| 1 | A bill to be entitled |
| 2 | An act relating to public employees; amending s. |
| 3 | 112.18, F.S.; revising conditions under which certain |
| 4 | firefighters, law enforcement officers, correctional |
| 5 | officers, or correctional probations officers who |
| 6 | suffer or have died from any of specified medical |
| 7 | conditions are presumed to have been injured or killed |
| 8 | accidentally and in the line of duty; revising the |
| 9 | conditions under which the presumption with respect to |
| 10 | disability due to any of specified diseases is against |
| 11 | occurrence in the line of duty for purposes of |
| 12 | workers' compensation claims; changing an evidentiary |
| 13 | standard; amending s. 175.061, F.S.; providing duties |
| 14 | of the board of trustees relating to the reporting of |
| 15 | expenses and the operation under an administrative |
| 16 | expense budget; amending s. 175.071, F.S.; revising |
| 17 | requirements of the board relating to the employment |
| 18 | of legal counsel, actuaries, and other advisers; |
| 19 | amending s. 175.101, F.S.; providing for the |
| 20 | discontinuation of excise taxes under certain |
| 21 | conditions; amending s. 175.231, F.S.; providing |
| 22 | medical conditions or behaviors that are appropriate |
| 23 | for consideration in denying or overcoming the |
| 24 | presumption of accidental disabilities or death |
| 25 | suffered in the line of duty for firefighters; |
| 26 | changing an evidentiary standard; amending s. 175.351, |
| 27 | F.S.; revising provisions relating to benefits paid |
| 28 | from the premium tax by a municipality or special fire |
| 29 | control district that has its own pension plan; |
| 30 | providing definitions; providing a process for |
| 31 | determining the allocation of the premium tax revenues |
| 32 | to a supplemental plan; amending s. 175.361, F.S.; |
| 33 | providing certain powers and responsibilities to |
| 34 | municipalities and special fire control districts |
| 35 | relating to termination of plans and distribution of |
| 36 | funds; amending s. 185.02, F.S.; revising the |
| 37 | definition of the term "compensation" or "salary" for |
| 38 | purposes of police officers' pensions; amending s. |
| 39 | 185.05, F.S.; authorizing a municipality to change the |
| 40 | municipal representation of the board of trustees |
| 41 | pursuant to certain requirements; providing duties of |
| 42 | the board of trustees relating to the reporting of |
| 43 | expenses and the operation under an administrative |
| 44 | expense budget; amending s. 185.06, F.S.; revising |
| 45 | requirements of the board relating to the employment |
| 46 | of legal counsel, actuaries, and other advisers; |
| 47 | amending s. 185.08, F.S.; providing for the |
| 48 | discontinuation of excise taxes under certain |
| 49 | conditions; amending s. 185.34, F.S.; providing |
| 50 | medical conditions or behaviors that are appropriate |
| 51 | for consideration in denying or overcoming the |
| 52 | presumption of accidental disabilities or death |
| 53 | suffered in the line of duty for police officers; |
| 54 | changing an evidentiary standard; amending s. 185.35, |
| 55 | F.S.; revising provisions relating to benefits paid by |
| 56 | a municipality that has its own pension plan; |
| 57 | providing definitions; providing a process for |
| 58 | determining the allocation of the premium tax revenues |
| 59 | to a supplemental plan; amending s. 185.37, F.S.; |
| 60 | providing certain powers and responsibilities to |
| 61 | municipalities relating to termination of plans and |
| 62 | distribution of funds; providing a declaration of |
| 63 | important state interest; providing an effective date. |
| 64 |
|
| 65 | Be It Enacted by the Legislature of the State of Florida: |
| 66 |
|
| 67 | Section 1. Section 112.18, Florida Statutes, is amended to |
| 68 | read: |
| 69 | 112.18 Firefighters and law enforcement or correctional |
| 70 | officers; special provisions relative to disability.- |
| 71 | (1)(a) Any condition or impairment of health of any |
| 72 | Florida state, municipal, county, port authority, special tax |
| 73 | district, or fire control district firefighter or any law |
| 74 | enforcement officer, correctional officer, or correctional |
| 75 | probation officer as defined in s. 943.10(1), (2), or (3), who |
| 76 | has been employed by the current employer for at least 5 years |
| 77 | and who is less than 37 years of age, caused by tuberculosis, |
| 78 | heart disease, or hypertension resulting in total or partial |
| 79 | disability or death shall be presumed to have been accidental |
| 80 | and to have been suffered in the line of duty unless the |
| 81 | contrary be shown by a preponderance of the competent evidence. |
| 82 | However, any such firefighter, correctional officer, |
| 83 | correctional probation officer, or law enforcement officer must |
| 84 | have successfully passed a physical examination upon entering |
| 85 | into any such service as a firefighter, correctional officer, |
| 86 | correctional probation officer, or law enforcement officer, |
| 87 | which examination failed to reveal any evidence of any such |
| 88 | condition. Risk factors and epidemiological data relating to |
| 89 | nonwork-related conditions unique to an individual, such as |
| 90 | blood cholesterol, body mass index, history of tobacco and |
| 91 | alcohol use, and other medical conditions or behaviors that are |
| 92 | associated with the disease or condition subject to the |
| 93 | presumption, are appropriate for consideration in denying or |
| 94 | overcoming the presumption. Such presumption does not apply to |
| 95 | benefits payable under or granted in a policy of life insurance |
| 96 | or disability insurance, unless the insurer and insured have |
| 97 | negotiated for such additional benefits to be included in the |
| 98 | policy contract. |
| 99 | (b)1. For any workers' compensation claim filed under this |
| 100 | section and chapter 440 occurring on or after July 1, 2010, a |
| 101 | firefighter, law enforcement officer, correctional officer, or |
| 102 | correctional probation officer as defined in s. 943.10(1), (2), |
| 103 | or (3) suffering from tuberculosis, heart disease, or |
| 104 | hypertension is presumed not to have incurred such disease in |
| 105 | the line of duty as provided in this section if the firefighter, |
| 106 | law enforcement officer, correctional officer, or correctional |
| 107 | probation officer: |
| 108 | a. Departed in a material fashion from the prescribed |
| 109 | course of treatment of his or her personal physician and the |
| 110 | departure is demonstrated to have resulted in a significant |
| 111 | aggravation of the tuberculosis, heart disease, or hypertension |
| 112 | resulting in disability or increasing the disability or need for |
| 113 | medical treatment; or |
| 114 | b. Was previously compensated pursuant to this section and |
| 115 | chapter 440 for tuberculosis, heart disease, or hypertension and |
| 116 | thereafter sustains and reports a new compensable workers' |
| 117 | compensation claim under this section and chapter 440, and the |
| 118 | firefighter, law enforcement officer, correctional officer, or |
| 119 | correctional probation officer has departed in a material |
| 120 | fashion from the prescribed course of treatment of an authorized |
| 121 | physician for the preexisting workers' compensation claim and |
| 122 | the departure is demonstrated to have resulted in a significant |
| 123 | aggravation of the tuberculosis, heart disease, or hypertension |
| 124 | resulting in disability or increasing the disability or need for |
| 125 | medical treatment. |
| 126 | 2. As used in this paragraph, "prescribed course of |
| 127 | treatment" means prescribed medical courses of action and |
| 128 | prescribed medicines for the specific disease or diseases |
| 129 | claimed and as documented in the prescribing physician's medical |
| 130 | records. |
| 131 | 3. If there is a dispute as to the appropriateness of the |
| 132 | course of treatment prescribed by a physician under sub- |
| 133 | subparagraph 1.a. or sub-subparagraph 1.b. or whether a |
| 134 | departure in a material fashion from the prescribed course of |
| 135 | treatment is demonstrated to have resulted in a significant |
| 136 | aggravation of the tuberculosis, heart disease, or hypertension |
| 137 | resulting in disability or increasing the disability or need for |
| 138 | medical treatment, the firefighter, law enforcement officer, |
| 139 | correctional officer, or correctional probation officer is |
| 140 | entitled to seek an independent medical examination pursuant to |
| 141 | s. 440.13(5). |
| 142 | 4. A firefighter, law enforcement officer, correctional |
| 143 | officer, or correctional probation officer is not entitled to |
| 144 | the presumption provided in this section unless a claim for |
| 145 | benefits is made prior to or within 180 days after leaving the |
| 146 | employment of the employing agency. |
| 147 | (2) This section authorizes each governmental entity |
| 148 | specified in subsection (1) to negotiate policy contracts for |
| 149 | life and disability insurance to include accidental death |
| 150 | benefits or double indemnity coverage which shall include the |
| 151 | presumption that any condition or impairment of health of any |
| 152 | firefighter, law enforcement officer, or correctional officer |
| 153 | caused by tuberculosis, heart disease, or hypertension resulting |
| 154 | in total or partial disability or death was accidental and |
| 155 | suffered in the line of duty, unless the contrary be shown by a |
| 156 | preponderance of the competent evidence. |
| 157 | Section 2. Subsection (8) is added to section 175.061, |
| 158 | Florida Statutes, to read: |
| 159 | 175.061 Board of trustees; members; terms of office; |
| 160 | meetings; legal entity; costs; attorney's fees.-For any |
| 161 | municipality, special fire control district, chapter plan, local |
| 162 | law municipality, local law special fire control district, or |
| 163 | local law plan under this chapter: |
| 164 | (8) The board of trustees shall: |
| 165 | (a) Provide a detailed accounting report of its expenses |
| 166 | for each fiscal year to the plan sponsor and the Department of |
| 167 | Management Services and make the report available to every |
| 168 | member of the plan. The report must include, but need not be |
| 169 | limited to, all administrative expenses that, for purposes of |
| 170 | this subsection, are expenses relating to any legal counsel, |
| 171 | actuary, plan administrator, and all other consultants, and all |
| 172 | travel and other expenses paid to or on behalf of the members of |
| 173 | the board of trustees or anyone else on behalf of the plan. |
| 174 | (b) Operate under an administrative expense budget for |
| 175 | each fiscal year, provide a copy of the budget to the plan |
| 176 | sponsor, and make available a copy of the budget to plan members |
| 177 | before the beginning of the fiscal year. The administrative |
| 178 | expense budget must regulate the administrative expenses of the |
| 179 | board of trustees. If the board of trustees amends the |
| 180 | administrative expense budget, the board must provide a copy of |
| 181 | the amended budget to the plan sponsor and make available a copy |
| 182 | of the amended budget to plan members before the amendment takes |
| 183 | effect. |
| 184 | Section 3. Subsection (7) of section 175.071, Florida |
| 185 | Statutes, is amended to read: |
| 186 | 175.071 General powers and duties of board of trustees.- |
| 187 | For any municipality, special fire control district, chapter |
| 188 | plan, local law municipality, local law special fire control |
| 189 | district, or local law plan under this chapter: |
| 190 | (7) To assist the board in meeting its responsibilities |
| 191 | under this chapter, the board, if it so elects, and subject to |
| 192 | s. 175.061(8), may: |
| 193 | (a) Employ independent legal counsel at the pension fund's |
| 194 | expense. |
| 195 | (b) Employ an independent actuary, as defined in s. |
| 196 | 175.032(7), at the pension fund's expense. |
| 197 | (c) Employ such independent professional, technical, or |
| 198 | other advisers as it deems necessary at the pension fund's |
| 199 | expense. |
| 200 |
|
| 201 | If the board chooses to use the municipality's or special |
| 202 | district's legal counsel or actuary, or chooses to use any of |
| 203 | the municipality's or special district's other professional, |
| 204 | technical, or other advisers, it must do so only under terms and |
| 205 | conditions acceptable to the board. |
| 206 | Section 4. Subsection (4) is added to section 175.101, |
| 207 | Florida Statutes, to read: |
| 208 | 175.101 State excise tax on property insurance premiums |
| 209 | authorized; procedure.-For any municipality, special fire |
| 210 | control district, chapter plan, local law municipality, local |
| 211 | law special fire control district, or local law plan under this |
| 212 | chapter: |
| 213 | (4) If a municipality or special fire control district |
| 214 | revokes its participation under this chapter in accordance with |
| 215 | s. 175.411, the excise tax authorized by this section shall not |
| 216 | continue to be imposed on property insurance policies covering |
| 217 | property situated within the municipality or special fire |
| 218 | control district. |
| 219 |
|
| 220 | This section also applies to any municipality consisting of a |
| 221 | single consolidated government which is made up of a former |
| 222 | county and one or more municipalities, consolidated pursuant to |
| 223 | the authority in s. 3 or s. 6(e), Art. VIII of the State |
| 224 | Constitution, and to property insurance policies covering |
| 225 | property within the boundaries of the consolidated government, |
| 226 | regardless of whether the properties are located within one or |
| 227 | more separately incorporated areas within the consolidated |
| 228 | government, provided the properties are being provided fire |
| 229 | protection services by the consolidated government. This section |
| 230 | also applies to any municipality, as provided in s. |
| 231 | 175.041(3)(c), which has entered into an interlocal agreement to |
| 232 | receive fire protection services from another municipality |
| 233 | participating under this chapter. The excise tax may be levied |
| 234 | on all premiums collected on property insurance policies |
| 235 | covering property located within the corporate limits of the |
| 236 | municipality receiving the fire protection services, but will be |
| 237 | available for distribution to the municipality providing the |
| 238 | fire protection services. |
| 239 | Section 5. Section 175.231, Florida Statutes, is amended |
| 240 | to read: |
| 241 | 175.231 Diseases of firefighters suffered in line of duty; |
| 242 | presumption.-For any municipality, special fire control |
| 243 | district, chapter plan, local law municipality, local law |
| 244 | special fire control district, or local law plan under this |
| 245 | chapter, any condition or impairment of health of a firefighter, |
| 246 | who has been employed by the current employer for at least 5 |
| 247 | years and who is less than 37 years of age, caused by |
| 248 | tuberculosis, hypertension, or heart disease resulting in total |
| 249 | or partial disability or death shall be presumed to have been |
| 250 | accidental and suffered in the line of duty unless the contrary |
| 251 | is shown by a preponderance of the competent evidence, provided |
| 252 | that such firefighter shall have successfully passed a physical |
| 253 | examination before entering into such service, which examination |
| 254 | failed to reveal any evidence of such condition. Risk factors |
| 255 | and epidemiological data relating to nonwork-related conditions |
| 256 | unique to an individual, such as blood cholesterol, body mass |
| 257 | index, history of tobacco and alcohol use, and other medical |
| 258 | conditions or behaviors that are associated with the disease or |
| 259 | condition subject to the presumption, are appropriate for |
| 260 | consideration in denying or overcoming the presumption. This |
| 261 | section shall be applicable to all firefighters only with |
| 262 | reference to pension and retirement benefits under this chapter. |
| 263 | Section 6. Section 175.351, Florida Statutes, is amended |
| 264 | to read: |
| 265 | 175.351 Municipalities and special fire control districts |
| 266 | having their own pension plans for firefighters.-For any |
| 267 | municipality, special fire control district, local law |
| 268 | municipality, local law special fire control district, or local |
| 269 | law plan under this chapter, in order for municipalities and |
| 270 | special fire control districts with their own pension plans for |
| 271 | firefighters, or for firefighters and police officers if |
| 272 | included, to participate in the distribution of the tax fund |
| 273 | established pursuant to s. 175.101, local law plans must meet |
| 274 | the minimum benefits and minimum standards set forth in this |
| 275 | chapter. |
| 276 | (1) Notwithstanding any other provision, retirement |
| 277 | benefits provided pursuant to this chapter and the use of the |
| 278 | income from the premium tax in s. 175.101 must be determined and |
| 279 | implemented in accordance with the collective bargaining |
| 280 | process, and where collective bargaining is not applicable, in |
| 281 | accordance with the pension plan, except as provided in |
| 282 | subsection (2). If the term of a collective bargaining agreement |
| 283 | ends without a new collective bargaining agreement in effect, |
| 284 | the retirement benefits of a plan operating pursuant to this |
| 285 | chapter shall revert to the minimum benefit provisions of this |
| 286 | chapter for the period of time from the end of the collective |
| 287 | bargaining agreement until the effective date of the subsequent |
| 288 | collective bargaining agreement, and the income from the premium |
| 289 | tax may be used for any retirement benefit provided pursuant to |
| 290 | this chapter as determined unilaterally by the municipality or |
| 291 | special fire control district. If a municipality has a pension |
| 292 | plan for firefighters, or a pension plan for firefighters and |
| 293 | police officers if included, which in the opinion of the |
| 294 | division meets the minimum benefits and minimum standards set |
| 295 | forth in this chapter, the board of trustees of the pension |
| 296 | plan, as approved by a majority of firefighters of the |
| 297 | municipality, may: |
| 298 | (a) Place the income from the premium tax in s. 175.101 in |
| 299 | such pension plan for the sole and exclusive use of its |
| 300 | firefighters, or for firefighters and police officers if |
| 301 | included, where it shall become an integral part of that pension |
| 302 | plan and shall be used to pay extra benefits to the firefighters |
| 303 | included in that pension plan; or |
| 304 | (b) Place the income from the premium tax in s. 175.101 in |
| 305 | a separate supplemental plan to pay extra benefits to |
| 306 | firefighters, or to firefighters and police officers if |
| 307 | included, participating in such separate supplemental plan. |
| 308 | (2) The premium tax provided by this chapter shall in all |
| 309 | cases be used in its entirety to provide extra benefits to |
| 310 | firefighters, or to firefighters and police officers if |
| 311 | included. For However, local law plans in effect on October 1, |
| 312 | 1998, that do not must comply with the minimum benefit |
| 313 | provisions of this chapter, as only to the extent that |
| 314 | additional premium tax revenues become available, such revenues |
| 315 | shall be used to incrementally fund the cost of such compliance |
| 316 | as provided in s. 175.162(2)(a). If a plan is in compliance with |
| 317 | such minimum benefit provisions, as subsequent additional |
| 318 | premium tax revenues become available, they must be used to |
| 319 | provide extra benefits. Local law plans created by special act |
| 320 | before May 27, 1939, are deemed to comply with this chapter. For |
| 321 | the purpose of this chapter, the term: |
| 322 | (a) "additional premium tax revenues" means revenues |
| 323 | received by a municipality or special fire control district |
| 324 | pursuant to s. 175.121 which exceed that amount received for |
| 325 | calendar year 1997. Once a plan is in compliance with the |
| 326 | minimum benefit provisions of this chapter, the provisions of |
| 327 | subsection (1) apply. |
| 328 | (b) "Extra benefits" means benefits in addition to or |
| 329 | greater than those provided to general employees of the |
| 330 | municipality and in addition to those in existence for |
| 331 | firefighters on March 12, 1999. |
| 332 | (3) A retirement plan or amendment to a retirement plan |
| 333 | may not be proposed for adoption unless the proposed plan or |
| 334 | amendment contains an actuarial estimate of the costs involved. |
| 335 | The Such proposed plan or proposed plan change may not be |
| 336 | adopted without the approval of the municipality, special fire |
| 337 | control district, or, if required where permitted, the |
| 338 | Legislature. Copies of the proposed plan or proposed plan change |
| 339 | and the actuarial impact statement of the proposed plan or |
| 340 | proposed plan change shall be furnished to the division before |
| 341 | the last public hearing thereon. Such statement must also |
| 342 | indicate whether the proposed plan or proposed plan change is in |
| 343 | compliance with s. 14, Art. X of the State Constitution and |
| 344 | those provisions of part VII of chapter 112 which are not |
| 345 | expressly provided in this chapter. Notwithstanding any other |
| 346 | provision, only those local law plans created by special act of |
| 347 | legislation before May 27, 1939, are deemed to meet the minimum |
| 348 | benefits and minimum standards only in this chapter. |
| 349 | (4) Notwithstanding any other provision, with respect to |
| 350 | any supplemental plan municipality: |
| 351 | (a) A local law plan and a supplemental plan may continue |
| 352 | to use their definition of compensation or salary in existence |
| 353 | on March 12, 1999. |
| 354 | (b) Section 175.061(1)(b) does not apply, and a local law |
| 355 | plan and a supplemental plan shall continue to be administered |
| 356 | by a board or boards of trustees numbered, constituted, and |
| 357 | selected as the board or boards were numbered, constituted, and |
| 358 | selected on December 1, 2000. |
| 359 | (c) The election set forth in paragraph (1)(b) is deemed |
| 360 | to have been made. |
| 361 | (d) The annual amount of premium tax revenues allocated to |
| 362 | the supplemental plan shall be determined through collective |
| 363 | bargaining, where applicable, and in accordance with the pension |
| 364 | plan where collective bargaining does not apply. If the term of |
| 365 | a collective bargaining agreement ends without a new collective |
| 366 | bargaining agreement in effect, the amount of premium tax |
| 367 | revenues allocated to the supplemental plan shall be determined |
| 368 | unilaterally by the municipality or special fire control |
| 369 | district for the period of time from the end of the collective |
| 370 | bargaining agreement until the effective date of the subsequent |
| 371 | collective bargaining agreement. |
| 372 | (5) The retirement plan setting forth the benefits and the |
| 373 | trust agreement, if any, covering the duties and |
| 374 | responsibilities of the trustees and the regulations of the |
| 375 | investment of funds must be in writing, and copies made |
| 376 | available to the participants and to the general public. |
| 377 | (6) A municipality or special fire control district may |
| 378 | unilaterally establish one or more new plans, or benefit levels |
| 379 | within a plan, which provide different benefit levels for plan |
| 380 | members based on the member's date of hire if the new plan or |
| 381 | benefit level provides pension benefits that, in the aggregate, |
| 382 | meet or exceed the minimum benefits set forth in this chapter, |
| 383 | as determined by the plan's or employer's actuary. A |
| 384 | municipality or special fire control district may unilaterally |
| 385 | elect to maintain an existing plan and join the Florida |
| 386 | Retirement System or establish a defined contribution retirement |
| 387 | plan for employees hired after a specified date. A municipality |
| 388 | or special fire control district choosing to operate under this |
| 389 | subsection shall use the premium tax provided under this chapter |
| 390 | for the current plan or benefit level, for any additional plan |
| 391 | or benefit level, for contributions to the Florida Retirement |
| 392 | System, or for contributions to a defined contribution |
| 393 | retirement plan. |
| 394 | Section 7. Section 175.361, Florida Statutes, is amended |
| 395 | to read: |
| 396 | 175.361 Termination of plan and distribution of fund.-For |
| 397 | any municipality, special fire control district, chapter plan, |
| 398 | local law municipality, local law special fire control district, |
| 399 | or local law plan under this chapter, the plan may be terminated |
| 400 | by the municipality or special fire control district. Upon |
| 401 | termination of the plan by the municipality or special fire |
| 402 | control district for any reason or because of a transfer, |
| 403 | merger, or consolidation of governmental units, services, or |
| 404 | functions as provided in chapter 121, or upon written notice by |
| 405 | the municipality or special fire control district to the board |
| 406 | of trustees that contributions under the plan are being |
| 407 | permanently discontinued, the rights of all employees to |
| 408 | benefits accrued to the date of such termination and the amounts |
| 409 | credited to the employees' accounts are nonforfeitable. The fund |
| 410 | shall be distributed in accordance with the following |
| 411 | procedures: |
| 412 | (1) The board of trustees, subject to prior written |
| 413 | approval of the municipality or special fire control district, |
| 414 | shall determine the date of distribution and the asset value |
| 415 | required to fund all the nonforfeitable benefits after taking |
| 416 | into account the expenses of such distribution. The board shall |
| 417 | inform the municipality or special fire control district if |
| 418 | additional assets are required, in which event the municipality |
| 419 | or special fire control district shall continue to financially |
| 420 | support the plan until all nonforfeitable benefits have been |
| 421 | funded. |
| 422 | (2) The board of trustees, subject to prior written |
| 423 | approval of the municipality or special fire control district, |
| 424 | shall determine the method of distribution of the asset value, |
| 425 | whether distribution shall be by payment in cash, by the |
| 426 | maintenance of another or substituted trust fund, by the |
| 427 | purchase of insured annuities, or otherwise, for each |
| 428 | firefighter entitled to benefits under the plan as specified in |
| 429 | subsection (3). |
| 430 | (3) The board of trustees, subject to prior written |
| 431 | approval of the municipality or special fire control district, |
| 432 | shall distribute the asset value as of the date of termination |
| 433 | in the manner set forth in this subsection, on the basis that |
| 434 | the amount required to provide any given retirement income is |
| 435 | the actuarially computed single-sum value of such retirement |
| 436 | income, except that if the method of distribution determined |
| 437 | under subsection (2) involves the purchase of an insured |
| 438 | annuity, the amount required to provide the given retirement |
| 439 | income is the single premium payable for such annuity. The |
| 440 | actuarial single-sum value may not be less than the employee's |
| 441 | accumulated contributions to the plan, with interest if provided |
| 442 | by the plan, less the value of any plan benefits previously paid |
| 443 | to the employee. |
| 444 | (4) If there is asset value remaining after the full |
| 445 | distribution specified in subsection (3), and after the payment |
| 446 | of any expenses incurred with such distribution, such excess |
| 447 | shall be returned to the municipality or special fire control |
| 448 | district, less return to the state of the state's contributions, |
| 449 | provided that, if the excess is less than the total |
| 450 | contributions made by the municipality or special fire control |
| 451 | district and the state to date of termination of the plan, such |
| 452 | excess shall be divided proportionately to the total |
| 453 | contributions made by the municipality or special fire control |
| 454 | district and the state. |
| 455 | (5) The board of trustees, subject to prior written |
| 456 | approval of the municipality or special fire control district, |
| 457 | shall distribute, in accordance with subsection (2), the amounts |
| 458 | determined under subsection (3). |
| 459 |
|
| 460 | If, after 24 months after the date the plan terminated or the |
| 461 | date the board received written notice that the contributions |
| 462 | thereunder were being permanently discontinued, the municipality |
| 463 | or special fire control district or the board of trustees of the |
| 464 | firefighters' pension trust fund affected has not complied with |
| 465 | all the provisions in this section, the Department of Management |
| 466 | Services shall effect the termination of the fund in accordance |
| 467 | with this section and in the manner having the least fiscal |
| 468 | impact on the municipality or special fire control district. |
| 469 | Section 8. Subsection (4) of section 185.02, Florida |
| 470 | Statutes, is amended to read: |
| 471 | 185.02 Definitions.-For any municipality, chapter plan, |
| 472 | local law municipality, or local law plan under this chapter, |
| 473 | the following words and phrases as used in this chapter shall |
| 474 | have the following meanings, unless a different meaning is |
| 475 | plainly required by the context: |
| 476 | (4) "Compensation" or "salary" means, for noncollectively |
| 477 | bargained service earned before July 1, 2011, or for service |
| 478 | earned under collective bargaining agreements in place before |
| 479 | July 1, 2011, the total cash remuneration including "overtime" |
| 480 | paid by the primary employer to a police officer for services |
| 481 | rendered, but not including any payments for extra duty or |
| 482 | special detail work performed on behalf of a second party |
| 483 | employer. A local law plan may limit the amount of overtime |
| 484 | payments which can be used for retirement benefit calculation |
| 485 | purposes; however, such overtime limit may not be less than 300 |
| 486 | hours per officer per calendar year. For noncollectively |
| 487 | bargained service earned on or after July 1, 2011, or for |
| 488 | service earned under collective bargaining agreements entered |
| 489 | into on or after July 1, 2011, the term has the same meaning |
| 490 | except that when calculating retirement benefits, up to 300 |
| 491 | hours per year in overtime compensation may be included as |
| 492 | specified in the plan or collective bargaining agreement, but |
| 493 | payments for accrued unused sick or annual leave may not be |
| 494 | included. |
| 495 | (a) Any retirement trust fund or plan that meets the |
| 496 | requirements of this chapter does not, solely by virtue of this |
| 497 | subsection, reduce or diminish the monthly retirement income |
| 498 | otherwise payable to each police officer covered by the |
| 499 | retirement trust fund or plan. |
| 500 | (b) The member's compensation or salary contributed as |
| 501 | employee-elective salary reductions or deferrals to any salary |
| 502 | reduction, deferred compensation, or tax-sheltered annuity |
| 503 | program authorized under the Internal Revenue Code shall be |
| 504 | deemed to be the compensation or salary the member would receive |
| 505 | if he or she were not participating in such program and shall be |
| 506 | treated as compensation for retirement purposes under this |
| 507 | chapter. |
| 508 | (c) For any person who first becomes a member in any plan |
| 509 | year beginning on or after January 1, 1996, compensation for |
| 510 | that plan year may not include any amounts in excess of the |
| 511 | Internal Revenue Code s. 401(a)(17) limitation, as amended by |
| 512 | the Omnibus Budget Reconciliation Act of 1993, which limitation |
| 513 | of $150,000 shall be adjusted as required by federal law for |
| 514 | qualified government plans and shall be further adjusted for |
| 515 | changes in the cost of living in the manner provided by Internal |
| 516 | Revenue Code s. 401(a)(17)(B). For any person who first became a |
| 517 | member before the first plan year beginning on or after January |
| 518 | 1, 1996, the limitation on compensation may not be less than the |
| 519 | maximum compensation amount that was allowed to be taken into |
| 520 | account under the plan as in effect on July 1, 1993, which |
| 521 | limitation shall be adjusted for changes in the cost of living |
| 522 | since 1989 in the manner provided by Internal Revenue Code s. |
| 523 | 401(a)(17)(1991). |
| 524 | Section 9. Subsection (8) is added to section 185.05, |
| 525 | Florida Statutes, to read: |
| 526 | 185.05 Board of trustees; members; terms of office; |
| 527 | meetings; legal entity; costs; attorney's fees.-For any |
| 528 | municipality, chapter plan, local law municipality, or local law |
| 529 | plan under this chapter: |
| 530 | (8) The board of trustees shall: |
| 531 | (a) Provide a detailed accounting report of its expenses |
| 532 | for each fiscal year to the plan sponsor and the Department of |
| 533 | Management Services and make the report available to every |
| 534 | member of the plan. The report must include, but need not be |
| 535 | limited to, all administrative expenses that, for purposes of |
| 536 | this subsection, are expenses relating to any legal counsel, |
| 537 | actuary, plan administrator, and all other consultants, and all |
| 538 | travel and other expenses paid to or on behalf of the members of |
| 539 | the board of trustees or anyone else on behalf of the plan. |
| 540 | (b) Operate under an administrative expense budget for |
| 541 | each fiscal year, provide a copy of the budget to the plan |
| 542 | sponsor, and make available a copy of the budget to plan members |
| 543 | before the beginning of the fiscal year. The administrative |
| 544 | expense budget must regulate the administrative expenses of the |
| 545 | board of trustees. If the board of trustees amends the |
| 546 | administrative expense budget, the board must provide a copy of |
| 547 | the amended budget to the plan sponsor and make available a copy |
| 548 | of the amended budget to plan members before the amendment takes |
| 549 | effect. |
| 550 | Section 10. Subsection (6) of section 185.06, Florida |
| 551 | Statutes, is amended to read: |
| 552 | 185.06 General powers and duties of board of trustees.-For |
| 553 | any municipality, chapter plan, local law municipality, or local |
| 554 | law plan under this chapter: |
| 555 | (6) To assist the board in meeting its responsibilities |
| 556 | under this chapter, the board, if it so elects, and subject to |
| 557 | s. 185.05(8), may: |
| 558 | (a) Employ independent legal counsel at the pension fund's |
| 559 | expense. |
| 560 | (b) Employ an independent actuary, as defined in s. |
| 561 | 185.02(8), at the pension fund's expense. |
| 562 | (c) Employ such independent professional, technical, or |
| 563 | other advisers as it deems necessary at the pension fund's |
| 564 | expense. |
| 565 |
|
| 566 | If the board chooses to use the municipality's or special |
| 567 | district's legal counsel or actuary, or chooses to use any of |
| 568 | the municipality's other professional, technical, or other |
| 569 | advisers, it must do so only under terms and conditions |
| 570 | acceptable to the board. |
| 571 | Section 11. Subsection (4) is added to section 185.08, |
| 572 | Florida Statutes, to read: |
| 573 | 185.08 State excise tax on casualty insurance premiums |
| 574 | authorized; procedure.-For any municipality, chapter plan, local |
| 575 | law municipality, or local law plan under this chapter: |
| 576 | (4) If a municipality revokes its participation under this |
| 577 | chapter in accordance with s. 185.60, the excise tax authorized |
| 578 | by this section shall not continue to be imposed on casualty |
| 579 | insurance policies covering property situated within the |
| 580 | municipality. |
| 581 | Section 12. Section 185.34, Florida Statutes, is amended |
| 582 | to read: |
| 583 | 185.34 Disability in line of duty.-For any municipality, |
| 584 | chapter plan, local law municipality, or local law plan under |
| 585 | this chapter, any condition or impairment of health of any and |
| 586 | all police officer officers employed in the state, who has been |
| 587 | employed by the current employer for at least 5 years and who is |
| 588 | less than 37 years of age, caused by tuberculosis, hypertension, |
| 589 | heart disease, or hardening of the arteries, resulting in total |
| 590 | or partial disability or death, shall be presumed to be |
| 591 | accidental and suffered in line of duty unless the contrary be |
| 592 | shown by a preponderance of the competent evidence. Any |
| 593 | condition or impairment of health caused directly or proximately |
| 594 | by exposure, which exposure occurred in the active performance |
| 595 | of duty at some definite time or place without willful |
| 596 | negligence on the part of the police officer, resulting in total |
| 597 | or partial disability, shall be presumed to be accidental and |
| 598 | suffered in the line of duty, provided that such police officer |
| 599 | shall have successfully passed a physical examination upon |
| 600 | entering such service, which physical examination including |
| 601 | electrocardiogram failed to reveal any evidence of such |
| 602 | condition, and, further, that such presumption shall not apply |
| 603 | to benefits payable under or granted in a policy of life |
| 604 | insurance or disability insurance. Risk factors and |
| 605 | epidemiological data relating to nonwork-related conditions |
| 606 | unique to an individual, such as blood cholesterol, body mass |
| 607 | index, history of tobacco and alcohol use, and other medical |
| 608 | conditions or behaviors that are associated with the disease or |
| 609 | condition subject to the presumption, are appropriate for |
| 610 | consideration in denying or overcoming the presumption. This |
| 611 | section shall be applicable to all police officers only with |
| 612 | reference to pension and retirement benefits under this chapter. |
| 613 | Section 13. Section 185.35, Florida Statutes, is amended |
| 614 | to read: |
| 615 | 185.35 Municipalities having their own pension plans for |
| 616 | police officers.-For any municipality, chapter plan, local law |
| 617 | municipality, or local law plan under this chapter, in order for |
| 618 | municipalities with their own pension plans for police officers, |
| 619 | or for police officers and firefighters if included, to |
| 620 | participate in the distribution of the tax fund established |
| 621 | pursuant to s. 185.08, local law plans must meet the minimum |
| 622 | benefits and minimum standards set forth in this chapter.: |
| 623 | (1) Notwithstanding any other provision, retirement |
| 624 | benefits provided pursuant to this chapter and the use of the |
| 625 | income from the premium tax in s. 185.08 must be determined and |
| 626 | implemented in accordance with the collective bargaining |
| 627 | process, and where collective bargaining is not applicable, in |
| 628 | accordance with the pension plan, except as provided in |
| 629 | subsection (2). If the term of a collective bargaining agreement |
| 630 | ends without a new collective bargaining agreement in effect, |
| 631 | the retirement benefits of a plan operating pursuant to this |
| 632 | chapter shall revert to the minimum benefit provisions of this |
| 633 | chapter for the period of time from the end of the collective |
| 634 | bargaining agreement until the effective date of the subsequent |
| 635 | collective bargaining agreement, and the income from the premium |
| 636 | tax may be used for any retirement benefit provided pursuant to |
| 637 | this chapter as determined unilaterally by the municipality. If |
| 638 | a municipality has a pension plan for police officers, or for |
| 639 | police officers and firefighters if included, which, in the |
| 640 | opinion of the division, meets the minimum benefits and minimum |
| 641 | standards set forth in this chapter, the board of trustees of |
| 642 | the pension plan, as approved by a majority of police officers |
| 643 | of the municipality, may: |
| 644 | (a) Place the income from the premium tax in s. 185.08 in |
| 645 | such pension plan for the sole and exclusive use of its police |
| 646 | officers, or its police officers and firefighters if included, |
| 647 | where it shall become an integral part of that pension plan and |
| 648 | shall be used to pay extra benefits to the police officers |
| 649 | included in that pension plan; or |
| 650 | (b) May place the income from the premium tax in s. 185.08 |
| 651 | in a separate supplemental plan to pay extra benefits to the |
| 652 | police officers, or police officers and firefighters if |
| 653 | included, participating in such separate supplemental plan. |
| 654 | (2) The premium tax provided by this chapter shall in all |
| 655 | cases be used in its entirety to provide extra benefits to |
| 656 | police officers, or to police officers and firefighters if |
| 657 | included. For However, local law plans in effect on October 1, |
| 658 | 1998, that do not must comply with the minimum benefit |
| 659 | provisions of this chapter, as only to the extent that |
| 660 | additional premium tax revenues become available, such revenues |
| 661 | shall be used to incrementally fund the cost of such compliance |
| 662 | as provided in s. 185.16(2). If a plan is in compliance with |
| 663 | such minimum benefit provisions, as subsequent additional tax |
| 664 | revenues become available, they shall be used to provide extra |
| 665 | benefits. Local law plans created by special act before May 27, |
| 666 | 1939, shall be deemed to comply with this chapter. For the |
| 667 | purpose of this chapter, the term: |
| 668 | (a) "additional premium tax revenues" means revenues |
| 669 | received by a municipality pursuant to s. 185.10 which exceed |
| 670 | the amount received for calendar year 1997. Once a plan is in |
| 671 | compliance with the minimum benefit provisions of this chapter, |
| 672 | the provisions of subsection (1) apply. |
| 673 | (b) "Extra benefits" means benefits in addition to or |
| 674 | greater than those provided to general employees of the |
| 675 | municipality and in addition to those in existence for police |
| 676 | officers on March 12, 1999. |
| 677 | (3) A retirement plan or amendment to a retirement plan |
| 678 | may not be proposed for adoption unless the proposed plan or |
| 679 | amendment contains an actuarial estimate of the costs involved. |
| 680 | The Such proposed plan or proposed plan change may not be |
| 681 | adopted without the approval of the municipality or, if required |
| 682 | where permitted, the Legislature. Copies of the proposed plan or |
| 683 | proposed plan change and the actuarial impact statement of the |
| 684 | proposed plan or proposed plan change shall be furnished to the |
| 685 | division before the last public hearing thereon. Such statement |
| 686 | must also indicate whether the proposed plan or proposed plan |
| 687 | change is in compliance with s. 14, Art. X of the State |
| 688 | Constitution and those provisions of part VII of chapter 112 |
| 689 | which are not expressly provided in this chapter. |
| 690 | Notwithstanding any other provision, only those local law plans |
| 691 | created by special act of legislation before May 27, 1939, are |
| 692 | deemed to meet the minimum benefits and minimum standards only |
| 693 | in this chapter. |
| 694 | (4) Notwithstanding any other provision, with respect to |
| 695 | any supplemental plan municipality: |
| 696 | (a) Section 185.02(4)(a) does not apply, and A local law |
| 697 | plan and a supplemental plan may continue to use their |
| 698 | definition of compensation or salary in existence on March 12, |
| 699 | 1999. |
| 700 | (b) Section 185.05(1)(b) does not apply, and a local law |
| 701 | plan and a supplemental plan must continue to be administered by |
| 702 | a board or boards of trustees numbered, constituted, and |
| 703 | selected as the board or boards were numbered, constituted, and |
| 704 | selected on December 1, 2000. |
| 705 | (c) The election set forth in paragraph (1)(b) is deemed |
| 706 | to have been made. |
| 707 | (d) The annual amount of premium tax revenues allocated to |
| 708 | the supplemental plan shall be determined through collective |
| 709 | bargaining, where applicable, and in accordance with the pension |
| 710 | plan where collective bargaining does not apply. If the term of |
| 711 | a collective bargaining agreement ends without a new collective |
| 712 | bargaining agreement in effect, the amount of premium tax |
| 713 | revenues allocated to the supplemental plan shall be determined |
| 714 | unilaterally by the municipality for the period of time from the |
| 715 | end of the collective bargaining agreement until the effective |
| 716 | date of the subsequent collective bargaining agreement. |
| 717 | (5) The retirement plan setting forth the benefits and the |
| 718 | trust agreement, if any, covering the duties and |
| 719 | responsibilities of the trustees and the regulations of the |
| 720 | investment of funds must be in writing and copies made available |
| 721 | to the participants and to the general public. |
| 722 | (6) A municipality may unilaterally establish one or more |
| 723 | new plans, or benefit levels within a plan, which provide |
| 724 | different benefit levels for plan members based on the member's |
| 725 | date of hire if the new plan or benefit level provides pension |
| 726 | benefits that, in the aggregate, meet or exceed the minimum |
| 727 | benefits set forth in this chapter, as determined by the plan's |
| 728 | or employer's actuary. A municipality may unilaterally elect to |
| 729 | maintain an existing plan and join the Florida Retirement System |
| 730 | or establish a defined contribution retirement plan for |
| 731 | employees hired after a specified date. A municipality choosing |
| 732 | to operate under this subsection shall use the premium tax |
| 733 | provided under this chapter for the current plan or benefit |
| 734 | level, for any additional plan or benefit level, for |
| 735 | contributions to the Florida Retirement System, or for |
| 736 | contributions to a defined contribution retirement plan. |
| 737 | Section 14. Section 185.37, Florida Statutes, is amended |
| 738 | to read: |
| 739 | 185.37 Termination of plan and distribution of fund.-For |
| 740 | any municipality, chapter plan, local law municipality, or local |
| 741 | law plan under this chapter, the plan may be terminated by the |
| 742 | municipality. Upon termination of the plan by the municipality |
| 743 | for any reason, or because of a transfer, merger, or |
| 744 | consolidation of governmental units, services, or functions as |
| 745 | provided in chapter 121, or upon written notice to the board of |
| 746 | trustees by the municipality that contributions under the plan |
| 747 | are being permanently discontinued, the rights of all employees |
| 748 | to benefits accrued to the date of such termination or |
| 749 | discontinuance and the amounts credited to the employees' |
| 750 | accounts are nonforfeitable. The fund shall be distributed in |
| 751 | accordance with the following procedures: |
| 752 | (1) The board of trustees, subject to prior written |
| 753 | approval of the municipality, shall determine the date of |
| 754 | distribution and the asset value required to fund all the |
| 755 | nonforfeitable benefits, after taking into account the expenses |
| 756 | of such distribution. The board shall inform the municipality if |
| 757 | additional assets are required, in which event the municipality |
| 758 | shall continue to financially support the plan until all |
| 759 | nonforfeitable benefits have been funded. |
| 760 | (2) The board of trustees, subject to prior written |
| 761 | approval of the municipality, shall determine the method of |
| 762 | distribution of the asset value, whether distribution shall be |
| 763 | by payment in cash, by the maintenance of another or substituted |
| 764 | trust fund, by the purchase of insured annuities, or otherwise, |
| 765 | for each police officer entitled to benefits under the plan, as |
| 766 | specified in subsection (3). |
| 767 | (3) The board of trustees, subject to prior written |
| 768 | approval of the municipality, shall distribute the asset value |
| 769 | as of the date of termination in the manner set forth in this |
| 770 | subsection, on the basis that the amount required to provide any |
| 771 | given retirement income is the actuarially computed single-sum |
| 772 | value of such retirement income, except that if the method of |
| 773 | distribution determined under subsection (2) involves the |
| 774 | purchase of an insured annuity, the amount required to provide |
| 775 | the given retirement income is the single premium payable for |
| 776 | such annuity. The actuarial single-sum value may not be less |
| 777 | than the employee's accumulated contributions to the plan, with |
| 778 | interest if provided by the plan, less the value of any plan |
| 779 | benefits previously paid to the employee. |
| 780 | (4) If there is asset value remaining after the full |
| 781 | distribution specified in subsection (3), and after payment of |
| 782 | any expenses incurred with such distribution, such excess shall |
| 783 | be returned to the municipality, less return to the state of the |
| 784 | state's contributions, provided that, if the excess is less than |
| 785 | the total contributions made by the municipality and the state |
| 786 | to date of termination of the plan, such excess shall be divided |
| 787 | proportionately to the total contributions made by the |
| 788 | municipality and the state. |
| 789 | (5) The board of trustees, subject to prior written |
| 790 | approval of the municipality, shall distribute, in accordance |
| 791 | with the manner of distribution determined under subsection (2), |
| 792 | the amounts determined under subsection (3). |
| 793 |
|
| 794 | If, after 24 months after the date the plan terminated or the |
| 795 | date the board received written notice that the contributions |
| 796 | thereunder were being permanently discontinued, the municipality |
| 797 | or the board of trustees of the municipal police officers' |
| 798 | retirement trust fund affected has not complied with all the |
| 799 | provisions in this section, the Department of Management |
| 800 | Services shall effect the termination of the fund in accordance |
| 801 | with this section and in the manner having the least fiscal |
| 802 | impact on the municipality. |
| 803 | Section 15. The Legislature finds that a proper and |
| 804 | legitimate state purpose is served when employees and retirees |
| 805 | of the state and its political subdivisions, and the dependents, |
| 806 | survivors, and beneficiaries of such employees and retirees are |
| 807 | extended the basic protections afforded by governmental |
| 808 | retirement systems that provide fair and adequate benefits and |
| 809 | that are managed, administered, and funded in an actuarially |
| 810 | sound manner as required by s. 14, Art. X of the State |
| 811 | Constitution and part VII of chapter 112, Florida Statutes. |
| 812 | Therefore, the Legislature determines and declares that this act |
| 813 | fulfills an important state interest. |
| 814 | Section 16. This act shall take effect July 1, 2012. |