Florida Senate - 2014                                     SB 246
       
       
        
       By Senators Ring and Bradley
       
       
       
       
       
       29-00060A-14                                           2014246__
    1                        A bill to be entitled                      
    2         An act relating to local government pension reform;
    3         amending s. 175.021, F.S.; revising the legislative
    4         declaration to require that all firefighter pension
    5         plans meet the requirements of ch. 175, F.S., in order
    6         to receive insurance premium tax revenues; amending s.
    7         175.032, F.S.; revising definitions to conform to
    8         changes made by the act and providing new definitions;
    9         amending s. 175.071, F.S.; conforming a cross
   10         reference; amending s. 175.091, F.S.; revising
   11         existing payment provisions and providing for an
   12         additional mandatory payment by the municipality or
   13         special fire control district to the firefighters’
   14         pension trust fund; amending s. 175.162, F.S.;
   15         deleting a provision basing the availability of
   16         additional benefits upon state funding; amending s.
   17         175.351, F.S., relating to municipalities and special
   18         fire control districts that have their own pension
   19         plans and want to participate in the distribution of a
   20         tax fund; revising criteria governing the use of
   21         income from the premium tax; authorizing a pension
   22         plan to reduce excess benefits if the plan continues
   23         to meet its required benefits and certain minimum
   24         standards; requiring plan sponsors to have a defined
   25         contribution plan in place by a certain date;
   26         authorizing a municipality to implement certain
   27         changes to a local law plan which are contrary to ch.
   28         175, F.S., for a limited time; amending s. 185.01,
   29         F.S.; revising the legislative declaration to require
   30         that all police officer pension plans meet the
   31         requirements of ch. 185, F.S., in order to receive
   32         insurance premium tax revenues; amending s. 185.02,
   33         F.S.; revising definitions to conform to changes made
   34         by the act and adding new definitions; deleting a
   35         provision allowing a local law plan to limit the
   36         amount of overtime payments which can be used for
   37         retirement benefit calculations; amending s. 185.06,
   38         F.S.; conforming a cross-reference; amending s.
   39         185.07, F.S.; revising existing payment provisions and
   40         providing for an additional mandatory payment by the
   41         municipality to the police officers’ retirement trust
   42         fund; amending s. 185.16, F.S.; deleting a provision
   43         basing the availability of additional benefits upon
   44         state funding; amending s. 185.35, F.S., relating to
   45         municipalities that have their own pension plans for
   46         police officers and want to participate in the
   47         distribution of a tax fund; conforming a cross
   48         reference; revising criteria governing the use of
   49         income from the premium tax; authorizing a plan to
   50         reduce excess benefits if the plan continues to meet
   51         its required benefits and certain minimum standards;
   52         requiring plan sponsors to have a defined contribution
   53         plan in place by a certain date; authorizing a
   54         municipality to implement certain changes to a local
   55         law plan which are contrary to ch. 185, F.S., for a
   56         limited time; providing a declaration of important
   57         state interest; providing an effective date.
   58          
   59  Be It Enacted by the Legislature of the State of Florida:
   60  
   61         Section 1. Subsection (2) of section 175.021, Florida
   62  Statutes, is amended to read:
   63         175.021 Legislative declaration.—
   64         (2) This chapter hereby establishes, for all municipal and
   65  special district pension plans existing now or hereafter under
   66  this chapter, including chapter plans and local law plans,
   67  required minimum benefits and minimum standards for the
   68  operation and funding of such plans, hereinafter referred to as
   69  firefighters’ pension trust funds, which must be met as a
   70  condition precedent to the plan or plan sponsor receiving a
   71  distribution of insurance premium tax revenues under s. 175.121.
   72  The required minimum benefits and minimum standards for each
   73  plan as set forth in this chapter may not be diminished by local
   74  charter, ordinance, or resolution or by special act of the
   75  Legislature and may not, nor may the minimum benefits or minimum
   76  standards be reduced or offset by any other local, state, or
   77  federal law that includes may include firefighters in its
   78  operation, except as provided under s. 112.65.
   79         Section 2. Section 175.032, Florida Statutes, is amended to
   80  read:
   81         175.032 Definitions.—For any municipality, special fire
   82  control district, chapter plan, local law municipality, local
   83  law special fire control district, or local law plan under this
   84  chapter, the term following words and phrases have the following
   85  meanings:
   86         (1) “Additional premium tax revenues” means revenues
   87  received by a municipality or special fire control district
   88  pursuant to s. 175.121 which exceed base premium tax revenues.
   89         (2)(1)(a) “Average final compensation” for:
   90         (a) A full-time firefighter means one-twelfth of the
   91  average annual compensation of the 5 best years of the last 10
   92  years of creditable service before prior to retirement,
   93  termination, or death, or the career average as a full-time
   94  firefighter since July 1, 1953, whichever is greater. A year is
   95  shall be 12 consecutive months or such other consecutive period
   96  of time as is used and consistently applied.
   97         (b) “Average final compensation” for A volunteer
   98  firefighter means the average salary of the 5 best years of the
   99  last 10 best contributing years before prior to change in status
  100  to a permanent full-time firefighter or retirement as a
  101  volunteer firefighter or the career average of a volunteer
  102  firefighter, since July 1, 1953, whichever is greater.
  103         (3) “Base benefits” means the level of benefits in
  104  existence for firefighters on March 12, 1999.
  105         (4) “Base premium tax revenues” means the revenues received
  106  by a municipality or special fire control district pursuant to
  107  s. 175.121 for calendar year 1997.
  108         (5)(2) “Chapter plan” means a separate defined benefit
  109  pension plan for firefighters which incorporates by reference
  110  the provisions of this chapter and has been adopted by the
  111  governing body of a municipality or special district. Except as
  112  may be specifically authorized in this chapter, the provisions
  113  of a chapter plan may not differ from the plan provisions set
  114  forth in ss. 175.021-175.341 and ss. 175.361-175.401. Actuarial
  115  valuations of chapter plans shall be conducted by the division
  116  as provided by s. 175.261(1).
  117         (6)(3) “Compensation” or “salary” means, for
  118  noncollectively bargained service earned before July 1, 2011, or
  119  for service earned under collective bargaining agreements in
  120  place before July 1, 2011, the fixed monthly remuneration paid a
  121  firefighter. If remuneration is based on actual services
  122  rendered, as in the case of a volunteer firefighter, the term
  123  means the total cash remuneration received yearly for such
  124  services, prorated on a monthly basis. For noncollectively
  125  bargained service earned on or after July 1, 2011, or for
  126  service earned under collective bargaining agreements entered
  127  into on or after July 1, 2011, the term has the same meaning
  128  except that when calculating retirement benefits, up to 300
  129  hours per year in overtime compensation may be included as
  130  specified in the plan or collective bargaining agreement, but
  131  payments for accrued unused sick or annual leave may not be
  132  included.
  133         (a) Any retirement trust fund or plan that meets the
  134  requirements of this chapter does not, solely by virtue of this
  135  subsection, reduce or diminish the monthly retirement income
  136  otherwise payable to each firefighter covered by the retirement
  137  trust fund or plan.
  138         (b) The member’s compensation or salary contributed as
  139  employee-elective salary reductions or deferrals to any salary
  140  reduction, deferred compensation, or tax-sheltered annuity
  141  program authorized under the Internal Revenue Code shall be
  142  deemed to be the compensation or salary the member would receive
  143  if he or she were not participating in such program and shall be
  144  treated as compensation for retirement purposes under this
  145  chapter.
  146         (c) For any person who first becomes a member in any plan
  147  year beginning on or after January 1, 1996, compensation for
  148  that plan year may not include any amounts in excess of the
  149  Internal Revenue Code s. 401(a)(17) limitation, as amended by
  150  the Omnibus Budget Reconciliation Act of 1993, which limitation
  151  of $150,000 shall be adjusted as required by federal law for
  152  qualified government plans and shall be further adjusted for
  153  changes in the cost of living in the manner provided by Internal
  154  Revenue Code s. 401(a)(17)(B). For any person who first became a
  155  member before the first plan year beginning on or after January
  156  1, 1996, the limitation on compensation may not be less than the
  157  maximum compensation amount that was allowed to be taken into
  158  account under the plan in effect on July 1, 1993, which
  159  limitation shall be adjusted for changes in the cost of living
  160  since 1989 in the manner provided by Internal Revenue Code s.
  161  401(a)(17)(1991).
  162         (7)(4) “Creditable service” or “credited service” means the
  163  aggregate number of years of service, and fractional parts of
  164  years of service, of any firefighter, omitting intervening years
  165  and fractional parts of years when such firefighter may not have
  166  been employed by the municipality or special fire control
  167  district, subject to the following conditions:
  168         (a) A No firefighter may not will receive credit for years
  169  or fractional parts of years of service if he or she has
  170  withdrawn his or her contributions to the fund for those years
  171  or fractional parts of years of service, unless the firefighter
  172  repays into the fund the amount he or she has withdrawn, plus
  173  interest determined by the board. The member shall have at least
  174  90 days after his or her reemployment to make repayment.
  175         (b) A firefighter may voluntarily leave his or her
  176  contributions in the fund for a period of 5 years after leaving
  177  the employ of the fire department, pending the possibility of
  178  being rehired by the same department, without losing credit for
  179  the time he or she has participated actively as a firefighter.
  180  If the firefighter is not reemployed as a firefighter, with the
  181  same department, within 5 years, his or her contributions shall
  182  be returned without interest.
  183         (c) Credited service under this chapter shall be provided
  184  only for service as a firefighter, as defined in subsection (8),
  185  or for military service and does not include credit for any
  186  other type of service. A municipality may, by local ordinance,
  187  or a special fire control district may, by resolution, may
  188  provide for the purchase of credit for military service prior to
  189  employment as well as for prior service as a firefighter for
  190  some other employer as long as a firefighter is not entitled to
  191  receive a benefit for such prior service as a firefighter. For
  192  purposes of determining credit for prior service as a
  193  firefighter, in addition to service as a firefighter in this
  194  state, credit may be given for federal, other state, or county
  195  service if the prior service is recognized by the Division of
  196  State Fire Marshal as provided in under chapter 633, or the
  197  firefighter provides proof to the board of trustees that his or
  198  her service is equivalent to the service required to meet the
  199  definition of a firefighter under subsection (12) (8).
  200         (d) In determining the creditable service of any
  201  firefighter, credit for up to 5 years of the time spent in the
  202  military service of the Armed Forces of the United States shall
  203  be added to the years of actual service if:
  204         1. The firefighter is in the active employ of an employer
  205  immediately prior to such service and leaves a position, other
  206  than a temporary position, for the purpose of voluntary or
  207  involuntary service in the Armed Forces of the United States.
  208         2. The firefighter is entitled to reemployment under the
  209  provisions of the Uniformed Services Employment and Reemployment
  210  Rights Act.
  211         3. The firefighter returns to his or her employment as a
  212  firefighter of the municipality or special fire control district
  213  within 1 year from the date of release from such active service.
  214         (8)(5) “Deferred Retirement Option Plan” or “DROP” means a
  215  local law plan retirement option in which a firefighter may
  216  elect to participate. A firefighter may retire for all purposes
  217  of the plan and defer receipt of retirement benefits into a DROP
  218  account while continuing employment with his or her employer.
  219  However, a firefighter who enters the DROP and who is otherwise
  220  eligible to participate may shall not thereby be precluded from
  221  participation or continued participation participating, or
  222  continuing to participate, in a supplemental plan in existence
  223  on, or created after, March 12, 1999 the effective date of this
  224  act.
  225         (9) “Defined contribution plan” means the component of a
  226  local law plan to which deposits are made to provide benefits
  227  for firefighters, or for firefighters and police officers if
  228  both are included. Such component is an element of a local law
  229  plan and exists in conjunction with the defined benefit
  230  component that meets the required benefits and minimum standards
  231  of this chapter. The retirement benefits of the defined
  232  contribution plan shall be provided through individual member
  233  accounts in accordance with the applicable provisions of the
  234  Internal Revenue Code and related regulations and are limited to
  235  the contributions made into each member’s account and the actual
  236  accumulated earnings, net of expenses, earned on the member’s
  237  account.
  238         (10)(6) “Division” means the Division of Retirement of the
  239  Department of Management Services.
  240         (11)(7) “Enrolled actuary” means an actuary who is enrolled
  241  under Subtitle C of Title III of the Employee Retirement Income
  242  Security Act of 1974 and who is a member of the Society of
  243  Actuaries or the American Academy of Actuaries.
  244         (12)(8)(a) “Firefighter” means a person employed solely by
  245  a constituted fire department of any municipality or special
  246  fire control district who is certified as a firefighter as a
  247  condition of employment in accordance with s. 633.408 and whose
  248  duty it is to extinguish fires, to protect life, or to protect
  249  property. The term includes all certified, supervisory, and
  250  command personnel whose duties include, in whole or in part, the
  251  supervision, training, guidance, and management responsibilities
  252  of full-time firefighters, part-time firefighters, or auxiliary
  253  firefighters but does not include part-time firefighters or
  254  auxiliary firefighters. However, for purposes of this chapter
  255  only, the term also includes public safety officers who are
  256  responsible for performing both police and fire services, who
  257  are certified as police officers or firefighters, and who are
  258  certified by their employers to the Chief Financial Officer as
  259  participating in this chapter before October 1, 1979. Effective
  260  October 1, 1979, public safety officers who have not been
  261  certified as participating in this chapter are considered police
  262  officers for retirement purposes and are eligible to participate
  263  in chapter 185. Any plan may provide that the fire chief has an
  264  option to participate, or not, in that plan.
  265         (b) “Volunteer firefighter” means any person whose name is
  266  carried on the active membership roll of a constituted volunteer
  267  fire department or a combination of a paid and volunteer fire
  268  department of any municipality or special fire control district
  269  and whose duty it is to extinguish fires, to protect life, and
  270  to protect property. Compensation for services rendered by a
  271  volunteer firefighter does shall not disqualify him or her as a
  272  volunteer. A person may shall not be disqualified as a volunteer
  273  firefighter solely because he or she has other gainful
  274  employment. Any person who volunteers assistance at a fire but
  275  is not an active member of a department described herein is not
  276  a volunteer firefighter within the meaning of this paragraph.
  277         (13)(9) “Firefighters’ Pension Trust Fund” means a trust
  278  fund, by whatever name known, as provided under s. 175.041, for
  279  the purpose of assisting municipalities and special fire control
  280  districts in establishing and maintaining a retirement plan for
  281  firefighters.
  282         (14)(10) “Local law municipality” is any municipality in
  283  which there exists a local law plan exists.
  284         (15)(11) “Local law plan” means a retirement defined
  285  benefit pension plan, which includes both a defined benefit plan
  286  component and a defined contribution plan component, for
  287  firefighters, or for firefighters or police officers if both are
  288  where included, as described in s. 175.351, established by
  289  municipal ordinance, special district resolution, or special act
  290  of the Legislature, which enactment sets forth all plan
  291  provisions. Local law plan provisions may vary from the
  292  provisions of this chapter if the, provided that required
  293  minimum benefits and minimum standards of this chapter are met.
  294  However, any such variance must shall provide a greater benefit
  295  for firefighters. Actuarial valuations of local law plans shall
  296  be conducted by an enrolled actuary as provided in s.
  297  175.261(2).
  298         (16)(12) “Local law special fire control district” means is
  299  any special fire control district in which there exists a local
  300  law plan exists.
  301         (17) “Long-term funded ratio” or “funded ratio” means the
  302  ratio of the actuarial value of assets of the plan to the
  303  actuarial accrued liabilities of the plan, as reported in the
  304  most recent actuarial valuation of the plan, deemed to be in
  305  compliance with chapter 112 by the Department of Management
  306  Services.
  307         (18) “Minimum benefits” means the benefits set forth in ss.
  308  175.021-175.341 and ss. 175.361-175.401.
  309         (19) “Minimum standards” means the standards set forth in
  310  ss. 175.021-175.341 and ss. 175.361-175.401.
  311         (20)(13) “Property insurance” means property insurance as
  312  defined in s. 624.604 and covers real and personal property
  313  within the corporate limits of a any municipality, or within the
  314  boundaries of a any special fire control district, within the
  315  state. “Multiple peril” means a combination or package policy
  316  that includes both property and casualty coverage for a single
  317  premium.
  318         (21) “Required benefits” means the lesser of the minimum
  319  benefits set forth in this chapter or the base benefits of the
  320  plan. For local law plans created after March 1, 2013, the term
  321  means the minimum benefits set forth in this chapter.
  322         (22)(14) “Retiree” or “retired firefighter” means a
  323  firefighter who has entered retirement status. For the purposes
  324  of a plan that includes a Deferred Retirement Option Plan
  325  (DROP), a firefighter who enters the DROP is shall be considered
  326  a retiree for all purposes of the plan. However, a firefighter
  327  who enters the DROP and who is otherwise eligible to participate
  328  may shall not thereby be precluded from participation or
  329  continued participation participating, or continuing to
  330  participate, in a supplemental plan in existence on, or created
  331  after, March 12, 1999 the effective date of this act.
  332         (23)(15) “Retirement” means a firefighter’s separation from
  333  city or fire district employment as a firefighter with immediate
  334  eligibility for receipt of benefits under the plan. For purposes
  335  of a plan that includes a Deferred Retirement Option Plan
  336  (DROP), “retirement” means the date a firefighter enters the
  337  DROP.
  338         (24) “Special benefits” means benefits provided in a
  339  defined contribution plan for firefighters.
  340         (25)(16) “Special fire control district” means a special
  341  district, as defined in s. 189.403(1), established for the
  342  purposes of extinguishing fires, protecting life, and protecting
  343  property within the incorporated or unincorporated portions of a
  344  any county or combination of counties, or within any combination
  345  of incorporated and unincorporated portions of a any county or
  346  combination of counties. The term does not include any dependent
  347  or independent special district, as those terms are defined in
  348  s. 189.403 whose s. 189.403(2) and (3), respectively, the
  349  employees of which are members of the Florida Retirement System
  350  pursuant to s. 121.051(1) or (2).
  351         (26)(17) “Supplemental plan” means a plan to which deposits
  352  are made to provide extra benefits for firefighters, or for
  353  firefighters and police officers if both are where included
  354  under this chapter. Such a plan is an element of a local law
  355  plan and exists in conjunction with a defined benefit component
  356  plan that meets the required minimum benefits and minimum
  357  standards of this chapter. Any supplemental plan in existence on
  358  March 1, 2014, shall be deemed to be a defined contribution plan
  359  in compliance with s. 175.351(8).
  360         (27)(18) “Supplemental plan municipality” means a any local
  361  law municipality in which any there existed a supplemental plan
  362  existed, of any type or nature, as of December 1, 2000.
  363         Section 3. Subsection (7) of section 175.071, Florida
  364  Statutes, is amended to read:
  365         175.071 General powers and duties of board of trustees.—For
  366  any municipality, special fire control district, chapter plan,
  367  local law municipality, local law special fire control district,
  368  or local law plan under this chapter:
  369         (7) To assist the board in meeting its responsibilities
  370  under this chapter, the board, if it so elects, may:
  371         (a) Employ independent legal counsel at the pension fund’s
  372  expense.
  373         (b) Employ an independent enrolled actuary, as defined in
  374  s. 175.032(7), at the pension fund’s expense.
  375         (c) Employ such independent professional, technical, or
  376  other advisers as it deems necessary at the pension fund’s
  377  expense.
  378  
  379  If the board chooses to use the municipality’s or special
  380  district’s legal counsel, or actuary, or chooses to use any of
  381  its the municipality’s or special district’s other professional,
  382  technical, or other advisers, it must do so only under terms and
  383  conditions acceptable to the board.
  384         Section 4. Paragraphs (d) through (g) of subsection (1) of
  385  section 175.091, Florida Statutes, are amended, and a new
  386  paragraph (e) is added to that subsection, to read:
  387         175.091 Creation and maintenance of fund.—For any
  388  municipality, special fire control district, chapter plan, local
  389  law municipality, local law special fire control district, or
  390  local law plan under this chapter:
  391         (1) The firefighters’ pension trust fund in each
  392  municipality and in each special fire control district shall be
  393  created and maintained in the following manner:
  394         (d) By mandatory payment by the municipality or special
  395  fire control district of a sum equal to the normal cost of and
  396  the amount required to fund any actuarial deficiency shown by an
  397  actuarial valuation conducted under as provided in part VII of
  398  chapter 112 after taking into account the amounts described in
  399  paragraphs (b), (c), (f), (g), and (h) and the tax proceeds
  400  described in paragraph (a) which must be used to fund defined
  401  benefit plan benefits, except as otherwise excluded from
  402  consideration in determining the mandatory payment.
  403         (e) For local law plans, in addition to the mandatory
  404  payment specified in paragraph (d), by mandatory payment by the
  405  municipality or special fire control district of the amount
  406  specified in s. 175.351(3), if the long-term funded ratio of the
  407  plan is less than 80 percent.
  408         (f)(e) By all gifts, bequests, and devises when donated to
  409  the fund.
  410         (g)(f) By all accretions to the fund, such as by way of
  411  interest or dividends on bank deposits, or otherwise.
  412         (h)(g) By all other sources or income now or hereafter
  413  authorized by law for the augmentation of such firefighters’
  414  pension trust fund.
  415  
  416  Nothing in this section shall be construed to require adjustment
  417  of member contribution rates in effect on the date this act
  418  becomes a law, including rates that exceed 5 percent of salary,
  419  provided that such rates are at least one-half of 1 percent of
  420  salary.
  421         Section 5. Paragraph (a) of subsection (2) of section
  422  175.162, Florida Statutes, is amended to read:
  423         175.162 Requirements for retirement.—For any municipality,
  424  special fire control district, chapter plan, local law
  425  municipality, local law special fire control district, or local
  426  law plan under this chapter, any firefighter who completes 10 or
  427  more years of creditable service as a firefighter and attains
  428  age 55, or completes 25 years of creditable service as a
  429  firefighter and attains age 52, and who for such minimum period
  430  has been a member of the firefighters’ pension trust fund
  431  operating under a chapter plan or local law plan, is eligible
  432  for normal retirement benefits. Normal retirement under the plan
  433  is retirement from the service of the municipality or special
  434  fire control district on or after the normal retirement date. In
  435  such event, payment of retirement income will be governed by the
  436  following provisions of this section:
  437         (2)(a) The amount of monthly retirement income payable to a
  438  full-time firefighter who retires on or after his or her normal
  439  retirement date shall be an amount equal to the number of his or
  440  her years of credited service multiplied by 2 percent of his or
  441  her average final compensation as a full-time firefighter.
  442  However, if current state contributions pursuant to this chapter
  443  are not adequate to fund the additional benefits to meet the
  444  minimum requirements in this chapter, only such incremental
  445  increases shall be required as state moneys are adequate to
  446  provide. Such increments shall be provided as state moneys
  447  become available.
  448         Section 6. Section 175.351, Florida Statutes, is amended to
  449  read:
  450         175.351 Municipalities and special fire control districts
  451  that have having their own pension plans for firefighters.—For
  452  any municipality, special fire control district, local law
  453  municipality, local law special fire control district, or local
  454  law plan under this chapter, In order for a municipality or
  455  municipalities and special fire control district that has its
  456  districts with their own pension plan plans for firefighters, or
  457  for firefighters and police officers if both are included, to
  458  participate in the distribution of the tax fund established
  459  under pursuant to s. 175.101, a local law plan and its plan
  460  sponsor plans must meet the required minimum benefits and
  461  minimum standards set forth in this chapter.
  462         (1) If a municipality has a pension plan for firefighters,
  463  or a pension plan for firefighters and police officers if both
  464  are included, which in the opinion of the division meets the
  465  required minimum benefits and minimum standards set forth in
  466  this chapter, the board of trustees of the pension plan must, as
  467  approved by a majority of firefighters of the municipality, may:
  468         (a) place the income from the premium tax in s. 175.101 in
  469  such pension plan for the sole and exclusive use of its
  470  firefighters, or for firefighters and police officers if both
  471  are included, where it shall become an integral part of that
  472  pension plan and shall be used to fund benefits as follows:
  473         (a) The base premium tax revenues must be used to fund
  474  required benefits. To the extent the base premium tax revenues
  475  exceed the annual actuarial cost of the plan’s required
  476  benefits, such excess revenues must be used as directed in
  477  paragraph (b).
  478         (b) Of the additional premium tax revenues received which
  479  are in excess of the amount received for the 2012 calendar year
  480  and any accumulations of additional tax revenues which have not
  481  been applied to fund benefits in excess of the plan’s base
  482  benefits:
  483         1. If the plan has a supplemental plan in effect as of
  484  September 30, 2013, whereby all premium tax revenues received in
  485  excess of the amount received for the 2012 calendar year are
  486  scheduled to be used to fund defined contribution plan benefits
  487  and:
  488         a. If the plan has a long-term funded ratio of less than 80
  489  percent, 50 percent of the additional premium tax revenues
  490  subject to this paragraph must be used as additional
  491  contributions to pay the plan’s actuarial deficiency and 50
  492  percent must be used to fund special benefits; or
  493         b. If the plan has a long-term funded ratio of 80 percent
  494  or greater, the additional premium tax revenues subject to this
  495  paragraph must be used to fund special benefits.
  496         2. If subparagraph 1. is not applicable and the plan has a
  497  long-term funded ratio of less than 80 percent:
  498         a. Fifty percent of the additional premium tax revenues
  499  subject to this paragraph must be used as additional
  500  contributions to pay the plan’s actuarial deficiency;
  501         b. Twenty-five percent of the additional premium tax
  502  revenues subject to this paragraph must be used to fund required
  503  benefits; and
  504         c. Twenty-five percent of the additional premium tax
  505  revenues subject to this paragraph must be placed in a defined
  506  contribution plan to fund special benefits.
  507         3. If subparagraph 1. is not applicable and the plan has a
  508  long-term funded ratio of 80 percent or greater:
  509         a. Fifty percent of the additional premium tax revenues
  510  subject to this paragraph must be used to fund required
  511  benefits; and
  512         b. Fifty percent of the additional premium tax revenues
  513  subject to this paragraph must be placed in a defined
  514  contribution plan to fund special benefits.
  515  
  516  Any additional premium tax revenues used to fund the plan’s
  517  actuarial deficiency pursuant to this paragraph may not be
  518  considered in determining the mandatory payment described in s.
  519  175.091(1)(d).
  520         (c) Additional premium tax revenues not described in
  521  paragraph (b) must be used to fund benefits that were not
  522  included in the required benefits to pay extra benefits to the
  523  firefighters included in that pension plan; or
  524         (b) Place the income from the premium tax in s. 175.101 in
  525  a separate supplemental plan to pay extra benefits to
  526  firefighters, or to firefighters and police officers if
  527  included, participating in such separate supplemental plan.
  528         (2) Insurance premium tax revenues may not be used to fund
  529  benefits provided in a defined benefit plan which were not
  530  provided by the plan as of March 1, 2014. However, for a local
  531  law plan created after March 1, 2014, up to 50 percent of the
  532  insurance premium tax revenues may be used to fund defined
  533  benefit plan component benefits, with the remainder used to fund
  534  defined contribution plan component benefits.
  535         (3) If a plan offers benefits in excess of its required
  536  benefits, such excess benefits may be reduced if the plan
  537  continues to meet the required benefits of the plan and the
  538  minimum standards set forth in this chapter. The amount of
  539  insurance premium tax revenues previously used to fund excess
  540  benefits must be used as provided in paragraph (1)(b). Twenty
  541  five percent of the amount of any mandatory contribution paid by
  542  the municipality or special fire control district which was
  543  previously used to fund excess benefits must be used as
  544  additional contributions as specified in s. 175.091 to fund the
  545  plan’s actuarial deficiency.
  546         (4)(2) The premium tax provided by this chapter shall in
  547  all cases be used in its entirety to provide retirement extra
  548  benefits to firefighters, or to firefighters and police officers
  549  if both are included. However, local law plans in effect on
  550  October 1, 1998, must comply with the minimum benefit provisions
  551  of this chapter only to the extent that additional premium tax
  552  revenues become available to incrementally fund the cost of such
  553  compliance as provided in s. 175.162(2)(a). If a plan is in
  554  compliance with such minimum benefit provisions, as subsequent
  555  additional premium tax revenues become available, they must be
  556  used to provide extra benefits. Local law plans created by
  557  special act before May 27, 1939, are deemed to comply with this
  558  chapter. For the purpose of this chapter, the term:
  559         (a) “Additional premium tax revenues” means revenues
  560  received by a municipality or special fire control district
  561  pursuant to s. 175.121 which exceed that amount received for
  562  calendar year 1997.
  563         (b) “Extra benefits” means benefits in addition to or
  564  greater than those provided to general employees of the
  565  municipality and in addition to those in existence for
  566  firefighters on March 12, 1999.
  567         (5)(3) A retirement plan or amendment to a retirement plan
  568  may not be proposed for adoption unless the proposed plan or
  569  amendment contains an actuarial estimate of the costs involved.
  570  Such proposed plan or proposed plan change may not be adopted
  571  without the approval of the municipality, special fire control
  572  district, or, where permitted, the Legislature. Copies of the
  573  proposed plan or proposed plan change and the actuarial impact
  574  statement of the proposed plan or proposed plan change shall be
  575  furnished to the division before the last public hearing on the
  576  proposal is held thereon. Such statement must also indicate
  577  whether the proposed plan or proposed plan change is in
  578  compliance with s. 14, Art. X of the State Constitution and
  579  those provisions of part VII of chapter 112 which are not
  580  expressly provided in this chapter. Notwithstanding any other
  581  provision, only those local law plans created by special act of
  582  legislation before May 27, 1939, are deemed to meet the minimum
  583  benefits and minimum standards only in this chapter.
  584         (6)(4) Notwithstanding any other provision, with respect to
  585  any supplemental plan municipality:
  586         (a) A local law plan and a supplemental plan may continue
  587  to use their definition of compensation or salary in existence
  588  on March 12, 1999.
  589         (b) Section 175.061(1)(b) does not apply, and a local law
  590  plan and a supplemental plan shall continue to be administered
  591  by a board or boards of trustees numbered, constituted, and
  592  selected as the board or boards were numbered, constituted, and
  593  selected on December 1, 2000.
  594         (c) The election set forth in paragraph (1)(b) is deemed to
  595  have been made.
  596         (7)(5) The retirement plan setting forth the benefits and
  597  the trust agreement, if any, covering the duties and
  598  responsibilities of the trustees and the regulations of the
  599  investment of funds must be in writing, and copies made
  600  available to the participants and to the general public.
  601         (8) In addition to the defined benefit component of the
  602  local law plan, each plan sponsor must have a defined
  603  contribution plan component within the local law plan by October
  604  1, 2014, or upon the creation date of a new participating plan.
  605  However, the plan sponsor of any plan established by special act
  606  of the Legislature has until July 1, 2015, to create a defined
  607  contribution component within the plan.
  608         (9) Notwithstanding any other provision of this chapter, a
  609  municipality or special fire control district that has
  610  implemented or proposed changes to a local law plan based on the
  611  municipality’s or district’s reliance on an interpretation of
  612  this chapter by the department on or after August 14, 2012, and
  613  before February 1, 2013, may continue the implemented changes or
  614  continue to implement proposed changes. Such reliance must be
  615  evidenced by a written collective bargaining proposal or
  616  agreement, or formal correspondence between the municipality or
  617  district and the department which describes the specific changes
  618  to the local law plan, with the initial proposal, agreement, or
  619  correspondence from the municipality or district dated before
  620  February 1, 2013. Changes to the local law plan which are
  621  otherwise contrary to this chapter may continue in effect until
  622  the earlier of October 1, 2017, or the effective date of a
  623  collective bargaining agreement that is contrary to the changes
  624  to the local law plan.
  625         Section 7. Subsection (2) of section 185.01, Florida
  626  Statutes, is amended to read:
  627         185.01 Legislative declaration.—
  628         (2) This chapter hereby establishes, for all municipal
  629  pension plans now or hereinafter provided for under this
  630  chapter, including chapter plans and local law plans, required
  631  minimum benefits and minimum standards for the operation and
  632  funding of such plans, hereinafter referred to as municipal
  633  police officers’ retirement trust funds, which must be met as a
  634  condition precedent to the plan or plan sponsor receiving a
  635  distribution of insurance premium tax revenues under s. 185.10.
  636  The required minimum benefits and minimum standards for each
  637  plan as set forth in this chapter may not be diminished by local
  638  ordinance or by special act of the Legislature and may not, nor
  639  may the minimum benefits or minimum standards be reduced or
  640  offset by any other local, state, or federal plan that includes
  641  may include police officers in its operation, except as provided
  642  under s. 112.65.
  643         Section 8. Section 185.02, Florida Statutes, is amended to
  644  read:
  645         185.02 Definitions.—For any municipality, chapter plan,
  646  local law municipality, or local law plan under this chapter,
  647  the term following words and phrases as used in this chapter
  648  shall have the following meanings, unless a different meaning is
  649  plainly required by the context:
  650         (1) “Additional premium tax revenues” means revenues
  651  received by a municipality pursuant to s. 185.10 which exceed
  652  base premium tax revenues.
  653         (2)(1) “Average final compensation” means one-twelfth of
  654  the average annual compensation of the 5 best years of the last
  655  10 years of creditable service prior to retirement, termination,
  656  or death.
  657         (3) “Base benefits” means the level of benefits in
  658  existence for police officers on March 12, 1999.
  659         (4) “Base premium tax revenues” means the revenues received
  660  by a municipality pursuant to s. 185.10 for calendar year 1997.
  661         (5)(2) “Casualty insurance” means automobile public
  662  liability and property damage insurance to be applied at the
  663  place of residence of the owner, or if the subject is a
  664  commercial vehicle, to be applied at the place of business of
  665  the owner; automobile collision insurance; fidelity bonds;
  666  burglary and theft insurance; and plate glass insurance.
  667  “Multiple peril” means a combination or package policy that
  668  includes both property coverage and casualty coverage for a
  669  single premium.
  670         (6)(3) “Chapter plan” means a separate defined benefit
  671  pension plan for police officers which incorporates by reference
  672  the provisions of this chapter and has been adopted by the
  673  governing body of a municipality as provided in s. 185.08.
  674  Except as may be specifically authorized in this chapter, the
  675  provisions of a chapter plan may not differ from the plan
  676  provisions set forth in ss. 185.01-185.341 and ss. 185.37
  677  185.39. Actuarial valuations of chapter plans shall be conducted
  678  by the division as provided by s. 185.221(1)(b).
  679         (7)(4) “Compensation” or “salary” means, for
  680  noncollectively bargained service earned before July 1, 2011, or
  681  for service earned under collective bargaining agreements in
  682  place before July 1, 2011, the total cash remuneration including
  683  “overtime” paid by the primary employer to a police officer for
  684  services rendered, but not including any payments for extra duty
  685  or special detail work performed on behalf of a second party
  686  employer. A local law plan may limit the amount of overtime
  687  payments which can be used for retirement benefit calculation
  688  purposes; however, such overtime limit may not be less than 300
  689  hours per officer per calendar year. For noncollectively
  690  bargained service earned on or after July 1, 2011, or for
  691  service earned under collective bargaining agreements entered
  692  into on or after July 1, 2011, the term has the same meaning
  693  except that when calculating retirement benefits, up to 300
  694  hours per year in overtime compensation may be included as
  695  specified in the plan or collective bargaining agreement, but
  696  payments for accrued unused sick or annual leave may not be
  697  included.
  698         (a) Any retirement trust fund or plan that meets the
  699  requirements of this chapter does not, solely by virtue of this
  700  subsection, reduce or diminish the monthly retirement income
  701  otherwise payable to each police officer covered by the
  702  retirement trust fund or plan.
  703         (b) The member’s compensation or salary contributed as
  704  employee-elective salary reductions or deferrals to any salary
  705  reduction, deferred compensation, or tax-sheltered annuity
  706  program authorized under the Internal Revenue Code shall be
  707  deemed to be the compensation or salary the member would receive
  708  if he or she were not participating in such program and shall be
  709  treated as compensation for retirement purposes under this
  710  chapter.
  711         (c) For any person who first becomes a member in any plan
  712  year beginning on or after January 1, 1996, compensation for
  713  that plan year may not include any amounts in excess of the
  714  Internal Revenue Code s. 401(a)(17) limitation, as amended by
  715  the Omnibus Budget Reconciliation Act of 1993, which limitation
  716  of $150,000 shall be adjusted as required by federal law for
  717  qualified government plans and shall be further adjusted for
  718  changes in the cost of living in the manner provided by Internal
  719  Revenue Code s. 401(a)(17)(B). For any person who first became a
  720  member before the first plan year beginning on or after January
  721  1, 1996, the limitation on compensation may not be less than the
  722  maximum compensation amount that was allowed to be taken into
  723  account under the plan as in effect on July 1, 1993, which
  724  limitation shall be adjusted for changes in the cost of living
  725  since 1989 in the manner provided by Internal Revenue Code s.
  726  401(a)(17)(1991).
  727         (8)(5) “Creditable service” or “credited service” means the
  728  aggregate number of years of service and fractional parts of
  729  years of service of any police officer, omitting intervening
  730  years and fractional parts of years when such police officer may
  731  not have been employed by the municipality subject to the
  732  following conditions:
  733         (a) A No police officer may not will receive credit for
  734  years or fractional parts of years of service if he or she has
  735  withdrawn his or her contributions to the fund for those years
  736  or fractional parts of years of service, unless the police
  737  officer repays into the fund the amount he or she has withdrawn,
  738  plus interest as determined by the board. The member has shall
  739  have at least 90 days after his or her reemployment to make
  740  repayment.
  741         (b) A police officer may voluntarily leave his or her
  742  contributions in the fund for a period of 5 years after leaving
  743  the employ of the police department, pending the possibility of
  744  his or her being rehired by the same department, without losing
  745  credit for the time he or she has participated actively as a
  746  police officer. If he or she is not reemployed as a police
  747  officer with the same department within 5 years, his or her
  748  contributions shall be returned to him or her without interest.
  749         (c) Credited service under this chapter shall be provided
  750  only for service as a police officer, as defined in subsection
  751  (11), or for military service and may not include credit for any
  752  other type of service. A municipality may, by local ordinance,
  753  may provide for the purchase of credit for military service
  754  occurring before employment as well as prior service as a police
  755  officer for some other employer as long as the police officer is
  756  not entitled to receive a benefit for such other prior service
  757  as a police officer. For purposes of determining credit for
  758  prior service, in addition to service as a police officer in
  759  this state, credit may be given for federal, other state, or
  760  county service as long as such service is recognized by the
  761  Criminal Justice Standards and Training Commission within the
  762  Department of Law Enforcement as provided in under chapter 943
  763  or the police officer provides proof to the board of trustees
  764  that such service is equivalent to the service required to meet
  765  the definition of a police officer under subsection (18) (11).
  766         (d) In determining the creditable service of a any police
  767  officer, credit for up to 5 years of the time spent in the
  768  military service of the Armed Forces of the United States shall
  769  be added to the years of actual service, if:
  770         1. The police officer is in the active employ of the
  771  municipality before prior to such service and leaves a position,
  772  other than a temporary position, for the purpose of voluntary or
  773  involuntary service in the Armed Forces of the United States.
  774         2. The police officer is entitled to reemployment under the
  775  provisions of the Uniformed Services Employment and Reemployment
  776  Rights Act.
  777         3. The police officer returns to his or her employment as a
  778  police officer of the municipality within 1 year after from the
  779  date of his or her release from such active service.
  780         (9)(6) “Deferred Retirement Option Plan” or “DROP” means a
  781  local law plan retirement option in which a police officer may
  782  elect to participate. A police officer may retire for all
  783  purposes of the plan and defer receipt of retirement benefits
  784  into a DROP account while continuing employment with his or her
  785  employer. However, a police officer who enters the DROP and who
  786  is otherwise eligible to participate may shall not thereby be
  787  precluded from participation or continued participation
  788  participating, or continuing to participate, in a supplemental
  789  plan in existence on, or created after, March 12, 1999 the
  790  effective date of this act.
  791         (10) “Defined contribution plan” means the component of a
  792  local law plan to which deposits are made to provide benefits
  793  for police officers, or for police officers and firefighters if
  794  both are included. Such component is an element of a local law
  795  plan and exists in conjunction with the defined benefit
  796  component that meets the required benefits and minimum standards
  797  of this chapter. The retirement benefits of the defined
  798  contribution plan shall be provided through individual member
  799  accounts in accordance with the applicable provisions of the
  800  Internal Revenue Code and related regulations and are limited to
  801  the contributions made into each member’s account and the actual
  802  accumulated earnings, net of expenses, earned on the member’s
  803  account.
  804         (11)(7) “Division” means the Division of Retirement of the
  805  Department of Management Services.
  806         (12)(8) “Enrolled actuary” means an actuary who is enrolled
  807  under Subtitle C of Title III of the Employee Retirement Income
  808  Security Act of 1974 and who is a member of the Society of
  809  Actuaries or the American Academy of Actuaries.
  810         (13)(9) “Local law municipality” means is any municipality
  811  in which there exists a local law plan exists.
  812         (14)(10) “Local law plan” means a retirement defined
  813  benefit pension plan, which includes both a defined benefit plan
  814  component and a defined contribution plan component, for police
  815  officers, or for police officers and firefighters if both are,
  816  where included, as described in s. 185.35, established by
  817  municipal ordinance or special act of the Legislature, which
  818  enactment sets forth all plan provisions. Local law plan
  819  provisions may vary from the provisions of this chapter if the,
  820  provided that required minimum benefits and minimum standards of
  821  this chapter are met. However, any such variance must shall
  822  provide a greater benefit for police officers. Actuarial
  823  valuations of local law plans shall be conducted by an enrolled
  824  actuary as provided in s. 185.221(2)(b).
  825         (15) “Long-term funded ratio” or “funded ratio” means the
  826  ratio of the actuarial value of assets of the plan to the
  827  actuarial accrued liabilities of the plan, as reported in the
  828  most recent actuarial valuation of the plan, deemed to be in
  829  compliance with chapter 112 by the Department of Management
  830  Services.
  831         (16) “Minimum benefits” means the benefits set forth in ss.
  832  185.01-185.341 and ss. 185.37-185.50.
  833         (17) “Minimum standards” means the standards set forth in
  834  ss. 185.01-185.341 and ss. 185.37-185.50.
  835         (18)(11) “Police officer” means any person who is elected,
  836  appointed, or employed full time by a any municipality, who is
  837  certified or required to be certified as a law enforcement
  838  officer in compliance with s. 943.1395, who is vested with
  839  authority to bear arms and make arrests, and whose primary
  840  responsibility is the prevention and detection of crime or the
  841  enforcement of the penal, criminal, traffic, or highway laws of
  842  the state. The term This definition includes all certified
  843  supervisory and command personnel whose duties include, in whole
  844  or in part, the supervision, training, guidance, and management
  845  responsibilities of full-time law enforcement officers, part
  846  time law enforcement officers, or auxiliary law enforcement
  847  officers, but does not include part-time law enforcement
  848  officers or auxiliary law enforcement officers as those terms
  849  the same are defined in s. 943.10(6) and (8), respectively. For
  850  the purposes of this chapter only, the term also includes
  851  “police officer” also shall include a public safety officer who
  852  is responsible for performing both police and fire services. Any
  853  plan may provide that the police chief shall have an option to
  854  participate, or not, in that plan.
  855         (19)(12) “Police Officers’ Retirement Trust Fund” means a
  856  trust fund, by whatever name known, as provided under s. 185.03
  857  for the purpose of assisting municipalities in establishing and
  858  maintaining a retirement plan for police officers.
  859         (20) “Required benefits” means the lesser of the minimum
  860  benefits set forth in this chapter or the base benefits of the
  861  plan. For local law plans created after March 1, 2013, the term
  862  means the minimum benefits set forth in this chapter.
  863         (21)(13) “Retiree” or “retired police officer” means a
  864  police officer who has entered retirement status. For the
  865  purposes of a plan that includes a Deferred Retirement Option
  866  Plan (DROP), a police officer who enters the DROP is shall be
  867  considered a retiree for all purposes of the plan. However, a
  868  police officer who enters the DROP and who is otherwise eligible
  869  to participate may shall not thereby be precluded from
  870  participating, or continuing to participate, in a supplemental
  871  plan in existence on, or created after, March 12, 1999 the
  872  effective date of this act.
  873         (22)(14) “Retirement” means a police officer’s separation
  874  from city employment as a police officer with immediate
  875  eligibility for receipt of benefits under the plan. For purposes
  876  of a plan that includes a Deferred Retirement Option Plan
  877  (DROP), “retirement” means the date a police officer enters the
  878  DROP.
  879         (23) “Special benefits” means benefits provided in a
  880  defined contribution plan for police officers.
  881         (24)(15) “Supplemental plan” means a plan to which deposits
  882  of the premium tax moneys as provided in s. 185.08 are made to
  883  provide extra benefits to police officers, or police officers
  884  and firefighters if both are where included, under this chapter.
  885  Such a plan is an element of a local law plan and exists in
  886  conjunction with a defined benefit component plan that meets the
  887  required minimum benefits and minimum standards of this chapter.
  888  Any supplemental plan in existence on March 1, 2014, shall be
  889  deemed to be a defined contribution plan in compliance with s.
  890  185.35(8).
  891         (25)(16) “Supplemental plan municipality” means a any local
  892  law municipality in which there existed a supplemental plan
  893  existed as of December 1, 2000.
  894         Section 9. Subsection (6) of section 185.06, Florida
  895  Statutes, is amended to read:
  896         185.06 General powers and duties of board of trustees.—For
  897  any municipality, chapter plan, local law municipality, or local
  898  law plan under this chapter:
  899         (6) To assist the board in meeting its responsibilities
  900  under this chapter, the board, if it so elects, may:
  901         (a) Employ independent legal counsel at the pension fund’s
  902  expense.
  903         (b) Employ an independent enrolled actuary, as defined in
  904  s. 185.02(8), at the pension fund’s expense.
  905         (c) Employ such independent professional, technical, or
  906  other advisers as it deems necessary at the pension fund’s
  907  expense.
  908  
  909  If the board chooses to use the municipality’s or special
  910  district’s legal counsel, or actuary, or chooses to use any of
  911  its the municipality’s other professional, technical, or other
  912  advisers, it must do so only under terms and conditions
  913  acceptable to the board.
  914         Section 10. Paragraphs (d) through (g) of subsection (1) of
  915  section 185.07, Florida Statutes, are amended, and a new
  916  paragraph (e) is added to that subsection, to read:
  917         185.07 Creation and maintenance of fund.—For any
  918  municipality, chapter plan, local law municipality, or local law
  919  plan under this chapter:
  920         (1) The municipal police officers’ retirement trust fund in
  921  each municipality described in s. 185.03 shall be created and
  922  maintained in the following manner:
  923         (d) By payment by the municipality or other sources of a
  924  sum equal to the normal cost and the amount required to fund any
  925  actuarial deficiency shown by an actuarial valuation conducted
  926  under as provided in part VII of chapter 112 after taking into
  927  account the amounts described in paragraphs (b), (c), (f), (g),
  928  and (h) and the tax proceeds described in paragraph (a) which
  929  must be used to fund defined benefit plan benefits, except as
  930  otherwise excluded from consideration in determining the
  931  mandatory payment.
  932         (e) For local law plans, in addition to the mandatory
  933  payment described in paragraph (d), by mandatory payment by the
  934  municipality of the amount specified in s. 185.35(3), if the
  935  long-term funded ratio of the plan is less than 80 percent.
  936         (f)(e) By all gifts, bequests and devises when donated to
  937  the fund.
  938         (g)(f) By all accretions to the fund by way of interest or
  939  dividends on bank deposits or otherwise.
  940         (h)(g) By all other sources of income now or hereafter
  941  authorized by law for the augmentation of such municipal police
  942  officers’ retirement trust fund.
  943  
  944  Nothing in this section shall be construed to require adjustment
  945  of member contribution rates in effect on the date this act
  946  becomes a law, including rates that exceed 5 percent of salary,
  947  provided that such rates are at least one-half of 1 percent of
  948  salary.
  949         Section 11. Subsection (2) of section 185.16, Florida
  950  Statutes, is amended to read:
  951         185.16 Requirements for retirement.—For any municipality,
  952  chapter plan, local law municipality, or local law plan under
  953  this chapter, any police officer who completes 10 or more years
  954  of creditable service as a police officer and attains age 55, or
  955  completes 25 years of creditable service as a police officer and
  956  attains age 52, and for such period has been a member of the
  957  retirement fund is eligible for normal retirement benefits.
  958  Normal retirement under the plan is retirement from the service
  959  of the city on or after the normal retirement date. In such
  960  event, for chapter plans and local law plans, payment of
  961  retirement income will be governed by the following provisions
  962  of this section:
  963         (2) The amount of the monthly retirement income payable to
  964  a police officer who retires on or after his or her normal
  965  retirement date shall be an amount equal to the number of the
  966  police officer’s years of credited service multiplied by 2
  967  percent of his or her average final compensation. However, if
  968  current state contributions pursuant to this chapter are not
  969  adequate to fund the additional benefits to meet the minimum
  970  requirements in this chapter, only increment increases shall be
  971  required as state moneys are adequate to provide. Such
  972  increments shall be provided as state moneys become available.
  973         Section 12. Section 185.35, Florida Statutes, is amended to
  974  read:
  975         185.35 Municipalities that have having their own retirement
  976  pension plans for police officers.—For any municipality, chapter
  977  plan, local law municipality, or local law plan under this
  978  chapter, In order for a municipality that has its municipalities
  979  with their own retirement plan pension plans for police
  980  officers, or for police officers and firefighters if both are
  981  included, to participate in the distribution of the tax fund
  982  established under pursuant to s. 185.08, a local law plan and
  983  its plan sponsor plans must meet the required minimum benefits
  984  and minimum standards set forth in this chapter:
  985         (1) If a municipality has a retirement pension plan for
  986  police officers, or for police officers and firefighters if both
  987  are included, which, in the opinion of the division, meets the
  988  required minimum benefits and minimum standards set forth in
  989  this chapter, the board of trustees of the pension plan must, as
  990  approved by a majority of police officers of the municipality,
  991  may:
  992         (a) place the income from the premium tax in s. 185.08 in
  993  such pension plan for the sole and exclusive use of its police
  994  officers, or its police officers and firefighters if both are
  995  included, where it shall become an integral part of that pension
  996  plan and shall be used to fund benefits as follows:
  997         (a) The base premium tax revenues must be used to fund
  998  required benefits. To the extent the base premium tax revenues
  999  exceed the annual actuarial cost of the plan’s required
 1000  benefits, such excess revenues must be used as directed in
 1001  paragraph (b).
 1002         (b) Of the additional premium tax revenues received which
 1003  are in excess of the amount received for the 2012 calendar year
 1004  and any accumulations of additional premium tax revenues which
 1005  have not been applied to fund benefits in excess of the plan’s
 1006  base benefits:
 1007         1. If the plan has a supplemental plan in effect as of
 1008  September 30, 2013, whereby all premium tax revenues received in
 1009  excess of the amount received for the 2012 calendar year are
 1010  scheduled to be used to fund defined contribution plan benefits
 1011  and:
 1012         a. If the plan has a long-term funded ratio of less than 80
 1013  percent, 50 percent of the additional premium tax revenues
 1014  subject to this paragraph must be used as additional
 1015  contributions to pay the plan’s actuarial deficiency and the
 1016  remainder must be used to fund special benefits; or
 1017         b. If the plan has a long-term funded ratio of 80 percent
 1018  or greater, the additional premium tax revenues subject to this
 1019  paragraph must be used to fund special benefits.
 1020         2. If subparagraph 1. is not applicable and the plan has a
 1021  long-term funded ratio of less than 80 percent:
 1022         a. Fifty percent of the additional premium tax revenues
 1023  subject to this paragraph must be used as additional
 1024  contributions to pay the plan’s actuarial deficiency;
 1025         b. Twenty-five percent of the additional premium tax
 1026  revenues subject to this paragraph must be used to fund required
 1027  benefits; and
 1028         c. Twenty-five percent of the additional premium tax
 1029  revenues subject to this paragraph must be placed in a defined
 1030  contribution plan to fund special benefits.
 1031         3. If subparagraph 1. is not applicable and the plan has a
 1032  long-term funded ratio of 80 percent or greater:
 1033         a. Fifty percent of the additional premium tax revenues
 1034  subject to this paragraph must be used to fund required
 1035  benefits; and
 1036         b. Fifty percent of the additional premium tax revenues
 1037  subject to this paragraph must be placed in a defined
 1038  contribution plan to fund special benefits.
 1039  
 1040  Any additional premium tax revenues used to fund the plan’s
 1041  actuarial deficiency pursuant to this paragraph may not be
 1042  considered in determining the mandatory payment described in s.
 1043  185.07(1)(d).
 1044         (c) Additional premium tax revenues not described in
 1045  paragraph (b) must be used to fund benefits that were not
 1046  included in the required benefits pay extra benefits to the
 1047  police officers included in that pension plan; or
 1048         (b) May place the income from the premium tax in s. 185.08
 1049  in a separate supplemental plan to pay extra benefits to the
 1050  police officers, or police officers and firefighters if
 1051  included, participating in such separate supplemental plan.
 1052         (2) Insurance premium tax revenues may not be used to fund
 1053  benefits provided in a defined benefit plan which were not
 1054  provided by the plan as of March 1, 2014. However, for a local
 1055  law plan created after March 1, 2014, up to 50 percent of the
 1056  insurance premium tax revenues may be used to fund defined
 1057  benefit plan component benefits, with the remainder used to fund
 1058  defined contribution plan component benefits.
 1059         (3) If a plan offers benefits in excess of its required
 1060  benefits, such benefits may be reduced if the plan continues to
 1061  meet the required benefits of the plan and the minimum standards
 1062  set forth in this chapter. The amount of insurance premium tax
 1063  revenues previously used to fund benefits in excess of the
 1064  plan’s required benefits before the reduction must be used as
 1065  provided in paragraph (1)(b). Twenty-five percent of the amount
 1066  of any mandatory contribution paid by the municipality which was
 1067  previously used to fund benefits above the level of required
 1068  benefits provided before the reduction must be used as
 1069  additional contributions as specified in s. 185.07 to fund the
 1070  plan’s actuarial deficiency.
 1071         (4)(2) The premium tax provided by this chapter shall in
 1072  all cases be used in its entirety to provide retirement extra
 1073  benefits to police officers, or to police officers and
 1074  firefighters if both are included. However, local law plans in
 1075  effect on October 1, 1998, must comply with the minimum benefit
 1076  provisions of this chapter only to the extent that additional
 1077  premium tax revenues become available to incrementally fund the
 1078  cost of such compliance as provided in s. 185.16(2). If a plan
 1079  is in compliance with such minimum benefit provisions, as
 1080  subsequent additional tax revenues become available, they shall
 1081  be used to provide extra benefits. Local law plans created by
 1082  special act before May 27, 1939, shall be deemed to comply with
 1083  this chapter. For the purpose of this chapter, the term:
 1084         (a) “Additional premium tax revenues” means revenues
 1085  received by a municipality pursuant to s. 185.10 which exceed
 1086  the amount received for calendar year 1997.
 1087         (b) “Extra benefits” means benefits in addition to or
 1088  greater than those provided to general employees of the
 1089  municipality and in addition to those in existence for police
 1090  officers on March 12, 1999.
 1091         (5)(3) A retirement plan or amendment to a retirement plan
 1092  may not be proposed for adoption unless the proposed plan or
 1093  amendment contains an actuarial estimate of the costs involved.
 1094  Such proposed plan or proposed plan change may not be adopted
 1095  without the approval of the municipality or, where permitted,
 1096  the Legislature. Copies of the proposed plan or proposed plan
 1097  change and the actuarial impact statement of the proposed plan
 1098  or proposed plan change shall be furnished to the division
 1099  before the last public hearing on the proposal is held thereon.
 1100  Such statement must also indicate whether the proposed plan or
 1101  proposed plan change is in compliance with s. 14, Art. X of the
 1102  State Constitution and those provisions of part VII of chapter
 1103  112 which are not expressly provided in this chapter.
 1104  Notwithstanding any other provision, only those local law plans
 1105  created by special act of legislation before May 27, 1939, are
 1106  deemed to meet the minimum benefits and minimum standards only
 1107  in this chapter.
 1108         (6)(4) Notwithstanding any other provision, with respect to
 1109  any supplemental plan municipality:
 1110         (a) Section 185.02(7)(a) 185.02(4)(a) does not apply, and a
 1111  local law plan and a supplemental plan may continue to use their
 1112  definition of compensation or salary in existence on March 12,
 1113  1999.
 1114         (b) A local law plan and a supplemental plan must continue
 1115  to be administered by a board or boards of trustees numbered,
 1116  constituted, and selected as the board or boards were numbered,
 1117  constituted, and selected on December 1, 2000.
 1118         (c) The election set forth in paragraph (1)(b) is deemed to
 1119  have been made.
 1120         (7)(5) The retirement plan setting forth the benefits and
 1121  the trust agreement, if any, covering the duties and
 1122  responsibilities of the trustees and the regulations of the
 1123  investment of funds must be in writing and copies made available
 1124  to the participants and to the general public.
 1125         (8) In addition to the defined benefit component of the
 1126  local law plan, each plan sponsor must have a defined
 1127  contribution plan component within the local law plan by October
 1128  1, 2014, or upon the creation date of a new participating plan.
 1129  However, the plan sponsor of any plan established by special act
 1130  of the Legislature has until July 1, 2015, to create a defined
 1131  contribution component within the plan.
 1132         (9) Notwithstanding any other provision of this chapter, a
 1133  municipality that has implemented or proposed changes to a local
 1134  law plan based on the municipality’s reliance on an
 1135  interpretation of this chapter by the department on or after
 1136  August 14, 2012, and before February 1, 2013, may continue the
 1137  implemented changes or continue to implement proposed changes.
 1138  Such reliance must be evidenced by a written collective
 1139  bargaining proposal or agreement, or formal correspondence
 1140  between the municipality and the department which describes the
 1141  specific changes to the local law plan, with the initial
 1142  proposal, agreement, or correspondence from the municipality
 1143  dated before February 1, 2013. Changes to the local law plan
 1144  which are otherwise contrary to this chapter may continue in
 1145  effect until the earlier of October 1, 2017, or the effective
 1146  date of a collective bargaining agreement that is contrary to
 1147  the changes to the local law plan.
 1148         Section 13. The Legislature finds that a proper and
 1149  legitimate state purpose is served when employees and retirees
 1150  of this state and its political subdivisions, and the
 1151  dependents, survivors, and beneficiaries of such employees and
 1152  retirees, are extended the basic protections afforded by
 1153  governmental retirement systems that provide fair and adequate
 1154  benefits and that are managed, administered, and funded in an
 1155  actuarially sound manner as required under s. 14, Article X of
 1156  the State Constitution and part VII of chapter 112, Florida
 1157  Statutes. Therefore, the Legislature determines and declares
 1158  that this act fulfills an important state interest.
 1159         Section 14. This act shall take effect July 1, 2014.