| 1 | A bill to be entitled |
| 2 | An act relating to firefighter and municipal police |
| 3 | pensions; amending s. 175.032, F.S.; revising the |
| 4 | definition of "firefighter"; amending s. 175.061, F.S.; |
| 5 | revising terms of service for the board of trustees of the |
| 6 | firefighters' pension trust fund; amending s. 175.071, |
| 7 | F.S.; requiring the board of trustees to perform its |
| 8 | powers subject to certain fiduciary standards and ethics |
| 9 | provisions; revising the investments in which the board of |
| 10 | trustees may invest and reinvest the assets of the |
| 11 | firefighters' pension trust fund; authorizing two |
| 12 | individuals designated by the board to sign drafts issued |
| 13 | upon the firefighters' pension trust fund; authorizing the |
| 14 | board to establish the maximum age for entrance into the |
| 15 | fund; amending s. 185.05, F.S.; revising terms of service |
| 16 | for the board of trustees of the municipal police |
| 17 | officers' retirement trust fund; amending s. 185.06, F.S.; |
| 18 | requiring the board of trustees to perform its powers |
| 19 | subject to certain fiduciary standards and ethics |
| 20 | provisions; revising the investments in which the board of |
| 21 | trustees may invest and reinvest the assets of the |
| 22 | retirement trust fund; authorizing two individuals |
| 23 | designated by the board to sign drafts issued upon the |
| 24 | municipal police officers' retirement trust fund; |
| 25 | authorizing the board to establish the maximum age for |
| 26 | entrance into the fund; providing for severability; |
| 27 | providing an effective date. |
| 28 |
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| 29 | Be It Enacted by the Legislature of the State of Florida: |
| 30 |
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| 31 | Section 1. Paragraph (a) of subsection (8) of section |
| 32 | 175.032, Florida Statutes, is amended to read: |
| 33 | 175.032 Definitions.--For any municipality, special fire |
| 34 | control district, chapter plan, local law municipality, local |
| 35 | law special fire control district, or local law plan under this |
| 36 | chapter, the following words and phrases have the following |
| 37 | meanings: |
| 38 | (8)(a) "Firefighter" means any person employed solely by a |
| 39 | constituted fire department of any municipality or special fire |
| 40 | control district who is certified as a firefighter as a |
| 41 | condition of employment in accordance with the provisions of s. |
| 42 | 633.35 and whose duty it is to extinguish fires, to protect |
| 43 | life, or to protect property. "Firefighter" includes all |
| 44 | certified supervisory and command personnel whose duties |
| 45 | include, in whole or in part, the supervision, training, |
| 46 | guidance, and management responsibilities of full-time |
| 47 | firefighters, part-time firefighters, or auxiliary firefighters, |
| 48 | but does not include part-time firefighters or auxiliary |
| 49 | firefighters. However, for purposes of this chapter only, |
| 50 | "firefighter" also includes public safety officers who are |
| 51 | responsible for performing both police and fire services, who |
| 52 | are certified as police officers or firefighters, and who are |
| 53 | certified by their employers to the Chief Financial Officer as |
| 54 | participating in this chapter prior to October 1, 1979. |
| 55 | Effective October 1, 1979, public safety officers who have not |
| 56 | been certified as participating in this chapter shall be |
| 57 | considered police officers for retirement purposes and shall be |
| 58 | eligible to participate in chapter 185. Any plan may provide |
| 59 | that the fire chief shall have an option to participate, or not, |
| 60 | in that plan. |
| 61 | Section 2. Paragraph (a) of subsection (1) of section |
| 62 | 175.061, Florida Statutes, is amended to read: |
| 63 | 175.061 Board of trustees; members; terms of office; |
| 64 | meetings; legal entity; costs; attorney's fees.--For any |
| 65 | municipality, special fire control district, chapter plan, local |
| 66 | law municipality, local law special fire control district, or |
| 67 | local law plan under this chapter: |
| 68 | (1) In each municipality and in each special fire control |
| 69 | district there is hereby created a board of trustees of the |
| 70 | firefighters' pension trust fund, which shall be solely |
| 71 | responsible for administering the trust fund. Effective October |
| 72 | 1, 1986, and thereafter: |
| 73 | (a) The membership of the board of trustees for a chapter |
| 74 | plan shall consist of five members, two of whom, unless |
| 75 | otherwise prohibited by law, shall be legal residents of the |
| 76 | municipality or special fire control district, who shall be |
| 77 | appointed by the governing body of the municipality or special |
| 78 | fire control district, and two of whom shall be full-time |
| 79 | firefighters as defined in s. 175.032 who shall be elected by a |
| 80 | majority of the active firefighters who are members of such |
| 81 | plan. With respect to any chapter plan or local law plan that, |
| 82 | on January 1, 1997, allowed retired firefighters to vote in such |
| 83 | elections, retirees may continue to vote in such elections. The |
| 84 | fifth member shall be chosen by a majority of the previous four |
| 85 | members as provided for herein, and such person's name shall be |
| 86 | submitted to the governing body of the municipality or special |
| 87 | fire control district. Upon receipt of the fifth person's name, |
| 88 | the governing body of the municipality or special fire control |
| 89 | district shall, as a ministerial duty, appoint such person to |
| 90 | the board of trustees as its fifth member. The fifth member |
| 91 | shall have the same rights as each of the other four members |
| 92 | appointed or elected as herein provided, shall serve as trustee |
| 93 | for a period of 4 2 years, and may succeed himself or herself in |
| 94 | office. Each resident member shall serve as trustee for a period |
| 95 | of 4 2 years, unless sooner replaced by the governing body at |
| 96 | whose pleasure he or she shall serve, and may succeed himself or |
| 97 | herself as a trustee. Each firefighter member shall serve as |
| 98 | trustee for a period of 4 2 years, unless he or she sooner |
| 99 | leaves the employment of the municipality or special fire |
| 100 | control district as a firefighter, whereupon a successor shall |
| 101 | be chosen in the same manner as an original appointment. Each |
| 102 | firefighter may succeed himself or herself in office. |
| 103 | Section 3. Subsection (1) of section 175.071, Florida |
| 104 | Statutes, is amended to read: |
| 105 | 175.071 General powers and duties of board of |
| 106 | trustees.--For any municipality, special fire control district, |
| 107 | chapter plan, local law municipality, local law special fire |
| 108 | control district, or local law plan under this chapter: |
| 109 | (1) The board of trustees, subject to the fiduciary |
| 110 | standards in ss. 112.661 and 518.11 and the Code of Ethics in |
| 111 | ss. 112.311?112.3187, may: |
| 112 | (a) Invest and reinvest the assets of the firefighters' |
| 113 | pension trust fund in annuity and life insurance contracts of |
| 114 | life insurance companies in amounts sufficient to provide, in |
| 115 | whole or in part, the benefits to which all of the participants |
| 116 | in the firefighters' pension trust fund shall be entitled under |
| 117 | the provisions of this chapter and pay the initial and |
| 118 | subsequent premiums thereon. |
| 119 | (b) Invest and reinvest the assets of the firefighters' |
| 120 | pension trust fund in any lawful investment as provided in the |
| 121 | applicable provisions of s. 215.47(1)-(8), (10), and (16), |
| 122 | provided the investment is permitted in the written investment |
| 123 | policy adopted by the board as provided in part VII of chapter |
| 124 | 112.: |
| 125 | 1. Time or savings accounts of a national bank, a state |
| 126 | bank insured by the Bank Insurance Fund, or a savings, building, |
| 127 | and loan association insured by the Savings Association |
| 128 | Insurance Fund which is administered by the Federal Deposit |
| 129 | Insurance Corporation or a state or federal chartered credit |
| 130 | union whose share accounts are insured by the National Credit |
| 131 | Union Share Insurance Fund. |
| 132 | 2. Obligations of the United States or obligations |
| 133 | guaranteed as to principal and interest by the government of the |
| 134 | United States. |
| 135 | 3. Bonds issued by the State of Israel. |
| 136 | 4. Bonds, stocks, or other evidences of indebtedness |
| 137 | issued or guaranteed by a corporation organized under the laws |
| 138 | of the United States, any state or organized territory of the |
| 139 | United States, or the District of Columbia, provided: |
| 140 | a. The corporation is listed on any one or more of the |
| 141 | recognized national stock exchanges or on the National Market |
| 142 | System of the NASDAQ Stock Market and, in the case of bonds |
| 143 | only, holds a rating in one of the three highest classifications |
| 144 | by a major rating service; and |
| 145 | b. The board of trustees shall not invest more than 5 |
| 146 | percent of its assets in the common stock or capital stock of |
| 147 | any one issuing company, nor shall the aggregate investment in |
| 148 | any one issuing company exceed 5 percent of the outstanding |
| 149 | capital stock of that company or the aggregate of its |
| 150 | investments under this subparagraph at cost exceed 50 percent of |
| 151 | the assets of the fund. |
| 152 |
|
| 153 | This paragraph shall apply to all boards of trustees and |
| 154 | participants. However, in the event that a municipality or |
| 155 | special fire control district has a duly enacted pension plan |
| 156 | pursuant to, and in compliance with, s. 175.351, and the |
| 157 | trustees thereof desire to vary the investment procedures |
| 158 | herein, the trustees of such plan shall request a variance of |
| 159 | the investment procedures as outlined herein only through a |
| 160 | municipal ordinance, special act of the Legislature, or |
| 161 | resolution by the governing body of the special fire control |
| 162 | district; where a special act, or a municipality by ordinance |
| 163 | adopted prior to July 1, 1998, permits a greater than 50-percent |
| 164 | equity investment, such municipality shall not be required to |
| 165 | comply with the aggregate equity investment provisions of this |
| 166 | paragraph. Notwithstanding any other provision of law to the |
| 167 | contrary, nothing in this section may be construed to take away |
| 168 | any preexisting legal authority to make equity investments that |
| 169 | exceed the requirements of this paragraph. The board of trustees |
| 170 | may invest up to 10 percent of plan assets in foreign |
| 171 | securities. |
| 172 | (c) Issue drafts upon the firefighters' pension trust fund |
| 173 | pursuant to this act and rules and regulations prescribed by the |
| 174 | board of trustees. All such drafts shall be consecutively |
| 175 | numbered, be signed by the chair and secretary or two |
| 176 | individuals designated by the board, and state upon their faces |
| 177 | the purpose for which the drafts are drawn. The treasurer or |
| 178 | depository of each municipality or special fire control district |
| 179 | shall retain such drafts when paid, as permanent vouchers for |
| 180 | disbursements made, and no money shall be otherwise drawn from |
| 181 | the fund. |
| 182 | (d) Convert into cash any securities of the fund. |
| 183 | (e) Keep a complete record of all receipts and |
| 184 | disbursements and of the board's acts and proceedings. |
| 185 | (f) Establish the maximum age for entrance into the fund |
| 186 | within the provisions of s. 112.044. In the case of conflict |
| 187 | with any provision of law, this paragraph shall control in all |
| 188 | matters relating to administration of firefighters' pension |
| 189 | trust funds. |
| 190 | Section 4. Paragraph (a) of subsection (1) of section |
| 191 | 185.05, Florida Statutes, is amended to read: |
| 192 | 185.05 Board of trustees; members; terms of office; |
| 193 | meetings; legal entity; costs; attorney's fees.--For any |
| 194 | municipality, chapter plan, local law municipality, or local law |
| 195 | plan under this chapter: |
| 196 | (1) In each municipality described in s. 185.03 there is |
| 197 | hereby created a board of trustees of the municipal police |
| 198 | officers' retirement trust fund, which shall be solely |
| 199 | responsible for administering the trust fund. Effective October |
| 200 | 1, 1986, and thereafter: |
| 201 | (a) The membership of the board of trustees for chapter |
| 202 | plans shall consist of five members, two of whom, unless |
| 203 | otherwise prohibited by law, shall be legal residents of the |
| 204 | municipality, who shall be appointed by the legislative body of |
| 205 | the municipality, and two of whom shall be police officers as |
| 206 | defined in s. 185.02 who shall be elected by a majority of the |
| 207 | active police officers who are members of such plan. With |
| 208 | respect to any chapter plan or local law plan that, on January |
| 209 | 1, 1997, allowed retired police officers to vote in such |
| 210 | elections, retirees may continue to vote in such elections. The |
| 211 | fifth member shall be chosen by a majority of the previous four |
| 212 | members, and such person's name shall be submitted to the |
| 213 | legislative body of the municipality. Upon receipt of the fifth |
| 214 | person's name, the legislative body of the municipality shall, |
| 215 | as a ministerial duty, appoint such person to the board of |
| 216 | trustees as its fifth member. The fifth member shall have the |
| 217 | same rights as each of the other four members appointed or |
| 218 | elected as herein provided, shall serve as trustee for a period |
| 219 | of 4 2 years, and may succeed himself or herself in office. Each |
| 220 | resident member shall serve as trustee for a period of 4 2 |
| 221 | years, unless sooner replaced by the legislative body at whose |
| 222 | pleasure the member shall serve, and may succeed himself or |
| 223 | herself as a trustee. Each police officer member shall serve as |
| 224 | trustee for a period of 4 2 years, unless he or she sooner |
| 225 | leaves the employment of the municipality as a police officer, |
| 226 | whereupon the legislative body of the municipality shall choose |
| 227 | a successor in the same manner as an original appointment. Each |
| 228 | police officer may succeed himself or herself in office. |
| 229 | Section 5. Subsection (1) of section 185.06, Florida |
| 230 | Statutes, is amended to read: |
| 231 | 185.06 General powers and duties of board of |
| 232 | trustees.--For any municipality, chapter plan, local law |
| 233 | municipality, or local law plan under this chapter: |
| 234 | (1) The board of trustees, subject to the fiduciary |
| 235 | standards in ss. 112.661 and 518.11 and the Code of Ethics in |
| 236 | ss. 112.311?112.3187, may: |
| 237 | (a) Invest and reinvest the assets of the retirement trust |
| 238 | fund in annuity and life insurance contracts of life insurance |
| 239 | companies in amounts sufficient to provide, in whole or in part, |
| 240 | the benefits to which all of the participants in the municipal |
| 241 | police officers' retirement trust fund shall be entitled under |
| 242 | the provisions of this chapter, and pay the initial and |
| 243 | subsequent premiums thereon. |
| 244 | (b) Invest and reinvest the assets of the retirement trust |
| 245 | fund in any lawful investment as provided in the applicable |
| 246 | provisions of s. 215.47(1)-(8), (10), and (16), provided the |
| 247 | investment is permitted in the written investment policy adopted |
| 248 | by the board as provided in part VII of chapter 112.: |
| 249 | 1. Time or savings accounts of a national bank, a state |
| 250 | bank insured by the Bank Insurance Fund, or a savings and loan |
| 251 | association insured by the Savings Association Insurance Fund |
| 252 | which is administered by the Federal Deposit Insurance |
| 253 | Corporation or a state or federal chartered credit union whose |
| 254 | share accounts are insured by the National Credit Union Share |
| 255 | Insurance Fund. |
| 256 | 2. Obligations of the United States or obligations |
| 257 | guaranteed as to principal and interest by the United States. |
| 258 | 3. Bonds issued by the State of Israel. |
| 259 | 4. Bonds, stocks, or other evidences of indebtedness |
| 260 | issued or guaranteed by a corporation organized under the laws |
| 261 | of the United States, any state or organized territory of the |
| 262 | United States, or the District of Columbia, provided: |
| 263 | a. The corporation is listed on any one or more of the |
| 264 | recognized national stock exchanges or on the National Market |
| 265 | System of the NASDAQ Stock Market and, in the case of bonds |
| 266 | only, holds a rating in one of the three highest classifications |
| 267 | by a major rating service; and |
| 268 | b. The board of trustees shall not invest more than 5 |
| 269 | percent of its assets in the common stock or capital stock of |
| 270 | any one issuing company, nor shall the aggregate investment in |
| 271 | any one issuing company exceed 5 percent of the outstanding |
| 272 | capital stock of the company or the aggregate of its investments |
| 273 | under this subparagraph at cost exceed 50 percent of the fund's |
| 274 | assets. |
| 275 |
|
| 276 | This paragraph shall apply to all boards of trustees and |
| 277 | participants. However, in the event that a municipality has a |
| 278 | duly enacted pension plan pursuant to, and in compliance with, |
| 279 | s. 185.35 and the trustees thereof desire to vary the investment |
| 280 | procedures herein, the trustees of such plan shall request a |
| 281 | variance of the investment procedures as outlined herein only |
| 282 | through a municipal ordinance or special act of the Legislature; |
| 283 | where a special act, or a municipality by ordinance adopted |
| 284 | prior to July 1, 1998, permits a greater than 50-percent equity |
| 285 | investment, such municipality shall not be required to comply |
| 286 | with the aggregate equity investment provisions of this |
| 287 | paragraph. Notwithstanding any other provision of law to the |
| 288 | contrary, nothing in this section may be construed to take away |
| 289 | any preexisting legal authority to make equity investments that |
| 290 | exceed the requirements of this paragraph. The board of trustees |
| 291 | may invest up to 10 percent of plan assets in foreign |
| 292 | securities. |
| 293 | (c) Issue drafts upon the municipal police officers' |
| 294 | retirement trust fund pursuant to this act and rules and |
| 295 | regulations prescribed by the board of trustees. All such drafts |
| 296 | shall be consecutively numbered, be signed by the chair and |
| 297 | secretary or two individuals designated by the board, and state |
| 298 | upon their faces the purposes for which the drafts are drawn. |
| 299 | The city treasurer or other depository shall retain such drafts |
| 300 | when paid, as permanent vouchers for disbursements made, and no |
| 301 | money shall otherwise be drawn from the fund. |
| 302 | (d) Finally decide all claims to relief under the board's |
| 303 | rules and regulations and pursuant to the provisions of this |
| 304 | act. |
| 305 | (e) Convert into cash any securities of the fund. |
| 306 | (f) Keep a complete record of all receipts and |
| 307 | disbursements and of the board's acts and proceedings. |
| 308 | (g) Establish the maximum age for entrance into the fund |
| 309 | within the provisions of s. 112.044. In the case of conflict |
| 310 | with any provision of law, this paragraph shall control in all |
| 311 | matters relating to administration of municipal police officers' |
| 312 | retirement trust funds. |
| 313 | Section 6. If any provision of this act or its application |
| 314 | to any person or circumstance is held invalid, the invalidity |
| 315 | does not affect other provisions or applications of the act |
| 316 | which can be given effect without the invalid provision or |
| 317 | application, and to this end the provisions of this act are |
| 318 | severable. |
| 319 | Section 7. This act shall take effect July 1, 2006. |