HB 1301 Summary

• Amends the West Palm Beach Police Pension Fund statute to revise retirement benefit calculations, reducing the benefit multiplier from 3 percent to 2.68 percent for years of service after October 1, 2011, due to lowering the investment return assumption from 8.25 percent to 8 percent.

• Modifies overtime calculations by limiting overtime hours to 300 hours per year (effective January 1, 2013) instead of 400 hours for purposes of calculating final average salary and pension benefits.

• Adjusts employee contribution rates, temporarily reducing contributions to 11 percent through use of Chapter 185 tax revenues for 2011-2012, with contributions returning to applicable rates thereafter.

• Updates DROP (Deferred Retirement Option Plan) provisions and fixed investment rate options, changing the fixed rate from 8.25 percent to 8 percent effective October 1, 2012, with deficiency protection mechanisms.

• Makes technical changes to pension distribution, supplemental pension calculations, rollovers, actuarial assumptions, and plan termination procedures to maintain compliance with federal tax law and actuarial standards.