Bill Text: FL S1128 | 2011 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Public Retirement Plans
Spectrum:
Status: (Engrossed - Dead) 2011-05-04 - Ordered enrolled -SJ 851 [S1128 Detail]
Download: Florida-2011-S1128-Comm_Sub.html
Bill Title: Public Retirement Plans
Spectrum:
Status: (Engrossed - Dead) 2011-05-04 - Ordered enrolled -SJ 851 [S1128 Detail]
Download: Florida-2011-S1128-Comm_Sub.html
Florida Senate - 2011 CS for SB 1128 By the Committee on Governmental Oversight and Accountability; and Senator Ring 585-02641A-11 20111128c1 1 A bill to be entitled 2 An act relating to public retirement plans; amending 3 s. 112.66, F.S.; providing for the calculation of 4 local government retirement benefits after a certain 5 date; providing a prohibition on the use of plan 6 revenues; prohibiting a reduction in certain 7 contributions to a plan; amending s. 121.051, F.S.; 8 providing that a plan is eligible for participation in 9 the Florida Retirement System if it has no unfunded 10 actuarial liabilities; amending s. 175.032, F.S.; 11 revising the definition of the term “compensation” or 12 “salary” for purposes of firefighters’ pensions; 13 amending s. 175.351, F.S.; revising provisions 14 relating to benefits paid from the premium tax by a 15 municipality or special fire control district that has 16 its own pension plan; providing for funding a plan’s 17 actuarial accrued liability; conforming a cross 18 reference; amending s. 185.02, F.S.; revising the 19 definition of the terms “compensation” and “salary” 20 for purposes of police officers’ pensions; amending s. 21 185.35, F.S.; revising provisions relating to benefits 22 paid by a municipality that has its own pension plan; 23 providing for funding a plan’s actuarial accrued 24 liability; authorizing a municipality to advance 25 payment for purchasing an annuity contract for a 26 closed plan; directing the Department of Financial 27 Services to rate the financial strength of local 28 government defined benefit plans; specifying the 29 factors for assigning the ratings; requiring local 30 pension boards, local governments, the Division of 31 Retirement, and all relevant entities to cooperate in 32 providing data for the ratings; requiring the ratings 33 to be posted on the department’s website; creating the 34 Task Force on Public Employee Disability Presumptions; 35 providing for appointment and membership; specifying 36 the issues for the task force to address; providing 37 for a report to be submitted to the Governor, Chief 38 Financial Officer, and Legislature by a certain date; 39 providing for future expiration; directing the 40 Department of Financial Services to submit a report on 41 the financial health of local government pension plans 42 to the Governor and Legislature by a certain date; 43 specifying the issues the report must address; 44 providing a declaration of important state interest; 45 providing an effective date. 46 47 Be It Enacted by the Legislature of the State of Florida: 48 49 Section 1. Subsections (11) through (13) are added to 50 section 112.66, Florida Statutes, to read: 51 112.66 General provisions.—The following general provisions 52 relating to the operation and administration of any retirement 53 system or plan covered by this part shall be applicable: 54 (11) Effective July 1, 2011, for purposes of calculating 55 retirement benefits, a pension system or plan sponsored by a 56 local government may not include any overtime in excess of 300 57 hours per year, or any payments for accrued unused sick leave or 58 annual leave. For those members whose terms and conditions of 59 employment are collectively bargained, this subsection is 60 effective for the first agreement negotiated on or after July 1, 61 2011. This subsection does not apply to state-administered 62 retirement systems or plans. 63 (12) An actuarial or cash surplus in any system or plan may 64 not be used for any expenses outside the plan. 65 (13) A plan or system may not reduce contributions required 66 to fund normal cost. 67 Section 2. Paragraph (g) is added to subsection (2) of 68 section 121.051, Florida Statutes, to read: 69 121.051 Participation in the system.— 70 (2) OPTIONAL PARTICIPATION.— 71 (g) A local government retirement system or plan, including 72 a firefighters’ pension plan or a municipal police officers’ 73 retirement plan established in accordance with chapter 175 or 74 chapter 185, is eligible for membership under this chapter if 75 the plan has no unfunded actuarial liabilities. 76 Section 3. Subsection (3) of section 175.032, Florida 77 Statutes, is amended to read: 78 175.032 Definitions.—For any municipality, special fire 79 control district, chapter plan, local law municipality, local 80 law special fire control district, or local law plan under this 81 chapter, the following words and phrases have the following 82 meanings: 83 (3) “Compensation” or “salary” means, for noncollectively 84 bargained service earned before July 1, 2011, or for service 85 earned under collective bargaining agreements in place before 86 July 1, 2011, the fixed monthly remuneration paid a firefighter. 87 If; where, as in the case of a volunteer firefighter,88 remuneration is based on actual services rendered, as in the 89 case of a volunteer firefighter, the term means the total cash 90 remuneration received yearly for such services, prorated on a 91 monthly basis. For noncollectively bargained service earned on 92 or after July 1, 2011, or for service earned under collective 93 bargaining agreements entered into on or after July 1, 2011, the 94 term has the same meaning except that overtime compensation in 95 excess of 300 hours per year, or payments for accrued unused 96 sick or annual leave, may not be included for purposes of 97 calculating retirement benefits. 98(a) A retirement trust fund or plan may use a definition of99salary other than the definition in this subsection but only if100the monthly retirement income payable to each firefighter101covered by the retirement trust fund or plan, as determined102under s.175.162(2)(a) and using such other definition, equals103or exceeds the monthly retirement income that would be payable104to each firefighter if his or her monthly retirement income were105determined under s.175.162(2)(a) and using the definition in106this subsection.107 (a)(b)Any retirement trust fund or plan thatwhich now or108hereaftermeets the requirements of this chapter doesshallnot, 109 solely by virtue of this subsection, reduce or diminish the 110 monthly retirement income otherwise payable to each firefighter 111 covered by the retirement trust fund or plan. 112 (b)(c)The member’s compensation or salary contributed as 113 employee-elective salary reductions or deferrals to any salary 114 reduction, deferred compensation, or tax-sheltered annuity 115 program authorized under the Internal Revenue Code shall be 116 deemed to be the compensation or salary the member would receive 117 if he or she were not participating in such program and shall be 118 treated as compensation for retirement purposes under this 119 chapter. 120 (c)(d)For any person who first becomes a member in any 121 plan year beginning on or after January 1, 1996, compensation 122 for thatanyplan year mayshallnot include any amounts in 123 excess of the Internal Revenue Code s. 401(a)(17) limitation, 124(as amended by the Omnibus Budget Reconciliation Act of 1993), 125 which limitation of $150,000 shall be adjusted as required by 126 federal law for qualified government plans and shall be further 127 adjusted for changes in the cost of living in the manner 128 provided by Internal Revenue Code s. 401(a)(17)(B). For any 129 person who first became a member beforeprior tothe first plan 130 year beginning on or after January 1, 1996, the limitation on 131 compensation mayshall benot be less than the maximum 132 compensation amount that was allowed to be taken into account 133 under the planasin effect on July 1, 1993, which limitation 134 shall be adjusted for changes in the cost of living since 1989 135 in the manner provided by Internal Revenue Code s. 136 401(a)(17)(1991). 137 Section 4. Section 175.351, Florida Statutes, is amended to 138 read: 139 175.351 Municipalities and special fire control districts 140 having their own pension plans for firefighters.—For any 141 municipality, special fire control district, local law 142 municipality, local law special fire control district, or local 143 law plan under this chapter, in order for municipalities and 144 special fire control districts with their own pension plans for 145 firefighters, or for firefighters and police officers if, where146 included, to participate in the distribution of the tax fund 147 established pursuant to s. 175.101, local law plans must meet 148 the minimum benefits and minimum standards set forth in this 149 chapter. 150 (1)PREMIUM TAX INCOME.—If a municipality or special fire 151 control district has a pension plan for firefighters, or a 152 pension plan for firefighters and police officers if, where153 included, which in the opinion of the division meets the minimum 154 benefits and minimum standards set forth in this chapter, the 155 board of trustees of the pension plan, as approved by a majority 156 of firefighters, or firefighters and police officers, of the 157 municipality or fire control district, may: 158 (a) Place the income from the premium tax in s. 175.101 in 159 such pension plan for the sole and exclusive use of its 160 firefighters, or for firefighters and police officers if, where161 included, where it shall become an integral part of that pension 162 plan and shall be used to pay extra benefits to the 163 firefighters, or firefighters and police officers, included in 164 that pension plan; or 165 (b) Place the income from the premium tax in s. 175.101 in 166 a separate supplemental plan to pay extra benefits to 167 firefighters, or to firefighters and police officers ifwhere168 included, participating in such separate supplemental plan. 169 (2) The premium tax provided by this chapter shall in all 170 cases be used in its entirety to provide retirementextra171 benefits to firefighters, or to firefighters and police officers 172 if, whereincluded. However, local law plans in effect on 173 October 1, 1998, mustshall be required tocomply with the 174 minimum benefit provisions of this chapter only to the extent 175 that additional premium tax revenues become available to 176 incrementally fund the cost of such compliance as provided in s. 177 175.162(2)(a). IfWhena plan is in compliance with such minimum 178 benefit provisions, as subsequent additional premium tax 179 revenues become available, they mustshallbe used to provide 180 extra benefits, except as provided in subsection (1). For the 181 purpose of this chapter, “additional premium tax revenues” means 182 revenues received by a municipality or special fire control 183 district pursuant to s. 175.121 which exceed that amount 184 received for calendar year 1997, and the term “extra benefits” 185 means benefits in addition to or greater than those provided to 186 general employees of the municipality and in addition to those 187 in existence for firefighters on March 12, 1999. Local law plans 188 created by special act before May 23, 1939, shall be deemed to 189 comply with this chapter. Notwithstanding any other provisions 190 of this section, if, as of March 1, 2011: 191 (a) A plan’s actuarial accrued liability is funded below 80 192 percent, 50 percent of the premium tax revenues in excess of the 193 adjusted base amount and accumulated excess premium tax revenues 194 held in reserve shall be used to pay the plan’s actuarial 195 accrued liability until the liability exceeds 80 percent. 196 (b) For a supplemental plan that exists in conjunction with 197 a defined benefit plan under this chapter, the defined benefit 198 plan’s actuarial accrued liability is funded below 70 percent, 199 the premium tax revenues in excess of the adjusted base amount 200 of the defined benefit plan shall be used to pay the plan’s 201 actuarial accrued liability until such liability is at least 80 202 percent funded. 203 (3)(2)AADOPTION OR REVISION OF A LOCAL LAW PLAN.—No204 retirement plan or amendment to a retirement plan may notshall205 be proposed for adoption unless the proposed plan or amendment 206 contains an actuarial estimate of the costs involved.NoSuch 207 proposed plan or proposed plan change may notshallbe adopted 208 without the approval of the municipality, special fire control 209 district, or, where permitted, the Legislature. Copies of the 210 proposed plan or proposed plan change and the actuarial impact 211 statement of the proposed plan or proposed plan change shall be 212 furnished to the division beforeprior tothe last public 213 hearing thereon. Such statement mustshallalso indicate whether 214 the proposed plan or proposed plan change is in compliance with 215 s. 14, Art. X of the State Constitution and those provisions of 216 part VII of chapter 112 which are not expressly provided in this 217 chapter. Notwithstanding any other provision, only those local 218 law plans created by special act of legislation beforeprior to219 May 23, 1939, areshall bedeemed to meet the minimum benefits 220 and minimum standards only in this chapter. 221 (4)(3)Notwithstanding any other provision, with respect to 222 any supplemental plan municipality: 223 (a)Section175.032(3)(a) shall not apply, andA local law 224 plan and a supplemental plan may continue to use their 225 definition of compensation or salary in existence on the 226 effective date of this act. 227 (b) Section 175.061(1)(b) doesshallnot apply, and a local 228 law plan and a supplemental plan shall continue to be 229 administered by a board or boards of trustees numbered, 230 constituted, and selected as the board or boards were numbered, 231 constituted, and selected on December 1, 2000. 232 (c) The election set forth in paragraph (1)(b) isshall be233 deemed to have been made. 234 (5)(4)The retirement plan setting forth the benefits and 235 the trust agreement, if any, covering the duties and 236 responsibilities of the trustees and the regulations of the 237 investment of funds must be in writing, and copiesthereof must238bemade available to the participants and to the general public. 239 Section 5. Subsection (4) of section 185.02, Florida 240 Statutes, is amended to read: 241 185.02 Definitions.—For any municipality, chapter plan, 242 local law municipality, or local law plan under this chapter, 243 the following words and phrases as used in this chapter shall 244 have the following meanings, unless a different meaning is 245 plainly required by the context: 246 (4) “Compensation” or “salary” means, for noncollectively 247 bargained service earned before July 1, 2011, or for service 248 earned under collective bargaining agreements in place before 249 July 1, 2011, the total cash remuneration including “overtime” 250 paid by the primary employer to a police officer for services 251 rendered, but not including any payments for extra duty ora252 special detail work performed on behalf of a second party 253 employer.However,A local law plan may limit the amount of 254 overtime payments which can be used for retirement benefit 255 calculation purposes; however,but in no event shallsuch 256 overtime limit may not be less than 300 hours per officer per 257 calendar year. For noncollectively bargained service earned on 258 or after July 1, 2011, or for service earned under collective 259 bargaining agreements entered into on or after July 1, 2011, the 260 term has the same meaning except that overtime compensation in 261 excess of 300 hours per year, or payments for accrued unused 262 sick or annual leave, may not be included for purposes of 263 calculating retirement benefits. 264 (a) Any retirement trust fund or plan thatwhichnow or265hereaftermeets the requirements of this chapter doesshallnot, 266 solely by virtue of this subsection, reduce or diminish the 267 monthly retirement income otherwise payable to each police 268 officer covered by the retirement trust fund or plan. 269 (b) The member’s compensation or salary contributed as 270 employee-elective salary reductions or deferrals to any salary 271 reduction, deferred compensation, or tax-sheltered annuity 272 program authorized under the Internal Revenue Code shall be 273 deemed to be the compensation or salary the member would receive 274 if he or she were not participating in such program and shall be 275 treated as compensation for retirement purposes under this 276 chapter. 277 (c) For any person who first becomes a member in any plan 278 year beginning on or after January 1, 1996, compensation for 279 thatanyplan year mayshallnot include any amounts in excess 280 of the Internal Revenue Code s. 401(a)(17) limitation,(as 281 amended by the Omnibus Budget Reconciliation Act of 1993), which 282 limitation of $150,000 shall be adjusted as required by federal 283 law for qualified government plans and shall be further adjusted 284 for changes in the cost of living in the manner provided by 285 Internal Revenue Code s. 401(a)(17)(B). For any person who first 286 became a member beforeprior tothe first plan year beginning on 287 or after January 1, 1996, the limitation on compensation may 288shall benot be less than the maximum compensation amount that 289 was allowed to be taken into account under the plan as in effect 290 on July 1, 1993, which limitation shall be adjusted for changes 291 in the cost of living since 1989 in the manner provided by 292 Internal Revenue Code s. 401(a)(17)(1991). 293 Section 6. Section 185.35, Florida Statutes, is amended to 294 read: 295 185.35 Municipalities having their own pension plans for 296 police officers.—For any municipality, chapter plan, local law 297 municipality, or local law plan under this chapter, in order for 298 municipalities with their own pension plans for police officers, 299 or for police officers and firefighters ifwhereincluded, to 300 participate in the distribution of the tax fund established 301 pursuant to s. 185.08, local law plans must meet the minimum 302 benefits and minimum standards set forth in this chapter: 303 (1)PREMIUM TAX INCOME.—If a municipality has a pension 304 plan for police officers, or for police officers and 305 firefighters ifwhereincluded, which, in the opinion of the 306 division, meets the minimum benefits and minimum standards set 307 forth in this chapter, the board of trustees of the pension 308 plan, as approved by a majority of police officers, or police 309 officers and firefighters, of the municipality, may: 310 (a) Place the income from the premium tax in s. 185.08 in 311 such pension plan for the sole and exclusive use of its police 312 officers, or its police officers and firefighters ifwhere313 included, where it shall become an integral part of that pension 314 plan and shall be used to pay extra benefits to the police 315 officers, or police officers and firefighters, included in that 316 pension plan; or 317 (b) May place the income from the premium tax in s. 185.08 318 in a separate supplemental plan to pay extra benefits to the 319 police officers, or police officers and firefighters ifwhere320 included, participating in such separate supplemental plan. 321 (2) Except as provided in subsection (3), the premium tax 322 provided by this chapter shall in all cases be used in its 323 entirety to provide retirementextrabenefits to police 324 officers, or to police officers and firefighters if, where325 included. However, local law plans in effect on October 1, 1998, 326 mustshall be required tocomply with the minimum benefit 327 provisions of this chapter only to the extent that additional 328 premium tax revenues become available to incrementally fund the 329 cost of such compliance as provided in s. 185.16(2). IfWhena 330 plan is in compliance with such minimum benefit provisions, as 331 subsequent additional tax revenues become available, they shall 332 be used to provide extra benefits, except as provided under 333 subsection (1). For the purpose of this chapter, “additional 334 premium tax revenues” means revenues received by a municipality 335 pursuant to s. 185.10 which exceed the amount received for 336 calendar year 1997, and the term “extra benefits” means benefits 337 in addition to or greater than those provided to general 338 employees of the municipality and in addition to those in 339 existence for police officers on March 12, 1999. Local law plans 340 created by special act before May 23, 1939, shall be deemed to 341 comply with this chapter. Notwithstanding any other provisions 342 of this section, if, as of March 1, 2011: 343 (a) A plan’s actuarial accrued liability is funded below 80 344 percent, 50 percent of the premium tax revenues in excess of the 345 adjusted base amount and accumulated excess premium tax revenues 346 held in reserve shall be used to pay the plan’s actuarial 347 accrued liability until the liability exceeds 80 percent. 348 (b) For a supplemental plan that exists in conjunction with 349 a defined benefit plan under this chapter, the defined benefit 350 plan’s actuarial accrued liability is funded below 70 percent, 351 the premium tax revenues in excess of the adjusted base amount 352 of the defined benefit plan shall be used to pay the plan’s 353 actuarial accrued liability until such liability is at least 80 354 percent funded. 355 (3) In a closed plan where police services have been 356 transferred or merged with another governmental agency and the 357 plan has fewer than five active members, the municipality may 358 advance payment for purchasing an annuity contract applicable to 359 the accrued liabilities of the plan. In such case, the board of 360 trustees, as approved by the members, may authorize repayment 361 from the future receipt of premium taxes; however, the plan may 362 not be deemed fully funded until the full cost of the advanced 363 payment has been returned to the municipality by the plan. This 364 subsection does not preclude the continued receipt of premium 365 tax to provide extra benefits for active or retired police 366 officers as provided under subsection (2). 367 (4)(2)AADOPTION OR REVISION OF A LOCAL LAW PLAN.—No368 retirement plan or amendment to a retirement plan may notshall369 be proposed for adoption unless the proposed plan or amendment 370 contains an actuarial estimate of the costs involved.NoSuch 371 proposed plan or proposed plan change may notshallbe adopted 372 without the approval of the municipality or, where permitted, 373 the Legislature. Copies of the proposed plan or proposed plan 374 change and the actuarial impact statement of the proposed plan 375 or proposed plan change shall be furnished to the division 376 beforeprior tothe last public hearing thereon. Such statement 377 mustshallalso indicate whether the proposed plan or proposed 378 plan change is in compliance with s. 14, Art. X of the State 379 Constitution and those provisions of part VII of chapter 112 380 which are not expressly provided in this chapter. 381 Notwithstanding any other provision, only those local law plans 382 created by special act of legislation beforeprior toMay 23, 383 1939, areshall bedeemed to meet the minimum benefits and 384 minimum standards only in this chapter. 385 (5)(3)Notwithstanding any other provision, with respect to 386 any supplemental plan municipality: 387 (a) Section 185.02(4)(a) doesshallnot apply, and a local 388 law plan and a supplemental plan may continue to use their 389 definition of compensation or salary in existence on March 12, 390 1999the effective date of this act. 391 (b) Section 185.05(1)(b) doesshallnot apply, and a local 392 law plan and a supplemental plan shall continue to be 393 administered by a board or boards of trustees numbered, 394 constituted, and selected as the board or boards were numbered, 395 constituted, and selected on December 1, 2000. 396 (c) The election set forth in paragraph (1)(b) isshall be397 deemed to have been made. 398 (6)(4)The retirement plan setting forth the benefits and 399 the trust agreement, if any, covering the duties and 400 responsibilities of the trustees and the regulations of the 401 investment of funds must be in writing and copies made available 402 to the participants and to the general public. 403 Section 7. Financial rating of local pension plans.—The 404 Department of Financial Services shall develop standardized 405 ratings for classifying the financial strength of all local 406 government defined benefit pension plans. 407 (1) In assigning a rating to a plan, the department shall 408 consider, without limitation: 409 (a) The plan’s current and future unfunded liabilities. 410 (b) The plan’s net asset value, managed returns, and funded 411 ratio. 412 (c) Metrics related to the sustainability of the plan, 413 including, but not limited to, the percentage that the annual 414 contribution is of the participating employee payroll. 415 (d) Municipal bond ratings for the local government, if 416 applicable. 417 (e) Whether the local government has reduced contribution 418 rates to the plan when the plan has an actuarial surplus. 419 (f) Whether the local government uses any actuarial surplus 420 in the plan for obligations outside the plan. 421 (2) The department may obtain all necessary data to 422 formulate the ratings from all relevant entities, including 423 local pension boards, local governments, and the Division of 424 Retirement, all of which shall cooperate with the department in 425 supplying all necessary information. 426 (3) The ratings shall be posted on the department’s website 427 in a standardized format. 428 Section 8. Task Force on Public Employee Disability 429 Presumptions.— 430 (1) The Task Force on Public Employee Disability 431 Presumptions is created for the purpose of developing findings 432 and issuing recommendations on the disability presumptions in 433 ss. 112.18, 175.231, and 185.34, Florida Statutes. 434 (2) All members of the task force shall be appointed on or 435 before July 15, 2011, and the task force shall hold its first 436 meeting on or before August 15, 2011. The task force shall be 437 composed of nine members as follows: 438 (a) Three members appointed by the President of the Senate, 439 one of whom must be an attorney in private practice who has 440 experience in the relevant laws; one of whom must be a 441 representative of organized labor and who is a member of a 442 pension plan under chapter 175, Florida Statutes; and one of 443 whom must be from the Florida Association of Counties. 444 (b) Three members appointed by the Speaker of the House of 445 Representatives, one of whom must be an attorney in private 446 practice who has experience in the relevant laws; one of whom 447 must be a representative of organized labor and who is a member 448 of a pension plan under chapter 185, Florida Statutes; and one 449 of whom must be from the Florida League of Cities. 450 (c) A member employed by the Office of the Auditor General 451 who has experience in local government auditing and finances. 452 (d) A member employed by the Division of Retirement of the 453 Department of Management Services who has experience in local 454 government pension plans, appointed by the Governor. 455 (e) A member employed by the Department of Financial 456 Services who has relevant expertise in state risk management, 457 appointed by the Chief Financial Officer. 458 (3) The task force shall address issues, including, but not 459 limited to: 460 (a) Data related to the operation of the statutory 461 disability presumptions. 462 (b) The manner in which other states handle disability 463 presumptions. 464 (c) Proposals for changes to the existing disability 465 presumptions. 466 (4) The Department of Financial Services shall provide 467 administrative support to the task force. 468 (5) Members of the task force shall serve without 469 compensation while in the performance of their duties, but are 470 entitled to reimbursement for per diem and travel expenses in 471 accordance with s. 112.061, Florida Statutes. 472 (6) The task force may obtain data, information, and 473 assistance from any officer or state agency and any political 474 subdivision thereof. All such officers, agencies, and political 475 subdivisions shall provide the task force with all relevant 476 information and assistance on any matter within their knowledge 477 or control. 478 (7) The task force shall submit a report, including 479 findings and recommendations, to the Governor, the Chief 480 Financial Officer, the President of the Senate, and the Speaker 481 of the House of Representatives by January 1, 2012. The report 482 must include specific recommendations for legislative action 483 during the 2012 Regular Session of the Legislature. 484 (8) The task force is dissolved upon submission of its 485 report. 486 Section 9. By December 1, 2011, the Department of Financial 487 Services shall submit a report and recommendations to the 488 Governor, the President of the Senate, and the Speaker of the 489 House of Representatives on actions to be taken to increase the 490 visibility and transparency of local government pension plans, 491 including, but not limited to, those created pursuant to chapter 492 175 or chapter 185, Florida Statutes, with the goal of 493 increasing the ability of a taxpayer or policymaker to assess 494 the financial health of the local plans. The report must include 495 specific recommendations for legislative action during the 2012 496 Regular Session of the Legislature. The department shall consult 497 with the Legislature’s Office of Economic and Demographic 498 Research in formulating the recommendations, which must address, 499 but need not be limited to: 500 (1) Whether and what kinds of local pension plan data 501 should be included in the financial audit reports required under 502 s. 218.39, Florida Statutes. 503 (2) Whether the reporting requirements of ss. 175.261 and 504 185.221, Florida Statutes, should be supplemented with other 505 types of financial data in order to give a more complete and 506 transparent picture of a local government’s financial solvency. 507 (3) Proposals for a uniform format for providing pension 508 data, including standard terminology and data and the specific 509 types of data which should be provided, including funding 510 ratios, and whether contributions are sufficient to fund 511 actuarial liabilities. 512 (4) Whether to require local governments to provide pension 513 financial data on local public websites. 514 (5) Other related issues, including insurance benefits, 515 health care benefits, and postemployment plan benefits. 516 (6) Proposals related to the composition of local pension 517 plan boards. 518 Section 10. The Legislature finds that a proper and 519 legitimate state purpose is served when employees and retirees 520 of the state and of its political subdivisions, and the 521 dependents, survivors, and beneficiaries of those employees and 522 retirees, are extended the basic protections afforded by 523 governmental retirement systems that provide fair and adequate 524 benefits and that are managed, administered, and funded in an 525 actuarially sound manner as required by s. 14, Article X of the 526 State Constitution and part VII of chapter 112, Florida 527 Statutes. Therefore, the Legislature determines and declares 528 that this act fulfills an important state interest. 529 Section 11. This act shall take effect July 1, 2011.