HB 1245 2003
1	CHAMBER ACTION
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6	The Committee on Local Government & Veterans' Affairs recommends
7	the following:
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9	Committee Substitute
10	Remove the entire bill and insert:
11	A bill to be entitled
12	An act relating to municipal police and firefighter
13	pensions; amending s. 175.351, F.S.; authorizing certain
14	municipalities to provide extra benefits to firefighter
15	pension plans prior to the receipt of additional premium
16	tax revenues; providing a procedure; amending s. 185.35,
17	F.S.; authorizing certain municipalities to provide extra
18	benefits in police officer pension plans under certain
19	circumstances; providing a procedure; providing an
20	effective date.
21
22	Be It Enacted by the Legislature of the State of Florida:
23
24	Section 1. Section 175.351, Florida Statutes, is amended
25	to read:
26	175.351 Municipalities and special fire control districts
27	having their own pension plans for firefighters.--For any
28	municipality, special fire control district, local law
29	municipality, local law special fire control district, or local
30	law plan under this chapter, in order for municipalities and
31	special fire control districts with their own pension plans for
32	firefighters, or for firefighters and police officers, where
33	included, to participate in the distribution of the tax fund
34	established pursuant to s. 175.101, local law plans must meet
35	the minimum benefits and minimum standards set forth in this
36	chapter.
37	(1) PREMIUM TAX INCOME.--If a municipality has a pension
38	plan for firefighters, or a pension plan for firefighters and
39	police officers, where included, which in the opinion of the
40	division meets the minimum benefits and minimum standards set
41	forth in this chapter, the board of trustees of the pension
42	plan, as approved by a majority of firefighters of the
43	municipality, may:
44	(a) Place the income from the premium tax in s. 175.101 in
45	such pension plan for the sole and exclusive use of its
46	firefighters, or for firefighters and police officers, where
47	included, where it shall become an integral part of that pension
48	plan and shall be used to pay extra benefits to the firefighters
49	included in that pension plan; or
50	(b) Place the income from the premium tax in s. 175.101 in
51	a separate supplemental plan to pay extra benefits to
52	firefighters, or to firefighters and police officers where
53	included, participating in such separate supplemental plan.
54
55	The premium tax provided by this chapter shall in all cases be
56	used in its entirety to provide extra benefits to firefighters,
57	or to firefighters and police officers, where included. However,
58	local law plans in effect on October 1, 1998, shall be required
59	to comply with the minimum benefit provisions of this chapter
60	only to the extent that additional premium tax revenues become
61	available to incrementally fund the cost of such compliance as
62	provided in s. 175.162(2)(a). When a plan is in compliance with
63	such minimum benefit provisions, as subsequent additional
64	premium tax revenues become available, they shall be used to
65	provide extra benefits. For the purpose of this chapter,
66	"additional premium tax revenues" means revenues received by a
67	municipality or special fire control district pursuant to s.
68	175.121 that exceed that amount received for calendar year 1997
69	and the term "extra benefits" means benefits in addition to or
70	greater than those provided to general employees of the
71	municipality. Local law plans created by special act before May
72	23, 1939, shall be deemed to comply with this chapter. As a
73	permissive alternative to paragraph (a), a municipality, after
74	meeting the minimum benefit provisions of this chapter, with the
75	approval of the certified bargaining agent, where applicable, or
76	a majority of firefighters, or firefighters and police officers,
77	where included in the pension plan, may provide extra benefits
78	to the members prior to receipt of additional premium tax
79	revenues to fund such benefit improvements. The municipality
80	shall advance to the appropriate plan the difference between
81	actuarially determined costs of the extra benefits to be
82	provided and the additional premium tax revenues received at the
83	time of advancement. Thereafter, the municipality shall annually
84	advance to the plan the difference in the actuarially determined
85	cost of the extra benefits which were funded by the initial
86	advance and the available additional premium tax revenues until
87	such time as the growth in the available additional premium tax
88	revenues is sufficient to fund the costs of the extra benefits
89	provided by the initial advance. At such time, all additional
90	premium tax revenues in excess of the costs of the benefit
91	improvements shall be credited against the municipality’s
92	required contributions until the funds credited to the
93	municipality equal the funds advanced by the municipality to the
94	plan with interest. Thereafter, all available additional premium
95	tax revenues shall be used to provide additional benefits.
96	Interest may be assessed against the funds advanced at a rate
97	not to exceed the rate permitted by law, provided such interest
98	is agreed to by the certified bargaining agent, where
99	applicable, or a majority of firefighters or firefighters and
100	police officers, where included in the pension plan. In no event
101	shall the municipality be relieved of its fiduciary
102	responsibility, as determined by the plan actuary, of funding
103	these extra benefits if the additional premium tax revenues are
104	not sufficient to fund the extra benefits. Prior to an agreement
105	between the municipality and the firefighters, or firefighters
106	and police officers where included, being implemented, the plan
107	administrator shall submit such agreement and the actuarial
108	impact statement prepared by the plan actuary to the Division of
109	Retirement for its determination and approval that said
110	agreement is in compliance with the requirements of part VII of
111	chapter 112.
112	(2) ADOPTION OR REVISION OF A LOCAL LAW PLAN.--No
113	retirement plan or amendment to a retirement plan shall be
114	proposed for adoption unless the proposed plan or amendment
115	contains an actuarial estimate of the costs involved. No such
116	proposed plan or proposed plan change shall be adopted without
117	the approval of the municipality, special fire control district,
118	or, where permitted, the Legislature. Copies of the proposed
119	plan or proposed plan change and the actuarial impact statement
120	of the proposed plan or proposed plan change shall be furnished
121	to the division prior to the last public hearing thereon. Such
122	statement shall also indicate whether the proposed plan or
123	proposed plan change is in compliance with s. 14, Art. X of the
124	State Constitution and those provisions of part VII of chapter
125	112 which are not expressly provided in this chapter.
126	Notwithstanding any other provision, only those local law plans
127	created by special act of legislation prior to May 23, 1939,
128	shall be deemed to meet the minimum benefits and minimum
129	standards only in this chapter.
130	(3) Notwithstanding any other provision, with respect to
131	any supplemental plan municipality:
132	(a) Section 175.032(3)(a) shall not apply, and a local law
133	plan and a supplemental plan may continue to use their
134	definition of compensation or salary in existence on the
135	effective date of this act.
136	(b) Section 175.061(1)(b) shall not apply, and a local law
137	plan and a supplemental plan shall continue to be administered
138	by a board or boards of trustees numbered, constituted, and
139	selected as the board or boards were numbered, constituted, and
140	selected on December 1, 2000.
141	(c) The election set forth in paragraph (1)(b) shall be
142	deemed to have been made.
143	(4) The retirement plan setting forth the benefits and the
144	trust agreement, if any, covering the duties and
145	responsibilities of the trustees and the regulations of the
146	investment of funds must be in writing, and copies thereof must
147	be made available to the participants and to the general public.
148	Section 2. Section 185.35, Florida Statutes, is amended to
149	read:
150	185.35 Municipalities having their own pension plans for
151	police officers.--For any municipality, chapter plan, local law
152	municipality, or local law plan under this chapter, in order for
153	municipalities with their own pension plans for police officers,
154	or for police officers and firefighters where included, to
155	participate in the distribution of the tax fund established
156	pursuant to s. 185.08, local law plans must meet the minimum
157	benefits and minimum standards set forth in this chapter:
158	(1) PREMIUM TAX INCOME.--If a municipality has a pension
159	plan for police officers, or for police officers and
160	firefighters where included, which, in the opinion of the
161	division, meets the minimum benefits and minimum standards set
162	forth in this chapter, the board of trustees of the pension
163	plan, as approved by a majority of police officers of the
164	municipality, may:
165	(a) Place the income from the premium tax in s. 185.08 in
166	such pension plan for the sole and exclusive use of its police
167	officers, or its police officers and firefighters where
168	included, where it shall become an integral part of that pension
169	plan and shall be used to pay extra benefits to the police
170	officers included in that pension plan; or
171	(b) May place the income from the premium tax in s. 185.08
172	in a separate supplemental plan to pay extra benefits to the
173	police officers, or police officers and firefighters where
174	included, participating in such separate supplemental plan.
175
176	The premium tax provided by this chapter shall in all cases be
177	used in its entirety to provide extra benefits to police
178	officers, or to police officers and firefighters, where
179	included. However, local law plans in effect on October 1, 1998,
180	shall be required to comply with the minimum benefit provisions
181	of this chapter only to the extent that additional premium tax
182	revenues become available to incrementally fund the cost of such
183	compliance as provided in s. 185.16(2). When a plan is in
184	compliance with such minimum benefit provisions, as subsequent
185	additional tax revenues become available, they shall be used to
186	provide extra benefits. For the purpose of this chapter,
187	"additional premium tax revenues" means revenues received by a
188	municipality pursuant to s. 185.10 that exceed the amount
189	received for calendar year 1997 and the term "extra benefits"
190	means benefits in addition to or greater than those provided to
191	general employees of the municipality. Local law plans created
192	by special act before May 23, 1939, shall be deemed to comply
193	with this chapter. As a permissive alternative to paragraph (a),
194	a municipality, after meeting the minimum benefit provisions of
195	this chapter, with the approval of the certified bargaining
196	agent, where applicable, or a majority of police officers, or
197	police officers and firefighters, where included in the pension
198	plan, may provide extra benefits to the members prior to receipt
199	of additional premium tax revenues to fund such benefit
200	improvements. The municipality shall advance to the appropriate
201	plan the difference between actuarially determined costs of the
202	extra benefits to be provided and the additional premium tax
203	revenues received at the time of advancement. Thereafter, the
204	municipality shall annually advance to the plan the difference
205	in the actuarially determined cost of the extra benefits which
206	were funded by the initial advance and the available additional
207	premium tax revenues until such time as the growth in the
208	available additional premium tax revenues is sufficient to fund
209	the costs of the extra benefits provided by the initial advance.
210	At such time, all additional premium tax revenues in excess of
211	the costs of the benefit improvements shall be credited against
212	the municipality’s required contributions until the funds
213	credited to the municipality equal the funds advanced by the
214	municipality to the plan with interest. Thereafter, all
215	available additional premium tax revenues shall be used to
216	provide additional benefits. Interest may be assessed against
217	the funds advanced at a rate not to exceed the rate permitted by
218	law, provided such interest is agreed to by the certified
219	bargaining agent, where applicable, or a majority of police
220	officers or police officers and firefighters, where included in
221	the pension plan. In no event shall the municipality be relieved
222	of its fiduciary responsibility, as determined by the plan
223	actuary, of funding these extra benefits if the additional
224	premium tax revenues are not sufficient to fund the extra
225	benefits. Prior to an agreement between the municipality and the
226	police officers, or police officers and firefighters where
227	included, being implemented, the plan administrator shall submit
228	such agreement and the actuarial impact statement prepared by
229	the plan actuary to the Division of Retirement for its
230	determination and approval that said agreement is in compliance
231	with the requirements of part VII of chapter 112.
232	(2) ADOPTION OR REVISION OF A LOCAL LAW PLAN.--No
233	retirement plan or amendment to a retirement plan shall be
234	proposed for adoption unless the proposed plan or amendment
235	contains an actuarial estimate of the costs involved. No such
236	proposed plan or proposed plan change shall be adopted without
237	the approval of the municipality or, where permitted, the
238	Legislature. Copies of the proposed plan or proposed plan change
239	and the actuarial impact statement of the proposed plan or
240	proposed plan change shall be furnished to the division prior to
241	the last public hearing thereon. Such statement shall also
242	indicate whether the proposed plan or proposed plan change is in
243	compliance with s. 14, Art. X of the State Constitution and
244	those provisions of part VII of chapter 112 which are not
245	expressly provided in this chapter. Notwithstanding any other
246	provision, only those local law plans created by special act of
247	legislation prior to May 23, 1939, shall be deemed to meet the
248	minimum benefits and minimum standards only in this chapter.
249	(3) Notwithstanding any other provision, with respect to
250	any supplemental plan municipality:
251	(a) Section 185.02(4)(a) shall not apply, and a local law
252	plan and a supplemental plan may continue to use their
253	definition of compensation or salary in existence on the
254	effective date of this act.
255	(b) Section 185.05(1)(b) shall not apply, and a local law
256	plan and a supplemental plan shall continue to be administered
257	by a board or boards of trustees numbered, constituted, and
258	selected as the board or boards were numbered, constituted, and
259	selected on December 1, 2000.
260	(c) The election set forth in paragraph (1)(b) shall be
261	deemed to have been made.
262	(4) The retirement plan setting forth the benefits and the
263	trust agreement, if any, covering the duties and
264	responsibilities of the trustees and the regulations of the
265	investment of funds must be in writing and copies made available
266	to the participants and to the general public.
267	Section 3. This act shall take effect upon becoming a law.
268