| 1 | A bill to be entitled |
| 2 | An act relating to the City of Tampa, Hillsborough County; |
| 3 | amending chapter 23559, Laws of Florida, 1945, as amended; |
| 4 | revising the definition of "salaries or wages" to provide |
| 5 | for an employer pickup so that the employees in Division A |
| 6 | may make pension contributions on a pre-tax basis; |
| 7 | revising longevity retirement provisions to provide for a |
| 8 | multiplier of 1.15 percent for employees in Division B; |
| 9 | providing an effective date. |
| 10 |
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| 11 | Be It Enacted by the Legislature of the State of Florida: |
| 12 |
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| 13 | Section 1. Subsection (A) of section 4 of chapter 23559, |
| 14 | Laws of Florida, 1945, as last amended by chapter 2000-490, Laws |
| 15 | of Florida, is amended to read: |
| 16 | Section 4. Definitions. |
| 17 | (A) Salaries or Wages. Salaries or Wages for the purpose |
| 18 | of this act shall be the base amounts earned by the Employee, |
| 19 | plus regular longevity bonuses, overtime, and shift premiums, |
| 20 | but exclusive of other premiums, allowances, or special payments |
| 21 | or any casual nonrecurring or unpredictable bonuses. In addition |
| 22 | to other applicable limitations set forth in the Plan, and |
| 23 | notwithstanding any other provision of the Plan to the contrary, |
| 24 | for Plan Years beginning on or after January 1, 1996, the annual |
| 25 | Salaries or Wages of each Employee taken into account under the |
| 26 | Plan shall not exceed the annual compensation limit provided for |
| 27 | in the Omnibus Budget Reconciliation Act of 1993 (the "OBRA 1993 |
| 28 | Annual Compensation Limit"). The OBRA 1993 Annual Compensation |
| 29 | Limit is $150,000, as adjusted by the Commissioner of the |
| 30 | Internal Revenue Service for increases in the cost-of-living in |
| 31 | accordance with Section 401(a)(17)(B) of the Internal Revenue |
| 32 | Code of 1986, as amended (the "Code"). The cost-of-living |
| 33 | adjustment in effect for a calendar year applies to any period, |
| 34 | not exceeding 12 months, over which Salaries or Wages are |
| 35 | determined (determination period) beginning in such calendar |
| 36 | year. If a determination period consists of fewer than 12 |
| 37 | months, the OBRA 1993 Annual Compensation Limit will be |
| 38 | multiplied by a fraction, the numerator of which is the number |
| 39 | of months in the determination period, and the denominator of |
| 40 | which is 12. For Plan Years beginning on or after January 1, |
| 41 | 1996, any reference in this Plan to the limitation under Section |
| 42 | 401(a)(17) of the Code shall mean the OBRA 1993 Annual |
| 43 | Compensation Limit set forth in this provision. The limitation |
| 44 | on Salaries or Wages for an "eligible Employee" shall not be |
| 45 | less than the amount which was allowed to be taken into account |
| 46 | hereunder as in effect on July 1, 1993. "Eligible Employee" is |
| 47 | an individual who was a participant in the Plan before the first |
| 48 | Plan Year beginning after December 31, 1995. Commencing for |
| 49 | earnings paid the first pay date after October 1, 2005, all |
| 50 | mandatory Employee Contributions to the Fund shall be picked up |
| 51 | and paid by the City. Such contributions, although designated as |
| 52 | Employee Contributions, shall be paid by the City in lieu of |
| 53 | contributions by the Employee. The contributions so assumed |
| 54 | shall be treated as tax-deferred Employer "pickup" contributions |
| 55 | pursuant to Section 414(h) of the Internal Revenue Code. Members |
| 56 | shall not have the option of receiving the contributed amounts |
| 57 | directly instead of having such contributions paid by the City |
| 58 | to the Fund. |
| 59 | Section 2. Section 8 of chapter 23559, Laws of Florida, |
| 60 | 1945, as last amended by chapter 81-497, Laws of Florida, is |
| 61 | amended to read: |
| 62 | Section 8. Longevity Retirement Benefits. |
| 63 | (A) Division A Employees: An Employee in Division A whose |
| 64 | employment terminates on or after his or her Normal Retirement |
| 65 | Date shall receive a monthly pension benefit equal to 2 percent |
| 66 | of his or her Average Monthly Salary multiplied by his or her |
| 67 | Service, plus an additional .5 percent of his or her Average |
| 68 | Monthly Salary for each additional year of Service for |
| 69 | employment after 15 years for years served on or after January |
| 70 | 1, 1975, until a maximum of 30 years of Service is reached. |
| 71 | (B) Division B Employees Employee: |
| 72 | 1. An Employee in Division B whose employment terminates |
| 73 | on or after his or her Normal Retirement Date shall receive a |
| 74 | monthly pension benefit equal to 1.15 1.1 percent of his or her |
| 75 | Average Monthly Salary multiplied by his or her Service. |
| 76 | 2. An Employee in Division B who was previously a member |
| 77 | of Division A whose employment terminates on or after his or her |
| 78 | Normal Retirement Date shall receive a pension calculated as in |
| 79 | subsection (B) 1. of this section subject to the following |
| 80 | minimum benefits: said Employee shall not receive less than his |
| 81 | or her Accrued Pension in Division A (calculated as in (A) 1. |
| 82 | above), plus 1.15 1.1 percent of his or her Average Monthly |
| 83 | Salary multiplied by his or her Service after his or her Date of |
| 84 | Election. For the purposes of determining an Employee's Accrued |
| 85 | Pension in Division A under this subsection, his or her Average |
| 86 | Monthly Salary shall be calculated as of the Date of Election |
| 87 | and his or her Service shall be Service prior to the Date of |
| 88 | Election. |
| 89 | Section 3. This act shall take effect October 1, 2005. |