HB 1245 2003
1	A bill to be entitled
2	An act relating to municipal police and firefighter
3	pensions; amending s. 175.351, F.S.; authorizing certain
4	municipalities to provide extra benefits to firefighter
5	pension plans prior to the receipt of additional premium
6	tax revenues; providing a procedure; amending s. 185.35,
7	F.S.; authorizing certain municipalities to provide extra
8	benefits in police officer pension plans under certain
9	circumstances; providing a procedure; providing an
10	effective date.
11
12	Be It Enacted by the Legislature of the State of Florida:
13
14	Section 1. Section 175.351, Florida Statutes, is amended
15	to read:
16	175.351 Municipalities and special fire control districts
17	having their own pension plans for firefighters.--For any
18	municipality, special fire control district, local law
19	municipality, local law special fire control district, or local
20	law plan under this chapter, in order for municipalities and
21	special fire control districts with their own pension plans for
22	firefighters, or for firefighters and police officers, where
23	included, to participate in the distribution of the tax fund
24	established pursuant to s. 175.101, local law plans must meet
25	the minimum benefits and minimum standards set forth in this
26	chapter.
27	(1) PREMIUM TAX INCOME.--If a municipality has a pension
28	plan for firefighters, or a pension plan for firefighters and
29	police officers, where included, which in the opinion of the
30	division meets the minimum benefits and minimum standards set
31	forth in this chapter, the board of trustees of the pension
32	plan, as approved by a majority of firefighters of the
33	municipality, may:
34	(a) Place the income from the premium tax in s. 175.101 in
35	such pension plan for the sole and exclusive use of its
36	firefighters, or for firefighters and police officers, where
37	included, where it shall become an integral part of that pension
38	plan and shall be used to pay extra benefits to the firefighters
39	included in that pension plan; or
40	(b) Place the income from the premium tax in s. 175.101 in
41	a separate supplemental plan to pay extra benefits to
42	firefighters, or to firefighters and police officers where
43	included, participating in such separate supplemental plan.
44
45	The premium tax provided by this chapter shall in all cases be
46	used in its entirety to provide extra benefits to firefighters,
47	or to firefighters and police officers, where included. However,
48	local law plans in effect on October 1, 1998, shall be required
49	to comply with the minimum benefit provisions of this chapter
50	only to the extent that additional premium tax revenues become
51	available to incrementally fund the cost of such compliance as
52	provided in s. 175.162(2)(a). When a plan is in compliance with
53	such minimum benefit provisions, as subsequent additional
54	premium tax revenues become available, they shall be used to
55	provide extra benefits. For the purpose of this chapter,
56	"additional premium tax revenues" means revenues received by a
57	municipality or special fire control district pursuant to s.
58	175.121 that exceed that amount received for calendar year 1997
59	and the term "extra benefits" means benefits in addition to or
60	greater than those provided to general employees of the
61	municipality. Local law plans created by special act before May
62	23, 1939, shall be deemed to comply with this chapter. As a
63	permissive alternative to paragraphs (a) and (b), a
64	municipality, after meeting the minimum benefit provisions of
65	this chapter, with the approval of the certified bargaining
66	agent, where applicable, or a majority of firefighters, or
67	firefighters and police officers, where included in the pension
68	plan, may provide extra benefits to the members prior to receipt
69	of additional premium tax revenues to fund such benefit
70	improvements. The municipality shall advance to the appropriate
71	plan the difference between actuarially determined costs of the
72	extra benefits to be provided and the additional premium tax
73	revenues received at the time of advancement. Thereafter, the
74	municipality shall annually advance to the plan the difference
75	in the actuarially determined cost of the extra benefits which
76	were funded by the initial advance and the available additional
77	premium tax revenues until such time as the growth in the
78	available additional premium tax revenues is sufficient to fund
79	the costs of the extra benefits provided by the initial advance.
80	At such time, all additional premium tax revenues in excess of
81	the costs of the benefit improvements shall be credited against
82	the municipality’s required contributions until the funds
83	credited to the municipality equal the funds advanced by the
84	municipality to the plan with interest. Thereafter, all
85	available additional premium tax revenues shall be used to
86	provide additional benefits. Interest may be assessed against
87	the funds advanced at a rate not to exceed the rate permitted by
88	law, provided such interest is agreed to by the certified
89	bargaining agent, where applicable, or a majority of
90	firefighters or firefighters and police officers, where included
91	in the pension plan. In no event shall the municipality be
92	relieved of its fiduciary responsibility, as determined by the
93	plan actuary, of funding these extra benefits if the additional
94	premium tax revenues are not sufficient to fund the extra
95	benefits.
96	(2) ADOPTION OR REVISION OF A LOCAL LAW PLAN.--No
97	retirement plan or amendment to a retirement plan shall be
98	proposed for adoption unless the proposed plan or amendment
99	contains an actuarial estimate of the costs involved. No such
100	proposed plan or proposed plan change shall be adopted without
101	the approval of the municipality, special fire control district,
102	or, where permitted, the Legislature. Copies of the proposed
103	plan or proposed plan change and the actuarial impact statement
104	of the proposed plan or proposed plan change shall be furnished
105	to the division prior to the last public hearing thereon. Such
106	statement shall also indicate whether the proposed plan or
107	proposed plan change is in compliance with s. 14, Art. X of the
108	State Constitution and those provisions of part VII of chapter
109	112 which are not expressly provided in this chapter.
110	Notwithstanding any other provision, only those local law plans
111	created by special act of legislation prior to May 23, 1939,
112	shall be deemed to meet the minimum benefits and minimum
113	standards only in this chapter.
114	(3) Notwithstanding any other provision, with respect to
115	any supplemental plan municipality:
116	(a) Section 175.032(3)(a) shall not apply, and a local law
117	plan and a supplemental plan may continue to use their
118	definition of compensation or salary in existence on the
119	effective date of this act.
120	(b) Section 175.061(1)(b) shall not apply, and a local law
121	plan and a supplemental plan shall continue to be administered
122	by a board or boards of trustees numbered, constituted, and
123	selected as the board or boards were numbered, constituted, and
124	selected on December 1, 2000.
125	(c) The election set forth in paragraph (1)(b) shall be
126	deemed to have been made.
127	(4) The retirement plan setting forth the benefits and the
128	trust agreement, if any, covering the duties and
129	responsibilities of the trustees and the regulations of the
130	investment of funds must be in writing, and copies thereof must
131	be made available to the participants and to the general public.
132	Section 2. Section 185.35, Florida Statutes, is amended to
133	read:
134	185.35 Municipalities having their own pension plans for
135	police officers.--For any municipality, chapter plan, local law
136	municipality, or local law plan under this chapter, in order for
137	municipalities with their own pension plans for police officers,
138	or for police officers and firefighters where included, to
139	participate in the distribution of the tax fund established
140	pursuant to s. 185.08, local law plans must meet the minimum
141	benefits and minimum standards set forth in this chapter:
142	(1) PREMIUM TAX INCOME.--If a municipality has a pension
143	plan for police officers, or for police officers and
144	firefighters where included, which, in the opinion of the
145	division, meets the minimum benefits and minimum standards set
146	forth in this chapter, the board of trustees of the pension
147	plan, as approved by a majority of police officers of the
148	municipality, may:
149	(a) Place the income from the premium tax in s. 185.08 in
150	such pension plan for the sole and exclusive use of its police
151	officers, or its police officers and firefighters where
152	included, where it shall become an integral part of that pension
153	plan and shall be used to pay extra benefits to the police
154	officers included in that pension plan; or
155	(b) May place the income from the premium tax in s. 185.08
156	in a separate supplemental plan to pay extra benefits to the
157	police officers, or police officers and firefighters where
158	included, participating in such separate supplemental plan.
159
160	The premium tax provided by this chapter shall in all cases be
161	used in its entirety to provide extra benefits to police
162	officers, or to police officers and firefighters, where
163	included. However, local law plans in effect on October 1, 1998,
164	shall be required to comply with the minimum benefit provisions
165	of this chapter only to the extent that additional premium tax
166	revenues become available to incrementally fund the cost of such
167	compliance as provided in s. 185.16(2). When a plan is in
168	compliance with such minimum benefit provisions, as subsequent
169	additional tax revenues become available, they shall be used to
170	provide extra benefits. For the purpose of this chapter,
171	"additional premium tax revenues" means revenues received by a
172	municipality pursuant to s. 185.10 that exceed the amount
173	received for calendar year 1997 and the term "extra benefits"
174	means benefits in addition to or greater than those provided to
175	general employees of the municipality. Local law plans created
176	by special act before May 23, 1939, shall be deemed to comply
177	with this chapter. As a permissive alternative to paragraphs (a)
178	and (b), a municipality, after meeting the minimum benefit
179	provisions of this chapter, with the approval of the certified
180	bargaining agent, where applicable, or a majority of police
181	officers, or police officers and firefighters, where included in
182	the pension plan, may provide extra benefits to the members
183	prior to receipt of additional premium tax revenues to fund such
184	benefit improvements. The municipality shall advance to the
185	appropriate plan the difference between actuarially determined
186	costs of the extra benefits to be provided and the additional
187	premium tax revenues received at the time of advancement.
188	Thereafter, the municipality shall annually advance to the plan
189	the difference in the actuarially determined cost of the extra
190	benefits which were funded by the initial advance and the
191	available additional premium tax revenues until such time as the
192	growth in the available additional premium tax revenues is
193	sufficient to fund the costs of the extra benefits provided by
194	the initial advance. At such time, all additional premium tax
195	revenues in excess of the costs of the benefit improvements
196	shall be credited against the municipality’s required
197	contributions until the funds credited to the municipality equal
198	the funds advanced by the municipality to the plan with
199	interest. Thereafter, all available additional premium tax
200	revenues shall be used to provide additional benefits. Interest
201	may be assessed against the funds advanced at a rate not to
202	exceed the rate permitted by law, provided such interest is
203	agreed to by the certified bargaining agent, where applicable,
204	or a majority of police officers or police officers and
205	firefighters, where included in the pension plan. In no event
206	shall the municipality be relieved of its fiduciary
207	responsibility, as determined by the plan actuary, of funding
208	these extra benefits if the additional premium tax revenues are
209	not sufficient to fund the extra benefits.
210	(2) ADOPTION OR REVISION OF A LOCAL LAW PLAN.--No
211	retirement plan or amendment to a retirement plan shall be
212	proposed for adoption unless the proposed plan or amendment
213	contains an actuarial estimate of the costs involved. No such
214	proposed plan or proposed plan change shall be adopted without
215	the approval of the municipality or, where permitted, the
216	Legislature. Copies of the proposed plan or proposed plan change
217	and the actuarial impact statement of the proposed plan or
218	proposed plan change shall be furnished to the division prior to
219	the last public hearing thereon. Such statement shall also
220	indicate whether the proposed plan or proposed plan change is in
221	compliance with s. 14, Art. X of the State Constitution and
222	those provisions of part VII of chapter 112 which are not
223	expressly provided in this chapter. Notwithstanding any other
224	provision, only those local law plans created by special act of
225	legislation prior to May 23, 1939, shall be deemed to meet the
226	minimum benefits and minimum standards only in this chapter.
227	(3) Notwithstanding any other provision, with respect to
228	any supplemental plan municipality:
229	(a) Section 185.02(4)(a) shall not apply, and a local law
230	plan and a supplemental plan may continue to use their
231	definition of compensation or salary in existence on the
232	effective date of this act.
233	(b) Section 185.05(1)(b) shall not apply, and a local law
234	plan and a supplemental plan shall continue to be administered
235	by a board or boards of trustees numbered, constituted, and
236	selected as the board or boards were numbered, constituted, and
237	selected on December 1, 2000.
238	(c) The election set forth in paragraph (1)(b) shall be
239	deemed to have been made.
240	(4) The retirement plan setting forth the benefits and the
241	trust agreement, if any, covering the duties and
242	responsibilities of the trustees and the regulations of the
243	investment of funds must be in writing and copies made available
244	to the participants and to the general public.
245	Section 3. This act shall take effect upon becoming a law.