| 1 | A bill to be entitled |
| 2 | An act relating to the City Pension Fund for Firefighters |
| 3 | and Police Officers in the City of Tampa, Hillsborough |
| 4 | County; authorizing the City of Tampa to enter into a |
| 5 | supplemental contract with certain firefighters and police |
| 6 | officers to comply with chapter 2009-97, Laws of Florida; |
| 7 | revising the manner in which elective trustees are |
| 8 | elected; increasing the maximum length of time prior to |
| 9 | term commencement in which to conduct trustee elections; |
| 10 | allowing the board to retain the services of more than one |
| 11 | nationally recognized professional investment counselor; |
| 12 | increasing the investment cap on foreign securities; |
| 13 | providing that the investment cap on foreign securities is |
| 14 | measured on a market value basis and may not be revised, |
| 15 | amended, increased, or repealed except as provided by |
| 16 | general law; allowing retired members to elect to receive |
| 17 | a reduced retirement benefit in order to provide a |
| 18 | surviving spouse benefit under certain circumstances; |
| 19 | allowing members to purchase up to an additional 5 years |
| 20 | of credited service based upon prior service as a full- |
| 21 | time certified firefighter or certified police officer or |
| 22 | for military service in the Armed Forces of the United |
| 23 | States subject to certain conditions; allowing DROP |
| 24 | participants upon entering DROP and annually thereafter to |
| 25 | elect an option for accruing annual interest at a low-risk |
| 26 | variable rate selected annually by the board of trustees, |
| 27 | in its sole discretion, in lieu of a rate reflecting the |
| 28 | fund's net investment performance, as determined by the |
| 29 | board of trustees; prohibiting members from selecting |
| 30 | certain pension contract changes and rejecting others; |
| 31 | confirming in part the City of Tampa Firefighters and |
| 32 | Police Officers Pension Contract; providing for |
| 33 | severability; providing an effective date. |
| 34 |
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| 35 | Be It Enacted by the Legislature of the State of Florida: |
| 36 |
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| 37 | Section 1. The City of Tampa is authorized and empowered |
| 38 | to enter into a supplemental contract with each firefighter or |
| 39 | police officer who was an active member of the City Pension Fund |
| 40 | for Firefighters and Police Officers in the City of Tampa on or |
| 41 | after the date this act becomes a law, or each firefighter or |
| 42 | police officer who hereafter enters into a pension contract with |
| 43 | the City, to comply with chapter 2009-97, Laws of Florida. |
| 44 | Section 2. Section 5(C), Section 6, Section 9(C), Section |
| 45 | 17, and Section 26(D) of the City of Tampa Firefighters and |
| 46 | Police Officers Pension Contract as prescribed by Section 28-17 |
| 47 | of the City of Tampa Code [Ordinance No. 4746-A, enacted |
| 48 | September 30, 1969], as amended by Section 28-19 of the City of |
| 49 | Tampa Code [Ordinance No. 6038-A, enacted September 17, 1974], |
| 50 | pursuant to chapter 74-613, Laws of Florida, as further amended |
| 51 | by Ordinance No. 89-314, enacted December 21, 1989, and |
| 52 | approved, ratified, validated, and confirmed by chapter 90-391, |
| 53 | Laws of Florida, as further amended by chapter 92-231, Laws of |
| 54 | Florida, chapter 94-463, Laws of Florida, chapter 98-515, Laws |
| 55 | of Florida, chapter 2000-485, Laws of Florida, Ordinance No. |
| 56 | 2001-133, enacted July 3, 2001, chapter 2001-288, Laws of |
| 57 | Florida, chapter 2002-369, Laws of Florida, Ordinance No. 2003- |
| 58 | 22, enacted January 23, 2003, chapter 2004-427, Laws of Florida, |
| 59 | and chapter 2007-304, Laws of Florida, are amended to read: |
| 60 | SECTION 5. The general administration and responsibility |
| 61 | for the proper operation of the pension system and for making |
| 62 | effective the provisions of this Act are hereby vested in a |
| 63 | board consisting of nine persons, as follows: |
| 64 | (1) Three members of the City Administration other than |
| 65 | firefighters or police officers to be appointed as hereinafter |
| 66 | provided; |
| 67 | (2) Three members of the Fire Department to be elected as |
| 68 | hereinafter provided; and |
| 69 | (3) Three members of the Police Department to be elected |
| 70 | as hereinafter provided. |
| 71 | (C) The elective trustees shall be elected in the following |
| 72 | manner, to wit: by per capita vote of all members of each of said |
| 73 | respective departments who come within the purview of this Act, |
| 74 | both active and retired, at elections meetings to be held at |
| 75 | places designated by the Board, at which elections meetings all |
| 76 | qualified members entitled to vote shall be notified in person or |
| 77 | by mail ten days in advance of said election meeting. The |
| 78 | candidate receiving the majority of votes for each office shall |
| 79 | be declared elected and shall take office immediately upon |
| 80 | commencement of the term of office for which elected or as soon |
| 81 | thereafter as he shall qualify therefor. An election shall be |
| 82 | held each year not more than sixty (60) thirty (30) and not less |
| 83 | than ten (10) days prior to the commencement of the terms for |
| 84 | which trustees are to be elected in that year. The Board of |
| 85 | Trustees shall meet, organize, and elect one trustee as chairman, |
| 86 | one trustee as vice chairman, and one trustee as secretary within |
| 87 | ten days after any trustees are elected and duly qualified. |
| 88 | SECTION 6. Money shall be withdrawn from the Pension Fund |
| 89 | created by this Act only upon warrants executed by a majority of |
| 90 | the Board of Trustees. Monies needed for the meeting of the |
| 91 | current obligations of said fund may be deposited in a |
| 92 | depository recognized by law for the deposit of funds of the |
| 93 | State of Florida and upon the posting of similar security for |
| 94 | that required for state deposits. The Board shall have exclusive |
| 95 | charge of the investment of any surplus in said fund not needed |
| 96 | for the current obligations thereof; and said funds shall be |
| 97 | managed by said Board and shall be invested by said Board in |
| 98 | accordance with the following: |
| 99 | (1) That the Board shall retain the services of one or more |
| 100 | a nationally recognized professional investment counselors |
| 101 | counsel. |
| 102 | (2) That not less than once every six (6) months a written |
| 103 | opinion shall be obtained from the investment counselor or |
| 104 | counselors counsel as to the overall condition and composition of |
| 105 | the investment portfolio. |
| 106 | (3) That the portfolio, representing the principal or |
| 107 | surplus funds of the Pension Fund may be invested in the |
| 108 | following securities or other property, real or personal, |
| 109 | including, but without being limited to, bonds, notes, or other |
| 110 | evidences of indebtedness issued, or assumed or guaranteed in |
| 111 | whole or in part by the United States or any of its agencies or |
| 112 | instrumentalities; or by any foreign government or political |
| 113 | subdivisions or agencies thereof; or by the State of Florida, or |
| 114 | by any county, city, school district, municipal corporation, or |
| 115 | other political subdivision of the State of Florida, both general |
| 116 | and revenue obligations; in mortgages and other interests in |
| 117 | realty; or in such corporation bonds, notes, or other evidences |
| 118 | of indebtedness, and corporation stocks including common and |
| 119 | preferred stocks, of any corporation created or existing under |
| 120 | the laws of the United States or any of the states of the United |
| 121 | States, or of any foreign government or political subdivisions or |
| 122 | agencies thereof, provided that in making each and all of such |
| 123 | investments the Board of Trustees shall exercise the judgment and |
| 124 | care under the circumstances then prevailing which men of |
| 125 | ordinary prudence, discretion, and intelligence exercise in the |
| 126 | management of their own affairs, not in regard to speculation but |
| 127 | in regard to the permanent disposition of their funds, |
| 128 | considering the probable income therefrom as well as probable |
| 129 | safety of their capital; provided, however, that not more than |
| 130 | sixty-five per centum (65%) of said fund, based on the total book |
| 131 | value of all investments held, shall be invested at any given |
| 132 | time in common stocks, and that not more than five per centum |
| 133 | (5%) of said fund shall be invested at any given time in |
| 134 | preferred and common, or either, stock of any one corporation |
| 135 | and its affiliates and that not more than twenty-five per centum |
| 136 | (25%) ten per centum (10%) of said fund, based on the total market |
| 137 | book value of all investments held, shall be invested at any given |
| 138 | time in the bonds, notes or other evidences of indebtedness of |
| 139 | any foreign government or political subdivisions or agencies |
| 140 | thereof or corporations created or existing under the laws |
| 141 | thereof. The investment cap on foreign securities may not be |
| 142 | revised, amended, increased, or repealed except as provided by |
| 143 | general law. |
| 144 | SECTION 9. To the widow or widower (until death or |
| 145 | remarriage) and child or children (under the age of eighteen |
| 146 | (18) years), until death or marriage before reaching the age of |
| 147 | eighteen (18) years, of any member who dies from causes not |
| 148 | attributed to his active duties in the departments, provided, |
| 149 | however, that such member shall have been a member of such |
| 150 | department for ten (10) years prior to the date of his death, |
| 151 | the Trustees shall authorize and direct payment in equal monthly |
| 152 | installments as follows: |
| 153 | (C)(1) The widow or widower of a member who dies while |
| 154 | receiving a retirement pension shall receive sixty-five per |
| 155 | centum (65%) of the pension which the member was receiving; |
| 156 | provided, however, that no pension shall be allowed to any widow |
| 157 | or widower unless she or he was married to the member prior to |
| 158 | the date of retirement of the member, except as provided in |
| 159 | paragraph (2). For the widow or widower of any member of this |
| 160 | Pension Fund who prior to October 16, 1992 was a member of |
| 161 | Division B of the General Employees Pension Plan as established |
| 162 | by Chapter 81-497, Laws of Florida, as amended, upon the |
| 163 | reaching social security normal retirement age, except as |
| 164 | provided in Section 28(C) of this Contract, the benefit paid to |
| 165 | the widow or widower shall be reduced by an amount equal to the |
| 166 | actual social security benefit earned by the member for |
| 167 | employment as a firefighter or police officer for the City to |
| 168 | the extent that such employment is considered to be creditable |
| 169 | service under this Fund; provided, however, that if the widow or |
| 170 | widower does not receive the member's accrued social security |
| 171 | benefit, there shall be no reduction in benefits paid to such |
| 172 | widow or widower. The effect of such reduction shall be that the |
| 173 | sum of the benefit paid herein and said social security benefit |
| 174 | shall be equal to the amount of the benefit otherwise payable |
| 175 | herein. The widow or widower of each such member shall, upon |
| 176 | demand by the Board, authorize the Social Security |
| 177 | Administration to release any information necessary to calculate |
| 178 | such reduction. The Board shall not make any payment for the |
| 179 | benefit payable herein for any period during which such widow or |
| 180 | widower willfully fails or refuses to authorize the release of |
| 181 | such information in the manner and within the time prescribed by |
| 182 | rules adopted by the Board. |
| 183 | (2)(a) Members (i) who have been retired for less than |
| 184 | forty (40) years as of the effective date of this act, (ii) who |
| 185 | retired or entered DROP prior to October 1, 2002, and (iii) who |
| 186 | married or remarried after the date of the member's retirement |
| 187 | may elect prospectively to receive a voluntarily reduced |
| 188 | retirement benefit payable to the widow or widower. The amount |
| 189 | of the widow or widower's benefit will be based on the actuarial |
| 190 | equivalence calculated by the Fund's actuary, and such benefit |
| 191 | shall not result in any additional cost to the Fund or to the |
| 192 | plan sponsor than would have been incurred if the member had not |
| 193 | elected such benefit under this paragraph. Said actuarial |
| 194 | calculation shall be paid for by the retired member. |
| 195 | (b) The election under subparagraph (a) is available only |
| 196 | if (i) the spouse is not more than twenty (20) years younger |
| 197 | than the married or remarried member, (ii) the marriage or |
| 198 | remarriage occurred at least three (3) years prior to the |
| 199 | member's said election, and (iii) the electing member is |
| 200 | restricted to exercising this provision for a maximum of two |
| 201 | remarriages after retirement. |
| 202 | SECTION 17. COMPUTATION OF PENSION SERVICES AND PURCHASE |
| 203 | OF PAST CREDITED SERVICE. |
| 204 | (A) In computing service allowance, creditable service |
| 205 | shall include all service or employment of the member in the |
| 206 | Fire or Police Department, either continuous or interrupted, |
| 207 | provided, however, that any leave of absence without pay shall |
| 208 | not be included. Credited service shall include credit for up to |
| 209 | five (5) years of the time spent in the military service of the |
| 210 | Armed Forces of the United States if the member is in the active |
| 211 | employ of the City of Tampa immediately prior to such service |
| 212 | and leaves a permanent, full-time position as a firefighter or |
| 213 | police officer with the City of Tampa for the purpose of |
| 214 | voluntary or involuntary service in the Armed Forces of the |
| 215 | United States. The member must be entitled to re-employment |
| 216 | under the provisions of the Uniformed Services Employment and |
| 217 | Re-Employment Rights Act (USERRA). In order to be eligible for |
| 218 | the benefits of this section, a member must return to employment |
| 219 | as a firefighter or a police officer of the City of Tampa within |
| 220 | one (1) year from the date of release of such active service. |
| 221 | Pension contributions shall not be required for military service |
| 222 | as described in this section, unless permitted by the Florida |
| 223 | Statutes. The provision of this section shall not apply to |
| 224 | temporary service for reserve training. No credited service |
| 225 | shall be given for military service prior to employment or for |
| 226 | service as a firefighter or police officer for any other |
| 227 | employer. However, the amount of any pension or compensation |
| 228 | that may be received from the Federal Government on account of |
| 229 | disability from such service shall be deducted from the amount |
| 230 | of any pension due under this Act. The deduction of the amount |
| 231 | of any pension or compensation received from the Federal |
| 232 | Government shall be made only where the period of military |
| 233 | service (not exceeding five (5) years) is added to the period of |
| 234 | actual service of the member in either the Fire or Police |
| 235 | Department in order to make up the required number of years for |
| 236 | retirement on a City pension; that the disability for which any |
| 237 | pension or compensation is received from the Federal Government |
| 238 | shall be only such disability that was incurred in the military |
| 239 | service during the same period of military service used by the |
| 240 | member to add to his actual service in the Police or Fire |
| 241 | Departments in order to make up the number of years required for |
| 242 | retirement on a City pension; and that no deduction of the |
| 243 | amount of any pension or compensation received from the Federal |
| 244 | Government can or shall be made from the amount of any City |
| 245 | pension granted solely on account of disability. Any member who, |
| 246 | in order to perform such active military service, has left his |
| 247 | employment in the Police or Fire Departments of the City of |
| 248 | Tampa and (a) who received a certificate of honorable discharge |
| 249 | upon completion of such active military service, (b) is still |
| 250 | qualified to perform the duties of such position, (c) makes or |
| 251 | shall have made application for reemployment within thirty (30) |
| 252 | days after he is released from active military service, shall be |
| 253 | restored by the Police or Fire Department of the City of Tampa |
| 254 | to such position or a position of like seniority, status and |
| 255 | pay. |
| 256 | (B) Immediately upon the passage of this Act the Board of |
| 257 | Trustees shall at once establish the service record of all |
| 258 | employees, who may be entitled to participate in the benefits of |
| 259 | this Act, and shall keep a record thereof. |
| 260 | (C) For each firefighter and police officer who on October |
| 261 | 15, 1992 was not a member of this Pension Fund, but who was a |
| 262 | member of Division B of the General Employees Pension Plan as |
| 263 | established by Chapter 81-497, Laws of Florida, as amended, who |
| 264 | elects to join this pension fund, for purposes of determining |
| 265 | eligibility for any benefit in which length of service is a |
| 266 | factor, the entire period of time served as a firefighter or |
| 267 | police officer with the City of Tampa, either continuous or |
| 268 | interrupted, shall be included; provided, however, that any |
| 269 | leave of absence without pay shall not be included unless |
| 270 | required by applicable law, any service as a police recruit |
| 271 | shall not be included, and any service in which the firefighter |
| 272 | or police officer withdrew his/her contributions shall not be |
| 273 | included. Active military service shall be included to the |
| 274 | extent required by law. |
| 275 | (D) A member who has separated from service as a |
| 276 | firefighter or police officer and who has taken a refund of his |
| 277 | pension contributions, who is later readmitted to the Fund, |
| 278 | shall have the option of purchasing past creditable service. |
| 279 | (1) The readmitted member shall make the election in |
| 280 | writing to purchase past creditable service on a form prescribed |
| 281 | by the Board within 90 days of readmission, which election shall |
| 282 | be legally binding. |
| 283 | (2) The readmitted member who elects to purchase past |
| 284 | creditable service shall repay the withdrawn contributions with |
| 285 | interest at the actuarially assumed rate of return of the Fund |
| 286 | within 90 days of the later of, readmission or receipt of |
| 287 | written notification from the Board of the amount due. Interest |
| 288 | shall be calculated from the date of withdrawal to the date of |
| 289 | repayment at the actuarially assumed rate of return of the Fund. |
| 290 | (3) A member who fails to pay withdrawn contributions with |
| 291 | interest as provided in this subsection within 90 days of the |
| 292 | later of, readmission or receipt of written notification from |
| 293 | the Board of the amount due, shall not receive creditable |
| 294 | service for the period of time for which the withdrawn |
| 295 | contributions apply. |
| 296 | (E) All active police officer or firefighter members shall |
| 297 | be permitted to purchase up to an additional five (5) years of |
| 298 | credited service based upon (i) service as a full-time certified |
| 299 | firefighter or certified police officer employed by a city, |
| 300 | county, state, federal, or other public agency, or (ii) military |
| 301 | service in the Armed Forces of the United States. Temporary, |
| 302 | auxiliary, reserve, volunteer, or private agency service shall |
| 303 | not apply. Service credit purchased under the provisions of this |
| 304 | section shall not count for vesting purposes. |
| 305 | (1) Prior service shall not be granted until the member |
| 306 | has paid to the Pension Fund the actuarial cost of the service |
| 307 | purchased, as determined by the actuary for the Plan. Said |
| 308 | actuarial calculation shall be paid for by the member. Members |
| 309 | purchasing service credit shall provide the Board of Trustees |
| 310 | with proof of prior service with honorable separation. No |
| 311 | service credit may be purchased if the member is receiving or |
| 312 | will receive any other retirement benefit based on this service, |
| 313 | except in the case of a military pension. |
| 314 | (2) The contribution by the member of the actuarially |
| 315 | determined cost of the buyback may be made in one lump sum or |
| 316 | may be made by payroll deductions in installments for a period |
| 317 | of time which shall not exceed the number of years being |
| 318 | purchased. A member electing to make installment payments shall |
| 319 | be charged interest based on the actuarially assumed rate of |
| 320 | return for the Plan. A member making installment payments shall |
| 321 | complete all required payments prior to payment of any benefit |
| 322 | under this section. |
| 323 | (3) A member who terminates service prior to vesting in |
| 324 | the Plan shall be entitled to a refund, without interest, of all |
| 325 | money paid to buy back prior military, firefighter, or police |
| 326 | officer service. |
| 327 | SECTION 26. DEFERRED RETIREMENT OPTION PROGRAM |
| 328 | Notwithstanding any other provisions of this contract, and |
| 329 | subject to the provisions of this section, the Deferred |
| 330 | Retirement Option Program, hereinafter referred to as the DROP, |
| 331 | is an option under which an eligible member may elect to have |
| 332 | the member's pension benefits calculated as of a certain date |
| 333 | prior to retirement, and accumulate benefits plus the investment |
| 334 | return pursuant to this section during the DROP calculation |
| 335 | period. Participation in the DROP does not guarantee employment |
| 336 | for the DROP calculation period, as defined in this section. |
| 337 | (D) Interest and Administrative Costs - Interest shall |
| 338 | accumulate annually at the rate to reflect the Fund's net |
| 339 | investment performance, whether positive or negative, during the |
| 340 | DROP calculation period, less the cost of administering the |
| 341 | DROP, all of which shall be determined by the Board of Trustees. |
| 342 | A DROP participant shall have the opportunity to elect, as |
| 343 | provided in this subsection, an investment option to be applied |
| 344 | to such DROP participant's account for the Plan Year when |
| 345 | entering the DROP and for each subsequent Plan Year. In such |
| 346 | election, the DROP participant shall choose to have interest |
| 347 | accumulate annually, whether positive or negative, at either (i) |
| 348 | a rate reflecting the Fund's net investment performance, as |
| 349 | determined by the Board of Trustees, or (ii) a rate reflecting a |
| 350 | low-risk variable rate selected annually by the Board of |
| 351 | Trustees in its sole discretion. Each election must be made at |
| 352 | such time, on such forms, and in such manner as the Board of |
| 353 | Trustees may determine in its sole discretion. If the DROP |
| 354 | participant fails to make a valid election upon entering the |
| 355 | DROP, the Fund interest rate shall be applied as provided |
| 356 | herein. If the DROP participant fails to make a valid election |
| 357 | in a subsequent Plan Year, the election for the then-current |
| 358 | Plan Year shall be applied. |
| 359 | Section 3. The changes to the pension contract in this act |
| 360 | for firefighters and police officers who are active members of |
| 361 | the City Pension Fund for Firefighters and Police Officers in |
| 362 | the City of Tampa on or after the date this act becomes a law |
| 363 | shall be made available in a supplemental pension contract, and |
| 364 | an individual shall not be permitted to select some of the |
| 365 | pension contract changes and reject other pension contract |
| 366 | changes. Any firefighter or police officer who is entitled to |
| 367 | benefits under the City Pension Fund for Firefighters and Police |
| 368 | Officers in the City of Tampa who is actively employed as a |
| 369 | firefighter or police officer in the City of Tampa on or after |
| 370 | the date this act becomes a law shall have the opportunity to |
| 371 | sign such supplemental pension contract before October 1, 2011. |
| 372 | However, any person who becomes a member of the City Pension |
| 373 | Fund for Firefighters and Police Officers in the City of Tampa |
| 374 | on or after the date this act becomes a law shall be required as |
| 375 | a condition of membership into said Pension Fund to sign a |
| 376 | pension contract which includes the provisions of this act and |
| 377 | shall be required to make contributions if required as a result |
| 378 | of such benefits. |
| 379 | Section 4. The City of Tampa Firefighters and Police |
| 380 | Officers Pension Contract as prescribed by Section 28-17 of the |
| 381 | City of Tampa Code [Ordinance No. 4746-A, enacted September 30, |
| 382 | 1969], as amended by Section 28-19 of the City of Tampa Code |
| 383 | [Ordinance No. 6038-A, enacted September 17, 1974], pursuant to |
| 384 | chapter 74-613, Laws of Florida, as further amended by Ordinance |
| 385 | No. 89-314, enacted December 21, 1989, and approved, ratified, |
| 386 | validated, and confirmed by chapter 90-391, Laws of Florida, as |
| 387 | further amended by chapter 92-231, Laws of Florida, chapter 94- |
| 388 | 463, Laws of Florida, chapter 98-515, Laws of Florida, chapter |
| 389 | 2000-485, Laws of Florida, Ordinance No. 2001-133, enacted July |
| 390 | 3, 2001, chapter 2001-288, Laws of Florida, chapter 2002-369, |
| 391 | Laws of Florida, Ordinance No. 2003-22, enacted January 23, |
| 392 | 2003, chapter 2004-427, Laws of Florida, and chapter 2007-304, |
| 393 | Laws of Florida, is in all other respects approved, ratified, |
| 394 | validated, and confirmed. |
| 395 | Section 5. If any provision of this act or its application |
| 396 | to any person or circumstance is held invalid, the invalidity |
| 397 | does not affect other provisions or applications of the act |
| 398 | which can be given effect without the invalid provision or |
| 399 | application, and to this end the provisions of this act are |
| 400 | severable. |
| 401 | Section 6. This act shall take effect October 1, 2011. |