HB 0777

CS

CHAMBER ACTION

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

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