Bill Text: FL S1128 | 2011 | Regular Session | Enrolled
Bill Title: Public Retirement Plans
Spectrum:
Status: (Engrossed - Dead) 2011-05-04 - Ordered enrolled -SJ 851 [S1128 Detail]
Download: Florida-2011-S1128-Enrolled.html
ENROLLED 2011 Legislature CS for CS for SB 1128, 1st Engrossed 20111128er 1 2 An act relating to public retirement plans; amending 3 s. 112.63, F.S.; requiring plans to regularly disclose 4 the plan’s accrued benefits; amending s. 112.66, F.S.; 5 providing for the calculation of local government 6 retirement benefits after a certain date; providing a 7 prohibition on the use of certain compensation for 8 calculating retirement benefits; prohibiting the use 9 of surpluses for expenses outside the plan; 10 prohibiting a reduction in certain contributions to a 11 plan; amending s. 112.665, F.S.; requiring the 12 Department of Management Services to provide a fact 13 sheet on each local plan; amending s. 175.032, F.S.; 14 revising the definition of the term “compensation” or 15 “salary” for purposes of firefighters’ pensions; 16 providing a prohibition on the use of certain 17 compensation; amending s. 175.061, F.S.; authorizing a 18 municipality to change the municipality’s membership 19 on the board of trustees operating its firefighters’ 20 pension plan under certain circumstances; amending s. 21 175.091, F.S.; deleting a limitation on the 22 justification for approving an increase in member 23 contributions; amending s. 175.351, F.S.; revising a 24 date relating to local law plans; conforming a cross 25 reference; amending s. 185.02, F.S.; revising the 26 definition of the terms “compensation” and “salary” 27 for purposes of police officers’ pensions; providing a 28 prohibition on the use of certain compensation for 29 calculating retirement benefits; amending s. 185.05, 30 F.S.; authorizing a municipality to change the 31 municipality’s membership on the board of trustees 32 operating its police officers’ pension plan under 33 certain circumstances; amending s. 185.07, F.S.; 34 deleting a limitation on the justification for 35 approving an increase in member contributions; 36 amending s. 185.35, F.S.; revising a date relating to 37 local law plans; directing the Department of Financial 38 Services to develop a plan for rating the financial 39 strength of local government defined benefit plans; 40 specifying factors for consideration; requiring 41 certain entities to cooperate in providing data for 42 the plan; requiring the department to submit the plan 43 to the Governor, Chief Financial Officer, and 44 Legislature by a certain date; creating the Task Force 45 on Public Employee Disability Presumptions; providing 46 for appointment and membership; specifying the issues 47 for the task force to address; providing for a report 48 to be submitted to the Governor, Chief Financial 49 Officer, and Legislature by a certain date; providing 50 for future dissolution; providing a declaration of 51 important state interest; providing an effective date. 52 53 Be It Enacted by the Legislature of the State of Florida: 54 55 Section 1. Present paragraph (f) of subsection (1) of 56 section 112.63, Florida Statutes, is redesignated as paragraph 57 (g), and a new paragraph (f) is added to that subsection, to 58 read: 59 112.63 Actuarial reports and statements of actuarial 60 impact; review.— 61 (1) Each retirement system or plan subject to the 62 provisions of this act shall have regularly scheduled actuarial 63 reports prepared and certified by an enrolled actuary. The 64 actuarial report shall consist of, but shall not be limited to, 65 the following: 66 (f) A disclosure of the present value of the plan’s accrued 67 vested, nonvested, and total benefits, as adopted by the 68 Financial Accounting Standards Board, using the Florida 69 Retirement System’s assumed rate of return, in order to promote 70 the comparability of actuarial data between local plans. 71 72 The actuarial cost methods utilized for establishing the amount 73 of the annual actuarial normal cost to support the promised 74 benefits shall only be those methods approved in the Employee 75 Retirement Income Security Act of 1974 and as permitted under 76 regulations prescribed by the Secretary of the Treasury. 77 Section 2. Subsections (11) through (13) are added to 78 section 112.66, Florida Statutes, to read: 79 112.66 General provisions.—The following general provisions 80 relating to the operation and administration of any retirement 81 system or plan covered by this part shall be applicable: 82 (11) For noncollectively bargained service earned on or 83 after July 1, 2011, or for service earned under collective 84 bargaining agreements entered into on or after July 1, 2011, 85 when calculating retirement benefits, a defined benefit pension 86 system or plan sponsored by a local government may include up to 87 300 hours per year of overtime compensation as specified in the 88 plan or collective bargaining agreement, but may not include any 89 payments for accrued unused sick leave or annual leave. For 90 those members whose terms and conditions of employment are 91 collectively bargained, this subsection is effective for the 92 first agreement entered into on or after July 1, 2011. This 93 subsection does not apply to state-administered retirement 94 systems or plans. 95 (12) An actuarial or cash surplus in any system or plan may 96 not be used for any expenses outside the plan. 97 (13) A local government sponsor of a retirement system or 98 plan may not reduce contributions required to fund the normal 99 cost. This subsection does not apply to state-administered 100 retirement systems or plans. 101 Section 3. Present paragraphs (e) and (f) of subsection (1) 102 of section 112.665, Florida Statutes, are redesignated as 103 paragraphs (f) and (g), respectively, and a new paragraph (e) is 104 added to that subsection, to read: 105 112.665 Duties of Department of Management Services.— 106 (1) The Department of Management Services shall: 107 (e) Provide a fact sheet for each participating local 108 government defined benefit pension plan summarizing the plan’s 109 actuarial status. The fact sheet should provide a summary of the 110 plan’s most current actuarial data, minimum funding requirements 111 as a percentage of pay, and a 5-year history of funded ratios. 112 The fact sheet must include a brief explanation of each element 113 in order to maximize the transparency of the local government 114 plans. These documents shall be posted on the department’s 115 website. Plan sponsors that have websites must provide a link to 116 the department’s website. 117 Section 4. Subsection (3) of section 175.032, Florida 118 Statutes, is amended to read: 119 175.032 Definitions.—For any municipality, special fire 120 control district, chapter plan, local law municipality, local 121 law special fire control district, or local law plan under this 122 chapter, the following words and phrases have the following 123 meanings: 124 (3) “Compensation” or “salary” means, for noncollectively 125 bargained service earned before July 1, 2011, or for service 126 earned under collective bargaining agreements in place before 127 July 1, 2011, the fixed monthly remuneration paid a firefighter. 128 If; where, as in the case of a volunteer firefighter,129 remuneration is based on actual services rendered, as in the 130 case of a volunteer firefighter, the term means the total cash 131 remuneration received yearly for such services, prorated on a 132 monthly basis. For noncollectively bargained service earned on 133 or after July 1, 2011, or for service earned under collective 134 bargaining agreements entered into on or after July 1, 2011, the 135 term has the same meaning except that when calculating 136 retirement benefits, up to 300 hours per year in overtime 137 compensation may be included as specified in the plan or 138 collective bargaining agreement, but payments for accrued unused 139 sick or annual leave may not be included. 140(a) A retirement trust fund or plan may use a definition of141salary other than the definition in this subsection but only if142the monthly retirement income payable to each firefighter143covered by the retirement trust fund or plan, as determined144under s.175.162(2)(a) and using such other definition, equals145or exceeds the monthly retirement income that would be payable146to each firefighter if his or her monthly retirement income were147determined under s.175.162(2)(a) and using the definition in148this subsection.149 (a)(b)Any retirement trust fund or plan thatwhich now or150hereaftermeets the requirements of this chapter doesshallnot, 151 solely by virtue of this subsection, reduce or diminish the 152 monthly retirement income otherwise payable to each firefighter 153 covered by the retirement trust fund or plan. 154 (b)(c)The member’s compensation or salary contributed as 155 employee-elective salary reductions or deferrals to any salary 156 reduction, deferred compensation, or tax-sheltered annuity 157 program authorized under the Internal Revenue Code shall be 158 deemed to be the compensation or salary the member would receive 159 if he or she were not participating in such program and shall be 160 treated as compensation for retirement purposes under this 161 chapter. 162 (c)(d)For any person who first becomes a member in any 163 plan year beginning on or after January 1, 1996, compensation 164 for thatanyplan year mayshallnot include any amounts in 165 excess of the Internal Revenue Code s. 401(a)(17) limitation, 166(as amended by the Omnibus Budget Reconciliation Act of 1993), 167 which limitation of $150,000 shall be adjusted as required by 168 federal law for qualified government plans and shall be further 169 adjusted for changes in the cost of living in the manner 170 provided by Internal Revenue Code s. 401(a)(17)(B). For any 171 person who first became a member beforeprior tothe first plan 172 year beginning on or after January 1, 1996, the limitation on 173 compensation mayshall benot be less than the maximum 174 compensation amount that was allowed to be taken into account 175 under the planasin effect on July 1, 1993, which limitation 176 shall be adjusted for changes in the cost of living since 1989 177 in the manner provided by Internal Revenue Code s. 178 401(a)(17)(1991). 179 Section 5. Paragraph (b) of subsection (1) of section 180 175.061, Florida Statutes, is amended to read: 181 175.061 Board of trustees; members; terms of office; 182 meetings; legal entity; costs; attorney’s fees.—For any 183 municipality, special fire control district, chapter plan, local 184 law municipality, local law special fire control district, or 185 local law plan under this chapter: 186 (1) In each municipality and in each special fire control 187 district there is hereby created a board of trustees of the 188 firefighters’ pension trust fund, which shall be solely 189 responsible for administering the trust fund. Effective October 190 1, 1986, and thereafter: 191 (b) The membership of boards of trustees for local law 192 plans shall be as follows: 193 1. If a municipality or special fire control district has a 194 pension plan for firefighters only, the provisions of paragraph 195 (a)shallapply. 196 2. If a municipality has a pension plan for firefighters 197 and police officers, the provisions of paragraph (a)shall198 apply, except that one member of the board mustshallbe a 199 firefighteras defined in s.175.032and one member of the board 200 mustshallbe a police officer as defined in s. 185.02, 201 respectively elected by a majority of the active firefighters or 202 police officers who are members of the plan. 203 3. AAnyboard of trustees operating a local law plan on 204 July 1, 1999, which is combined with a plan for general 205 employees shall hold an election of the firefighters, or 206 firefighters and police officers, if included, to determine 207 whether a plan is to be established for firefighters only, or 208 for firefighters and police officers where included. Based on 209 the election results, a new board shall be established as 210 provided in subparagraph 1. or subparagraph 2., as appropriate. 211 The municipality or fire control district shall enact an 212 ordinance or resolution to implement the new board by October 1, 213 1999. The newly established board shall take whatever action is 214 necessary to determine the amount of assetswhich is215 attributable to firefighters, or firefighters and police 216 officers where included. Such assetsshallinclude all employer, 217 employee, and state contributions made by or on behalf of 218 firefighters, or firefighters and police officers where 219 included, and any investment income derived from such 220 contributions. All such moneys shall be transferred into the 221 newly established retirement plan, as directed by the board. 222 223 With respect to aanyboard of trustees operating a local law 224 plan on June 30, 1986,nothing inthis paragraph does notshall225 permit the reduction of the membership percentage of 226 firefighters, or of firefighters and police officers where a 227 joint or mixed fund exists. However, for the sole purpose of 228 changing municipal representation, a municipality may by 229 ordinance change the municipal representation on the board of 230 trustees operating a local law plan by ordinance, only if such 231 change does not reduce the membership percentage of 232 firefighters, or firefighters and police officers, or the 233 membership percentage of the municipal representation. 234 Section 6. Paragraph (b) of subsection (2) of section 235 175.091, Florida Statutes, is amended to read: 236 175.091 Creation and maintenance of fund.—For any 237 municipality, special fire control district, chapter plan, local 238 law municipality, local law special fire control district, or 239 local law plan under this chapter: 240 (2) Member contribution rates may be adjusted as follows: 241 (b) Firefighter member contributions may be increased by 242 consent of the members’ collective bargaining representative or, 243 if none, by majority consent of firefighter members of the fund 244to provide greater benefits. 245 246 Nothing in this section shall be construed to require adjustment 247 of member contribution rates in effect on the date this act 248 becomes a law, including rates that exceed 5 percent of salary, 249 provided that such rates are at least one-half of 1 percent of 250 salary. 251 Section 7. Section 175.351, Florida Statutes, is amended to 252 read: 253 175.351 Municipalities and special fire control districts 254 having their own pension plans for firefighters.—For any 255 municipality, special fire control district, local law 256 municipality, local law special fire control district, or local 257 law plan under this chapter, in order for municipalities and 258 special fire control districts with their own pension plans for 259 firefighters, or for firefighters and police officers if, where260 included, to participate in the distribution of the tax fund 261 established pursuant to s. 175.101, local law plans must meet 262 the minimum benefits and minimum standards set forth in this 263 chapter. 264 (1)PREMIUM TAX INCOME.—If a municipality has a pension 265 plan for firefighters, or a pension plan for firefighters and 266 police officers if, whereincluded, which in the opinion of the 267 division meets the minimum benefits and minimum standards set 268 forth in this chapter, the board of trustees of the pension 269 plan, as approved by a majority of firefighters of the 270 municipality, may: 271 (a) Place the income from the premium tax in s. 175.101 in 272 such pension plan for the sole and exclusive use of its 273 firefighters, or for firefighters and police officers if, where274 included, where it shall become an integral part of that pension 275 plan and shall be used to pay extra benefits to the firefighters 276 included in that pension plan; or 277 (b) Place the income from the premium tax in s. 175.101 in 278 a separate supplemental plan to pay extra benefits to 279 firefighters, or to firefighters and police officers ifwhere280 included, participating in such separate supplemental plan. 281 (2) The premium tax provided by this chapter shall in all 282 cases be used in its entirety to provide extra benefits to 283 firefighters, or to firefighters and police officers if, where284 included. However, local law plans in effect on October 1, 1998, 285 mustshall be required tocomply with the minimum benefit 286 provisions of this chapter only to the extent that additional 287 premium tax revenues become available to incrementally fund the 288 cost of such compliance as provided in s. 175.162(2)(a). IfWhen289 a plan is in compliance with such minimum benefit provisions, as 290 subsequent additional premium tax revenues become available, 291 they mustshallbe used to provide extra benefits. Local law 292 plans created by special act before May 27, 1939, are deemed to 293 comply with this chapter. For the purpose of this chapter, the 294 term: 295 (a) “Additional premium tax revenues” means revenues 296 received by a municipality or special fire control district 297 pursuant to s. 175.121 which exceed that amount received for 298 calendar year 1997., and the term299 (b) “Extra benefits” means benefits in addition to or 300 greater than those provided to general employees of the 301 municipality and in addition to those in existence for 302 firefighters on March 12, 1999.Local law plans created by303special act before May 23, 1939, shall be deemed to comply with304this chapter.305 (3)(2)AADOPTION OR REVISION OF A LOCAL LAW PLAN.—No306 retirement plan or amendment to a retirement plan may notshall307 be proposed for adoption unless the proposed plan or amendment 308 contains an actuarial estimate of the costs involved.NoSuch 309 proposed plan or proposed plan change may notshallbe adopted 310 without the approval of the municipality, special fire control 311 district, or, where permitted, the Legislature. Copies of the 312 proposed plan or proposed plan change and the actuarial impact 313 statement of the proposed plan or proposed plan change shall be 314 furnished to the division beforeprior tothe last public 315 hearing thereon. Such statement mustshallalso indicate whether 316 the proposed plan or proposed plan change is in compliance with 317 s. 14, Art. X of the State Constitution and those provisions of 318 part VII of chapter 112 which are not expressly provided in this 319 chapter. Notwithstanding any other provision, only those local 320 law plans created by special act of legislation beforeprior to321 May 2723, 1939, areshall bedeemed to meet the minimum 322 benefits and minimum standards only in this chapter. 323 (4)(3)Notwithstanding any other provision, with respect to 324 any supplemental plan municipality: 325 (a)Section175.032(3)(a) shall not apply, andA local law 326 plan and a supplemental plan may continue to use their 327 definition of compensation or salary in existence on March 12, 328 1999the effective date of this act. 329 (b) Section 175.061(1)(b) doesshallnot apply, and a local 330 law plan and a supplemental plan shall continue to be 331 administered by a board or boards of trustees numbered, 332 constituted, and selected as the board or boards were numbered, 333 constituted, and selected on December 1, 2000. 334 (c) The election set forth in paragraph (1)(b) isshall be335 deemed to have been made. 336 (5)(4)The retirement plan setting forth the benefits and 337 the trust agreement, if any, covering the duties and 338 responsibilities of the trustees and the regulations of the 339 investment of funds must be in writing, and copiesthereof must340bemade available to the participants and to the general public. 341 Section 8. Subsection (4) of section 185.02, Florida 342 Statutes, is amended to read: 343 185.02 Definitions.—For any municipality, chapter plan, 344 local law municipality, or local law plan under this chapter, 345 the following words and phrases as used in this chapter shall 346 have the following meanings, unless a different meaning is 347 plainly required by the context: 348 (4) “Compensation” or “salary” means, for noncollectively 349 bargained service earned before July 1, 2011, or for service 350 earned under collective bargaining agreements in place before 351 July 1, 2011, the total cash remuneration including “overtime” 352 paid by the primary employer to a police officer for services 353 rendered, but not including any payments for extra duty ora354 special detail work performed on behalf of a second party 355 employer.However,A local law plan may limit the amount of 356 overtime payments which can be used for retirement benefit 357 calculation purposes; however,but in no event shallsuch 358 overtime limit may not be less than 300 hours per officer per 359 calendar year. For noncollectively bargained service earned on 360 or after July 1, 2011, or for service earned under collective 361 bargaining agreements entered into on or after July 1, 2011, the 362 term has the same meaning except that when calculating 363 retirement benefits, up to 300 hours per year in overtime 364 compensation may be included as specified in the plan or 365 collective bargaining agreement, but payments for accrued unused 366 sick or annual leave may not be included. 367 (a) Any retirement trust fund or plan thatwhich now or368hereaftermeets the requirements of this chapter doesshallnot, 369 solely by virtue of this subsection, reduce or diminish the 370 monthly retirement income otherwise payable to each police 371 officer covered by the retirement trust fund or plan. 372 (b) The member’s compensation or salary contributed as 373 employee-elective salary reductions or deferrals to any salary 374 reduction, deferred compensation, or tax-sheltered annuity 375 program authorized under the Internal Revenue Code shall be 376 deemed to be the compensation or salary the member would receive 377 if he or she were not participating in such program and shall be 378 treated as compensation for retirement purposes under this 379 chapter. 380 (c) For any person who first becomes a member in any plan 381 year beginning on or after January 1, 1996, compensation for 382 thatanyplan year mayshallnot include any amounts in excess 383 of the Internal Revenue Code s. 401(a)(17) limitation,(as 384 amended by the Omnibus Budget Reconciliation Act of 1993), which 385 limitation of $150,000 shall be adjusted as required by federal 386 law for qualified government plans and shall be further adjusted 387 for changes in the cost of living in the manner provided by 388 Internal Revenue Code s. 401(a)(17)(B). For any person who first 389 became a member beforeprior tothe first plan year beginning on 390 or after January 1, 1996, the limitation on compensation may 391shall benot be less than the maximum compensation amount that 392 was allowed to be taken into account under the plan as in effect 393 on July 1, 1993, which limitation shall be adjusted for changes 394 in the cost of living since 1989 in the manner provided by 395 Internal Revenue Code s. 401(a)(17)(1991). 396 Section 9. Paragraph (b) of subsection (1) of section 397 185.05, Florida Statutes, is amended to read: 398 185.05 Board of trustees; members; terms of office; 399 meetings; legal entity; costs; attorney’s fees.—For any 400 municipality, chapter plan, local law municipality, or local law 401 plan under this chapter: 402 (1) In each municipality described in s. 185.03 there is 403 hereby created a board of trustees of the municipal police 404 officers’ retirement trust fund, which shall be solely 405 responsible for administering the trust fund. Effective October 406 1, 1986, and thereafter: 407 (b) The membership of boards of trustees for local law 408 plans isshall beas follows: 409 1. If a municipality has a pension plan for police officers 410 only, the provisions of paragraph (a) shall apply. 411 2. If a municipality has a pension plan for police officers 412 and firefighters, the provisions of paragraph (a)shallapply, 413 except that one member of the board shall be a police officeras414defined in s.185.02and one member shall be a firefighter as 415 defined in s. 175.032, respectively, elected by a majority of 416 the active firefighters and police officers who are members of 417 the plan. 418 3. Any board of trustees operating a local law plan on July 419 1, 1999, which is combined with a plan for general employees 420 shall hold an election of the police officers, or police 421 officers and firefighters if included, to determine whether a 422 plan is to be established for police officers only, or for 423 police officers and firefighters where included. Based on the 424 election results, a new board shall be established as provided 425 in subparagraph 1. or subparagraph 2., as appropriate. The 426 municipality shall enact an ordinance to implement the new board 427 by October 1, 1999. The newly established board shall take 428 whatever action is necessary to determine the amount of assets 429 which is attributable to police officers, or police officers and 430 firefighters where included. Such assets shall include all 431 employer, employee, and state contributions made by or on behalf 432 of police officers, or police officers and firefighters where 433 included, and any investment income derived from such 434 contributions. All such moneys shall be transferred into the 435 newly established retirement plan, as directed by the board. 436 437 With respect to any board of trustees operating a local law plan 438 on June 30, 1986,nothing inthis paragraph does notshall439 permit the reduction of the membership percentage of police 440 officers or police officers and firefighters. However, for the 441 sole purpose of changing municipal representation, a 442 municipality may by ordinance change the municipal 443 representation on the board of trustees operating a local law 444 plan by ordinance, only if such change does not reduce the 445 membership percentage of police officers, or police officers and 446 firefighters, or the membership percentage of the municipal 447 representation. 448 Section 10. Paragraph (b) of subsection (2) of section 449 185.07, Florida Statutes, is amended to read: 450 185.07 Creation and maintenance of fund.—For any 451 municipality, chapter plan, local law municipality, or local law 452 plan under this chapter: 453 (2) Member contribution rates may be adjusted as follows: 454 (b) Police officer member contributions may be increased by 455 consent of the members’ collective bargaining representative or, 456 if none, by majority consent of police officer members of the 457 fundto provide greater benefits. 458 459 Nothing in this section shall be construed to require adjustment 460 of member contribution rates in effect on the date this act 461 becomes a law, including rates that exceed 5 percent of salary, 462 provided that such rates are at least one-half of 1 percent of 463 salary. 464 Section 11. Section 185.35, Florida Statutes, is amended to 465 read: 466 185.35 Municipalities having their own pension plans for 467 police officers.—For any municipality, chapter plan, local law 468 municipality, or local law plan under this chapter, in order for 469 municipalities with their own pension plans for police officers, 470 or for police officers and firefighters ifwhereincluded, to 471 participate in the distribution of the tax fund established 472 pursuant to s. 185.08, local law plans must meet the minimum 473 benefits and minimum standards set forth in this chapter: 474 (1)PREMIUM TAX INCOME.—If a municipality has a pension 475 plan for police officers, or for police officers and 476 firefighters ifwhereincluded, which, in the opinion of the 477 division, meets the minimum benefits and minimum standards set 478 forth in this chapter, the board of trustees of the pension 479 plan, as approved by a majority of police officers of the 480 municipality, may: 481 (a) Place the income from the premium tax in s. 185.08 in 482 such pension plan for the sole and exclusive use of its police 483 officers, or its police officers and firefighters ifwhere484 included, where it shall become an integral part of that pension 485 plan and shall be used to pay extra benefits to the police 486 officers included in that pension plan; or 487 (b) May place the income from the premium tax in s. 185.08 488 in a separate supplemental plan to pay extra benefits to the 489 police officers, or police officers and firefighters ifwhere490 included, participating in such separate supplemental plan. 491 (2) The premium tax provided by this chapter shall in all 492 cases be used in its entirety to provide extra benefits to 493 police officers, or to police officers and firefighters if,494whereincluded. However, local law plans in effect on October 1, 495 1998, mustshall be required tocomply with the minimum benefit 496 provisions of this chapter only to the extent that additional 497 premium tax revenues become available to incrementally fund the 498 cost of such compliance as provided in s. 185.16(2). IfWhena 499 plan is in compliance with such minimum benefit provisions, as 500 subsequent additional tax revenues become available, they shall 501 be used to provide extra benefits. Local law plans created by 502 special act before May 27, 1939, shall be deemed to comply with 503 this chapter. For the purpose of this chapter, the term: 504 (a) “Additional premium tax revenues” means revenues 505 received by a municipality pursuant to s. 185.10 which exceed 506 the amount received for calendar year 1997., and the term507 (b) “Extra benefits” means benefits in addition to or 508 greater than those provided to general employees of the 509 municipality and in addition to those in existence for police 510 officers on March 12, 1999.Local law plans created by special511act before May 23, 1939, shall be deemed to comply with this512chapter.513 (3)(2)AADOPTION OR REVISION OF A LOCAL LAW PLAN.—No514 retirement plan or amendment to a retirement plan may notshall515 be proposed for adoption unless the proposed plan or amendment 516 contains an actuarial estimate of the costs involved.NoSuch 517 proposed plan or proposed plan change may notshallbe adopted 518 without the approval of the municipality or, where permitted, 519 the Legislature. Copies of the proposed plan or proposed plan 520 change and the actuarial impact statement of the proposed plan 521 or proposed plan change shall be furnished to the division 522 beforeprior tothe last public hearing thereon. Such statement 523 mustshallalso indicate whether the proposed plan or proposed 524 plan change is in compliance with s. 14, Art. X of the State 525 Constitution and those provisions of part VII of chapter 112 526 which are not expressly provided in this chapter. 527 Notwithstanding any other provision, only those local law plans 528 created by special act of legislation beforeprior toMay 2723, 529 1939, areshall bedeemed to meet the minimum benefits and 530 minimum standards only in this chapter. 531 (4)(3)Notwithstanding any other provision, with respect to 532 any supplemental plan municipality: 533 (a) Section 185.02(4)(a) doesshallnot apply, and a local 534 law plan and a supplemental plan may continue to use their 535 definition of compensation or salary in existence on March 12, 536 1999the effective date of this act. 537 (b)Section185.05(1)(b) shall not apply, andA local law 538 plan and a supplemental plan mustshallcontinue to be 539 administered by a board or boards of trustees numbered, 540 constituted, and selected as the board or boards were numbered, 541 constituted, and selected on December 1, 2000. 542 (c) The election set forth in paragraph (1)(b) isshall be543 deemed to have been made. 544 (5)(4)The retirement plan setting forth the benefits and 545 the trust agreement, if any, covering the duties and 546 responsibilities of the trustees and the regulations of the 547 investment of funds must be in writing and copies made available 548 to the participants and to the general public. 549 Section 12. Financial rating of local pension plans.—The 550 Department of Management Services shall develop a plan for 551 creating standardized ratings for classifying the financial 552 strength of all local government defined benefit pension plans. 553 (1) In developing the plan, the department shall consider, 554 without limitation: 555 (a) The plan’s current and future unfunded liabilities. 556 (b) The plan’s net asset value, managed returns, and funded 557 ratio. 558 (c) Metrics related to the sustainability of the plan, 559 including, but not limited to, the percentage that the annual 560 contribution is of the participating employee payroll. 561 (d) Municipal bond ratings for the local government, if 562 applicable. 563 (e) Whether the local government has reduced contribution 564 rates to the plan when the plan has an actuarial surplus. 565 (f) Whether the local government uses any actuarial surplus 566 in the plan for obligations outside the plan. 567 (2) The department may obtain data, information, and 568 assistance from state agencies, local governments, or political 569 subdivisions thereof, which shall provide the department with 570 all relevant information and assistance on any matter within 571 their knowledge or control. 572 (3) The department shall submit the plan, plus any related 573 findings and recommendations, to the Governor, the Chief 574 Financial Officer, the President of the Senate, and the Speaker 575 of the House of Representatives by January 1, 2012. The report 576 must also include specific recommendations for legislative 577 action during the 2012 Regular Session of the Legislature. 578 Section 13. Task Force on Public Employee Disability 579 Presumptions.— 580 (1) The Task Force on Public Employee Disability 581 Presumptions is created for the purpose of developing findings 582 and issuing recommendations on the disability presumptions in 583 ss. 112.18, 175.231, and 185.34, Florida Statutes. 584 (2) All members of the task force shall be appointed on or 585 before July 15, 2011, and the task force shall hold its first 586 meeting on or before August 15, 2011. The task force shall be 587 composed of eight members as follows: 588 (a) Three members appointed by the President of the Senate, 589 one of whom must be an attorney who primarily represents 590 plaintiffs and has experience in the relevant laws, one of whom 591 must be a representative of organized labor and a member of a 592 pension plan under chapter 175, Florida Statutes, and one of 593 whom must be from the Florida Association of Counties. 594 (b) Three members appointed by the Speaker of the House of 595 Representatives, one of whom must be an attorney who primarily 596 represents defendants and has experience in the relevant laws, 597 one of whom must be a representative of organized labor and a 598 member of a pension plan under chapter 185, Florida Statutes, 599 and one of whom must be from the Florida League of Cities. 600 (c) A member employed by the Division of Retirement of the 601 Department of Management Services who has experience in local 602 government pension plans, appointed by the Governor. 603 (d) A member employed by the Department of Financial 604 Services who has relevant expertise in state risk management, 605 appointed by the Chief Financial Officer. 606 (3) The task force shall address issues, including, but not 607 limited to: 608 (a) Data related to the operation of the statutory 609 disability presumptions, and the fiscal impact on public 610 employers in the areas of pensions and workers’ compensation. 611 (b) The manner in which other states handle disability 612 presumptions, and the fiscal impact on public employers. 613 (c) Proposals for changes to the existing disability 614 presumptions. 615 (d) Evidentiary standards and burdens of proof for 616 overcoming statutory disability presumptions, and whether 617 consideration of risk factors and epidemiological data relating 618 to nonwork-related conditions unique to an individual employee, 619 such as blood cholesterol, body mass index, history of tobacco 620 and alcohol use, and other medical conditions or behaviors that 621 are associated with the diseases or conditions listed in 622 disability presumptions, are appropriate for consideration. 623 (4) The Department of Financial Services shall provide 624 administrative support to the task force. 625 (5) Members of the task force shall serve without 626 compensation while in the performance of their duties, but are 627 entitled to reimbursement for per diem and travel expenses in 628 accordance with s. 112.061, Florida Statutes. 629 (6) The task force may obtain data, information, and 630 assistance from any state agency, local government, or any 631 political subdivision thereof, which shall provide the task 632 force with all relevant information and assistance on any matter 633 within their knowledge or control. 634 (7) The task force shall submit a report, including 635 findings and recommendations, to the Governor, the Chief 636 Financial Officer, the President of the Senate, and the Speaker 637 of the House of Representatives by January 1, 2012. The report 638 must include specific recommendations for legislative action 639 during the 2012 Regular Session of the Legislature. 640 (8) The task force is dissolved upon submission of its 641 report. 642 Section 14. The Legislature finds that a proper and 643 legitimate state purpose is served when employees and retirees 644 of the state and of its political subdivisions, and the 645 dependents, survivors, and beneficiaries of those employees and 646 retirees, are extended the basic protections afforded by 647 governmental retirement systems that provide fair and adequate 648 benefits and that are managed, administered, and funded in an 649 actuarially sound manner as required by s. 14, Article X of the 650 State Constitution and part VII of chapter 112, Florida 651 Statutes. Therefore, the Legislature determines and declares 652 that this act fulfills an important state interest. 653 Section 15. This act shall take effect July 1, 2011.