Florida 2022 Regular Session

Florida House Bill H0929 Compare Versions

Version 1 (Old)

Version 2 (New)

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10	10		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
11	11
12		-	1
	12	+	A bill to be entitled 1
13	13		An act relating to the City of West Palm Beach, Palm 2
14	14		Beach County; amending ch. 24981 (1947), Laws of 3
15	15		Florida, as amended; revising the definition of the 4
16	16		term "salary"; providing that the definition does not 5
17	17		include certain persons in a collective bargaining 6
18	18		agreement; providing for retroactive restoration of 7
19	19		the benefit accrual rate to 3 percent for all years of 8
20	20		a member's service within a specified time period ; 9
21	21		conforming a provision to changes made by the act; 10
22	22		providing that eligible members receive a lump -sum 11
23	23		payment for accumulated leave payable upon retirement; 12
24	24		providing exceptions; providing a directive to the 13
25	25		Division of Law Revision; providing an effecti ve date. 14
26	26		15
27	27		Be It Enacted by the Legislature of the State of Florida: 16
28	28		17
29	29		Section 1. Paragraph (q) of subsection (2), paragraph (a) 18
30	30		of subsection (9), and paragraph (b) of subsection (31) of 19
31	31		section 16 of chapter 24981 (1947), Laws of Florida, as amende d 20
32	32		by chapters 2012-259, 2017-207, and 2018-168, Laws of Florida, 21
33	33		are amended to read: 22
34	34		Section 16. West Palm Beach Police Pension Fund. — 23
35	35		(2) Definitions.—The following words or phrases, as used 24
36	36		in this act, shall have the following meanings, unless a 25
37		-	~~ENROLLED~~
38		-	HB 929 2022 ~~Legislature~~
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45	45		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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47	47		different meaning is clearly indicated by the context: 26
48	48		(q) "Salary" means the fixed monthly compensation paid to 27
49	49		a member; compensation shall include those items as have been 28
50	50		included as compensation in accordance with past practice. 29
51	51		However, the term sh all not be construed to include lump sum 30
52	52		payments for accumulated leave. On and after January 1, 2003, 31
53	53		salary shall mean total cash remuneration paid by the City to a 32
54	54		police officer for services rendered excluding lump sum payments 33
55	55		for accumulated leave su ch as accrued vacation leave, accrued 34
56	56		sick leave, and accrued personal leave. Effective January 1, 35
57	57		2005, overtime hours earned and paid in excess of 400 hours in 36
58	58		any 26 consecutive pay periods shall be excluded from the 37
59	59		definition of salary. Effective pros pectively from January 1, 38
60	60		2013, overtime hours earned and paid in excess of 300 hours in 39
61	61		any 26 consecutive pay periods shall be excluded from the 40
62	62		definition of salary. ; Prior to January 1, 2005, all overtime 41
63	63		hours earned and paid shall be included in the definition of 42
64	64		salary and shall not be limited by any cap. This definition of 43
65	65		compensation shall not include off -duty employment performed for 44
66	66		vendors other than the City of West Palm Beach per Article 30, 45
67	67		Pension Plan and Section 8 5 of the collective barg aining 46
68	68		agreement between the Florida State Lodge, Fraternal Order of 47
69	69		Police, Inc., Certified Unit No 1985 and Certified Unit No 1986, 48
70	70		Palm Beach County Police Benevolent Association and the City of 49
71	71		West Palm Beach. Beginning with salary paid after December 31, 50
72		-	~~ENROLLED~~
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80	80		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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82	82		2008, and pursuant to s. 414(u)(7) of the Internal Revenue Code, 51
83	83		"salary" includes amounts paid by the City as differential wages 52
84	84		to members who are absent from employment while in qualified 53
85	85		military service. 54
86	86		(9) Retirement pension calculation. — 55
87	87		(a) Upon retirement eligibility as provided in subsection 56
88	88		(8), a member shall receive a monthly pension. The pension shall 57
89	89		be the following, as applicable: 58
90	90		1.a. For all years of service earned after October 1, 59
91	91		2017, the benefit is calculated using 3 perce nt of final average 60
92	92		salary per year and fractional parts of the years of service up 61
93	93		to a total of 26 years, plus 1 percent of the final average 62
94	94		salary multiplied by the number of years, and fraction of a 63
95	95		year, of credited service in excess of 26 years. For all years 64
96	96		of service earned after October 1, 2011, and before October 1, 65
97	97		2017, the benefit is calculated using 2.68 percent of final 66
98	98		average salary per year and fractional parts of the years of 67
99	99		service and is included in the 26 -year limitation. This chang e 68
100	100		in the multiplier was due to the change in assumptions in a 69
101	101		prior version of this special act. This reduction is required by 70
102	102		this paragraph. For years of service earned before October 1, 71
103	103		2011, the benefit will be calculated under the provisions of the 72
104	104		applicable subparagraphs 2. -4. For purposes of determining the 73
105	105		26-year limitation, the member's total number of years of 74
106	106		credited service are used, regardless of whether the multiplier 75
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115	115		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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117	117		is 3 percent or 2.68 percent. In no event shall the benefit be 76
118	118		less than 2.75 percent per year of credited service. 77
119	119		b. Beginning upon the effective date of this act, the 78
120	120		benefit accrual rate of 2.68 percent as described in sub -79
121	121		subparagraph 1.a. will be retroactively restored to 3 percent 80
122	122		for all years of a member's service be tween October 1, 2011, and 81
123	123		October 1, 2017, provided that the member retires or enters DROP 82
124	124		after the effective date of this act. This benefit is not 83
125	125		available to members who retired, including entry into DROP, 84
126	126		prior to the effective date of this act. 85
127	127		2. A member who has more than or equal to 12 years and 6 86
128	128		months of service at October 1, 1999, and who was actively 87
129	129		employed by the Department on or after October 1, 1999, shall 88
130	130		receive a benefit equal to 3 percent of final average salary 89
131	131		multiplied by the number of years, and fraction of a year, of 90
132	132		credited service earned from April 1, 1987, to September 30, 91
133	133		2011, plus 2.5 percent of final average salary multiplied by the 92
134	134		number of years, and fraction of a year, of credited service 93
135	135		earned prior to April 1, 1 987, up to a total of 26 years, plus 1 94
136	136		percent of the final average salary multiplied by the number of 95
137	137		years, and fraction of a year, of credited service which is in 96
138	138		excess of 26 years. In no event shall the benefit be less than 97
139	139		2.75 percent per year of cr edited service. For all years of 98
140	140		service after October 1, 2011, the benefit will be calculated in 99
141	141		accordance with subparagraph 1. 100
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150	150		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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152	152		3. A member who has less than 12 years and 6 months of 101
153	153		service on October 1, 1999, and who was actively employed by the 102
154	154		Department on or after October 1, 1999, shall receive a benefit 103
155	155		equal to 3 percent of final average salary multiplied by the 104
156	156		number of years, and fraction of a year, of credited service up 105
157	157		to September 30, 2011, plus 1 percent of the final average 106
158	158		salary multiplied by the number of years, and fraction of a 107
159	159		year, of credited service which is in excess of 26 years. In no 108
160	160		event shall the benefit be less than 2.75 percent per year of 109
161	161		credited service. For all years of service after October 1, 110
162	162		2011, the benefit will be calculated in accordance with 111
163	163		subparagraph 1. 112
164	164		4. A member who terminated employment, retired on a vested 113
165	165		deferred benefit, or retired on or before October 1, 1999, shall 114
166	166		receive a benefit equal to the greater of the following: 115
167	167		a. Two and one-half percent of final average salary 116
168	168		multiplied by the number of years, and fraction of a year, of 117
169	169		credited service not to exceed 26 years, plus 1 percent of the 118
170	170		final average salary multiplied by the number of years, and 119
171	171		fraction of a year, of credited service which is in excess of 26 120
172	172		years; or 121
173	173		b. The sum of the following: 122
174	174		(I) Two and one-half percent of final average salary 123
175	175		multiplied by the number of years, and fraction of a year, of 124
176	176		credited service earned through September 30, 1988; and 125
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185	185		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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187	187		(II) Two percent of final average salary multiplied by the 126
188	188		number of years, and fraction of a year, of credited service 127
189	189		earned on and after October 1, 1988. 128
190	190		129
191	191		To the extent that the benefit accrual factor is less than 3 130
192	192		percent for active members with less than 12 y ears and 6 months 131
193	193		of service on October 1, 1999, the supplemental pension 132
194	194		distribution calculation under subparagraph (12)(a)2. shall be 133
195	195		adjusted for employees who retire or enter the DROP after 134
196	196		October 1, 1999. The adjustment shall be to decrease the mini mum 135
197	197		return of 8.25 percent needed to afford the supplemental pension 136
198	198		distribution, where the amount of the reduction is zero if an 137
199	199		employee has been credited with 12 years and 6 months of service 138
200	200		or more with the 3-percent benefit accrual factor or 1.25 139
201	201		percent if an employee has been credited with no more than a 140
202	202		2.5-percent benefit accrual factor. If an employee has been 141
203	203		credited with less than 12 years and 6 months of service at the 142
204	204		3-percent benefit accrual factor, then the accumulated amount 143
205	205		over 2.5 percent for each year of service divided by one -half 144
206	206		percent divided by 12.5 subtracted from 1 multiplied by 1.25 145
207	207		percent is the reduction from 8.25 percent. An example of the 146
208	208		calculation of the minimum return for the supplemental pension 147
209	209		distribution as herein described is set forth in the collective 148
210	210		bargaining agreement between the City of West Palm Beach and the 149
211	211		Florida State Lodge, Fraternal Order of Police, Inc., Certified 150
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220	220		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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222	222		Unit No 1985 and Certified Unit No 1986, October 1, 2021, to 151
223	223		September 30, 2024 Police Benevolent Association, Certified Unit 152
224	224		No. 145 and Certified Unit No. 825, October 1, 1998 -September 153
225	225		30, 2001. 154
226	226		155
227	227		Effective October 1, 2011, the assumed investment rate of return 156
228	228		was lowered from 8.25 percent to 8 percent, which resulted in a 157
229	229		reduction in the benefit multiplier to 2.68 percent for all 158
230	230		prospective years of service, up to 26 years of service in 159
231	231		total, and 1 percent for each year of service after 26. 160
232	232		Additionally, for any supplemental pension distributions 161
233	233		subsequent to October 1, 2011, the revised factors in this 162
234	234		paragraph will be applied. 163
235	235		(31) 164
236	236		(b) Transfer of accumulated leave. — 165
237	237		1. Members who are eligible to receive a lump -sum payment 166
238	238		for accumulated leave payable upon retirement including entry 167
239	239		into DROP, but neither vested terminat ion nor non-vested 168
240	240		termination, separation and who have funds remaining after the 169
241	241		contributions to the health savings account as required by the 170
242	242		collective bargaining agreement shall have the remaining leave 171
243	243		payment transferred to the Fund up to the amount permitted by 172
244	244		law. Any additional amounts shall be paid directly to the 173
245	245		member. Members on whose behalf leave has been transferred shall 174
246	246		maintain the entire amount of the transferred leave balance in 175
247		-	~~ENROLLED~~
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255	255		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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257	257		the DROP or Share Account. 176
258	258		2. If a member on whose beh alf the City makes a 177
259	259		transferred leave balance to the Plan dies after retirement or 178
260	260		other separation, then any person who would have received a 179
261	261		death benefit had the member died in service immediately prior 180
262	262		to the date of retirement or other separation sha ll be entitled 181
263	263		to receive an amount equal to the transferred leave balance in a 182
264	264		lump sum. In the case of a surviving spouse or former spouse, an 183
265	265		election may be made to transfer the leave balance to an 184
266	266		eligible retirement plan in lieu of the lump sum payme nt. 185
267	267		Failure to make such an election by the surviving spouse or 186
268	268		former spouse within 60 days after the member's death shall be 187
269	269		deemed an election to receive the lump sum payment. 188
270	270		3. The Board, by rule, shall prescribe the method for 189
271	271		implementing the prov isions of this paragraph. 190
272	272		4. Amounts transferred under this section shall remain 191
273	273		invested in the Fund for a period of not less than 1 year. 192
274	274		Section 2. The Division of Law Revision is directed to 193
275	275		replace the phrase "the effective date of this act" whe rever it 194
276	276		occurs in this act with the date this act becomes a law. 195
277	277		Section 3. This act shall take effect upon becoming a law. 196