fund assets
1068	for investment purposes;
1069	(II)  A fixed rate of 8.25 percent; or
1070	(III)  A percentage of the DROP account assets to be
1071	credited with earnings or losses in accordance with sub-sub-
1072	subparagraph (I) and a corresponding percentage of the DROP
1073	account assets credited in accordance with sub-sub-subparagraph
1074	(II). The combined total percentage invested under this sub-sub-
1075	subparagraph must equal 100 percent.
1076
1077	However, if a member does not terminate employment at the end of
1078	participation in the DROP, interest credit shall cease on the
1079	balance.
1080	c.  No payments shall be made from the DROP until the
1081	member terminates employment with the Department.
1082	d.  Upon termination of employment, participants in the
1083	DROP shall receive the balance of the DROP account in accordance
1084	with the following rules:
1085	(I)  Members may elect to begin to receive payment upon
1086	termination of employment or defer payment of the DROP until the
1087	latest day under sub-sub-subparagraph (III).
1088	(II)  Payments shall be made in either:
1089	(A)  Lump sum.-The entire account balance shall be paid to
1090	the retirant upon approval of the Board of Trustees.
1091	(B)  Installments.-The account balance shall be paid out to
1092	the retirant in three equal payments paid over 3 years, the
1093	first payment to be made upon approval of the Board of Trustees.
1094	(C)  Annuity.-The account balance shall be paid out in
1095	monthly installments over the lifetime of the member or until
1096	the entire balance is exhausted.  Monthly amount paid will be
1097	determined by the Fund's actuary in accordance with selections
1098	made by the member in a form provided by the Board of Trustees.
1099	(III)  Any form of payment selected by a member must comply
1100	with the minimum distribution requirements of the IRC 401(A)(9),
1101	and are subject to the requirements of subsection (18).
1102	(IV)  The beneficiary of the DROP participant who dies
1103	before payments from DROP begin shall have the same right as the
1104	participant in accordance with subsection (7).
1105	e.  Costs, fees, and expenses of administration shall be
1106	debited from the individual member accounts on a proportionate
1107	basis, taking the cost, fees, and expenses of administration of
1108	the Fund as a whole, multiplied by a fraction, the numerator of
1109	which is the total assets in all individual member accounts and
1110	the denominator of which is the total assets of the Fund as a
1111	whole.
1112	3.  Loans from the DROP.-
1113	a.  Availability of loans.-
1114	(I)  Loans are available to members only after termination
1115	of employment, provided the member had participated in the DROP
1116	for a period of 12 months.
1117	(II)  Loans may only be made from a member's own account.
1118	(III)  There may be no more than one loan at a time.
1119	b.  Amount of loan.-
1120	(I)  Loans may be made up to a maximum of 50 percent of
1121	account balance.
1122	(II)  The maximum dollar amount of a loan is $50,000,
1123	reduced by the highest outstanding loan balance during the last
1124	12 months.
1125	(III)  The minimum amount of a loan is $5,000.
1126	c.  Limitation on loans.-Loans shall be made from the
1127	amounts paid into the DROP and earnings thereon.
1128	d.  Term of loan.-
1129	(I)  A loan must be for at least 1 year.
1130	(II)  A loan shall be for no longer than 5 years.
1131	e.  Loan interest rate.-
1132	(I)  The interest rate shall be fixed at the time the loan
1133	is originated for the entire term of the loan.
1134	(II)  The interest rate shall be equal to the lowest prime
1135	rate published by the Wall Street Journal on the last day of
1136	each calendar quarter preceding the date of the loan
1137	application.
1138	f.  Defaults of loans.-
1139	(I)  A loan shall be in default if 2 consecutive months of
1140	repayments are missed or if a total of 4 months of repayments is
1141	missed.
1142	(II)  Upon default, the entire balance of the loan becomes
1143	due and payable immediately.
1144	(III)  If a loan in default is not repaid in full
1145	immediately, the loan may be canceled and the outstanding
1146	balance treated as a distribution, which may be taxable.
1147	(IV)  Upon default of a loan, a member shall not be
1148	eligible for additional loans.
1149	g.  Miscellaneous provisions.-
1150	(I)  All loans must be evidenced by a written loan
1151	agreement signed by the member and the Board of Trustees. The
1152	agreement shall contain a promissory note.
1153	(II)  A member's spouse must consent in writing to the
1154	loan. The consent shall acknowledge the effect of the loan on
1155	the member's account balance.
1156	(III)  Loans shall be considered general assets of the
1157	Fund.
1158	(IV)  Loans shall be subject to administrative fees to be
1159	set by the Board of Trustees.
1160	4.  After-tax contributions to the DROP.-
1161	a.  A member may make after-tax contributions to the DROP.
1162	The maximum amount that may be contributed is the lesser of:
1163	(I)  The IRS 415(c) limit.
1164	(II)  The amount allowable under IRC 401(m).
1165	b.  After-tax contributions to the DROP shall earn interest
1166	in the same manner as set forth in sub-subparagraph 2.b.
1167	c.  Distributions to members or their beneficiaries of
1168	after-tax contributions may be withdrawn at any time on or after
1169	termination of employment. However, payments must be made at
1170	least as promptly as required under subsection (18).
1171	d.  Loans shall not be made against after-tax
1172	contributions.
1173	(l)  Backwards Deferred Retirement Option Plan (BackDROP).-
1174	1.  Eligibility to participate in the BackDROP.-
1175	a.  Any member who has attained age 53 with 18 or more
1176	years of service, who has attained age 58 with 13 or more years
1177	of service, or who has acquired 26 years of service regardless
1178	of age may participate in the BackDROP. Members shall elect to
1179	participate by applying to the Board of Trustees on a form
1180	provided for that purpose. A member may not participate in both
1181	the DROP and the BackDROP.
1182	b.  Election to participate shall be forfeited if not
1183	exercised within the first 28 years of credited service.
1184	However, a member who is actively employed by the Department on
1185	October 1, 2003, may elect to participate in the BackDROP beyond
1186	the 28th year as follows: the member may elect to participate in
1187	the benefit for 3 full years in the 29th year of employment, for
1188	1 full year in the 30th year of employment, and after the 30th
1189	year of employment all elections to participate in the BackDROP
1190	end.
1191	c.  A member shall not be eligible to receive a BackDROP
1192	benefit that is greater than an accumulation of 60 months of the
1193	monthly retirement benefit. A member shall not be eligible to
1194	receive a benefit which is less than an accumulation of 36
1195	months of the monthly retirement benefit, except for the
1196	reduction of benefits as defined in sub-subparagraph b.
1197	d.  Member contributions shall continue throughout the
1198	period of employment and are not refundable for the BackDROP
1199	period.
1200	e.  Members who elect to participate in the BackDROP must
1201	retire and terminate employment to be eligible for payment of
1202	the benefit.
1203	f.  Any member who terminates employment by any means,
1204	including death, prior to attaining age 53 with 18 or more years
1205	of service or age 58 with 13 or more years of service or by
1206	acquiring 26 years of service is not eligible to participate in
1207	the BackDROP.
1208	2.  Benefits payable upon election to participate in the
1209	BackDROP.-
1210	a.  Upon election to receive the BackDROP benefit, a
1211	member's retirement benefits will be calculated as if the member
1212	had chosen to retire and terminate employment at a date which is
1213	more than 36 months but less than 60 months earlier. The number
1214	of months to be applied is based upon the member's election. The
1215	monthly pension amount shall be multiplied by the number of
1216	months of BackDROP selected by the member, which shall be
1217	between 36 and 60 months, inclusive. The BackDROP benefit shall
1218	be calculated as a single sum, including interest at the rate of
1219	8.25 percent less expenses, compounded annually for the period
1220	of BackDROP.
1221	b.  No payments shall be made from the BackDROP until the
1222	member terminates employment with the Department.
1223	c.  Upon termination of employment, participants in the
1224	BackDROP shall receive the balance of the BackDROP account in
1225	accordance with the following rules:
1226	(I)  Members may elect to receive payment upon termination
1227	of employment or defer payment of the BackDROP until the latest
1228	day under sub-sub-subparagraph (III).
1229	(II)  Payments shall be made in either:
1230	(A)  A lump sum.-The entire account balance shall be paid
1231	to the retirant upon approval of the Board of Trustees.
1232	(B)  Installments.-The account balance shall be paid out to
1233	the retirant in three equal payments paid over 3 years, the
1234	first payment to be made upon approval of the Board of Trustees.
1235	(C)  Annuity.-The account balance shall be paid out in
1236	monthly installments over the lifetime of the member or until
1237	the entire balance is exhausted. The monthly amount paid shall
1238	be determined by the Fund's actuary in accordance with
1239	selections made by the member in a form provided by the Board of
1240	Trustees.
1241	(III)  Any form of payment selected by a member must comply
1242	with the minimum distribution requirements of the IRC 401(A)(9),
1243	and are subject to the requirements of subsection (18).
1244	(IV)  The beneficiary of the BackDROP member shall have the
1245	same right as the participant in accordance with subsection (7).
1246	3.  BackDROP earnings.-
1247	a.  BackDROP members may select one of three methods to
1248	credit investment earnings to their accounts. Investment
1249	earnings shall be credited on a quarterly basis. The method may
1250	be changed each year effective October 1; however, the method
1251	must be elected prior to October 1. The methods are:
1252	(I)  The BackDROP is credited with earnings and losses
1253	using the rate of investment return earned on Pension Fund
1254	assets as reported by the Fund's investment monitor. BackDROP
1255	assets are commingled with the Pension Fund assets for
1256	investment purposes;
1257	(II)  A fixed rate of 8.25 percent; or
1258	(III)  A percentage of the BackDROP account assets to be
1259	credited with earnings or losses in accordance with sub-sub-
1260	subparagraph (I) and a corresponding percentage of the BackDROP
1261	account assets credited in accordance with sub-sub-subparagraph
1262	(II). The combined total percentage invested under this sub-sub-
1263	subparagraph must equal 100 percent.
1264	b.  Costs, fees, and expenses of administration shall be
1265	debited from the individual member BackDROP accounts on a
1266	proportionate basis, taking the cost, fees, and expenses of
1267	administration of the Fund as a whole, multiplied by a fraction,
1268	the numerator of which is the total of assets in all individual
1269	member accounts and the denominator of which is the total of
1270	assets of the Fund as a whole.
1271	4.  Loans from the BackDROP.-
1272	a.  Availability of loans.-
1273	(I)  Loans are available to members only after termination
1274	of employment, provided the member had participated in the
1275	BackDROP for a period of at least 12 months.
1276	(II)  Loans may only be made from a member's own account.
1277	(III)  There may be no more than one loan at a time.
1278	b.  Amount of loan.-
1279	(I)   Loans may be made up to a maximum of 50 percent of
1280	account balance.
1281	(II)  The maximum dollar amount of a loan is $50,000,
1282	reduced by the highest outstanding loan balance during the last
1283	12 months.
1284	(III)  The minimum amount of a loan is $5,000.
1285	c.  Limitation on loans.-Loans shall be made from the
1286	amounts paid into the BackDROP and earnings thereon.
1287	d.  Term of loan.-
1288	(I)  A loan must be for at least 1 year.
1289	(II)  A loan shall be for no longer than 5 years.
1290	e.  Loan interest rate.-
1291	(I)  The interest rate shall be fixed at the time a loan is
1292	originated for the entire term of the loan.
1293	(II)  The interest rate shall be equal to the lowest prime
1294	rate published by the Wall Street Journal on the last day of
1295	each calendar quarter preceding the date of the loan
1296	application.
1297	f.  Defaults of loans.-
1298	(I)  A loan shall be in default if 2 consecutive months of
1299	repayments are missed or if a total of 4 months of repayments is
1300	missed.
1301	(II)  Upon default of a loan, the entire balance of the
1302	loan becomes due and payable immediately.
1303	(III)  If a loan in default is not repaid in full
1304	immediately, the loan may be canceled and the outstanding
1305	balance treated as a distribution, which may be taxable.
1306	(IV)  Upon default of a loan, a member shall not be
1307	eligible for additional loans.
1308	g.  Miscellaneous provisions.-
1309	(I)  All loans must be evidenced by a written loan
1310	agreement signed by the member and the Board of Trustees. The
1311	agreement shall contain a promissory note.
1312	(II)  A member's spouse must consent in writing to the
1313	loan. The consent shall acknowledge the effect of the loan on
1314	the member's account balance.
1315	(III)  Loans shall be considered general assets of the
1316	Fund.
1317	(IV)  Loans shall be subject to administrative fees to be
1318	set by the Board of Trustees.
1319	5.  After-tax contributions to the BackDROP.-
1320	a.  A member may make after-tax contributions to the
1321	BackDROP. The maximum amount that may be contributed is the
1322	lesser of:
1323	(I)  The IRS 415(c) limit.
1324	(II)  The amount allowable under IRC 401(m).
1325	b.  After-tax contributions to the BackDROP shall earn
1326	interest in the same manner as set forth in sub-subparagraph
1327	3.a.
1328	c.  Distributions to members or their beneficiaries of
1329	after-tax contributions may be withdrawn at any time on or after
1330	termination of employment. However, payments must be made at
1331	least as promptly as required under subsection (18).
1332	d.  Loans shall not be made against after-tax
1333	contributions.
1334	(6)  Disability pensions, medical examinations, return to
1335	work, etc.-
1336	(a)  Nonduty disability requirements.-Any member with 5 or
1337	more years of service credit who is regularly employed in the
1338	Department who becomes physically or mentally totally and
1339	permanently disabled by illness, disease, or injury to perform
1340	the duties of a firefighter shall, upon the member's application
1341	to the Board, be retired with a pension provided for in this
1342	paragraph, provided that after a medical examination of the
1343	member made by or under the direction of a medical committee,
1344	the medical committee reports to the Board, in writing, whether:
1345	1.  The member is wholly prevented from rendering useful
1346	and efficient service as a firefighter; and
1347	2.  The member is likely to remain so disabled continuously
1348	and permanently.
1349
1350	The Board may admit and consider any other evidence that it
1351	deems appropriate. The final decision as to whether a member
1352	meets the requirements for a nonduty disability pension rests
1353	with the Board and shall be based on competent substantial
1354	evidence on the record as a whole.
1355	(b)  Nonduty disability pension benefits.-Upon retirement
1356	on account of disability as provided in paragraph (a), a member
1357	shall receive a disability pension computed according to
1358	subparagraph (5)(a)1., notwithstanding that he or she might not
1359	have attained age 50 years and might not have 15 or more years
1360	of service credit. Further, if the member has at least 10 years
1361	of service credit, the disability pension shall not be less than
1362	25 percent of the member's average monthly salary at the time of
1363	disability. A disability retiree may select optional forms of
1364	benefits in accordance with paragraph (5)(g).
1365	(c)  Duty disability requirements.-Any member who is
1366	regularly employed in the Department and who becomes physically
1367	or mentally totally and permanently disabled to perform the
1368	duties of a firefighter by reason of an injury or disease
1369	arising out of and in the course of the performance of his or
1370	her duties as a firefighter in the employ of the City, shall,
1371	upon his or her application to the Board, be retired with a
1372	disability pension provided for in this paragraph, provided that
1373	after a medical examination of the member made by or under the
1374	direction of the medical committee, the medical committee
1375	reports to the Board in writing, whether:
1376	1.  The member is wholly prevented from rendering useful
1377	and efficient service as a firefighter; and
1378	2.  The member is likely to remain so disabled continuously
1379	and permanently.
1380
1381	The Board shall admit and consider any other evidence that it
1382	deems appropriate. Any condition or impairment of health of a
1383	member caused by tuberculosis, hypertension, heart disease,
1384	hepatitis, or meningococcal meningitis resulting in total
1385	disability or death shall be presumed to have been accidental
1386	and suffered in the line of duty unless the contrary is shown by
1387	competent evidence, provided such member shall have successfully
1388	passed a physical examination before entering into such service,
1389	which examination failed to reveal any evidence of such
1390	condition. In order to be entitled to the presumption in the
1391	case of hepatitis, meningococcal meningitis, or tuberculosis,
1392	the member must meet the requirements of section 112.181,
1393	Florida Statutes. The final decision as to whether a member
1394	meets the requirements for a disability pension rests with the
1395	Board, based on competent substantial evidence on the record as
1396	a whole.
1397	(d)  Duty disability pension benefits.-Upon retirement on
1398	account of disability, as provided in paragraph (c), a member
1399	shall receive a monthly pension for the remainder of his or her
1400	life, equal to the greater of the following:
1401	1.  Sixty-five percent of the final average salary; or
1402	2.  The sum of the following:
1403	a.  Two and one-half percent of the member's final average
1404	salary multiplied by the number of years, and fraction of a
1405	year, of his or her service credit to a maximum of 26 years of
1406	service, and 2 percent of his or her final average salary
1407	multiplied by the number of years, and fraction of a year, in
1408	excess of 26 years of service, for all years of service earned
1409	through September 30, 1988; and
1410	b.  Two percent of the member's final average salary
1411	multiplied by the number of years, and fraction of a year, of
1412	his or her service credit earned on or after October 1, 1988.
1413	(e)  Medical committee.-The medical committee provided for
1414	in this subsection shall consist of no less than two qualified
1415	health professionals, one of whom shall be designated by the
1416	Board and one by the member. If deemed necessary by the Board, a
1417	third qualified health professional, selected by the two
1418	committee members previously designated, may be named to the
1419	medical committee. The medical committee shall report to the
1420	Board the existence and degree of permanent physical impairment
1421	of the member, if any, based upon the most recent edition of the
1422	American Medical Association's Guide to the Evaluation of
1423	Permanent Impairment, if applicable.
1424	(f)  Exclusions from disability pensions.-No disability
1425	pension shall be payable, either as a duty disability pension or
1426	as a nonduty disability pension, if the disability is a result
1427	of:
1428	1.  Excessive and habitual use by the member of drugs,
1429	intoxicants, or narcotics;
1430	2.  Injury or disease sustained by the member while
1431	willfully and illegally participating in fights, riots, or civil
1432	insurrections or while committing a crime;
1433	3.  Injury or disease sustained by the member while serving
1434	in any armed forces. This exclusion does not affect members who
1435	have become disabled as a result of intervening military service
1436	under the federal Heroes Earnings Assistance and Relief Tax Act
1437	of 2008, Pub. L. No. 110-245;
1438	4.  Injury or disease sustained by the member after his or
1439	her employment has terminated;
1440	5.  Injury or disease sustained by the member while working
1441	for anyone other than the City and arising out of such
1442	employment; or
1443	6.  Injury or disease sustained by the member before coming
1444	to work for the City. This exclusion applies to duty disability
1445	applications only.
1446	(g)  Payment of disability pensions.-Monthly disability
1447	retirement benefits shall be payable as of the date the Board
1448	determines that the member was entitled to a disability pension;
1449	however, the first payment shall actually be paid on the first
1450	day of the first month after the Board determines such
1451	entitlement. Any portion due for a partial month shall be paid
1452	together with the first payment. If the member recovers from the
1453	disability prior to his or her normal retirement date, the last
1454	payment shall be the payment due next preceding the date of such
1455	recovery or, if the member dies without recovering from his or
1456	her disability, then the following shall apply:
1457	1.  Married member.-Beneficiary benefits as set forth in
1458	subsection (7) shall be paid if, at the time of death, the
1459	member was married or had a dependent child or children or
1460	parent or parents; or
1461	2.  Unmarried member with 10 years of service or more.-
1462	Payments shall be made until the member's death or the 120th
1463	monthly payment, whichever is later; or
1464	3.  Unmarried member with less than 10 years of service.-
1465	Payments shall be made until the member's death.
1466
1467	Any monthly retirement income payments due after the death of a
1468	disabled member shall be paid to the member's designated
1469	beneficiary or beneficiaries or the member's estate as provided
1470	in paragraph (5)(h) or subsection (7), as applicable.
1471	(h)  Reexamination of disability retirant.-At least once
1472	each year during the first 5 years following a member's
1473	retirement on account of disability, and at least once in each
1474	3-year period thereafter, the Board shall require any disability
1475	retirant who has not attained age 50 to undergo a medical
1476	examination to be made by or under the direction of a physician
1477	designated by the Board. However, if a disability retirant has
1478	lost the firefighter certification, as required by Florida
1479	Statutes, then the reexamination is discretionary. If the
1480	retirant refuses to submit to the medical examination in any
1481	such period, his or her disability pension may be suspended by
1482	the Board until withdrawal of such refusal. If such refusal
1483	continues for 1 year, all of the retirant's rights in and to a
1484	disability pension may be revoked by the Board. If, upon medical
1485	examination of the retirant, the physician reports to the Board
1486	that the retirant is physically able and capable of performing
1487	the duties of a firefighter in the rank held by him or her at
1488	the time of retirement, the member shall be returned to
1489	employment in the Department at a salary not less than the
1490	salary of the rank last held by him or her, provided that return
1491	to the employ of the Department shall be subject to the approval
1492	of the Fire Chief. Should the retirant become employed by the
1493	City, his or her disability pension shall terminate.
1494	(i)  Return to work of a disability retirant; service
1495	credit.-In the event a disability retirant is returned to
1496	employment in the department, as provided in paragraph (h), his
1497	or her service credit at the time of disability retirement shall
1498	be restored to his or her credit. In the event he or she retired
1499	under the provisions of paragraph (c), he or she shall be given
1500	service credit for the period he or she was in receipt of a
1501	disability pension. If he or she retired under the provisions of
1502	paragraph (a), he or she shall not be given service credit for
1503	the period he or she was in receipt of a disability pension.
1504	(j)  Expenses of medical examinations for disability.-The
1505	member shall be responsible for the expenses of the physician
1506	the member designates for medical examinations required under
1507	this subsection. Expenses for any other medical examinations
1508	required under this subsection shall be paid by the Fund.
1509	(7)  Beneficiary benefits.-
1510	(a)  Death while in service; 5 years or more (nonduty).-In
1511	the event a member with 5 or more years of service credit dies
1512	while in the employ of the Department, and the Board finds his
1513	or her death to have occurred as the result of causes arising
1514	outside the performance of his or her duties as a firefighter in
1515	the employ of the City, the following applicable pensions shall
1516	be paid:
1517	1.  Surviving spouse's benefits.-The surviving spouse shall
1518	receive a pension equal to two-thirds of the pension the member
1519	would otherwise have been entitled to receive under paragraph
1520	(5)(a), as if the member had retired the day preceding the date
1521	of his or her death, notwithstanding that the member might not
1522	have met the age and service requirements for retirement as
1523	specified in subsection (5). Upon the surviving spouse's death,
1524	the pension shall terminate.
1525	2.  Benefits for children, surviving spouse, etc.-In the
1526	event the deceased member does not leave a surviving spouse, or
1527	if the surviving spouse shall die, and the member leaves an
1528	unmarried child or children under age 18, each such child shall
1529	receive a pension of an equal share of the pension to which said
1530	member's surviving spouse was or would have been entitled. Upon
1531	any such child's adoption, marriage, death, or attainment of age
1532	18, the child's pension shall terminate and said child's pension
1533	shall be apportioned to the deceased member's remaining eligible
1534	children under age 18.
1535	3.  Benefits for dependent parents.-In the event a member
1536	dies and does not leave a surviving spouse or children eligible
1537	to receive a pension provided for in subparagraphs 1. and 2.,
1538	and the member leaves a parent or parents whom the Board finds
1539	to have been dependent upon the member for 50 percent or more of
1540	their financial support, each such parent shall receive a
1541	pension of an equal share of the pension to which the member's
1542	surviving spouse would have been entitled. Upon any such
1543	parent's remarriage or death, the parent's pension shall
1544	terminate.
1545	4.  Estate.-In the event a member dies and does not leave a
1546	surviving spouse, children, or parents eligible to receive a
1547	pension provided for in subparagraph 1., subparagraph 2., or
1548	subparagraph 3., then the benefits remaining, if any, shall be
1549	paid to the member's estate.
1550	(b)  Death in the line of duty.-In the event a member dies
1551	while in the employ of the Department, and the Board finds his
1552	or her death to be the natural and proximate result of causes
1553	arising out of and in the actual performance of duty as a
1554	firefighter in the employ of the City, the following applicable
1555	pensions shall be paid:
1556	1.  Surviving spouse's benefits.-The surviving spouse shall
1557	receive a monthly pension equal to the greater of:
1558	a.  Sixty-six and two-thirds of the member's highest 12
1559	months' salary or top step firefighter pay, whichever is
1560	greater; or
1561	b.  The surviving spouse's share of the member's accrued
1562	benefit. Upon the surviving spouse's death, the pension shall
1563	terminate.
1564	2.  Benefits for children, surviving spouse, etc.-In the
1565	event the deceased member does not leave a surviving spouse, or
1566	if the surviving spouse shall die, and the member leaves an
1567	unmarried child or children under age 18, each such child shall
1568	receive a pension of an equal share of the pension to which the
1569	member's surviving spouse was or would have been entitled. Upon
1570	any such child's adoption, marriage, death, or attainment of age
1571	18, the child's pension shall terminate and said child's pension
1572	shall be apportioned to the deceased member's remaining eligible
1573	children under age 18.
1574	3.  Benefits for dependent parents.-In the event a member
1575	dies and does not leave a surviving spouse or children eligible
1576	to receive a pension provided for in subparagraphs 1. and 2.,
1577	and the member leaves a parent or parents whom the Board finds
1578	to have been dependent upon the member for 50 percent or more of
1579	their financial support, each such parent shall receive a
1580	pension of an equal share of the pension to which said member's
1581	surviving spouse would have been entitled. Upon any such
1582	parent's remarriage or death, the parent's pension shall
1583	terminate.
1584	4.  Estate.-In the event a member dies and does not leave a
1585	surviving spouse, children, or parents eligible to receive a
1586	pension provided for in subparagraph 1., subparagraph 2., or
1587	subparagraph 3., then the benefits remaining, if any, shall be
1588	paid to the member's estate.
1589	(c)  Death after retirement.-Upon the death of a retirant,
1590	the following applicable pensions shall be paid:
1591	1.  Surviving spouse's benefits.-The surviving spouse shall
1592	receive a pension equal to three-fourths of the retirant's
1593	pension at the time of his or her death. Upon the surviving
1594	spouse's death, the pension shall terminate.
1595	2.  Benefits for children, surviving spouse, etc.-In the
1596	event a deceased retirant does not leave a surviving spouse, or
1597	if the surviving spouse shall die, and the retirant leaves an
1598	unmarried child or children under age 18, each such child shall
1599	receive a pension of an equal share of the pension to which the
1600	retirant's surviving spouse was or would have been entitled.
1601	Upon any such child's adoption, marriage, death, or attainment
1602	of age 18, the child's pension shall terminate and said child's
1603	pension shall be apportioned to the deceased retirant's
1604	remaining eligible children under age 18.
1605	3.  Benefits for dependent parents.-In the event a retirant
1606	dies and does not leave a surviving spouse or children eligible
1607	to receive a pension provided for in subparagraphs 1. and 2.,
1608	and the retirant leaves a parent or parents whom the Board finds
1609	to have been dependent upon the retirant for 50 percent or more
1610	of their financial support, each such parent shall receive a
1611	pension of an equal share of the pension to which the retirant's
1612	surviving spouse would have been entitled. Upon any such
1613	parent's remarriage or death, the parent's pension shall
1614	terminate.
1615	4.  Estate.-In the event a retirant dies and does not leave
1616	a surviving spouse, children, or parents eligible to receive a
1617	pension provided for in subparagraph 1., subparagraph 2., or
1618	subparagraph 3., then the benefits remaining, if any, shall be
1619	paid to the retirant's estate.
1620	(8)  Acceptance of pension no bar to subsequent work.-The
1621	acceptance of a pension by a member upon retirement shall not
1622	bar the member from engaging in any other business thereafter.
1623	(9)  Pension not assignable or subject to garnishment.-The
1624	pensions or other benefits accrued or accruing to any person
1625	under the provision of this act and the accumulated
1626	contributions and the cash securities in the Funds created under
1627	this act shall not be subject to execution or attachment or to
1628	any legal process whatsoever, and shall be unassignable.
1629	However, pursuant to a court support order, the Trustees may
1630	direct that the retirement benefits be paid for alimony or child
1631	support in accordance with rules and regulations adopted by the
1632	Board of Trustees. Upon written request by the retiree, the
1633	Board of Trustees may authorize the Plan administrator to
1634	withhold from the monthly retirement payment funds necessary to:
1635	(a)  Pay for benefits being received through the City;
1636	(b)  Pay the certified bargaining agent; or
1637	(c)  Pay for premiums for accident health and long-term
1638	care insurance for the retiree's spouse and dependants.  A
1639	retirement plan does not incur liability for participation in
1640	this permissive program if its actions are taken in good faith
1641	pursuant to section 175.061(7), Florida Statutes.
1642	(10)  Transfer of funds.-All funds and assets previously
1643	owned and controlled by the West Palm Beach Firemen's Relief and
1644	Pension Fund are vested in the Board of this Fund.
1645	(11)  Ordinances applicable.-All ordinances of the City
1646	applicable to chapter 175, Florida Statutes, are hereby made
1647	applicable to this act with equal force and effect. No proposed
1648	change or amendment to this act shall be adopted without
1649	approval required by section 175.351(2), Florida Statutes.
1650	(12)  Existing benefits to continue.-This act, and any
1651	amendments thereto, shall not be construed to decrease the
1652	benefits payable to, or on account of, any member of the Fund.
1653	(13)  Workers' compensation offset.-The pension benefits
1654	payable under this act shall not be offset by workers'
1655	compensation benefits payable on account of the disability or
1656	death of a member except to the extent that the total of the
1657	pension benefits and workers' compensation benefits exceed the
1658	member's monthly average wage.
1659	(14)  Actuarial valuations.-The Fund shall be actuarially
1660	evaluated annually.
1661	(15)  Review procedures.-
1662	(a)  The applicant for benefits under this chapter may,
1663	within 20 days after being informed of the denial of his or her
1664	request for pension benefits, appeal the denial by filing a
1665	reply to the proposed order with the pension's secretary. If no
1666	appeal is filed within the time period, then the proposed order
1667	shall be final.
1668	(b)  The Board of Trustees shall hold a hearing within 45
1669	days after the receipt of the appeal. Written notice of the
1670	hearing shall be sent by certified mail return
1671	receipt/restricted to individual, to the applicant at the
1672	address listed on the application 10 days prior to the hearing.
1673	(c)  The procedures at the hearing shall be as follows:
1674	1.  All parties shall have an opportunity to respond, to
1675	present physical and testimonial evidence and argument on all
1676	issues involved, to conduct cross-examination, to submit
1677	rebuttal evidence, and to be represented by counsel. Medical
1678	reports and depositions may be accepted in lieu of live
1679	testimony at the Board's discretion.
1680	2.  All witnesses shall be sworn.
1681	3.  The applicant and the Board shall have an opportunity
1682	to question all witnesses.
1683	4.  Formal rules of evidence and formal rules of civil
1684	procedure shall not apply. The proceedings shall comply with the
1685	essential requirements of due process and law.
1686	5.  The record in a case governed by this subsection shall
1687	consist only of:
1688	a.  A tape recording of the hearing, to be taped and
1689	maintained as part of the official files of the Board of
1690	Trustees by the pension's secretary.
1691	b.  Evidence received or considered.
1692	c.  All notices, pleadings, motions, and intermediate
1693	rulings.
1694	d.  Any decisions, opinions, proposed or recommended
1695	orders, or reports by the Board of Trustees.
1696	(d)  Within 5 days after the first hearing, the Board shall
1697	take one of the following actions:
1698	1.  Grant the pension benefits by overturning the proposed
1699	order by a majority vote.
1700	2.  Deny the benefits and approve the proposed order as a
1701	final order after making any changes in the order the Board
1702	feels is necessary.
1703	(e)  Findings of fact by the Board shall be based on
1704	competent, substantial evidence on the record.
1705	(f)  Within 20 calendar days after rendering its order, the
1706	Board of Trustees shall send to the applicant, by certified mail
1707	return receipt/restricted to individual, a copy of the order.
1708	(g)  The applicant may seek review of the order by the
1709	Board of Trustees by filing a petition for writ of certiorari
1710	with the circuit court within 30 days.
1711	(16)  Pickup of employee contributions.-Effective the first
1712	day of the first full payroll period of the first calendar
1713	quarter following receipt of a favorable determination letter
1714	from the Internal Revenue Service, the City shall pick up the
1715	member contribution required by this section. The contributions
1716	so picked up shall be treated as employer contributions in
1717	determining tax treatment under the United States Internal
1718	Revenue Code. The City shall pick up the member contributions
1719	from funds established and available for salaries, which funds
1720	would otherwise have been designated as member contributions and
1721	paid to the Fund. Member contributions picked up by the City
1722	pursuant to this subsection shall be treated for all other
1723	purposes of making a refund of members' contributions, and for
1724	all other purposes of this and other laws, in the same manner
1725	and to the same extent as member contributions made prior to the
1726	effective date of this subsection. The intent of this subsection
1727	is to comply with section 414(H)(2) of the Internal Revenue
1728	Code.
1729	(17)  Internal Revenue Code limits.-
1730	(a)  In no event may a member's annual benefit exceed
1731	$160,000, adjusted for cost of living in accordance with
1732	Internal Revenue Code ("IRC") Section 415(d).
1733	(b)  If a member has less than 10 years of service with the
1734	City, the applicable limitation in paragraph (a) shall be
1735	reduced by multiplying such limitation by a fraction, not to
1736	exceed 1. The numerator of such fraction shall be the number of
1737	years, or part thereof, of service with the City; the
1738	denominator shall be 10 years.
1739	(c)  For purposes of this subsection, "annual benefit"
1740	means a benefit payable annually in the form of a straight life
1741	annuity with no ancillary or incidental benefits and with no
1742	member or rollover contributions. To the extent that ancillary
1743	benefits are provided, the limits set forth in paragraph (a)
1744	shall be reduced actuarially, using an interest rate assumption
1745	equal to the greater of 5 percent or the rate being used for
1746	actuarial equivalence, to reflect such ancillary benefits.
1747	(d)  If distribution of retirement benefits begins before
1748	age 62, the dollar limitation as described in paragraph (a)
1749	shall be reduced using an interest rate assumption equal to the
1750	greater of 5 percent or the interest rate used for actuarial
1751	equivalence; however, retirement benefits shall not be reduced
1752	below $75,000 if payment of benefits begins at or after age 55,
1753	and not below the actuarial equivalent of $75,000 if payment of
1754	benefits begins before age 55. For a member with 15 or more
1755	years of service with the City, the reductions described above
1756	shall not reduce such member's benefit below $50,000, adjusted
1757	for cost of living in accordance with IRC Section 415(d), but
1758	only for the year in which such adjustment is effective. If
1759	retirement benefits begin after age 65, the dollar limitation of
1760	paragraph (a) shall be increased actuarially by using an
1761	interest assumption equal to the lesser of 5 percent or the rate
1762	used for actuarial equivalence.
1763	(e)  Compensation in excess of limitations set forth in
1764	Section 401(a)(17) of the Internal Revenue Code shall be
1765	disregarded. The limitation on compensation for an eligible
1766	employee shall not be less than the amount which was allowed to
1767	be taken into account hereunder as in effect on July 1, 1993.
1768	"Eligible employee" is an individual who was a member before the
1769	first plan year beginning after December 31, 1995.
1770	(18)  Required distributions.-In accordance with IRC
1771	Section 401(9)(C), any and all benefit payments shall begin by
1772	the later of:
1773	(a)  April 1 of the calendar year following the calendar
1774	year of the member's retirement date; or
1775	(b)  April 1 of the calendar year following the calendar
1776	year in which the employee attains age 70 1/2.
1777	(19)  Miscellaneous requirements.-
1778	(a)  No benefit of any kind shall be payable from the
1779	assets of the Pension Fund unless specifically provided for in
1780	this act; however, the Board of Trustees, with the approval of
1781	the City, may grant ad hoc benefits after a public hearing and
1782	acceptance by the state of an actuarial impact statement
1783	submitted pursuant to part VII of chapter 112, Florida Statutes.
1784	(b)  The City may not offset any part of its required
1785	annual contribution by the Fund's assets except as determined in
1786	an actuarial valuation, the report for which is determined to be
1787	state accepted pursuant to part VII of chapter 112, Florida
1788	Statutes.
1789	(c)  All provisions of this act and operations of the
1790	Pension Fund shall be carried out in compliance with part VII of
1791	chapter 112, Florida Statutes.
1792	(d)  False or misleading statements made to obtain
1793	retirement benefits prohibited.-
1794	1.  It is unlawful for a person to willfully and knowingly
1795	make, or cause to be made, or to assist, conspire with, or urge
1796	another to make, or cause to be made, any false, fraudulent, or
1797	misleading oral or written statement or to withhold or conceal
1798	material information to obtain any benefit under this plan.
1799	2.a.  A person who violates subparagraph 1. commits a
1800	misdemeanor of the first degree, punishable as provided in
1801	section 775.082 or section 775.083, Florida Statutes.
1802	b.  In addition to any applicable criminal penalty, upon
1803	conviction for a violation of subparagraph 1., a participant or
1804	beneficiary of this plan may, in the discretion of the Board of
1805	Trustees, be required to forfeit the right to receive any or all
1806	benefits to which the person would otherwise be entitled under
1807	this Plan. For the purposes of this sub-subparagraph,
1808	"conviction" means a determination of guilt that is the result
1809	of a plea or trial, regardless of whether adjudication is
1810	withheld.
1811	(20)  Rollover distributions.-
1812	(a)  This subsection applies to distributions made on or
1813	after January 1, 1993. Notwithstanding any provision of the Plan
1814	to the contrary that would otherwise limit a distributee's
1815	election under this subsection, a distributee may elect, at the
1816	time and in the manner prescribed by the Board of Trustees, to
1817	have any portion of an eligible rollover distribution paid
1818	directly to an eligible retirement plan specified by the
1819	distributee in a direct rollover.
1820	(b)1.  "Eligible rollover distribution" is any distribution
1821	of all or any portion of the balance to the credit of the
1822	distributee, except that an eligible rollover does not include
1823	any distribution that is one of a series of substantially equal
1824	periodic payments (not less frequently than annually) made for
1825	the life (or life expectancy) of the distributee or the joint
1826	lives (or joint life expectancies) of the distributee and the
1827	distributee's designated beneficiary, or for a specified period
1828	of 10 years or more; any distribution to the extent such
1829	distribution is required under section 401(a)(9) of the Code;
1830	and the portion of any distribution that is not includable in
1831	gross income.
1832	2.  "Eligible retirement plan" is an individual retirement
1833	account described in section 408(a) of the Code, an individual
1834	retirement annuity described in section 408(b) of the Code, an
1835	annuity plan described in section 403(a) of the Code, or a
1836	qualified trust described in section 401(a) of the Code that
1837	accepts the distributee's eligible rollover distribution.
1838	However, in the case of an eligible rollover distribution to the
1839	surviving spouse, an "eligible retirement plan" is an individual
1840	retirement account or individual retirement annuity.
1841	3.  "Distributee" includes an employee or former employee.
1842	In addition, the employee's or former employee's surviving
1843	spouse and the employee's or former employee's spouse or former
1844	spouse who is entitled to payment for alimony and child support
1845	under a domestic relations order determined to be qualified by
1846	this Fund are distributees with regard to the interest of the
1847	spouse or former spouse.
1848	4.  "Direct rollover" is a payment by the Plan to the
1849	eligible retirement plan specified by the distributee.
1850	(21)  Rollovers from qualified plans.-
1851	(a)  A member may roll over all or part of his or her
1852	assets in another qualified plan to his or her chapter 175,
1853	Florida Statutes, share account, provided all of the following
1854	requirements are met:
1855	1.  Some or all of the amount distributed from the other
1856	plan is rolled over to this plan no later than the 60th day
1857	after distribution was made from the plan or, if distributions
1858	are made in installments, no later than the 60th day after the
1859	last distribution was made.
1860	2.  The amount rolled over to the share account does not
1861	include any amounts contributed by the member to the plan on a
1862	posttax basis.
1863	3.  The rollover is made in cash.
1864	4.  The member certifies that the distribution is eligible
1865	for a rollover.
1866	5.  Amounts which the Trustee accepts as a rollover to this
1867	Fund shall, along with any earnings allocated to the Trustee, be
1868	fully vested at all times.
1869
1870	The rollover may also be made to this plan from an individual
1871	retirement account qualified under Code Section 408 when the
1872	individual retirement was merely used as a conduit for funds
1873	from another qualified plan and the rollover is made in
1874	accordance with the rules provided in subparagraphs 1.-5.
1875	Amounts rolled over may be segregated from other Fund assets.
1876	The Trustee shall separately account for gains, losses, and
1877	administrative expenses on these rollovers as provided for in
1878	paragraphs (5)(d) and (j). In addition, the Fund may accept the
1879	direct transfer of a member's benefits from another qualified
1880	retirement plan or Internal Revenue Code section 457 plan. The
1881	Fund shall account for direct transfers in the same manner as a
1882	rollover and shall obtain certification from the member that the
1883	amounts are eligible for a rollover or direct transfer to this
1884	Fund.
1885	(b)  Transfer of accumulated leave.-
1886	1.  Members eligible to receive accumulated sick leave,
1887	accumulated vacation leave, or any other accumulated leave
1888	payable upon separation shall have the leave transferred to the
1889	Fund up to the amount permitted by law. Any additional amounts
1890	shall be paid directly to the member. Members on whose behalf
1891	leave has been transferred shall maintain the entire amount of
1892	the transferred leave balance in the DROP or Share Account.
1893	2.  If a member on whose behalf the City makes a
1894	transferred leave balance to the Plan dies after retirement or
1895	other separation, then any person who would have received a
1896	death benefit had the member died in service immediately prior
1897	to the date of retirement or other separation shall be entitled
1898	to receive an amount equal to the transferred leave balance in a
1899	lump sum. In the case of a surviving spouse or former spouse, an
1900	election may be made to transfer the leave balance to an
1901	eligible retirement plan in lieu of the lump sum payment.
1902	Failure to make such an election by the surviving spouse or
1903	former spouse within 60 days after the member's death shall be
1904	deemed an election to receive the lump sum payment.
1905	3.  The Board, by rule, shall prescribe the method for
1906	implementing the provisions of this paragraph.
1907	4.  Amounts transferred under this section shall remain
1908	invested in the Pension Fund for a period of not less than 1
1909	year.
1910	(22)  Actuarial assumptions.-The following actuarial
1911	assumptions shall be used for all purposes in connection with
1912	this Fund, effective October 1, 1998:
1913	(a)  The period for amortizing current, future, and past
1914	actuarial gains or losses shall be 20 years.
1915	(b)  The assumed investment rate of return shall be 8.25
1916	percent.
1917	(23)  Prior firefighter service.-Unless otherwise
1918	prohibited by law, the years, or fractional parts of years, that
1919	a member previously served as a firefighter for any other
1920	municipal, county, or state, or federal fire department or
1921	district or any time served in the military service of the Armed
1922	Forces of the United States shall be added to the years of
1923	credited service, provided that the member contributes to the
1924	fund the sum that would have been contributed, based on the
1925	member's salary and the employee contribution rate in effect at
1926	the time that the credited service is requested, had the member
1927	been a member of this system for the years, or fractional parts
1928	of years, for which the credit is requested, plus the amount
1929	actuarially determined, such that the crediting of service does
1930	not result in any cost to the fund, plus payment of costs for
1931	all professional services rendered to the board in connection
1932	with the purchase of years of credited service.
1933	(a)  Payment by the member of the required amount may be
1934	made within 6 months after the request for credit and in one
1935	lump sum payment, or the member may buy back this time over a
1936	period equal to the length of time being purchased or 5 years,
1937	whichever is greater, at an interest rate which is equal to the
1938	Fund's actuarial assumption. A member may request to purchase
1939	some or all years of eligible service.
1940	(b)  The credit purchased under this section shall count
1941	for all purposes, except vesting.
1942	(c)  In no event, however, may credited service be
1943	purchased pursuant to this section for prior service with any
1944	other municipal, county, or state fire department or district,
1945	if such prior service forms or will form the basis of a
1946	retirement benefit or pension from another retirement system or
1947	plan.
1948	(d)  In the event that a member who is in the process of
1949	purchasing service suffers a disability and is awarded a benefit
1950	from the plan, the member shall not be required to complete the
1951	buyback. However, contributions made prior to the date the
1952	disability payment begins will be retained by the Fund.
1953	(e)  If a member who has either completed the purchase of
1954	service or is in the process of purchasing service terminates
1955	before vesting, the member's contributions shall be refunded,
1956	including the buyback contributions.
1957	(f)  A request to purchase service may be made at any time
1958	during the course of employment. A member may elect to purchase
1959	permissive service more than one time; however, the maximum
1960	years of service that may be purchased is 5 years.
1961	(g)  There shall be no fiscal impact to the City, now or in
1962	the future, as a result of the purchase of credit for prior
1963	firefighter service or military service.
1964	(24)  Termination of the Fund.-Upon termination of the Plan
1965	by the City for any reason, or because of a transfer, merger, or
1966	consolidation of governmental units, services, or functions as
1967	provided in chapter 121, Florida Statutes, or upon written
1968	notice to the Board by the City that contributions under the
1969	plan are being permanently discontinued, the rights of all
1970	employees to benefits accrued to the date of such termination or
1971	discontinuance and the amounts credited to the employees'
1972	accounts are nonforfeitable. The Fund shall be distributed in
1973	accordance with the following procedures:
1974	(a)  The Board shall determine the date of distribution and
1975	the asset value required to fund all the nonforfeitable
1976	benefits, after taking into account the expenses of such
1977	distribution. The Board shall inform the City if additional
1978	assets are required, in which event the City shall continue to
1979	financially support the Plan until all nonforfeitable benefits
1980	have been funded.
1981	(b)  The Board shall determine the method of distribution
1982	of the asset value, whether distribution shall be by payment in
1983	cash, by the maintenance of another or substituted trust fund,
1984	by the purchase of insured annuities, or otherwise, for each
1985	firefighter entitled to benefits under the plan, as specified in
1986	paragraph (c).
1987	(c)  The Board shall distribute the asset value as of the
1988	date of termination in the manner set forth in this paragraph,
1989	on the basis that the amount required to provide any given
1990	retirement income is the actuarially computed single-sum value
1991	of such retirement income, except that if the method of
1992	distribution determined under paragraph (b) involves the
1993	purchase of an insured annuity, the amount required to provide
1994	the given retirement income is the single premium payable for
1995	such annuity. The actuarial single-sum value may not be less
1996	than the employee's accumulated contributions to the Plan, with
1997	interest if provided by the Plan, less the value of any Plan
1998	benefits previously paid to the employee.
1999	(d)  If there is asset value remaining after the full
2000	distribution specified in paragraph (c), and after payment of
2001	any expenses incurred with such distribution, such excess shall
2002	be returned to the City, less return to the state of the state's
2003	contributions, provided that, if the excess is less than the
2004	total contributions made by the City and the state to date of
2005	termination of the Plan, such excess shall be divided
2006	proportionately to the total contributions made by the City and
2007	the state.
2008	(e)  The Board shall distribute, in accordance with the
2009	manner of distribution determined under paragraph (b), the
2010	amounts determined under paragraph (c).
2011	Section 2.  This act shall take effect upon becoming a law.

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