ENROLLED
       2011 Legislature            CS for CS for SB 1128, 1st Engrossed
       
       
       
       
       
       
                                                             20111128er
    1  
    2         An act relating to public retirement plans; amending
    3         s. 112.63, F.S.; requiring plans to regularly disclose
    4         the plan’s accrued benefits; amending s. 112.66, F.S.;
    5         providing for the calculation of local government
    6         retirement benefits after a certain date; providing a
    7         prohibition on the use of certain compensation for
    8         calculating retirement benefits; prohibiting the use
    9         of surpluses for expenses outside the plan;
   10         prohibiting a reduction in certain contributions to a
   11         plan; amending s. 112.665, F.S.; requiring the
   12         Department of Management Services to provide a fact
   13         sheet on each local plan; amending s. 175.032, F.S.;
   14         revising the definition of the term “compensation” or
   15         “salary” for purposes of firefighters’ pensions;
   16         providing a prohibition on the use of certain
   17         compensation; amending s. 175.061, F.S.; authorizing a
   18         municipality to change the municipality’s membership
   19         on the board of trustees operating its firefighters’
   20         pension plan under certain circumstances; amending s.
   21         175.091, F.S.; deleting a limitation on the
   22         justification for approving an increase in member
   23         contributions; amending s. 175.351, F.S.; revising a
   24         date relating to local law plans; conforming a cross
   25         reference; amending s. 185.02, F.S.; revising the
   26         definition of the terms “compensation” and “salary”
   27         for purposes of police officers’ pensions; providing a
   28         prohibition on the use of certain compensation for
   29         calculating retirement benefits; amending s. 185.05,
   30         F.S.; authorizing a municipality to change the
   31         municipality’s membership on the board of trustees
   32         operating its police officers’ pension plan under
   33         certain circumstances; amending s. 185.07, F.S.;
   34         deleting a limitation on the justification for
   35         approving an increase in member contributions;
   36         amending s. 185.35, F.S.; revising a date relating to
   37         local law plans; directing the Department of Financial
   38         Services to develop a plan for rating the financial
   39         strength of local government defined benefit plans;
   40         specifying factors for consideration; requiring
   41         certain entities to cooperate in providing data for
   42         the plan; requiring the department to submit the plan
   43         to the Governor, Chief Financial Officer, and
   44         Legislature by a certain date; creating the Task Force
   45         on Public Employee Disability Presumptions; providing
   46         for appointment and membership; specifying the issues
   47         for the task force to address; providing for a report
   48         to be submitted to the Governor, Chief Financial
   49         Officer, and Legislature by a certain date; providing
   50         for future dissolution; providing a declaration of
   51         important state interest; providing an effective date.
   52  
   53  Be It Enacted by the Legislature of the State of Florida:
   54  
   55         Section 1. Present paragraph (f) of subsection (1) of
   56  section 112.63, Florida Statutes, is redesignated as paragraph
   57  (g), and a new paragraph (f) is added to that subsection, to
   58  read:
   59         112.63 Actuarial reports and statements of actuarial
   60  impact; review.—
   61         (1) Each retirement system or plan subject to the
   62  provisions of this act shall have regularly scheduled actuarial
   63  reports prepared and certified by an enrolled actuary. The
   64  actuarial report shall consist of, but shall not be limited to,
   65  the following:
   66         (f) A disclosure of the present value of the plan’s accrued
   67  vested, nonvested, and total benefits, as adopted by the
   68  Financial Accounting Standards Board, using the Florida
   69  Retirement System’s assumed rate of return, in order to promote
   70  the comparability of actuarial data between local plans.
   71  
   72  The actuarial cost methods utilized for establishing the amount
   73  of the annual actuarial normal cost to support the promised
   74  benefits shall only be those methods approved in the Employee
   75  Retirement Income Security Act of 1974 and as permitted under
   76  regulations prescribed by the Secretary of the Treasury.
   77         Section 2. Subsections (11) through (13) are added to
   78  section 112.66, Florida Statutes, to read:
   79         112.66 General provisions.—The following general provisions
   80  relating to the operation and administration of any retirement
   81  system or plan covered by this part shall be applicable:
   82         (11) For noncollectively bargained service earned on or
   83  after July 1, 2011, or for service earned under collective
   84  bargaining agreements entered into on or after July 1, 2011,
   85  when calculating retirement benefits, a defined benefit pension
   86  system or plan sponsored by a local government may include up to
   87  300 hours per year of overtime compensation as specified in the
   88  plan or collective bargaining agreement, but may not include any
   89  payments for accrued unused sick leave or annual leave. For
   90  those members whose terms and conditions of employment are
   91  collectively bargained, this subsection is effective for the
   92  first agreement entered into on or after July 1, 2011. This
   93  subsection does not apply to state-administered retirement
   94  systems or plans.
   95         (12) An actuarial or cash surplus in any system or plan may
   96  not be used for any expenses outside the plan.
   97         (13) A local government sponsor of a retirement system or
   98  plan may not reduce contributions required to fund the normal
   99  cost. This subsection does not apply to state-administered
  100  retirement systems or plans.
  101         Section 3. Present paragraphs (e) and (f) of subsection (1)
  102  of section 112.665, Florida Statutes, are redesignated as
  103  paragraphs (f) and (g), respectively, and a new paragraph (e) is
  104  added to that subsection, to read:
  105         112.665 Duties of Department of Management Services.—
  106         (1) The Department of Management Services shall:
  107         (e) Provide a fact sheet for each participating local
  108  government defined benefit pension plan summarizing the plan’s
  109  actuarial status. The fact sheet should provide a summary of the
  110  plan’s most current actuarial data, minimum funding requirements
  111  as a percentage of pay, and a 5-year history of funded ratios.
  112  The fact sheet must include a brief explanation of each element
  113  in order to maximize the transparency of the local government
  114  plans. These documents shall be posted on the department’s
  115  website. Plan sponsors that have websites must provide a link to
  116  the department’s website.
  117         Section 4. Subsection (3) of section 175.032, Florida
  118  Statutes, is amended to read:
  119         175.032 Definitions.—For any municipality, special fire
  120  control district, chapter plan, local law municipality, local
  121  law special fire control district, or local law plan under this
  122  chapter, the following words and phrases have the following
  123  meanings:
  124         (3) “Compensation” or “salary” means, for noncollectively
  125  bargained service earned before July 1, 2011, or for service
  126  earned under collective bargaining agreements in place before
  127  July 1, 2011, the fixed monthly remuneration paid a firefighter.
  128  If; where, as in the case of a volunteer firefighter,
  129  remuneration is based on actual services rendered, as in the
  130  case of a volunteer firefighter, the term means the total cash
  131  remuneration received yearly for such services, prorated on a
  132  monthly basis. For noncollectively bargained service earned on
  133  or after July 1, 2011, or for service earned under collective
  134  bargaining agreements entered into on or after July 1, 2011, the
  135  term has the same meaning except that when calculating
  136  retirement benefits, up to 300 hours per year in overtime
  137  compensation may be included as specified in the plan or
  138  collective bargaining agreement, but payments for accrued unused
  139  sick or annual leave may not be included.
  140         (a) A retirement trust fund or plan may use a definition of
  141  salary other than the definition in this subsection but only if
  142  the monthly retirement income payable to each firefighter
  143  covered by the retirement trust fund or plan, as determined
  144  under s. 175.162(2)(a) and using such other definition, equals
  145  or exceeds the monthly retirement income that would be payable
  146  to each firefighter if his or her monthly retirement income were
  147  determined under s. 175.162(2)(a) and using the definition in
  148  this subsection.
  149         (a)(b) Any retirement trust fund or plan that which now or
  150  hereafter meets the requirements of this chapter does shall not,
  151  solely by virtue of this subsection, reduce or diminish the
  152  monthly retirement income otherwise payable to each firefighter
  153  covered by the retirement trust fund or plan.
  154         (b)(c) The member’s compensation or salary contributed as
  155  employee-elective salary reductions or deferrals to any salary
  156  reduction, deferred compensation, or tax-sheltered annuity
  157  program authorized under the Internal Revenue Code shall be
  158  deemed to be the compensation or salary the member would receive
  159  if he or she were not participating in such program and shall be
  160  treated as compensation for retirement purposes under this
  161  chapter.
  162         (c)(d) For any person who first becomes a member in any
  163  plan year beginning on or after January 1, 1996, compensation
  164  for that any plan year may shall not include any amounts in
  165  excess of the Internal Revenue Code s. 401(a)(17) limitation,
  166  (as amended by the Omnibus Budget Reconciliation Act of 1993),
  167  which limitation of $150,000 shall be adjusted as required by
  168  federal law for qualified government plans and shall be further
  169  adjusted for changes in the cost of living in the manner
  170  provided by Internal Revenue Code s. 401(a)(17)(B). For any
  171  person who first became a member before prior to the first plan
  172  year beginning on or after January 1, 1996, the limitation on
  173  compensation may shall be not be less than the maximum
  174  compensation amount that was allowed to be taken into account
  175  under the plan as in effect on July 1, 1993, which limitation
  176  shall be adjusted for changes in the cost of living since 1989
  177  in the manner provided by Internal Revenue Code s.
  178  401(a)(17)(1991).
  179         Section 5. Paragraph (b) of subsection (1) of section
  180  175.061, Florida Statutes, is amended to read:
  181         175.061 Board of trustees; members; terms of office;
  182  meetings; legal entity; costs; attorney’s fees.—For any
  183  municipality, special fire control district, chapter plan, local
  184  law municipality, local law special fire control district, or
  185  local law plan under this chapter:
  186         (1) In each municipality and in each special fire control
  187  district there is hereby created a board of trustees of the
  188  firefighters’ pension trust fund, which shall be solely
  189  responsible for administering the trust fund. Effective October
  190  1, 1986, and thereafter:
  191         (b) The membership of boards of trustees for local law
  192  plans shall be as follows:
  193         1. If a municipality or special fire control district has a
  194  pension plan for firefighters only, the provisions of paragraph
  195  (a) shall apply.
  196         2. If a municipality has a pension plan for firefighters
  197  and police officers, the provisions of paragraph (a) shall
  198  apply, except that one member of the board must shall be a
  199  firefighter as defined in s. 175.032 and one member of the board
  200  must shall be a police officer as defined in s. 185.02,
  201  respectively elected by a majority of the active firefighters or
  202  police officers who are members of the plan.
  203         3. A Any board of trustees operating a local law plan on
  204  July 1, 1999, which is combined with a plan for general
  205  employees shall hold an election of the firefighters, or
  206  firefighters and police officers, if included, to determine
  207  whether a plan is to be established for firefighters only, or
  208  for firefighters and police officers where included. Based on
  209  the election results, a new board shall be established as
  210  provided in subparagraph 1. or subparagraph 2., as appropriate.
  211  The municipality or fire control district shall enact an
  212  ordinance or resolution to implement the new board by October 1,
  213  1999. The newly established board shall take whatever action is
  214  necessary to determine the amount of assets which is
  215  attributable to firefighters, or firefighters and police
  216  officers where included. Such assets shall include all employer,
  217  employee, and state contributions made by or on behalf of
  218  firefighters, or firefighters and police officers where
  219  included, and any investment income derived from such
  220  contributions. All such moneys shall be transferred into the
  221  newly established retirement plan, as directed by the board.
  222  
  223  With respect to a any board of trustees operating a local law
  224  plan on June 30, 1986, nothing in this paragraph does not shall
  225  permit the reduction of the membership percentage of
  226  firefighters, or of firefighters and police officers where a
  227  joint or mixed fund exists. However, for the sole purpose of
  228  changing municipal representation, a municipality may by
  229  ordinance change the municipal representation on the board of
  230  trustees operating a local law plan by ordinance, only if such
  231  change does not reduce the membership percentage of
  232  firefighters, or firefighters and police officers, or the
  233  membership percentage of the municipal representation.
  234         Section 6. Paragraph (b) of subsection (2) of section
  235  175.091, Florida Statutes, is amended to read:
  236         175.091 Creation and maintenance of fund.—For any
  237  municipality, special fire control district, chapter plan, local
  238  law municipality, local law special fire control district, or
  239  local law plan under this chapter:
  240         (2) Member contribution rates may be adjusted as follows:
  241         (b) Firefighter member contributions may be increased by
  242  consent of the members’ collective bargaining representative or,
  243  if none, by majority consent of firefighter members of the fund
  244  to provide greater benefits.
  245  
  246  Nothing in this section shall be construed to require adjustment
  247  of member contribution rates in effect on the date this act
  248  becomes a law, including rates that exceed 5 percent of salary,
  249  provided that such rates are at least one-half of 1 percent of
  250  salary.
  251         Section 7. Section 175.351, Florida Statutes, is amended to
  252  read:
  253         175.351 Municipalities and special fire control districts
  254  having their own pension plans for firefighters.—For any
  255  municipality, special fire control district, local law
  256  municipality, local law special fire control district, or local
  257  law plan under this chapter, in order for municipalities and
  258  special fire control districts with their own pension plans for
  259  firefighters, or for firefighters and police officers if, where
  260  included, to participate in the distribution of the tax fund
  261  established pursuant to s. 175.101, local law plans must meet
  262  the minimum benefits and minimum standards set forth in this
  263  chapter.
  264         (1) PREMIUM TAX INCOME.—If a municipality has a pension
  265  plan for firefighters, or a pension plan for firefighters and
  266  police officers if, where included, which in the opinion of the
  267  division meets the minimum benefits and minimum standards set
  268  forth in this chapter, the board of trustees of the pension
  269  plan, as approved by a majority of firefighters of the
  270  municipality, may:
  271         (a) Place the income from the premium tax in s. 175.101 in
  272  such pension plan for the sole and exclusive use of its
  273  firefighters, or for firefighters and police officers if, where
  274  included, where it shall become an integral part of that pension
  275  plan and shall be used to pay extra benefits to the firefighters
  276  included in that pension plan; or
  277         (b) Place the income from the premium tax in s. 175.101 in
  278  a separate supplemental plan to pay extra benefits to
  279  firefighters, or to firefighters and police officers if where
  280  included, participating in such separate supplemental plan.
  281         (2) The premium tax provided by this chapter shall in all
  282  cases be used in its entirety to provide extra benefits to
  283  firefighters, or to firefighters and police officers if, where
  284  included. However, local law plans in effect on October 1, 1998,
  285  must shall be required to comply with the minimum benefit
  286  provisions of this chapter only to the extent that additional
  287  premium tax revenues become available to incrementally fund the
  288  cost of such compliance as provided in s. 175.162(2)(a). If When
  289  a plan is in compliance with such minimum benefit provisions, as
  290  subsequent additional premium tax revenues become available,
  291  they must shall be used to provide extra benefits. Local law
  292  plans created by special act before May 27, 1939, are deemed to
  293  comply with this chapter. For the purpose of this chapter, the
  294  term:
  295         (a) “Additional premium tax revenues” means revenues
  296  received by a municipality or special fire control district
  297  pursuant to s. 175.121 which exceed that amount received for
  298  calendar year 1997., and the term
  299         (b) “Extra benefits” means benefits in addition to or
  300  greater than those provided to general employees of the
  301  municipality and in addition to those in existence for
  302  firefighters on March 12, 1999. Local law plans created by
  303  special act before May 23, 1939, shall be deemed to comply with
  304  this chapter.
  305         (3)(2)A ADOPTION OR REVISION OF A LOCAL LAW PLAN.—No
  306  retirement plan or amendment to a retirement plan may not shall
  307  be proposed for adoption unless the proposed plan or amendment
  308  contains an actuarial estimate of the costs involved. No Such
  309  proposed plan or proposed plan change may not shall be adopted
  310  without the approval of the municipality, special fire control
  311  district, or, where permitted, the Legislature. Copies of the
  312  proposed plan or proposed plan change and the actuarial impact
  313  statement of the proposed plan or proposed plan change shall be
  314  furnished to the division before prior to the last public
  315  hearing thereon. Such statement must shall also indicate whether
  316  the proposed plan or proposed plan change is in compliance with
  317  s. 14, Art. X of the State Constitution and those provisions of
  318  part VII of chapter 112 which are not expressly provided in this
  319  chapter. Notwithstanding any other provision, only those local
  320  law plans created by special act of legislation before prior to
  321  May 27 23, 1939, are shall be deemed to meet the minimum
  322  benefits and minimum standards only in this chapter.
  323         (4)(3) Notwithstanding any other provision, with respect to
  324  any supplemental plan municipality:
  325         (a) Section 175.032(3)(a) shall not apply, and A local law
  326  plan and a supplemental plan may continue to use their
  327  definition of compensation or salary in existence on March 12,
  328  1999 the effective date of this act.
  329         (b) Section 175.061(1)(b) does shall not apply, and a local
  330  law plan and a supplemental plan shall continue to be
  331  administered by a board or boards of trustees numbered,
  332  constituted, and selected as the board or boards were numbered,
  333  constituted, and selected on December 1, 2000.
  334         (c) The election set forth in paragraph (1)(b) is shall be
  335  deemed to have been made.
  336         (5)(4) The retirement plan setting forth the benefits and
  337  the trust agreement, if any, covering the duties and
  338  responsibilities of the trustees and the regulations of the
  339  investment of funds must be in writing, and copies thereof must
  340  be made available to the participants and to the general public.
  341         Section 8. Subsection (4) of section 185.02, Florida
  342  Statutes, is amended to read:
  343         185.02 Definitions.—For any municipality, chapter plan,
  344  local law municipality, or local law plan under this chapter,
  345  the following words and phrases as used in this chapter shall
  346  have the following meanings, unless a different meaning is
  347  plainly required by the context:
  348         (4) “Compensation” or “salary” means, for noncollectively
  349  bargained service earned before July 1, 2011, or for service
  350  earned under collective bargaining agreements in place before
  351  July 1, 2011, the total cash remuneration including “overtime”
  352  paid by the primary employer to a police officer for services
  353  rendered, but not including any payments for extra duty or a
  354  special detail work performed on behalf of a second party
  355  employer. However, A local law plan may limit the amount of
  356  overtime payments which can be used for retirement benefit
  357  calculation purposes; however, but in no event shall such
  358  overtime limit may not be less than 300 hours per officer per
  359  calendar year. For noncollectively bargained service earned on
  360  or after July 1, 2011, or for service earned under collective
  361  bargaining agreements entered into on or after July 1, 2011, the
  362  term has the same meaning except that when calculating
  363  retirement benefits, up to 300 hours per year in overtime
  364  compensation may be included as specified in the plan or
  365  collective bargaining agreement, but payments for accrued unused
  366  sick or annual leave may not be included.
  367         (a) Any retirement trust fund or plan that which now or
  368  hereafter meets the requirements of this chapter does shall not,
  369  solely by virtue of this subsection, reduce or diminish the
  370  monthly retirement income otherwise payable to each police
  371  officer covered by the retirement trust fund or plan.
  372         (b) The member’s compensation or salary contributed as
  373  employee-elective salary reductions or deferrals to any salary
  374  reduction, deferred compensation, or tax-sheltered annuity
  375  program authorized under the Internal Revenue Code shall be
  376  deemed to be the compensation or salary the member would receive
  377  if he or she were not participating in such program and shall be
  378  treated as compensation for retirement purposes under this
  379  chapter.
  380         (c) For any person who first becomes a member in any plan
  381  year beginning on or after January 1, 1996, compensation for
  382  that any plan year may shall not include any amounts in excess
  383  of the Internal Revenue Code s. 401(a)(17) limitation, (as
  384  amended by the Omnibus Budget Reconciliation Act of 1993), which
  385  limitation of $150,000 shall be adjusted as required by federal
  386  law for qualified government plans and shall be further adjusted
  387  for changes in the cost of living in the manner provided by
  388  Internal Revenue Code s. 401(a)(17)(B). For any person who first
  389  became a member before prior to the first plan year beginning on
  390  or after January 1, 1996, the limitation on compensation may
  391  shall be not be less than the maximum compensation amount that
  392  was allowed to be taken into account under the plan as in effect
  393  on July 1, 1993, which limitation shall be adjusted for changes
  394  in the cost of living since 1989 in the manner provided by
  395  Internal Revenue Code s. 401(a)(17)(1991).
  396         Section 9. Paragraph (b) of subsection (1) of section
  397  185.05, Florida Statutes, is amended to read:
  398         185.05 Board of trustees; members; terms of office;
  399  meetings; legal entity; costs; attorney’s fees.—For any
  400  municipality, chapter plan, local law municipality, or local law
  401  plan under this chapter:
  402         (1) In each municipality described in s. 185.03 there is
  403  hereby created a board of trustees of the municipal police
  404  officers’ retirement trust fund, which shall be solely
  405  responsible for administering the trust fund. Effective October
  406  1, 1986, and thereafter:
  407         (b) The membership of boards of trustees for local law
  408  plans is shall be as follows:
  409         1. If a municipality has a pension plan for police officers
  410  only, the provisions of paragraph (a) shall apply.
  411         2. If a municipality has a pension plan for police officers
  412  and firefighters, the provisions of paragraph (a) shall apply,
  413  except that one member of the board shall be a police officer as
  414  defined in s. 185.02 and one member shall be a firefighter as
  415  defined in s. 175.032, respectively, elected by a majority of
  416  the active firefighters and police officers who are members of
  417  the plan.
  418         3. Any board of trustees operating a local law plan on July
  419  1, 1999, which is combined with a plan for general employees
  420  shall hold an election of the police officers, or police
  421  officers and firefighters if included, to determine whether a
  422  plan is to be established for police officers only, or for
  423  police officers and firefighters where included. Based on the
  424  election results, a new board shall be established as provided
  425  in subparagraph 1. or subparagraph 2., as appropriate. The
  426  municipality shall enact an ordinance to implement the new board
  427  by October 1, 1999. The newly established board shall take
  428  whatever action is necessary to determine the amount of assets
  429  which is attributable to police officers, or police officers and
  430  firefighters where included. Such assets shall include all
  431  employer, employee, and state contributions made by or on behalf
  432  of police officers, or police officers and firefighters where
  433  included, and any investment income derived from such
  434  contributions. All such moneys shall be transferred into the
  435  newly established retirement plan, as directed by the board.
  436  
  437  With respect to any board of trustees operating a local law plan
  438  on June 30, 1986, nothing in this paragraph does not shall
  439  permit the reduction of the membership percentage of police
  440  officers or police officers and firefighters. However, for the
  441  sole purpose of changing municipal representation, a
  442  municipality may by ordinance change the municipal
  443  representation on the board of trustees operating a local law
  444  plan by ordinance, only if such change does not reduce the
  445  membership percentage of police officers, or police officers and
  446  firefighters, or the membership percentage of the municipal
  447  representation.
  448         Section 10. Paragraph (b) of subsection (2) of section
  449  185.07, Florida Statutes, is amended to read:
  450         185.07 Creation and maintenance of fund.—For any
  451  municipality, chapter plan, local law municipality, or local law
  452  plan under this chapter:
  453         (2) Member contribution rates may be adjusted as follows:
  454         (b) Police officer member contributions may be increased by
  455  consent of the members’ collective bargaining representative or,
  456  if none, by majority consent of police officer members of the
  457  fund to provide greater benefits.
  458  
  459  Nothing in this section shall be construed to require adjustment
  460  of member contribution rates in effect on the date this act
  461  becomes a law, including rates that exceed 5 percent of salary,
  462  provided that such rates are at least one-half of 1 percent of
  463  salary.
  464         Section 11. Section 185.35, Florida Statutes, is amended to
  465  read:
  466         185.35 Municipalities having their own pension plans for
  467  police officers.—For any municipality, chapter plan, local law
  468  municipality, or local law plan under this chapter, in order for
  469  municipalities with their own pension plans for police officers,
  470  or for police officers and firefighters if where included, to
  471  participate in the distribution of the tax fund established
  472  pursuant to s. 185.08, local law plans must meet the minimum
  473  benefits and minimum standards set forth in this chapter:
  474         (1) PREMIUM TAX INCOME.—If a municipality has a pension
  475  plan for police officers, or for police officers and
  476  firefighters if where included, which, in the opinion of the
  477  division, meets the minimum benefits and minimum standards set
  478  forth in this chapter, the board of trustees of the pension
  479  plan, as approved by a majority of police officers of the
  480  municipality, may:
  481         (a) Place the income from the premium tax in s. 185.08 in
  482  such pension plan for the sole and exclusive use of its police
  483  officers, or its police officers and firefighters if where
  484  included, where it shall become an integral part of that pension
  485  plan and shall be used to pay extra benefits to the police
  486  officers included in that pension plan; or
  487         (b) May place the income from the premium tax in s. 185.08
  488  in a separate supplemental plan to pay extra benefits to the
  489  police officers, or police officers and firefighters if where
  490  included, participating in such separate supplemental plan.
  491         (2) The premium tax provided by this chapter shall in all
  492  cases be used in its entirety to provide extra benefits to
  493  police officers, or to police officers and firefighters if,
  494  where included. However, local law plans in effect on October 1,
  495  1998, must shall be required to comply with the minimum benefit
  496  provisions of this chapter only to the extent that additional
  497  premium tax revenues become available to incrementally fund the
  498  cost of such compliance as provided in s. 185.16(2). If When a
  499  plan is in compliance with such minimum benefit provisions, as
  500  subsequent additional tax revenues become available, they shall
  501  be used to provide extra benefits. Local law plans created by
  502  special act before May 27, 1939, shall be deemed to comply with
  503  this chapter. For the purpose of this chapter, the term:
  504         (a) “Additional premium tax revenues” means revenues
  505  received by a municipality pursuant to s. 185.10 which exceed
  506  the amount received for calendar year 1997., and the term
  507         (b) “Extra benefits” means benefits in addition to or
  508  greater than those provided to general employees of the
  509  municipality and in addition to those in existence for police
  510  officers on March 12, 1999. Local law plans created by special
  511  act before May 23, 1939, shall be deemed to comply with this
  512  chapter.
  513         (3)(2)A ADOPTION OR REVISION OF A LOCAL LAW PLAN.—No
  514  retirement plan or amendment to a retirement plan may not shall
  515  be proposed for adoption unless the proposed plan or amendment
  516  contains an actuarial estimate of the costs involved. No Such
  517  proposed plan or proposed plan change may not shall be adopted
  518  without the approval of the municipality or, where permitted,
  519  the Legislature. Copies of the proposed plan or proposed plan
  520  change and the actuarial impact statement of the proposed plan
  521  or proposed plan change shall be furnished to the division
  522  before prior to the last public hearing thereon. Such statement
  523  must shall also indicate whether the proposed plan or proposed
  524  plan change is in compliance with s. 14, Art. X of the State
  525  Constitution and those provisions of part VII of chapter 112
  526  which are not expressly provided in this chapter.
  527  Notwithstanding any other provision, only those local law plans
  528  created by special act of legislation before prior to May 27 23,
  529  1939, are shall be deemed to meet the minimum benefits and
  530  minimum standards only in this chapter.
  531         (4)(3) Notwithstanding any other provision, with respect to
  532  any supplemental plan municipality:
  533         (a) Section 185.02(4)(a) does shall not apply, and a local
  534  law plan and a supplemental plan may continue to use their
  535  definition of compensation or salary in existence on March 12,
  536  1999 the effective date of this act.
  537         (b) Section 185.05(1)(b) shall not apply, and A local law
  538  plan and a supplemental plan must shall continue to be
  539  administered by a board or boards of trustees numbered,
  540  constituted, and selected as the board or boards were numbered,
  541  constituted, and selected on December 1, 2000.
  542         (c) The election set forth in paragraph (1)(b) is shall be
  543  deemed to have been made.
  544         (5)(4) The retirement plan setting forth the benefits and
  545  the trust agreement, if any, covering the duties and
  546  responsibilities of the trustees and the regulations of the
  547  investment of funds must be in writing and copies made available
  548  to the participants and to the general public.
  549         Section 12. Financial rating of local pension plans.—The
  550  Department of Management Services shall develop a plan for
  551  creating standardized ratings for classifying the financial
  552  strength of all local government defined benefit pension plans.
  553         (1) In developing the plan, the department shall consider,
  554  without limitation:
  555         (a) The plan’s current and future unfunded liabilities.
  556         (b) The plan’s net asset value, managed returns, and funded
  557  ratio.
  558         (c) Metrics related to the sustainability of the plan,
  559  including, but not limited to, the percentage that the annual
  560  contribution is of the participating employee payroll.
  561         (d) Municipal bond ratings for the local government, if
  562  applicable.
  563         (e) Whether the local government has reduced contribution
  564  rates to the plan when the plan has an actuarial surplus.
  565         (f) Whether the local government uses any actuarial surplus
  566  in the plan for obligations outside the plan.
  567         (2) The department may obtain data, information, and
  568  assistance from state agencies, local governments, or political
  569  subdivisions thereof, which shall provide the department with
  570  all relevant information and assistance on any matter within
  571  their knowledge or control.
  572         (3) The department shall submit the plan, plus any related
  573  findings and recommendations, to the Governor, the Chief
  574  Financial Officer, the President of the Senate, and the Speaker
  575  of the House of Representatives by January 1, 2012. The report
  576  must also include specific recommendations for legislative
  577  action during the 2012 Regular Session of the Legislature.
  578         Section 13. Task Force on Public Employee Disability
  579  Presumptions.—
  580         (1) The Task Force on Public Employee Disability
  581  Presumptions is created for the purpose of developing findings
  582  and issuing recommendations on the disability presumptions in
  583  ss. 112.18, 175.231, and 185.34, Florida Statutes.
  584         (2) All members of the task force shall be appointed on or
  585  before July 15, 2011, and the task force shall hold its first
  586  meeting on or before August 15, 2011. The task force shall be
  587  composed of eight members as follows:
  588         (a) Three members appointed by the President of the Senate,
  589  one of whom must be an attorney who primarily represents
  590  plaintiffs and has experience in the relevant laws, one of whom
  591  must be a representative of organized labor and a member of a
  592  pension plan under chapter 175, Florida Statutes, and one of
  593  whom must be from the Florida Association of Counties.
  594         (b) Three members appointed by the Speaker of the House of
  595  Representatives, one of whom must be an attorney who primarily
  596  represents defendants and has experience in the relevant laws,
  597  one of whom must be a representative of organized labor and a
  598  member of a pension plan under chapter 185, Florida Statutes,
  599  and one of whom must be from the Florida League of Cities.
  600         (c) A member employed by the Division of Retirement of the
  601  Department of Management Services who has experience in local
  602  government pension plans, appointed by the Governor.
  603         (d) A member employed by the Department of Financial
  604  Services who has relevant expertise in state risk management,
  605  appointed by the Chief Financial Officer.
  606         (3) The task force shall address issues, including, but not
  607  limited to:
  608         (a) Data related to the operation of the statutory
  609  disability presumptions, and the fiscal impact on public
  610  employers in the areas of pensions and workers’ compensation.
  611         (b) The manner in which other states handle disability
  612  presumptions, and the fiscal impact on public employers.
  613         (c) Proposals for changes to the existing disability
  614  presumptions.
  615         (d) Evidentiary standards and burdens of proof for
  616  overcoming statutory disability presumptions, and whether
  617  consideration of risk factors and epidemiological data relating
  618  to nonwork-related conditions unique to an individual employee,
  619  such as blood cholesterol, body mass index, history of tobacco
  620  and alcohol use, and other medical conditions or behaviors that
  621  are associated with the diseases or conditions listed in
  622  disability presumptions, are appropriate for consideration.
  623         (4) The Department of Financial Services shall provide
  624  administrative support to the task force.
  625         (5) Members of the task force shall serve without
  626  compensation while in the performance of their duties, but are
  627  entitled to reimbursement for per diem and travel expenses in
  628  accordance with s. 112.061, Florida Statutes.
  629         (6) The task force may obtain data, information, and
  630  assistance from any state agency, local government, or any
  631  political subdivision thereof, which shall provide the task
  632  force with all relevant information and assistance on any matter
  633  within their knowledge or control.
  634         (7) The task force shall submit a report, including
  635  findings and recommendations, to the Governor, the Chief
  636  Financial Officer, the President of the Senate, and the Speaker
  637  of the House of Representatives by January 1, 2012. The report
  638  must include specific recommendations for legislative action
  639  during the 2012 Regular Session of the Legislature.
  640         (8) The task force is dissolved upon submission of its
  641  report.
  642         Section 14. The Legislature finds that a proper and
  643  legitimate state purpose is served when employees and retirees
  644  of the state and of its political subdivisions, and the
  645  dependents, survivors, and beneficiaries of those employees and
  646  retirees, are extended the basic protections afforded by
  647  governmental retirement systems that provide fair and adequate
  648  benefits and that are managed, administered, and funded in an
  649  actuarially sound manner as required by s. 14, Article X of the
  650  State Constitution and part VII of chapter 112, Florida
  651  Statutes. Therefore, the Legislature determines and declares
  652  that this act fulfills an important state interest.
  653         Section 15. This act shall take effect July 1, 2011.