Bill Text: FL S0458 | 2013 | Regular Session | Engrossed
Bill Title: Firefighter and Police Officer Pension Plans
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2013-05-03 - Died on Calendar [S0458 Detail]
Download: Florida-2013-S0458-Engrossed.html
CS for CS for SB 458 Second Engrossed (ntc) 2013458e2 1 A bill to be entitled 2 An act relating to firefighter and police officer 3 pension plans; amending s. 175.021, F.S.; revising the 4 legislative declaration to require all plans to meet 5 the requirements of ch. 175, F.S., in order to receive 6 insurance premium tax revenues; amending s. 175.032, 7 F.S.; revising definitions to conform to changes made 8 by the act and adding new definitions; amending s. 9 175.071, F.S.; conforming a cross-reference; amending 10 s. 175.091, F.S.; revising existing payment provisions 11 and providing for an additional mandatory payment by 12 the municipality or special fire control district to 13 the firefighters’ pension trust fund; amending s. 14 175.162, F.S.; deleting a limitation on state 15 contributions funding additional benefits; amending s. 16 175.351, F.S., relating to municipalities and special 17 fire control districts that have their own pension 18 plans and want to participate in the distribution of a 19 tax fund; revising criteria governing the use of 20 income from the premium tax; requiring plan sponsors 21 to have a defined contribution plan in place by a 22 certain date; authorizing a municipality to implement 23 certain changes to a local law plan which are contrary 24 to ch. 175, F.S., under certain time-limited 25 circumstances; amending s. 185.01, F.S.; revising the 26 legislative declaration to require all plans to meet 27 the requirements of ch. 185, F.S., in order to receive 28 insurance premium tax revenues; amending s. 185.02, 29 F.S.; revising definitions to conform to changes made 30 by the act and adding new definitions; deleting a 31 provision allowing a local law plan to limit the 32 amount of overtime payments which can be used for 33 retirement benefit calculations; amending s. 185.06, 34 F.S.; conforming a cross-reference; amending s. 35 185.07, F.S.; revising existing payment provisions and 36 providing for an additional mandatory payment by the 37 municipality to the police officers’ retirement trust 38 fund; amending s. 185.16, F.S.; deleting a limitation 39 on state contributions funding additional benefits; 40 amending s. 185.35, F.S., relating to municipalities 41 that have their own pension plans for police officers 42 and want to participate in the distribution of a tax 43 fund; revising criteria governing the use of income 44 from the premium tax; requiring plan sponsors to have 45 a defined contribution plan in place by a certain 46 date; authorizing a municipality to implement certain 47 changes to a local law plan which are contrary to ch. 48 185, F.S., under certain time-limited circumstances; 49 providing a declaration of important state interest; 50 providing an effective date. 51 52 Be It Enacted by the Legislature of the State of Florida: 53 54 Section 1. Subsection (2) of section 175.021, Florida 55 Statutes, is amended to read: 56 175.021 Legislative declaration.— 57 (2) This chapter hereby establishes, for all municipal and 58 special district pension plans existingnow or hereafterunder 59 this chapter, including chapter plans and local law plans, 60 requiredminimumbenefits and minimum standards for the 61 operation and funding of such plans, hereinafter referred to as 62 firefighters’ pension trust funds, which must be met as a 63 condition precedent to the plan or plan sponsor receiving a 64 distribution of insurance premium tax revenues under s. 175.121. 65 The requiredminimumbenefits and minimum standards for each 66 plan as set forth in this chapter may not be diminished by local 67 charter, ordinance, or resolution or by special act of the 68 Legislature, ornor may the minimum benefits or minimum69standardsbe reduced or offset by any other local, state, or 70 federal law that may include firefighters in its operation, 71 except as provided under s. 112.65. 72 Section 2. Section 175.032, Florida Statutes, is amended to 73 read: 74 175.032 Definitions.—For any municipality, special fire 75 control district, chapter plan, local law municipality, local 76 law special fire control district, or local law plan under this 77 chapter, the termfollowing words and phrases have the following78meanings: 79 (1) “Additional premium tax revenues” means revenues 80 received by a municipality or special fire control district 81 pursuant to s. 175.121 which exceed base premium tax revenues. 82 (2)(1)(a)“Average final compensation” for: 83 (a) A full-time firefighter means one-twelfth of the 84 average annual compensation of the 5 best years of the last 10 85 years of creditable service beforeprior toretirement, 86 termination, or death, or the career average as a full-time 87 firefighter since July 1, 1953, whichever is greater. A year is 88shall be12 consecutive months or such other consecutive period 89 of time as is used and consistently applied. 90 (b)“Average final compensation” forA volunteer 91 firefighter means the average salary of the 5 best years of the 92 last 10 best contributing years before aprior tochange in 93 status to a permanent full-time firefighter or retirement as a 94 volunteer firefighter or the career average of a volunteer 95 firefighter, since July 1, 1953, whichever is greater. 96 (3) “Base benefits” means the level of benefits in 97 existence for firefighters on March 12, 1999. 98 (4) “Base premium tax revenues” means revenues received by 99 a municipality or special fire control district pursuant to s. 100 175.121 equal to the amount of such revenues received for 101 calendar year 1997. 102 (5)(2)“Chapter plan” means a separate defined benefit 103 pension plan for firefighters which incorporates by reference 104 the provisions of this chapter and has been adopted by the 105 governing body of a municipality or special district. Except as 106 may be specifically authorized in this chapter, the provisions 107 of a chapter plan may not differ from the plan provisions set 108 forth in ss. 175.021-175.341 and 175.361-175.401. Actuarial 109 valuations of chapter plans shall be conducted by the division 110 as provided by s. 175.261(1). 111 (6)(3)“Compensation” or “salary” means, for 112 noncollectively bargained service earned before July 1, 2011, or 113 for service earned under collective bargaining agreements in 114 place before July 1, 2011, the fixed monthly remuneration paid a 115 firefighter. If remuneration is based on actual services 116 rendered, as in the case of a volunteer firefighter, the term 117 means the total cash remuneration received yearly for such 118 services, prorated on a monthly basis. For noncollectively 119 bargained service earned on or after July 1, 2011, or for 120 service earned under collective bargaining agreements entered 121 into on or after July 1, 2011, the term has the same meaning 122 except that when calculating retirement benefits, up to 300 123 hours per year in overtime compensation may be included as 124 specified in the plan or collective bargaining agreement, but 125 payments for accrued unused sick or annual leave may not be 126 included. 127 (a) Any retirement trust fund or plan that meets the 128 requirements of this chapter does not, solely by virtue of this 129 subsection, reduce or diminish the monthly retirement income 130 otherwise payable to each firefighter covered by the retirement 131 trust fund or plan. 132 (b) The member’s compensation or salary contributed as 133 employee-elective salary reductions or deferrals to any salary 134 reduction, deferred compensation, or tax-sheltered annuity 135 program authorized under the Internal Revenue Code shall be 136 deemed to be the compensation or salary the member would receive 137 if he or she were not participating in such program andshall be138 treated as compensation for retirement purposes under this 139 chapter. 140 (c) For any person who first becomes a member in any plan 141 year beginning on or after January 1, 1996, compensation for 142 that plan year may not include any amounts in excess of the 143 Internal Revenue Code s. 401(a)(17) limitation, as amended by 144 the Omnibus Budget Reconciliation Act of 1993, which limitation 145 of $150,000 shall be adjusted as required by federal law for 146 qualified government plans andshall befurther adjusted for 147 changes in the cost of living in the manner provided by Internal 148 Revenue Code s. 401(a)(17)(B). For any person who first became a 149 member before the first plan year beginning on or after January 150 1, 1996, the limitation on compensation may not be less than the 151 maximum compensation amount that was allowed to be taken into 152 account under the plan in effect on July 1, 1993, which 153 limitation shall be adjusted for changes in the cost of living 154 since 1989 in the manner provided by Internal Revenue Code s. 155 401(a)(17)(1991). 156 (7)(4)“Creditable service” or “credited service” means the 157 aggregate number of years of service, and fractional parts of 158 years of service, of any firefighter, omitting intervening years 159 and fractional parts of years when such firefighter may not have 160 been employed by the municipality or special fire control 161 district, subject to the following conditions: 162 (a) ANofirefighter may notwillreceive credit for years 163 or fractional parts of years of service if he or she has 164 withdrawn his or her contributions to the fund for those years 165 or fractional parts of years of service, unless the firefighter 166 repays into the fund the amount he or she has withdrawn, plus 167 interest determined by the board. The member shall have at least 168 90 days after his or her reemployment to make repayment. 169 (b) A firefighter may voluntarily leave his or her 170 contributions in the fund fora period of5 years after leaving 171 the employ of the fire department, pending the possibility of 172 being rehired by the same department, without losing credit for 173 the time he or she has participated actively as a firefighter. 174 If the firefighter is not reemployed as a firefighter, with the 175 same department, within 5 years, his or her contributions shall 176 be returned without interest. 177 (c) Credited service under this chapter shall be provided 178 only for service as a firefighter, as defined in subsection (8),179 or for military service and does not include credit for any 180 other type of service. A municipalitymay, by local ordinance, 181 or a special fire control districtmay, by resolution, may 182 provide for the purchase of credit for military service prior to 183 employment as well as for prior service as a firefighter for 184 some other employer as long as a firefighter is not entitled to 185 receive a benefit for such prior serviceas a firefighter. For 186 purposes of determining credit for prior service as a 187 firefighter, in addition to service as a firefighter in this 188 state, credit may be given for federal, other state, or county 189 service if the prior service is recognized by the Division of 190 State Fire Marshal as provided under chapter 633, or the 191 firefighter provides proof to the board of trustees that his or 192 her service is equivalent to the service required to meet the 193 definition of a firefighter under subsection (12)(8). 194 (8)(5)“Deferred Retirement Option Plan” or “DROP” means a 195 local law plan retirement option in which a firefighter may 196 elect to participate. A firefighter may retire for all purposes 197 of the plan and defer receipt of retirement benefits into a DROP 198 account while continuing employment with his or her employer. 199 However, a firefighter who enterstheDROP and who is otherwise 200 eligible to participate mayshallnottherebybe precluded from 201 participating, or continuing to participate, in a supplemental 202 plan in existence on, or created after, March 12, 1999the203effective date of this act. 204 (9) “Defined contribution plan” means the component of a 205 local law plan to which deposits are made to provide benefits 206 for firefighters, or for firefighters and police officers if 207 both are included. Such component is an element of a local law 208 plan and exists in conjunction with the defined benefit 209 component that meets the required benefits and minimum standards 210 of this chapter. The retirement benefits of the defined 211 contribution plan shall be provided through individual member 212 accounts, in accordance with the applicable provisions of the 213 Internal Revenue Code and related regulations, and are limited 214 to the contributions made into each member’s account and the 215 actual accumulated earnings, net of expenses, earned on the 216 member’s account. 217 (10)(6)“Division” means the Division of Retirement of the 218 Department of Management Services. 219 (11)(7)“Enrolled actuary” means an actuary who is enrolled 220 under Subtitle C of Title III of the Employee Retirement Income 221 Security Act of 1974 and who is a member of the Society of 222 Actuaries or the American Academy of Actuaries. 223 (12)(8)(a) “Firefighter” means any person employed solely 224 by a constituted fire department of any municipality or special 225 fire control district who is certified as a firefighter as a 226 condition of employment in accordance with s. 633.35 and whose 227 duty it is to extinguish fires, to protect life, or to protect 228 property. The term includes all certified, supervisory, and 229 command personnel whose duties include, in whole or in part, the 230 supervision, training, guidance, and management responsibilities 231 of full-time firefighters, part-time firefighters, or auxiliary 232 firefighters but does not include part-time firefighters or 233 auxiliary firefighters. However, for purposes of this chapter 234 only, the term also includes public safety officers who are 235 responsible for performing both police and fire services, who 236 are certified as police officers or firefighters, and who are 237 certified by their employers to the Chief Financial Officer as 238 participating in this chapter before October 1, 1979. Effective 239 October 1, 1979, public safety officers who have not been 240 certified as participating in this chapter are considered police 241 officers for retirement purposes and are eligible to participate 242 in chapter 185. Any plan may provide that the fire chief has an 243 option to participate, or not,in that plan. 244 (b) “Volunteer firefighter” means any person whose name is 245 carried on the active membership roll of a constituted volunteer 246 fire department or a combination of a paid and volunteer fire 247 department of any municipality or special fire control district 248 and whose duty it is to extinguish fires, to protect life, and 249 to protect property. Compensation for services rendered by a 250 volunteer firefighter doesshallnot disqualify him or her as a 251 volunteer. A person mayshallnot be disqualified as a volunteer 252 firefighter solely because he or she has other gainful 253 employment. Any person who volunteers assistance at a fire but 254 is not an active member of a department described herein is not 255 a volunteer firefighter within the meaning of this paragraph. 256 (13)(9)“Firefighters’ Pension Trust Fund” means a trust 257 fund, by whatever name known, as provided under s. 175.041, for 258 the purpose of assisting municipalities and special fire control 259 districts in establishing and maintaining a retirement plan for 260 firefighters. 261 (14)(10)“Local law municipality” is any municipality in 262 whichthere existsa local law plan exists. 263 (15)(11)“Local law plan” means a retirementdefined264benefit pensionplan, which includes both a defined benefit plan 265 component and a defined contribution plan component, for 266 firefighters, or for firefighters or police officers if both are 267whereincluded, as described in s. 175.351, established by 268 municipal ordinance, special district resolution, or special act 269 of the Legislature, whichenactmentsets forth all plan 270 provisions. Local law plan provisions may vary from the 271 provisions of this chapter if the, provided thatrequired 272minimumbenefits and minimum standards of this chapter are met. 273 However, any such variance mustshallprovide a greater benefit 274 for firefighters. Actuarial valuations of local law plans shall 275 be conducted by an enrolled actuary as provided in s. 276 175.261(2). 277 (16)(12)“Local law special fire control district” is any 278 special fire control district in whichthere existsa local law 279 plan exists. 280 (17) “Long-term funded ratio” or “funded ratio” means the 281 ratio of the actuarial value of assets of the plan to the 282 actuarial accrued liabilities of the plan, as reported in the 283 most recent actuarial valuation of the plan, deemed to be in 284 compliance with chapter 112 by the Department of Management 285 Services. 286 (18) “Minimum benefits” means the benefits set forth in ss. 287 175.021-175.341 and ss. 175.361-175.401. 288 (19) “Minimum standards” means the standards set forth in 289 ss. 175.021-175.341 and ss. 175.361-175.401. 290 (20)(13)“Property insurance” means property insurance as 291 defined in s. 624.604 and covers real and personal property 292 within the corporate limits of aanymunicipality, or within the 293 boundaries of aanyspecial fire control district, within the 294 state. “Multiple peril” means a combination or package policy 295 that includes both property and casualty coverage for a single 296 premium. 297 (21) “Required benefits” means the base benefits of the 298 plan. For local law plans created after March 12, 1999, the 299 required benefits are the minimum benefits set forth in this 300 chapter. 301 (22)(14)“Retiree” or “retired firefighter” means a 302 firefighter who has entered retirement status. For the purposes 303 of a plan that includes a Deferred Retirement Option Plan 304 (DROP), a firefighter who enterstheDROP isshall beconsidered 305 a retiree for all purposes of the plan. However, a firefighter 306 who enterstheDROP and who is otherwise eligible to participate 307 mayshallnottherebybe precluded from participating, or 308 continuing to participate, in a supplemental plan in existence 309 on, or created after, March 12, 1999the effective date of this310act. 311 (23)(15)“Retirement” means a firefighter’s separation from 312 city or fire district employment as a firefighter with immediate 313 eligibility forreceipt ofbenefits under the plan. For purposes 314 of a plan that includes a Deferred Retirement Option Plan 315 (DROP), “retirement” means the date a firefighter entersthe316 DROP. 317 (24) “Special benefits” means benefits provided in a 318 defined contribution plan for firefighters. 319 (25)(16)“Special fire control district” means a special 320 district, as defined in s. 189.403(1), established for the 321 purposes of extinguishing fires, protecting life, and protecting 322 property within the incorporated or unincorporated portions of a 323anycounty or combination of counties, or within any combination 324 of incorporated and unincorporated portions of aanycounty or 325 combination of counties. The term does not include any dependent 326 or independent special district, as those terms are defined in 327 s. 189.403(2) and (3), respectively, the employees of which are 328 members of the Florida Retirement System pursuant to s. 329 121.051(1) or (2). 330 (26)(17)“Supplemental plan” means a plan to which deposits 331 are made to provide extra benefits for firefighters, or for 332 firefighters and police officers if both arewhereincluded 333under this chapter. Such a plan is an element of a local law 334 plan and exists in conjunction with a defined benefit component 335planthat meets the requiredminimumbenefits and minimum 336 standards of this chapter. Any supplemental plan in existence on 337 March 1, 2013, shall be deemed to be a defined contribution plan 338 in compliance with s. 175.351(8). 339 (27)(18)“Supplemental plan municipality” means aanylocal 340 law municipality in whichthere existeda supplemental plan 341 existed, of any type or nature, as of December 1, 2000. 342 Section 3. Paragraph (b) of subsection (7) of section 343 175.071, Florida Statutes, is amended to read: 344 175.071 General powers and duties of board of trustees.—For 345 any municipality, special fire control district, chapter plan, 346 local law municipality, local law special fire control district, 347 or local law plan under this chapter: 348 (7) To assist the board in meeting its responsibilities 349 under this chapter, the board, if it so elects, may: 350 (b) Employ an independent enrolled actuary, as defined in 351 s. 175.032(7), at the pension fund’s expense. 352 353 If the board chooses to use the municipality’s or special 354 district’s legal counsel or actuary, or chooses to use any of 355 the municipality’s or special district’s other professional, 356 technical, or other advisers, it must do so only under terms and 357 conditions acceptable to the board. 358 Section 4. Paragraphs (d) through (g) of subsection (1) of 359 section 175.091, Florida Statutes, are amended, and a new 360 paragraph (e) is added to that subsection, to read: 361 175.091 Creation and maintenance of fund.—For any 362 municipality, special fire control district, chapter plan, local 363 law municipality, local law special fire control district, or 364 local law plan under this chapter: 365 (1) The firefighters’ pension trust fund in each 366 municipality and in each special fire control district shall be 367 created and maintained in the following manner: 368 (d) By mandatory payment by the municipality or special 369 fire control district of a sum equal to the normal cost of and 370 the amount required to fund any actuarial deficiency shown by an 371 actuarial valuation as provided in part VII of chapter 112 after 372 taking into account the amounts described in paragraphs (b), 373 (c), (f), (g), and (h) and the amounts of the tax proceeds 374 described in paragraph (a) which must be used to fund defined 375 benefit plan benefits, except as otherwise excluded from 376 consideration in determining the mandatory payment. 377 (e) For local law plans, and in addition to the mandatory 378 payment specified in paragraph (d), by mandatory payment by the 379 municipality or special fire control district of the amount 380 specified in s. 175.351(3), if the long-term funded ratio of the 381 plan is less than 80 percent. 382 (f)(e)By all gifts, bequests, and devises when donated to 383 the fund. 384 (g)(f)By all accretions to the fund by way of interest or 385 dividends on bank deposits, or otherwise. 386 (h)(g)By all other sources or income now or hereafter 387 authorized by law for the augmentation of such firefighters’ 388 pension trust fund. 389 390 Nothing in this section shall be construed to require adjustment 391 of member contribution rates in effect on the date this act 392 becomes a law, including rates that exceed 5 percent of salary, 393 provided that such rates are at least one-half of 1 percent of 394 salary. 395 Section 5. Paragraph (a) of subsection (2) of section 396 175.162, Florida Statutes, is amended to read: 397 175.162 Requirements for retirement.—For any municipality, 398 special fire control district, chapter plan, local law 399 municipality, local law special fire control district, or local 400 law plan under this chapter, any firefighter who completes 10 or 401 more years of creditable service as a firefighter and attains 402 age 55, or completes 25 years of creditable service as a 403 firefighter and attains age 52, and who for such minimum period 404 has been a member of the firefighters’ pension trust fund 405 operating under a chapter plan or local law plan, is eligible 406 for normal retirement benefits. Normal retirement under the plan 407 is retirement from the service of the municipality or special 408 fire control district on or after the normal retirement date. In 409 such event, payment of retirement income will be governed by the 410 following provisions of this section: 411 (2)(a) The amount of monthly retirement income payable to a 412 full-time firefighter who retires on or after his or her normal 413 retirement date shall be an amount equal to the number of his or 414 her years of credited service multiplied by 2 percent of his or 415 her average final compensation as a full-time firefighter. 416However, if current state contributions pursuant to this chapter417are not adequate to fund the additional benefits to meet the418minimum requirements in this chapter, only such incremental419increases shall be required as state moneys are adequate to420provide. Such increments shall be provided as state moneys421become available.422 Section 6. Section 175.351, Florida Statutes, is amended to 423 read: 424 175.351 Municipalities and special fire control districts 425 that havehavingtheir own pension plans for firefighters.—For426any municipality, special fire control district, local law427municipality, local law special fire control district, or local428law plan under this chapter,In order for a municipality or 429municipalities andspecial fire control district that has its 430districts with theirown pension planplansfor firefighters, or 431 for firefighters and police officers if both are included, to 432 participate in the distribution of the tax fund established 433 underpursuant tos. 175.101, a local law plan and its plan 434 sponsorplansmust meet the requiredminimumbenefits and 435 minimum standards set forth in this chapter. 436 (1) If a municipality has a pension plan for firefighters, 437 ora pension planfor firefighters and police officers if both 438 are included, which in the opinion of the division meets the 439 requiredminimumbenefits and minimum standards set forth in 440 this chapter, the board of trustees of the pension plan must, as441approved by a majority of firefighters of the municipality, may:442(a)place the income from the premium tax in s. 175.101 in 443 suchpensionplan for the sole and exclusive use of its 444 firefighters, or for firefighters and police officers if both 445 are included, where it shall become an integral part of that 446pensionplan andshallbe used to fund benefits as follows: 447 (a) The base premium tax revenues must be used to fund 448 required benefits. To the extent the base premium tax revenues 449 exceed the annual actuarial cost of the plan’s required 450 benefits, such excess revenues must be used as directed in 451 paragraph (b). 452 (b) Of the additional premium tax revenues received which 453 are in excess of the amount received for the 2012 calendar year 454 and any accumulations of additional tax revenues which have not 455 been applied to fund benefits in excess of the plan’s base 456 benefits: 457 1. If the plan has a supplemental plan in effect as of 458 September 30, 2012, whereby all premium tax revenues received in 459 excess of the amount received for the 2012 calendar year are 460 scheduled to be used to fund defined contribution plan benefits 461 and: 462 a. If the plan has a long-term funded ratio of less than 70 463 percent, 50 percent of the additional premium tax revenues 464 subject to this paragraph must be used as additional 465 contributions to pay the plan’s actuarial deficiency and the 466 remainder must be used to fund special benefits; or 467 b. If the plan has a long-term funded ratio of 70 percent 468 or greater, the additional premium tax revenues subject to this 469 paragraph must be used to fund special benefits. 470 2. If subparagraph 1. is not applicable and the plan has a 471 long-term funded ratio of less than 80 percent: 472 a. Fifty percent of the additional premium tax revenues 473 subject to this paragraph must be used as additional 474 contributions to pay the plan’s actuarial deficiency; 475 b. Twenty-five percent of the additional premium tax 476 revenues subject to this paragraph must be used to fund required 477 benefits; and 478 c. The remainder must be placed in a defined contribution 479 plan to fund special benefits. 480 3. If subparagraph 1. is not applicable and the plan has a 481 long-term funded ratio of 80 percent or greater: 482 a. Fifty percent of the additional premium tax revenues 483 subject to this paragraph must be used to fund required 484 benefits; and 485 b. The remainder must be placed in a defined contribution 486 plan to fund special benefits. 487 488 Any additional premium tax revenues used to fund the plan’s 489 actuarial deficiency pursuant to this paragraph may not be 490 considered in determining the mandatory payment described in s. 491 175.091(1)(d). 492 (c) Additional premium tax revenues not described in 493 paragraph (b) must be used to fund benefits that were not 494 included in the required benefitsto pay extra benefits to the495firefighters included in that pension plan; or496(b) Place the income from the premium tax in s. 175.101 in497a separate supplemental plan to pay extra benefits to498firefighters, or to firefighters and police officers if499included, participating in such separate supplemental plan. 500 (2) Insurance premium tax revenues may not be used to fund 501 benefits provided in a defined benefit plan which were not 502 provided by the plan as of March 1, 2013; however, for a local 503 law plan created after March 1, 2013, up to 50 percent of the 504 insurance premium tax revenues may be used to fund defined 505 benefit plan component benefits and the remainder must be used 506 to fund defined contribution plan component benefits. 507 (3) If a plan offers benefits in excess of its required 508 benefits, such benefits may be reduced if the plan continues to 509 meet the required benefits of the plan and the minimum standards 510 set forth in this chapter. The amount of insurance premium tax 511 revenues previously used to fund benefits in excess of the 512 plan’s required benefits before the reduction must be used as 513 provided in subsection (1)(b). Twenty-five percent of the amount 514 of any mandatory contribution paid by the municipality or 515 special fire control district which was previously used to fund 516 benefits above the level of required benefits provided before 517 the reduction must be used as additional contributions as 518 specified in s. 175.091 to fund the plan’s actuarial deficiency. 519 (4)(2)The premium tax provided by this chapter shallin520all casesbe used in its entirety to provide retirementextra521 benefits to firefighters, or to firefighters and police officers 522 if both are included.However, local law plans in effect on523October 1, 1998, must comply with the minimum benefit provisions524of this chapter only to the extent that additional premium tax525revenues become available to incrementally fund the cost of such526compliance as provided in s.175.162(2)(a). If a plan is in527compliance with such minimum benefit provisions, as subsequent528additional premium tax revenues become available, they must be529used to provide extra benefits.Local law plans created by 530 special act before May 27, 1939, are deemed to comply with this 531 chapter.For the purpose of this chapter, the term:532(a) “Additional premium tax revenues” means revenues533received by a municipality or special fire control district534pursuant to s.175.121which exceed that amount received for535calendar year 1997.536(b) “Extra benefits” means benefits in addition to or537greater than those provided to general employees of the538municipality and in addition to those in existence for539firefighters on March 12, 1999.540 (5)(3)A retirement plan or amendment to a retirement plan 541 may not be proposed for adoption unless the proposed plan or 542 amendment contains an actuarial estimate of the costs involved. 543 Such proposed plan or proposed plan change may not be adopted 544 without the approval of the municipality, special fire control 545 district, or, where permitted, the Legislature. Copies of the 546 proposed plan or proposed plan change and the actuarial impact 547 statement of the proposed plan or proposed plan change shall be 548 furnished to the division before the last public hearing 549 thereon. Such statement must also indicate whether the proposed 550 plan or proposed plan change is in compliance with s. 14, Art. X 551 of the State Constitution and those provisions of part VII of 552 chapter 112 which are not expressly provided in this chapter. 553 Notwithstanding any other provision, only those local law plans 554 created by special act of legislation before May 27, 1939, are 555 deemed to meet the minimum benefits and minimum standards only 556 in this chapter. 557 (6)(4)Notwithstanding any other provision, with respect to 558 any supplemental plan municipality: 559 (a) A local law plan and a supplemental plan may continue 560 to use their definition of compensation or salary in existence 561 on March 12, 1999. 562 (b) Section 175.061(1)(b) does not apply, and a local law 563 plan and a supplemental plan shall continue to be administered 564 by a board or boards of trustees numbered, constituted, and 565 selected as the board or boards were numbered, constituted, and 566 selected on December 1, 2000. 567(c) The election set forth in paragraph (1)(b) is deemed to568have been made.569 (7)(5)The retirement plan setting forth the benefits and 570 the trust agreement, if any, covering the duties and 571 responsibilities of the trustees and the regulations of the 572 investment of funds must be in writing, and copies made 573 available to the participants and to the general public. 574 (8) In addition to the defined benefit component of the 575 local law plan, each plan sponsor must have a defined 576 contribution plan component within the local law plan by October 577 1, 2013, or upon the creation date of a new participating plan. 578 However, the plan sponsor of any plan established by special act 579 of the Legislature has until July 1, 2014, to create a defined 580 contribution component within the plan. 581 (9) Notwithstanding any other provision of this chapter, a 582 municipality or special fire control district that has 583 implemented or proposed changes to a local law plan based on the 584 municipality’s or district’s reliance on an interpretation of 585 this chapter by the department on or after August 14, 2012, and 586 before February 1, 2013, may continue the implemented changes or 587 continue to implement proposed changes. Such reliance must be 588 evidenced by a written collective bargaining proposal, 589 collective bargaining agreement, or formal correspondence 590 between the municipality or district and the department which 591 describes the specific changes to the local law plan, with the 592 initial proposal, agreement, or correspondence from the 593 municipality or district dated prior to February 1, 2013. The 594 changes to the local law plan that are otherwise contrary to the 595 provisions of this chapter may continue in effect until the 596 earlier of October 1, 2016, or the effective date of a 597 collective bargaining agreement that is contrary to the changes 598 to the local law plan. 599 Section 7. Subsection (2) of section 185.01, Florida 600 Statutes, is amended to read: 601 185.01 Legislative declaration.— 602 (2) This chapter hereby establishes, for all municipal 603 pension plansnow or hereinafterprovided for under this 604 chapter, including chapter plans and local law plans, required 605minimumbenefits and minimum standards for the operation and 606 funding of such plans, hereinafter referred to as municipal 607 police officers’ retirement trust funds, which must be met as a 608 condition precedent to the plan or plan sponsor receiving a 609 distribution of insurance premium tax revenues under s. 185.10. 610 The requiredminimumbenefits and minimum standards for each 611 plan as set forth in this chapter may not be diminished by local 612 ordinance or by special act of the Legislature, ornor may the613minimum benefits or minimum standards bereduced or offset by 614 any other local, state, or federal plan that may include police 615 officers in its operation, except as provided under s. 112.65. 616 Section 8. Section 185.02, Florida Statutes, is amended to 617 read: 618 185.02 Definitions.—For any municipality, chapter plan, 619 local law municipality, or local law plan under this chapter, 620 the termfollowing words and phrases as used in this chapter621shall have the following meanings, unless a different meaning is622plainly required by the context: 623 (1) “Additional premium tax revenues” means revenues 624 received by a municipality pursuant to s. 185.10 which exceed 625 base premium tax revenues. 626 (2)(1)“Average final compensation” means one-twelfth of 627 the average annual compensation of the 5 best years of the last 628 10 years of creditable service prior to retirement, termination, 629 or death. 630 (3) “Base benefits” means the level of benefits in 631 existence for police officers on March 12, 1999. 632 (4) “Base premium tax revenues” means revenues received by 633 a municipality pursuant to s. 185.10 equal to the amount of such 634 revenues received for calendar year 1997. 635 (5)(2)“Casualty insurance” means automobile public 636 liability and property damage insurance to be applied at the 637 place of residence of the owner, or if the subject is a 638 commercial vehicle, to be applied at the place of business of 639 the owner; automobile collision insurance; fidelity bonds; 640 burglary and theft insurance; and plate glass insurance. 641 “Multiple peril” means a combination or package policy that 642 includes both property coverage and casualty coverage for a 643 single premium. 644 (6)(3)“Chapter plan” means a separate defined benefit 645 pension plan for police officers which incorporates by reference 646 the provisions of this chapter and has been adopted by the 647 governing body of a municipality as provided in s. 185.08. 648 Except as may be specifically authorized in this chapter, the 649 provisions of a chapter plan may not differ from the plan 650 provisions set forth in ss. 185.01-185.341 and 185.37-185.39. 651 Actuarial valuations of chapter plans shall be conducted by the 652 division as provided by s. 185.221(1)(b). 653 (7)(4)“Compensation” or “salary” means, for 654 noncollectively bargained service earned before July 1, 2011, or 655 for service earned under collective bargaining agreements in 656 place before July 1, 2011, the total cash remuneration including 657 “overtime” paid by the primary employer to a police officer for 658 services rendered, but not including any payments for extra duty 659 or special detail work performed on behalf of a second party 660 employer.A local law plan may limit the amount of overtime661payments which can be used for retirement benefit calculation662purposes; however, such overtime limit may not be less than 300663hours per officer per calendar year.For noncollectively 664 bargained service earned on or after July 1, 2011, or for 665 service earned under collective bargaining agreements entered 666 into on or after July 1, 2011, the term has the same meaning 667 except that when calculating retirement benefits, up to 300 668 hours per year in overtime compensation may be included as 669 specified in the plan or collective bargaining agreement, but 670 payments for accrued unused sick or annual leave may not be 671 included. 672 (a) Any retirement trust fund or plan that meets the 673 requirements of this chapter does not, solely by virtue of this 674 subsection, reduce or diminish the monthly retirement income 675 otherwise payable to each police officer covered by the 676 retirement trust fund or plan. 677 (b) The member’s compensation or salary contributed as 678 employee-elective salary reductions or deferrals to any salary 679 reduction, deferred compensation, or tax-sheltered annuity 680 program authorized under the Internal Revenue Code shall be 681 deemed to be the compensation or salary the member would receive 682 if he or she were not participating in such program and shall be 683 treated as compensation for retirement purposes under this 684 chapter. 685 (c) For any person who first becomes a member in any plan 686 year beginning on or after January 1, 1996, compensation for 687 that plan year may not include any amounts in excess of the 688 Internal Revenue Code s. 401(a)(17) limitation, as amended by 689 the Omnibus Budget Reconciliation Act of 1993, which limitation 690 of $150,000 shall be adjusted as required by federal law for 691 qualified government plans andshall befurther adjusted for 692 changes in the cost of living in the manner provided by Internal 693 Revenue Code s. 401(a)(17)(B). For any person who first became a 694 member before the first plan year beginning on or after January 695 1, 1996, the limitation on compensation may not be less than the 696 maximum compensation amount that was allowed to be taken into 697 account under the planasin effect on July 1, 1993, which 698 limitation shall be adjusted for changes in the cost of living 699 since 1989 in the manner provided by Internal Revenue Code s. 700 401(a)(17)(1991). 701 (8)(5)“Creditable service” or “credited service” means the 702 aggregate number of years of service and fractional parts of 703 years of service of any police officer, omitting intervening 704 years and fractional parts of years when such police officer may 705 not have been employed by the municipality subject to the 706 following conditions: 707 (a) ANopolice officer may notwillreceive credit for 708 years or fractional parts of years of service if he or she has 709 withdrawn his or her contributions to the fund for those years 710 or fractional parts of years of service, unless the police 711 officer repays into the fund the amount he or she has withdrawn, 712 plus interest as determined by the board. The member hasshall713haveat least 90 days after his or her reemployment to make 714 repayment. 715 (b) A police officer may voluntarily leave his or her 716 contributions in the fund fora period of5 years after leaving 717 the employ of the police department, pending the possibility of 718 his or her being rehired by the same department, without losing 719 credit for the time he or she has participated actively as a 720 police officer. If he or she is not reemployed as a police 721 officer with the same department within 5 years, his or her 722 contributions shall be returned to him or her without interest. 723 (c) Credited service under this chapter shall be provided 724 only for service as a police officer, as defined in subsection725(11),or for military service and may not include credit for any 726 other type of service. A municipalitymay, by local ordinance, 727 may provide for the purchase of credit for military service 728 occurring before employment as well as prior service as a police 729 officer for some other employer as long as the police officer is 730 not entitled to receive a benefit for suchotherprior service 731as a police officer. For purposes of determining credit for 732 prior service, in addition to service as a police officer in 733 this state, credit may be given for federal, other state, or 734 county service as long as such service is recognized by the 735 Criminal Justice Standards and Training Commission within the 736 Department of Law Enforcement as provided under chapter 943 or 737 the police officer provides proof to the board of trustees that 738 such service is equivalent to the service required to meet the 739 definition of a police officer under subsection (16)(11). 740 (d) In determining the creditable service of aanypolice 741 officer, credit for up to 5 years of the time spent in the 742 military service of the Armed Forces of the United States shall 743 be added to the years of actual service, if: 744 1. The police officer is in the active employ of the 745 municipality beforeprior tosuch service and leaves a position, 746 other than a temporary position, for the purpose of voluntary or 747 involuntary service in the Armed Forces of the United States. 748 2. The police officer is entitled to reemployment underthe749provisions ofthe Uniformed Services Employment and Reemployment 750 Rights Act. 751 3. The police officer returns to his or her employment as a 752 police officer of the municipality within 1 year afterfromthe 753 date of his or her release from such active service. 754 (9)(6)“Deferred Retirement Option Plan” or “DROP” means a 755 local law plan retirement option in which a police officer may 756 elect to participate. A police officer may retire for all 757 purposes of the plan and defer receipt of retirement benefits 758 into a DROP account while continuing employment with his or her 759 employer. However, a police officer who enters the DROP and who 760 is otherwise eligible to participate mayshallnottherebybe 761 precluded from participating, or continuing to participate, in a 762 supplemental plan in existence on, or created after, March 12, 763 1999the effective date of this act. 764 (10) “Defined contribution plan” means the component of a 765 local law plan to which deposits are made to provide benefits 766 for police officers, or for police officers and firefighters if 767 both are included. Such component is an element of a local law 768 plan and exists in conjunction with the defined benefit 769 component that meets the required benefits and minimum standards 770 of this chapter. The retirement benefits of the defined 771 contribution plan shall be provided through individual member 772 accounts, in accordance with the applicable provisions of the 773 Internal Revenue Code and related regulations, and are limited 774 to the contributions made into each member’s account and the 775 actual accumulated earnings, net of expenses, earned on the 776 member’s account. 777 (11)(7)“Division” means the Division of Retirement of the 778 Department of Management Services. 779 (12)(8)“Enrolled actuary” means an actuary who is enrolled 780 under Subtitle C of Title III of the Employee Retirement Income 781 Security Act of 1974 and who is a member of the Society of 782 Actuaries or the American Academy of Actuaries. 783 (13)(9)“Local law municipality” is any municipality in 784 whichthere existsa local law plan exists. 785 (14)(10)“Local law plan” means a retirementdefined786benefit pensionplan, which includes both a defined benefit plan 787 component and a defined contribution plan component, for police 788 officers, or for police officers and firefighters if both are,789whereincluded, as described in s. 185.35, established by 790 municipal ordinance or special act of the Legislature, which 791enactmentsets forth all plan provisions. Local law plan 792 provisions may vary from the provisions of this chapter if the,793provided thatrequiredminimumbenefits and minimum standards of 794 this chapter are met. However, any such variance mustshall795 provide a greater benefit for police officers. Actuarial 796 valuations of local law plans shall be conducted by an enrolled 797 actuary as provided in s. 185.221(2)(b). 798 (15) “Long-term funded ratio” or “funded ratio” means the 799 ratio of the actuarial value of assets of the plan to the 800 actuarial accrued liabilities of the plan, as reported in the 801 most recent actuarial valuation of the plan, deemed to be in 802 compliance with chapter 112 by the Department of Management 803 Services. 804 (16) “Minimum benefits” means the benefits set forth in ss. 805 185.01-185.341 and ss. 185.37-185.50. 806 (17) “Minimum standards” means the standards set forth in 807 ss. 185.01-185.341 and ss. 185.37-185.50. 808 (18)(11)“Police officer” means any person who is elected, 809 appointed, or employed full time by aanymunicipality, who is 810 certified or required to be certified as a law enforcement 811 officer in compliance with s. 943.1395, who is vested with 812 authority to bear arms and make arrests, and whose primary 813 responsibility is the prevention and detection of crime or the 814 enforcement of the penal, criminal, traffic, or highway laws of 815 the state. The termThis definitionincludes all certified 816 supervisory and command personnel whose duties include, in whole 817 or in part, the supervision, training, guidance, and management 818 responsibilities of full-time law enforcement officers, part 819 time law enforcement officers, or auxiliary law enforcement 820 officers, but does not include part-time law enforcement 821 officers or auxiliary law enforcement officers as those terms 822the sameare defined in s. 943.10(6) and (8), respectively. For 823 the purposes of this chapter only, the term also includes 824“police officer” also shall includea public safety officer who 825 is responsible for performing both police and fire services. Any 826 plan may provide that the police chief shall have an option to 827 participate, or not,in that plan. 828 (19)(12)“Police Officers’ Retirement Trust Fund” means a 829 trust fund, by whatever name known, as provided under s. 185.03 830 for the purpose of assisting municipalities in establishing and 831 maintaining a retirement plan for police officers. 832 (20) “Required benefits” means the base benefits of the 833 plan. For local law plans created after March 12, 1999, the 834 required benefits are the minimum benefits set forth in this 835 chapter. 836 (21)(13)“Retiree” or “retired police officer” means a 837 police officer who has entered retirement status. For the 838 purposes of a plan that includes a Deferred Retirement Option 839 Plan (DROP), a police officer who enterstheDROP isshall be840 considered a retiree for all purposes of the plan. However, a 841 police officer who enterstheDROP and who is otherwise eligible 842 to participate mayshallnottherebybe precluded from 843 participating, or continuing to participate, in a supplemental 844 plan in existence on, or created after, March 12, 1999the845effective date of this act. 846 (22)(14)“Retirement” means a police officer’s separation 847 from city employment as a police officer with immediate 848 eligibility forreceipt ofbenefits under the plan. For purposes 849 of a plan that includes a Deferred Retirement Option Plan 850 (DROP), “retirement” means the date a police officer entersthe851 DROP. 852 (23) “Special benefits” means benefits provided in a 853 defined contribution plan for police officers. 854 (24)(15)“Supplemental plan” means a plan to which deposits 855 of the premium tax moneys as provided in s. 185.08 are made to 856 provide extra benefits to police officers, or police officers 857 and firefighters if both arewhereincluded, under this chapter. 858 Such a plan is an element of a local law plan and exists in 859 conjunction with a defined benefit componentplanthat meets the 860 requiredminimumbenefits and minimum standards of this chapter. 861 Any supplemental plan in existence on March 1, 2013, shall be 862 deemed to be defined contribution plan in compliance with s. 863 185.35(8). 864 (25)(16)“Supplemental plan municipality” means aanylocal 865 law municipality in whichthere existeda supplemental plan 866 existed as of December 1, 2000. 867 Section 9. Paragraph (b) of subsection (6) of section 868 185.06, Florida Statutes, is amended to read: 869 185.06 General powers and duties of board of trustees.—For 870 any municipality, chapter plan, local law municipality, or local 871 law plan under this chapter: 872 (6) To assist the board in meeting its responsibilities 873 under this chapter, the board, if it so elects, may: 874 (b) Employ an independent enrolled actuary, as defined in 875 s. 185.02(8), at the pension fund’s expense. 876 877 If the board chooses to use the municipality’s or special 878 district’s legal counsel or actuary, or chooses to use any of 879 the municipality’s other professional, technical, or other 880 advisers, it must do so only under terms and conditions 881 acceptable to the board. 882 Section 10. Paragraphs (d) through (g) of subsection (1) of 883 section 185.07, Florida Statutes, are amended, and a new 884 paragraph (e) is added to that subsection, to read: 885 185.07 Creation and maintenance of fund.—For any 886 municipality, chapter plan, local law municipality, or local law 887 plan under this chapter: 888 (1) The municipal police officers’ retirement trust fund in 889 each municipality described in s. 185.03 shall be created and 890 maintained in the following manner: 891 (d) By payment by the municipality or other sources of a 892 sum equal to the normal cost and the amount required to fund any 893 actuarial deficiency shown by an actuarial valuation as provided 894 in part VII of chapter 112 after taking into account the amounts 895 described in paragraphs (b), (c), (f), (g), and (h) and the 896 amounts of the tax proceeds described in paragraph (a) which 897 must be used to fund defined benefit plan benefits, except as 898 otherwise excluded from consideration in determining the 899 mandatory payment. 900 (e) For local law plans, and in addition to the mandatory 901 payment described in paragraph (d), by mandatory payment by the 902 municipality of the amount specified in s. 185.35(3), if the 903 long-term funded ratio of the plan is less than 80 percent. 904 (f)(e)By all gifts, bequests and devises when donated to 905 the fund. 906 (g)(f)By all accretions to the fund by way of interest or 907 dividends on bank deposits or otherwise. 908 (h)(g)By all other sources of income now or hereafter 909 authorized by law for the augmentation of such municipal police 910 officers’ retirement trust fund. 911 912 Nothing in this section shall be construed to require adjustment 913 of member contribution rates in effect on the date this act 914 becomes a law, including rates that exceed 5 percent of salary, 915 provided that such rates are at least one-half of 1 percent of 916 salary. 917 Section 11. Subsection (2) of section 185.16, Florida 918 Statutes, is amended to read: 919 185.16 Requirements for retirement.—For any municipality, 920 chapter plan, local law municipality, or local law plan under 921 this chapter, any police officer who completes 10 or more years 922 of creditable service as a police officer and attains age 55, or 923 completes 25 years of creditable service as a police officer and 924 attains age 52, and for such period has been a member of the 925 retirement fund is eligible for normal retirement benefits. 926 Normal retirement under the plan is retirement from the service 927 of the city on or after the normal retirement date. In such 928 event, for chapter plans and local law plans, payment of 929 retirement income will be governed by the following provisions 930 of this section: 931 (2) The amount of the monthly retirement income payable to 932 a police officer who retires on or after his or her normal 933 retirement date shall be an amount equal to the number of the 934 police officer’s years of credited service multiplied by 2 935 percent of his or her average final compensation.However, if936current state contributions pursuant to this chapter are not937adequate to fund the additional benefits to meet the minimum938requirements in this chapter, only increment increases shall be939required as state moneys are adequate to provide. Such940increments shall be provided as state moneys become available.941 Section 12. Section 185.35, Florida Statutes, is amended to 942 read: 943 185.35 Municipalities that havehavingtheir own retirement 944pensionplans for police officers.—For any municipality, chapter945plan, local law municipality, or local law plan under this946chapter,In order for a municipality that hasmunicipalities947withitstheirown retirement planpension plansfor police 948 officers, or for police officers and firefighters if both are 949 included, to participate in the distribution of the tax fund 950 established underpursuant tos. 185.08, a local law plan and 951 its plan sponsorplansmust meet the requiredminimumbenefits 952 and minimum standards set forth in this chapter: 953 (1) If a municipality has a retirementpensionplan for 954 police officers, or for police officers and firefighters if both 955 are included, which, in the opinion of the division, meets the 956 requiredminimumbenefits and minimum standards set forth in 957 this chapter, the board of trustees of the pension plan must, as958approved by a majority of police officers of the municipality,959may:960(a)place the income from the premium tax in s. 185.08 in 961 suchpensionplan for the sole and exclusive use of its police 962 officers, or its police officers and firefighters if both are 963 included, where it shall become an integral part of thatpension964 plan andshallbe used to fund benefits as follows: 965 (a) The base premium tax revenues must be used to fund 966 required benefits. To the extent the base premium tax revenues 967 exceed the annual actuarial cost of the plan’s required 968 benefits, such excess revenues must be used as directed in 969 paragraph (b). 970 (b) Of the additional premium tax revenues received which 971 are in excess of the amount received for the 2012 calendar year 972 and any accumulations of additional premium tax revenues which 973 have not been applied to fund benefits in excess of the plan’s 974 base benefits: 975 1. If the plan has a supplemental plan in effect as of 976 September 30, 2012, whereby all premium tax revenues received in 977 excess of the amount received for the 2012 calendar year are 978 scheduled to be used to fund defined contribution plan benefits 979 and: 980 a. If the plan has a long-term funded ratio of less than 70 981 percent, 50 percent of the additional premium tax revenues 982 subject to this paragraph must be used as additional 983 contributions to pay the plan’s actuarial deficiency and the 984 remainder must be used to fund special benefits; or 985 b. If the plan has a long-term funded ratio of 70 percent 986 or greater, the additional premium tax revenues subject to this 987 paragraph must be used to fund special benefits. 988 2. If subparagraph 1. is not applicable and the plan has a 989 long-term funded ratio of less than 80 percent: 990 a. Fifty percent of the additional premium tax revenues 991 subject to this paragraph must be used as additional 992 contributions to pay the plan’s actuarial deficiency; 993 b. Twenty-five percent of the additional premium tax 994 revenues subject to this paragraph must be used to fund required 995 benefits; and 996 c. The remainder must be placed in a defined contribution 997 plan to fund special benefits. 998 3. If subparagraph 1. is not applicable and the plan has a 999 long-term funded ratio of 80 percent or greater: 1000 a. Fifty percent of the additional premium tax revenues 1001 subject to this paragraph must be used to fund required 1002 benefits; and 1003 b. The remainder must be placed in a defined contribution 1004 plan to fund special benefits. 1005 1006 Any additional premium tax revenues used to fund the plan’s 1007 actuarial deficiency pursuant to this paragraph may not be 1008 considered in determining the mandatory payment described in s. 1009 185.07(1)(d). 1010 (c) Additional premium tax revenues not described in 1011 paragraph (b) must be used to fund benefits that were not 1012 included in the required benefitspay extra benefits to the1013policeofficers included in that pension plan; or1014(b) May place the income from the premium tax in s. 185.081015in a separate supplemental plan to pay extra benefits to the1016police officers, or police officers and firefighters if1017included, participating in such separate supplemental plan. 1018 (2) Insurance premium tax revenues may not be used to fund 1019 benefits provided in a defined benefit plan which were not 1020 provided by the plan as of March 1, 2013; however, for a local 1021 law plan created after March 1, 2013, up to 50 percent of the 1022 insurance premium tax revenues may be used to fund defined 1023 benefit plan component benefits and the remainder must be used 1024 to fund defined contribution plan component benefits. 1025 (3) If a plan offers benefits in excess of its required 1026 benefits, such benefits may be reduced if the plan continues to 1027 meet the required benefits of the plan and the minimum standards 1028 set forth in this chapter. The amount of insurance premium tax 1029 revenues previously used to fund benefits in excess of the 1030 plan’s required benefits before the reduction must be used as 1031 provided in subsection (1)(b). Twenty-five percent of the amount 1032 of any mandatory contribution paid by the municipality which was 1033 previously used to fund benefits above the level of required 1034 benefits provided before the reduction must be used as 1035 additional contributions as specified in s. 185.07 to fund the 1036 plan’s actuarial deficiency. 1037 (4)(2)The premium tax provided by this chapter shallin1038all casesbe used in its entirety to provide retirementextra1039 benefits to police officers, or to police officers and 1040 firefighters if both are included.However, local law plans in1041effect on October 1, 1998, must comply with the minimum benefit1042provisions of this chapter only to the extent that additional1043premium tax revenues become available to incrementally fund the1044cost of such compliance as provided in s.185.16(2). If a plan1045is in compliance with such minimum benefit provisions, as1046subsequent additional tax revenues become available, they shall1047be used to provide extra benefits.Local law plans created by 1048 special act before May 27, 1939, shall be deemed to comply with 1049 this chapter.For the purpose of this chapter, the term:1050(a) “Additional premium tax revenues” means revenues1051received by a municipality pursuant to s.185.10which exceed1052the amount received for calendar year 1997.1053(b) “Extra benefits” means benefits in addition to or1054greater than those provided to general employees of the1055municipality and in addition to those in existence for police1056officers on March 12, 1999.1057 (5)(3)A retirement plan or amendment to a retirement plan 1058 may not be proposed for adoption unless the proposed plan or 1059 amendment contains an actuarial estimate of the costs involved. 1060 Such proposed plan or proposed plan change may not be adopted 1061 without the approval of the municipality or, where permitted, 1062 the Legislature. Copies of the proposed plan or proposed plan 1063 change and the actuarial impact statement of the proposed plan 1064 or proposed plan change shall be furnished to the division 1065 before the last public hearing thereon. Such statement must also 1066 indicate whether the proposed plan or proposed plan change is in 1067 compliance with s. 14, Art. X of the State Constitution and 1068 those provisions of part VII of chapter 112 which are not 1069 expressly provided in this chapter. Notwithstanding any other 1070 provision, only those local law plans created by special act of 1071 legislation before May 27, 1939, are deemed to meet the minimum 1072 benefits and minimum standards only in this chapter. 1073 (6)(4)Notwithstanding any other provision, with respect to 1074 any supplemental plan municipality: 1075 (a) Section 185.02(7)(a)185.02(4)(a)does not apply, and a 1076 local law plan and a supplemental plan may continue to use their 1077 definition of compensation or salary in existence on March 12, 1078 1999. 1079 (b) A local law plan and a supplemental plan must continue 1080 to be administered by a board or boards of trustees numbered, 1081 constituted, and selected as the board or boards were numbered, 1082 constituted, and selected on December 1, 2000. 1083(c) The election set forth in paragraph (1)(b) is deemed to1084have been made.1085 (7)(5)The retirement plan setting forth the benefits and 1086 the trust agreement, if any, covering the duties and 1087 responsibilities of the trustees and the regulations of the 1088 investment of funds must be in writing and copies made available 1089 to the participants and to the general public. 1090 (8) In addition to the defined benefit component of the 1091 local law plan, each plan sponsor must have a defined 1092 contribution plan component within the local law plan by October 1093 1, 2013, or upon the creation date of a new participating plan. 1094 However, the plan sponsor of any plan established by special act 1095 of the Legislature has until July 1, 2014, to create a defined 1096 contribution component within the plan. 1097 (9) Notwithstanding any other provision of this chapter, a 1098 municipality that has implemented or proposed changes to a local 1099 law plan based on the municipality’s reliance on an 1100 interpretation of this chapter by the department on or after 1101 August 14, 2012 and before February 1, 2013, may continue the 1102 implemented changes or continue to implement proposed changes. 1103 Such reliance must be evidenced by a written collective 1104 bargaining proposal, collective bargaining agreement, or formal 1105 correspondence between the municipality and the department which 1106 describes the specific changes to the local law plan, with the 1107 initial proposal, agreement, or correspondence from the 1108 municipality dated prior to February 1, 2013. The changes to the 1109 local law plan which are otherwise contrary to the provisions of 1110 this chapter may continue in effect until the earlier of October 1111 1, 2016, or the effective date of a collective bargaining 1112 agreement that is contrary to the changes to the local law plan. 1113 Section 13. The Legislature finds that a proper and 1114 legitimate state purpose is served when employees and retirees 1115 of the state and its political subdivisions, and the dependents, 1116 survivors, and beneficiaries of such employees and retirees, are 1117 extended the basic protections afforded by governmental 1118 retirement systems that provide fair and adequate benefits and 1119 that are managed, administered, and funded in an actuarially 1120 sound manner as required by s. 14, Article X of the State 1121 Constitution and part VII of chapter 112, Florida Statutes. 1122 Therefore, the Legislature determines and declares that this act 1123 fulfills an important state interest. 1124 Section 14. This act shall take effect July 1, 2013.