Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1128
       
       
       
       
       
       
                                Barcode 640320                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/15/2011           .                                
                                       .                                
                                       .                                
                                       .                                
       —————————————————————————————————————————————————————————————————




       —————————————————————————————————————————————————————————————————
       The Committee on Budget (Richter) recommended the following:
       
    1         Senate Amendment to Amendment (138858) (with title
    2  amendment)
    3  
    4         Delete lines 269 - 343
    5  and insert:
    6         (2) The premium tax provided by this chapter shall in all
    7  cases be used in its entirety to provide extra benefits to
    8  firefighters, or to firefighters and police officers if, where
    9  included. However, local law plans in effect on October 1, 1998,
   10  must shall be required to comply with the minimum benefit
   11  provisions of this chapter only to the extent that additional
   12  premium tax revenues become available to incrementally fund the
   13  cost of such compliance as provided in s. 175.162(2)(a). If When
   14  a plan is in compliance with such minimum benefit provisions, as
   15  subsequent additional premium tax revenues become available,
   16  they must shall be used to provide extra benefits. Local law
   17  plans created by special act before May 27, 1939, shall be
   18  deemed to comply with this chapter. For the purpose of this
   19  chapter, the term:
   20         (a) “Additional premium tax revenues” means revenues
   21  received by a municipality or special fire control district
   22  pursuant to s. 175.121 which exceed that amount received for
   23  calendar year 1997., and the term
   24         (b) “Extra benefits” means benefits in addition to or
   25  greater than those provided to general employees of the
   26  municipality and in addition to those in existence for
   27  firefighters on March 12, 1999.
   28         (c) “Adjusted base amount” means the amount received for
   29  calendar year 1997, plus any amount attributable to the
   30  enactment of minimum benefits and any amount attributable to
   31  extra benefit improvements enacted since March 12, 1999. Local
   32  law plans created by special act before May 23, 1939, shall be
   33  deemed to comply with this chapter.
   34         (3) In addition to defined benefit plans, each plan sponsor
   35  must have a defined contribution supplemental plan by October 1,
   36  2011. However, the plan sponsor of any plan established by
   37  special act of the Legislature has until July 1, 2012, to create
   38  a defined contribution supplemental plan.
   39         (a) Notwithstanding any other provisions of this section,
   40  if, based on the most recent actuarial valuation, a defined
   41  benefit plan’s market value of assets, divided by present value
   42  of accrued benefits:
   43         1. Is higher than 80 percent and:
   44         a. The plan meets the minimum standards of this chapter,
   45  then all additional premium tax revenues in excess of the
   46  adjusted base amount and all accumulated additional premium tax
   47  revenues held in reserve must be used to fund a defined
   48  contribution supplemental plan; or
   49         b. The plan does not meet the minimum standards of this
   50  chapter, then all additional premium tax revenues in excess of
   51  the adjusted base amount and all accumulated additional premium
   52  tax revenues held in reserve must be used to meet the minimum
   53  standards of this chapter.
   54         2. Is 80 percent or less and:
   55         a. The plan meets the minimum standards of this chapter,
   56  then one-half of additional premium tax revenues in excess of
   57  the adjusted base amount and one-half of accumulated additional
   58  premium tax revenues held in reserve must be used to pay the
   59  plan’s actuarial accrued liability until the market value of
   60  assets, divided by the present value of accrued benefits,
   61  exceeds 80 percent. The other one-half of additional premium tax
   62  revenues in excess of the adjusted base amount and one-half of
   63  accumulated additional premium tax revenues held in reserve must
   64  be used to fund a defined contribution supplemental plan; or
   65         b. The plan does not meet the minimum standards of this
   66  chapter, then one-half of additional premium tax revenues in
   67  excess of the adjusted base amount and one-half of accumulated
   68  additional premium tax revenues held in reserve must be used to
   69  pay the plan’s actuarial accrued liability until the market
   70  value of assets, divided by the present value of accrued
   71  benefits, exceeds 80 percent. The other one-half of additional
   72  premium tax revenues in excess of the adjusted base amount and
   73  one-half of accumulated additional premium tax revenues held in
   74  reserve must be used to meet the minimum standards of this
   75  chapter.
   76         (b) For a supplemental plan that exists in conjunction with
   77  a defined benefit plan under this chapter, if the defined
   78  benefit plan’s market value of assets, divided by present value
   79  of accrued benefits:
   80         1. Is higher than 70 percent and:
   81         a. The plan meets the minimum standards of this chapter,
   82  then all additional premium tax revenues in excess of the
   83  premium tax revenues received for calendar year 2009 and all
   84  accumulated additional premium tax revenues held in reserve must
   85  be used to fund a defined contribution supplemental plan; or
   86         b. The plan does not meet the minimum standards of this
   87  chapter, then all additional premium tax revenues in excess of
   88  the premium tax revenues received for calendar year 2009 and all
   89  accumulated additional premium tax revenues held in reserve must
   90  be used to meet the minimum standards of this chapter.
   91         2. Is 70 percent or less and:
   92         a. The plan meets the minimum standards of this chapter,
   93  then all additional premium tax revenues in excess of the
   94  premium tax revenues received for calendar year 2009 and all
   95  accumulated additional premium tax revenues held in reserve must
   96  be used to pay the plan’s actuarial accrued liability until the
   97  market value of assets, divided by the present value of accrued
   98  benefits, exceeds 80 percent; or
   99         b. The plan does not meet the minimum standards of this
  100  chapter, then one-half of additional premium tax revenues in
  101  excess of the premium tax revenues received for calendar year
  102  2009 and one-half of accumulated additional premium tax revenues
  103  held in reserve must be used to pay the plan’s actuarial accrued
  104  liability until the market value of assets, divided by the
  105  present value of accrued benefits, exceeds 80 percent. The other
  106  one-half of additional premium tax revenues in excess of the
  107  premium tax revenues received for calendar year 2009 and one
  108  half of accumulated additional premium tax revenues held in
  109  reserve must be used to meet the minimum standards of this
  110  chapter.
  111  
  112  This subsection is effective July 1, 2011, for plans that have
  113  defined contribution supplemental plans as of July 1, 2011.
  114  Plans without defined contribution supplemental plans as of July
  115  1, 2011, have until July 1, 2012, to comply with this
  116  subsection.
  117         (4)(2)A ADOPTION OR REVISION OF A LOCAL LAW PLAN.—No
  118  retirement plan or amendment to a retirement plan may not shall
  119  be proposed for adoption unless the proposed plan or amendment
  120  contains an actuarial estimate of the costs involved. No Such
  121  proposed plan or proposed plan change may not shall be adopted
  122  without the approval of the municipality, special fire control
  123  district, or, where permitted, the Legislature. Copies of the
  124  proposed plan or proposed plan change and the actuarial impact
  125  statement of the proposed plan or proposed plan change shall be
  126  furnished to the division before prior to the last public
  127  hearing thereon. Such statement must shall also indicate whether
  128  the proposed plan or proposed plan change is in compliance with
  129  s. 14, Art. X of the State Constitution and those provisions of
  130  part VII of chapter 112 which are not expressly provided in this
  131  chapter. Notwithstanding any other provision, only those local
  132  law plans created by special act of legislation before prior to
  133  May 27 23, 1939, are shall be deemed to meet the minimum
  134  benefits and minimum standards only in this chapter.
  135         (5)(3) Notwithstanding any other provision, with respect to
  136  any supplemental plan municipality:
  137         (a) Section 175.032(3)(a) shall not apply, and A local law
  138  plan and a supplemental plan may continue to use their
  139  definition of compensation or salary in existence on March 12,
  140  1999 the effective date of this act.
  141         (b) Section 175.061(1)(b) does shall not apply, and a local
  142  law plan and a supplemental plan shall continue to be
  143  administered by a board or boards of trustees numbered,
  144  constituted, and selected as the board or boards were numbered,
  145  constituted, and selected on December 1, 2000.
  146         (c) The election set forth in paragraph (1)(b) is shall be
  147  deemed to have been made.
  148         (6)(4) The retirement plan setting forth the benefits and
  149         Delete lines 430 - 504
  150  and insert:
  151         (2) The premium tax provided by this chapter shall in all
  152  cases be used in its entirety to provide extra benefits to
  153  police officers, or to police officers and firefighters if,
  154  where included. However, local law plans in effect on October 1,
  155  1998, must shall be required to comply with the minimum benefit
  156  provisions of this chapter only to the extent that additional
  157  premium tax revenues become available to incrementally fund the
  158  cost of such compliance as provided in s. 185.16(2). If When a
  159  plan is in compliance with such minimum benefit provisions, as
  160  subsequent additional tax revenues become available, they shall
  161  be used to provide extra benefits. Local law plans created by
  162  special act before May 27, 1939, shall be deemed to comply with
  163  this chapter. For the purpose of this chapter, the term:
  164         (a) “Additional premium tax revenues” means revenues
  165  received by a municipality pursuant to s. 185.10 which exceed
  166  the amount received for calendar year 1997., and the term
  167         (b) “Extra benefits” means benefits in addition to or
  168  greater than those provided to general employees of the
  169  municipality and in addition to those in existence for police
  170  officers on March 12, 1999.
  171         (c) “Adjusted base amount” means the amount received for
  172  calendar year 1997, plus any amount attributable to the
  173  enactment of minimum benefits and any amount attributable to
  174  extra benefit improvements enacted since March 12, 1999. Local
  175  law plans created by special act before May 23, 1939, shall be
  176  deemed to comply with this chapter.
  177         (3) In addition to defined benefit plans, each plan sponsor
  178  must have a defined contribution supplemental plan by October 1,
  179  2011. However, the plan sponsor of any plan established by
  180  special act of the Legislature has until July 1, 2012, to create
  181  a defined contribution supplemental plan.
  182         (a) Notwithstanding any other provisions of this section,
  183  if, based on the most recent actuarial valuation, a defined
  184  benefit plan’s market value of assets, divided by present value
  185  of accrued benefits:
  186         1. Is higher than 80 percent and:
  187         a. The plan meets the minimum standards of this chapter,
  188  then all additional premium tax revenues in excess of the
  189  adjusted base amount and all accumulated additional premium tax
  190  revenues held in reserve must be used to fund a defined
  191  contribution supplemental plan; or
  192         b. The plan does not meet the minimum standards of this
  193  chapter, then all additional premium tax revenues in excess of
  194  the adjusted base amount and all accumulated additional premium
  195  tax revenues held in reserve must be used to meet the minimum
  196  standards of this chapter.
  197         2. Is 80 percent or less and:
  198         a. The plan meets the minimum standards of this chapter,
  199  then one-half of additional premium tax revenues in excess of
  200  the adjusted base amount and one-half of accumulated additional
  201  premium tax revenues held in reserve must be used to pay the
  202  plan’s actuarial accrued liability until the market value of
  203  assets, divided by the present value of accrued benefits,
  204  exceeds 80 percent. The other one-half of additional premium tax
  205  revenues in excess of the adjusted base amount and one-half of
  206  accumulated additional premium tax revenues held in reserve must
  207  be used to fund a defined contribution supplemental plan; or
  208         b. The plan does not meet the minimum standards of this
  209  chapter, then one-half of additional premium tax revenues in
  210  excess of the adjusted base amount and one-half of accumulated
  211  additional premium tax revenues held in reserve must be used to
  212  pay the plan’s actuarial accrued liability until the market
  213  value of assets, divided by the present value of accrued
  214  benefits, exceeds 80 percent. The other one-half of additional
  215  premium tax revenues in excess of the adjusted base amount and
  216  one-half of accumulated additional premium tax revenues held in
  217  reserve must be used to meet the minimum standards of this
  218  chapter.
  219         (b) For a supplemental plan that exists in conjunction with
  220  a defined benefit plan under this chapter, if the defined
  221  benefit plan’s market value of assets, divided by present value
  222  of accrued benefits:
  223         1. Is higher than 70 percent and:
  224         a. The plan meets the minimum standards of this chapter,
  225  then all additional premium tax revenues in excess of the
  226  premium tax revenues received for calendar year 2009 and all
  227  accumulated additional premium tax revenues held in reserve must
  228  be used to fund a defined contribution supplemental plan; or
  229         b. The plan does not meet the minimum standards of this
  230  chapter, then all additional premium tax revenues in excess of
  231  the premium tax revenues received for calendar year 2009 and all
  232  accumulated additional premium tax revenues held in reserve must
  233  be used to meet the minimum standards of this chapter.
  234         2. Is 70 percent or less and:
  235         a. The plan meets the minimum standards of this chapter,
  236  then all additional premium tax revenues in excess of the
  237  premium tax revenues received for calendar year 2009 and all
  238  accumulated additional premium tax revenues held in reserve must
  239  be used to pay the plan’s actuarial accrued liability until the
  240  market value of assets, divided by the present value of accrued
  241  benefits, exceeds 80 percent; or
  242         b. The plan does not meet the minimum standards of this
  243  chapter, then one-half of additional premium tax revenues in
  244  excess of the premium tax revenues received for calendar year
  245  2009 and one-half of accumulated additional premium tax revenues
  246  held in reserve must be used to pay the plan’s actuarial accrued
  247  liability until the market value of assets, divided by the
  248  present value of accrued benefits, exceeds 80 percent. The other
  249  one-half of additional premium tax revenues in excess of the
  250  premium tax revenues received for calendar year 2009 and one
  251  half of accumulated additional premium tax revenues held in
  252  reserve must be used to meet the minimum standards of this
  253  chapter.
  254  
  255  This subsection is effective July 1, 2011, for plans that have
  256  defined contribution supplemental plans as of July 1, 2011.
  257  Plans without defined contribution supplemental plans as of July
  258  1, 2011, have until July 1, 2012, to comply with this
  259  subsection.
  260         (4)(2)A ADOPTION OR REVISION OF A LOCAL LAW PLAN.—No
  261  retirement plan or amendment to a retirement plan may not shall
  262  be proposed for adoption unless the proposed plan or amendment
  263  contains an actuarial estimate of the costs involved. No Such
  264  proposed plan or proposed plan change may not shall be adopted
  265  without the approval of the municipality or, where permitted,
  266  the Legislature. Copies of the proposed plan or proposed plan
  267  change and the actuarial impact statement of the proposed plan
  268  or proposed plan change shall be furnished to the division
  269  before prior to the last public hearing thereon. Such statement
  270  must shall also indicate whether the proposed plan or proposed
  271  plan change is in compliance with s. 14, Art. X of the State
  272  Constitution and those provisions of part VII of chapter 112
  273  which are not expressly provided in this chapter.
  274  Notwithstanding any other provision, only those local law plans
  275  created by special act of legislation before prior to May 27 23,
  276  1939, are shall be deemed to meet the minimum benefits and
  277  minimum standards only in this chapter.
  278         (5)(3) Notwithstanding any other provision, with respect to
  279  any supplemental plan municipality:
  280         (a) Section 185.02(4)(a) does shall not apply, and a local
  281  law plan and a supplemental plan may continue to use their
  282  definition of compensation or salary in existence on March 12,
  283  1999 the effective date of this act.
  284         (b) Section 185.05(1)(b) does shall not apply, and a local
  285  law plan and a supplemental plan shall continue to be
  286  administered by a board or boards of trustees numbered,
  287  constituted, and selected as the board or boards were numbered,
  288  constituted, and selected on December 1, 2000.
  289         (c) The election set forth in paragraph (1)(b) is shall be
  290  deemed to have been made.
  291         (6)(4) The retirement plan setting forth the benefits and
  292  
  293  ================= T I T L E  A M E N D M E N T ================
  294         And the title is amended as follows:
  295         Delete lines 660 - 671
  296  and insert:
  297         purposes of firefighters’ pensions; amending s.
  298         175.351, F.S.; revising provisions relating to
  299         benefits paid from the premium tax by a municipality
  300         or special fire control district that has its own
  301         pension plan; providing for the use of accumulated
  302         additional premium tax revenues; requiring such
  303         revenues to be used to fund a defined contribution
  304         supplemental plan under certain circumstances;
  305         conforming a cross-reference; amending s. 185.02,
  306         F.S.; revising the definition of the terms
  307         “compensation” and “salary” for purposes of police
  308         officers’ pensions; amending s. 185.35, F.S.; revising
  309         provisions relating to benefits paid by a municipality
  310         that has its own pension plan; providing for the use
  311         of accumulated additional premium tax revenues;
  312         requiring such revenues to be used to fund a defined
  313         contribution supplemental plan under certain
  314         circumstances;