Florida Senate - 2015                              CS for SB 172
       
       
        
       By the Committee on Governmental Oversight and Accountability;
       and Senators Bradley and Ring
       
       
       
       
       585-01007-15                                           2015172c1
    1                        A bill to be entitled                      
    2         An act relating to local government pension reform;
    3         amending s. 175.021, F.S.; requiring that firefighter
    4         pension plans meet the requirements of ch. 175, F.S.,
    5         in order to receive certain insurance premium tax
    6         revenues; amending s. 175.032, F.S.; revising
    7         definitions to conform to changes made by the act and
    8         providing new definitions; amending s. 175.071, F.S.;
    9         conforming a cross-reference; amending s. 175.091,
   10         F.S.; revising the method of creating and maintaining
   11         a firefighters’ pension trust fund; amending s.
   12         175.162, F.S.; deleting a provision basing the
   13         availability of additional benefits in a firefighter
   14         pension plan upon state funding; revising the
   15         calculation of monthly retirement income for a full
   16         time firefighter; specifying the minimum benefits that
   17         must be maintained by certain firefighter pension
   18         plans after a specified date; amending s. 175.351,
   19         F.S.; exempting certain firefighter pension plans of a
   20         municipality or special fire control district from
   21         meeting certain minimum benefits in order to
   22         participate in the distribution of a premium tax;
   23         redesignating the term “pension plan” as “retirement
   24         plan”; revising criteria governing the use of revenues
   25         of the premium tax; authorizing a pension plan to
   26         reduce certain excess benefits if the plan continues
   27         to meet certain minimum benefits and standards;
   28         providing that the use of premium tax revenues may
   29         deviate from the requirements of ch. 175, F.S., under
   30         certain circumstances; revising the conditions for
   31         proposing the adoption of a pension plan or an
   32         amendment to a pension plan; requiring plan sponsors
   33         to have a defined contribution plan component in place
   34         by a certain date; authorizing a municipality or
   35         special fire control district to implement certain
   36         changes to a local law plan which are contrary to ch.
   37         175, F.S., for a limited time, under certain
   38         circumstances; amending s. 185.01, F.S.; requiring
   39         that police officer pension plans meet the
   40         requirements of ch. 185, F.S., in order to receive
   41         certain insurance premium tax revenues; amending s.
   42         185.02, F.S.; revising definitions to conform to
   43         changes made by the act and providing new definitions;
   44         revising applicability of the limitation on the amount
   45         of overtime payments which may be used for pension
   46         benefit calculations; amending s. 185.06, F.S.;
   47         conforming a cross-reference; amending s. 185.07,
   48         F.S.; revising the method of creating and maintaining
   49         a police officers’ retirement trust fund; amending s.
   50         185.16, F.S.; deleting a provision basing the
   51         availability of additional benefits in a police
   52         officer pension plan upon state funding; revising the
   53         calculation of monthly retirement income for a police
   54         officer; specifying the minimum benefits that must be
   55         maintained by certain police officer pension plans
   56         after a specified date; amending s. 185.35, F.S.;
   57         exempting certain municipal police officer pension
   58         plans from meeting certain minimum benefits in order
   59         to participate in the distribution of a premium tax;
   60         redesignating the term “pension plan” as “retirement
   61         plan”; revising criteria governing the use of revenues
   62         from the premium tax; authorizing a plan to reduce
   63         certain excess benefits if the plan continues to meet
   64         certain minimum benefits and minimum standards;
   65         providing that the use of premium tax revenues may
   66         deviate from the requirements of ch. 185, F.S., under
   67         specified circumstances; revising the conditions for
   68         proposing the adoption of a pension plan or amendment
   69         to a pension plan; conforming a cross-reference;
   70         requiring plan sponsors to have a defined contribution
   71         plan component in place by a certain date; authorizing
   72         a municipality to implement certain changes to a local
   73         law plan which are contrary to ch. 185, F.S., for a
   74         limited time; providing a declaration of important
   75         state interest; providing an effective date.
   76          
   77  Be It Enacted by the Legislature of the State of Florida:
   78  
   79         Section 1. Subsection (2) of section 175.021, Florida
   80  Statutes, is amended to read:
   81         175.021 Legislative declaration.—
   82         (2) This chapter hereby establishes, for all municipal and
   83  special district pension plans existing now or hereafter under
   84  this chapter, including chapter plans and local law plans,
   85  minimum benefits and minimum standards for the operation and
   86  funding of such plans, hereinafter referred to as firefighters’
   87  pension trust funds, which must be met as conditions precedent
   88  to the plan or plan sponsor receiving a distribution of
   89  insurance premium tax revenues under s. 175.121. The Minimum
   90  benefits and minimum standards for each plan set forth in this
   91  chapter may not be diminished by local charter, ordinance, or
   92  resolution or by special act of the Legislature and may not, nor
   93  may the minimum benefits or minimum standards be reduced or
   94  offset by any other local, state, or federal law that includes
   95  may include firefighters in its operation, except as provided
   96  under s. 112.65.
   97         Section 2. Section 175.032, Florida Statutes, is amended to
   98  read:
   99         175.032 Definitions.—For any municipality, special fire
  100  control district, chapter plan, local law municipality, local
  101  law special fire control district, or local law plan under this
  102  chapter, the term following words and phrases have the following
  103  meanings:
  104         (1) “Additional premium tax revenues” means revenues
  105  received by a municipality or special fire control district
  106  pursuant to s. 175.121 which exceed base premium tax revenues.
  107         (2)(1)(a) “Average final compensation” for:
  108         (a) A full-time firefighter means one-twelfth of the
  109  average annual compensation of the 5 best years of the last 10
  110  years of creditable service before prior to retirement,
  111  termination, or death, or the career average as a full-time
  112  firefighter since July 1, 1953, whichever is greater. A year is
  113  shall be 12 consecutive months or such other consecutive period
  114  of time as is used and consistently applied.
  115         (b) “Average final compensation” for A volunteer
  116  firefighter means the average salary of the 5 best years of the
  117  last 10 best contributing years before prior to change in status
  118  to a permanent full-time firefighter or retirement as a
  119  volunteer firefighter or the career average of a volunteer
  120  firefighter, since July 1, 1953, whichever is greater.
  121         (3) “Base premium tax revenues” means:
  122         (a) For a local law plan in effect on October 1, 1998, the
  123  revenues received by a municipality or special fire control
  124  district pursuant to s. 175.121 for the 1997 calendar year.
  125         (b) For a local law plan created between October 1, 1998,
  126  and March 1, 2015, inclusive, the revenues received by a
  127  municipality or special fire control district pursuant to s.
  128  175.121 based upon the tax collections during the second
  129  calendar year of participation.
  130         (4)(2) “Chapter plan” means a separate defined benefit
  131  pension plan for firefighters which incorporates by reference
  132  the provisions of this chapter and has been adopted by the
  133  governing body of a municipality or special district. Except as
  134  may be specifically authorized in this chapter, the provisions
  135  of a chapter plan may not differ from the plan provisions set
  136  forth in ss. 175.021-175.341 and ss. 175.361-175.401. Actuarial
  137  valuations of chapter plans shall be conducted by the division
  138  as provided by s. 175.261(1).
  139         (5)(3) “Compensation” or “salary” means, for
  140  noncollectively bargained service earned before July 1, 2011, or
  141  for service earned under collective bargaining agreements in
  142  place before July 1, 2011, the fixed monthly remuneration paid a
  143  firefighter. If remuneration is based on actual services
  144  rendered, as in the case of a volunteer firefighter, the term
  145  means the total cash remuneration received yearly for such
  146  services, prorated on a monthly basis. For noncollectively
  147  bargained service earned on or after July 1, 2011, or for
  148  service earned under collective bargaining agreements entered
  149  into on or after July 1, 2011, the term has the same meaning
  150  except that when calculating retirement benefits, up to 300
  151  hours per year in overtime compensation may be included as
  152  specified in the plan or collective bargaining agreement, but
  153  payments for accrued unused sick or annual leave may not be
  154  included.
  155         (a) Any retirement trust fund or plan that meets the
  156  requirements of this chapter does not, solely by virtue of this
  157  subsection, reduce or diminish the monthly retirement income
  158  otherwise payable to each firefighter covered by the retirement
  159  trust fund or plan.
  160         (b) The member’s compensation or salary contributed as
  161  employee-elective salary reductions or deferrals to any salary
  162  reduction, deferred compensation, or tax-sheltered annuity
  163  program authorized under the Internal Revenue Code shall be
  164  deemed to be the compensation or salary the member would receive
  165  if he or she were not participating in such program and shall be
  166  treated as compensation for retirement purposes under this
  167  chapter.
  168         (c) For any person who first becomes a member in any plan
  169  year beginning on or after January 1, 1996, compensation for
  170  that plan year may not include any amounts in excess of the
  171  Internal Revenue Code s. 401(a)(17) limitation, as amended by
  172  the Omnibus Budget Reconciliation Act of 1993, which limitation
  173  of $150,000 shall be adjusted as required by federal law for
  174  qualified government plans and shall be further adjusted for
  175  changes in the cost of living in the manner provided by Internal
  176  Revenue Code s. 401(a)(17)(B). For any person who first became a
  177  member before the first plan year beginning on or after January
  178  1, 1996, the limitation on compensation may not be less than the
  179  maximum compensation amount that was allowed to be taken into
  180  account under the plan in effect on July 1, 1993, which
  181  limitation shall be adjusted for changes in the cost of living
  182  since 1989 in the manner provided by Internal Revenue Code s.
  183  401(a)(17)(1991).
  184         (6)(4) “Creditable service” or “credited service” means the
  185  aggregate number of years of service, and fractional parts of
  186  years of service, of any firefighter, omitting intervening years
  187  and fractional parts of years when such firefighter may not have
  188  been employed by the municipality or special fire control
  189  district, subject to the following conditions:
  190         (a) A No firefighter may not will receive credit for years
  191  or fractional parts of years of service if he or she has
  192  withdrawn his or her contributions to the fund for those years
  193  or fractional parts of years of service, unless the firefighter
  194  repays into the fund the amount he or she has withdrawn, plus
  195  interest determined by the board. The member has shall have at
  196  least 90 days after his or her reemployment to make repayment.
  197         (b) A firefighter may voluntarily leave his or her
  198  contributions in the fund for a period of 5 years after leaving
  199  the employ of the fire department, pending the possibility of
  200  being rehired by the same department, without losing credit for
  201  the time he or she has participated actively as a firefighter.
  202  If the firefighter is not reemployed as a firefighter, with the
  203  same department, within 5 years, his or her contributions shall
  204  be returned without interest.
  205         (c) Credited service under this chapter shall be provided
  206  only for service as a firefighter, as defined in subsection (8),
  207  or for military service and does not include credit for any
  208  other type of service. A municipality may, by local ordinance,
  209  or a special fire control district may, by resolution, may
  210  provide for the purchase of credit for military service prior to
  211  employment as well as for prior service as a firefighter for
  212  some other employer as long as a firefighter is not entitled to
  213  receive a benefit for such prior service as a firefighter. For
  214  purposes of determining credit for prior service as a
  215  firefighter, in addition to service as a firefighter in this
  216  state, credit may be given for federal, other state, or county
  217  service if the prior service is recognized by the Division of
  218  State Fire Marshal as provided in under chapter 633, or the
  219  firefighter provides proof to the board of trustees that his or
  220  her service is equivalent to the service required to meet the
  221  definition of a firefighter under subsection (8).
  222         (d) In determining the creditable service of any
  223  firefighter, credit for up to 5 years of the time spent in the
  224  military service of the Armed Forces of the United States shall
  225  be added to the years of actual service if:
  226         1. The firefighter is in the active employ of an employer
  227  immediately before prior to such service and leaves a position,
  228  other than a temporary position, for the purpose of voluntary or
  229  involuntary service in the Armed Forces of the United States.
  230         2. The firefighter is entitled to reemployment under the
  231  provisions of the Uniformed Services Employment and Reemployment
  232  Rights Act.
  233         3. The firefighter returns to his or her employment as a
  234  firefighter of the municipality or special fire control district
  235  within 1 year after from the date of release from such active
  236  service.
  237         (7)(5) “Deferred Retirement Option Plan” or “DROP” means a
  238  local law plan retirement option in which a firefighter may
  239  elect to participate. A firefighter may retire for all purposes
  240  of the plan and defer receipt of retirement benefits into a DROP
  241  account while continuing employment with his or her employer.
  242  However, a firefighter who enters the DROP and who is otherwise
  243  eligible to participate may shall not thereby be precluded from
  244  participation or continued participation participating, or
  245  continuing to participate, in a supplemental plan in existence
  246  on, or created after, March 12, 1999 the effective date of this
  247  act.
  248         (8) “Defined contribution plan” means the component of a
  249  local law plan, as provided in s. 175.351(1), to which deposits,
  250  if any, are made to provide benefits for firefighters, or for
  251  firefighters and police officers if both are included. Such
  252  component is an element of a local law plan and exists in
  253  conjunction with the defined benefit plan component that meets
  254  minimum benefits and minimum standards. The retirement benefits,
  255  if any, of the defined contribution plan component shall be
  256  provided through individual member accounts in accordance with
  257  the applicable provisions of the Internal Revenue Code and
  258  related regulations and are limited to the contributions, if
  259  any, made into each member’s account and the actual accumulated
  260  earnings, net of expenses, earned on the member’s account.
  261         (9)(6) “Division” means the Division of Retirement of the
  262  Department of Management Services.
  263         (10)(7) “Enrolled actuary” means an actuary who is enrolled
  264  under Subtitle C of Title III of the Employee Retirement Income
  265  Security Act of 1974 and who is a member of the Society of
  266  Actuaries or the American Academy of Actuaries.
  267         (11)(a)(8)(a) “Firefighter” means a person employed solely
  268  by a constituted fire department of any municipality or special
  269  fire control district who is certified as a firefighter as a
  270  condition of employment in accordance with s. 633.408 and whose
  271  duty it is to extinguish fires, to protect life, or to protect
  272  property. The term includes all certified, supervisory, and
  273  command personnel whose duties include, in whole or in part, the
  274  supervision, training, guidance, and management responsibilities
  275  of full-time firefighters, part-time firefighters, or auxiliary
  276  firefighters but does not include part-time firefighters or
  277  auxiliary firefighters. However, for purposes of this chapter
  278  only, the term also includes public safety officers who are
  279  responsible for performing both police and fire services, who
  280  are certified as police officers or firefighters, and who are
  281  certified by their employers to the Chief Financial Officer as
  282  participating in this chapter before October 1, 1979. Effective
  283  October 1, 1979, public safety officers who have not been
  284  certified as participating in this chapter are considered police
  285  officers for retirement purposes and are eligible to participate
  286  in chapter 185. Any plan may provide that the fire chief has an
  287  option to participate, or not, in that plan.
  288         (b) “Volunteer firefighter” means any person whose name is
  289  carried on the active membership roll of a constituted volunteer
  290  fire department or a combination of a paid and volunteer fire
  291  department of any municipality or special fire control district
  292  and whose duty it is to extinguish fires, to protect life, and
  293  to protect property. Compensation for services rendered by a
  294  volunteer firefighter does shall not disqualify him or her as a
  295  volunteer. A person may shall not be disqualified as a volunteer
  296  firefighter solely because he or she has other gainful
  297  employment. Any person who volunteers assistance at a fire but
  298  is not an active member of a department described herein is not
  299  a volunteer firefighter within the meaning of this paragraph.
  300         (12)(9) “Firefighters’ Pension Trust Fund” means a trust
  301  fund, by whatever name known, as provided under s. 175.041, for
  302  the purpose of assisting municipalities and special fire control
  303  districts in establishing and maintaining a retirement plan for
  304  firefighters.
  305         (13)(10) “Local law municipality” means is any municipality
  306  in which there exists a local law plan exists.
  307         (14)(11) “Local law plan” means a retirement defined
  308  benefit pension plan which includes both a defined benefit plan
  309  component and a defined contribution plan component for
  310  firefighters, or for firefighters and or police officers if both
  311  are where included, as described in s. 175.351, established by
  312  municipal ordinance, special district resolution, or special act
  313  of the Legislature, which enactment sets forth all plan
  314  provisions. Local law plan provisions may vary from the
  315  provisions of this chapter if, provided that required minimum
  316  benefits and minimum standards are met. However, any such
  317  variance must shall provide a greater benefit for firefighters.
  318  Actuarial valuations of local law plans shall be conducted by an
  319  enrolled actuary as provided in s. 175.261(2).
  320         (15)(12) “Local law special fire control district” means is
  321  any special fire control district in which there exists a local
  322  law plan exists.
  323         (16) “Minimum benefits” means the benefits specified in ss.
  324  175.021-175.341 and ss. 175.361-175.401.
  325         (17) “Minimum standards” means the standards specified in
  326  ss. 175.021-175.401.
  327         (18)(13) “Property insurance” means property insurance as
  328  defined in s. 624.604 and covers real and personal property
  329  within the corporate limits of a any municipality, or within the
  330  boundaries of a any special fire control district, within the
  331  state. The term “multiple peril” means a combination or package
  332  policy that includes both property and casualty coverage for a
  333  single premium.
  334         (19)(14) “Retiree” or “retired firefighter” means a
  335  firefighter who has entered retirement status. For the purposes
  336  of a plan that includes a Deferred Retirement Option Plan
  337  (DROP), a firefighter who enters the DROP is shall be considered
  338  a retiree for all purposes of the plan. However, a firefighter
  339  who enters the DROP and who is otherwise eligible to participate
  340  may shall not thereby be precluded from participation or
  341  continued participation participating, or continuing to
  342  participate, in a supplemental plan in existence on, or created
  343  after, March 12, 1999 the effective date of this act.
  344         (20)(15) “Retirement” means a firefighter’s separation from
  345  municipal city or fire district employment as a firefighter with
  346  immediate eligibility for receipt of benefits under the plan.
  347  For purposes of a plan that includes a Deferred Retirement
  348  Option Plan (DROP), “retirement” means the date a firefighter
  349  enters the DROP.
  350         (21) “Special act plan” means a plan subject to the
  351  provisions of this chapter which was created by an act of the
  352  Legislature and continues to require an act of the Legislature
  353  to alter plan benefits.
  354         (22) “Special benefits” means benefits provided in a
  355  defined contribution plan for firefighters.
  356         (23)(16) “Special fire control district” means a special
  357  district, as defined in s. 189.012, established for the purposes
  358  of extinguishing fires, protecting life, and protecting property
  359  within the incorporated or unincorporated portions of a any
  360  county or combination of counties, or within any combination of
  361  incorporated and unincorporated portions of a any county or
  362  combination of counties. The term does not include any dependent
  363  or independent special district, as those terms are defined in
  364  s. 189.012, the employees of which are members of the Florida
  365  Retirement System pursuant to s. 121.051(1) or (2).
  366         (24)(17) “Supplemental plan” means a plan to which deposits
  367  are made to provide special extra benefits for firefighters, or
  368  for firefighters and police officers if both are where included
  369  under this chapter. Such a plan is an element of a local law
  370  plan and exists in conjunction with a defined benefit plan
  371  component that meets the minimum benefits and minimum standards
  372  of this chapter. Any supplemental plan in existence on March 1,
  373  2015, shall be deemed to be a defined contribution plan in
  374  compliance with s. 175.351(6).
  375         (25)(18) “Supplemental plan municipality” means a any local
  376  law municipality in which any there existed a supplemental plan
  377  existed, of any type or nature, as of December 1, 2000.
  378         Section 3. Subsection (7) of section 175.071, Florida
  379  Statutes, is amended to read:
  380         175.071 General powers and duties of board of trustees.—For
  381  any municipality, special fire control district, chapter plan,
  382  local law municipality, local law special fire control district,
  383  or local law plan under this chapter:
  384         (7) To assist the board in meeting its responsibilities
  385  under this chapter, the board, if it so elects, may:
  386         (a) Employ independent legal counsel at the pension fund’s
  387  expense.
  388         (b) Employ an independent enrolled actuary, as defined in
  389  s. 175.032(7), at the pension fund’s expense.
  390         (c) Employ such independent professional, technical, or
  391  other advisers as it deems necessary at the pension fund’s
  392  expense.
  393  
  394  If the board chooses to use the municipality’s or special
  395  district’s legal counsel or actuary, or chooses to use any of
  396  the municipality’s or special district’s other professional,
  397  technical, or other advisers, it must do so only under terms and
  398  conditions acceptable to the board.
  399         Section 4. Paragraph (d) of subsection (1) of section
  400  175.091, Florida Statutes, is amended to read:
  401         175.091 Creation and maintenance of fund.—For any
  402  municipality, special fire control district, chapter plan, local
  403  law municipality, local law special fire control district, or
  404  local law plan under this chapter:
  405         (1) The firefighters’ pension trust fund in each
  406  municipality and in each special fire control district shall be
  407  created and maintained in the following manner:
  408         (d) By mandatory payment by the municipality or special
  409  fire control district of a sum equal to the normal cost of and
  410  the amount required to fund any actuarial deficiency shown by an
  411  actuarial valuation conducted under as provided in part VII of
  412  chapter 112 after taking into account the amounts described in
  413  paragraphs (b), (c), (e), (f), and (g) and the tax proceeds
  414  described in paragraph (a) which are used to fund benefits in a
  415  defined benefit plan component.
  416  
  417  Nothing in this section shall be construed to require adjustment
  418  of member contribution rates in effect on the date this act
  419  becomes a law, including rates that exceed 5 percent of salary,
  420  provided that such rates are at least one-half of 1 percent of
  421  salary.
  422         Section 5. Paragraph (a) of subsection (2) of section
  423  175.162, Florida Statutes, is amended to read:
  424         175.162 Requirements for retirement.—For any municipality,
  425  special fire control district, chapter plan, local law
  426  municipality, local law special fire control district, or local
  427  law plan under this chapter, any firefighter who completes 10 or
  428  more years of creditable service as a firefighter and attains
  429  age 55, or completes 25 years of creditable service as a
  430  firefighter and attains age 52, and who for such minimum period
  431  has been a member of the firefighters’ pension trust fund
  432  operating under a chapter plan or local law plan, is eligible
  433  for normal retirement benefits. Normal retirement under the plan
  434  is retirement from the service of the municipality or special
  435  fire control district on or after the normal retirement date. In
  436  such event, payment of retirement income will be governed by the
  437  following provisions of this section:
  438         (2)(a)1. The amount of monthly retirement income payable to
  439  a full-time firefighter who retires on or after his or her
  440  normal retirement date shall be an amount equal to the number of
  441  his or her years of credited service multiplied by 2.75 2
  442  percent of his or her average final compensation as a full-time
  443  firefighter. However, if current state contributions pursuant to
  444  this chapter are not adequate to fund the additional benefits to
  445  meet the minimum requirements in this chapter, only such
  446  incremental increases shall be required as state moneys are
  447  adequate to provide. Such increments shall be provided as state
  448  moneys become available.
  449         2. Effective July 1, 2015, a plan that is in compliance
  450  with this chapter except that the plan provides a benefit that
  451  is less than 2.75 percent of the average final compensation of a
  452  full-time firefighter for all years of credited service or
  453  provides an effective benefit that is less than 2.75 percent as
  454  a result of a maximum benefit limitation:
  455         a. Must maintain, at a minimum, the percentage amount or
  456  maximum benefit limitation in effect on July 1, 2015, and is not
  457  required to increase the benefit to 2.75 percent of the average
  458  final compensation of a full-time firefighter for all years of
  459  credited service; or
  460         b. If the plan changes the percentage amount or maximum
  461  benefit limitation to 2.75 percent, or more, of the average
  462  final compensation of a full-time firefighter for all years of
  463  credited service, the plan may not thereafter decrease the
  464  percentage amount or maximum benefit limitation to less than
  465  2.75 percent of the average final compensation of a full-time
  466  firefighter for all years of credited service.
  467         Section 6. Section 175.351, Florida Statutes, is amended to
  468  read:
  469         175.351 Municipalities and special fire control districts
  470  that have having their own retirement pension plans for
  471  firefighters.—For any municipality, special fire control
  472  district, local law municipality, local law special fire control
  473  district, or local law plan under this chapter, In order for a
  474  municipality or municipalities and special fire control district
  475  that has its districts with their own retirement plan pension
  476  plans for firefighters, or for firefighters and police officers
  477  if both are included, to participate in the distribution of the
  478  tax fund established under pursuant to s. 175.101, a local law
  479  plan plans must meet the minimum benefits and minimum standards,
  480  except as provided in the mutual consent provisions in paragraph
  481  (1)(g) with respect to the minimum benefits not met as of
  482  October 1, 2012 set forth in this chapter.
  483         (1) If a municipality has a retirement pension plan for
  484  firefighters, or a pension plan for firefighters and police
  485  officers if both are included, which in the opinion of the
  486  division meets the minimum benefits and minimum standards set
  487  forth in this chapter, the board of trustees of the retirement
  488  pension plan must, as approved by a majority of firefighters of
  489  the municipality, may:
  490         (a) place the income from the premium tax in s. 175.101 in
  491  such pension plan for the sole and exclusive use of its
  492  firefighters, or for firefighters and police officers if both
  493  are included, where it shall become an integral part of that
  494  pension plan and shall be used to fund benefits as provided
  495  herein. Effective October 1, 2015, for noncollectively bargained
  496  service or upon entering into a collective bargaining agreement
  497  on or after July 1, 2015:
  498         (a) The base premium tax revenues must be used to fund
  499  minimum benefits or other retirement benefits in excess of the
  500  minimum benefits as determined by the municipality or special
  501  fire control district.
  502         (b) Of the additional premium tax revenues received that
  503  are in excess of the amount received for the 2012 calendar year,
  504  50 percent must be used to fund minimum benefits or other
  505  retirement benefits in excess of the minimum benefits as
  506  determined by the municipality or special fire control district,
  507  and 50 percent must be placed in a defined contribution plan to
  508  fund special benefits.
  509         (c) Additional premium tax revenues not described in
  510  paragraph (b) must be used to fund benefits that are not
  511  included in the minimum benefits. If the additional premium tax
  512  revenues subject to this paragraph exceed the full annual cost
  513  of benefits provided through the plan which are in excess of the
  514  minimum benefits, any amount in excess of the full annual cost
  515  must be used as provided in paragraph (b).
  516         (d) Of any accumulations of additional premium tax revenues
  517  which have not been allocated to fund benefits in excess of the
  518  minimum benefits, 50 percent of the amount of the accumulations
  519  must be used to fund special benefits, and 50 percent must be
  520  applied to fund any unfunded actuarial liabilities of the plan;
  521  provided that any amount of accumulations in excess of the
  522  amount required to fund the unfunded actuarial liabilities must
  523  be used to fund special benefits to pay extra benefits to the
  524  firefighters included in that pension plan; or
  525         (b) Place the income from the premium tax in s. 175.101 in
  526  a separate supplemental plan to pay extra benefits to
  527  firefighters, or to firefighters and police officers if
  528  included, participating in such separate supplemental plan.
  529         (e) For a plan created after March 1, 2015, 50 percent of
  530  the insurance premium tax revenues must be used to fund defined
  531  benefit plan component benefits, with the remainder used to fund
  532  defined contribution plan component benefits.
  533         (f) If a plan offers benefits in excess of the minimum
  534  benefits, such benefits, excluding supplemental plan benefits in
  535  effect as of September 30, 2014, may be reduced if the plan
  536  continues to meet minimum benefits and minimum standards. The
  537  amount of insurance premium tax revenues previously used to fund
  538  benefits in excess of minimum benefits before the reduction,
  539  excluding the amount of any additional premium tax revenues
  540  distributed to a supplemental plan for the 2012 calendar year,
  541  must be used as provided in paragraph (b). However, benefits in
  542  excess of minimum benefits may not be reduced if a plan does not
  543  meet the minimum percentage amount of 2.75 percent of the
  544  average final compensation of a full-time firefighter, as
  545  required by s. 175.162(2)(a)1., or provides an effective benefit
  546  that is below 2.75 percent as a result of a maximum benefit
  547  limitation as described in s. 175.162(2)(a)2.
  548         (g) Notwithstanding paragraphs (a)-(f), the use of premium
  549  tax revenues, including any accumulations of additional premium
  550  tax revenues which have not been allocated to fund benefits in
  551  excess of minimum benefits, may deviate from the provisions of
  552  this subsection by mutual consent of the members’ collective
  553  bargaining representative or, if there is no representative, by
  554  a majority of the firefighter members of the fund, and by
  555  consent of the municipality or special fire control district,
  556  provided that the plan continues to meet minimum benefits and
  557  minimum standards; however, a plan that operates pursuant to
  558  this paragraph and does not meet minimum benefits as of October
  559  1, 2012, may continue to provide the benefits that do not meet
  560  the minimum benefits at the same level as was provided as of
  561  October 1, 2012, and all other benefit levels must continue to
  562  meet the minimum benefits. Such mutually agreed deviation must
  563  continue until modified or revoked by subsequent mutual consent
  564  of the members’ collective bargaining representative or, if
  565  none, by a majority of the firefighter members of the fund, and
  566  the municipality or special fire control district. An existing
  567  arrangement for the use of premium tax revenues contained within
  568  a special act plan or a plan within a supplemental plan
  569  municipality is considered, as of July 1, 2015, to be a
  570  deviation for which mutual consent has been granted.
  571         (2) The premium tax provided by this chapter must shall in
  572  all cases be used in its entirety to provide retirement extra
  573  benefits to firefighters, or to firefighters and police officers
  574  if both are included. However, local law plans in effect on
  575  October 1, 1998, must comply with the minimum benefit provisions
  576  of this chapter only to the extent that additional premium tax
  577  revenues become available to incrementally fund the cost of such
  578  compliance as provided in s. 175.162(2)(a). If a plan is in
  579  compliance with such minimum benefit provisions, as subsequent
  580  additional premium tax revenues become available, they must be
  581  used to provide extra benefits. Local law plans created by
  582  special act before May 27, 1939, are deemed to comply with this
  583  chapter. For the purpose of this chapter, the term:
  584         (a) “Additional premium tax revenues” means revenues
  585  received by a municipality or special fire control district
  586  pursuant to s. 175.121 which exceed that amount received for
  587  calendar year 1997.
  588         (b) “Extra benefits” means benefits in addition to or
  589  greater than those provided to general employees of the
  590  municipality and in addition to those in existence for
  591  firefighters on March 12, 1999.
  592         (3) A retirement plan or amendment to a retirement plan may
  593  not be proposed for adoption unless the proposed plan or
  594  amendment contains an actuarial estimate of the costs involved.
  595  Such proposed plan or proposed plan change may not be adopted
  596  without the approval of the municipality, special fire control
  597  district, or, where required permitted, the Legislature. Copies
  598  of the proposed plan or proposed plan change and the actuarial
  599  impact statement of the proposed plan or proposed plan change
  600  shall be furnished to the division before the last public
  601  hearing on the proposal is held thereon. Such statement must
  602  also indicate whether the proposed plan or proposed plan change
  603  is in compliance with s. 14, Art. X of the State Constitution
  604  and those provisions of part VII of chapter 112 which are not
  605  expressly provided in this chapter. Notwithstanding any other
  606  provision, only those local law plans created by special act of
  607  legislation before May 27, 1939, are deemed to meet the minimum
  608  benefits and minimum standards only in this chapter.
  609         (4) Notwithstanding any other provision, with respect to
  610  any supplemental plan municipality:
  611         (a) A local law plan and a supplemental plan may continue
  612  to use their definition of compensation or salary in existence
  613  on March 12, 1999.
  614         (b) Section 175.061(1)(b) does not apply, and a local law
  615  plan and a supplemental plan shall continue to be administered
  616  by a board or boards of trustees numbered, constituted, and
  617  selected as the board or boards were numbered, constituted, and
  618  selected on December 1, 2000.
  619         (c) The election set forth in paragraph (1)(b) is deemed to
  620  have been made.
  621         (5) The retirement plan setting forth the benefits and the
  622  trust agreement, if any, covering the duties and
  623  responsibilities of the trustees and the regulations of the
  624  investment of funds must be in writing, and copies made
  625  available to the participants and to the general public.
  626         (6) In addition to the defined benefit plan component of
  627  the local law plan, each plan sponsor must have a defined
  628  contribution plan component within the local law plan by October
  629  1, 2015, for noncollectively bargained service, upon entering
  630  into a collective bargaining agreement on or after July 1, 2015,
  631  or upon the creation date of a new participating plan. Depending
  632  upon the application of subsection (1), a defined contribution
  633  plan component may or may not receive any funding.
  634         (7) Notwithstanding any other provision of this chapter, a
  635  municipality or special fire control district that has
  636  implemented or proposed changes to a local law plan based on the
  637  municipality’s or district’s reliance on an interpretation of
  638  this chapter by the Department of Management Services on or
  639  after August 14, 2012, and before March 3, 2015, may continue
  640  the implemented changes or continue to implement proposed
  641  changes. Such reliance must be evidenced by a written collective
  642  bargaining proposal or agreement, or formal correspondence
  643  between the municipality or district and the Department of
  644  Management Services which describes the specific changes to the
  645  local law plan, with the initial proposal, agreement, or
  646  correspondence from the municipality or district dated before
  647  March 3, 2015. Changes to the local law plan which are otherwise
  648  contrary to minimum benefits and minimum standards may continue
  649  in effect until the earlier of October 1, 2018, or the effective
  650  date of a collective bargaining agreement that is contrary to
  651  the changes to the local law plan.
  652         Section 7. Subsection (2) of section 185.01, Florida
  653  Statutes, is amended to read:
  654         185.01 Legislative declaration.—
  655         (2) This chapter hereby establishes, for all municipal
  656  pension plans now or hereinafter provided for under this
  657  chapter, including chapter plans and local law plans, minimum
  658  benefits and minimum standards for the operation and funding of
  659  such plans, hereinafter referred to as municipal police
  660  officers’ retirement trust funds, which must be met as
  661  conditions precedent to the plan or plan sponsor receiving a
  662  distribution of insurance premium tax revenues under s. 185.10.
  663  The Minimum benefits and minimum standards for each plan set
  664  forth in this chapter may not be diminished by local ordinance
  665  or by special act of the Legislature and may not, nor may the
  666  minimum benefits or minimum standards be reduced or offset by
  667  any other local, state, or federal plan that includes may
  668  include police officers in its operation, except as provided
  669  under s. 112.65.
  670         Section 8. Section 185.02, Florida Statutes, is amended to
  671  read:
  672         185.02 Definitions.—For any municipality, chapter plan,
  673  local law municipality, or local law plan under this chapter,
  674  the term following words and phrases as used in this chapter
  675  shall have the following meanings, unless a different meaning is
  676  plainly required by the context:
  677         (1) “Additional premium tax revenues” means revenues
  678  received by a municipality pursuant to s. 185.10 which exceed
  679  base premium tax revenues.
  680         (2)(1) “Average final compensation” means one-twelfth of
  681  the average annual compensation of the 5 best years of the last
  682  10 years of creditable service before prior to retirement,
  683  termination, or death.
  684         (3) “Base premium tax revenues” means:
  685         (a) For a local law plan in effect on October 1, 1998, the
  686  revenues received by a municipality pursuant to s. 185.10 for
  687  the 1997 calendar year.
  688         (b) For a local law plan created between October 1, 1998,
  689  and March 1, 2015, inclusive, the revenues received by a
  690  municipality pursuant to s. 185.10 based upon the tax
  691  collections during the second calendar year of participation.
  692         (4)(2) “Casualty insurance” means automobile public
  693  liability and property damage insurance to be applied at the
  694  place of residence of the owner, or if the subject is a
  695  commercial vehicle, to be applied at the place of business of
  696  the owner; automobile collision insurance; fidelity bonds;
  697  burglary and theft insurance; and plate glass insurance. The
  698  term “multiple peril” means a combination or package policy that
  699  includes both property coverage and casualty coverage for a
  700  single premium.
  701         (5)(3) “Chapter plan” means a separate defined benefit
  702  pension plan for police officers which incorporates by reference
  703  the provisions of this chapter and has been adopted by the
  704  governing body of a municipality as provided in s. 185.08.
  705  Except as may be specifically authorized in this chapter, the
  706  provisions of a chapter plan may not differ from the plan
  707  provisions set forth in ss. 185.01-185.341 and ss. 185.37
  708  185.39. Actuarial valuations of chapter plans shall be conducted
  709  by the division as provided by s. 185.221(1)(b).
  710         (6)(4) “Compensation” or “salary” means, for
  711  noncollectively bargained service earned before July 1, 2011, or
  712  for service earned under collective bargaining agreements in
  713  place before July 1, 2011, the total cash remuneration including
  714  “overtime” paid by the primary employer to a police officer for
  715  services rendered, but not including any payments for extra duty
  716  or special detail work performed on behalf of a second party
  717  employer. Overtime may be limited before July 1, 2011, in a
  718  local law plan by the plan provisions A local law plan may limit
  719  the amount of overtime payments which can be used for retirement
  720  benefit calculation purposes; however, such overtime limit may
  721  not be less than 300 hours per officer per calendar year. For
  722  noncollectively bargained service earned on or after July 1,
  723  2011, or for service earned under collective bargaining
  724  agreements entered into on or after July 1, 2011, the term has
  725  the same meaning except that when calculating retirement
  726  benefits, up to 300 hours per year in overtime compensation may
  727  be included as specified in the plan or collective bargaining
  728  agreement, but payments for accrued unused sick or annual leave
  729  may not be included.
  730         (a) Any retirement trust fund or plan that meets the
  731  requirements of this chapter does not, solely by virtue of this
  732  subsection, reduce or diminish the monthly retirement income
  733  otherwise payable to each police officer covered by the
  734  retirement trust fund or plan.
  735         (b) The member’s compensation or salary contributed as
  736  employee-elective salary reductions or deferrals to any salary
  737  reduction, deferred compensation, or tax-sheltered annuity
  738  program authorized under the Internal Revenue Code shall be
  739  deemed to be the compensation or salary the member would receive
  740  if he or she were not participating in such program and shall be
  741  treated as compensation for retirement purposes under this
  742  chapter.
  743         (c) For any person who first becomes a member in any plan
  744  year beginning on or after January 1, 1996, compensation for
  745  that plan year may not include any amounts in excess of the
  746  Internal Revenue Code s. 401(a)(17) limitation, as amended by
  747  the Omnibus Budget Reconciliation Act of 1993, which limitation
  748  of $150,000 shall be adjusted as required by federal law for
  749  qualified government plans and shall be further adjusted for
  750  changes in the cost of living in the manner provided by Internal
  751  Revenue Code s. 401(a)(17)(B). For any person who first became a
  752  member before the first plan year beginning on or after January
  753  1, 1996, the limitation on compensation may not be less than the
  754  maximum compensation amount that was allowed to be taken into
  755  account under the plan as in effect on July 1, 1993, which
  756  limitation shall be adjusted for changes in the cost of living
  757  since 1989 in the manner provided by Internal Revenue Code s.
  758  401(a)(17)(1991).
  759         (7)(5) “Creditable service” or “credited service” means the
  760  aggregate number of years of service and fractional parts of
  761  years of service of any police officer, omitting intervening
  762  years and fractional parts of years when such police officer may
  763  not have been employed by the municipality subject to the
  764  following conditions:
  765         (a) A No police officer may not will receive credit for
  766  years or fractional parts of years of service if he or she has
  767  withdrawn his or her contributions to the fund for those years
  768  or fractional parts of years of service, unless the police
  769  officer repays into the fund the amount he or she has withdrawn,
  770  plus interest as determined by the board. The member has shall
  771  have at least 90 days after his or her reemployment to make
  772  repayment.
  773         (b) A police officer may voluntarily leave his or her
  774  contributions in the fund for a period of 5 years after leaving
  775  the employ of the police department, pending the possibility of
  776  his or her being rehired by the same department, without losing
  777  credit for the time he or she has participated actively as a
  778  police officer. If he or she is not reemployed as a police
  779  officer with the same department within 5 years, his or her
  780  contributions shall be returned to him or her without interest.
  781         (c) Credited service under this chapter shall be provided
  782  only for service as a police officer, as defined in subsection
  783  (11), or for military service and may not include credit for any
  784  other type of service. A municipality may, by local ordinance,
  785  may provide for the purchase of credit for military service
  786  occurring before employment as well as prior service as a police
  787  officer for some other employer as long as the police officer is
  788  not entitled to receive a benefit for such other prior service
  789  as a police officer. For purposes of determining credit for
  790  prior service, in addition to service as a police officer in
  791  this state, credit may be given for federal, other state, or
  792  county service as long as such service is recognized by the
  793  Criminal Justice Standards and Training Commission within the
  794  Department of Law Enforcement as provided in under chapter 943
  795  or the police officer provides proof to the board of trustees
  796  that such service is equivalent to the service required to meet
  797  the definition of a police officer under subsection (11).
  798         (d) In determining the creditable service of a any police
  799  officer, credit for up to 5 years of the time spent in the
  800  military service of the Armed Forces of the United States shall
  801  be added to the years of actual service, if:
  802         1. The police officer is in the active employ of the
  803  municipality before prior to such service and leaves a position,
  804  other than a temporary position, for the purpose of voluntary or
  805  involuntary service in the Armed Forces of the United States.
  806         2. The police officer is entitled to reemployment under the
  807  provisions of the Uniformed Services Employment and Reemployment
  808  Rights Act.
  809         3. The police officer returns to his or her employment as a
  810  police officer of the municipality within 1 year after from the
  811  date of his or her release from such active service.
  812         (8)(6) “Deferred Retirement Option Plan” or “DROP” means a
  813  local law plan retirement option in which a police officer may
  814  elect to participate. A police officer may retire for all
  815  purposes of the plan and defer receipt of retirement benefits
  816  into a DROP account while continuing employment with his or her
  817  employer. However, a police officer who enters the DROP and who
  818  is otherwise eligible to participate may shall not thereby be
  819  precluded from participation or continued participation
  820  participating, or continuing to participate, in a supplemental
  821  plan in existence on, or created after, March 12, 1999 the
  822  effective date of this act.
  823         (9) “Defined contribution plan” means the component of a
  824  local law plan, as provided in s. 185.35(1), to which deposits,
  825  if any, are made to provide benefits for police officers, or for
  826  police officers and firefighters if both are included. Such
  827  component is an element of a local law plan and exists in
  828  conjunction with the defined benefit component that meets
  829  minimum benefits and minimum standards. The retirement benefits,
  830  if any, of the defined contribution plan shall be provided
  831  through individual member accounts in accordance with the
  832  applicable provisions of the Internal Revenue Code and related
  833  regulations and are limited to the contributions, if any, made
  834  into each member’s account and the actual accumulated earnings,
  835  net of expenses, earned on the member’s account.
  836         (10)(7) “Division” means the Division of Retirement of the
  837  Department of Management Services.
  838         (11)(8) “Enrolled actuary” means an actuary who is enrolled
  839  under Subtitle C of Title III of the Employee Retirement Income
  840  Security Act of 1974 and who is a member of the Society of
  841  Actuaries or the American Academy of Actuaries.
  842         (12)(9) “Local law municipality” means is any municipality
  843  in which there exists a local law plan exists.
  844         (13)(10) “Local law plan” means a retirement defined
  845  benefit pension plan that includes both a defined benefit plan
  846  component and a defined contribution plan component for police
  847  officers, or for police officers and firefighters if both are,
  848  where included, as described in s. 185.35, established by
  849  municipal ordinance or special act of the Legislature, which
  850  enactment sets forth all plan provisions. Local law plan
  851  provisions may vary from the provisions of this chapter if,
  852  provided that required minimum benefits and minimum standards
  853  are met. However, any such variance must shall provide a greater
  854  benefit for police officers. Actuarial valuations of local law
  855  plans shall be conducted by an enrolled actuary as provided in
  856  s. 185.221(2)(b).
  857         (14) “Minimum benefits” means the benefits specified in ss.
  858  185.01-185.341 and ss. 185.37-185.50.
  859         (15) “Minimum standards” means the standards specified in
  860  ss. 185.01-185.50.
  861         (16)(11) “Police officer” means any person who is elected,
  862  appointed, or employed full time by a any municipality, who is
  863  certified or required to be certified as a law enforcement
  864  officer in compliance with s. 943.1395, who is vested with
  865  authority to bear arms and make arrests, and whose primary
  866  responsibility is the prevention and detection of crime or the
  867  enforcement of the penal, criminal, traffic, or highway laws of
  868  the state. The term This definition includes all certified
  869  supervisory and command personnel whose duties include, in whole
  870  or in part, the supervision, training, guidance, and management
  871  responsibilities of full-time law enforcement officers, part
  872  time law enforcement officers, or auxiliary law enforcement
  873  officers, but does not include part-time law enforcement
  874  officers or auxiliary law enforcement officers as those terms
  875  the same are defined in s. 943.10(6) and (8), respectively. For
  876  the purposes of this chapter only, the term also includes
  877  “police officer” also shall include a public safety officer who
  878  is responsible for performing both police and fire services. Any
  879  plan may provide that the police chief shall have an option to
  880  participate, or not, in that plan.
  881         (17)(12) “Police Officers’ Retirement Trust Fund” means a
  882  trust fund, by whatever name known, as provided under s. 185.03
  883  for the purpose of assisting municipalities in establishing and
  884  maintaining a retirement plan for police officers.
  885         (18)(13) “Retiree” or “retired police officer” means a
  886  police officer who has entered retirement status. For the
  887  purposes of a plan that includes a Deferred Retirement Option
  888  Plan (DROP), a police officer who enters the DROP is shall be
  889  considered a retiree for all purposes of the plan. However, a
  890  police officer who enters the DROP and who is otherwise eligible
  891  to participate may shall not thereby be precluded from
  892  participation or continued participation participating, or
  893  continuing to participate, in a supplemental plan in existence
  894  on, or created after, March 12, 1999 the effective date of this
  895  act.
  896         (19)(14) “Retirement” means a police officer’s separation
  897  from municipal city employment as a police officer with
  898  immediate eligibility for receipt of benefits under the plan.
  899  For purposes of a plan that includes a Deferred Retirement
  900  Option Plan (DROP), “retirement” means the date a police officer
  901  enters the DROP.
  902         (20) “Special act plan” means a plan subject to the
  903  provisions of this chapter which was created by an act of the
  904  Legislature and continues to require an act of the Legislature
  905  to alter plan benefits.
  906         (21) “Special benefits” means benefits provided in a
  907  defined contribution plan component for police officers.
  908         (22)(15) “Supplemental plan” means a plan to which deposits
  909  of the premium tax moneys as provided in s. 185.08 are made to
  910  provide special extra benefits to police officers, or police
  911  officers and firefighters if both are where included, under this
  912  chapter. Such a plan is an element of a local law plan and
  913  exists in conjunction with a defined benefit plan component that
  914  meets the minimum benefits and minimum standards of this
  915  chapter. Any supplemental plan in existence on March 1, 2015,
  916  shall be deemed to be a defined contribution plan in compliance
  917  with s. 185.35(6).
  918         (23)(16) “Supplemental plan municipality” means a any local
  919  law municipality in which any there existed a supplemental plan
  920  existed as of December 1, 2000.
  921         Section 9. Subsection (6) of section 185.06, Florida
  922  Statutes, is amended to read:
  923         185.06 General powers and duties of board of trustees.—For
  924  any municipality, chapter plan, local law municipality, or local
  925  law plan under this chapter:
  926         (6) To assist the board in meeting its responsibilities
  927  under this chapter, the board, if it so elects, may:
  928         (a) Employ independent legal counsel at the pension fund’s
  929  expense.
  930         (b) Employ an independent enrolled actuary, as defined in
  931  s. 185.02(8), at the pension fund’s expense.
  932         (c) Employ such independent professional, technical, or
  933  other advisers as it deems necessary at the pension fund’s
  934  expense.
  935  
  936  If the board chooses to use the municipality’s or special
  937  district’s legal counsel or actuary, or chooses to use any of
  938  the municipality’s other professional, technical, or other
  939  advisers, it must do so only under terms and conditions
  940  acceptable to the board.
  941         Section 10. Paragraph (d) of subsection (1) of section
  942  185.07, Florida Statutes, is amended to read:
  943         185.07 Creation and maintenance of fund.—For any
  944  municipality, chapter plan, local law municipality, or local law
  945  plan under this chapter:
  946         (1) The municipal police officers’ retirement trust fund in
  947  each municipality described in s. 185.03 shall be created and
  948  maintained in the following manner:
  949         (d) By payment by the municipality or other sources of a
  950  sum equal to the normal cost and the amount required to fund any
  951  actuarial deficiency shown by an actuarial valuation conducted
  952  under as provided in part VII of chapter 112 after taking into
  953  account the amounts described in paragraphs (b), (c), (e), (f),
  954  and (g) and the tax proceeds described in paragraph (a) which
  955  are used to fund benefits provided in a defined benefit plan
  956  component.
  957  
  958  Nothing in this section shall be construed to require adjustment
  959  of member contribution rates in effect on the date this act
  960  becomes a law, including rates that exceed 5 percent of salary,
  961  provided that such rates are at least one-half of 1 percent of
  962  salary.
  963         Section 11. Subsection (2) of section 185.16, Florida
  964  Statutes, is amended to read:
  965         185.16 Requirements for retirement.—For any municipality,
  966  chapter plan, local law municipality, or local law plan under
  967  this chapter, any police officer who completes 10 or more years
  968  of creditable service as a police officer and attains age 55, or
  969  completes 25 years of creditable service as a police officer and
  970  attains age 52, and for such period has been a member of the
  971  retirement fund is eligible for normal retirement benefits.
  972  Normal retirement under the plan is retirement from the service
  973  of the city on or after the normal retirement date. In such
  974  event, for chapter plans and local law plans, payment of
  975  retirement income will be governed by the following provisions
  976  of this section:
  977         (2)(a) The amount of the monthly retirement income payable
  978  to a police officer who retires on or after his or her normal
  979  retirement date shall be an amount equal to the number of the
  980  police officer’s years of credited service multiplied by 2.75 2
  981  percent of his or her average final compensation. However, if
  982  current state contributions pursuant to this chapter are not
  983  adequate to fund the additional benefits to meet the minimum
  984  requirements in this chapter, only increment increases shall be
  985  required as state moneys are adequate to provide. Such
  986  increments shall be provided as state moneys become available.
  987         (b) Effective July 1, 2015, a plan that is in compliance
  988  with this chapter except that the plan provides a benefit that
  989  is less than 2.75 percent of the average final compensation of a
  990  police officer for all years of credited service or provides an
  991  effective benefit that is less than 2.75 percent as a result of
  992  a maximum benefit limitation:
  993         1. Must maintain, at a minimum, the percentage amount or
  994  maximum benefit limitation in effect on July 1, 2015, and is not
  995  required to increase the benefit to 2.75 percent of the average
  996  final compensation of a police officer for all years of credited
  997  service; or
  998         2.If the plan changes the percentage amount or maximum
  999  benefit limitation to 2.75 percent, or more, of the average
 1000  final compensation of a police officer for all years of credited
 1001  service, the plan may not thereafter decrease the percentage
 1002  amount or the maximum benefit limitation to less than 2.75
 1003  percent of the average final compensation of a police officer
 1004  for all years of credited service.
 1005         Section 12. Section 185.35, Florida Statutes, is amended to
 1006  read:
 1007         185.35 Municipalities that have having their own retirement
 1008  pension plans for police officers.—For any municipality, chapter
 1009  plan, local law municipality, or local law plan under this
 1010  chapter, In order for a municipality that has its municipalities
 1011  with their own retirement plan pension plans for police
 1012  officers, or for police officers and firefighters if both are
 1013  included, to participate in the distribution of the tax fund
 1014  established under pursuant to s. 185.08, a local law plan plans
 1015  must meet the minimum benefits and minimum standards, except as
 1016  provided in the mutual consent provisions in paragraph (1)(g)
 1017  with respect to the minimum benefits not met as of October 1,
 1018  2012. set forth in this chapter:
 1019         (1) If a municipality has a retirement pension plan for
 1020  police officers, or for police officers and firefighters if both
 1021  are included, which, in the opinion of the division, meets the
 1022  minimum benefits and minimum standards set forth in this
 1023  chapter, the board of trustees of the retirement pension plan
 1024  must, as approved by a majority of police officers of the
 1025  municipality, may:
 1026         (a) place the income from the premium tax in s. 185.08 in
 1027  such pension plan for the sole and exclusive use of its police
 1028  officers, or its police officers and firefighters if both are
 1029  included, where it shall become an integral part of that pension
 1030  plan and shall be used to fund benefits as provided herein.
 1031  Effective October 1, 2015, for noncollectively bargained service
 1032  or upon entering into a collective bargaining agreement on or
 1033  after July 1, 2015:
 1034         (a) The base premium tax revenues must be used to fund
 1035  minimum benefits or other retirement benefits in excess of the
 1036  minimum benefits as determined by the municipality.
 1037         (b) Of the additional premium tax revenues received that
 1038  are in excess of the amount received for the 2012 calendar year,
 1039  50 percent must be used to fund minimum benefits or other
 1040  retirement benefits in excess of the minimum benefits as
 1041  determined by the municipality, and 50 percent must be placed in
 1042  a defined contribution plan component to fund special benefits.
 1043         (c) Additional premium tax revenues not described in
 1044  paragraph (b) must be used to fund benefits that are not
 1045  included in the minimum benefits. If the additional premium tax
 1046  revenues subject to this paragraph exceed the full annual cost
 1047  of benefits provided through the plan which are in excess of the
 1048  minimum benefits, any amount in excess of the full annual cost
 1049  must be used as provided in paragraph (b).
 1050         (d) Of any accumulations of additional premium tax revenues
 1051  which have not been allocated to fund benefits in excess of the
 1052  minimum benefits, 50 percent of the amount of the accumulations
 1053  must be used to fund special benefits and 50 percent must be
 1054  applied to fund any unfunded actuarial liabilities of the plan;
 1055  provided that any amount of accumulations in excess of the
 1056  amount required to fund the unfunded actuarial liabilities must
 1057  be used to fund special benefits pay extra benefits to the
 1058  police officers included in that pension plan; or
 1059         (b) May place the income from the premium tax in s. 185.08
 1060  in a separate supplemental plan to pay extra benefits to the
 1061  police officers, or police officers and firefighters if
 1062  included, participating in such separate supplemental plan.
 1063         (e) For a plan created after March 1, 2015, 50 percent of
 1064  the insurance premium tax revenues must be used to fund defined
 1065  benefit plan component benefits, with the remainder used to fund
 1066  defined contribution plan component benefits.
 1067         (f) If a plan offers benefits in excess of the minimum
 1068  benefits, such benefits, excluding supplemental plan benefits in
 1069  effect as of September 30, 2014, may be reduced if the plan
 1070  continues to meet minimum benefits and the minimum standards.
 1071  The amount of insurance premium tax revenues previously used to
 1072  fund benefits in excess of the minimum benefits before the
 1073  reduction, excluding the amount of any additional premium tax
 1074  revenues distributed to a supplemental plan for the 2012
 1075  calendar year, must be used as provided in paragraph (b).
 1076  However, benefits in excess of the minimum benefits may not be
 1077  reduced if a plan does not meet the minimum percentage amount of
 1078  2.75 percent of the average final compensation of a police
 1079  officer or provides an effective benefit that is less than 2.75
 1080  percent as a result of a maximum benefit limitation, as
 1081  described in s. 185.16(2)(b).
 1082         (g) Notwithstanding paragraphs (a)-(f), the use of premium
 1083  tax revenues, including any accumulations of additional premium
 1084  tax revenues which have not been allocated to fund benefits in
 1085  excess of the minimum benefits, may deviate from the provisions
 1086  of this subsection by mutual consent of the members’ collective
 1087  bargaining representative or, if none, by a majority of the
 1088  police officer members of the fund, and by consent of the
 1089  municipality, provided that the plan continues to meet minimum
 1090  benefits and minimum standards; however, a plan that operates
 1091  pursuant to this paragraph and does not meet the minimum
 1092  benefits as of October 1, 2012, may continue to provide the
 1093  benefits that do not meet the minimum benefits at the same level
 1094  as was provided as of October 1, 2012, and all other benefit
 1095  levels must continue to meet the minimum benefits. Such mutually
 1096  agreed deviation must continue until modified or revoked by
 1097  subsequent mutual consent of the members’ collective bargaining
 1098  representative or, if none, by a majority of the police officer
 1099  members of the fund, and the municipality. An existing
 1100  arrangement for the use of premium tax revenues contained within
 1101  a special act plan or a plan within a supplemental plan
 1102  municipality is considered, as of July 1, 2015, to be a
 1103  deviation for which mutual consent has been granted.
 1104         (2) The premium tax provided by this chapter must shall in
 1105  all cases be used in its entirety to provide retirement extra
 1106  benefits to police officers, or to police officers and
 1107  firefighters if both are included. However, local law plans in
 1108  effect on October 1, 1998, must comply with the minimum benefit
 1109  provisions of this chapter only to the extent that additional
 1110  premium tax revenues become available to incrementally fund the
 1111  cost of such compliance as provided in s. 185.16(2). If a plan
 1112  is in compliance with such minimum benefit provisions, as
 1113  subsequent additional tax revenues become available, they shall
 1114  be used to provide extra benefits. Local law plans created by
 1115  special act before May 27, 1939, shall be deemed to comply with
 1116  this chapter. For the purpose of this chapter, the term:
 1117         (a) “Additional premium tax revenues” means revenues
 1118  received by a municipality pursuant to s. 185.10 which exceed
 1119  the amount received for calendar year 1997.
 1120         (b) “Extra benefits” means benefits in addition to or
 1121  greater than those provided to general employees of the
 1122  municipality and in addition to those in existence for police
 1123  officers on March 12, 1999.
 1124         (3) A retirement plan or amendment to a retirement plan may
 1125  not be proposed for adoption unless the proposed plan or
 1126  amendment contains an actuarial estimate of the costs involved.
 1127  Such proposed plan or proposed plan change may not be adopted
 1128  without the approval of the municipality or, where required
 1129  permitted, the Legislature. Copies of the proposed plan or
 1130  proposed plan change and the actuarial impact statement of the
 1131  proposed plan or proposed plan change shall be furnished to the
 1132  division before the last public hearing on the proposal is held
 1133  thereon. Such statement must also indicate whether the proposed
 1134  plan or proposed plan change is in compliance with s. 14, Art. X
 1135  of the State Constitution and those provisions of part VII of
 1136  chapter 112 which are not expressly provided in this chapter.
 1137  Notwithstanding any other provision, only those local law plans
 1138  created by special act of legislation before May 27, 1939, are
 1139  deemed to meet the minimum benefits and minimum standards only
 1140  in this chapter.
 1141         (4) Notwithstanding any other provision, with respect to
 1142  any supplemental plan municipality:
 1143         (a) Section 185.02(6)(a) 185.02(4)(a) does not apply, and a
 1144  local law plan and a supplemental plan may continue to use their
 1145  definition of compensation or salary in existence on March 12,
 1146  1999.
 1147         (b) A local law plan and a supplemental plan must continue
 1148  to be administered by a board or boards of trustees numbered,
 1149  constituted, and selected as the board or boards were numbered,
 1150  constituted, and selected on December 1, 2000.
 1151         (c) The election set forth in paragraph (1)(b) is deemed to
 1152  have been made.
 1153         (5) The retirement plan setting forth the benefits and the
 1154  trust agreement, if any, covering the duties and
 1155  responsibilities of the trustees and the regulations of the
 1156  investment of funds must be in writing and copies made available
 1157  to the participants and to the general public.
 1158         (6) In addition to the defined benefit component of the
 1159  local law plan, each plan sponsor must have a defined
 1160  contribution plan component within the local law plan by October
 1161  1, 2015, for noncollectively bargained service, upon entering
 1162  into a collective bargaining agreement on or after July 1, 2015,
 1163  or upon the creation date of a new participating plan. Depending
 1164  upon the application of subsection (1), a defined contribution
 1165  component may or may not receive any funding.
 1166         (7) Notwithstanding any other provision of this chapter, a
 1167  municipality that has implemented or proposed changes to a local
 1168  law plan based on the municipality’s reliance on an
 1169  interpretation of this chapter by the Department of Management
 1170  Services on or after August 14, 2012, and before March 3, 2015,
 1171  may continue the implemented changes or continue to implement
 1172  proposed changes. Such reliance must be evidenced by a written
 1173  collective bargaining proposal or agreement, or formal
 1174  correspondence between the municipality and the Department of
 1175  Management Services which describes the specific changes to the
 1176  local law plan, with the initial proposal, agreement, or
 1177  correspondence from the municipality dated before March 3, 2015.
 1178  Changes to the local law plan which are otherwise contrary to
 1179  minimum benefits and minimum standards may continue in effect
 1180  until the earlier of October 1, 2018, or the effective date of a
 1181  collective bargaining agreement that is contrary to the changes
 1182  to the local law plan.
 1183         Section 13. The Legislature finds that a proper and
 1184  legitimate state purpose is served when employees and retirees
 1185  of this state and its political subdivisions, and the
 1186  dependents, survivors, and beneficiaries of such employees and
 1187  retirees, are extended the basic protections afforded by
 1188  governmental retirement systems that provide fair and adequate
 1189  benefits and that are managed, administered, and funded in an
 1190  actuarially sound manner as required under s. 14, Article X of
 1191  the State Constitution and part VII of chapter 112, Florida
 1192  Statutes. Therefore, the Legislature determines and declares
 1193  that this act fulfills an important state interest.
 1194         Section 14. This act shall take effect July 1, 2015.