Bill Text: FL S0428 | 2017 | Regular Session | Introduced
Bill Title: Local Government Participation in the Florida Retirement System
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2017-05-05 - Died in Governmental Oversight and Accountability [S0428 Detail]
Download: Florida-2017-S0428-Introduced.html
Florida Senate - 2017 SB 428 By Senator Brandes 24-00489A-17 2017428__ 1 A bill to be entitled 2 An act relating to local government participation in 3 the Florida Retirement System; amending s. 121.051, 4 F.S.; providing that employees of a governing body of 5 a municipality, metropolitan planning organization, or 6 special district that applies to participate in the 7 Florida Retirement System on or after a certain date 8 may enroll only in the defined contribution program; 9 authorizing enrollment in the pension plan for 10 employees of governing bodies that have elected or 11 applied to participate in the Florida Retirement 12 System before a certain date; providing for 13 retroactive application; providing an effective date. 14 15 Be It Enacted by the Legislature of the State of Florida: 16 17 Section 1. Paragraph (b) of subsection (2) of section 18 121.051, Florida Statutes, is amended to read: 19 121.051 Participation in the system.— 20 (2) OPTIONAL PARTICIPATION.— 21 (b)1. The governing body of any municipality, metropolitan 22 planning organization, or special district in the state may 23 elect to participate in the Florida Retirement System upon 24 proper application to the administrator and may cover all of its 25 units as approved by the Secretary of Health and Human Services 26 and the administrator. The department shall adopt rules 27 establishing procedures for the submission of documents 28 necessary for such application. Before being approved for 29 participation in the system, the governing body of a 30 municipality, metropolitan planning organization, or special 31 district that has a local retirement system must submit to the 32 administrator a certified financial statement showing the 33 condition of the local retirement system within 3 months before 34 the proposed effective date of membership in the Florida 35 Retirement System. The statement must be certified by a 36 recognized accounting firm that is independent of the local 37 retirement system. All required documents necessary for 38 extending Florida Retirement System coverage must be received by 39 the department for consideration at least 15 days before the 40 proposed effective date of coverage. If the municipality, 41 metropolitan planning organization, or special district does not 42 comply with this requirement, the department may require that 43 the effective date of coverage be changed. 44 2. A municipality, metropolitan planning organization, or 45 special district that has an existing retirement system covering 46 the employees in the units that are to be brought under the 47 Florida Retirement System may participate only after holding a 48 referendum in which all employees in the affected units have the 49 right to participate. Only those employees electing coverage 50 under the Florida Retirement System by affirmative vote in the 51 referendum are eligible for coverage under this chapter, and 52 those not participating or electing not to be covered by the 53 Florida Retirement System shall remain in their present systems 54 and are not eligible for coverage under this chapter. After the 55 referendum is held, all future employees are compulsory members 56 of the Florida Retirement System. 57 3. At the time of joining the Florida Retirement System, 58 the governing body of a municipality, metropolitan planning 59 organization, or special district complying with subparagraph 1. 60 may elect to provide, or not provide, benefits based on past 61 service of officers and employees as described in s. 121.081(1). 62 However, if such employer elects to provide past service 63 benefits, such benefits must be provided for all officers and 64 employees of its covered group. 65 4. Once this election is made and approved it may not be 66 revoked, except pursuant to subparagraphs 6. and 7.5. and 6., 67 and all present officers and employees electing coverage and all 68 future officers and employees are compulsory members of the 69 Florida Retirement System. 70 5. Enrollment in the pension plan is closed to the 71 employees of a governing body of any municipality, metropolitan 72 planning organization, or special district that submits an 73 application to the administrator to participate in the Florida 74 Retirement System pursuant to this paragraph on or after January 75 1, 2017. On or after January 1, 2017, such employees shall be 76 enrolled in the defined contribution program established 77 pursuant to s. 121.4501. Employees of a governing body 78 participating, or that has applied to participate, in the 79 Florida Retirement System before January 1, 2017, may continue 80 or choose enrollment in the pension plan. 81 6.5.Subject to subparagraph 7.6., the governing body of a 82 hospital licensed under chapter 395 which is governed by the 83 governing body of a special district as defined in s. 189.012 or 84 by the board of trustees of a public health trust created under 85 s. 154.07, hereinafter referred to as “hospital district,” and 86 which participates in the Florida Retirement System, may elect 87 to cease participation in the system with regard to future 88 employees in accordance with the following: 89 a. No more than 30 days and at least 7 days before adopting 90 a resolution to partially withdraw from the system and establish 91 an alternative retirement plan for future employees, a public 92 hearing must be held on the proposed withdrawal and proposed 93 alternative plan. 94 b. From 7 to 15 days before such hearing, notice of intent 95 to withdraw, specifying the time and place of the hearing, must 96 be provided in writing to employees of the hospital district 97 proposing partial withdrawal and must be published in a 98 newspaper of general circulation in the area affected, as 99 provided by ss. 50.011-50.031. Proof of publication must be 100 submitted to the Department of Management Services. 101 c. The governing body of a hospital district seeking to 102 partially withdraw from the system must, before such hearing, 103 have an actuarial report prepared and certified by an enrolled 104 actuary, as defined in s. 112.625, illustrating the cost to the 105 hospital district of providing, through the retirement plan that 106 the hospital district is to adopt, benefits for new employees 107 comparable to those provided under the system. 108 d. Upon meeting all applicable requirements of this 109 subparagraph, and subject to subparagraph 7.6., partial 110 withdrawal from the system and adoption of the alternative 111 retirement plan may be accomplished by resolution duly adopted 112 by the hospital district board. The hospital district board must 113 provide written notice of such withdrawal to the division by 114 mailing a copy of the resolution to the division, postmarked by 115 December 15, 1995. The withdrawal shall take effect January 1, 116 1996. 117 7.6.Following the adoption of a resolution under sub 118 subparagraph 6.d.5.d., all employees of the withdrawing 119 hospital district who were members of the system before January 120 1, 1996, shall remain as members of the system for as long as 121 they are employees of the hospital district, and all rights, 122 duties, and obligations between the hospital district, the 123 system, and the employees remain in full force and effect. Any 124 employee who is hired or appointed on or after January 1, 1996, 125 may not participate in the system, and the withdrawing hospital 126 district has no obligation to the system with respect to such 127 employees. 128 Section 2. This act shall apply retroactively to January 1, 129 2017. 130 Section 3. This act shall take effect upon becoming a law.