Bill Text: FL S1902 | 2010 | Regular Session | Introduced

Florida Senate Bill 1902 (Prior Session Legislation)

FL State Legislature page for S1902
Introduced
Bill Title: Public Retirement Plans [WPSC]

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2010-04-30 - Died in Committee on Community Affairs [S1902 Detail]

Download: Florida-2010-S1902-Introduced.html
 
Florida Senate - 2010                                    SB 1902 
 
By Senator Bennett 
21-01291A-10                                          20101902__ 
1                        A bill to be entitled 
2         An act relating to public retirement plans; amending 
3         s. 112.63, F.S.; requiring that a retirement system or 
4         plan include in its actuarial report a projection of 
5         the employer’s annual required contributions and an 
6         experience study; requiring that an enrolled actuary 
7         explain variances in assumptions and actual experience 
8         and provide recommendations; amending s. 112.65, F.S.; 
9         limiting the benefits payable to a member of a 
10         retirement system or plan who has not attained 10 
11         years of service by a certain date; amending s. 
12         112.66, F.S.; requiring the board of trustees of a 
13         retirement system or plan to provide an account report 
14         of its expenses to the Department of Management 
15         Services and to submit its proposed administrative 
16         expense budget to the plan sponsor within a certain 
17         timeframe; amending s. 121.0515, F.S.; revising the 
18         calculations used for upgrading a special risk 
19         member’s contributions for past service; amending s. 
20         175.041, F.S.; revising the applicability of ch. 175, 
21         F.S., to firefighters who are eligible for the Florida 
22         Retirement System; amending s. 175.061, F.S.; limiting 
23         the number of trustees of a firefighters’ pension 
24         trust fund who may also be members of the plan; 
25         amending s. 175.091, F.S.; removing an adjustment 
26         requirement for member contribution rates to a 
27         retirement plan for firefighters; amending s. 175.162, 
28         F.S.; deleting a provision relating to inadequate 
29         state contribution for additional retirement benefits; 
30         amending s. 175.351, F.S.; revising provisions 
31         relating to benefits paid from the premium tax by a 
32         municipality or special fire control district that has 
33         its own pension plan; amending s. 175.371, F.S.; 
34         revising provisions relating to benefits payable by an 
35         existing plan when a firefighter transfers to another 
36         retirement system; creating s. 175.372, F.S.; 
37         providing for the payment of benefits under another 
38         retirement system and the use of premium tax moneys; 
39         amending s. 185.02, F.S.; redefining the term 
40         “compensation” for purposes of calculating police 
41         pensions; amending s. 185.03, F.S.; revising the 
42         applicability of ch. 185, F.S., to police officers who 
43         are eligible for the Florida Retirement System; 
44         amending s. 185.05, F.S.; limiting the number of 
45         trustees of a police officers’ pension trust fund who 
46         may also be members of the plan; amending s. 185.07, 
47         F.S.; removing an adjustment requirement for member 
48         contribution rates to a retirement plan for police 
49         officers; amending s. 185.16, F.S.; deleting a 
50         provision relating to inadequate state contributions 
51         for additional retirement benefits; amending s. 
52         185.35, F.S.; revising provisions relating to benefits 
53         paid by a municipality that has its own pension plan; 
54         amending s. 185.38, F.S.; revising provisions relating 
55         to benefits payable by an existing plan when a police 
56         officer transfers to another retirement system; 
57         creating s. 185.381, F.S.; providing for the payment 
58         of benefits under another retirement system and the 
59         use of premium tax moneys; providing a declaration of 
60         important state interest; providing an effective date. 
61 
62  Be It Enacted by the Legislature of the State of Florida: 
63 
64         Section 1. Paragraph (g) is added to subsection (1) of 
65  section 112.63, Florida Statutes, and subsection (7) is added to 
66  that section, to read: 
67         112.63 Actuarial reports and statements of actuarial 
68  impact; review.— 
69         (1) Each retirement system or plan subject to the 
70  provisions of this act shall have regularly scheduled actuarial 
71  reports prepared and certified by an enrolled actuary. The 
72  actuarial report shall consist of, but shall not be limited to, 
73  the following: 
74         (g) A 5-year projection of the employer’s annual required 
75  contributions for each of the 5 fiscal years immediately 
76  following the date of the actuarial report and which is based on 
77  actual experience for the preceding 5-year period and the 
78  current assumptions and cost methods of the retirement system or 
79  plan. 
80 
81  The actuarial cost methods utilized for establishing the amount 
82  of the annual actuarial normal cost to support the promised 
83  benefits shall only be those methods approved in the Employee 
84  Retirement Income Security Act of 1974 and as permitted under 
85  regulations prescribed by the Secretary of the Treasury. 
86         (7) Each retirement system or plan must have an experience 
87  study prepared and certified by an enrolled actuary at least 
88  once every 5 years. The experience study must compare the 
89  retirement system’s or plan’s actual experience on key factors, 
90  including, but not limited to, investment return, payroll 
91  growth, employee salary changes, employee retirement rates, and 
92  employee turnover, along with the retirement system’s or plan’s 
93  assumptions on each factor. If a retirement system’s or plan’s 
94  actual experience materially varies from a retirement system or 
95  plan assumption, the enrolled actuary shall explain the material 
96  variance and provide a recommendation as to whether a change in 
97  the assumption is appropriate. 
98         Section 2. Subsection (1) of section 112.65, Florida 
99  Statutes, is amended to read: 
100         112.65 Limitation of benefits.— 
101         (1) ESTABLISHMENT OF PROGRAM.— 
102         (a) On or after January 1, 1980, the normal retirement 
103  benefit or pension payable to a retiree who becomes a member of 
104  a any retirement system or plan and who has not previously 
105  participated in such system or plan may, on or after January 1, 
106  1980, shall not exceed 100 percent of his or her average final 
107  compensation. 
108         (b) Notwithstanding paragraph (a), the normal retirement 
109  benefit or pension payable to a member of a retirement system or 
110  plan who has not attained 10 years of credited service under 
111  such a system or plan by July 1, 2010, may not exceed 70 percent 
112  of his or her highest annual base pay, excluding overtime and 
113  other additional compensation. However, if the member’s employer 
114  does not participate in the federal Social Security Act for such 
115  member, the normal retirement benefit or pension payable to the 
116  member may not exceed 90 percent of his or her highest annual 
117  base pay, excluding overtime and other additional compensation. 
118  However, nothing contained in 
119         (c) This section does not shall apply to supplemental 
120  retirement benefits or to pension increases attributable to 
121  cost-of-living increases or adjustments. For the purposes of 
122  this section, benefits accruing in individual participant 
123  accounts established under the Public Employee Optional 
124  Retirement Program established in part II of chapter 121 are 
125  considered supplemental benefits. 
126         (d) As used in this section, the term “average final 
127  compensation” means the average of the member’s earnings over a 
128  period of time which the governmental entity has established by 
129  statute, charter, or ordinance. 
130         Section 3. Subsection (11) is added to section 112.66, 
131  Florida Statutes, to read: 
132         112.66 General provisions.—The following general provisions 
133  relating to the operation and administration of any retirement 
134  system or plan covered by this part shall be applicable: 
135         (11) The board of trustees of each retirement system or 
136  plan shall: 
137         (a) Provide a detailed accounting report of its expenses 
138  for each fiscal year to the plan sponsor and the Department of 
139  Management Services, and shall make the report available to 
140  every member of the retirement system or plan. The report must 
141  include, but need not be limited to, all administrative 
142  expenses, which are defined for the purpose of this subsection 
143  as all expenses relating to any legal counsel, actuary, plan 
144  administrator, and all other consultants, and all travel and 
145  other expenses paid to or on behalf of the members of the board 
146  of trustees or anyone else on behalf of the retirement system or 
147  plan. 
148         (b) Submit its proposed administrative expense budget for 
149  each fiscal year at least 120 days before the beginning of the 
150  fiscal year to the plan sponsor for review and approval. The 
151  expense budget must regulate the administrative expenses of the 
152  board of trustees. The board of trustees may not amend the 
153  budget without the prior approval of the plan sponsor. 
154         Section 4. Subsection (5) of section 121.0515, Florida 
155  Statutes, is amended to read: 
156         121.0515 Special risk membership.— 
157         (5) CREDIT FOR PAST SERVICE.—A special risk member may 
158  purchase retirement credit in the Special Risk Class based upon 
159  past service, and may upgrade retirement credit for such past 
160  service, to the extent of 2 percent of the member’s average 
161  monthly compensation as specified in s. 121.091(1)(a) for such 
162  service as follows: 
163         (a) The member may purchase special risk credit for past 
164  service with a city or special district that which has elected 
165  to join the Florida Retirement System, or with a participating 
166  agency to which a member’s governmental unit was transferred, 
167  merged, or consolidated, as provided in s. 121.081(1)(f), if the 
168  member was employed with the city or special district at the 
169  time it commenced participating in the Florida Retirement System 
170  or with the governmental unit at the time of its transfer, 
171  merger, or consolidation with the participating agency. The 
172  service must satisfy the criteria set forth in subsection (2) 
173  for special risk membership as a law enforcement officer, 
174  firefighter, or correctional officer; however, a no certificate 
175  or waiver of certificate of compliance with s. 943.1395 or s. 
176  633.35 is not shall be required for such service. 
177         (b) Contributions for upgrading the first 2 percent of the 
178  member’s average monthly compensation for the additional special 
179  risk credit pursuant to this subsection shall be equal to the 
180  difference in the contributions paid and the special risk 
181  percentage rate of gross salary in effect at the time of 
182  purchase for the period being claimed, plus interest thereon at 
183  the rate of 4 percent a year compounded annually from the date 
184  of such service until July 1, 1975, and 6.5 percent a year 
185  thereafter until the date of payment. This Past service may be 
186  purchased by the member or by the employer on behalf of the 
187  member. 
188         (c) Contributions for upgrading additional special risk 
189  credit greater than 2 percent but not exceeding 3 percent of the 
190  member’s average monthly compensation must be in an amount 
191  representing the actuarial accrued liability for the difference 
192  in accrual value during the period of service for which credit 
193  is being purchased. Contributions shall be calculated by an 
194  actuary designated by the department using the discount rate and 
195  other relevant actuarial assumptions used to value the Florida 
196  Retirement System defined benefit plan liabilities in the most 
197  recent actuarial valuation. The contribution for service credit 
198  being purchased must be paid by the member or by the employer on 
199  behalf of the member immediately upon notification by the 
200  division. 
201         Section 5. Subsection (3) of section 175.041, Florida 
202  Statutes, is amended to read: 
203         175.041 Firefighters’ Pension Trust Fund created; 
204  applicability of provisions.—For any municipality, special fire 
205  control district, chapter plan, local law municipality, local 
206  law special fire control district, or local law plan under this 
207  chapter: 
208         (3) The provisions of this chapter shall apply only to 
209  municipalities organized and established pursuant to law the 
210  laws of the state and to special fire control districts. This 
211  chapter does, and said provisions shall not apply to the 
212  unincorporated areas of any county or counties, except with 
213  respect to special fire control districts that include 
214  unincorporated areas, or nor shall the provisions hereof apply 
215  to any governmental entity whose firefighters are eligible to 
216  participate in the Florida Retirement System, except as provided 
217  in s. 175.351(5), s. 175.371, or s. 175.372. 
218         (a) Special fire control districts that include, or consist 
219  exclusively of, unincorporated areas of one or more counties may 
220  levy and impose the tax and participate in the retirement 
221  programs enabled by this chapter. 
222         (b) With respect to the distribution of premium taxes, a 
223  single consolidated government consisting of a former county and 
224  one or more municipalities, consolidated pursuant to s. 3 or s. 
225  6(e), Art. VIII of the State Constitution, may is also eligible 
226  to participate under this chapter. The consolidated government 
227  shall notify the division when it has entered into an interlocal 
228  agreement to provide fire services to a municipality within its 
229  boundaries. The municipality may enact an ordinance levying the 
230  tax as provided in s. 175.101. Upon being provided copies of the 
231  interlocal agreement and the municipal ordinance levying the 
232  tax, the division may distribute any premium taxes reported for 
233  the municipality to the consolidated government as long as the 
234  interlocal agreement is in effect. 
235         (c) Any municipality that has entered into an interlocal 
236  agreement to provide fire protection services to any other 
237  incorporated municipality, in its entirety, for a period of 12 
238  months or more may be eligible to receive the premium taxes 
239  reported for such other municipality. In order To be eligible 
240  for such premium taxes, the municipality providing the fire 
241  services must notify the division that it has entered into an 
242  interlocal agreement with another municipality. The municipality 
243  receiving the fire services may enact an ordinance levying the 
244  tax as provided in s. 175.101. Upon being provided copies of the 
245  interlocal agreement and the municipal ordinance levying the 
246  tax, the division may distribute any premium taxes reported for 
247  the municipality receiving the fire services to the 
248  participating municipality providing the fire services as long 
249  as the interlocal agreement is in effect. 
250         Section 6. Paragraph (d) is added to subsection (1) of 
251  section 175.061, Florida Statutes, to read: 
252         175.061 Board of trustees; members; terms of office; 
253  meetings; legal entity; costs; attorney’s fees.—For any 
254  municipality, special fire control district, chapter plan, local 
255  law municipality, local law special fire control district, or 
256  local law plan under this chapter: 
257         (1) In each municipality and in each special fire control 
258  district there is hereby created a board of trustees of the 
259  firefighters’ pension trust fund, which shall be solely 
260  responsible for administering the trust fund. Effective October 
261  1, 1986, and thereafter: 
262         (d) A majority of the members of a board of trustees may 
263  not be members or retirees of the plan for which the board is 
264  administering the trust fund. 
265         Section 7. Paragraph (b) of subsection (2) of section 
266  175.091, Florida Statutes, is amended to read: 
267         175.091 Creation and maintenance of fund.—For any 
268  municipality, special fire control district, chapter plan, local 
269  law municipality, local law special fire control district, or 
270  local law plan under this chapter: 
271         (2) Member contribution rates may be adjusted as follows: 
272         (b) Firefighter member contributions may be increased by 
273  consent of the members’ collective bargaining representative or, 
274  if none, by majority consent of firefighter members of the fund 
275  to provide greater benefits. 
276 
277  Nothing in this section shall be construed to require adjustment 
278  of member contribution rates in effect on the date this act 
279  becomes a law, including rates that exceed 5 percent of salary, 
280  provided that such rates are at least one-half of 1 percent of 
281  salary. 
282         Section 8. Paragraph (a) of subsection (2) of section 
283  175.162, Florida Statutes, is amended to read: 
284         175.162 Requirements for retirement.—For any municipality, 
285  special fire control district, chapter plan, local law 
286  municipality, local law special fire control district, or local 
287  law plan under this chapter, any firefighter who completes 10 or 
288  more years of creditable service as a firefighter and attains 
289  age 55, or completes 25 years of creditable service as a 
290  firefighter and attains age 52, and who for such minimum period 
291  has been a member of the firefighters’ pension trust fund 
292  operating under a chapter plan or local law plan, is eligible 
293  for normal retirement benefits. Normal retirement under the plan 
294  is retirement from the service of the municipality or special 
295  fire control district on or after the normal retirement date. In 
296  such event, payment of retirement income will be governed by the 
297  following provisions of this section: 
298         (2)(a) The amount of monthly retirement income payable to a 
299  full-time firefighter who retires on or after his or her normal 
300  retirement date is shall be an amount equal to the number of his 
301  or her years of credited service multiplied by 2 percent of his 
302  or her average final compensation as a full-time firefighter. 
303  However, if current state contributions pursuant to this chapter 
304  are not adequate to fund the additional benefits to meet the 
305  minimum requirements in this chapter, only such incremental 
306  increases shall be required as state moneys are adequate to 
307  provide. Such increments shall be provided as state moneys 
308  become available. 
309         Section 9. Section 175.351, Florida Statutes, is amended to 
310  read: 
311         175.351 Municipalities and special fire control districts 
312  having their own pension plans for firefighters.—For any 
313  municipality, special fire control district, local law 
314  municipality, local law special fire control district, or local 
315  law plan under this chapter, in order for municipalities and 
316  special fire control districts that have with their own pension 
317  plans for firefighters, or for firefighters and police officers, 
318  where included, to participate in the distribution of the tax 
319  fund established pursuant to s. 175.101, local law plans must 
320  provide extra benefits within those pension plans for 
321  firefighters, or for firefighters and police officers where 
322  included, which are equal to or greater than the value of the 
323  premium tax income received meet the minimum benefits and 
324  minimum standards set forth in this chapter. 
325         (1) PREMIUM TAX INCOME.—If a municipality has a pension 
326  plan for firefighters, or a pension plan for firefighters and 
327  police officers, where included, which in the opinion of the 
328  division meets the minimum benefits and minimum standards set 
329  forth in this chapter, the board of trustees of the pension 
330  plan, as approved by a majority of firefighters of the 
331  municipality, may: 
332         (a) Place the income from the premium tax in s. 175.101 in 
333  such pension plan for the sole and exclusive use of its 
334  firefighters, or for firefighters and police officers, where 
335  included, where it shall become an integral part of that pension 
336  plan and shall be used to pay extra benefits to the firefighters 
337  included in that pension plan; or 
338         (b) Place the income from the premium tax in s. 175.101 in 
339  a separate supplemental plan to pay extra benefits to 
340  firefighters, or to firefighters and police officers where 
341  included, participating in such separate supplemental plan. The 
342  premium tax provided by this chapter must shall in all cases be 
343  used in its entirety to provide extra benefits to firefighters, 
344  or to firefighters and police officers, where included. 
345  Notwithstanding any other provision of this chapter However, 
346  local law plans in effect on October 1, 1998, may shall be 
347  required to comply with the minimum benefit provisions of this 
348  chapter by providing pension benefits that, in the aggregate, 
349  exceed the minimum benefits set forth in this chapter as 
350  determined by the plan’s actuary only to the extent that 
351  additional premium tax revenues become available to 
352  incrementally fund the cost of such compliance as provided in s. 
353  175.162(2)(a). When a plan is in compliance with such minimum 
354  benefit provisions, as subsequent additional premium tax 
355  revenues become available, they shall be used to provide extra 
356  benefits. For the purpose of this chapter, “additional premium 
357  tax revenues” means revenues received by a municipality or 
358  special fire control district pursuant to s. 175.121 which 
359  exceed that amount received for calendar year 1997, and the term 
360  “extra benefits” means benefits that are in addition to or 
361  greater than those provided to general employees of the 
362  municipality regardless of when such benefit was or is provided 
363  and in addition to those in existence for firefighters on March 
364  12, 1999. Local law plans created by special act before May 23, 
365  1939, are shall be deemed to comply with this chapter. 
366         (2) A ADOPTION OR REVISION OF A LOCAL LAW PLAN.—No 
367  retirement plan or amendment to a retirement plan may not shall 
368  be proposed for adoption unless the proposed plan or amendment 
369  contains an actuarial estimate of the costs involved. The No 
370  such proposed plan or proposed plan change may not shall be 
371  adopted without the approval of the municipality, special fire 
372  control district, or, if where permitted, the Legislature. 
373  Copies of the proposed plan or proposed plan change and the 
374  actuarial impact statement of the proposed plan or proposed plan 
375  change shall be furnished to the division prior to the last 
376  public hearing thereon. The impact Such statement must shall 
377  also indicate whether the proposed plan or proposed plan change 
378  is in compliance with s. 14, Art. X of the State Constitution 
379  and those provisions of part VII of chapter 112 which are not 
380  expressly provided in this chapter. Notwithstanding any other 
381  provision, only those local law plans created by special act of 
382  legislation before prior to May 23, 1939, are shall be deemed to 
383  meet the minimum benefits and minimum standards only in this 
384  chapter. 
385         (3) Notwithstanding any other provision, with respect to a 
386  any supplemental plan municipality: 
387         (a) Section 175.032(3)(a) does shall not 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  1999 the effective date of this act. 
391         (b) Section 175.061(1)(b) does shall not 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) shall be 
397  deemed to have been made. 
398         (4) The retirement plan setting forth the benefits and the 
399  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 thereof must 
402  be made available to the participants and to the general public. 
403         (5) A municipality or special fire control district may 
404  establish one or more new plans, or benefit levels within a 
405  plan, which provide different benefit levels for plan members 
406  based on the member’s date of hire if the new plan or benefit 
407  level provides pension benefits that, in the aggregate, meet or 
408  exceed the minimum benefits set forth in this chapter, as 
409  determined by the plan’s actuary. A municipality or special fire 
410  control district may elect to maintain an existing plan and join 
411  the Florida Retirement System for employees hired after a 
412  specified date. A municipality or special fire control district 
413  choosing to operate under this subsection shall use the premium 
414  tax provided under this chapter for the current plan or benefit 
415  level, for any additional plan or benefit level, or for 
416  contributions to the Florida Retirement System. 
417         Section 10. Section 175.371, Florida Statutes, is amended 
418  to read: 
419         175.371 Transfer to another state retirement system; 
420  benefits payable.—For any municipality, special fire control 
421  district, chapter plan, local law municipality, local law 
422  special fire control district, or local law plan under this 
423  chapter: 
424         (1) Any firefighter who has a vested right to benefits 
425  under a pension plan created pursuant to the provisions of this 
426  chapter and who elects to participate in another state 
427  retirement system may not receive a benefit under the other 
428  provisions of the latter retirement system for any period of 
429  year’s service for which benefits are paid under the provisions 
430  of the pension plan created pursuant to this chapter. 
431         (2) If When every active participant in any pension plan 
432  created pursuant to this chapter elects to transfer to another 
433  state retirement system, the pension plan created pursuant to 
434  this chapter shall be terminated and the assets distributed in 
435  accordance with s. 175.361. If, upon joining another state 
436  retirement system as the result of a transfer, merger, or 
437  consolidation of governmental services, or the municipality’s or 
438  special fire control district’s election to participate in such 
439  system, some participants in a pension plan subject created 
440  pursuant to this chapter elect to transfer to another state 
441  retirement system and other participants elect to remain in the 
442  existing plan created pursuant to this chapter, the existing 
443  plan created pursuant to this chapter shall continue to receive 
444  state premium tax moneys until fully funded. If the plan is 
445  fully funded at a particular valuation date and not fully funded 
446  at a later valuation date, the plan shall resume receipt of 
447  state premium tax moneys until the plan is once again fully 
448  funded. The term “fully funded” means that the present value of 
449  all benefits, accrued and projected, is less than the available 
450  assets and the present value of future member contributions and 
451  future plan sponsor contributions on an actuarial entry age cost 
452  funding basis. Effective May 31, 1998, for plans discussed 
453  herein, the plan shall remain in effect until the final benefit 
454  payment has been made to the last participant or beneficiary and 
455  shall then be terminated in accordance with s. 175.361. 
456         Section 11. Section 175.372, Florida Statutes, is created 
457  to read: 
458         175.372 Benefits under another retirement system or pension 
459  program.—For any municipality, special fire control district, 
460  chapter plan, local law municipality, local law special fire 
461  control district, or local law plan under this chapter: 
462         (1) A firefighter who has a vested right to benefits under 
463  the pension plan may not receive a benefit under a new 
464  retirement system or pension program for any period of service 
465  for which benefits are being paid pursuant to the pension plan 
466  subject to this chapter. 
467         (2) If a municipality or special fire control district 
468  chooses to create or transfer to another retirement system or 
469  pension program, including, but not limited to, a defined 
470  contribution program, for all or a portion of its active 
471  firefighters who are in a pension plan subject to this chapter, 
472  or for firefighters hired after a date certain, the municipality 
473  or special fire control district shall continue to receive state 
474  premium tax moneys and must use those funds as needed to fully 
475  fund a preexisting plan subject to this chapter or to reduce the 
476  required contributions of the municipality or special fire 
477  control district to the new retirement system or pension 
478  program. 
479         Section 12. Subsection (4) of section 185.02, Florida 
480  Statutes, is amended to read: 
481         185.02 Definitions.—For any municipality, chapter plan, 
482  local law municipality, or local law plan under this chapter, 
483  the following words and phrases as used in this chapter shall 
484  have the following meanings, unless a different meaning is 
485  plainly required by the context: 
486         (4) “Compensation” or “salary” means the fixed monthly 
487  total cash remuneration including “overtime” paid by the primary 
488  employer to a police officer for services rendered, but not 
489  including any payments for extra duty or a special detail work 
490  performed on behalf of a second party employer. However, a local 
491  law plan may limit the amount of overtime payments which can be 
492  used for retirement benefit calculation purposes, but in no 
493  event shall such overtime limit be less than 300 hours per 
494  officer per calendar year. 
495         (a) Any retirement trust fund or plan that which now or 
496  hereafter meets the requirements of this chapter may shall not, 
497  solely by virtue of this subsection, reduce or diminish the 
498  monthly retirement income otherwise payable to each police 
499  officer covered by the retirement trust fund or plan. 
500         (b) The member’s compensation or salary contributed as 
501  employee-elective salary reductions or deferrals to any salary 
502  reduction, deferred compensation, or tax-sheltered annuity 
503  program authorized under the Internal Revenue Code shall be 
504  deemed to be the compensation or salary the member would receive 
505  if he or she were not participating in such program and shall be 
506  treated as compensation for retirement purposes under this 
507  chapter. 
508         (c) For any person who first becomes a member in a any plan 
509  year beginning on or after January 1, 1996, compensation for a 
510  any plan year may shall not include any amounts in excess of the 
511  Internal Revenue Code s. 401(a)(17) limitation, (as amended by 
512  the Omnibus Budget Reconciliation Act of 1993), which limitation 
513  of $150,000 shall be adjusted as required by federal law for 
514  qualified government plans and shall be further adjusted for 
515  changes in the cost of living in the manner provided by Internal 
516  Revenue Code s. 401(a)(17)(B). For any person who first became a 
517  member before prior to the first plan year beginning on or after 
518  January 1, 1996, the limitation on compensation shall be at 
519  least not less than the maximum compensation amount that was 
520  allowed to be taken into account under the plan as in effect on 
521  July 1, 1993, which limitation shall be adjusted for changes in 
522  the cost of living since 1989 as in the manner provided by 
523  Internal Revenue Code s. 401(a)(17)(1991). 
524         Section 13. Subsection (2) of section 185.03, Florida 
525  Statutes, is amended to read: 
526         185.03 Municipal police officers’ retirement trust funds; 
527  creation; applicability of provisions; participation by public 
528  safety officers.—For any municipality, chapter plan, local law 
529  municipality, or local law plan under this chapter: 
530         (2) The provisions of this chapter shall apply only to 
531  municipalities organized and established pursuant to the laws of 
532  the state, and do said provisions shall not apply to the 
533  unincorporated areas of any county or counties or nor shall the 
534  provisions hereof apply to any governmental entity whose police 
535  officers are eligible to participate in the Florida Retirement 
536  System, except as provided in s. 185.35(5), s. 185.38, or s. 
537  185.381. 
538         Section 14. Present paragraphs (c) and (d) of subsection 
539  (1) of section 185.05, Florida Statutes, are redesignated as 
540  paragraphs (d) and (e), respectively, and a new paragraph (c) is 
541  added to that subsection, to read: 
542         185.05 Board of trustees; members; terms of office; 
543  meetings; legal entity; costs; attorney’s fees.—For any 
544  municipality, chapter plan, local law municipality, or local law 
545  plan under this chapter: 
546         (1) In each municipality described in s. 185.03 there is 
547  hereby created a board of trustees of the municipal police 
548  officers’ retirement trust fund, which shall be solely 
549  responsible for administering the trust fund. Effective October 
550  1, 1986, and thereafter: 
551         (c) A majority of the members of a board of trustees may 
552  not be members or retirees of the plan for which the board is 
553  administering the trust fund. 
554         Section 15. Paragraph (b) of subsection (2) of section 
555  185.07, Florida Statutes, is amended to read: 
556         185.07 Creation and maintenance of fund.—For any 
557  municipality, chapter plan, local law municipality, or local law 
558  plan under this chapter: 
559         (2) Member contribution rates may be adjusted as follows: 
560         (b) Police officer member contributions may be increased by 
561  consent of the members’ collective bargaining representative or, 
562  if none, by majority consent of police officer members of the 
563  fund to provide greater benefits. 
564 
565  Nothing in this section shall be construed to require adjustment 
566  of member contribution rates in effect on the date this act 
567  becomes a law, including rates that exceed 5 percent of salary, 
568  provided that such rates are at least one-half of 1 percent of 
569  salary. 
570         Section 16. Subsection (2) of section 185.16, Florida 
571  Statutes, is amended to read: 
572         185.16 Requirements for retirement.—For any municipality, 
573  chapter plan, local law municipality, or local law plan under 
574  this chapter, any police officer who completes 10 or more years 
575  of creditable service as a police officer and attains age 55, or 
576  completes 25 years of creditable service as a police officer and 
577  attains age 52, and for such period has been a member of the 
578  retirement fund is eligible for normal retirement benefits. 
579  Normal retirement under the plan is retirement from the service 
580  of the city on or after the normal retirement date. In such 
581  event, for chapter plans and local law plans, payment of 
582  retirement income will be governed by the following provisions 
583  of this section: 
584         (2) The amount of the monthly retirement income payable to 
585  a police officer who retires on or after his or her normal 
586  retirement date is shall be an amount equal to the number of the 
587  police officer’s years of credited service multiplied by 2 
588  percent of his or her average final compensation. However, if 
589  current state contributions pursuant to this chapter are not 
590  adequate to fund the additional benefits to meet the minimum 
591  requirements in this chapter, only increment increases shall be 
592  required as state moneys are adequate to provide. Such 
593  increments shall be provided as state moneys become available. 
594         Section 17. Section 185.35, Florida Statutes, is amended to 
595  read: 
596         185.35 Municipalities having their own pension plans for 
597  police officers.—For any municipality, chapter plan, local law 
598  municipality, or local law plan under this chapter, in order for 
599  municipalities that have with their own pension plans for police 
600  officers, or for police officers and firefighters where 
601  included, to participate in the distribution of the tax fund 
602  established pursuant to s. 185.08, local law plans must provide 
603  extra benefits within those pension plans for police officers, 
604  or for police officers and firefighters where included, which 
605  are equal to or greater than the value of the premium tax income 
606  received. meet the minimum benefits and minimum standards set 
607  forth in this chapter: 
608         (1) PREMIUM TAX INCOME.—If a municipality has a pension 
609  plan for police officers, or for police officers and 
610  firefighters where included, which, in the opinion of the 
611  division, meets the minimum benefits and minimum standards set 
612  forth in this chapter, the board of trustees of the pension 
613  plan, as approved by a majority of police officers of the 
614  municipality, may: 
615         (a) Place the income from the premium tax in s. 185.08 in 
616  such pension plan for the sole and exclusive use of its police 
617  officers, or its police officers and firefighters where 
618  included, where it shall become an integral part of that pension 
619  plan and shall be used to pay extra benefits to the police 
620  officers included in that pension plan; or 
621         (b) May place the income from the premium tax in s. 185.08 
622  in a separate supplemental plan to pay extra benefits to the 
623  police officers, or police officers and firefighters where 
624  included, participating in such separate supplemental plan. The 
625  premium tax provided by this chapter must shall in all cases be 
626  used in its entirety to provide extra benefits to police 
627  officers, or to police officers and firefighters, where 
628  included. Notwithstanding any other provision of this chapter 
629  However, local law plans in effect on October 1, 1998, may shall 
630  be required to comply with the minimum benefit provisions of 
631  this chapter by providing pension benefits that, in the 
632  aggregate, exceed the minimum benefits set forth in this chapter 
633  as determined by the plan’s actuary only to the extent that 
634  additional premium tax revenues become available to 
635  incrementally fund the cost of such compliance as provided in s. 
636  185.16(2). When a plan is in compliance with such minimum 
637  benefit provisions, as subsequent additional tax revenues become 
638  available, they shall be used to provide extra benefits. For the 
639  purpose of this chapter, “additional premium tax revenues” means 
640  revenues received by a municipality pursuant to s. 185.10 which 
641  exceed the amount received for calendar year 1997, and the term 
642  “extra benefits” means benefits that are in addition to or 
643  greater than those provided to general employees of the 
644  municipality regardless of when such additional or greater 
645  benefit was or is provided and in addition to those in existence 
646  for police officers on March 12, 1999. Local law plans created 
647  by special act before May 23, 1939, are shall be deemed to 
648  comply with this chapter. 
649         (2) A ADOPTION OR REVISION OF A LOCAL LAW PLAN.—No 
650  retirement plan or amendment to a retirement plan may not shall 
651  be proposed for adoption unless the proposed plan or amendment 
652  contains an actuarial estimate of the costs involved. The No 
653  such proposed plan or proposed plan change may not shall be 
654  adopted without the approval of the municipality or, if where 
655  permitted, the Legislature. Copies of the proposed plan or 
656  proposed plan change and the actuarial impact statement of the 
657  proposed plan or proposed plan change shall be furnished to the 
658  division prior to the last public hearing thereon. The impact 
659  Such statement must shall also indicate whether the proposed 
660  plan or proposed plan change is in compliance with s. 14, Art. X 
661  of the State Constitution and those provisions of part VII of 
662  chapter 112 which are not expressly provided in this chapter. 
663  Notwithstanding any other provision, only those local law plans 
664  created by special act of legislation before prior to May 23, 
665  1939, are shall be deemed to meet the minimum benefits and 
666  minimum standards only in this chapter. 
667         (3) Notwithstanding any other provision, with respect to a 
668  any supplemental plan municipality: 
669         (a) Section 185.02(4)(a) shall not apply, and a local law 
670  plan and a supplemental plan may continue to use their 
671  definition of compensation or salary in existence on March 12, 
672  1999 the effective date of this act. 
673         (b) Section 185.05(1)(b) shall not apply, and a local law 
674  plan and a supplemental plan shall continue to be administered 
675  by a board or boards of trustees numbered, constituted, and 
676  selected as the board or boards were numbered, constituted, and 
677  selected on December 1, 2000. 
678         (c) The election set forth in paragraph (1)(b) shall be 
679  deemed to have been made. 
680         (4) The retirement plan setting forth the benefits and the 
681  trust agreement, if any, covering the duties and 
682  responsibilities of the trustees and the regulations of the 
683  investment of funds must be in writing and copies must be made 
684  available to the participants and to the general public. 
685         (5) A municipality may establish one or more new plans, or 
686  benefit levels within a plan, which provide different benefit 
687  levels for plan members based on the member’s date of hire if 
688  the new plan or benefit level provides pension benefits that, in 
689  the aggregate, meet or exceed the minimum benefits set forth in 
690  this chapter, as determined by the plan’s actuary. A 
691  municipality may elect to maintain an existing plan and join the 
692  Florida Retirement System for employees hired after a specified 
693  date. A municipality choosing to operate under this subsection 
694  shall use the premium tax provided under this chapter for the 
695  current plan or benefit level, for any additional plan or 
696  benefit level, or for contributions to the Florida Retirement 
697  System. 
698         Section 18. Section 185.38, Florida Statutes, is amended to 
699  read: 
700         185.38 Transfer to another state retirement system; 
701  benefits payable.—For any municipality, chapter plan, local law 
702  municipality, or local law plan under this chapter: 
703         (1) Any police officer who has a vested right to benefits 
704  under a pension plan created pursuant to the provisions of this 
705  chapter and who elects to participate in another state 
706  retirement system may not receive a benefit under the other the 
707  provisions of the latter retirement system for any period of 
708  year’s service for which benefits are paid under the provisions 
709  of the pension plan created pursuant to this chapter. 
710         (2) If When every active participant in any pension plan 
711  created pursuant to this chapter elects to transfer to another 
712  state retirement system, the pension plan created pursuant to 
713  this chapter shall be terminated and the assets distributed in 
714  accordance with s. 185.37. If, upon joining another state 
715  retirement system as the result of a transfer, merger, or 
716  consolidation of governmental services, or as the municipality’s 
717  election to participate in such system, some participants in a 
718  pension plan subject created pursuant to this chapter elect to 
719  transfer to another state retirement system and other 
720  participants elect to remain in the existing plan created 
721  pursuant to this chapter, the existing plan created pursuant to 
722  this chapter shall continue to receive state premium tax moneys 
723  until fully funded. If the plan is fully funded at a particular 
724  valuation date and not fully funded at a later valuation date, 
725  the plan shall resume receipt of state premium tax moneys until 
726  the plan is once again determined to be fully funded. The term 
727  “fully funded” means that the present value of all benefits, 
728  accrued and projected, is less than the available assets and the 
729  present value of future member contributions and future plan 
730  sponsor contributions on an actuarial entry age cost funding 
731  basis. Effective May 31, 1998, for plans discussed herein, the 
732  plan shall remain in effect until the final benefit payment has 
733  been made to the last participant or beneficiary and shall then 
734  be terminated in accordance with s. 185.37. 
735         Section 19. Section 185.381, Florida Statutes, is created 
736  to read: 
737         185.381 Benefits under another retirement system or pension 
738  program.—For any municipality, chapter plan, local law 
739  municipality, or local law plan under this chapter: 
740         (1) A police officer who has a vested right to benefits 
741  under the pension plan may not receive a benefit under a new 
742  retirement system or pension program for any period of service 
743  for which benefits are paid pursuant to the pension plan subject 
744  to this chapter. 
745         (2) If a municipality chooses to create or transfer to 
746  another retirement system or pension program, including, but not 
747  limited to, a defined contribution program, for all or a portion 
748  of its active police officers who are in a pension plan subject 
749  to this chapter, or for police officers hired after a date 
750  certain, the municipality shall continue to receive state 
751  premium tax moneys and must use those funds as needed to fully 
752  fund a preexisting plan subject to this chapter or to reduce the 
753  required contributions of the municipality to the new retirement 
754  system or pension program. 
755         Section 20. The Legislature finds that a proper and 
756  legitimate state purpose is served when employees and retirees 
757  of the state and its political subdivisions, and the dependents, 
758  survivors, and beneficiaries of such employees and retirees, are 
759  extended the basic protections afforded by governmental 
760  retirement systems. These persons must be provided benefits that 
761  are fair and adequate and that are managed, administered, and 
762  funded in an actuarially sound manner, as required by s. 14, 
763  Article X of the State Constitution and part VII of chapter 112, 
764  Florida Statutes. Therefore, the Legislature determines and 
765  declares that this act fulfills an important state interest. 
766         Section 21. This act shall take effect July 1, 2010.