Florida Senate - 2013                        COMMITTEE AMENDMENT
       Bill No. CS for SB 458
       
       
       
       
       
       
                                Barcode 595556                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/05/2013           .                                
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       The Committee on Appropriations (Ring and Bradley) recommended
       the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (2) of section 175.021, Florida
    6  Statutes, is amended to read:
    7         175.021 Legislative declaration.—
    8         (2) This chapter hereby establishes, for all municipal and
    9  special district pension plans existing now or hereafter under
   10  this chapter, including chapter plans and local law plans,
   11  required minimum benefits and minimum standards for the
   12  operation and funding of such plans, hereinafter referred to as
   13  firefighters’ pension trust funds, which must be met as a
   14  condition precedent to the plan or plan sponsor receiving a
   15  distribution of insurance premium tax revenues under s. 175.121.
   16  The required minimum benefits and minimum standards for each
   17  plan as set forth in this chapter may not be diminished by local
   18  charter, ordinance, or resolution or by special act of the
   19  Legislature, or nor may the minimum benefits or minimum
   20  standards be reduced or offset by any other local, state, or
   21  federal law that may include firefighters in its operation,
   22  except as provided under s. 112.65.
   23         Section 2. Section 175.032, Florida Statutes, is amended to
   24  read:
   25         175.032 Definitions.—For any municipality, special fire
   26  control district, chapter plan, local law municipality, local
   27  law special fire control district, or local law plan under this
   28  chapter, the term following words and phrases have the following
   29  meanings:
   30         (1) “Additional premium tax revenues” means revenues
   31  received by a municipality or special fire control district
   32  pursuant to s. 175.121 which exceed base premium tax revenues.
   33         (2)(1)(a) “Average final compensation” for:
   34         (a) A full-time firefighter means one-twelfth of the
   35  average annual compensation of the 5 best years of the last 10
   36  years of creditable service before prior to retirement,
   37  termination, or death, or the career average as a full-time
   38  firefighter since July 1, 1953, whichever is greater. A year is
   39  shall be 12 consecutive months or such other consecutive period
   40  of time as is used and consistently applied.
   41         (b) “Average final compensation” for A volunteer
   42  firefighter means the average salary of the 5 best years of the
   43  last 10 best contributing years before a prior to change in
   44  status to a permanent full-time firefighter or retirement as a
   45  volunteer firefighter or the career average of a volunteer
   46  firefighter, since July 1, 1953, whichever is greater.
   47         (3) “Base benefits” means the level of benefits in
   48  existence for firefighters on March 12, 1999.
   49         (4) “Base premium tax revenues” means revenues received by
   50  a municipality or special fire control district pursuant to s.
   51  175.121 equal to the amount of such revenues received for
   52  calendar year 1997.
   53         (5)(2) “Chapter plan” means a separate defined benefit
   54  pension plan for firefighters which incorporates by reference
   55  the provisions of this chapter and has been adopted by the
   56  governing body of a municipality or special district. Except as
   57  may be specifically authorized in this chapter, the provisions
   58  of a chapter plan may not differ from the plan provisions set
   59  forth in ss. 175.021-175.341 and 175.361-175.401. Actuarial
   60  valuations of chapter plans shall be conducted by the division
   61  as provided by s. 175.261(1).
   62         (6)(3) “Compensation” or “salary” means, for
   63  noncollectively bargained service earned before July 1, 2011, or
   64  for service earned under collective bargaining agreements in
   65  place before July 1, 2011, the fixed monthly remuneration paid a
   66  firefighter. If remuneration is based on actual services
   67  rendered, as in the case of a volunteer firefighter, the term
   68  means the total cash remuneration received yearly for such
   69  services, prorated on a monthly basis. For noncollectively
   70  bargained service earned on or after July 1, 2011, or for
   71  service earned under collective bargaining agreements entered
   72  into on or after July 1, 2011, the term has the same meaning
   73  except that when calculating retirement benefits, up to 300
   74  hours per year in overtime compensation may be included as
   75  specified in the plan or collective bargaining agreement, but
   76  payments for accrued unused sick or annual leave may not be
   77  included.
   78         (a) Any retirement trust fund or plan that meets the
   79  requirements of this chapter does not, solely by virtue of this
   80  subsection, reduce or diminish the monthly retirement income
   81  otherwise payable to each firefighter covered by the retirement
   82  trust fund or plan.
   83         (b) The member’s compensation or salary contributed as
   84  employee-elective salary reductions or deferrals to any salary
   85  reduction, deferred compensation, or tax-sheltered annuity
   86  program authorized under the Internal Revenue Code shall be
   87  deemed to be the compensation or salary the member would receive
   88  if he or she were not participating in such program and shall be
   89  treated as compensation for retirement purposes under this
   90  chapter.
   91         (c) For any person who first becomes a member in any plan
   92  year beginning on or after January 1, 1996, compensation for
   93  that plan year may not include any amounts in excess of the
   94  Internal Revenue Code s. 401(a)(17) limitation, as amended by
   95  the Omnibus Budget Reconciliation Act of 1993, which limitation
   96  of $150,000 shall be adjusted as required by federal law for
   97  qualified government plans and shall be further adjusted for
   98  changes in the cost of living in the manner provided by Internal
   99  Revenue Code s. 401(a)(17)(B). For any person who first became a
  100  member before the first plan year beginning on or after January
  101  1, 1996, the limitation on compensation may not be less than the
  102  maximum compensation amount that was allowed to be taken into
  103  account under the plan in effect on July 1, 1993, which
  104  limitation shall be adjusted for changes in the cost of living
  105  since 1989 in the manner provided by Internal Revenue Code s.
  106  401(a)(17)(1991).
  107         (7)(4) “Creditable service” or “credited service” means the
  108  aggregate number of years of service, and fractional parts of
  109  years of service, of any firefighter, omitting intervening years
  110  and fractional parts of years when such firefighter may not have
  111  been employed by the municipality or special fire control
  112  district, subject to the following conditions:
  113         (a) A No firefighter may not will receive credit for years
  114  or fractional parts of years of service if he or she has
  115  withdrawn his or her contributions to the fund for those years
  116  or fractional parts of years of service, unless the firefighter
  117  repays into the fund the amount he or she has withdrawn, plus
  118  interest determined by the board. The member shall have at least
  119  90 days after his or her reemployment to make repayment.
  120         (b) A firefighter may voluntarily leave his or her
  121  contributions in the fund for a period of 5 years after leaving
  122  the employ of the fire department, pending the possibility of
  123  being rehired by the same department, without losing credit for
  124  the time he or she has participated actively as a firefighter.
  125  If the firefighter is not reemployed as a firefighter, with the
  126  same department, within 5 years, his or her contributions shall
  127  be returned without interest.
  128         (c) Credited service under this chapter shall be provided
  129  only for service as a firefighter, as defined in subsection (8),
  130  or for military service and does not include credit for any
  131  other type of service. A municipality may, by local ordinance,
  132  or a special fire control district may, by resolution, may
  133  provide for the purchase of credit for military service prior to
  134  employment as well as for prior service as a firefighter for
  135  some other employer as long as a firefighter is not entitled to
  136  receive a benefit for such prior service as a firefighter. For
  137  purposes of determining credit for prior service as a
  138  firefighter, in addition to service as a firefighter in this
  139  state, credit may be given for federal, other state, or county
  140  service if the prior service is recognized by the Division of
  141  State Fire Marshal as provided under chapter 633, or the
  142  firefighter provides proof to the board of trustees that his or
  143  her service is equivalent to the service required to meet the
  144  definition of a firefighter under subsection (12) (8).
  145         (8)(5) “Deferred Retirement Option Plan” or “DROP” means a
  146  local law plan retirement option in which a firefighter may
  147  elect to participate. A firefighter may retire for all purposes
  148  of the plan and defer receipt of retirement benefits into a DROP
  149  account while continuing employment with his or her employer.
  150  However, a firefighter who enters the DROP and who is otherwise
  151  eligible to participate may shall not thereby be precluded from
  152  participating, or continuing to participate, in a supplemental
  153  plan in existence on, or created after, March 12, 1999 the
  154  effective date of this act.
  155         (9) “Defined contribution plan” means the component of a
  156  local law plan to which deposits are made to provide benefits
  157  for firefighters, or for firefighters and police officers if
  158  both are included. Such component is an element of a local law
  159  plan and exists in conjunction with the defined benefit
  160  component that meets the required benefits and minimum standards
  161  of this chapter. The retirement benefits of the defined
  162  contribution plan shall be provided through individual member
  163  accounts, in accordance with the applicable provisions of the
  164  Internal Revenue Code and related regulations, and are limited
  165  to the contributions made into each member’s account and the
  166  actual accumulated earnings, net of expenses, earned on the
  167  member’s account.
  168         (10)(6) “Division” means the Division of Retirement of the
  169  Department of Management Services.
  170         (11)(7) “Enrolled actuary” means an actuary who is enrolled
  171  under Subtitle C of Title III of the Employee Retirement Income
  172  Security Act of 1974 and who is a member of the Society of
  173  Actuaries or the American Academy of Actuaries.
  174         (12)(8)(a) “Firefighter” means any person employed solely
  175  by a constituted fire department of any municipality or special
  176  fire control district who is certified as a firefighter as a
  177  condition of employment in accordance with s. 633.35 and whose
  178  duty it is to extinguish fires, to protect life, or to protect
  179  property. The term includes all certified, supervisory, and
  180  command personnel whose duties include, in whole or in part, the
  181  supervision, training, guidance, and management responsibilities
  182  of full-time firefighters, part-time firefighters, or auxiliary
  183  firefighters but does not include part-time firefighters or
  184  auxiliary firefighters. However, for purposes of this chapter
  185  only, the term also includes public safety officers who are
  186  responsible for performing both police and fire services, who
  187  are certified as police officers or firefighters, and who are
  188  certified by their employers to the Chief Financial Officer as
  189  participating in this chapter before October 1, 1979. Effective
  190  October 1, 1979, public safety officers who have not been
  191  certified as participating in this chapter are considered police
  192  officers for retirement purposes and are eligible to participate
  193  in chapter 185. Any plan may provide that the fire chief has an
  194  option to participate, or not, in that plan.
  195         (b) “Volunteer firefighter” means any person whose name is
  196  carried on the active membership roll of a constituted volunteer
  197  fire department or a combination of a paid and volunteer fire
  198  department of any municipality or special fire control district
  199  and whose duty it is to extinguish fires, to protect life, and
  200  to protect property. Compensation for services rendered by a
  201  volunteer firefighter does shall not disqualify him or her as a
  202  volunteer. A person may shall not be disqualified as a volunteer
  203  firefighter solely because he or she has other gainful
  204  employment. Any person who volunteers assistance at a fire but
  205  is not an active member of a department described herein is not
  206  a volunteer firefighter within the meaning of this paragraph.
  207         (13)(9) “Firefighters’ Pension Trust Fund” means a trust
  208  fund, by whatever name known, as provided under s. 175.041, for
  209  the purpose of assisting municipalities and special fire control
  210  districts in establishing and maintaining a retirement plan for
  211  firefighters.
  212         (14)(10) “Local law municipality” is any municipality in
  213  which there exists a local law plan exists.
  214         (15)(11) “Local law plan” means a retirement defined
  215  benefit pension plan, which includes both a defined benefit plan
  216  component and a defined contribution plan component, for
  217  firefighters, or for firefighters or police officers if both are
  218  where included, as described in s. 175.351, established by
  219  municipal ordinance, special district resolution, or special act
  220  of the Legislature, which enactment sets forth all plan
  221  provisions. Local law plan provisions may vary from the
  222  provisions of this chapter if the, provided that required
  223  minimum benefits and minimum standards of this chapter are met.
  224  However, any such variance must shall provide a greater benefit
  225  for firefighters. Actuarial valuations of local law plans shall
  226  be conducted by an enrolled actuary as provided in s.
  227  175.261(2).
  228         (16)(12) “Local law special fire control district” is any
  229  special fire control district in which there exists a local law
  230  plan exists.
  231         (17) “Long-term funded ratio” or “funded ratio” means the
  232  ratio of the actuarial value of assets of the plan to the
  233  actuarial accrued liabilities of the plan, as reported in the
  234  most recent actuarial valuation of the plan, deemed to be in
  235  compliance with chapter 112 by the Department of Management
  236  Services.
  237         (18) “Minimum benefits” means the benefits set forth in ss.
  238  175.021-175.341 and ss. 175.361-175.401.
  239         (19) “Minimum standards” means the standards set forth in
  240  ss. 175.021-175.341 and ss. 175.361-175.401.
  241         (20)(13) “Property insurance” means property insurance as
  242  defined in s. 624.604 and covers real and personal property
  243  within the corporate limits of a any municipality, or within the
  244  boundaries of a any special fire control district, within the
  245  state. “Multiple peril” means a combination or package policy
  246  that includes both property and casualty coverage for a single
  247  premium.
  248         (21) “Required benefits” means the lesser of the minimum
  249  benefits set forth in this chapter and the base benefits of the
  250  plan. For local law plans created after March 1, 2013, the
  251  required benefits are the minimum benefits set forth in this
  252  chapter.
  253         (22)(14) “Retiree” or “retired firefighter” means a
  254  firefighter who has entered retirement status. For the purposes
  255  of a plan that includes a Deferred Retirement Option Plan
  256  (DROP), a firefighter who enters the DROP is shall be considered
  257  a retiree for all purposes of the plan. However, a firefighter
  258  who enters the DROP and who is otherwise eligible to participate
  259  may shall not thereby be precluded from participating, or
  260  continuing to participate, in a supplemental plan in existence
  261  on, or created after, March 12, 1999 the effective date of this
  262  act.
  263         (23)(15) “Retirement” means a firefighter’s separation from
  264  city or fire district employment as a firefighter with immediate
  265  eligibility for receipt of benefits under the plan. For purposes
  266  of a plan that includes a Deferred Retirement Option Plan
  267  (DROP), “retirement” means the date a firefighter enters the
  268  DROP.
  269         (24) “Special benefits” means benefits provided in a
  270  defined contribution plan for firefighters.
  271         (25)(16) “Special fire control district” means a special
  272  district, as defined in s. 189.403(1), established for the
  273  purposes of extinguishing fires, protecting life, and protecting
  274  property within the incorporated or unincorporated portions of a
  275  any county or combination of counties, or within any combination
  276  of incorporated and unincorporated portions of a any county or
  277  combination of counties. The term does not include any dependent
  278  or independent special district, as those terms are defined in
  279  s. 189.403(2) and (3), respectively, the employees of which are
  280  members of the Florida Retirement System pursuant to s.
  281  121.051(1) or (2).
  282         (26)(17) “Supplemental plan” means a plan to which deposits
  283  are made to provide extra benefits for firefighters, or for
  284  firefighters and police officers if both are where included
  285  under this chapter. Such a plan is an element of a local law
  286  plan and exists in conjunction with a defined benefit component
  287  plan that meets the required minimum benefits and minimum
  288  standards of this chapter. Any supplemental plan in existence on
  289  March 1, 2013, shall be deemed to be a defined contribution plan
  290  in compliance with s. 175.351(8).
  291         (27)(18) “Supplemental plan municipality” means a any local
  292  law municipality in which there existed a supplemental plan
  293  existed, of any type or nature, as of December 1, 2000.
  294         Section 3. Paragraph (b) of subsection (7) of section
  295  175.071, Florida Statutes, is amended to read:
  296         175.071 General powers and duties of board of trustees.—For
  297  any municipality, special fire control district, chapter plan,
  298  local law municipality, local law special fire control district,
  299  or local law plan under this chapter:
  300         (7) To assist the board in meeting its responsibilities
  301  under this chapter, the board, if it so elects, may:
  302         (b) Employ an independent enrolled actuary, as defined in
  303  s. 175.032(7), at the pension fund’s expense.
  304  
  305  If the board chooses to use the municipality’s or special
  306  district’s legal counsel or actuary, or chooses to use any of
  307  the municipality’s or special district’s other professional,
  308  technical, or other advisers, it must do so only under terms and
  309  conditions acceptable to the board.
  310         Section 4. Paragraphs (d) through (g) of subsection (1) of
  311  section 175.091, Florida Statutes, are amended, and a new
  312  paragraph (e) is added to that subsection, to read:
  313         175.091 Creation and maintenance of fund.—For any
  314  municipality, special fire control district, chapter plan, local
  315  law municipality, local law special fire control district, or
  316  local law plan under this chapter:
  317         (1) The firefighters’ pension trust fund in each
  318  municipality and in each special fire control district shall be
  319  created and maintained in the following manner:
  320         (d) By mandatory payment by the municipality or special
  321  fire control district of a sum equal to the normal cost of and
  322  the amount required to fund any actuarial deficiency shown by an
  323  actuarial valuation as provided in part VII of chapter 112 after
  324  taking into account the amounts described in paragraphs (b),
  325  (c), (f), (g), and (h) and the amounts of the tax proceeds
  326  described in paragraph (a) which must be used to fund defined
  327  benefit plan benefits, except as otherwise excluded from
  328  consideration in determining the mandatory payment.
  329         (e) For local law plans, and in addition to the mandatory
  330  payment specified in paragraph (d), by mandatory payment by the
  331  municipality or special fire control district of the amount
  332  specified in s. 175.351(3), if the long-term funded ratio of the
  333  plan is less than 80 percent.
  334         (f)(e) By all gifts, bequests, and devises when donated to
  335  the fund.
  336         (g)(f) By all accretions to the fund by way of interest or
  337  dividends on bank deposits, or otherwise.
  338         (h)(g) By all other sources or income now or hereafter
  339  authorized by law for the augmentation of such firefighters’
  340  pension trust fund.
  341  
  342  Nothing in this section shall be construed to require adjustment
  343  of member contribution rates in effect on the date this act
  344  becomes a law, including rates that exceed 5 percent of salary,
  345  provided that such rates are at least one-half of 1 percent of
  346  salary.
  347         Section 5. Paragraph (a) of subsection (2) of section
  348  175.162, Florida Statutes, is amended to read:
  349         175.162 Requirements for retirement.—For any municipality,
  350  special fire control district, chapter plan, local law
  351  municipality, local law special fire control district, or local
  352  law plan under this chapter, any firefighter who completes 10 or
  353  more years of creditable service as a firefighter and attains
  354  age 55, or completes 25 years of creditable service as a
  355  firefighter and attains age 52, and who for such minimum period
  356  has been a member of the firefighters’ pension trust fund
  357  operating under a chapter plan or local law plan, is eligible
  358  for normal retirement benefits. Normal retirement under the plan
  359  is retirement from the service of the municipality or special
  360  fire control district on or after the normal retirement date. In
  361  such event, payment of retirement income will be governed by the
  362  following provisions of this section:
  363         (2)(a) The amount of monthly retirement income payable to a
  364  full-time firefighter who retires on or after his or her normal
  365  retirement date shall be an amount equal to the number of his or
  366  her years of credited service multiplied by 2 percent of his or
  367  her average final compensation as a full-time firefighter.
  368  However, if current state contributions pursuant to this chapter
  369  are not adequate to fund the additional benefits to meet the
  370  minimum requirements in this chapter, only such incremental
  371  increases shall be required as state moneys are adequate to
  372  provide. Such increments shall be provided as state moneys
  373  become available.
  374         Section 6. Section 175.351, Florida Statutes, is amended to
  375  read:
  376         175.351 Municipalities and special fire control districts
  377  that have having their own pension plans for firefighters.—For
  378  any municipality, special fire control district, local law
  379  municipality, local law special fire control district, or local
  380  law plan under this chapter, In order for a municipality or
  381  municipalities and special fire control district that has its
  382  districts with their own pension plan plans for firefighters, or
  383  for firefighters and police officers if both are included, to
  384  participate in the distribution of the tax fund established
  385  under pursuant to s. 175.101, a local law plan and its plan
  386  sponsor plans must meet the required minimum benefits and
  387  minimum standards set forth in this chapter.
  388         (1) If a municipality has a pension plan for firefighters,
  389  or a pension plan for firefighters and police officers if both
  390  are included, which in the opinion of the division meets the
  391  required minimum benefits and minimum standards set forth in
  392  this chapter, the board of trustees of the pension plan, must as
  393  approved by a majority of firefighters of the municipality, may:
  394         (a) place the income from the premium tax in s. 175.101 in
  395  such pension plan for the sole and exclusive use of its
  396  firefighters, or for firefighters and police officers if both
  397  are included, where it shall become an integral part of that
  398  pension plan and shall be used to fund benefits for firefighters
  399  as follows:
  400         (a) The base premium tax revenues must be used to fund base
  401  benefits.
  402         (b)Of the premium tax revenues received which are in
  403  excess of the amount received for the 2012 calendar year, and
  404  any accumulations of additional premium tax revenues that have
  405  not been applied to fund extra benefits:
  406         1. If the plan has a long-term funded ratio of less than 80
  407  percent:
  408         a. Fifty percent must be used as additional contributions
  409  to pay the plan’s actuarial deficiency and may not be considered
  410  in the determination of the mandatory payment described in s.
  411  175.091(1)(d);
  412         b. Twenty-five percent must be used to fund base benefits;
  413  and
  414         c. The remainder must be placed in a defined contribution
  415  plan to fund special benefits.
  416         2. If the plan has a long-term funded ratio of 80 percent
  417  or greater:
  418         a. Fifty percent must be used to fund base benefits; and
  419         b.The remainder must be placed in a defined contribution
  420  plan to fund special benefits.
  421         (c) Additional premium tax revenues not described in
  422  paragraph (b) must be used to fund benefits that were not
  423  included in the base benefits to pay extra benefits to the
  424  firefighters included in that pension plan; or
  425         (b) Place the income from the premium tax in s. 175.101 in
  426  a separate supplemental plan to pay extra benefits to
  427  firefighters, or to firefighters and police officers if
  428  included, participating in such separate supplemental plan.
  429         (2) Insurance premium tax revenues may not be used to fund
  430  benefits provided in a defined benefit plan which were not
  431  provided by the plan as of March 1, 2013; however, for a local
  432  law plan created after March 1, 2013, up to 50 percent of the
  433  insurance premium tax revenues may be used to fund defined
  434  benefit plan component benefits and the remainder must be used
  435  to fund defined contribution plan component benefits.
  436         (3) If a plan offers benefits in excess of its required
  437  benefits, such benefits may be reduced if the plan continues to
  438  meet the required benefits of the plan and the minimum standards
  439  set forth in this chapter. The amount of insurance premium tax
  440  revenues previously used to fund benefits in excess of the
  441  plan’s required benefits before the reduction must be used as
  442  provided in subsection (1)(b). Twenty-five percent of the amount
  443  of any mandatory contribution paid by the municipality or
  444  special fire control district which was previously used to fund
  445  benefits above the level of required benefits provided before
  446  the reduction must be used as additional contributions as
  447  specified in s. 175.091 to fund the plan’s actuarial deficiency.
  448         (4)(2) The premium tax provided by this chapter shall in
  449  all cases be used in its entirety to provide retirement extra
  450  benefits to firefighters, or to firefighters and police officers
  451  if both are included. However, local law plans in effect on
  452  October 1, 1998, must comply with the minimum benefit provisions
  453  of this chapter only to the extent that additional premium tax
  454  revenues become available to incrementally fund the cost of such
  455  compliance as provided in s. 175.162(2)(a). If a plan is in
  456  compliance with such minimum benefit provisions, as subsequent
  457  additional premium tax revenues become available, they must be
  458  used to provide extra benefits. Local law plans created by
  459  special act before May 27, 1939, are deemed to comply with this
  460  chapter. For the purpose of this chapter, the term:
  461         (a) “Additional premium tax revenues” means revenues
  462  received by a municipality or special fire control district
  463  pursuant to s. 175.121 which exceed that amount received for
  464  calendar year 1997.
  465         (b) “Extra benefits” means benefits in addition to or
  466  greater than those provided to general employees of the
  467  municipality and in addition to those in existence for
  468  firefighters on March 12, 1999.
  469         (5)(3) A retirement plan or amendment to a retirement plan
  470  may not be proposed for adoption unless the proposed plan or
  471  amendment contains an actuarial estimate of the costs involved.
  472  Such proposed plan or proposed plan change may not be adopted
  473  without the approval of the municipality, special fire control
  474  district, or, where permitted, the Legislature. Copies of the
  475  proposed plan or proposed plan change and the actuarial impact
  476  statement of the proposed plan or proposed plan change shall be
  477  furnished to the division before the last public hearing
  478  thereon. Such statement must also indicate whether the proposed
  479  plan or proposed plan change is in compliance with s. 14, Art. X
  480  of the State Constitution and those provisions of part VII of
  481  chapter 112 which are not expressly provided in this chapter.
  482  Notwithstanding any other provision, only those local law plans
  483  created by special act of legislation before May 27, 1939, are
  484  deemed to meet the minimum benefits and minimum standards only
  485  in this chapter.
  486         (6)(4) Notwithstanding any other provision, with respect to
  487  any supplemental plan municipality:
  488         (a) A local law plan and a supplemental plan may continue
  489  to use their definition of compensation or salary in existence
  490  on March 12, 1999.
  491         (b) Section 175.061(1)(b) does not apply, and a local law
  492  plan and a supplemental plan shall continue to be administered
  493  by a board or boards of trustees numbered, constituted, and
  494  selected as the board or boards were numbered, constituted, and
  495  selected on December 1, 2000.
  496         (c) The election set forth in paragraph (1)(b) is deemed to
  497  have been made.
  498         (7)(5) The retirement plan setting forth the benefits and
  499  the trust agreement, if any, covering the duties and
  500  responsibilities of the trustees and the regulations of the
  501  investment of funds must be in writing, and copies made
  502  available to the participants and to the general public.
  503         (8) In addition to the defined benefit component of the
  504  local law plan, each plan sponsor must have a defined
  505  contribution plan component within the local law plan by October
  506  1, 2013, or upon the creation date of a new participating plan.
  507  However, the plan sponsor of any plan established by special act
  508  of the Legislature has until July 1, 2014, to create a defined
  509  contribution component within the plan.
  510         (9) Notwithstanding any other provision of this chapter, a
  511  municipality or special fire control district that has
  512  implemented or proposed changes to a local law plan based on the
  513  municipality’s or district’s reliance on an interpretation of
  514  this chapter by the department on or after August 14, 2012, and
  515  before February 1, 2013, may continue the implemented changes or
  516  continue to implement proposed changes. Such reliance must be
  517  evidenced by formal correspondence between the municipality or
  518  district and the department which describes the specific changes
  519  to the local law plan, with the initial correspondence from the
  520  municipality or district dated prior to February 1, 2013. The
  521  changes to the local law plan that are otherwise contrary to the
  522  provisions of this chapter may continue in effect until the
  523  earlier of October 1, 2016, or the effective date of a
  524  collective bargaining agreement that is contrary to the changes
  525  to the local law plan.
  526         Section 7. Subsection (2) of section 185.01, Florida
  527  Statutes, is amended to read:
  528         185.01 Legislative declaration.—
  529         (2) This chapter hereby establishes, for all municipal
  530  pension plans now or hereinafter provided for under this
  531  chapter, including chapter plans and local law plans, required
  532  minimum benefits and minimum standards for the operation and
  533  funding of such plans, hereinafter referred to as municipal
  534  police officers’ retirement trust funds, which must be met as a
  535  condition precedent to the plan or plan sponsor receiving a
  536  distribution of insurance premium tax revenues under s. 185.10.
  537  The required minimum benefits and minimum standards for each
  538  plan as set forth in this chapter may not be diminished by local
  539  ordinance or by special act of the Legislature, or nor may the
  540  minimum benefits or minimum standards be reduced or offset by
  541  any other local, state, or federal plan that may include police
  542  officers in its operation, except as provided under s. 112.65.
  543         Section 8. Section 185.02, Florida Statutes, is amended to
  544  read:
  545         185.02 Definitions.—For any municipality, chapter plan,
  546  local law municipality, or local law plan under this chapter,
  547  the term following words and phrases as used in this chapter
  548  shall have the following meanings, unless a different meaning is
  549  plainly required by the context:
  550         (1) “Additional premium tax revenues” means revenues
  551  received by a municipality pursuant to s. 185.10 which exceed
  552  base premium tax revenues.
  553         (2)(1) “Average final compensation” means one-twelfth of
  554  the average annual compensation of the 5 best years of the last
  555  10 years of creditable service prior to retirement, termination,
  556  or death.
  557         (3) “Base benefits” means the level of benefits in
  558  existence for police officers on March 12, 1999.
  559         (4) “Base premium tax revenues” means revenues received by
  560  a municipality pursuant to s. 185.10 equal to the amount of such
  561  revenues received for calendar year 1997.
  562         (5)(2) “Casualty insurance” means automobile public
  563  liability and property damage insurance to be applied at the
  564  place of residence of the owner, or if the subject is a
  565  commercial vehicle, to be applied at the place of business of
  566  the owner; automobile collision insurance; fidelity bonds;
  567  burglary and theft insurance; and plate glass insurance.
  568  “Multiple peril” means a combination or package policy that
  569  includes both property coverage and casualty coverage for a
  570  single premium.
  571         (6)(3) “Chapter plan” means a separate defined benefit
  572  pension plan for police officers which incorporates by reference
  573  the provisions of this chapter and has been adopted by the
  574  governing body of a municipality as provided in s. 185.08.
  575  Except as may be specifically authorized in this chapter, the
  576  provisions of a chapter plan may not differ from the plan
  577  provisions set forth in ss. 185.01-185.341 and 185.37-185.39.
  578  Actuarial valuations of chapter plans shall be conducted by the
  579  division as provided by s. 185.221(1)(b).
  580         (7)(4) “Compensation” or “salary” means, for
  581  noncollectively bargained service earned before July 1, 2011, or
  582  for service earned under collective bargaining agreements in
  583  place before July 1, 2011, the total cash remuneration including
  584  “overtime” paid by the primary employer to a police officer for
  585  services rendered, but not including any payments for extra duty
  586  or special detail work performed on behalf of a second party
  587  employer. A local law plan may limit the amount of overtime
  588  payments which can be used for retirement benefit calculation
  589  purposes; however, such overtime limit may not be less than 300
  590  hours per officer per calendar year. For noncollectively
  591  bargained service earned on or after July 1, 2011, or for
  592  service earned under collective bargaining agreements entered
  593  into on or after July 1, 2011, the term has the same meaning
  594  except that when calculating retirement benefits, up to 300
  595  hours per year in overtime compensation may be included as
  596  specified in the plan or collective bargaining agreement, but
  597  payments for accrued unused sick or annual leave may not be
  598  included.
  599         (a) Any retirement trust fund or plan that meets the
  600  requirements of this chapter does not, solely by virtue of this
  601  subsection, reduce or diminish the monthly retirement income
  602  otherwise payable to each police officer covered by the
  603  retirement trust fund or plan.
  604         (b) The member’s compensation or salary contributed as
  605  employee-elective salary reductions or deferrals to any salary
  606  reduction, deferred compensation, or tax-sheltered annuity
  607  program authorized under the Internal Revenue Code shall be
  608  deemed to be the compensation or salary the member would receive
  609  if he or she were not participating in such program and shall be
  610  treated as compensation for retirement purposes under this
  611  chapter.
  612         (c) For any person who first becomes a member in any plan
  613  year beginning on or after January 1, 1996, compensation for
  614  that plan year may not include any amounts in excess of the
  615  Internal Revenue Code s. 401(a)(17) limitation, as amended by
  616  the Omnibus Budget Reconciliation Act of 1993, which limitation
  617  of $150,000 shall be adjusted as required by federal law for
  618  qualified government plans and shall be further adjusted for
  619  changes in the cost of living in the manner provided by Internal
  620  Revenue Code s. 401(a)(17)(B). For any person who first became a
  621  member before the first plan year beginning on or after January
  622  1, 1996, the limitation on compensation may not be less than the
  623  maximum compensation amount that was allowed to be taken into
  624  account under the plan as in effect on July 1, 1993, which
  625  limitation shall be adjusted for changes in the cost of living
  626  since 1989 in the manner provided by Internal Revenue Code s.
  627  401(a)(17)(1991).
  628         (8)(5) “Creditable service” or “credited service” means the
  629  aggregate number of years of service and fractional parts of
  630  years of service of any police officer, omitting intervening
  631  years and fractional parts of years when such police officer may
  632  not have been employed by the municipality subject to the
  633  following conditions:
  634         (a) A No police officer may not will receive credit for
  635  years or fractional parts of years of service if he or she has
  636  withdrawn his or her contributions to the fund for those years
  637  or fractional parts of years of service, unless the police
  638  officer repays into the fund the amount he or she has withdrawn,
  639  plus interest as determined by the board. The member has shall
  640  have at least 90 days after his or her reemployment to make
  641  repayment.
  642         (b) A police officer may voluntarily leave his or her
  643  contributions in the fund for a period of 5 years after leaving
  644  the employ of the police department, pending the possibility of
  645  his or her being rehired by the same department, without losing
  646  credit for the time he or she has participated actively as a
  647  police officer. If he or she is not reemployed as a police
  648  officer with the same department within 5 years, his or her
  649  contributions shall be returned to him or her without interest.
  650         (c) Credited service under this chapter shall be provided
  651  only for service as a police officer, as defined in subsection
  652  (11), or for military service and may not include credit for any
  653  other type of service. A municipality may, by local ordinance,
  654  may provide for the purchase of credit for military service
  655  occurring before employment as well as prior service as a police
  656  officer for some other employer as long as the police officer is
  657  not entitled to receive a benefit for such other prior service
  658  as a police officer. For purposes of determining credit for
  659  prior service, in addition to service as a police officer in
  660  this state, credit may be given for federal, other state, or
  661  county service as long as such service is recognized by the
  662  Criminal Justice Standards and Training Commission within the
  663  Department of Law Enforcement as provided under chapter 943 or
  664  the police officer provides proof to the board of trustees that
  665  such service is equivalent to the service required to meet the
  666  definition of a police officer under subsection (16) (11).
  667         (d) In determining the creditable service of a any police
  668  officer, credit for up to 5 years of the time spent in the
  669  military service of the Armed Forces of the United States shall
  670  be added to the years of actual service, if:
  671         1. The police officer is in the active employ of the
  672  municipality before prior to such service and leaves a position,
  673  other than a temporary position, for the purpose of voluntary or
  674  involuntary service in the Armed Forces of the United States.
  675         2. The police officer is entitled to reemployment under the
  676  provisions of the Uniformed Services Employment and Reemployment
  677  Rights Act.
  678         3. The police officer returns to his or her employment as a
  679  police officer of the municipality within 1 year after from the
  680  date of his or her release from such active service.
  681         (9)(6) “Deferred Retirement Option Plan” or “DROP” means a
  682  local law plan retirement option in which a police officer may
  683  elect to participate. A police officer may retire for all
  684  purposes of the plan and defer receipt of retirement benefits
  685  into a DROP account while continuing employment with his or her
  686  employer. However, a police officer who enters the DROP and who
  687  is otherwise eligible to participate may shall not thereby be
  688  precluded from participating, or continuing to participate, in a
  689  supplemental plan in existence on, or created after, March 12,
  690  1999 the effective date of this act.
  691         (10) “Defined contribution plan” means the component of a
  692  local law plan to which deposits are made to provide benefits
  693  for police officers, or for police officers and firefighters if
  694  both are included. Such component is an element of a local law
  695  plan and exists in conjunction with the defined benefit
  696  component that meets the required benefits and minimum standards
  697  of this chapter. The retirement benefits of the defined
  698  contribution plan shall be provided through individual member
  699  accounts, in accordance with the applicable provisions of the
  700  Internal Revenue Code and related regulations, and are limited
  701  to the contributions made into each member’s account and the
  702  actual accumulated earnings, net of expenses, earned on the
  703  member’s account.
  704         (11)(7) “Division” means the Division of Retirement of the
  705  Department of Management Services.
  706         (12)(8) “Enrolled actuary” means an actuary who is enrolled
  707  under Subtitle C of Title III of the Employee Retirement Income
  708  Security Act of 1974 and who is a member of the Society of
  709  Actuaries or the American Academy of Actuaries.
  710         (13)(9) “Local law municipality” is any municipality in
  711  which there exists a local law plan exists.
  712         (14)(10) “Local law plan” means a retirement defined
  713  benefit pension plan, which includes both a defined benefit plan
  714  component and a defined contribution plan component, for police
  715  officers, or for police officers and firefighters if both are,
  716  where included, as described in s. 185.35, established by
  717  municipal ordinance or special act of the Legislature, which
  718  enactment sets forth all plan provisions. Local law plan
  719  provisions may vary from the provisions of this chapter if the,
  720  provided that required minimum benefits and minimum standards of
  721  this chapter are met. However, any such variance must shall
  722  provide a greater benefit for police officers. Actuarial
  723  valuations of local law plans shall be conducted by an enrolled
  724  actuary as provided in s. 185.221(2)(b).
  725         (15) “Long-term funded ratio” or “funded ratio” means the
  726  ratio of the actuarial value of assets of the plan to the
  727  actuarial accrued liabilities of the plan, as reported in the
  728  most recent actuarial valuation of the plan, deemed to be in
  729  compliance with chapter 112 by the Department of Management
  730  Services.
  731         (16) “Minimum benefits” means the benefits set forth in ss.
  732  185.01-185.341 and ss. 185.37-185.50.
  733         (17) “Minimum standards” means the standards set forth in
  734  ss. 185.01-185.341 and ss. 185.37-185.50.
  735         (18)(11) “Police officer” means any person who is elected,
  736  appointed, or employed full time by a any municipality, who is
  737  certified or required to be certified as a law enforcement
  738  officer in compliance with s. 943.1395, who is vested with
  739  authority to bear arms and make arrests, and whose primary
  740  responsibility is the prevention and detection of crime or the
  741  enforcement of the penal, criminal, traffic, or highway laws of
  742  the state. The term This definition includes all certified
  743  supervisory and command personnel whose duties include, in whole
  744  or in part, the supervision, training, guidance, and management
  745  responsibilities of full-time law enforcement officers, part
  746  time law enforcement officers, or auxiliary law enforcement
  747  officers, but does not include part-time law enforcement
  748  officers or auxiliary law enforcement officers as those terms
  749  the same are defined in s. 943.10(6) and (8), respectively. For
  750  the purposes of this chapter only, the term also includes
  751  “police officer” also shall include a public safety officer who
  752  is responsible for performing both police and fire services. Any
  753  plan may provide that the police chief shall have an option to
  754  participate, or not, in that plan.
  755         (19)(12) “Police Officers’ Retirement Trust Fund” means a
  756  trust fund, by whatever name known, as provided under s. 185.03
  757  for the purpose of assisting municipalities in establishing and
  758  maintaining a retirement plan for police officers.
  759         (20) “Required benefits” means the lesser of the minimum
  760  benefits set forth in this chapter and the base benefits of the
  761  plan. For local law plans created after March 1, 2013, the
  762  required benefits are the minimum benefits set forth in this
  763  chapter.
  764         (21)(13) “Retiree” or “retired police officer” means a
  765  police officer who has entered retirement status. For the
  766  purposes of a plan that includes a Deferred Retirement Option
  767  Plan (DROP), a police officer who enters the DROP is shall be
  768  considered a retiree for all purposes of the plan. However, a
  769  police officer who enters the DROP and who is otherwise eligible
  770  to participate may shall not thereby be precluded from
  771  participating, or continuing to participate, in a supplemental
  772  plan in existence on, or created after, March 12, 1999 the
  773  effective date of this act.
  774         (22)(14) “Retirement” means a police officer’s separation
  775  from city employment as a police officer with immediate
  776  eligibility for receipt of benefits under the plan. For purposes
  777  of a plan that includes a Deferred Retirement Option Plan
  778  (DROP), “retirement” means the date a police officer enters the
  779  DROP.
  780         (23) “Special benefits” means benefits provided in a
  781  defined contribution plan for police officers.
  782         (24)(15) “Supplemental plan” means a plan to which deposits
  783  of the premium tax moneys as provided in s. 185.08 are made to
  784  provide extra benefits to police officers, or police officers
  785  and firefighters if both are where included, under this chapter.
  786  Such a plan is an element of a local law plan and exists in
  787  conjunction with a defined benefit component plan that meets the
  788  required minimum benefits and minimum standards of this chapter.
  789  Any supplemental plan in existence on March 1, 2013, shall be
  790  deemed to be defined contribution plan in compliance with s.
  791  185.35(8).
  792         (25)(16) “Supplemental plan municipality” means a any local
  793  law municipality in which there existed a supplemental plan
  794  existed as of December 1, 2000.
  795         Section 9. Paragraph (b) of subsection (6) of section
  796  185.06, Florida Statutes, is amended to read:
  797         185.06 General powers and duties of board of trustees.—For
  798  any municipality, chapter plan, local law municipality, or local
  799  law plan under this chapter:
  800         (6) To assist the board in meeting its responsibilities
  801  under this chapter, the board, if it so elects, may:
  802         (b) Employ an independent enrolled actuary, as defined in
  803  s. 185.02(8), at the pension fund’s expense.
  804  
  805         If the board chooses to use the municipality’s or special
  806  district’s legal counsel or actuary, or chooses to use any of
  807  the municipality’s other professional, technical, or other
  808  advisers, it must do so only under terms and conditions
  809  acceptable to the board.
  810         Section 10. Paragraphs (d) through (g) of subsection (1) of
  811  section 185.07, Florida Statutes, are amended, and a new
  812  paragraph (e) is added to that subsection, to read:
  813         185.07 Creation and maintenance of fund.—For any
  814  municipality, chapter plan, local law municipality, or local law
  815  plan under this chapter:
  816         (1) The municipal police officers’ retirement trust fund in
  817  each municipality described in s. 185.03 shall be created and
  818  maintained in the following manner:
  819         (d) By payment by the municipality or other sources of a
  820  sum equal to the normal cost and the amount required to fund any
  821  actuarial deficiency shown by an actuarial valuation as provided
  822  in part VII of chapter 112 after taking into account the amounts
  823  described in paragraphs (b), (c), (f), (g), and (h) and the
  824  amounts of the tax proceeds described in paragraph (a) which
  825  must be used to fund defined benefit plan benefits, except as
  826  otherwise excluded from consideration in determining the
  827  mandatory payment.
  828         (e) For local law plans, and in addition to the mandatory
  829  payment described in paragraph (d), by mandatory payment by the
  830  municipality of the amount specified in s. 185.35(3), if the
  831  long-term funded ratio of the plan is less than 80 percent.
  832         (f)(e) By all gifts, bequests and devises when donated to
  833  the fund.
  834         (g)(f) By all accretions to the fund by way of interest or
  835  dividends on bank deposits or otherwise.
  836         (h)(g) By all other sources of income now or hereafter
  837  authorized by law for the augmentation of such municipal police
  838  officers’ retirement trust fund.
  839  
  840  Nothing in this section shall be construed to require adjustment
  841  of member contribution rates in effect on the date this act
  842  becomes a law, including rates that exceed 5 percent of salary,
  843  provided that such rates are at least one-half of 1 percent of
  844  salary.
  845         Section 11. Subsection (2) of section 185.16, Florida
  846  Statutes, is amended to read:
  847         185.16 Requirements for retirement.—For any municipality,
  848  chapter plan, local law municipality, or local law plan under
  849  this chapter, any police officer who completes 10 or more years
  850  of creditable service as a police officer and attains age 55, or
  851  completes 25 years of creditable service as a police officer and
  852  attains age 52, and for such period has been a member of the
  853  retirement fund is eligible for normal retirement benefits.
  854  Normal retirement under the plan is retirement from the service
  855  of the city on or after the normal retirement date. In such
  856  event, for chapter plans and local law plans, payment of
  857  retirement income will be governed by the following provisions
  858  of this section:
  859         (2) The amount of the monthly retirement income payable to
  860  a police officer who retires on or after his or her normal
  861  retirement date shall be an amount equal to the number of the
  862  police officer’s years of credited service multiplied by 2
  863  percent of his or her average final compensation. However, if
  864  current state contributions pursuant to this chapter are not
  865  adequate to fund the additional benefits to meet the minimum
  866  requirements in this chapter, only increment increases shall be
  867  required as state moneys are adequate to provide. Such
  868  increments shall be provided as state moneys become available.
  869         Section 12. Section 185.35, Florida Statutes, is amended to
  870  read:
  871         185.35 Municipalities that have having their own retirement
  872  pension plans for police officers.—For any municipality, chapter
  873  plan, local law municipality, or local law plan under this
  874  chapter, In order for a municipality that has municipalities
  875  with its their own retirement plan pension plans for police
  876  officers, or for police officers and firefighters if both are
  877  included, to participate in the distribution of the tax fund
  878  established under pursuant to s. 185.08, a local law plan and
  879  its plan sponsor plans must meet the required minimum benefits
  880  and minimum standards set forth in this chapter:
  881         (1) If a municipality has a retirement pension plan for
  882  police officers, or for police officers and firefighters if both
  883  are included, which, in the opinion of the division, meets the
  884  required minimum benefits and minimum standards set forth in
  885  this chapter, the board of trustees of the pension plan must, as
  886  approved by a majority of police officers of the municipality,
  887  may:
  888         (a) place the income from the premium tax in s. 185.08 in
  889  such pension plan for the sole and exclusive use of its police
  890  officers, or its police officers and firefighters if included,
  891  where it shall become an integral part of that pension plan and
  892  shall be used to fund benefits for police officers as follows:
  893         (a) The base premium tax revenues must be used to fund base
  894  benefits.
  895         (b)Of the premium tax revenues received which are in
  896  excess of the amount received for the 2012 calendar year, and
  897  any accumulations of additional premium tax revenues which have
  898  not been applied to fund extra benefits:
  899         1. If the plan has a long-term funded ratio of less than 80
  900  percent:
  901         a. Fifty percent must be used as additional contributions
  902  to pay the plan’s actuarial deficiency and may not be considered
  903  in the determination of the mandatory payment described in s.
  904  185.07(1)(d);
  905         b. Twenty-five percent must be used to fund base benefits;
  906  and
  907         c. The remainder must be placed in a defined contribution
  908  plan to fund special benefits.
  909         2. If the plan has a long-term funded ratio of 80 percent
  910  or greater:
  911         a. Fifty percent must be used to fund base benefits; and
  912         b. The remainder must be placed in a defined contribution
  913  plan to fund special benefits.
  914         (c) Additional premium tax revenues not described in
  915  paragraph (b) must be used to fund benefits that were not
  916  included in the base benefits pay extra benefits to the police
  917  officers included in that pension plan; or
  918         (b) May place the income from the premium tax in s. 185.08
  919  in a separate supplemental plan to pay extra benefits to the
  920  police officers, or police officers and firefighters if
  921  included, participating in such separate supplemental plan.
  922         (2) Insurance premium tax revenues may not be used to fund
  923  benefits provided in a defined benefit plan which were not
  924  provided by the plan as of March 1, 2013; however, for a local
  925  law plan created after March 1, 2013, up to 50 percent of the
  926  insurance premium tax revenues may be used to fund defined
  927  benefit plan component benefits and the remainder must be used
  928  to fund defined contribution plan component benefits.
  929         (3) If a plan offers benefits in excess of its required
  930  benefits, such benefits may be reduced if the plan continues to
  931  meet the required benefits of the plan and the minimum standards
  932  set forth in this chapter. The amount of insurance premium tax
  933  revenues previously used to fund benefits in excess of the
  934  plan’s required benefits before the reduction must be used as
  935  provided in subsection (1)(b). Twenty-five percent of the amount
  936  of any mandatory contribution paid by the municipality or
  937  special fire control district which was previously used to fund
  938  benefits above the level of required benefits provided before
  939  the reduction must be used as additional contributions as
  940  specified in s. 185.07 to fund the plan’s actuarial deficiency.
  941         (4)(2) The premium tax provided by this chapter shall in
  942  all cases be used in its entirety to provide retirement extra
  943  benefits to police officers, or to police officers and
  944  firefighters if both are included. However, local law plans in
  945  effect on October 1, 1998, must comply with the minimum benefit
  946  provisions of this chapter only to the extent that additional
  947  premium tax revenues become available to incrementally fund the
  948  cost of such compliance as provided in s. 185.16(2). If a plan
  949  is in compliance with such minimum benefit provisions, as
  950  subsequent additional tax revenues become available, they shall
  951  be used to provide extra benefits. Local law plans created by
  952  special act before May 27, 1939, shall be deemed to comply with
  953  this chapter. For the purpose of this chapter, the term:
  954         (a) “Additional premium tax revenues” means revenues
  955  received by a municipality pursuant to s. 185.10 which exceed
  956  the amount received for calendar year 1997.
  957         (b) “Extra benefits” means benefits in addition to or
  958  greater than those provided to general employees of the
  959  municipality and in addition to those in existence for police
  960  officers on March 12, 1999.
  961         (5)(3) A retirement plan or amendment to a retirement plan
  962  may not be proposed for adoption unless the proposed plan or
  963  amendment contains an actuarial estimate of the costs involved.
  964  Such proposed plan or proposed plan change may not be adopted
  965  without the approval of the municipality or, where permitted,
  966  the Legislature. Copies of the proposed plan or proposed plan
  967  change and the actuarial impact statement of the proposed plan
  968  or proposed plan change shall be furnished to the division
  969  before the last public hearing thereon. Such statement must also
  970  indicate whether the proposed plan or proposed plan change is in
  971  compliance with s. 14, Art. X of the State Constitution and
  972  those provisions of part VII of chapter 112 which are not
  973  expressly provided in this chapter. Notwithstanding any other
  974  provision, only those local law plans created by special act of
  975  legislation before May 27, 1939, are deemed to meet the minimum
  976  benefits and minimum standards only in this chapter.
  977         (6)(4) Notwithstanding any other provision, with respect to
  978  any supplemental plan municipality:
  979         (a) Section 185.02(7)(a) 185.02(4)(a) does not apply, and a
  980  local law plan and a supplemental plan may continue to use their
  981  definition of compensation or salary in existence on March 12,
  982  1999.
  983         (b) A local law plan and a supplemental plan must continue
  984  to be administered by a board or boards of trustees numbered,
  985  constituted, and selected as the board or boards were numbered,
  986  constituted, and selected on December 1, 2000.
  987         (c) The election set forth in paragraph (1)(b) is deemed to
  988  have been made.
  989         (7)(5) The retirement plan setting forth the benefits and
  990  the trust agreement, if any, covering the duties and
  991  responsibilities of the trustees and the regulations of the
  992  investment of funds must be in writing and copies made available
  993  to the participants and to the general public.
  994         (8) In addition to the defined benefit component of the
  995  local law plan, each plan sponsor must have a defined
  996  contribution plan component within the local law plan by October
  997  1, 2013, or upon the creation date of a new participating plan.
  998  However, the plan sponsor of any plan established by special act
  999  of the Legislature has until July 1, 2014, to create a defined
 1000  contribution component within the plan.
 1001         (9) Notwithstanding any other provision of this chapter, a
 1002  municipality that has implemented or proposed changes to a local
 1003  law plan based on the municipality’s reliance on an
 1004  interpretation of this chapter by the department on or after
 1005  August 14, 2012 and before February 1, 2013, may continue the
 1006  implemented changes or continue to implement proposed changes.
 1007  Such reliance must be evidenced by formal correspondence between
 1008  the municipality and the department which describes the specific
 1009  changes to the local law plan, with the initial correspondence
 1010  from the municipality dated prior to February 1, 2013. The
 1011  changes to the local law plan which are otherwise contrary to
 1012  the provisions of this chapter may continue in effect until the
 1013  earlier of October 1, 2016, or the effective date of a
 1014  collective bargaining agreement that is contrary to the changes
 1015  to the local law plan.
 1016         Section 13. The Legislature finds that a proper and
 1017  legitimate state purpose is served when employees and retirees
 1018  of the state and its political subdivisions, and the dependents,
 1019  survivors, and beneficiaries of such employees and retirees, are
 1020  extended the basic protections afforded by governmental
 1021  retirement systems that provide fair and adequate benefits and
 1022  that are managed, administered, and funded in an actuarially
 1023  sound manner as required by s. 14, Article X of the State
 1024  Constitution and part VII of chapter 112, Florida Statutes.
 1025  Therefore, the Legislature determines and declares that this act
 1026  fulfills an important state interest.
 1027         Section 14. This act shall take effect July 1, 2013.
 1028  
 1029  ================= T I T L E  A M E N D M E N T ================
 1030         And the title is amended as follows:
 1031         Delete everything before the enacting clause
 1032  and insert:
 1033                        A bill to be entitled                      
 1034         An act relating to firefighter and police officer
 1035         pension plans; amending s. 175.021, F.S.; revising the
 1036         legislative declaration to require all plans to meet
 1037         the requirements of ch. 175, F.S., in order to receive
 1038         insurance premium tax revenues; amending s. 175.032,
 1039         F.S.; revising definitions to conform to changes made
 1040         by the act and adding new definitions; amending s.
 1041         175.071, F.S.; conforming a cross-reference; amending
 1042         s. 175.091, F.S.; revising existing payment provisions
 1043         and providing for an additional mandatory payment by
 1044         the municipality or special fire control district to
 1045         the firefighters’ pension trust fund; amending s.
 1046         175.162, F.S.; deleting a limitation on state
 1047         contributions funding additional benefits; amending s.
 1048         175.351, F.S., relating to municipalities and special
 1049         fire control districts that have their own pension
 1050         plans and want to participate in the distribution of a
 1051         tax fund; revising criteria governing the use of
 1052         income from the premium tax; requiring plan sponsors
 1053         to have a defined contribution plan in place by a
 1054         certain date; authorizing a municipality to implement
 1055         certain changes to a local law plan which are contrary
 1056         to ch. 175, F.S., under certain time-limited
 1057         circumstances; amending s. 185.01, F.S.; revising the
 1058         legislative declaration to require all plans to meet
 1059         the requirements of ch. 185, F.S., in order to receive
 1060         insurance premium tax revenues; amending s. 185.02,
 1061         F.S.; revising definitions to conform to changes made
 1062         by the act and adding new definitions; deleting a
 1063         provision allowing a local law plan to limit the
 1064         amount of overtime payments which can be used for
 1065         retirement benefit calculations; amending s. 185.06,
 1066         F.S.; conforming a cross-reference; amending s.
 1067         185.07, F.S.; revising existing payment provisions and
 1068         providing for an additional mandatory payment by the
 1069         municipality to the police officers’ retirement trust
 1070         fund; amending s. 185.16, F.S.; deleting a limitation
 1071         on state contributions funding additional benefits;
 1072         amending s. 185.35, F.S., relating to municipalities
 1073         that have their own pension plans for police officers
 1074         and want to participate in the distribution of a tax
 1075         fund; revising criteria governing the use of income
 1076         from the premium tax; requiring plan sponsors to have
 1077         a defined contribution plan in place by a certain
 1078         date; authorizing a municipality to implement certain
 1079         changes to a local law plan which are contrary to ch.
 1080         185, F.S., under certain time-limited circumstances;
 1081         providing a declaration of important state interest;
 1082         providing an effective date.